ARTICLE 2. Deposit of Funds

Article 2 added by Stats. 1949, Ch. 81.

§§ 53630–53686 · 58 sections

§ 53630 As used in this article: (a) “Local agency” means county, city, city and county, including a chartered city or county, a community college district, or other…
§ 53630.1 The Legislature hereby finds that the solvency and creditworthiness of each individual local agency can impact the solvency and creditworthiness of the state…
§ 53630.5 (a) The definitions in Section 1670 of, and Chapter 1 (commencing with Section 99) of Division 1 of, the Financial Code apply to this section. (b) In this…
§ 53631 Under those conditions as the treasurer of a local agency fixes with the approval of the legislative body, he or she may establish accounts at banks within or…
§ 53632 There are three classes of deposits: (a) Inactive deposits. (b) Active deposits. (c) Interest-bearing active deposits.
§ 53632.5 There are three classes of security for deposits: (a) Securities described in subdivision (m) of Section 53651. (b) Securities described in subdivision (p) of…
§ 53633 The treasurer shall determine the amounts of money to be deposited as inactive, active, and interest-bearing active deposits, except as otherwise provided in…
§ 53634 The treasurer may call in money from inactive deposits and place it in active deposits as current demands require. When there is money in his possession for…
§ 53635 (a) This section shall apply to a local agency that is a county, a city and county, or other local agency that pools money in deposits or investments with…
§ 53635.2 As far as possible, all money belonging to, or in the custody of, a local agency, including money paid to the treasurer or other official to pay the principal,…
§ 53635.7 In making any decision that involves borrowing in the amount of one hundred thousand dollars ($100,000) or more, the legislative body of the local agency shall…
§ 53635.8 Notwithstanding any other provision of this code, a local agency that has the authority under law to invest funds, at its discretion, may invest a portion of…
§ 53636 Money so deposited is deemed to be in the treasury of the local agency.
§ 53637 The money shall be deposited in any bank, savings association or federal association, state or federal credit union, or federally insured industrial loan…
§ 53638 (a) The deposit shall not exceed the shareholder’s equity of any depository bank. For the purposes of this subdivision, shareholder’s equity shall be…
§ 53639 (a) Except as otherwise provided in Section 53682, the depository shall bear the expenses of transportation of money to and from the depository. If, pursuant…
§ 53640 Except as otherwise provided in Section 53682, the depository shall handle, collect, and pay all checks, drafts, and other exchange without cost to the local…
§ 53641 When money is deposited in a depository, the treasurer or other authorized official shall take and preserve a receipt, certificate of deposit, or other…
§ 53642 The money deposited may be drawn out by check or order of the treasurer or other official authorized to make such deposit.
§ 53643 The treasurer may deposit any part of the money as agreed upon between the treasurer and the depository.
§ 53644 If an agreement is not made: (a) Active deposits and interest thereon are subject to withdrawal upon the demand of the treasurer or other authorized official,…
§ 53645 Interest shall be computed and paid by the depository, as follows: (a) For active deposits upon which interest is payable, interest shall be computed on the…
§ 53646 (a) (1) In the case of county government, the treasurer may annually render to the board of supervisors and any oversight committee a statement of investment…
§ 53647 (a) Interest on all money deposited belongs to, and shall be paid quarterly into the general fund of, the local agency represented by the officer making the…
§ 53647.5 Notwithstanding any other provision of law, interest earned on any bail money deposited by a court in a bank account pursuant to Section 1463.1 of the Penal…
§ 53648 Notwithstanding this article, the treasurer may deposit moneys in, and enter into contracts with, a state or national bank, savings association or federal…
§ 53648.5 Upon the removal by federal law of the conflicting federal law or rule the agreement between the treasurer or other authorized official and a depository may be…
§ 53649 The treasurer is responsible for the safekeeping of money in his or her custody and shall enter into any contract with a depository relating to any deposit…
§ 53651 Eligible securities are any of the following: (a) United States Treasury notes, bonds, bills or certificates of indebtedness, or obligations for which the…
