Section 53653 Of Article 2. Deposit Of Funds From California Government Code >> Division 2. >> Title 5. >> Part 1. >> Chapter 4. >> Article 2.
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 to federal law, notwithstanding this article. For
deposits equivalent to and not less than the maximum amount insured
pursuant to federal law for which a treasurer has waived security
under this section, a treasurer at his or her discretion may also
waive security for the interest accrued on the deposits which, when
added to the deposits, would cause the sum of the interest and
deposits to exceed the maximum amount insured pursuant to federal
law, provided that the interest is computed by the depository on the
average daily balance of the deposits, paid monthly and computed on a
360-day basis.