Missouri Revised Statutes
Chapter 30
State Treasurer
←30.255
Section 30.260.1
30.270→
August 28, 2015
Investment policy required--time and demand deposits--investments--interest rates.
30.260. 1. The state treasurer shall prepare, maintain and adhere to
a written investment policy which shall include an asset allocation plan
which limits the total amount of state moneys which may be invested in any
particular investment authorized by Section 15, Article IV of the Missouri
Constitution. Such asset allocation plan shall also set diversification
limits, as applicable, which shall include a restriction limiting the total
amount of time deposits of state moneys, not including linked deposits,
placed with any one single banking institution to be no greater than ten
percent of all time deposits of state moneys. The state treasurer shall
present a copy of such policy to the governor, commissioner of
administration, state auditor and general assembly at the commencement of
each regular session of the general assembly or at any time the written
investment policy is amended.
2. The state treasurer shall determine by the exercise of the
treasurer's best judgment the amount of state moneys that are not needed
for current operating expenses of the state government and shall keep on
demand deposit in banking institutions in this state selected by the
treasurer and approved by the governor and state auditor the amount of
state moneys which the treasurer has so determined are needed for current
operating expenses of the state government and disburse the same as
authorized by law.
3. Within the parameters of the state treasurer's written investment
policy, the state treasurer shall place the state moneys which the
treasurer has determined are not needed for current operations of the state
government on time deposit drawing interest in banking institutions in this
state selected by the treasurer and approved by the governor and the state
auditor, or place them outright or, if applicable, by repurchase agreement
in obligations described in Section 15, Article IV, Constitution of
Missouri, as the treasurer in the exercise of the treasurer's best judgment
determines to be in the best overall interest of the people of the state of
Missouri, giving due consideration to:
(1) The preservation of such state moneys;
(2) The benefits to the economy and welfare of the people of Missouri
when such state money is invested in banking institutions in this state
that, in turn, provide additional loans and investments in the Missouri
economy and generate state taxes from such initial investments and the
loans and investments created by the banking institutions, compared to the
removal or withholding from banking institutions in the state of all or
some such state moneys and investing same in obligations authorized in
Section 15, Article IV of the Missouri Constitution;
(3) The liquidity needs of the state;
(4) The aggregate return in earnings and taxes on the deposits and
the investment to be derived therefrom; and
(5) All other factors which to the treasurer as a prudent state
treasurer seem to be relevant to the general public welfare in the light of
the circumstances at the time prevailing.
The state treasurer may also place state moneys which are determined not
needed for current operations of the state government in linked deposits as
provided in sections 30.750 to 30.765.
4. Except for state moneys deposited in linked deposits as provided
in sections 30.750 to 30.860, the rate of interest payable by all banking
institutions on time deposits of state moneys shall be set under
subdivisions (1) to (5) of this subsection and subsections 6 and 7 of this
section. The rate shall never exceed the maximum rate of interest which by
federal law or regulation a bank which is a member of the Federal Reserve
System may from time to time pay on a time deposit of the same size and
maturity. The rate of interest payable by all banking institutions on time
deposits of state moneys is as follows:
(1) Beginning January 1, 2010, the rate of interest payable by a
banking institution on up to seven million dollars of time deposits of
state moneys shall be the same as the average rate paid during the week
next preceding the week in which the deposit was made for United States of
America treasury securities maturing and becoming payable closest to the
time of termination of the deposit, as determined by the state treasurer,
adjusted to the nearest one-tenth of a percent. In the case of a banking
institution that holds more than seven million dollars of time deposits of
state moneys, the rate of interest payable on deposits in excess of seven
million dollars of time deposits of state moneys shall be set at the market
rate as determined in subsection 6 of this section;
(2) Beginning January 1, 2011, the rate of interest payable by a
banking institution on up to five million dollars of time deposits of state
moneys shall be the same as the average rate paid during the week next
preceding the week in which the deposit was made for United States of
America treasury securities maturing and becoming payable closest to the
time of termination of the deposit, as determined by the state treasurer,
adjusted to the nearest one-tenth of a percent. In the case of a banking
institution that holds more than five million dollars of time deposits of
state moneys, the rate of interest payable on deposits in excess of five
