Iowa Admin. Code r. 781-15.1

Current through Register Vol. 47, No. 6, September 18, 2024

Rule 781-15.1 - Scope

(1) Iowa Code section 12B.10C requires the treasurer of state to adopt rules requiring the inclusion in public funds custodial agreements of any provisions necessary to prevent loss of public funds. As used in this chapter, "public funds custodial agreement" means any public funds custodial agreement as defined in Iowa Code section 12B.10C.

(2)This chapter shall apply to any public unit, as defined in 781-Chapter 13, which uses a public funds custodial agreement for or relating to the investment of public funds. As used in this chapter, "public funds" means public funds as defined in Iowa Code section 12C.1(2).

(3) A public unit may only enter into a public funds custodial agreement if the custodian is the trust or safekeeping department of a national or state bank located in the state of Iowa that lawfully possesses and exercises fiduciary powers under applicable federal laws or the laws of the state of Iowa. Notwithstanding the foregoing, the treasurer of state may exercise its discretion under Iowa Code section 12C.4 to enter into public funds custodial agreements with a custodian located outside the state of Iowa. Each public unit that enters into a public funds custodial agreement shall require the inclusion in the public funds custodial agreement those provisions contained in rule 781-15.2 (12B) of this chapter or substantially equivalent provisions.

(4) Public funds that are invested under the provisions of a resolution or indenture for the issuance of bonds, notes, certificates, warrants, or other evidences of indebtedness are not subject to this chapter.

(5) This chapter does not apply to those entities described in Iowa Code section 12B.10C(4) or to any other entities that may otherwise be exempted by law. This chapter does not apply to public funds custodial agreements entered into by the treasurer of state when such agreements are on behalf of the aforementioned entities.

(6) This chapter does not apply to custodial agreements between an open-end management investment company registered with the federal Securities and Exchange Commission under the federal Investment Company Act of 1940, 15 U.S.C. Sec. 80(a) and a custodian bank.

(7)This chapter does not apply to any custodial agreements entered into by a public unit or the treasurer of state for the purposes of securing public funds deposits under Iowa Code chapter 12C.

(8) This chapter does not apply to Treasury Direct accounts established by a public unit with a federal reserve bank for the purpose of making direct purchases of United States Treasury bills, notes or bonds.

Iowa Admin. Code r. 781-15.1

ARC 1464C, IAB 5/14/2014, effective 6/18/2014

Amended by IAB October 29, 2014/Volume XXXVII, Number 9, effective 12/3/2014