HOUSE BILL NO. 1011
AN ACT REQUIRING THE STATE TO SECURE ITS FUNDS AND AUTHORIZING THE INVESTMENT OF SUCH FUNDS NOT SECURED.
Be it enacted by the General Assembly of the State of Delaware:
Section 1. §2704, Title 29, Delaware Code, is hereby
amended by adding the following paragraph thereto:
"Notwithstanding any other provisions of law, all money belonging to or in the custody of the State including the money in the School Fund on deposit in a bank or trust company shall be continuously and fully secured by (i) obligations of or guaranteed by the United State of America, (ii) obligations of the Federal National Mortgage Association, the Federal Home Loan Mortgage Corporation, Public Housing Authorities, or any agency or instrumentality of the United States of America, (iii) general or revenue obligations of the states of the United States or of their municipalities, subdivisions, agencies and instrumentalities, (iv) corporate obligations having readily ascertainable market value, (v) commercial paper, (vi) certificates of deposit issued by banks other than the depository bank, and (vii) federal funds sold and unclassified loans made by the Farmers Bank, all subject to such terms, conditions and limitations as the Issuing Officers (as such term is defined in §7401, Title 29, Delaware Code) shall determine by resolution, which may include a resolution of the Issuing Officers in connection with the issuance of bonds or bond anticipation notes pursuant to Chapter 74 of said Title 29, Delaware Code. Any money belonging to or in the custody of the State which is not so secured, shall be invested forthwith by the State Treasurer in obligations described in clauses (i) and (ii) of the preceding sentence. This paragraph shall become effective upon the consummation of the acquisition by the State of preferred stock of the Farmers Bank of the State of Delaware." Approved April 29, 1976