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118A.06 SAFEKEEPING; ACKNOWLEDGEMENTS. (a) Investments, contracts, and agreements may be held in safekeeping with: (1) any Federal Reserve bank; (2) any bank authorized under the laws of the United States or any state to exercise corporate trust powers, including, but not limited to, the bank from which the investment is purchased; (3) a primary reporting dealer in United States government securities to the Federal Reserve Bank of New York; or (4) a securities broker-dealer, or an affiliate of it, that meets the following requirements: (i) it is registered as a broker-dealer under chapter 80A or is exempt from the registration requirements; (ii) it is regulated by the Securities and Exchange Commission; and (iii) it maintains insurance through the Securities Investor Protection Corporation or excess insurance coverage in an amount equal to or greater than the value of the securities held. (b) The government entity's ownership of all securities under paragraph (a) must be evidenced by written acknowledgments identifying the securities by the names of the issuers, maturity dates, interest rates, CUSIP number, or other distinguishing marks. History: 1996 c 399 art 1 s 7; 2010 c 234 s 2 118A.07 ADDITIONAL INVESTMENT AUTHORITY. Subdivision 1. Authority provided. As used in this section, "governmental entity" means a city with a population in excess of 200,000, a county that contains a city of that size, or the Metropolitan Council. If a governmental entity meets the requirements of subdivisions 2 and 3, it may exercise additional investment authority under subdivisions 4, 5, and 6. Subd. 2. Written policies and procedures. Prior to exercising any additional authority under subdivisions 4, 5, and 6, the governmental entity must have written investment policies and procedures governing the following: (1) the use of or limitation on mutual bond funds or other securities authorized or permitted investments under law; (2) specifications for and limitations on the use of derivatives; (3) the final maturity of any individual security; (4) the maximum average weighted life of the portfolio; (5) the use of and limitations on reverse repurchase agreements; (6) credit standards for financial institutions with which the governmental entity deals; and (7) credit standards for investments made by the governmental entity. Subd. 3. Oversight process. Prior to exercising any authority under subdivisions 4, 5, and 6, the governmental entity must establish an oversight process that provides for review of the governmental entity's Copyright © 2016 by the Revisor of Statutes, State of Minnesota. All Rights Reserved. 6MINNESOTA STATUTES 2016118A.06