NORTH CAROLINA GENERAL ASSEMBLY

1967 SESSION

 

 

CHAPTER 798

HOUSE BILL 1025

 

 

AN ACT TO AMEND AND CONSOLIDATE THE INVESTMENT AUTHORITY OF LOCAL GOVERNMENT UNITS.

 

The General Assembly of North Carolina do enact:

 

Section 1.  Chapter 159 of the General Statutes of North Carolina is amended by the addition of Section 159-28.1, which shall read:

"§ 159-28.1.  Investment of Unit Funds. (a) From time to time the governing body of a unit may deposit at interest or invest, as provided in subsections (b) and (c), all or part of the cash balance of any unit fund, including but not limited to the funds whose investment is authorized by G.S. 115-80.3, G.S. 153-142.24, G.S. 153-135.1, G.S. 159-25, G.S. 159-49.1, G.S. 160-411.5, and G.S. 160-431. The governing body may by resolution designate any officer, employee, or member of the governing body to manage the unit's deposits and investments on behalf of the governing body subject to whatever restrictions the governing body may impose, and such designee shall have the power to purchase, sell, and exchange securities on behalf of the governing body. The governing body shall exercise due diligence to assure that temporarily idle cash is invested or deposited at a reasonable rate of interest but shall be available to the unit when needed for the purpose for which it was raised.

"(b)      Moneys made available for investment may be deposited at interest in any bank or trust company in this State in the form of time deposits, certificates of deposit, or such other form of deposit as the Director of Local Government may approve. Such deposits shall be secured as provided in Section 159-28.

"(c)       Moneys made available for investment may be invested in the following classes of securities, and no others:

(1)        Obligations of the United States of America;

(2)        Obligations of any agency or instrumentality of the United States of America if the payment of interest and principal of such obligations is fully guaranteed by the United States of America;

(3)        Obligations of the State of North Carolina;

(4)        Bonds and notes of any North Carolina Local Government Unit, subject to such restrictions as the Director of Local Government may impose;

(5)        Shares of any savings and loan association organized under the laws of this State and shares of any federal savings and loan association having its principal office in this State, to the extent that the investment in such shares is insured by the United States of America or an agency thereof.

(6)        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 maturing no later than eighteen months after the date of purchase.

(d)        (1)        The purchase, sale, and trade of securities authorized by this Section may be by private negotiation, and units are authorized to pay all incidental costs thereof and all reasonable costs of administering the investment and deposit program. Provisions shall be made for the adequate safekeeping of the evidences of investment and the adequate bonding of persons charged with their custody or management. Proper recording and accounting shall be made of all investment and deposit transactions.

(2)        Interest earned on deposits and investments shall be credited to the fund whose cash is deposited or invested. Cash of several funds may be combined for deposit or investment if not otherwise prohibited by law; and when such joint deposits or investments are made, interest earned shall be prorated and credited to the various funds on the basis of the amounts thereof invested, figured according to an average periodic balance or other sound accounting principle prescribed by the governing body. Interest earned on the deposit or investment of bond funds may be used for the purpose for which the bonds were sold or may be applied to the payment of principal or interest of the bonds.

(3)        If funds are invested in registered securities, the securities may be released from registration and transferred on the books of registry kept by or on behalf of the issuer by signature of a person designated to carry out that function by the governing body.

"(e)       Insofar as the provisions of any other statute, whether general, local, or special, are inconsistent with the provisions of this Section, this Section shall be controlling."

Sec. 2.  (a) G.S. 115-80.3 is rewritten to read as follows:

"§ 115-80.3.  Investment of Moneys in Reserve Fund. The cash balance, or parts thereof, of the capital reserve fund may be deposited at interest or invested as provided by G.S. 159-28.1."

(b)        G.S. 130-128 (16) c.2. is rewritten to read:

"2.        For deposit at interest or investment under the provisions of G.S. 159-28.1."

(c)        Chapter 153 of the General Statutes of North Carolina is amended by the addition of G.S. 153-135.1, which shall read:

"§ 153-135.1.  Investment of Funds. The cash balances, or parts thereof, of county funds may be deposited at interest or invested as provided by G.S. 159-28.1."

(d)        G.S. 153-142.24 is rewritten to read as follows:

"§ 153-142.24.  Investment of Moneys in Reserve Fund. The cash balance, or parts thereof, of the capital reserve fund may be deposited at interest or invested as provided by G.S. 159-28.1."

(e)        G.S. 159-25 is rewritten to read as follows:

"§ 159-25.  Investment of Unit Sinking Funds. Sinking funds shall be deposited or invested as provided in this chapter, and such deposits and investments shall be subject to the approval of the Director of Local Government."

(f)         G.S. 159-49.1 is rewritten to read as follows:

"§ 159-49.1.  Investment of Bond Proceeds. Bond proceeds may be deposited at interest or invested as provided by G.S. 159-28.1."

(g)        G.S. 159-49.2 is hereby repealed, it being the intent and purpose of this Act that the investment of bond proceeds shall be as provided by G.S. 159-49.1, as amended, and G.S. 159-28.1.

(h)        G.S. 160-411.5 is rewritten to read as follows:

"§ 160-411.5.  Investment of Funds. The cash balances, or parts thereof, of municipal funds may be deposited at interest or invested as provided by G.S. 159-28.1."

(i)         G.S. 160-431 is rewritten to read as follows:

"§ 160-431.  Investments. The cash balance, or parts thereof, of the capital reserve fund may be deposited at interest or invested as provided by G.S. 159-28.1."

Sec. 3.  All laws and clauses of laws in conflict with this Act are hereby repealed.

Sec. 4.  This Act shall become effective upon its ratification.

In the General Assembly read three times and ratified, this the 15th day of June, 1967.