million dollars of time deposits of state moneys shall be set at the market
rate as determined in subsection 6 of this section;
(3) Beginning January 1, 2012, the rate of interest payable by a
banking institution on up to three million dollars of time deposits of
state moneys shall be the same as the average rate paid during the week
next preceding the week in which the deposit was made for United States of
America treasury securities maturing and becoming payable closest to the
time of termination of the deposit, as determined by the state treasurer,
adjusted to the nearest one-tenth of a percent. In the case of a banking
institution that holds more than three million dollars of time deposits of
state moneys, the rate of interest payable on deposits in excess of three
million dollars of time deposits of state moneys shall be set at the market
rate as determined in subsection 6 of this section;
(4) Beginning January 1, 2013, the rate of interest payable by a
banking institution on up to one million dollars of time deposits of state
moneys shall be the same as the average rate paid during the week next
preceding the week in which the deposit was made for United States of
America treasury securities maturing and becoming payable closest to the
time of termination of the deposit, as determined by the state treasurer,
adjusted to the nearest one-tenth of a percent. In the case of a banking
institution that holds more than one million dollars of time deposits of
state moneys, the rate of interest payable on deposits in excess of one
million dollars of time deposits of state moneys shall be set at the market
rate as determined in subsection 6 of this section;
(5) Beginning January 1, 2014, the rate of interest payable by a
banking institution on all time deposits of state moneys shall be set at
the market rate as determined in subsection 6 of this section.
5. Notwithstanding subdivisions (1) to (5) of subsection 4 of this
section, for any new time deposits of state moneys placed after January 1,
2010, with a term longer than eighteen months, the rate of interest payable
by a banking institution shall be set at the market rate as determined in
subsection 6 of this section.
6. Market rate shall be determined no less frequently than once a
month by the director of investments in the office of state treasurer. The
process for determining a market rate shall include due consideration of
prevailing rates offered for certificates of deposit by well-capitalized
Missouri financial institutions, the advance rate established by the
Federal Home Loan Bank of Des Moines for member institutions and the costs
of collateralization, as well as an evaluation of the credit risk
associated with other authorized securities under Section 15, Article IV,
of the Missouri Constitution. Banking institutions may also offer a higher
rate than the market rate for any time deposit placed with the state
treasurer in excess of the total amount of state moneys set at the United
States of America treasury securities maturing and becoming payable closest
to the time of termination of the deposit indicated in subdivisions (1) to
(5) of subsection 4 of this section.
7. Within the parameters of the state treasurer's written investment
policy, the state treasurer may subscribe for or purchase outright or by
repurchase agreement investments of the character described in subsection 3
of this section which the treasurer, in the exercise of the treasurer's
best judgment, believes to be the best for investment of state moneys at
the time and in payment therefor may withdraw moneys from any bank account,
demand or time, maintained by the treasurer without having any supporting
warrant of the commissioner of administration. The state treasurer may bid
on subscriptions for such obligations in accordance with the treasurer's
best judgment. The state treasurer shall provide for the safekeeping of
all such obligations so acquired in the same manner that securities pledged
to secure the repayment of state moneys deposited in banking institutions
are kept by the treasurer pursuant to law. The state treasurer may hold
any such obligation so acquired by the treasurer until its maturity or
prior thereto may sell the same outright or by reverse repurchase agreement
provided the state's security interest in the underlying security is
perfected or temporarily exchange such obligation for cash or other
authorized securities of at least equal market value with no maturity more
than one year beyond the maturity of any of the traded obligations, for a
negotiated fee as the treasurer, in the exercise of the treasurer's best
judgment, deems necessary or advisable for the best interest of the people
of the state of Missouri in the light of the circumstances at the time
prevailing. The state treasurer may pay all costs and expenses reasonably
incurred by the treasurer in connection with the subscription, purchase,
sale, collection, safekeeping or delivery of all such obligations at any
time acquired by the treasurer.
8. As used in this chapter, except as more particularly specified in
section 30.270, obligations of the United States shall include securities
of the United States Treasury, and United States agencies or
instrumentalities as described in Section 15, Article IV, Constitution of
Missouri. The word "temporarily" as used in this section shall mean no
more than six months.
(RSMo 1939 § 13084, A.L. 1945 p. 1977 § 36, A.L. 1957 p. 484, A.L.
