AI-assisted research summary: The treasurer must invest most state-controlled funds, with approval, only in specified safe investments; some out-of-state banks must meet conditions, report, and can face misdemeanor consequences for violations.
I. All funds over which the state has exclusive control, aside from such sums of money as the treasurer may deem necessary to hold or deposit for meeting current expenses, shall be invested by the treasurer, with the approval of the governor and council, in obligations of the United States government, in obligations of any county government, municipal government, or district or division thereof within the state of New Hampshire, in obligations which are legal investments for depository banks pursuant to RSA 383-B:3-303, in participation units in the public deposit investment pool established pursuant to RSA 6:45, or in deposits, including money market accounts, or certificates of deposit, or repurchase agreements, and all other types of interest bearing accounts, of federally insured banks chartered under the laws of New Hampshire, the federal government with a branch within the state, or any other state with a branch in this state as provided in paragraph I-a. I-a. In order for a bank chartered under the laws of another state to be eligible to accept deposits of public funds, the following conditions shall be satisfied: (a) The state in which the out-of-state bank is chartered must permit a New Hampshire-chartered bank to accept public funds in deposit in that state in substantially the same manner and subject to substantially the same terms and conditions as is permitted for banks chartered in that state. (b) The out-of-state bank engages in lending activity in New Hampshire in an aggregate amount that is not less than the average amount of the deposits of all of its state, county, municipal, and other public deposits in the state in each calendar year. (c) The out-of-state bank pays the business enterprise tax or business profits tax based on its business activity in the state during its fiscal year. (d) Before accepting such deposits, the out-of-state bank shall furnish to the state treasurer an opinion of legal counsel that the condition of subparagraph (a) has been met. The treasurer shall confirm receipt of the opinion in writing not later than 60 days of receipt of the opinion, and shall make the opinion publicly available on the department's website. Thereafter, the out-of-state bank shall certify in writing under oath to the treasurer not later than March 31 in each year that it has complied with the requirements of subparagraphs (b) and (c) for the prior calendar or fiscal year and shall disclose the average amount of such deposits accepted and the number and aggregate amount of all loans made in such calendar year. A violation of this paragraph shall be a misdemeanor. II. The treasurer may also invest public funds in interest-bearing deposits which meet all of the following conditions: (a) The funds are initially invested through a federally insured bank authorized to accept deposits in New Hampshire under paragraphs I and I-a of this section, selected by the treasurer. (b) The selected bank arranges for the redeposit of funds which exceed the federal deposit insurance limitation of the selected bank in deposits in one or more federally insured financial institutions located in the United States, for the account of the treasurer. (c) The full amount of principal and any accrued interest of each such deposit is covered by federal deposit insurance. (d) The selected bank acts as custodian with respect to each such deposit for the account of the treasurer. (e) On the same date that the funds are redeposited by the selected bank, the selected bank receives an amount of deposits from customers of other federally insured financial institutions equal to or greater than the amount of the funds initially invested through the selected bank by the treasurer. (f) Notwithstanding the other provisions of this paragraph, all investments and their management shall be governed by the fiduciary duty to maximize benefits for the state or the beneficiaries of the state's trust funds managed by the treasurer. The treasurer shall report on a quarterly basis to the office of legislative budget assistant regarding compliance with the duty to make investment decisions based upon the fiduciary duty to maximize short or long term financial benefits for the state. The report shall note the existence of any investment funds that may have mixed, rather than pure, fiduciary interest investment motivations. Source: Source. 1903, 125:2. PL 15:7. RL 22:7. RSA 6:8. 1969, 245:1. 1973, 224:1. 1991, 268:3. 1999, 1:3. 2001, 2:1. 2008, 120:3. 2010, 7:1, eff. July 3, 2010. 2013, 97:1, eff. Aug. 19, 2013. 2015, 272:46, eff. Oct. 1, 2015. 2016, 230:12, eff. Aug. 8, 2016. 2021, 65:2, eff. Aug. 3, 2021. 2023, 36:2, eff. July 16, 2023; 132:1, eff. Aug. 29, 2023.