§ 53651.2 (a) To be an eligible security under subdivision (m) of Section 53651, a promissory note placed in a securities pool on or after January 1, 1987, shall comply…
§ 53651.4 (a) A depository that uses eligible securities of the class described in subdivision (m) of Section 53651 shall, within 90 days after the close of each…
§ 53651.6 (a) To be an eligible security under subdivision (p) of Section 53651, a letter of credit shall be in such form and shall contain such provisions as the…
§ 53652 To secure active or inactive deposits a depository shall at all times maintain with the agent of depository eligible securities in securities pools, pursuant…
§ 53653 When in his or her discretion local conditions so warrant, the treasurer may waive security for the portion of any deposits as is insured pursuant to federal…
§ 53654 (a) The depository may add securities to the pool or substitute securities of equal value for those in the pool at any time, but shall not interchange classes…
§ 53655 A placement of securities by a depository with an agent of depository pursuant to this article shall have the effect of perfecting a security interest in those…
§ 53656 (a) At the time the treasurer enters into a contract with the depository pursuant to Section 53649, he or she shall authorize the agent of depository…
§ 53657 (a) No person shall act as an agent of depository unless that person is a trust company located in this state, the trust department of a bank located in this…
§ 53658 An agent of a depository may hold and pool securities to secure deposits for one or more depositories pursuant to Section 53656, but shall maintain a separate…
§ 53659 Whenever an agent of depository accepts securities pursuant to Section 53656 it may, with the authorization of the depository, place such securities for…
§ 53660 When deposits of a local agency are secured by pooled securities pursuant to Section 53656, the agent of depository shall make available to the treasurer for…
§ 53661 (a) The Commissioner of Financial Protection and Innovation shall act as Administrator of Local Agency Security and shall be responsible for the administration…
§ 53663 (a) Each agent of depository shall report in writing to the administrator within two business days after any withdrawal, substitution, or addition of pooled…
§ 53664 The individual reports specified in Sections 53654, 53660, 53661, and 53663 are not public documents and are not open to inspection by the public.
§ 53665 If a depository fails to pay all or part of the deposits of a local agency secured by pooled securities in accordance with the contract provided for in Section…
§ 53666 The only liability that shall attach to the administrator as the result of the operation of this article is that which would attach as a result of other laws…
§ 53667 (a) Expenses incurred by the administrator in carrying out the duties and responsibilities assigned to the administrator by the sections specified in…
§ 53669 The treasurer or other authorized official is not responsible for money while it is deposited pursuant to this article.
§ 53676 The treasurer is not responsible for securities delivered to and receipted for by any bank, savings and loan association, credit union, federally insured…
§ 53678 The charges for the handling and safekeeping of any such securities are not a charge against the treasurer but shall be paid by the depository owning the…
§ 53679 So far as possible, all money belonging to a local agency under the control of any of its officers or employees other than the treasurer shall, and money…
§ 53679.1 Notwithstanding any other provision of law, the accounting practices of each county utilized prior to the effective date of this section relating to interest…
§ 53680 A tax collector of a local agency shall immediately deposit with the treasurer all money under his control, unless he deposits the money in a depositary…
§ 53681 An officer or employee of a local agency who deposits money belonging to, or in the custody of, the local agency in any other manner than that prescribed in…
§ 53682 Notwithstanding any other provision in this article except Section 53652, the treasurer may deposit moneys in and enter into contracts with any depository, as…
§ 53683 Notwithstanding any other provision in this article, the consideration payable by the agency as specified in subdivision (e) of Section 53682 shall be paid by…
§ 53684 (a) Unless otherwise provided by law, if the treasurer of any local agency, or other official responsible for the funds of the local agency, determines that…
§ 53686 (a) Any audit conducted relating to the investment of local agency funds and other funds by the county treasurer in the county fund maintained pursuant to…