[Rev. 2/10/2015 5:07:07
PM--2014R2]
CHAPTER 355 - PUBLIC INVESTMENTS
GENERAL PROVISIONS
NRS 355.005 Regulations
of State Treasurer.
STATE BOARD OF FINANCE
NRS 355.010 Creation;
members.
NRS 355.020 Salary
for appointive members; compensation for members and employees.
NRS 355.030 Legal
adviser; Secretary.
NRS 355.040 Records.
NRS 355.045 General
duties.
INVESTMENTS AND LOANS FROM STATE PERMANENT SCHOOL FUND
NRS 355.050 State
Treasurer charged with investment of money in Fund.
NRS 355.060 Authorized
and prohibited investments.
NRS 355.070 Determinations
to be made before investment; opinion of Attorney General.
NRS 355.080 Restrictions
on investment in county bonds.
NRS 355.090 Conversion
of bonds or securities into cash; reinvestment.
NRS 355.100 Loans
on agricultural lands: Abstract; appraisal.
NRS 355.110 Note
and mortgage: Execution and recording; provisions.
OTHER AUTHORIZED STATE INVESTMENTS AND LOANS
NRS 355.120 Investment
in farm mortgage loans, farm loan bonds and other obligations issued by federal
land banks and banks for cooperatives; limitations.
NRS 355.130 Loans
to local governments.
NRS 355.135 Lending
of securities from state investment portfolio.
NRS 355.140 Authorized
and prohibited investments of state money.
NRS 355.145 Standard
of care for investments made pursuant to NRS 355.140.
NRS 355.150 Determinations
to be made before investment; opinion of Attorney General.
NRS 355.160 Purpose
of NRS 355.140 and 355.150.
INVESTMENTS AND LOANS BY LOCAL GOVERNMENTS
NRS 355.165 Local
Government Pooled Long-Term Investment Account: Creation; administration;
applicability of NRS 355.167; permissible
investments; assessment of costs; computation of interest; establishment of
subaccounts.
NRS 355.167 Local
Government Pooled Investment Fund: Creation; administration; permissible
investments; permissible loans; written request for withdrawal by local
government; interest; regulations. [Effective through September 30, 2017.]
NRS 355.167 Local
Government Pooled Investment Fund: Creation; administration; permissible
investments; permissible loans; written request for withdrawal by local
government; interest; regulations. [Effective October 1, 2017.]
NRS 355.168 Pooling
of money of local governments within county for investment.
NRS 355.169 Legal
action by county to recover investment; expenses.
NRS 355.170 Authorized
investments; disposition of interest.
NRS 355.171 Additional
authorized investments for counties, cities and school districts; exceptions.
NRS 355.172 Possession
of securities purchased by or for local government; security interest in lieu
of possession.
NRS 355.175 Authority
for investments; priority in case of conflicting orders concerning same money;
disposition of interest.
NRS 355.176 Investment
of money held pursuant to deferred compensation plan.
NRS 355.177 Investment
in own securities or interim warrants prohibited.
NRS 355.178 Loans
from investment portfolios of certain counties, cities or consolidated
municipalities.
INVESTMENT IN BONDS OF HOME OWNERS’ LOAN CORPORATION AND
FEDERAL HOME LOAN BANK; LOANS AND ADVANCES INSURED BY FEDERAL HOUSING
ADMINISTRATOR
NRS 355.180 Bonds
of Home Owners’ Loan Corporation and Federal Home Loan Bank are legal
investments.
NRS 355.190 Loans
and advances of credit by Federal Housing Administrator.
NRS 355.200 Depositary
bonds.
INVESTMENT OF MONEY DEPOSITED IN COURT
NRS 355.210 Conditions
and requirements for investment.
INVESTMENT OF MONEY FOR PROVISION OF RETIREMENT BENEFITS
NRS 355.220 Retirement
Benefits Investment Board: Creation; membership; powers and duties.
INVESTMENT IN CORPORATION FOR PUBLIC BENEFIT THAT PROVIDES
PRIVATE EQUITY FUNDING FOR CERTAIN BUSINESSES
NRS 355.250 Definitions.
NRS 355.255 “Corporation
for public benefit” defined.
NRS 355.260 “Private
equity funding” defined.
NRS 355.265 “Venture
capital” defined.
NRS 355.270 Corporation
for public benefit: Formation and purpose; composition, chair, compensation and
duties of board of directors.
NRS 355.275 Corporation
for public benefit: Placement of investments; use of money received from State
Permanent School Fund.
NRS 355.280 Transfer
of money from State Permanent School Fund to corporation for public benefit:
Prerequisites; maximum amount.
NRS 355.285 State
Treasurer: Powers and duties.
_________
_________
GENERAL PROVISIONS
NRS 355.005 Regulations of State Treasurer. The
State Treasurer shall adopt regulations which the State Treasurer deems necessary
to carry out his or her duties pursuant to the provisions of this chapter.
(Added to NRS by 1995, 407)
STATE BOARD OF FINANCE
NRS 355.010 Creation; members.
1. The State Board of Finance is hereby
created.
2. The State Board of Finance shall
consist of the Governor, the State Controller, the State Treasurer and two
other members to be appointed by the Governor for terms of 4 years each.
3. At least one of the members appointed
by the Governor shall be actively engaged in commercial banking in this state.
[Part 1:212:1917; A 1919, 284; 1919 RL p. 3146; NCL §
6962] + [Part 1:93:1919; 1919 RL p. 3109; NCL § 6956] + [Part 2:93:1919; 1919
RL p. 3109; NCL § 6957]—(NRS A 1969, 1200)
NRS 355.020 Salary for appointive members; compensation for members and
employees.
1. The two members appointed by the
Governor are each entitled to receive a salary of not more than $80 per day, as
fixed by the State Board of Finance, for their services while actually engaged
in the performance of their duties as members of the Board.
2. While engaged in the business of the
Board, each member and employee of the Board is entitled to receive the per diem
allowance and travel expenses provided for state officers and employees
generally.
[Part 2:93:1919; 1919 RL p. 3109; NCL § 6957]—(NRS A
1969, 1200; 1975, 298; 1981, 1980; 1989, 1712)
NRS 355.030 Legal adviser; Secretary.
1. The Attorney General is the legal
adviser of the State Board of Finance.
2. The Chief Deputy State Treasurer is ex
officio Secretary of the State Board of Finance.
[3:93:1919; 1919 RL p. 3110; NCL § 6958] + [4:93:1919;
1919 RL p. 3111; NCL § 6959]—(NRS A 1969, 1201; 1977, 561)
NRS 355.040 Records. The State
Board of Finance shall keep a permanent record of all its meetings, in which
record shall be:
1. Recorded the aye and nay vote of the
members of the Board upon all questions presented to the Board.
2. Kept all opinions of the Attorney
General as required by the provisions of this chapter.
[3:212:1917; 1919 RL p. 3147; NCL § 6964]
NRS 355.045 General duties. The
State Board of Finance shall review and approve or disapprove the policies
established by the State Treasurer for investment of money of the State and of
money in the Local Government Pooled Investment Fund. The Board shall review
both sets of policies at least every 4 months.
(Added to NRS by 1979, 723; A 1981, 496; 1997, 1282)
INVESTMENTS AND LOANS FROM STATE PERMANENT SCHOOL FUND
NRS 355.050 State Treasurer charged with investment of money in Fund. The State Treasurer shall have charge of all
the investments of money and the sale of all securities of the State Permanent
School Fund.
[Part 1:212:1917; A 1919, 284; 1919 RL p. 3146; NCL §
6962]—(NRS A 1979,
724)
NRS 355.060 Authorized and prohibited investments.
1. The State Controller shall notify the
State Treasurer monthly of the amount of uninvested money in the State
Permanent School Fund.
2. Whenever there is a sufficient amount
of money for investment in the State Permanent School Fund, the State Treasurer
shall proceed to negotiate for the investment of the money in:
(a) United States bonds.
(b) Obligations or certificates of the Federal
National Mortgage Association, the Federal Home Loan Banks, the Federal Home
Loan Mortgage Corporation, the Federal Farm Credit Banks Funding Corporation or
the Student Loan Marketing Association, whether or not guaranteed by the United
States.
(c) Bonds of this state or of other states.
(d) Bonds of any county of the State of Nevada.
(e) United States treasury notes.
(f) Farm mortgage loans fully insured and
guaranteed by the Farm Service Agency of the United States Department of
Agriculture.
(g) Loans at a rate of interest of not less than
6 percent per annum, secured by mortgage on agricultural lands in this state of
not less than three times the value of the amount loaned, exclusive of
perishable improvements, of unexceptional title and free from all encumbrances.
(h) Money market mutual funds that:
(1) Are registered with the Securities and
Exchange Commission;
(2) Are rated by a nationally recognized
rating service as “AAA” or its equivalent; and
(3) Invest only in securities issued or
guaranteed as to payment of principal and interest by the Federal Government,
or its agencies or instrumentalities, or in repurchase agreements that are
fully collateralized by such securities.
