MN SF4179

Amends Minnesota Statutes 2020, section 9.031, subdivision 3, to expand the types of collateral depositories may use to secure state funds instead of corporate bonds.

Adds five new categories of approved collateral: United States treasury bills, notes, and bonds; federal agency securities quoted by recognized industry services; state and local general obligation securities rated "A" or better; local government general obligation securities pledged by the same entity; and irrevocable standby letters of credit from Federal Home Loan Banks rated "AA" or better by Moody's or Standard & Poor's.

Includes time deposits that are fully insured by any federal agency as approved collateral.

Maintains existing approval requirements by the Executive Council for all collateral deposits and preserves the commissioner of management and budget's authority to reassign collateral and pay interest on deposited collateral when the depository is not in default.