MN HF3040

Authorizes public funds to be invested in negotiable certificates of deposit and other evidence of deposit with remaining maturity of three years or less.

Permitted issuers include nationally chartered or state-chartered banks, federal or state savings and loan associations, and state-licensed branches of foreign banks.

For obligations maturing in one year or less, issuer's debt must be rated in top short-term rating category by at least two nationally recognized statistical ratings organizations.

For obligations maturing over one year, issuer's senior debt must be rated at least "A" or equivalent by at least two nationally recognized statistical ratings organizations.

Exempts these investments from collateralization requirements under Minnesota Statutes section 118A.03; becomes effective the day following final enactment.