Article 1. General of California Government Code >> Division 4. >> Title 2. >> Part 2. >> Chapter 4. >> Article 1.
As used in this chapter, "eligible bank" means a state or
national bank located in this state, selected by the Treasurer for
the safekeeping of money belonging to or in the custody of the state,
that has received an overall rating of not less than "satisfactory"
in its most recent evaluation by the appropriate federal financial
supervisory agency of the bank's record of meeting the credit needs
of the state's communities, including low- and moderate-income
neighborhoods, pursuant to Section 2906 of Title 12 of the United
States Code. An eligible bank is eligible to receive deposits only to
the extent that it furnishes the security required by this chapter.
(a) The definitions in Section 1700 of, and Chapter 1
(commencing with Section 99) of Division 1 of, the Financial Code
apply to this section.
(b) In this chapter, for purposes of being an eligible bank for
the safekeeping of moneys belonging to, or in the custody of, the
state, the phrases "state or national bank located in this state,"
"state or national bank," "state or national bank in this state," and
"state or national banks in the state" shall include, without
limitation, any of the following:
(1) Any California branch office of a foreign (other state) state
bank that the bank is authorized to maintain under the law of its
domicile and federal law.
(2) Any California branch office of a foreign (other state)
national bank that the bank is authorized to maintain under federal
law.
(3) Any California branch office of a foreign (other nation) bank
that the bank is licensed to maintain under Article 3 (commencing
with Section 1750) of Chapter 13.5 of Division 1 of the Financial
Code.
(4) Any California federal branch of a foreign (other nation) bank
that the bank is authorized to maintain under federal law.
Under the conditions as the Treasurer with the approval of
the Director of Finance may establish, the Treasurer may deposit
money in banks outside this state when the banks are fiscal agents of
the state or custodians of securities owned by the state, if the
banks have an overall rating of not less than "satisfactory" in their
most recent evaluation by the appropriate federal financial
supervisory agency of the banks' record of meeting the credit needs
of the communities in which the bank is located, including low- and
moderate-income neighborhoods, pursuant to Section 2906 of Title 12
of the United States Code.
All other money in the State Treasury or under the control
of the Treasurer belonging to or in the custody of the State, shall,
so far as possible, be deposited by the Treasurer to the credit of
the State in eligible banks. Any sum in the State Treasury so
deposited is deemed to be in the State Treasury. Any other amount so
deposited is deemed to be held in trust by the Treasurer.
Subject to the limitations of Article 4.5 (commencing with
Section 16480) of Chapter 3, the Treasurer shall determine what
amounts of money shall be deposited:
(a) As time deposits, and the rates of interest to be received.
(b) As demand deposits, and the rates of interest to be received,
if any.
Subject to the applicable contract, the Treasurer may call
in money from time deposits and place it in demand deposits, when
necessary to meet current requirements; and time money in his
possession for which there is no demand may be placed as demand
deposits.
Deposits in any bank shall not exceed the total of its net
worth.
All money belonging to or in the custody of the state under
the control of any state officer or employee, other than the
Treasurer, except petty cash funds authorized by the Department of
Finance, shall be deposited in such state or national banks in this
state and under such conditions as the Director of Finance
prescribes. Banks receiving such deposits shall be required to
deposit with the Treasurer the same security as is required by this
chapter for deposits made by the Treasurer.
Banks receiving deposits of money from a county advanced or
apportioned to it pursuant to Section 4481 of the Food and
Agricultural Code shall be required to secure such deposits in
accordance with Article 2 (commencing with Section 53630) of Chapter
4, Part 1, Division 2 of Title 5.
A State officer is not liable on his official bond for
losses caused by the failure of a bank in which is made a deposit of
money belonging to an inmate of a State institution, if the officer
was required or permitted by law to act as a trustee or fiduciary
with respect to the money and if he made the deposit in good faith
and in accordance with law.
The Treasurer is not responsible for any money deposited in
a bank pursuant to this chapter, and while it remains so deposited.
The Treasurer is responsible for the safekeeping, management
and disbursement of the certificates of deposit received and the
securities deposited with him, the interest received on deposits, and
the proceeds of any sale under this chapter. The State is
responsible for the custody and safe return of any securities so
deposited.
Any State officer or employee who deposits any money
belonging to or in the custody of the State in any manner other than
as prescribed in this chapter is subject to forfeiture of his office
or employment.