1973 S.B. 89, A.L. 1983 H.B. 389, A.L. 1986 H.B. 1107, A.L. 1988
H.B. 1260, A.L. 1997 S.B. 449, A.L. 2002 S.B. 895, A.L. 2005 S.B.
270, A.L. 2009 H.B. 883, A.L. 2011 H.B. 109)
Prior revisions: 1929 § 11467; 1919 § 13377; 1909 § 11878
CROSS REFERENCES:
Bi-state development agency, bonds of, investment in authorized,
70.377
Savings accounts in insured savings and loan association, investment
in authorized, 369.194
2009
2005
2002
1997
2009
30.260. 1. The state treasurer shall prepare, maintain and adhere to a
written investment policy which shall include an asset allocation plan which
limits the total amount of state moneys which may be invested in any
particular investment authorized by section 15, article IV of the Missouri
Constitution. Such asset allocation plan shall also set diversification
limits, as applicable, which shall include a restriction limiting the total
amount of time deposits of state moneys, not including linked deposits,
placed with any one single banking institution to be no greater than ten
percent of all time deposits of state moneys. The state treasurer shall
present a copy of such policy to the governor, commissioner of
administration, state auditor and general assembly at the commencement of
each regular session of the general assembly or at any time the written
investment policy is amended.
2. The state treasurer shall determine by the exercise of the treasurer's
best judgment the amount of state moneys that are not needed for current
operating expenses of the state government and shall keep on demand deposit
in banking institutions in this state selected by the treasurer and approved
by the governor and state auditor the amount of state moneys which the
treasurer has so determined are needed for current operating expenses of the
state government and disburse the same as authorized by law.
3. Within the parameters of the state treasurer's written investment
policy, the state treasurer shall place the state moneys which the treasurer
has determined are not needed for current operations of the state government
on time deposit drawing interest in banking institutions in this state
selected by the treasurer and approved by the governor and the state auditor,
or place them outright or, if applicable, by repurchase agreement in
obligations described in section 15, article IV, Constitution of Missouri, as
the treasurer in the exercise of the treasurer's best judgment determines to
be in the best overall interest of the people of the state of Missouri, giving
due consideration to:
(1) The preservation of such state moneys;
(2) The benefits to the economy and welfare of the people of Missouri
when such state money is invested in banking institutions in this state that,
in turn, provide additional loans and investments in the Missouri economy and
generate state taxes from such initial investments and the loans and
investments created by the banking institutions, compared to the removal or
withholding from banking institutions in the state of all or some such state
moneys and investing same in obligations authorized in section 15, article IV
of the Missouri Constitution;
(3) The liquidity needs of the state;
(4) The aggregate return in earnings and taxes on the deposits and the
investment to be derived therefrom; and
(5) All other factors which to the treasurer as a prudent state
treasurer seem to be relevant to the general public welfare in the light of
the circumstances at the time prevailing. The state treasurer may also place
state moneys which are determined not needed for current operations of the
state government in linked deposits as provided in sections 30.750 to 30.767.
4. Except for state moneys deposited in linked deposits as provided in
sections 30.750 to 30.860, the rate of interest payable by all banking
institutions on time deposits of state moneys shall be set under subdivisions
(1) to (5) of this subsection and subsections 6 and 7 of this section. The
rate shall never exceed the maximum rate of interest which by federal law or
regulation a bank which is a member of the Federal Reserve System may from
time to time pay on a time deposit of the same size and maturity. The rate
of interest payable by all banking institutions on time deposits of state
moneys is as follows:
(1) Beginning January 1, 2010, the rate of interest payable by a banking
institution on up to seven million dollars of time deposits of state moneys
shall be the same as the average rate paid during the week next preceding the
week in which the deposit was made for United States of America treasury
securities maturing and becoming payable closest to the time of termination
of the deposit, as determined by the state treasurer, adjusted to the nearest
one-tenth of a percent. In the case of a banking institution that holds more
than seven million dollars of time deposits of state moneys, the rate of
interest payable on deposits in excess of seven million dollars of time
deposits of state moneys shall be set at the market rate as determined in
subsection 6 of this section;
(2) Beginning January 1, 2011, the rate of interest payable by a banking
institution on up to five million dollars of time deposits of state moneys
shall be the same as the average rate paid during the week next preceding the
week in which the deposit was made for United States of America treasury
securities maturing and becoming payable closest to the time of termination
of the deposit, as determined by the state treasurer, adjusted to the nearest
one-tenth of a percent. In the case of a banking institution that holds more