(i) Common or preferred stock of a corporation
created by or existing under the laws of the United States or of a state,
district or territory of the United States, if:
(1) The stock of the corporation is:
(I) Listed on a national stock
exchange; or
(II) Traded in the over-the-counter
market, if the price quotations for the over-the-counter stock are quoted by
the National Association of Securities Dealers Automated Quotations System
(NASDAQ);
(2) The outstanding shares of the
corporation have a total market value of not less than $50,000,000;
(3) The maximum investment in stock is not
greater than 50 percent of the book value of the total investments of the State
Permanent School Fund;
(4) Except for investments made pursuant
to paragraph (k), the amount of an investment in a single corporation is not
greater than 3 percent of the book value of the assets of the State Permanent
School Fund; and
(5) Except for investments made pursuant
to paragraph (k), the total amount of shares owned by the State Permanent
School Fund is not greater than 5 percent of the outstanding stock of a single
corporation.
(j) A pooled or commingled real estate fund or a
real estate security that is managed by a corporate trustee or by an investment
advisory firm that is registered with the Securities and Exchange Commission,
either of which may be retained by the State Treasurer as an investment manager.
The shares and the pooled or commingled fund must be held in trust. The total
book value of an investment made under this paragraph must not at any time be
greater than 5 percent of the total book value of all investments of the State
Permanent School Fund.
(k) Mutual funds or common trust funds that
consist of any combination of the investments listed in paragraphs (a) to (j),
inclusive.
(l) The limited partnerships or limited-liability
companies described in NRS 355.280.
3. The State Treasurer shall not invest
any money in the State Permanent School Fund pursuant to paragraph (i), (j) or
(k) of subsection 2 unless the State Treasurer obtains a judicial determination
that the proposed investment or category of investments will not violate the
provisions of Section 9 of Article 8
of the Constitution of the State of Nevada. The State Treasurer shall contract
for the services of independent contractors to manage any investments of the
State Treasurer made pursuant to paragraph (i), (j) or (k) of subsection 2. The
State Treasurer shall establish such criteria for the qualifications of such an
independent contractor as are appropriate to ensure that each independent
contractor has expertise in the management of such investments.
4. In addition to the investments
authorized by subsection 2, the State Treasurer may make loans of money from
the State Permanent School Fund to school districts pursuant to NRS 387.526.
5. No part of the State Permanent School
Fund may be invested pursuant to a reverse-repurchase agreement.
[Part 2:212:1917; A 1925, 221; 1919 RL p. 3146; NCL §
6963] + [2a:212:1917; added 1953, 304]—(NRS A 1969, 822; 1979, 724; 1989, 2178; 1991, 175; 1993, 2282; 1997, 2713, 2879; 1999, 599; 2001, 2291; 2011, 2584)
NRS 355.070 Determinations to be made before investment; opinion of Attorney
General.
1. Except as otherwise provided in
subsection 3, the State Treasurer shall:
(a) Make diligent inquiry as to the financial
standing and responsibility of any state, county or person in whose bonds or
securities on agricultural lands the State Treasurer proposes to invest.
(b) Require the Attorney General to:
(1) Give his or her written legal opinion
as to the validity of any act of any state or county under which the bonds or
securities are issued and authorized and in which the State Treasurer
contemplates investment.
(2) Examine and give his or her written
opinion upon the title and the abstract of title of all agricultural land on
which the State contemplates taking mortgages.
2. If the State Treasurer is satisfied as
to the financial standing and responsibility of the state or county whose bonds
or securities the State Treasurer proposes to purchase, or is satisfied of the
financial standing and responsibility of the person whose mortgages on
agricultural land are offered to the State, and the Attorney General gives his
or her written opinion that the act under which the bonds or securities are
issued is valid and that the issues were regularly made, or approves the
abstract of title of the agricultural land proposed to be mortgaged, the State
Treasurer may make the investment.
3. The provisions of this section do not
apply to loans of money from the State Permanent School Fund made pursuant to NRS 387.526.
[Part 2:212:1917; A 1925, 221; 1919 RL p. 3146; NCL §
6963]—(NRS A 1979,
570; 1981,
361; 1997,
2713; 1999,
599)
NRS 355.080 Restrictions on investment in county bonds. No part of the State Permanent School Fund may
be invested in the bonds of any county whose entire bonded indebtedness for all
purposes exceeds 10 percent of its assessed valuation; and the amount of bonds
of any county purchased or invested in by the State Treasurer may not, in the
aggregate, exceed 4 percent of the assessed valuation of any county.
[5:212:1917; A 1928, 30; 1947, 267; 1943 NCL §
6966]—(NRS A 1979,
724)
NRS 355.090 Conversion of bonds or securities into cash; reinvestment. The State Treasurer may convert into cash any
of the bonds or securities in which any part of the State Permanent School Fund
is invested by selling them in the open market to the highest bidder or
bidders, the proceeds thereof to be placed by the State Treasurer in the State
Permanent School Fund to be reinvested as provided in NRS
355.060 and 355.070.
[4:212:1917; 1919 RL p. 3147; NCL § 6965]—(NRS A 1979, 724)
NRS 355.100 Loans on agricultural lands: Abstract; appraisal.
1. Any person desiring to obtain a loan
from the State Permanent School Fund on agricultural land shall:
(a) Make written application to the State Board
of Finance; and
(b) At the same time, furnish to the State Board
of Finance a full and complete abstract of title to the property offered as
security for the loan.
2. If the abstract is approved by the
Attorney General and it appears that the person offering such mortgage has an
exceptional title free from all encumbrances, the State Board of Finance
forthwith shall appoint an appraiser or appraisers to view the land and
improvements thereon and make a report to the State Board of Finance of the
value thereof. The person desiring to obtain the loan shall pay the cost of the
appraiser or appraisers which may be incurred, not to exceed $5 per day and
expenses.
[6:212:1917; 1919 RL p. 3147; NCL § 6967] +
[8:212:1917; 1919 RL p. 3147; NCL § 6969]
NRS 355.110 Note and mortgage: Execution and recording; provisions.
1. If the abstract is approved by the
Attorney General and the title is in accordance with the requirements of NRS 355.100, and the written report of the appraiser
or appraisers is satisfactory to the State Board of Finance, the loan shall be
made. The person obtaining the loan shall execute a note payable to the State
of Nevada for the State Permanent School Fund for the amount thereof, and shall
execute as security for the payment of the note a mortgage upon the lands to be
given as security in a form and manner to be approved by the Attorney General.
The mortgage shall be recorded as other mortgages of real property are recorded.
2. Every loan made upon a mortgage on
agricultural land shall be payable in not to exceed 10 years, and provision
shall be made for partial payments annually or semiannually to the State
Treasurer, but no payments shall be made in an amount less than $100 and
interest accruing. All payments of interest and payments upon principal shall
be made semiannually on June 1 and December 1 of each year.
[7:212:1917; 1919 RL p. 3147; NCL § 6968]
OTHER AUTHORIZED STATE INVESTMENTS AND LOANS
NRS 355.120 Investment in farm mortgage loans, farm loan bonds and other
obligations issued by federal land banks and banks for cooperatives;
limitations. The State Treasurer
may invest any available money in the State Treasury, other than that in the
State Permanent School Fund and that in the State Insurance Fund, in farm
mortgage loans fully insured and guaranteed by the Farmers Home Administration
of the United States Department of Agriculture, farm loan bonds, consolidated
farm loan bonds, debentures, consolidated debentures and other obligations
issued by federal land banks and federal intermediate credit banks under the
authority of the Federal Farm Loan Act, formerly 12 U.S.C. §§ 636 to 1012,
inclusive, and §§ 1021 to 1129, inclusive, and the Farm Credit Act of 1971, 12
U.S.C. §§ 2001 to 2259, inclusive, as now or hereafter amended, and bonds,
debentures, consolidated debentures and other obligations issued by banks for
cooperatives under the authority of the Farm Credit Act of 1933, formerly 12
U.S.C. §§ 1131 to 1138e, inclusive, and the Farm Credit Act of 1971, 12 U.S.C.
§§ 2001 to 2259, inclusive, as now or hereafter amended.
[5a:93:1919; added 1953, 303]—(NRS A 1959, 34; 1973,
1089; 1979, 724;
1991, 471)
NRS 355.130 Loans to local governments.
1. By unanimous vote of its members and
with the approval of the State Board of Examiners, the State Board of Finance
may lend any available money in the State Treasury, other than that in the
State Permanent School Fund and the State Insurance Fund, to local governments
situated within the boundaries of the State of Nevada. Such loans must be made
only to local governments which have observed the regulations and followed the
procedure for obtaining a medium-term obligation set forth in chapter 350 of NRS. Such loans must be made for
a period of not longer than 10 years and must bear interest at a rate which
does not exceed by more than 3 percent the Index of Twenty Bonds which was most
recently published before the bids are received or a negotiated offer is
accepted.
2. In making loans to local governments,
the State Board of Finance shall follow the procedure for making other loans
set forth in this chapter.
