12-1675. (a) The governing body of any county, city, township, school district, area vocational-technical school, community college, firemen's relief association, community mental health center, community facility for people with intellectual disability or any other governmental entity, unit or subdivision in the state of Kansas having authority to receive, hold and expend public moneys or funds may invest any moneys which are not immediately required for the purposes for which the moneys were collected or received, and the investment of which is not subject to or regulated by any other statute.
(b) Such moneys shall be invested only:
(1) In temporary notes or no-fund warrants issued by such investing governmental unit;
(2) in savings deposits, demand deposits, time deposit, open accounts, certificates of deposit or time certificates of deposit with maturities of not more than two years: (A) In banks, savings and loan associations and savings banks, which have main or branch offices located in such investing governmental unit; or (B) if no main or branch office of a bank, savings and loan association or savings bank is located in such investing governmental unit, then in banks, savings and loan associations and savings banks, which have main or branch offices in the county or counties in which all or part of such investing governmental unit is located;
(3) in repurchase agreements with: (A) Banks, savings and loan associations and savings banks, which have main or branch offices located in such investing governmental unit, for direct obligations of, or obligations that are insured as to principal and interest by, the United States government or any agency thereof; or (B) (i) if no main or branch office of a bank, savings and loan association or savings bank, is located in such investing governmental unit; or (ii) if no such bank, savings and loan association or savings bank having a main or branch office located in such investing governmental unit is willing to enter into such an agreement with the investing governmental unit at an interest rate equal to or greater than the investment rate, as defined in subsection (g) of K.S.A. 12-1675a, and amendments thereto, then such repurchase agreements may be entered into with banks, savings and loan associations or savings banks which have main or branch offices in the county or counties in which all or part of such investing governmental unit is located; or (C) if no bank, savings and loan association or savings bank, having a main or branch office in such county or counties is willing to enter into such an agreement with the investing governmental unit at an interest rate equal to or greater than the investment rate, as defined in subsection (g) of K.S.A. 12-1675a, and amendments thereto, then such repurchase agreements may be entered into with banks, savings and loan associations or savings banks located within this state;
(4) in direct obligations of or obligations that are insured as to principal and interest by the United States or any agency thereof, not including mortgage-backed securities with maturities as the governing body shall determine, but not exceeding two years. Such investment transactions shall only be conducted with banks, savings and loan associations and savings banks; the federal reserve bank of Kansas City, Missouri; or with primary government securities dealers which report to the market report division of the federal reserve bank of New York, or any broker-dealer engaged in the business of selling government securities which is registered in compliance with the requirements of section 15 or 15C of the securities exchange act of 1934 and registered pursuant to K.S.A. 17-12a401, and amendments thereto;
(5) in the municipal investment pool fund established in K.S.A. 12-1677a, and amendments thereto;
(6) in the investments authorized and in accordance with the conditions prescribed in K.S.A. 12-1677b, and amendments thereto;
(7) in multiple municipal client investment pools managed by the trust departments of banks which have main or branch offices located in the county or counties where such investing governmental unit is located or with trust companies incorporated under the laws of this state which have contracted to provide trust services under the provisions of K.S.A. 9-2107, and amendments thereto, with banks which have main or branch offices located in the county or counties in which such investing governmental unit is located. Public moneys invested under this paragraph shall be secured in the same manner as provided for under K.S.A. 9-1402, and amendments thereto. Pooled investments of public moneys made by trust departments under this paragraph shall be subject to the same terms, conditions and limitations as are applicable to the municipal investment pool established by K.S.A. 12-1677a, and amendments thereto; or
(8) municipal bonds or other obligations issued by any municipality of the state of Kansas as defined in K.S.A. 10-1101, and amendments thereto, which are general obligations of the municipality issuing the same.
(c) The investments authorized in paragraphs (4), (5), (6), (7) or (8) of subsection (b) shall be utilized only if the banks, savings and loan associations and savings banks eligible for investments authorized in paragraph (2) of subsection (b), cannot or will not make the investments authorized in paragraph (2) of subsection (b) available to the investing governmental unit at interest rates equal to or greater than the investment rate, as defined in subsection (g) of K.S.A. 12-1675a, and amendments thereto.
(d) In selecting a depository pursuant to paragraph (2) of subsection (b), if a bank, savings and loan association or savings bank eligible for an investment deposit thereunder has an office located in the investing governmental unit and such financial institution will make such deposits available to the investing governmental unit at interest rates equal to or greater than the investment rate, as defined in subsection (g) of K.S.A. 12-1675a, and amendments thereto, and such financial institution otherwise qualifies for such deposit, the investing governmental unit shall select one or more of such eligible financial institutions for deposit of funds pursuant to this section. If no such financial institution qualifies for such deposits, the investing governmental unit may select for such deposits one or more eligible banks, savings and loan associations or savings banks which have offices in the county or counties in which all or a part of such investing governmental unit is located which will make such deposits available to the investing governmental unit at interest rates equal to or greater than the investment rate, as defined in subsection (g) of K.S.A. 12-1675a, and amendments thereto, and which otherwise qualify for such deposits.