than five million dollars of time deposits of state moneys, the rate of
interest payable on deposits in excess of five million dollars of time
deposits of state moneys shall be set at the market rate as determined in
subsection 6 of this section;
(3) Beginning January 1, 2012, the rate of interest payable by a banking
institution on up to three million dollars of time deposits of state moneys
shall be the same as the average rate paid during the week next preceding the
week in which the deposit was made for United States of America treasury
securities maturing and becoming payable closest to the time of termination
of the deposit, as determined by the state treasurer, adjusted to the nearest
one-tenth of a percent. In the case of a banking institution that holds more
than three million dollars of time deposits of state moneys, the rate of
interest payable on deposits in excess of three million dollars of time
deposits of state moneys shall be set at the market rate as determined in
subsection 6 of this section;
(4) Beginning January 1, 2013, the rate of interest payable by a banking
institution on up to one million dollars of time deposits of state moneys
shall be the same as the average rate paid during the week next preceding the
week in which the deposit was made for United States of America treasury
securities maturing and becoming payable closest to the time of termination
of the deposit, as determined by the state treasurer, adjusted to the nearest
one-tenth of a percent. In the case of a banking institution that holds more
than one million dollars of time deposits of state moneys, the rate of
interest payable on deposits in excess of one million dollars of time
deposits of state moneys shall be set at the market rate as determined in
subsection 6 of this section;
(5) Beginning January 1, 2014, the rate of interest payable by a banking
institution on all time deposits of state moneys shall be set at the market
rate as determined in subsection 6 of this section.
5. Notwithstanding subdivisions (1) to (5) of subsection 4 of this
section, for any new time deposits of state moneys placed after January 1,
2010, with a term longer than eighteen months, the rate of interest payable
by a banking institution shall be set at the market rate as determined in
subsection 6 of this section.
6. Market rate shall be determined no less frequently than once a month
by the director of investments in the office of state treasurer. The process
for determining a market rate shall include due consideration of prevailing
rates offered for certificates of deposit by well-capitalized Missouri
financial institutions, the advance rate established by the Federal Home Loan
Bank of Des Moines for member institutions and the costs of
collateralization, as well as an evaluation of the credit risk associated
with other authorized securities under section 15, article IV, of the Missouri
Constitution. Banking institutions may also offer a higher rate than the
market rate for any time deposit placed with the state treasurer in excess of
the total amount of state moneys set at the United States of America treasury
securities maturing and becoming payable closest to the time of termination
of the deposit indicated in subdivisions (1) to (5) of subsection 4 of this
section.
7. Within the parameters of the state treasurer's written investment
policy, the state treasurer may subscribe for or purchase outright or by
repurchase agreement investments of the character described in subsection 3
of this section which the treasurer, in the exercise of the treasurer's best
judgment, believes to be the best for investment of state moneys at the time
and in payment therefor may withdraw moneys from any bank account, demand or
time, maintained by the treasurer without having any supporting warrant of the
commissioner of administration. The state treasurer may bid on subscriptions
for such obligations in accordance with the treasurer's best judgment. The
state treasurer shall provide for the safekeeping of all such obligations so
acquired in the same manner that securities pledged to secure the repayment
of state moneys deposited in banking institutions are kept by the treasurer
pursuant to law. The state treasurer may hold any such obligation so acquired
by the treasurer until its maturity or prior thereto may sell the same
outright or by reverse repurchase agreement provided the state's security
interest in the underlying security is perfected or temporarily exchange such
obligation for cash or other authorized securities of at least equal market
value with no maturity more than one year beyond the maturity of any of the
traded obligations, for a negotiated fee as the treasurer, in the exercise of
the treasurer's best judgment, deems necessary or advisable for the best
interest of the people of the state of Missouri in the light of the
circumstances at the time prevailing. The state treasurer may pay all costs
and expenses reasonably incurred by the treasurer in connection with the
subscription, purchase, sale, collection, safekeeping or delivery of all such
obligations at any time acquired by the treasurer.
8. As used in this chapter, except as more particularly specified in
section 30.270, obligations of the United States shall include securities of
the United States Treasury, and United States agencies or instrumentalities
as described in section 15, article IV, Constitution of Missouri. The word
"temporarily" as used in this section shall mean no more than six months.