[5:93:1919; 1919 RL p. 3111; NCL § 6960]—(NRS A 1959,
422; 1965, 745; 1969, 802; 1973, 16; 1975, 870; 1981, 1415; 1983, 583; 1989, 53; 1995, 1820)
NRS 355.135 Lending of securities from state investment portfolio. The State Treasurer may lend securities from
the investment portfolio of this state if he or she receives collateral from
the borrower which represents at least 102 percent of the value of the
securities borrowed. For the purposes of this section, the value of the
securities borrowed must be determined on a daily basis.
(Added to NRS by 1995, 407)
NRS 355.140 Authorized and prohibited investments of state money.
1. In addition to other investments
provided for by a specific statute, the following bonds and other securities
are proper and lawful investments of any of the money of this state, of its various
departments, institutions and agencies, and of the State Insurance Fund:
(a) Bonds and certificates of the United States;
(b) Bonds, notes, debentures and loans if they
are underwritten by or their payment is guaranteed by the United States;
(c) Obligations or certificates of the United
States Postal Service, the Federal National Mortgage Association, the
Government National Mortgage Association, the Federal Agricultural Mortgage
Corporation, the Federal Home Loan Banks, the Federal Home Loan Mortgage
Corporation or the Student Loan Marketing Association, whether or not
guaranteed by the United States;
(d) Bonds of this state or other states of the
Union;
(e) Bonds of any county of this state or of other
states;
(f) Bonds of incorporated cities in this state or
in other states of the Union, including special assessment district bonds if
those bonds provide that any deficiencies in the proceeds to pay the bonds are
to be paid from the general fund of the incorporated city;
(g) General obligation bonds of irrigation
districts and drainage districts in this state which are liens upon the
property within those districts, if the value of the property is found by the
board or commission making the investments to render the bonds financially
sound over all other obligations of the districts;
(h) Bonds of school districts within this state;
(i) Bonds of any general improvement district
whose population is 200,000 or more and which is situated in two or more
counties of this state or of any other state, if:
(1) The bonds are general obligation bonds
and constitute a lien upon the property within the district which is subject to
taxation; and
(2) That property is of an assessed
valuation of not less than five times the amount of the bonded indebtedness of
the district;
(j) Medium-term obligations for counties, cities
and school districts authorized pursuant to chapter
350 of NRS;
(k) Loans bearing interest at a rate determined
by the State Board of Finance when secured by first mortgages on agricultural
lands in this state of not less than three times the value of the amount
loaned, exclusive of perishable improvements, and of unexceptional title and
free from all encumbrances;
(l) Farm loan bonds, consolidated farm loan
bonds, debentures, consolidated debentures and other obligations issued by
federal land banks and federal intermediate credit banks under the authority of
the Federal Farm Loan Act, formerly 12 U.S.C. §§ 636 to 1012, inclusive, and §§
1021 to 1129, inclusive, and the Farm Credit Act of 1971, 12 U.S.C. §§ 2001 to
2259, inclusive, and bonds, debentures, consolidated debentures and other
obligations issued by banks for cooperatives under the authority of the Farm
Credit Act of 1933, formerly 12 U.S.C. §§ 1131 to 1138e, inclusive, and the
Farm Credit Act of 1971, 12 U.S.C. §§ 2001 to 2259, inclusive, excluding such
money thereof as has been received or which may be received hereafter from the
Federal Government or received pursuant to some federal law which governs the
investment thereof;
(m) Negotiable certificates of deposit issued by
commercial banks, insured credit unions or savings and loan associations;
(n) Bankers’ acceptances of the kind and
maturities made eligible by law for rediscount with Federal Reserve banks or
trust companies which are members of the Federal Reserve System, except that
acceptances may not exceed 180 days’ maturity, and may not, in aggregate value,
exceed 20 percent of the total par value of the portfolio as determined on the
date of purchase;
(o) Commercial paper issued by a corporation
organized and operating in the United States or by a depository institution
licensed by the United States or any state and operating in the United States
that:
(1) At the time of purchase has a
remaining term to maturity of not more than 270 days; and
(2) Is rated by a nationally recognized
rating service as “A-1,” “P-1” or its equivalent, or better,
Ê except that
investments pursuant to this paragraph may not, in aggregate value, exceed 20
percent of the total par value of the portfolio as determined on the date of
purchase, and if the rating of an obligation is reduced to a level that does
not meet the requirements of this paragraph, it must be sold as soon as
possible;
(p) Notes, bonds and other unconditional
obligations for the payment of money, except certificates of deposit that do
not qualify pursuant to paragraph (m), issued by corporations organized and
operating in the United States or by depository institutions licensed by the
United States or any state and operating in the United States that:
(1) Are purchased from a registered
broker-dealer;
(2) At the time of purchase have a
remaining term to maturity of not more than 5 years; and
(3) Are rated by a nationally recognized
rating service as “A” or its equivalent, or better,
Ê except that
investments pursuant to this paragraph may not, in aggregate value, exceed 20
percent of the total par value of the portfolio, and if the rating of an
obligation is reduced to a level that does not meet the requirements of this
paragraph, it must be sold as soon as possible;
(q) Money market mutual funds which:
(1) Are registered with the Securities and
Exchange Commission;
(2) Are rated by a nationally recognized
rating service as “AAA” or its equivalent; and
(3) Invest only in securities issued by
the Federal Government or agencies of the Federal Government or in repurchase
agreements fully collateralized by such securities;
(r) Collateralized mortgage obligations that are
rated by a nationally recognized rating service as “AAA” or its equivalent; and
(s) Asset-backed securities that are rated by a
nationally recognized rating service as “AAA” or its equivalent.
2. Repurchase agreements are proper and
lawful investments of money of the State and the State Insurance Fund for the
purchase or sale of securities which are negotiable and of the types listed in
subsection 1 if made in accordance with the following conditions:
(a) The State Treasurer shall designate in
advance and thereafter maintain a list of qualified counterparties which:
(1) Regularly provide audited and, if
available, unaudited financial statements to the State Treasurer;
(2) The State Treasurer has determined to
have adequate capitalization and earnings and appropriate assets to be highly
credit worthy; and
(3) Have executed a written master repurchase
agreement in a form satisfactory to the State Treasurer and the State Board of
Finance pursuant to which all repurchase agreements are entered into. The
master repurchase agreement must require the prompt delivery to the State
Treasurer and the appointed custodian of written confirmations of all
transactions conducted thereunder, and must be developed giving consideration
to the Federal Bankruptcy Act, 11 U.S.C. §§ 101 et seq.
(b) In all repurchase agreements:
(1) At or before the time money to pay the
purchase price is transferred, title to the purchased securities must be
recorded in the name of the appointed custodian, or the purchased securities
must be delivered with all appropriate, executed transfer instruments by
physical delivery to the custodian;
(2) The State must enter into a written
contract with the custodian appointed pursuant to subparagraph (1) which
requires the custodian to:
(I) Disburse cash for repurchase
agreements only upon receipt of the underlying securities;
(II) Notify the State when the
securities are marked to the market if the required margin on the agreement is
not maintained;
(III) Hold the securities separate
from the assets of the custodian; and
(IV) Report periodically to the
State concerning the market value of the securities;
(3) The market value of the purchased
securities must exceed 102 percent of the repurchase price to be paid by the
counterparty and the value of the purchased securities must be marked to the
market weekly;
(4) The date on which the securities are
to be repurchased must not be more than 90 days after the date of purchase; and
(5) The purchased securities must not have
a term to maturity at the time of purchase in excess of 10 years.
3. As used in subsection 2:
(a) “Counterparty” means a bank organized and
operating or licensed to operate in the United States pursuant to federal or
state law or a securities dealer which is:
(1) A registered broker-dealer;
(2) Designated by the Federal Reserve Bank
of New York as a “primary” dealer in United States government securities; and
(3) In full compliance with all applicable
capital requirements.
(b) “Repurchase agreement” means a purchase of
securities by the State or State Insurance Fund from a counterparty which
commits to repurchase those securities or securities of the same issuer,
description, issue date and maturity on or before a specified date for a
specified price.
4. No money of this state may be invested
pursuant to a reverse-repurchase agreement, except money invested pursuant to chapter 286 of NRS.
[1:191:1943; A 1951, 318; 1953, 38, 586; 1954,
5]—(NRS A 1959, 35, 423; 1967, 1712; 1971, 269; 1973, 16, 334, 1090; 1981, 489; 1983, 961; 1985, 353; 1989, 2178; 1991, 346, 471, 499; 1993, 2283; 1995, 167, 1820; 1997, 1282; 1999, 798, 1477, 1821; 2001, 2293)
NRS 355.145 Standard of care for investments made pursuant to NRS
355.140. In investing
pursuant to NRS 355.140, the State Treasurer shall
exercise the judgment and care, under the circumstances then prevailing, which
a person of prudence, discretion and intelligence exercises in the management
of his or her own affairs, not in regard to speculation, but in regard to the
investment of his or her money, considering the probable income as well as the
probable safety of his or her capital.
