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§ 11. Temporary investments. 1. For purposes of this section, the
terms "local government", "bank" and "trust company" shall have the same
meanings as in section ten of this article.

2. The governing board of any local government or, if the governing
board so delegates, the chief fiscal officer or other officer having
custody of the moneys may temporarily invest moneys not required for
immediate expenditure, except moneys the investment of which is
otherwise provided for by law, in special time deposit accounts in, or
certificates of deposit issued by, a bank or trust company located and
authorized to do business in this state, provided however, that such
time deposit account or certificate of deposit shall be payable within
such time as the proceeds shall be needed to meet expenditures for which
such moneys were obtained and provided further that such time deposit
account or certificate of deposit be secured in the same manner as is
provided for securing deposits of public funds by subdivision three of
section ten of this article.

* 3. a. Investments pursuant to this section may also be made in the
following:
(1) obligations of the United States of America or in obligations
guaranteed by agencies of the United States of America where the payment
of principal and interest are guaranteed by the United States of America
or in obligations of the state of New York, or with the approval of the
state comptroller in obligations issued pursuant to section 24.00 or
25.00 of the local finance law by any municipality, school district or
district corporation other than the municipality, school district or
district corporation investing such moneys pursuant to this paragraph.
In addition, moneys in any reserve fund established pursuant to section
six-c, six-d, six-e, six-f, six-g, six-h, six-j, six-k, six-l, six-m or
six-n of this article may be invested in obligations of the
municipality, school district, fire district or district corporation
which has established the reserve fund, or in the case of a capital
reserve fund established for a town or county improvement district,
obligations of the town or county issued for the purposes of such
district.
(2) notwithstanding any other provision of general, special or local
law, any city having a population of one million or more may also make
investments in the following:
(i) general obligation bonds and notes of any state other than this
state, provided that such bonds and notes receive the highest rating of
at least one independent rating agency designated by the state
comptroller;
(ii) obligations of any corporation organized under the laws of any
state in the United States maturing within two hundred seventy days,
provided that such obligations receive the highest rating of two
independent rating services designated by the state comptroller and that
the issuer of such obligations has maintained such ratings on similar
obligations during the preceding six months, provided, however, that the
issuer of such obligations need not have received such rating during the
prior six month period if such issuer has received the highest rating of
two independent rating services designated by the state comptroller and
is the successor or wholly owned subsidiary of an issuer that has
maintained such ratings on similar obligations during the preceding six
month period or if the issuer is the product of a merger of two or more
issuers, one of which has maintained such ratings on similar obligations
during the preceding six month period, provided, however, that no more
than two hundred fifty million dollars may be invested in such
obligations of any one corporation; or
(iii) bankers' acceptances maturing within two hundred seventy days
which are eligible for purchase in the open market by federal reserve
banks and which have been accepted by a bank or trust company which is
organized under the laws of the United States or of any state thereof
and which is a member of the federal reserve system and whose short-term
obligations meet the criteria outlined in clause (ii) of this
subparagraph. Provided, however, that no more than two hundred fifty
million dollars may be invested in such bankers' acceptances of any one
bank or trust company; or
(iv) obligations of, or instruments issued by or fully guaranteed as
to principal and interest by, any agency or instrumentality of the
United States acting pursuant to a grant of authority from the congress
of the United States, including but not limited to, any federal home
loan bank or banks, the Tennessee valley authority, the federal national
mortgage association, the federal home loan mortgage corporation and the
United States postal service, provided, however, that no more than two
hundred fifty million dollars may be invested in such obligations of any
one agency.
(v) no-load money market mutual funds registered under the Securities
Act of 1933, as amended, and operated in accordance with Rule 2a-7 of
the Investment Company Act of 1940, as amended, provided that such funds
are limited to investments in obligations issued or guaranteed by the
United States of America or in obligations of agencies or
instrumentalities of the United States of America where the payment of
principal and interest are guaranteed by the United States of America
(including contracts for the sale and repurchase of any such
obligations), and are rated in the highest rating category by at least
one nationally recognized statistical rating organization, provided,
however, that no more than two hundred fifty million dollars may be
invested in such funds.
b. All investments made pursuant to this subdivision shall be subject
to the following conditions:
(1) Such obligations shall be payable or redeemable at the option of
the owner within such times as the proceeds will be needed to meet
expenditures for purposes for which the moneys were provided and, in the
case of obligations purchased with the proceeds of bonds or notes, shall
be payable or redeemable in any event, at the option of the owner,
within two years of the date of purchase. Obligations that are purchased
pursuant to a repurchase agreement shall be deemed to be payable or
redeemable for purposes of this paragraph on the date on which the
purchased obligations are scheduled to be repurchased by the seller
thereof. Any obligation that provides for the adjustment of its interest
rate on set dates shall be deemed to be payable or redeemable for
purposes of this paragraph on the date on which the principal amount can
be recovered through demand by the holder thereof.
(2) Such obligations, unless registered or inscribed in the name of
the local government, shall be purchased through, delivered to and held
in the custody of a bank or trust company or, with respect to the city
of New York, a reputable dealer in such obligations as shall be
designated by the state comptroller, in this state. Such obligations
shall be purchased, sold or presented for redemption or payment by such
bank or trust company or dealer in obligations only in accordance with
prior written authorization from the officer authorized to make the
investment. All such transactions shall be confirmed in writing to the
local government by the bank or trust company. All obligations held in
the custody of a bank or trust company pursuant to this paragraph shall
be held by such bank or trust company pursuant to a written custodial
agreement as set forth in paragraph a of subdivision three of section
ten of this article.

