California Government Code ARTICLE 2 - Deposit of Funds

• Section 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 public...
• Section 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 and other...
• Section 53630.5.
  (a) The definitions in Section 1750 of, and Chapter 1 (commencing with Section 99) of Division 1 of, the Financial Code apply to this section.(b) In this...
• Section 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...
• Section 53632.
  There are three classes of deposits:(a) Inactive deposits.(b) Active deposits.(c) Interest-bearing active deposits.(Amended by Stats. 1983, Ch. 105, Sec. 1.5.)
• Section 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 Section 53651.(c) Securities enumerated in Section...
• Section 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 Section 53679.(Amended...
• Section 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...
• Section 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...
• Section 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...
• Section 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...
• Section 53635.8.
  Notwithstanding Section 53601 or any other provision of this code, a local agency that has the authority under law to invest funds, at its discretion,...
• Section 53635.8.a.
  Notwithstanding Section 53601 or any other provision of this code, a local agency that has the authority under law to invest funds, at its discretion,...
• Section 53636.
  Money so deposited is deemed to be in the treasury of the local agency.(Added by Stats. 1949, Ch. 81.)
• Section 53637.
  The money shall be deposited in any bank, savings association or federal association, state or federal credit union, or federally insured industrial loan company with...
• Section 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 determined in accordance...
• Section 53639.
  Except as otherwise provided in Section 53682, the depository shall bear the expenses of transportation of money to and from the depository.(Amended by Stats. 1986,...
• Section 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...
• Section 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 evidence...
• Section 53642.
  The money deposited may be drawn out by check or order of the treasurer or other official authorized to make such deposit.(Amended by Stats. 1953,...
• Section 53643.
  The treasurer may deposit any part of the money as agreed upon between the treasurer and the depository.(Amended by Stats. 1986, Ch. 248, Sec. 94.)
• Section 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, subject...
• Section 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 average...
• Section 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 policy,...
• Section 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...
• Section 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...
• Section 53648.
  Notwithstanding this article, the treasurer may deposit moneys in, and enter into contracts with, a state or national bank, savings association or federal association, federal...
• Section 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...
• Section 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...
• Section 53651.
  Eligible securities are any of the following:(a) United States Treasury notes, bonds, bills or certificates of indebtedness, or obligations for which the faith and credit of...
• Section 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,...
• Section 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...
• Section 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...
• Section 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 to...
• Section 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...
• Section 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...
• Section 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...
• Section 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...
• Section 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...
• Section 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...
• Section 53659.
  Whenever an agent of depository accepts securities pursuant to Section 53656 it may, with the authorization of the depository, place such securities for safekeeping with...
• Section 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...
• Section 53661.
  (a) The Commissioner of Business Oversight shall act as Administrator of Local Agency Security and shall be responsible for the administration of Sections 53638, 53651, 53651.2,...
• Section 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 securities and...
• Section 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.(Amended by...
• Section 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...
• 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...
• Section 53667.
  (a) Expenses incurred by the administrator in carrying out the duties and responsibilities assigned to the administrator by the sections specified in subdivision (a) of Section...
• Section 53669.
  The treasurer or other authorized official is not responsible for money while it is deposited pursuant to this article.(Amended by Stats. 1953, Ch. 670.)
• Section 53676.
  The treasurer is not responsible for securities delivered to and receipted for by any bank, savings and loan association, credit union, federally insured industrial loan...
• Section 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...
• Section 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...
• Section 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 on...
• Section 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...
• Section 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...
• Section 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 defined...
• Section 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...
• Section 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...
• Section 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...

Last modified: October 22, 2018