(Added to NRS by 1993, 2282)
NRS 355.150 Determinations to be made before investment; opinion of Attorney
General.
1. Before making any investment in the
bonds and other securities designated in NRS 355.140,
the State Board of Finance, or other board, commission or agency of the State
contemplating the making of any such investments shall make due and diligent
inquiry as to:
(a) Whether the bonds of such federal agencies
are actually underwritten or payment thereof is guaranteed by the United
States.
(b) The financial standing and responsibility of
the state or states, county or counties, incorporated cities, irrigation
districts, drainage districts, school districts, and general improvement districts
in the bonds or securities of which such investments are contemplated or are to
be made.
(c) Whether such bonds and other securities are
valid and duly authorized and issued, and the proceedings incident thereto have
been fully complied with.
(d) The financial standing and responsibility of
the person or persons, company or companies, corporation or corporations to
whom or to which such loans are contemplated.
(e) The value of the lands so mortgaged.
2. Such commission, board or other state
agency shall require the Attorney General:
(a) To give his or her legal opinion in writing
as to:
(1) The validity of any laws under which
such bonds or securities are issued and authorized and in which such
investments are contemplated.
(2) The validity of such bonds or other
securities.
(b) To examine and pass upon and to give his or
her official opinion in writing upon the title and abstract of title or title
insurance of all agricultural lands so mortgaged to secure such loans.
3. Unless such commission, board or other
state agency is satisfied from such inquiry and opinion that the bonds of such
federal agencies are underwritten or payment thereof guaranteed by the United
States and of the financial standing and responsibility of the state, county, incorporated
city or district issuing such bonds, then such commission, board or other state
agency shall not invest such funds therein, but if satisfied, such commission,
board or other state agency may, at its option, so invest such funds in such
bonds.
[2:191:1943; 1943 NCL § 7058.01]—(NRS A 1967, 1713; 1979, 1641; 1981, 1525; 1999, 1825)
NRS 355.160 Purpose of NRS 355.140 and 355.150. Except as otherwise provided in NRS 355.140 and 355.150,
the State Board of Finance, State Board of Education or other state agency
shall proceed in the same manner as the law relating to each of them requires
in the making of such investments, the purpose of NRS
355.140 and 355.150, being merely to designate
the classes of bonds and other securities and loans in which the funds
mentioned in NRS 355.140 lawfully may be invested
and the other matters relating thereto as specified in NRS
355.140 and 355.150.
[3:191:1943; 1943 NCL § 7058.02]—(NRS A 1981, 1525; 1999, 1825)
INVESTMENTS AND LOANS BY LOCAL GOVERNMENTS
NRS 355.165 Local Government Pooled Long-Term Investment Account: Creation;
administration; applicability of NRS 355.167;
permissible investments; assessment of costs; computation of interest; establishment
of subaccounts.
1. The Local Government Pooled Long-Term
Investment Account is hereby created. The Account must be administered by the
State Treasurer.
2. All of the provisions of NRS 355.167 apply to the Local Government Pooled
Long-Term Investment Account.
3. In addition to the investments which
are permissible pursuant to subsection 3 of NRS 355.167,
the Treasurer may invest the money in the Local Government Pooled Long-Term
Investment Account in:
(a) Mutual funds which:
(1) Are registered with the Securities and
Exchange Commission;
(2) Are rated in the highest rating
category by at least one nationally recognized rating service; and
(3) Invest only in securities issued by
the Federal Government or agencies of the Federal Government or in repurchase
agreements fully collateralized by such securities.
(b) An investment contract that is collateralized
with securities issued by the Federal Government or agencies of the Federal
Government if:
(1) The collateral has a market value of
at least 102 percent of the amount invested and any accrued unpaid interest
thereon;
(2) The Treasurer receives a security
interest in the collateral that is fully perfected and the collateral is held
in custody for the State by a third-party agent of the State which is a
commercial bank authorized to exercise trust powers;
(3) The market value of the collateral is
determined not less frequently than weekly and, if the ratio required by
subparagraph (1) is not met, sufficient additional collateral is deposited with
the agent of this State to meet that ratio within 2 business days after the
determination; and
(4) The party with whom the investment
contract is executed is a commercial bank or credit union, or that party or a
guarantor of the performance of that party is:
(I) An insurance company which has a
rating on its ability to pay claims of not less than “Aa2” by Moody’s Investors
Service, Inc., or “AA” by Standard and Poor’s Ratings Services, or their
equivalent; or
(II) An entity which has a credit
rating on its outstanding long-term debt of not less than “A2” by Moody’s
Investors Service, Inc., or “A” by Standard and Poor’s Ratings Services, or
their equivalent.
4. In addition to the reasonable charges
against the Account which the State Treasurer may assess pursuant to subsection
8 of NRS 355.167, the State Treasurer may, in the
case of a local government pooled long-term investment account, assess the
costs:
(a) Associated with a calculation of any rebate
of arbitrage profits which is required to be paid to the Federal Government by
26 U.S.C. § 148; and
(b) Of contracting with qualified persons to
assist in the:
(1) Calculation of any rebate of arbitrage
profits which is required to be paid to the Federal Government by 26 U.S.C. §
148; and
(2) Administration of the Account.
5. In addition to the quarterly
computations of interest to be reinvested for or paid to each participating
local government pursuant to subsection 9 of NRS
355.167, the State Treasurer may, in the case of a local government pooled
long-term investment account, compute and reinvest or pay the interest more
frequently. The State Treasurer may also base his or her computations on the
amount of interest accrued rather than the amount received.
6. The Treasurer may establish one or more
separate subaccounts in the Local Government Pooled Long-Term Investment
Account for identified investments that are made for and allocated to specific
participating local governments.
(Added to NRS by 1993, 257; A 1997, 2879; 1999, 1480)
NRS 355.167 Local Government Pooled Investment Fund: Creation;
administration; permissible investments; permissible loans; written request for
withdrawal by local government; interest; regulations. [Effective through
September 30, 2017.]
1. The Local Government Pooled Investment
Fund is hereby created as an agency fund to be administered by the State
Treasurer.
2. Any local government, as defined in NRS 354.474, may deposit its money with the
State Treasurer for credit to the Fund for purposes of investment.
3. The State Treasurer may invest the
money of the Fund:
(a) In securities which have been authorized as
investments for a local government by any provision of NRS or any special law.
(b) In time certificates of deposit in the manner
provided by NRS 356.015.
(c) In notes authorized by NRS 349.074.
4. The State Treasurer may lend securities
in which he or she invests pursuant to subsection 3 or NRS
355.165 if the State Treasurer receives collateral from the borrower in the
form of cash or marketable securities that are:
(a) Acceptable to the State Treasurer; and
(b) At least 102 percent of the value of the
securities borrowed.
Ê The State
Treasurer may enter into such contracts as are necessary to extend and manage
loans pursuant to this subsection.
5. Each local government that elects to
deposit money with the State Treasurer for such an investment must:
(a) Upon the deposit, inform the State Treasurer
in writing how long a period the money is expected to be available for
investment.
(b) At the end of the period, notify the State
Treasurer in writing whether it wishes to extend the period.
6. If a local government wishes to
withdraw any of its money before the end of the period of investment, it must
make a written request to the State Treasurer. Whenever the State Treasurer is
required to sell or liquidate invested securities because of a request for
early withdrawal, any penalties or loss of interest incurred must be charged
against the deposit of the local government which requested the early
withdrawal.
7. All interest received on money of the
Fund must be deposited for credit to the Fund.
8. The State Treasurer may assess
reasonable charges against the Fund for reimbursement of the expenses which he
or she incurs in administering the Fund. The amount of the assessments must be
transferred to an account within the State General Fund for use of the State
Treasurer in carrying out the provisions of this section.
9. At the end of each quarter of each
fiscal year, the State Treasurer shall:
(a) Compute the proportion of the total deposits
in the Fund which were attributable during the quarter to each local
government;
(b) Apply that proportion to the total amount of
interest received during the quarter on invested money of the Fund; and
(c) Pay to each participating local government or
reinvest upon its instructions its proportionate share of the interest, as
computed pursuant to paragraphs (a) and (b), less the proportionate amounts of
the assessments for the expenses of administration.
10. The State Treasurer may adopt
reasonable regulations to carry out the provisions of this section.
(Added to NRS by 1979, 701; A 1981, 342; 1989, 309; 1999, 926; 2008, 25th
Special Session, 5; 2009, 2125;
2011, 2174,
2175)
NRS 355.167 Local Government Pooled
Investment Fund: Creation; administration; permissible investments; permissible
loans; written request for withdrawal by local government; interest;
regulations. [Effective October 1, 2017.]
1. The Local Government Pooled Investment
Fund is hereby created as an agency fund to be administered by the State
Treasurer.
2. Any local government, as defined in NRS 354.474, may deposit its money with
the State Treasurer for credit to the Fund for purposes of investment.
3. The State Treasurer may invest the
money of the Fund:
(a) In securities which have been authorized as
investments for a local government by any provision of NRS or any special law.
