NORTH CAROLINA GENERAL ASSEMBLY

1975 SESSION

 

 

CHAPTER 482

SENATE BILL 673

 

 

AN ACT TO AMEND G.S. 147-69.1 IN ORDER TO ALLOW STATE GOVERNMENT OFFICIALS TO INVEST IDLE FUNDS IN CERTIFICATES, SHARES, OR DEPOSITS IN SAVINGS AND LOAN ASSOCIATIONS.

 

The General Assembly of North Carolina enacts:

 

Section 1.  The first paragraph of G.S. 147-69.1 is repealed and a new paragraph substituted for it to read as follows:

"It shall be the duty of the State Treasurer, with assistance of the Director of the Budget, on or before the tenth day of each calendar month, and upon request of the Governor or the Council of State at any other time, to carefully analyze the amount of cash in the General Fund and in all special funds credited to any special purpose designated by the General Assembly or held to meet the budgets or appropriations for maintenance and permanent improvements of the several institutions, boards, departments, commissions, agencies, persons or corporations of the State. Upon the completion of this analysis the State Treasurer shall determine when in his opinion, the cash in any such funds is in excess of the amount required to meet the current needs and demands on such funds, and report his findings to the Governor and the Council of State. The Governor and the State Treasurer, acting jointly, with the approval of the Council of State, are hereby authorized to invest such excess funds:

(1)        In bonds, notes, certificates of indebtedness and bills of the United States of America or in obligations which are fully guaranteed by the United States of America; or

(2)        In bonds, notes and other obligations of the Federal Intermediate Credit Banks, the Federal Home Loan Banks, the Federal National Mortgage Association, Banks for Cooperatives, and the Federal Land Banks; or

(3)        In bonds and notes of the State of North Carolina; or

(4)        In certificates of deposit issued by banks or official depositories within the State of North Carolina, yielding a return at rates not less than those available on United States treasury bonds, notes, certificates of indebtedness or bills of comparable maturities; or

(5)        In savings certificates, investment certificates, shares of or deposits in any savings and loan association organized under the laws of this State and savings certificates, investment certificates, shares of or deposits in any federal savings and loan association having its principal office in this State, to the extent that the investment in such certificates, shares or deposits is fully insured by the United States of America or an agency thereof or by any mutual deposit guaranty association authorized by the Administrator of the Savings and Loan Division of the State to do business in North Carolina pursuant to Article 7A of Chapter 54 of the General Statutes, so long as those certificates, shares or deposits yield a return at rates not less than those available on United States treasury bonds, notes, certificates of indebtedness, or bills of comparable maturities.

Notwithstanding the above, if such rates on United States treasury bonds, notes, certificates of indebtedness or bills of comparable maturity are higher than the rates banks or savings and loan associations are permitted to pay by federal or State statutes or regulations and if in the judgment of the Governor and the Council of State it would benefit the economy of the State, such excess funds may be invested in certificates of deposit issued by banks or official depositories within the State of North Carolina at the maximum rate that banks are permitted to pay by federal or State statutes or regulations, or such excess funds may be invested in savings certificates, investment certificates, shares of or deposits in savings and loan associations in the State of North Carolina at the maximum rate that savings and loan associations are permitted to pay by federal or State statutes or regulations. The said funds shall be invested so that in the judgment of the Governor and the State Treasurer they may be readily converted into money at such time as the money will be needed. The interest received on all such deposits and the income from such investments, unless otherwise required by law, shall be paid into the State's General Fund; provided, however, that on and after July 1, 1961, all interest accruing on the monthly balance of the Highway Fund shall be paid to the State Highway Fund."

Sec. 2.  This act shall become effective upon ratification.

In the General Assembly read three times and ratified, this the 4th day of June, 1975.