* NB Effective until July 1, 2008

* 3. Investments pursuant to this section may also be made in
obligations of the United States of America or in obligations guaranteed
by agencies of the United States of America where the payment of
principal and interest are guaranteed by the United States of America or
in obligations of the state of New York,. In addition, moneys in any
reserve fund established pursuant to section six-c, six-d, six-e, six-f,
six-g, six-h, six-j, six-k, six-l, six-m or six-n of this article may be
invested in obligations of the municipality, school district, fire
district or district corporation which has established the reserve fund,
or in the case of a capital reserve fund established for a town or
county improvement district, obligations of the town or county issued
for the purposes of such district.
All investments made pursuant to this subdivision shall be subject to
the following conditions:
a. Such obligations shall be payable or redeemable at the option of
the owner within such times as the proceeds will be needed to meet
expenditures for purposes for which the moneys were provided and, in the
case of obligations purchased with the proceeds of bonds or notes, shall
be payable or redeemable in any event, at the option of the owner,
within two years of the date of purchase. Obligations that are purchased
pursuant to a repurchase agreement shall be deemed to be payable or
redeemable for purposes of this paragraph on the date on which the
purchased obligations are scheduled to be repurchased by the seller
thereof. Any obligation that provides for the adjustment of its interest
rate on set dates shall be deemed to be payable or redeemable for
purposes of this paragraph on the date on which the principal amount can
be recovered through demand by the holder thereof.
b. Such obligations, unless registered or inscribed in the name of the
local government, shall be purchased through, delivered to and held in
the custody of a bank or trust company or, with respect to the city of
New York, a reputable dealer in such obligations as shall be designated
by the state comptroller, in this state. Such obligations shall be
purchased, sold or presented for redemption or payment by such bank or
trust company or dealer in obligations only in accordance with prior
written authorization from the officer authorized to make the
investment. All such transactions shall be confirmed in writing to the
local government by the bank or trust company. All obligations held in
the custody of a bank or trust company pursuant to this paragraph shall
be held by such bank or trust company pursuant to a written custodial
agreement as set forth in paragraph a of subdivision three of section
ten of this article.

* NB Effective July 1, 2008

4. Notwithstanding any other provision of law, the governing board of
a local government may authorize the aforementioned officers to turn
over the physical custody and safekeeping of the evidences of the
investments made pursuant to this section to (a) any bank or trust
company incorporated in this state, or (b) any national bank located in
this state, or (c) any private banker duly authorized by the
superintendent of banks of this state to engage in business here. All
such private bankers shall, as private bankers, maintain a permanent
capital of not less than one million dollars in this state. The said
officers may direct such bank, trust company or private banker to
register and hold any such evidences of investments in its custody, in
the name of its nominee. Such officers may deposit or authorize such
bank, trust company or private banker, to deposit, or arrange for the
deposit of any such evidences of investments with a federal reserve bank
or other book-entry transfer system operated by a federally regulated
entity to be credited to an account as to which the ownership of, and
other interests in, such evidences of investments may be transferred by
entries on the books of such federal reserve bank or other book-entry
transfer system operated by a federally regulated entity without
physical delivery of any such evidences of investments. The records of
any such bank, trust company or private banker shall show, at all times,
the ownership of such evidences of investments, and they shall, when
held in the possession of such bank, trust company or private banker be,
at all times, kept separate from the assets of such bank, trust company
or private banker. All evidences of investments delivered to a bank,
trust company, or private banker pursuant to this subdivision shall be
held by such bank, trust company or private banker pursuant to a written
custodial agreement as set forth in paragraph a of subdivision three of
section ten of this article. When any such evidences of investments are
so registered in the name of a nominee, such bank, trust company or
private banker shall be absolutely liable for any loss occasioned by the
acts of such nominee with respect to such evidences of investments.

5. A county clerk may invest any money collected on behalf of the
state until such time as the money is required to be remitted to the
state. The county clerk shall invest the state money only in those
investments authorized by this section and payable within such time as
the proceeds shall be required to be remitted to the state. Any interest
that accrues on moneys invested pursuant to this subdivision shall be
payable in equal shares to the state and to the county provided,
however, that any fees or service charges associated with the investment
shall be paid from such interest.

6. Except as may otherwise be provided in a contract with bond or note
holders, any moneys of a political subdivision authorized to be invested
pursuant to this section may be commingled for investment purposes;
provided, however, that any investment of commingled moneys shall be
payable or redeemable at the option of the owner within such time as the
proceeds shall be needed to meet expenditures for which such moneys were
obtained or as otherwise specifically provided in this section. The
separate identity of the sources of such funds shall at all times be
maintained and income received on moneys commingled for the purpose of
investment shall be credited on a pro rata basis to the fund or account
from which the moneys were invested.

7. The chief fiscal officer of each local government shall maintain or
cause to be maintained a proper record of all books, notes, securities
or other evidences of indebtedness held by or for such subdivision for
the purpose of investment. Such record shall at least identify the
security, the fund for which held, the place where kept and entries
shall be made therein showing date of sale or other disposition and the
amount realized therefrom.

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