(b) In time certificates of deposit in the manner
provided by NRS 356.015.
4. The State Treasurer may lend securities
in which he or she invests pursuant to subsection 3 or NRS
355.165 if the State Treasurer receives collateral from the borrower in the
form of cash or marketable securities that are:
(a) Acceptable to the State Treasurer; and
(b) At least 102 percent of the value of the
securities borrowed.
Ê The State
Treasurer may enter into such contracts as are necessary to extend and manage
loans pursuant to this subsection.
5. Each local government that elects to
deposit money with the State Treasurer for such an investment must:
(a) Upon the deposit, inform the State Treasurer
in writing how long a period the money is expected to be available for
investment.
(b) At the end of the period, notify the State
Treasurer in writing whether it wishes to extend the period.
6. If a local government wishes to
withdraw any of its money before the end of the period of investment, it must
make a written request to the State Treasurer. Whenever the State Treasurer is
required to sell or liquidate invested securities because of a request for
early withdrawal, any penalties or loss of interest incurred must be charged
against the deposit of the local government which requested the early
withdrawal.
7. All interest received on money of the
Fund must be deposited for credit to the Fund.
8. The State Treasurer may assess
reasonable charges against the Fund for reimbursement of the expenses which he
or she incurs in administering the Fund. The amount of the assessments must be
transferred to an account within the State General Fund for use of the State
Treasurer in carrying out the provisions of this section.
9. At the end of each quarter of each
fiscal year, the State Treasurer shall:
(a) Compute the proportion of the total deposits
in the Fund which were attributable during the quarter to each local
government;
(b) Apply that proportion to the total amount of
interest received during the quarter on invested money of the Fund; and
(c) Pay to each participating local government or
reinvest upon its instructions its proportionate share of the interest, as
computed pursuant to paragraphs (a) and (b), less the proportionate amounts of
the assessments for the expenses of administration.
10. The State Treasurer may adopt
reasonable regulations to carry out the provisions of this section.
(Added to NRS by 1979, 701; A 1981, 342; 1989, 309; 1999, 926; 2008, 25th
Special Session, 5; 2009, 2125;
2011, 2174,
2175,
effective October 1, 2017)
NRS 355.168 Pooling of money of local governments within county for
investment.
1. Except as otherwise provided in this
section or by statute or contract regarding money from a particular source, the
county treasurer of any county may pool, for purposes of investment, any money
held by him or her for local governments, as defined in NRS 354.474, which the county treasurer is
otherwise authorized by statute to invest.
2. Before pooling any money pursuant to
subsection 1, the county treasurer shall notify in writing each local
government whose money is to be included in the pool. The county treasurer may
pool the money of the various local governments notified unless he or she is
directed by a local government, within 15 days after receipt of the notice, to
invest all or a portion of its money separately from any money so pooled. The
notice must include a copy of the guidelines established by the county
treasurer pursuant to subsection 3 and must state the time within which the
local government must respond, as provided in this subsection.
3. The county treasurer must establish
written guidelines for the pooling of money for investments, including
provisions concerning:
(a) The method of allocating any income or loss
from any investments among the participating local governments;
(b) The procedures for notification of the county
treasurer by a local government of how long a period the money is expected to
be available for investment;
(c) Early withdrawals, of money invested through
the pool, by request of a participating local government, and the charging of
any penalties or loss of interest incurred because of the early withdrawal,
against the money of that local government; and
(d) The method by which a local government may
partially or completely terminate its participation in the pool.
(Added to NRS by 1985, 2109)
NRS 355.169 Legal action by county to recover investment; expenses.
1. If an investment of the money of a
county or other local government is made by the county treasurer, whether
separately or through a pooling arrangement as provided in NRS 355.168, the county may, on behalf of that local
government, take any lawful action necessary to recover the money invested if:
(a) The principal of and interest on any
investment is not received when due; or
(b) The corporation, bank, credit union, broker
or other person with whom the investment is made becomes insolvent or bankrupt
or is placed in receivership.
2. The expenses of any action taken
pursuant to this section must be paid from the money recovered and allocated
among the funds from which the investment is made in the same manner as any
loss on an investment is allocated. If the total amount of money recovered is
insufficient to pay those expenses, the excess amount is a charge against the county.
(Added to NRS by 1985, 2110; A 1999, 1481)
NRS 355.170 Authorized investments; disposition of interest.
1. Except as otherwise provided in this
section and NRS 354.750 and 355.171, the governing body of a local government may
purchase for investment the following securities and no others:
(a) Bonds and debentures of the United States,
the maturity dates of which do not extend more than 10 years after the date of
purchase.
(b) Farm loan bonds, consolidated farm loan
bonds, debentures, consolidated debentures and other obligations issued by
federal land banks and federal intermediate credit banks under the authority of
the Federal Farm Loan Act, formerly 12 U.S.C. §§ 636 to 1012, inclusive, and §§
1021 to 1129, inclusive, and the Farm Credit Act of 1971, 12 U.S.C. §§ 2001 to
2259, inclusive, and bonds, debentures, consolidated debentures and other obligations
issued by banks for cooperatives under the authority of the Farm Credit Act of
1933, formerly 12 U.S.C. §§ 1131 to 1138e, inclusive, and the Farm Credit Act
of 1971, 12 U.S.C. §§ 2001 to 2259, inclusive.
(c) Bills and notes of the United States
Treasury, the maturity date of which is not more than 10 years after the date
of purchase.
(d) Obligations of an agency or instrumentality
of the United States of America or a corporation sponsored by the government, the
maturity date of which is not more than 10 years after the date of purchase.
(e) Negotiable certificates of deposit issued by
commercial banks, insured credit unions or savings and loan associations.
(f) Securities which have been expressly
authorized as investments for local governments by any provision of Nevada
Revised Statutes or by any special law.
(g) Nonnegotiable certificates of deposit issued
by insured commercial banks, insured credit unions or insured savings and loan
associations, except certificates that are not within the limits of insurance
provided by an instrumentality of the United States, unless those certificates
are collateralized in the same manner as is required for uninsured deposits by
a county treasurer pursuant to NRS 356.133.
For the purposes of this paragraph, any reference in NRS 356.133 to a “county treasurer” or
“board of county commissioners” shall be deemed to refer to the appropriate
financial officer or governing body of the local government purchasing the
certificates.
(h) Subject to the limitations contained in NRS 355.177, negotiable notes medium-term obligations
issued by local governments of the State of Nevada pursuant to NRS 350.087 to 350.095, inclusive.
(i) Bankers’ acceptances of the kind and
maturities made eligible by law for rediscount with Federal Reserve Banks, and
generally accepted by banks or trust companies which are members of the Federal
Reserve System. Eligible bankers’ acceptances may not exceed 180 days’
maturity. Purchases of bankers’ acceptances may not exceed 20 percent of the
money available to a local government for investment as determined on the date
of purchase.
(j) Obligations of state and local governments
if:
(1) The interest on the obligation is
exempt from gross income for federal income tax purposes; and
(2) The obligation has been rated “A” or
higher by one or more nationally recognized bond credit rating agencies.
(k) Commercial paper issued by a corporation
organized and operating in the United States or by a depository institution
licensed by the United States or any state and operating in the United States
that:
(1) Is purchased from a registered
broker-dealer;
(2) At the time of purchase has a
remaining term to maturity of no more than 270 days; and
(3) Is rated by a nationally recognized
rating service as “A-1,” “P-1” or its equivalent, or better,
Ê except that
investments pursuant to this paragraph may not, in aggregate value, exceed 20
percent of the total portfolio as determined on the date of purchase, and if
the rating of an obligation is reduced to a level that does not meet the
requirements of this paragraph, it must be sold as soon as possible.
(l) Money market mutual funds which:
(1) Are registered with the Securities and
Exchange Commission;
(2) Are rated by a nationally recognized
rating service as “AAA” or its equivalent; and
(3) Invest only in:
(I) Securities issued by the Federal
Government or agencies of the Federal Government;
(II) Master notes, bank notes or
other short-term commercial paper rated by a nationally recognized rating
service as “A-1,” “P-1” or its equivalent, or better, issued by a corporation
organized and operating in the United States or by a depository institution
licensed by the United States or any state and operating in the United States;
or
(III) Repurchase agreements that are
fully collateralized by the obligations described in sub-subparagraphs (I) and
(II).
(m) Obligations of the Federal Agricultural
Mortgage Corporation.
2. Repurchase agreements are proper and
lawful investments of money of a governing body of a local government for the
purchase or sale of securities which are negotiable and of the types listed in
subsection 1 if made in accordance with the following conditions:
(a) The governing body of the local government
shall designate in advance and thereafter maintain a list of qualified
counterparties which:
(1) Regularly provide audited and, if
available, unaudited financial statements;
(2) The governing body of the local
government has determined to have adequate capitalization and earnings and
appropriate assets to be highly creditworthy; and
(3) Have executed a written master
repurchase agreement in a form satisfactory to the governing body of the local
government pursuant to which all repurchase agreements are entered into. The
master repurchase agreement must require the prompt delivery to the governing
body of the local government and the appointed custodian of written
confirmations of all transactions conducted thereunder, and must be developed
giving consideration to the Federal Bankruptcy Act.
