MN HF2174

Authorizes school districts, towns, counties, and cities to deposit public funds with designated depositories that arrange redeposits into multiple banks, savings and loan associations, or credit unions located in the United States.

Requires all redeposited public funds plus accrued interest to be fully insured by the Federal Deposit Insurance Corporation or the National Credit Union Share Insurance Fund.

Requires any entity serving as subcustodian for designated depositories to have at least five years of general custodial experience.

Amends Minnesota Statutes sections 123B.14 (school districts), 366.01 (towns), 385.07 (counties), and 427.06 (cities) to provide these depository authorities.

All sections become effective the day following final enactment.