Pursuant to Section 25-43-5(l)(b), the following District
policies and rules of practice regarding investments, approval and selection of
official depositories and the like are hereby adopted.
(a) All funds of the Pearl River Basin
Development District (except and less amounts sufficient to cover disbursements
for current operation) shall be deposited at interest with qualified State
Depositories which have been designated and approved as qualified depositories
of the District, at a rate of interest not less than the bank discount rate on
United States Treasury Bills of comparable maturity.
Such funds shall be offered to qualified depositories of the
District having combined capital and surplus account or regulatory net worth of
$1 million or more on a competitive basis for certificates of deposits in such
amount or amounts as may be designated by the District with maturities not
longer than 13 months. The amount of any deposit which is in excess of $100,000
shall be secured to the extent required by Law by obligations of the United
States of America or by general obligation or highway bonds of the State of
Mississippi. The maximum amount to be held in certificates of deposit with any
one commercial bank depository shall be 10[CENT] of its combined capital and
surplus account, or $500,000 whichever is less. The maximum amount to be held
in certificates of deposit with any other qualified depository shall be
$100,000.
Provided that bond proceeds, funds held for current
operations, and other funds for which no acceptable certificate of deposit can
be obtained may be invested in direct obligations issued by or guaranteed in
full as to principal and interest by the United States of America or in such
other types of interest bearing accounts as may be authorized by law, to be
secured to the extent and in the manner required by law.
(b)
Designation of
depositories.
(1) Pursuant to
Section
51-11-39,
the Board shall designate one or more official state depositories within the
member counties of the District to serve as depositories for funds covered by
this paragraph, and such funds shall, from time to time be deposited in such
depositories.
(2) Before
designating depositories, the Board shall issue a notice stating the time and
place the Board will meet for such purpose and inviting the banks or banking
institutions in the District counties to submit applications to be designated
depositories. The applications shall be on a form provided by the District,
which shall be furnished upon request and submitted in complete form by a time
prescribed by the Board. Said notice shall be published one time in a newspaper
or newspapers published in the District and specified by the Board.
(3) The term of service for depositories
shall be prescribed by the Board from time to time and shall be stated in the
notice inviting depository applications.
(4) At the time and place mentioned in the
notice, the Board shall review the applications and the management and
conditions of those banks and banking institutions offering the most favorable
terms and conditions for the handling of the funds of the District, provided
the Board finds that such banks and banking institutions have proper management
and are in condition to warrant handling the District funds in the manner
prescribed in Title 27, Chapter 105 of the Mississippi Code of 1972, as
amended. After considering all relevant facts and circumstances bearing on the
management and condition of said banks or banking institutions, the Board shall
choose and notify all banks and banking institutions whose depository
applications are approved. Such notification shall state the period of time
such approval encompasses. The Board shall also, within a reasonable time,
provide such approved depositories with specific deposit and investment
procedures which the District will follow.