(b) In all repurchase agreements:
(1) At or before the time money to pay the
purchase price is transferred, title to the purchased securities must be
recorded in the name of the appointed custodian, or the purchased securities
must be delivered with all appropriate, executed transfer instruments by
physical delivery to the custodian;
(2) The governing body of the local
government must enter a written contract with the custodian appointed pursuant
to subparagraph (1) which requires the custodian to:
(I) Disburse cash for repurchase
agreements only upon receipt of the underlying securities;
(II) Notify the governing body of
the local government when the securities are marked to the market if the
required margin on the agreement is not maintained;
(III) Hold the securities separate
from the assets of the custodian; and
(IV) Report periodically to the
governing body of the local government concerning the market value of the
securities;
(3) The market value of the purchased
securities must exceed 102 percent of the repurchase price to be paid by the
counterparty and the value of the purchased securities must be marked to the
market weekly;
(4) The date on which the securities are
to be repurchased must not be more than 90 days after the date of purchase; and
(5) The purchased securities must not have
a term to maturity at the time of purchase in excess of 10 years.
3. The securities described in paragraphs
(a), (b) and (c) of subsection 1 and the repurchase agreements described in
subsection 2 may be purchased when, in the opinion of the governing body of the
local government, there is sufficient money in any fund of the local government
to purchase those securities and the purchase will not result in the impairment
of the fund for the purposes for which it was created.
4. When the governing body of the local
government has determined that there is available money in any fund or funds
for the purchase of bonds as set out in subsection 1 or 2, those purchases may
be made and the bonds paid for out of any one or more of the funds, but the
bonds must be credited to the funds in the amounts purchased, and the money
received from the redemption of the bonds, as and when redeemed, must go back
into the fund or funds from which the purchase money was taken originally.
5. Any interest earned on money invested
pursuant to subsection 3, may, at the discretion of the governing body of the
local government, be credited to the fund from which the principal was taken or
to the general fund of the local government.
6. The governing body of a local
government may invest any money apportioned into funds and not invested
pursuant to subsection 3 and any money not apportioned into funds in bills and
notes of the United States Treasury, the maturity date of which is not more
than 1 year after the date of investment. These investments must be considered
as cash for accounting purposes, and all the interest earned on them must be
credited to the general fund of the local government.
7. This section does not authorize the
investment of money administered pursuant to a contract, debenture agreement or
grant in a manner not authorized by the terms of the contract, agreement or
grant.
8. As used in this section:
(a) “Counterparty” means a bank organized and
operating or licensed to operate in the United States pursuant to federal or
state law or a securities dealer which is:
(1) A registered broker-dealer;
(2) Designated by the Federal Reserve Bank
of New York as a “primary” dealer in United States government securities; and
(3) In full compliance with all applicable
capital requirements.
(b) “Local government” has the meaning ascribed
to it in NRS 354.474.
(c) “Repurchase agreement” means a purchase of
securities by the governing body of a local government from a counterparty
which commits to repurchase those securities or securities of the same issuer,
description, issue date and maturity on or before a specified date for a
specified price.
[1:95:1945; 1943 NCL § 1987.01] + [2:95:1945; 1943
NCL § 1987.02]—(NRS A 1959, 36, 424; 1967, 275; 1969, 1087; 1971, 270; 1973,
1091; 1975, 268; 1979,
448, 1887;
1985, 2110;
1989, 1260;
1991, 106, 341, 343; 1993, 211, 2286, 2289; 1995, 1823; 1999, 1481; 2001, 598, 2296, 2327; 2003, 162; 2003,
20th Special Session, 281)
NRS 355.171 Additional authorized investments for counties, cities and
school districts; exceptions.
1. Except as otherwise provided in this
section, a board of county commissioners, a board of trustees of a county
school district or the governing body of an incorporated city may purchase for
investment:
(a) Notes, bonds and other unconditional
obligations for the payment of money issued by corporations organized and
operating in the United States that:
(1) Are purchased from a registered
broker-dealer;
(2) At the time of purchase have a
remaining term to maturity of no more than 5 years; and
(3) Are rated by a nationally recognized
rating service as “A” or its equivalent, or better.
(b) Collateralized mortgage obligations that are
rated by a nationally recognized rating service as “AAA” or its equivalent.
(c) Asset-backed securities that are rated by a
nationally recognized rating service as “AAA” or its equivalent.
2. With respect to investments purchased
pursuant to paragraph (a) of subsection 1:
(a) Such investments must not, in aggregate
value, exceed 20 percent of the total portfolio as determined on the date of
purchase;
(b) Not more than 25 percent of such investments
may be in notes, bonds and other unconditional obligations issued by any one
corporation; and
(c) If the rating of an obligation is reduced to
a level that does not meet the requirements of that paragraph, the obligation
must be sold as soon as possible.
3. Subsections 1 and 2 do not:
(a) Apply to a:
(1) Board of county commissioners of a
county whose population is less than 100,000;
(2) Board of trustees of a county school
district in a county whose population is less than 100,000; or
(3) Governing body of an incorporated city
whose population is less than 150,000,
Ê unless the
purchase is effected by the State Treasurer pursuant to his or her investment
of a pool of money from local governments or by an investment adviser who is
registered with the Securities and Exchange Commission and approved by the
State Board of Finance.
(b) Authorize the investment of money
administered pursuant to a contract, debenture agreement or grant in a manner
not authorized by the terms of the contract, agreement or grant.
(Added to NRS by 2001, 597; A 2011, 1219)
NRS 355.172 Possession of securities purchased by or for local government;
security interest in lieu of possession.
1. Except as otherwise provided in NRS 355.178, any securities purchased as an investment
of money by or on behalf of a local government, as defined in NRS 354.474, must remain in the possession
of the county treasurer, the appropriate officer of that local government or a
qualified bank or trust, throughout the period of the investment, except that
any securities subject to repurchase by the seller may be evidenced by a fully
perfected, first-priority security interest, as provided in subsection 3.
2. The county treasurer or the appropriate
officer of a local government may physically possess those securities, which
must be registered in the name of the local government, or may make an
agreement, in writing, with any qualified bank or trust to hold those
securities for, and in the name of, that local government. If such an agreement
is made, the bank or trust shall furnish the county treasurer or the
appropriate officer of the local government with a written statement
acknowledging that it is so holding the securities.
3. If the securities purchased are subject
to an arrangement for the repurchase of those securities by the seller thereof,
the county treasurer, the appropriate officer of the local government or a
qualified bank or trust may, in lieu of the requirement of possession, obtain
the sole, fully perfected, first-priority security interest in those
securities. If the bank or trust obtains such a security interest, it shall
furnish the county treasurer or the appropriate officer of the local government
with a written statement acknowledging that fact. Any securities so purchased
must, at the time of purchase by or for a local government, have a fair market
value equal to or greater than the repurchase price of the securities.
4. For the purposes of this section, a
bank or trust is qualified to hold securities for a local government if the
bank or trust is rated by a nationally recognized rating service as “AA-” or
its equivalent, or better.
(Added to NRS by 1985, 2109; A 1987, 1306; 1999, 927; 2005, 1346)
NRS 355.175 Authority for investments; priority in case of conflicting
orders concerning same money; disposition of interest.
1. The governing body of any local
government or agency, whether or not it is included in the provisions of chapter 354 of NRS, may:
(a) Direct its treasurer or other appropriate
officer to invest its money or any part thereof in any investment which is
lawful for a local government pursuant to NRS 355.170;
or
(b) Allow a county treasurer to make such
investments through a pool as provided in NRS 355.168.
2. In case of conflict, any order made
pursuant to paragraph (a) of subsection 1 takes precedence over any other order
concerning the same money or funds pursuant to subsection 5 of NRS 355.170.
3. Any interest earned from investments
made pursuant to this section must be credited, at the discretion of the local
governing unit, to any fund under its control, but the designation of the fund
must be made at the time of investment of the principal.
(Added to NRS by 1967, 276; A 1985, 2112; 1993, 213, 2289; 2003,
20th Special Session, 284)
NRS 355.176 Investment of money held pursuant to deferred compensation plan. Any money held by a local government pursuant
to a deferred compensation plan may be invested in the types of investments set
forth in paragraphs (a) to (f), inclusive, of subsection 1 of NRS 355.170 and may additionally be invested in
corporate stocks, bonds and securities, mutual funds, savings and loan
accounts, credit union accounts, life insurance policies, annuities, mortgages,
deeds of trust or other security interests in real or personal property.
(Added to NRS by 1979, 801)—(Substituted
in revision for part of NRS 355.170)
NRS 355.177 Investment in own securities or interim warrants prohibited. No governing body of any local government or
agency, as defined in NRS 354.474, may
invest any of its moneys, or any part thereof, in:
1. Its own securities of any kind.
2. Interim warrants from any source.
(Added to NRS by 1969, 1087)
NRS 355.178 Loans from investment
portfolios of certain counties, cities or consolidated municipalities.
