Assets: (1) The property comprising the estate of a deceased person, or (2) the property in a trust account.
Certified dealer: means :
(a)
a primary reporting dealer recognized by the Federal Reserve Bank of New York who is certified by the director as having met the applicable criteria of council rule; or
(b)
a broker dealer who:
(i)
has and maintains an office and a resident registered principal in the state;
(ii)
meets the capital requirements established by council rules;
(iii)
meets the requirements for good standing established by council rule; and
(iv)
is certified by the director as meeting quality criteria established by council rule. See Utah Code 51-7-3
Certified investment adviser: means a federal covered adviser, as defined in Section 61-1-13, or an investment adviser, as defined in Section 61-1-13, who is certified by the director as having met the applicable criteria of council rule. See Utah Code 51-7-3
City: includes , depending on population, a metro township as defined in Section 10-3c-102. See Utah Code 68-3-12.5
Corporation: A legal entity owned by the holders of shares of stock that have been issued, and that can own, receive, and transfer property, and carry on business in its own name.
Escrow: Money given to a third party to be held for payment until certain conditions are met.
Evidence: Information presented in testimony or in documents that is used to persuade the fact finder (judge or jury) to decide the case for one side or the other.
Hard put: means an unconditional sell-back provision or a redemption provision applicable at issue to a note or bond, allowing holders to sell their holdings back to the issuer or to an equal or higher-rated third party provider at specific intervals and specific prices determined at the time of issuance. See Utah Code 51-7-3
Irrevocable trust: A trust arrangement that cannot be revoked, rescinded, or repealed by the grantor.
Money market mutual fund: means an open-end managed investment fund:
(a)
that complies with the diversification, quality, and maturity requirements of Rule 2a-7 or any successor rule of the Securities and Exchange Commission applicable to money market mutual funds; and
(b)
that assesses no sales load on the purchase of shares and no contingent deferred sales charge or other similar charges, however designated. See Utah Code 51-7-3
Mortgage: The written agreement pledging property to a creditor as collateral for a loan.
Obligation: An order placed, contract awarded, service received, or similar transaction during a given period that will require payments during the same or a future period.
Permitted depository: means any out-of-state financial institution that meets quality criteria established by rule of the council. See Utah Code 51-7-3
Public funds: means money, funds, and accounts, regardless of the source from which the money, funds, and accounts are derived, that are owned, held, or administered by the state or any of its boards, commissions, institutions, departments, divisions, agencies, bureaus, laboratories, or other similar instrumentalities, or any county, city, school district, political subdivision, or other public body. See Utah Code 51-7-3
Public treasurer: includes the state treasurer and the official of any state board, commission, institution, department, division, agency, or other similar instrumentality, or of any county, city, school district, charter school, political subdivision, or other public body who has the responsibility for the safekeeping and investment of any public funds. See Utah Code 51-7-3
Qualified depository: means a Utah depository institution or an out-of-state depository institution, as those terms are defined in Section 7-1-103, that is authorized to conduct business in this state under Section 7-1-702 or Title 7, Chapter 19, Acquisition of Failing Depository Institutions or Holding Companies, whose deposits are insured by an agency of the federal government and that has been certified by the commissioner of financial institutions as having met the requirements established under this chapter and the rules of the council to be eligible to receive deposits of public funds. See Utah Code 51-7-3
State: when applied to the different parts of the United States, includes a state, district, or territory of the United States. See Utah Code 68-3-12.5
Town: includes , depending on population, a metro township as defined in Section 10-3c-102. See Utah Code 68-3-12.5
United States: includes each state, district, and territory of the United States of America. See Utah Code 68-3-12.5
(a)
Except as provided in Subsections (1)(b) through (1)(d), a public treasurer shall conduct investment transactions through qualified depositories, certified dealers, or directly with issuers of the investment securities.
(b)
A public treasurer may designate a certified investment adviser to make trades on behalf of the public treasurer.
(c)
A public treasurer may make a deposit in accordance with Section 53B-7-601 in a foreign depository institution as defined in Section 7-1-103.
(d)
The state treasurer is exempt from the requirement to conduct investment transactions through a certified dealer under Subsection (1)(a).
(2)
The remaining term to maturity of the investment may not exceed the period of availability of the funds to be invested.