2005
30.260. 1. The state treasurer shall prepare, maintain and adhere to
a written investment policy which shall include an asset allocation plan
which limits the total amount of state moneys which may be invested in any
particular investment authorized by section 15, article IV of the Missouri
Constitution. The state treasurer shall present a copy of such policy to
the governor, commissioner of administration, state auditor and general
assembly at the commencement of each regular session of the general
assembly or at any time the written investment policy is amended.
2. The state treasurer shall determine by the exercise of the
treasurer's best judgment the amount of state moneys that are not needed
for current operating expenses of the state government and shall keep on
demand deposit in banking institutions in this state selected by the
treasurer and approved by the governor and state auditor the amount of
state moneys which the treasurer has so determined are needed for current
operating expenses of the state government and disburse the same as
authorized by law.
3. Within the parameters of the state treasurer's written investment
policy, the state treasurer shall place the state moneys which the
treasurer has determined are not needed for current operations of the state
government on time deposit drawing interest in banking institutions in this
state selected by the treasurer and approved by the governor and the state
auditor, or place them outright or, if applicable, by repurchase agreement
in obligations described in section 15, article IV, Constitution of
Missouri, as the treasurer in the exercise of the treasurer's best judgment
determines to be in the best overall interest of the people of the state of
Missouri, giving due consideration to:
(1) The preservation of such state moneys;
(2) The benefits to the economy and welfare of the people of Missouri
when such state money is invested in banking institutions in this state
that, in turn, provide additional loans and investments in the Missouri
economy and generate state taxes from such initial investments and the
loans and investments created by the banking institutions, compared to the
removal or withholding from banking institutions in the state of all or
some such state moneys and investing same in obligations authorized in
section 15, article IV of the Missouri Constitution;
(3) The liquidity needs of the state;
(4) The aggregate return in earnings and taxes on the deposits and
the investment to be derived therefrom; and
(5) All other factors which to the treasurer as a prudent state
treasurer seem to be relevant to the general public welfare in the light of
the circumstances at the time prevailing. The state treasurer may also
place state moneys which are determined not needed for current operations
of the state government in linked deposits as provided in sections 30.750
to 30.767.
4. Except for state moneys deposited in linked deposits as provided
in sections 30.750 to 30.767, the rate of interest payable by all banking
institutions on time deposits of state moneys shall be the same as the
average rate paid during the week next preceding the week in which the
deposit was made for United States of America treasury securities maturing
and becoming payable closest to the time of termination of the deposit, as
determined by the state treasurer, adjusted to the nearest one-tenth of a
percent; except that the rate shall never exceed the maximum rate of
interest which by federal law or regulation a bank which is a member of the
Federal Reserve System may from time to time pay on a time deposit of the
same size and maturity.
5. Within the parameters of the state treasurer's written investment
policy, the state treasurer may subscribe for or purchase outright or by
repurchase agreement investments of the character described in subsection 3
of this section which the treasurer, in the exercise of the treasurer's
best judgment, believes to be the best for investment of state moneys at
the time and in payment therefor may withdraw moneys from any bank account,
demand or time, maintained by the treasurer without having any supporting
warrant of the commissioner of administration. The state treasurer may bid
on subscriptions for such obligations in accordance with the treasurer's
best judgment. The state treasurer shall provide for the safekeeping of
all such obligations so acquired in the same manner that securities pledged
to secure the repayment of state moneys deposited in banking institutions
are kept by the treasurer pursuant to law. The state treasurer may hold
any such obligation so acquired by the treasurer until its maturity or
prior thereto may sell the same outright or by reverse repurchase agreement
provided the state's security interest in the underlying security is
perfected or temporarily exchange such obligation for cash or other
authorized securities of at least equal market value with no maturity more
than one year beyond the maturity of any of the traded obligations, for a
negotiated fee as the treasurer, in the exercise of the treasurer's best
judgment, deems necessary or advisable for the best interest of the people
of the state of Missouri in the light of the circumstances at the time
prevailing. The state treasurer may pay all costs and expenses reasonably
incurred by the treasurer in connection with the subscription, purchase,
sale, collection, safekeeping or delivery of all such obligations at any
time acquired by the treasurer.