1. The governing body of a city whose
population is 220,000 or more or a county whose population is 100,000 or more
may lend securities from its investment portfolio if:
(a) The investment portfolio has a value of at
least $100,000,000;
(b) The treasurer of the city or county:
(1) Establishes a policy for investment
that includes provisions which set forth the procedures to be used to lend
securities pursuant to this section; and
(2) Submits the policy established
pursuant to subparagraph (1) to the city or county manager and prepares and
submits to the city or county manager a monthly report that sets forth the
securities that have been lent pursuant to this section and any other
information relating thereto, including, without limitation, the terms of each
agreement for the lending of those securities; and
(c) The governing body receives collateral from
the borrower in the form of cash or marketable securities that are:
(1) Authorized pursuant to NRS 355.170, if the collateral is in the form of
marketable securities; and
(2) At least 102 percent of the value of
the securities borrowed.
2. The governing body of a city or
consolidated municipality whose population is 25,000 or more but less than
220,000 may lend securities from its investment portfolio if:
(a) The investment portfolio has a value of at
least $50,000,000;
(b) The governing body is currently authorized to
lend securities pursuant to subsection 5;
(c) The treasurer of the city or consolidated
municipality:
(1) Establishes a policy for investment
that includes provisions which set forth the procedures to be used to lend
securities pursuant to this section; and
(2) Submits the policy established
pursuant to subparagraph (1) to the manager of the city, consolidated
municipality or other local government and prepares and submits to the manager
of the city, consolidated municipality or other local government a monthly
report that sets forth the securities that have been lent pursuant to this
section and any other information relating thereto, including, without
limitation, the terms of each agreement for the lending of those securities;
and
(d) The governing body receives collateral from
the borrower in the form of cash or marketable securities that are:
(1) Authorized pursuant to NRS 355.170, if the collateral is in the form of
marketable securities; and
(2) At least 102 percent of the value of
the securities borrowed.
3. The governing body of a city, county or
consolidated municipality may enter into such contracts as are necessary to
extend and manage loans pursuant to this section.
4. The total of investments made by a
particular city, county or consolidated municipality with collateral received
pursuant to subsection 1 or 2 must have an average weighted maturity of not
more than 90 days.
5. The governing body of a city or
consolidated municipality whose population is 25,000 or more but less than
220,000 shall not lend securities from its investment portfolio unless it has
been authorized to do so by the State Board of Finance. The State Board of
Finance shall adopt regulations that establish minimum standards for granting
authorization pursuant to this subsection. Such an authorization is valid for 2
years and may be renewed by the State Board of Finance for additional 2-year
periods.
6. As used in this section, “average
weighted maturity” means the average length of time until the securities in
which a particular city, county or consolidated municipality has invested with
collateral received pursuant to subsection 1 or 2 will mature or be redeemed by
their issuers, with the length of time of each individual security
proportionally weighted according to the total dollar amount that the
particular city, county or consolidated municipality has invested in that
individual security with collateral received pursuant to subsection 1 or 2.
(Added to NRS by 1999, 925; A 2001, 1979; 2003, 823; 2007, 2523; 2011, 1220)
INVESTMENT IN BONDS OF HOME OWNERS’ LOAN CORPORATION AND
FEDERAL HOME LOAN BANK; LOANS AND ADVANCES INSURED BY FEDERAL HOUSING
ADMINISTRATOR
NRS 355.180 Bonds of Home Owners’ Loan Corporation and Federal Home Loan
Bank are legal investments. It
shall be legal for this state and any of its departments or political
subdivisions, or any political or public corporation, or any instrumentality of
the State to invest their funds, or moneys in their custody, in the bonds of
the Home Owners’ Loan Corporation or in the bonds of any Federal Home Loan
Bank, or in consolidated Federal Home Loan Bank bonds, debentures or notes.
[Part 1:61:1935; 1931 NCL § 3695.01]
NRS 355.190 Loans and advances of credit by Federal Housing Administrator.
1. Subject to such regulations as may be
prescribed by the Federal Housing Administrator, the State of Nevada and any
city or county or instrumentality thereof are authorized:
(a) To make such loans and advances of credit,
and purchases of obligations representing the loans and advances of credit, as
are eligible for insurance by the Federal Housing Administrator, and to obtain
such insurance.
(b) To make such loans secured by mortgage on
real property as are eligible for insurance by the Federal Housing
Administrator, and to obtain such insurance.
(c) To purchase, invest in, and dispose of notes
or bonds secured by mortgage insured by the Federal Housing Administrator,
securities of national mortgage associations, and debentures issued by the
Federal Housing Administrator.
2. No law of this state prescribing the
nature, amount or form of security or requiring security upon which loans or
advances of credit may be made, or prescribing or limiting interest rates upon
loans or advances of credit, or prescribing or limiting the period for which
loans or advances of credit may be made, shall apply to loans, advances of
credit or purchases made pursuant to subsection 1.
3. All loans, advances of credit, and
purchases of obligations described in this section heretofore made and insured
pursuant to the terms of the National Housing Act are hereby validated and
confirmed.
[Part 1:58:1935; A 1937, 147; 1939, 43; 1931 NCL §
3652.01] + [Part 2:58:1935; 1931 NCL § 3652.02] + [3:58:1935; 1931 NCL §
3652.03]
NRS 355.200 Depositary bonds.
1. Whenever by the terms of any general or
special law depositaries of public or other funds are required by law to give
security therefor, the bonds of any Federal Home Loan Bank or the bonds of the
Home Owners’ Loan Corporation, or consolidated Federal Home Loan Bank bonds,
debentures or notes may be used as security for any depositary bonds or
obligations wherein any kind of bonds or other security are required or may by
law be deposited as security.
2. Whenever collateral must or may be
furnished by any depositary of the State of Nevada as security for the deposit
of any funds whatever, or whenever collateral must or may be deposited with any
official of the State of Nevada pursuant to any statute of this state, notes and
bonds insured and debentures issued by the Federal Housing Administrator and
obligations of national mortgage associations shall be considered eligible
collateral for such purposes.
[4:58:1935; added 1937, 147; A 1939, 43; 1931 NCL §
3652.03a] + [2:61:1935; 1931 NCL § 3695.02]
INVESTMENT OF MONEY DEPOSITED IN COURT
NRS 355.210 Conditions and requirements for investment.
1. Except as otherwise provided in
subsection 2, when any money has been deposited in any court pursuant to law or
rule of court, and when in the judgment of the clerk of the court, or the judge
thereof if there is no clerk, payment out of the deposit will not be required
for 90 days or more, the clerk or the judge, as the case may be, may invest the
money so deposited, either alone or by commingling it with other money
deposited.
2. If money has been deposited in any
court pursuant to chapter 37 of NRS, the
money must be kept in a separate account and invested.
3. The investment may be made:
(a) By deposit at interest in a state or national
bank or credit union in the State of Nevada; or
(b) In bills, bonds, debentures, notes or other
securities whose purchase by a board of county commissioners is authorized by NRS 355.170.
4. Except as otherwise provided in NRS 37.280, the interest earned from any
investment of money pursuant to this section must be deposited to the credit of
the general fund of the political subdivision or municipality which supports
the court.
5. The requirements of this section may be
modified by an ordinance adopted pursuant to the provisions of NRS 244.207, except the requirements of
subsection 2.
(Added to NRS by 1971, 657; A 1973, 1684; 1999, 1485; 2007, 752)
INVESTMENT OF MONEY FOR PROVISION OF RETIREMENT BENEFITS
NRS 355.220 Retirement Benefits Investment Board: Creation; membership;
powers and duties.
1. The Retirement Benefits Investment
Board is hereby created. The membership of the Board consists of the members of
the Public Employees’ Retirement Board, who shall serve in that capacity ex
officio and without any additional compensation.
2. The Board shall establish and
administer a fund to be known as the Retirement Benefits Investment Fund for
the investment of money deposited with the Board pursuant to subsection 6 or NRS 287.017. Any money received by the
Board pursuant to subsection 6 or NRS
287.017 shall be deemed to be held for investment purposes only and not in
any fiduciary capacity. Any money in the Fund must be invested in the same
manner as money in the Public Employees’ Retirement Fund is invested. The
interest and income earned on the money in the Fund, after deducting any
applicable charges, must be credited to the Fund.
3. Money in the Fund may be transferred to
the State Retirees’ Health and Welfare Benefits Fund created by NRS 287.0436 to be used for the purposes
specified in NRS 287.0436.
4. The Board may assess reasonable charges
against the Fund for the payment of its expenses in administering the Fund.
Except as otherwise provided in subsection 3, no other money may be withdrawn
from the Fund except as directed by the board responsible for that money
pursuant to subsection 6 or NRS 287.017,
as applicable.
5. Except as otherwise provided in this
section, the Board has the same powers and duties in carrying out the
provisions of this section as those pertaining to the administration of the
Public Employees’ Retirement Fund by the Public Employees’ Retirement Board.
