Arizona Laws 35-323.01. Investment of government monies in deposits; conditions; definition
A. If an investing entity invests in deposits pursuant to this section, the investing entity shall invest those monies in accordance with all of the following conditions:
Terms Used In Arizona Laws 35-323.01
- 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.
- Eligible depository: means any:
(a) Commercial or savings bank or savings and loan association that has either a branch in this state or its principal place of business in this state and that is insured by the federal deposit insurance corporation or its successor or any other insuring instrumentality of the United States according to the applicable federal law. See Arizona Laws 35-321
- Subdivision: means any county, noncharter city or town. See Arizona Laws 35-321
1. The monies are initially invested through an eligible depository in this state selected by the investing entity.
2. The selected eligible depository arranges for the deposit of the monies in one or more federally insured banks or savings and loan associations wherever located, for the account of the investing entity.
3. The full amount of principal and any accrued interest of each such deposit is insured by the federal deposit insurance corporation.
4. The selected eligible depository acts as custodian for the investing entity with respect to such deposits.
5. On the same date that the investing entity’s monies are deposited pursuant to paragraph 2 of this subsection, the selected eligible depository receives an amount of federally insured deposits from customers of other financial institutions equal to or greater than the amount of the monies initially invested by the investing entity through the selected eligible depository.
B. Monies invested in accordance with all of the conditions prescribed in this section are not subject to any security or collateral requirements.
C. For the purposes of this section, "investing entity" means this state, a political subdivision, the governing body of a municipality or the governing body of a school district.