6. As used in this chapter, except as more particularly specified in
section 30.270, obligations of the United States shall include securities
of the United States Treasury, and United States agencies or
instrumentalities as described in section 15, article IV, Constitution of
Missouri. The word "temporarily" as used in this section shall mean no
more than six months.
2002
30.260. 1. The state treasurer shall prepare, maintain and adhere to
a written investment policy which shall include an asset allocation plan
which limits the total amount of state moneys which may be invested in any
particular investment authorized by section 15, article IV of the Missouri
Constitution. The state treasurer shall present a copy of such policy to
the governor, commissioner of administration, state auditor and general
assembly at the commencement of each regular session of the general
assembly or at any time the written investment policy is amended.
2. The state treasurer shall determine by the exercise of the
treasurer's best judgment the amount of state moneys that are not needed
for current operating expenses of the state government and shall keep on
demand deposit in banking institutions in this state selected by the
treasurer and approved by the governor and state auditor the amount of
state moneys which the treasurer has so determined are needed for current
operating expenses of the state government and disburse the same as
authorized by law.
3. Within the parameters of the state treasurer's written investment
policy, the state treasurer shall place the state moneys which the
treasurer has determined are not needed for current operations of the state
government on time deposit drawing interest in banking institutions in this
state selected by the treasurer and approved by the governor and the state
auditor, or place them outright or, if applicable, by repurchase agreement
in obligations described in section 15, article IV, Constitution of
Missouri, as the treasurer in the exercise of the treasurer's best judgment
determines to be in the best overall interest of the people of the state of
Missouri, giving due consideration to:
(1) The preservation of such state moneys;
(2) The liquidity needs of the state;
(3) The comparative yield to be derived therefrom;
(4) The effect upon the economy and welfare of the people of Missouri
of the removal or withholding from banking institutions in the state of all
or some such state moneys and investing same in obligations authorized in
section 15, article IV of the Missouri Constitution; and
(5) All other factors which to the treasurer as a prudent state
treasurer seem to be relevant to the general public welfare in the light of
the circumstances at the time prevailing. The state treasurer may also
place state moneys which are determined not needed for current operations
of the state government in linked deposits as provided in sections 30.750
to 30.767.
4. Except for state moneys deposited in linked deposits as provided
in sections 30.750 to 30.767, the rate of interest payable by all banking
institutions on time deposits of state moneys shall be the same as the
average rate paid during the week next preceding the week in which the
deposit was made for United States of America treasury securities maturing
and becoming payable closest to the time of termination of the deposit, as
determined by the state treasurer, adjusted to the nearest one-tenth of a
percent; except that the rate shall never exceed the maximum rate of
interest which by federal law or regulation a bank which is a member of the
Federal Reserve System may from time to time pay on a time deposit of the
same size and maturity.
5. Within the parameters of the state treasurer's written investment
policy, the state treasurer may subscribe for or purchase outright or by
repurchase agreement investments of the character described in subsection 3
of this section which the treasurer, in the exercise of the treasurer's
best judgment, believes to be the best for investment of state moneys at
the time and in payment therefor may withdraw moneys from any bank account,
demand or time, maintained by the treasurer without having any supporting
warrant of the commissioner of administration. The state treasurer may bid
on subscriptions for such obligations in accordance with the treasurer's
best judgment. The state treasurer shall provide for the safekeeping of
all such obligations so acquired in the same manner that securities pledged
to secure the repayment of state moneys deposited in banking institutions
are kept by the treasurer pursuant to law. The state treasurer may hold
any such obligation so acquired by the treasurer until its maturity or
prior thereto may sell the same outright or by reverse repurchase agreement
provided the state's security interest in the underlying security is
perfected or temporarily exchange such obligation for cash or other
authorized securities of at least equal market value with no maturity more
than one year beyond the maturity of any of the traded obligations, for a
negotiated fee as the treasurer, in the exercise of the treasurer's best
judgment, deems necessary or advisable for the best interest of the people
of the state of Missouri in the light of the circumstances at the time
prevailing. The state treasurer may pay all costs and expenses reasonably
incurred by the treasurer in connection with the subscription, purchase,
sale, collection, safekeeping or delivery of all such obligations at any
time acquired by the treasurer.
6. As used in this chapter, except as more particularly specified in
section 30.270, obligations of the United States shall include securities
of the United States Treasury, and United States agencies or
instrumentalities as described in section 15, article IV, Constitution of
Missouri. The word "temporarily" as used in this section shall mean no
more than six months.