The Retirement Benefits Investment Board may employ such staff and contract for
the provision of such management, investment and other services, including,
without limitation, the services of accountants, actuaries, attorneys and
investment managers, as are necessary for the administration of the Fund and to
carry out the provisions of this section.
6. Notwithstanding any other provision of
law, the Board of the Public Employees’ Benefits Program may deposit any of the
assets of the Public Employees’ Benefits Program in the Fund for purposes of
investment if it obtains an opinion from its legal counsel that the investment
of those assets in accordance with this section will not violate any of the
provisions of Sections 9 and 10 of Article
8 of the Nevada Constitution.
7. As used in this section, unless the
context otherwise requires:
(a) “Board” means the Retirement Benefits
Investment Board created pursuant to this section.
(b) “Fund” means the Retirement Benefits
Investment Fund created pursuant to this section.
(Added to NRS by 2007, 903; A 2010, 26th
Special Session, 12)
INVESTMENT IN CORPORATION FOR PUBLIC BENEFIT THAT PROVIDES
PRIVATE EQUITY FUNDING FOR CERTAIN BUSINESSES
NRS 355.250 Definitions. As
used in NRS 355.250 to 355.285,
inclusive, unless the context otherwise requires, the words and terms defined
in NRS 355.255, 355.260
and 355.265 have the meanings ascribed to them in
those sections.
(Added to NRS by 2011, 2581)
NRS 355.255 “Corporation for public benefit” defined. “Corporation for public benefit” means a
corporation that is recognized as exempt pursuant to section 501(c)(3) of the
Internal Revenue Code of 1986, future amendments to that section and the
corresponding provisions of future internal revenue laws.
(Added to NRS by 2011, 2581)
NRS 355.260 “Private equity funding” defined. “Private
equity funding” means an investment in or a purchase of securities in operating
businesses that are not publicly traded on a stock exchange.
(Added to NRS by 2011, 2581)
NRS 355.265 “Venture capital” defined. “Venture
capital” means equity, near-equity and seed capital financing, including,
without limitation, early stage research and development capital for start-up
enterprises, and other equity, near-equity or seed capital for growth and
expansion of entrepreneurial enterprises.
(Added to NRS by 2011, 2581)
NRS 355.270 Corporation for public benefit: Formation and purpose;
composition, chair, compensation and duties of board of directors.
1. The State Treasurer shall cause to be
formed in this State an independent corporation for public benefit, the general
purpose of which is to act as a limited partner of limited partnerships or a
shareholder or member of limited-liability companies that provide private
equity funding to businesses:
(a) Located in this State or seeking to locate in
this State; and
(b) Engaged primarily in one or more of the
following industries:
(1) Health care and life sciences.
(2) Cyber security.
(3) Homeland security and defense.
(4) Alternative energy.
(5) Advanced materials and manufacturing.
(6) Information technology.
(7) Any other industry that the board of
directors of the corporation for public benefit determines will likely meet the
targets for investment returns established by the corporation for public
benefit for investments authorized by NRS 355.250
to 355.285, inclusive, and comply with sound
fiduciary principles.
2. The corporation for public benefit
created pursuant to subsection 1 must have a board of directors consisting of:
(a) Five members from the private sector who have
at least 10 years of experience in the field of investment, finance or banking
and who are appointed for a term of 4 years as follows:
(1) One member appointed by the Governor;
(2) One member appointed by the Senate
Majority Leader;
(3) One member appointed by the Speaker of
the Assembly;
(4) One member appointed by the Senate
Minority Leader; and
(5) One member appointed by the Assembly
Minority Leader;
(b) The Chancellor of the Nevada System of Higher
Education or his or her designee;
(c) The State Treasurer; and
(d) With the approval of a majority of the
members of the board of directors described in subparagraphs (1), (2) and (3)
of paragraph (a), up to 5 additional members who are direct investors in the
corporation for public benefit.
3. Vacancies in the appointed positions on
the board of directors of the corporation for public benefit created pursuant
to subsection 1 must be filled by the appointing authority for the unexpired
term.
4. The State Treasurer shall serve as
chair of the board of directors of the corporation for public benefit created
pursuant to subsection 1.
5. The members of the board of directors
of the corporation for public benefit must serve without compensation but are
entitled to be reimbursed for actual and necessary expenses incurred in the
performance of their duties, including, without limitation, travel expenses.
6. A member of the board of directors of
the corporation for public benefit created pursuant to subsection 1 must not
have an equity interest in any:
(a) External asset manager or venture capital or
private equity investment firm contracting with the board pursuant to NRS 355.275; or
(b) Business which receives private equity
funding pursuant to NRS 355.250 to 355.285, inclusive.
7. The board of directors of the
corporation for public benefit created pursuant to subsection 1 shall:
(a) Comply with the provisions of chapter 281A of NRS.
(b) Meet at least quarterly and conduct any
meetings of the board of directors in accordance with chapter 241 of NRS.
(c) Review the performance of all external asset
managers and venture capital and private equity investment firms contracting
with the corporation for public benefit pursuant to NRS
355.275.
(d) On or before December 1 of each year, provide
an annual report to the Governor and the Director of the Legislative Counsel
Bureau for transmission to the next session of the Legislature, if the report
is submitted in an even-numbered year or to the Legislative Commission, if the
report is submitted in an odd-numbered year. The report must include, without
limitation:
(1) An accounting of all money received
and expended by the corporation for public benefit, including, without
limitation, any matching grant funds, gifts or donations; and
(2) The name and a brief description of
all businesses receiving an investment of money pursuant to the provisions of NRS 355.250 to 355.285,
inclusive.
(Added to NRS by 2011, 2581)
NRS 355.275 Corporation for public benefit: Placement of investments; use of
money received from State Permanent School Fund.
1. The corporation for public benefit may
place investments through the use or assistance of:
(a) External asset managers; or
(b) Private equity investment firms.
2. Money received pursuant to NRS 355.280 by the corporation for public benefit may
be used to make venture capital investments.
(Added to NRS by 2011, 2582)
NRS 355.280 Transfer of money from State Permanent School Fund to
corporation for public benefit: Prerequisites; maximum amount. If the State Treasurer obtains the judicial
determination required by subsection 3 of NRS 355.060,
the State Treasurer may transfer an amount not to exceed $50 million from the
State Permanent School Fund to the corporation for public benefit. Such a
transfer must be made pursuant to an agreement that requires the corporation
for public benefit to:
1. Provide, through the limited
partnerships or limited-liability companies described in subsection 1 of NRS 355.270, private equity funding; and
2. Ensure that at least 70 percent of all
private equity funding provided by the corporation for public benefit is
provided to businesses:
(a) Located in this State or seeking to locate in
this State; and
(b) Engaged primarily in one or more of the
following industries:
(1) Health care and life sciences.
(2) Cyber security.
(3) Homeland security and defense.
(4) Alternative energy.
(5) Advanced materials and manufacturing.
(6) Information technology.
(7) Any other industry that the board of
directors of the corporation for public benefit determines will likely meet the
targets for investment returns established by the corporation for public
benefit for investments authorized by NRS 355.250
to 355.285, inclusive, and comply with sound
fiduciary principles.
(Added to NRS by 2011, 2582)
NRS 355.285 State Treasurer: Powers and duties. The
State Treasurer:
1. May adopt such regulations as he or she
deems necessary to carry out the provisions of NRS
355.250 to 355.285, inclusive.
2. Shall adopt regulations:
(a) Requiring the performance of audits and the
submission of reports to ensure compliance with the provisions of NRS 355.250 to 355.285,
inclusive, and the regulations adopted pursuant to this section;
(b) Providing for appropriate leveraging of
investments to ensure that investments consist of money transferred from the
State Permanent School Fund pursuant to NRS 355.280
and money from private sources;
(c) Establishing a range or cap on servicing
fees;
(d) Establishing limits on the amount or
percentage of investment in a single venture capital project or by a fund
manager; and
(e) Requiring the return of the corpus of
investments after a defined investment period.
3. May adopt regulations which include,
without limitation, criteria for determining eligibility for and use of private
equity funding, but the corporation for public benefit must have sole authority
for the approval of applications for and the management of private equity
funding provided pursuant to NRS 355.250 to 355.285, inclusive.
4. May, by regulation, establish a
Business Leadership Council. The members of the Business Leadership Council
must serve without compensation and are subject to the provisions of chapter 281A of NRS.
5. Shall provide the corporation for
public benefit with such assistance as is necessary to carry out the provisions
of NRS 355.250 to 355.285,
inclusive, and comply with the regulations adopted pursuant to this section.
6. Shall ensure that businesses receiving
venture capital investments pursuant to NRS 355.250
to 355.285, inclusive, have a presence in this
State as evidenced by:
(a) Being domiciled in this State;
(b) Having a headquarters in this State;
(c) Having a significant percentage of employees
residing in this State; or
(d) Being in the process of expanding in this
State or relocating to this State.
(Added to NRS by 2011, 2583)