(e) (1) All security purchases and repurchase agreements shall occur on a delivery versus payment basis.
(2) All securities, including those acquired by repurchase agreements, shall be perfected in the name of the investing governmental unit and shall be delivered to the purchaser or a third-party custodian which may be the state treasurer.
(f) Public moneys deposited pursuant to subsection (b)(2) of K.S.A. 12-1675, and amendments thereto, by the governing body of any governmental unit listed in subsection (a) of K.S.A. 12-1675, and amendments thereto, through a selected bank, savings and loan association or savings bank which is part of a reciprocal deposit program in which the bank, savings and loan association or savings bank:
(1) Receives reciprocal deposits from other participating institutions located in the United States in an amount equal to the amount of funds deposited by the municipal corporation or quasi-municipal corporation; and
(2) for which the total cumulative amount of each deposit does not exceed the maximum deposit insurance amount for one depositor at one financial institution as determined by the federal deposit insurance corporation.
Such deposits shall not be treated as securities and need not be secured as provided in this or any other act.
History: L. 1968, ch. 217, § 1; L. 1969, ch. 80, § 1; L. 1973, ch. 63, § 6; L. 1975, ch. 68, § 1; L. 1976, ch. 79, § 2; L. 1977, ch. 55, § 1; L. 1982, ch. 52, § 6; L. 1983, ch. 47, § 7; L. 1986, ch. 76, § 7; L. 1989, ch. 48, § 66; L. 1992, ch. 146, § 3; L. 1993, ch. 207, § 2; L. 1994, ch. 104, § 2; L. 1997, ch. 180, § 14; L. 2004, ch. 154, § 53; L. 2006, ch. 57, § 3; L. 2009, ch. 49, § 2; L. 2010, ch. 54, § 3; L. 2012, ch. 91, § 2; L. 2013, ch. 11, § 1; L. 2014, ch. 110, § 1; July 1.
Law Review and Bar Journal References:
"City Home Rule in Kansas," Wright W. Crummett, 9 W.L.J. 1, 19 (1969).
"State Control of Local Government in Kansas: Special Legislation and Home Rule," Barkley Clark, 20 K.L.R. 631, 659 (1972).
Attorney General's Opinions:
Municipality may not invest idle funds in its own no-fund warrants. 81-23.
County hospital boards may not use private financing to acquire medical clinics. 81-37.
Investment of public moneys by school districts. 81-53.
Investment of funds received from industrial revenue bonds. 81-117.
Township board duties; auditing board. 81-141.
Deposit of interest earned on investment of idle funds by municipalities. 81-152.
Approval of investment of fireman's relief fund moneys by municipalities. 81-194.
Bank's eligibility as depository for public moneys. 81-211.
Establishment of joint fund for future repair of building constructed under an interlocal cooperation project. 81-233.
Deferred compensation; investment of idle funds; public moneys. 82-88.
Investment of idle funds; prospective application of 1982 amendments. 82-142.
Deposit and investment of public moneys; active versus idle funds; interest bearing demand accounts. 83-88.
Designation of depositories for public moneys by quasi-municipal corporations. 83-184.
Establishment of township funds; transfer of money between funds. 84-22.
Security for deposits of public moneys; exemption for peak deposit periods. 85-157.
Investments of public moneys by governmental subdivisions. 86-15.
Applicability of K.S.A. 9-1402 to Kansas public employees retirement system. 86-88.
Investment of public moneys by governmental subdivisions, units and entities. 87-144.
Deposit of public moneys; bodies subject thereto; rural water districts. 87-157.
Investment of public moneys by governmental subdivisions, units and entities. 89-109.
Leasing hospital property; oil and gas leases; lease operating expenses. 91-66.
Banks; trust powers; investment of public moneys by governmental subdivisions, units and entities; repurchase agreements. 92-9.
Investment of public moneys by governmental subdivisions; repurchase agreements. 94-14.
Pooled money investment board; investments in municipal investment pool fund. 95-31.
Investment of public moneys by governmental subdivisions; use of interlocal cooperation agreements. 95-38.
Deposit and investment of school district funds; conditions and limitations; financial institutions with home offices in Kansas. 95-39.
Depositories for public funds of the state and its municipalities limited to banks having home offices in Kansas. 95-95.
County hospitals; investment of funds; purchase and operation of limited care residential facility. 97-14.
Investment of state moneys in tri-party repurchase agreements. 1998-32.
Bank's loss of eligibility as public depository: Upon maturity of CD's, local government must place funds in eligible public depository. 2001-35.
Money in school district's capital outlay fund may not be used for other purposes. 2003-34.
Specified governmental entities may invest idle funds in FDIC insured entities; conditions. 2004-09.
What financial institutions local governmental entities may invest in. 2006-10.
Lawrence memorial hospital is not a governmental entity subject to K.S.A. 12-1675. 2007-30.
CASE ANNOTATIONS
1. Counties are authorized to keep interest on undistributed and delinquent property taxes. U.S.D. No. 490 v. Board of Butler County Comm'rs, 237 Kan. 6, 10, 697 P.2d 64 (1985).
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