1997
30.260. 1. The state treasurer shall prepare, maintain and adhere to
a written investment policy which shall include an asset allocation plan
which limits the total amount of state moneys which may be invested in any
particular investment authorized by section 15, article IV of the Missouri
Constitution. The state treasurer shall present a copy of such policy to
the governor, commissioner of administration, state auditor and general
assembly at the commencement of each regular session of the general
assembly or at any time the written investment policy is amended.
2. The state treasurer shall determine by the exercise of the
treasurer's best judgment the amount of state moneys that are not needed
for current operating expenses of the state government and shall keep on
demand deposit in banking institutions in this state selected by the
treasurer and approved by the governor and state auditor the amount of
state moneys which the treasurer has so determined are needed for current
operating expenses of the state government and disburse the same as
authorized by law.
3. Within the parameters of the state treasurer's written investment
policy, the state treasurer shall place the state moneys which the
treasurer has determined are not needed for current operations of the state
government on time deposit drawing interest in banking institutions in this
state selected by the treasurer and approved by the governor and the state
auditor, or place them outright or, if applicable, by repurchase agreement
in obligations described in section 15, article IV, Constitution of
Missouri, as the treasurer in the exercise of the treasurer's best
judgment determines to be in the best overall interest of the people of the
state of Missouri, giving due consideration to:
(1) The preservation of such state moneys;
(2) The liquidity needs of the state;
(3) The comparative yield to be derived therefrom;
(4) The effect upon the economy and welfare of the people of Missouri
of the removal or withholding from banking institutions in the state of all
or some such state moneys and investing same in obligations authorized in
section 15, article IV of the Missouri Constitution; and
(5) All other factors which to the treasurer as a prudent state
treasurer seem to be relevant to the general public welfare in the light of
the circumstances at the time prevailing. The state treasurer may also
place state moneys which are determined not needed for current operations
of the state government in linked deposits as provided in sections 30.750
to 30.767.
4. Except for state moneys deposited in linked deposits as provided
in sections 30.750 to 30.767, the rate of interest payable by all banking
institutions on time deposits of state moneys shall be the same as the
average rate paid during the week next preceding the week in which the
deposit was made for United States of America treasury securities maturing
and becoming payable closest to the time of termination of the deposit, as
determined by the state treasurer, adjusted to the nearest one-tenth of a
percent; except that the rate shall never exceed the maximum rate of
interest which by federal law or regulation a bank which is a member of the
Federal Reserve System may from time to time pay on a time deposit of the
same size and maturity.
5. Within the parameters of the state treasurer's written investment
policy, the state treasurer may subscribe for or purchase outright or by
repurchase agreement investments of the character described in subsection 3
of this section which the treasurer, in the exercise of the treasurer's
best judgment, believes to be the best for investment of state moneys at
the time and in payment therefor may withdraw moneys from any bank account,
demand or time, maintained by the treasurer without having any supporting
warrant of the commissioner of administration. The state treasurer may bid
on subscriptions for such obligations in accordance with the treasurer's
best judgment. The state treasurer shall provide for the safekeeping of
all such obligations so acquired in the same manner that securities pledged
to secure the repayment of state moneys deposited in banking institutions
are kept by the treasurer pursuant to law. The state treasurer may hold
any such obligation so acquired by the treasurer until its maturity or
prior thereto may sell the same outright or by reverse repurchase agreement
provided the state's security interest in the underlying security is
perfected or temporarily exchange such obligation for other authorized
securities of at least equal market value with no maturity more than one
year beyond the maturity of any of the traded obligations, for a negotiated
fee as the treasurer, in the exercise of the treasurer's best judgment,
deems necessary or advisable for the best interest of the people of the
state of Missouri in the light of the circumstances at the time prevailing.
The state treasurer may pay all costs and expenses reasonably incurred by
the treasurer in connection with the subscription, purchase, sale,
collection, safekeeping or delivery of all such obligations at any time
acquired by the treasurer.
6. As used in this chapter, except as more particularly specified in
section 30.270, obligations of the United States shall include securities
of the United States Treasury, and United States agencies or
instrumentalities as described in section 15, article IV, Constitution of
Missouri. The word "temporarily" as used in this section shall mean no
more than six months.
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