H1296B1889A03136 BIL:CMD 07/21/15 #90 A03136
AMENDMENTS TO HOUSE BILL NO. 1296
Sponsor: REPRESENTATIVE FREEMAN
Printer's No. 1889
Amend Bill, page 1, line 13, by striking out "a section" and
inserting
sections
Amend Bill, page 1, line 15, by inserting after "a"
local government investment trust or local government
investment pool may, on behalf of a
Amend Bill, page 1, line 16, by striking out "may" and
inserting a comma
Amend Bill, page 5, by inserting between lines 16 and 17
Section 1.2. (a) In addition to products otherwise
authorized by law, a public corporation or municipal authority
may invest and reinvest money of the public corporation or
municipal authority in any of the following financial products:
(1) Negotiable certificates of deposit or other evidences of
deposit, with a remaining maturity of three years or less,
issued by a nationally or State-chartered bank, a Federal or
State savings and loan association or a State-licensed branch of
a foreign bank. For obligations with a maturity of one year or
less, the debt obligations of the issuing institution or its
parent must be rated in the top short-term rating category by at
least two nationally recognized statistical ratings
organizations. For obligations with a maturity in excess of one
year, the senior debt obligations of the issuing institution or
its parent must be rated at least "A" or its equivalent by at
least two nationally recognized statistical ratings
organizations.
(2) Demand deposits placed in accordance with the following
conditions:
(i) The money is initially deposited and invested through a
federally insured institution having a place of business in the
Commonwealth, which is selected by the public corporation or
municipal authority.
(ii) The selected institution arranges for the redeposit of
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the money in deposits in one or more financial institutions
insured by the Federal Deposit Insurance Corporation, for the
account of the public corporation or municipal authority.
(iii) The full amount of principal and any accrued interest
of each such deposit is insured by the Federal Deposit Insurance
Corporation.
(iv) On the same date that the money is redeposited pursuant
to paragraph (ii), the selected institution receives an amount
of deposits from customers of other financial institutions equal
to or greater than the amount of money initially invested
through the selected institution by the public corporation or
municipal authority.
(3) Obligations, participations or other instruments of any
Federal agency, instrumentality or United States government-
sponsored enterprise, including those issued or fully guaranteed
as the principal and interest by Federal agencies,
instrumentalities or United States government-sponsored
enterprises, if the debt obligations are rated at least "A" or
its equivalent by at least two nationally recognized statistical
ratings organizations.
(4) Repurchase agreements with respect to United States
Treasury bills or obligations, participations or other
instruments of or guaranteed by the United States or any Federal
agency, instrumentality or United States government-sponsored
enterprise.
(b) Nothing in subsection (a) shall be construed to
supersede or preempt other investment powers of public
corporations or municipal authorities as authorized by law.
(c) As used in this section, the term "public corporation"
shall have the same meaning as given to it in section 1 of the
act of May 16, 1929 (P.L.1773, No.581), entitled, "An act to
supplement an act approved the twentieth day of April, one
thousand eight hundred and seventy-four (Pamphlet Laws, sixty-
five), entitled 'An act to regulate the manner of increasing the
indebtedness of municipalities; to provide for the redemption of
the same; and to impose penalties for illegal increase thereof,'
by authorizing the sale of property purchased by a public
corporation out of funds provided by increase of indebtedness of
such corporation; and providing for the disposition of the funds
realized from such sale."
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