(3)
Except as provided in Subsection (4), all public funds shall be deposited or invested in the following assets that meet the criteria of Section 51-7-17:
(a)
negotiable or nonnegotiable deposits of qualified depositories;
(b)
qualifying or nonqualifying repurchase agreements and reverse repurchase agreements with qualified depositories using collateral consisting of:
(i)
Government National Mortgage Association mortgage pools;
(ii)
Federal Home Loan Mortgage Corporation mortgage pools;
(iii)
Federal National Mortgage Corporation mortgage pools;
(iv)
Small Business Administration loan pools;
(v)
Federal Agriculture Mortgage Corporation pools; or
(vi)
other investments authorized by this section;
(c)
qualifying repurchase agreements and reverse repurchase agreements with certified dealers, permitted depositories, or qualified depositories using collateral consisting of:
(i)
Government National Mortgage Association mortgage pools;
(ii)
Federal Home Loan Mortgage Corporation mortgage pools;
(iii)
Federal National Mortgage Corporation mortgage pools;
(iv)
Small Business Administration loan pools; or
(v)
other investments authorized by this section;
(d)
commercial paper that is classified as “first tier” by two nationally recognized statistical rating organizations, which has a remaining term to maturity of:
(i)
270 days or fewer for paper issued under 15 U.S.C. § 77c(a)(3); or
(ii)
365 days or fewer for paper issued under 15 U.S.C. § 77d(2);
(e)
bankers’ acceptances that:
(i)
are eligible for discount at a Federal Reserve bank; and
(ii)
have a remaining term to maturity of 270 days or fewer;
(f)
fixed rate negotiable deposits issued by a permitted depository that have a remaining term to maturity of 365 days or fewer;
(g)
obligations of the United States Treasury, including United States Treasury bills, United States Treasury notes, and United States Treasury bonds that, unless the funds invested are pledged or otherwise deposited in an irrevocable trustescrow account, have a remaining term to final maturity of:
(i)
five years or less;
(ii)
if the funds are invested by an institution of higher education as defined in Section 53B-3-102, a city of the first class, or a county of the first class, 10 years or less; or
(iii)
if the funds are invested by a public agency insurance mutual, as defined in Subsection 31A-1-103(7)(a), 20 years or less;
(h)
obligations other than mortgage pools and other mortgage derivative products that:
(i)
are issued by, or fully guaranteed as to principal and interest by, the following agencies or instrumentalities of the United States in which a market is made by a primary reporting government securities dealer, unless the agency or instrumentality has become private and is no longer considered to be a government entity:
(A)
Federal Farm Credit banks;
(B)
Federal Home Loan banks;
(C)
Federal National Mortgage Association;
(D)
Federal Home Loan Mortgage Corporation;
(E)
Federal Agriculture Mortgage Corporation; and
(F)
Tennessee Valley Authority; and
(ii)
unless the funds invested are pledged or otherwise deposited in an irrevocable trust escrow account, have a remaining term to final maturity of:
(A)
five years or less;
(B)
if the funds are invested by an institution of higher education as defined in Section 53B-3-102, a city of the first class, or a county of the first class, 10 years or less; or
(C)
if the funds are invested by a public agency insurance mutual, as defined in Subsection 31A-1-103(7)(a), 20 years or less;
(i)
fixed rate corporate obligations that:
(i)
are rated “A” or higher or the equivalent of “A” or higher by two nationally recognized statistical rating organizations;
(ii)
are senior unsecured or secured obligations of the issuer, excluding covered bonds;
(iii)
are publicly traded; and
(iv)
have a remaining term to final maturity of 15 months or less or are subject to a hard put at par value or better, within 365 days;
(j)
tax anticipation notes and general obligation bonds of the state or a county, incorporated city or town, school district, or other political subdivision of the state, including bonds offered on a when-issued basis without regard to the limitations described in Subsection (7) that, unless the funds invested are pledged or otherwise deposited in an irrevocable trust escrow account, have a remaining term to final maturity of:
(i)
five years or less;
(ii)
if the funds are invested by an institution of higher education as defined in Section 53B-3-102, a city of the first class, or a county of the first class, 10 years or less; or
(iii)
if the funds are invested by a public agency insurance mutual, as defined in Subsection 31A-1-103(7)(a), 20 years or less;
(k)
bonds, notes, or other evidence of indebtedness of a county, incorporated city or town, school district, or other political subdivision of the state that are payable from assessments or from revenues or earnings specifically pledged for payment of the principal and interest on these obligations, including bonds offered on a when-issued basis without regard to the limitations described in Subsection (7) that, unless the funds invested are pledged or otherwise deposited in an irrevocable trust escrow account, have a remaining term to final maturity of:
(i)
five years or less;
(ii)
if the funds are invested by an institution of higher education as defined in Section 53B-3-102, a city of the first class, or a county of the first class, 10 years or less; or
(iii)
if the funds are invested by a public agency insurance mutual, as defined in Subsection 31A-1-103(7)(a), 20 years or less;
(l)
shares or certificates in a money market mutual fund;
(m)
variable rate negotiable deposits that:
(i)
are issued by a qualified depository or a permitted depository;
(ii)
are repriced at least semiannually; and
(iii)
have a remaining term to final maturity not to exceed three years;
(n)
variable rate securities that:
(i)
(A)
are rated “A” or higher or the equivalent of “A” or higher by two nationally recognized statistical rating organizations;
(B)
are senior unsecured or secured obligations of the issuer, excluding covered bonds;
(C)
are publicly traded;
(D)
are repriced at least semiannually; and
(E)
have a remaining term to final maturity not to exceed three years or are subject to a hard put at par value or better, within 365 days;
(ii)
are not mortgages, mortgage-backed securities, mortgage derivative products, or a security making unscheduled periodic principal payments other than optional redemptions;
(o)
reciprocal deposits made in accordance with Subsection 51-7-17(4); and
(p)
negotiable brokered certificates of deposit made in accordance with Subsection 51-7-17(4).
(4)
The following public funds are exempt from the requirements of Subsection (3):
(a)
a local government other post-employment benefits trust fund under Section 51-7-12.2; and
(b)
a nonnegotiable deposit made in accordance with Section 53B-7-601 in a foreign depository institution as defined in Section 7-1-103.
(5)
If any of the deposits authorized by Subsection (3)(a) are negotiable or nonnegotiable large time deposits issued in amounts of $100,000 or more, the interest shall be calculated on the basis of the actual number of days divided by 360 days.
(6)
A public treasurer may maintain fully insured deposits in demand accounts in a federally insured nonqualified depository only if a qualified depository is not reasonably convenient to the entity’s geographic location.
(7)
Except as provided under Subsections (3)(j) and (k), the public treasurer shall ensure that all purchases and sales of securities are settled within:
(a)
15 days of the trade date for outstanding issues; and
