[Rev. 11/21/2013 11:01:06 AM--2013]

CHAPTER 355 - PUBLIC INVESTMENTS

GENERAL PROVISIONS

NRS 355.005           Regulations of State Treasurer.

STATE BOARD OF FINANCE

NRS 355.010           Creation; members.

NRS 355.020           Salary for appointive members; compensation for members and employees.

NRS 355.030           Legal adviser; Secretary.

NRS 355.040           Records.

NRS 355.045           General duties.

INVESTMENTS AND LOANS FROM STATE PERMANENT SCHOOL FUND

NRS 355.050           State Treasurer charged with investment of money in Fund.

NRS 355.060           Authorized and prohibited investments.

NRS 355.070           Determinations to be made before investment; opinion of Attorney General.

NRS 355.080           Restrictions on investment in county bonds.

NRS 355.090           Conversion of bonds or securities into cash; reinvestment.

NRS 355.100           Loans on agricultural lands: Abstract; appraisal.

NRS 355.110           Note and mortgage: Execution and recording; provisions.

OTHER AUTHORIZED STATE INVESTMENTS AND LOANS

NRS 355.120           Investment in farm mortgage loans, farm loan bonds and other obligations issued by federal land banks and banks for cooperatives; limitations.

NRS 355.130           Loans to local governments.

NRS 355.135           Lending of securities from state investment portfolio.

NRS 355.140           Authorized and prohibited investments of state money.

NRS 355.145           Standard of care for investments made pursuant to NRS 355.140.

NRS 355.150           Determinations to be made before investment; opinion of Attorney General.

NRS 355.160           Purpose of NRS 355.140 and 355.150.

INVESTMENTS AND LOANS BY LOCAL GOVERNMENTS

NRS 355.165           Local Government Pooled Long-Term Investment Account: Creation; administration; applicability of NRS 355.167; permissible investments; assessment of costs; computation of interest; establishment of subaccounts.

NRS 355.167           Local Government Pooled Investment Fund: Creation; administration; permissible investments; permissible loans; written request for withdrawal by local government; interest; regulations. [Effective through September 30, 2017.]

NRS 355.167           Local Government Pooled Investment Fund: Creation; administration; permissible investments; permissible loans; written request for withdrawal by local government; interest; regulations. [Effective October 1, 2017.]

NRS 355.168           Pooling of money of local governments within county for investment.

NRS 355.169           Legal action by county to recover investment; expenses.

NRS 355.170           Authorized investments; disposition of interest.

NRS 355.171           Additional authorized investments for counties, cities and school districts; exceptions.

NRS 355.172           Possession of securities purchased by or for local government; security interest in lieu of possession.

NRS 355.175           Authority for investments; priority in case of conflicting orders concerning same money; disposition of interest.

NRS 355.176           Investment of money held pursuant to deferred compensation plan.

NRS 355.177           Investment in own securities or interim warrants prohibited.

NRS 355.178           Loans from investment portfolios of certain counties, cities or consolidated municipalities.

INVESTMENT IN BONDS OF HOME OWNERS’ LOAN CORPORATION AND FEDERAL HOME LOAN BANK; LOANS AND ADVANCES INSURED BY FEDERAL HOUSING ADMINISTRATOR

NRS 355.180           Bonds of Home Owners’ Loan Corporation and Federal Home Loan Bank are legal investments.

NRS 355.190           Loans and advances of credit by Federal Housing Administrator.

NRS 355.200           Depositary bonds.

INVESTMENT OF MONEY DEPOSITED IN COURT

NRS 355.210           Conditions and requirements for investment.

INVESTMENT OF MONEY FOR PROVISION OF RETIREMENT BENEFITS

NRS 355.220           Retirement Benefits Investment Board: Creation; membership; powers and duties.

INVESTMENT IN CORPORATION FOR PUBLIC BENEFIT THAT PROVIDES PRIVATE EQUITY FUNDING FOR CERTAIN BUSINESSES

NRS 355.250           Definitions.

NRS 355.255           “Corporation for public benefit” defined.

NRS 355.260           “Private equity funding” defined.

NRS 355.265           “Venture capital” defined.

NRS 355.270           Corporation for public benefit: Formation and purpose; composition, chair, compensation and duties of board of directors.

NRS 355.275           Corporation for public benefit: Placement of investments; use of money received from State Permanent School Fund.

NRS 355.280           Transfer of money from State Permanent School Fund to corporation for public benefit: Prerequisites; maximum amount.

NRS 355.285           State Treasurer: Powers and duties.

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GENERAL PROVISIONS

      NRS 355.005  Regulations of State Treasurer.  The State Treasurer shall adopt regulations which the State Treasurer deems necessary to carry out his or her duties pursuant to the provisions of this chapter.

      (Added to NRS by 1995, 407)

STATE BOARD OF FINANCE

      NRS 355.010  Creation; members.

      1.  The State Board of Finance is hereby created.

      2.  The State Board of Finance shall consist of the Governor, the State Controller, the State Treasurer and two other members to be appointed by the Governor for terms of 4 years each.

      3.  At least one of the members appointed by the Governor shall be actively engaged in commercial banking in this state.

      [Part 1:212:1917; A 1919, 284; 1919 RL p. 3146; NCL § 6962] + [Part 1:93:1919; 1919 RL p. 3109; NCL § 6956] + [Part 2:93:1919; 1919 RL p. 3109; NCL § 6957]—(NRS A 1969, 1200)

      NRS 355.020  Salary for appointive members; compensation for members and employees.

      1.  The two members appointed by the Governor are each entitled to receive a salary of not more than $80 per day, as fixed by the State Board of Finance, for their services while actually engaged in the performance of their duties as members of the Board.

      2.  While engaged in the business of the Board, each member and employee of the Board is entitled to receive the per diem allowance and travel expenses provided for state officers and employees generally.

      [Part 2:93:1919; 1919 RL p. 3109; NCL § 6957]—(NRS A 1969, 1200; 1975, 298; 1981, 1980; 1989, 1712)

      NRS 355.030  Legal adviser; Secretary.

      1.  The Attorney General is the legal adviser of the State Board of Finance.

      2.  The Chief Deputy State Treasurer is ex officio Secretary of the State Board of Finance.

      [3:93:1919; 1919 RL p. 3110; NCL § 6958] + [4:93:1919; 1919 RL p. 3111; NCL § 6959]—(NRS A 1969, 1201; 1977, 561)

      NRS 355.040  Records.  The State Board of Finance shall keep a permanent record of all its meetings, in which record shall be:

      1.  Recorded the aye and nay vote of the members of the Board upon all questions presented to the Board.

      2.  Kept all opinions of the Attorney General as required by the provisions of this chapter.

      [3:212:1917; 1919 RL p. 3147; NCL § 6964]

      NRS 355.045  General duties.  The State Board of Finance shall review and approve or disapprove the policies established by the State Treasurer for investment of money of the State and of money in the Local Government Pooled Investment Fund. The Board shall review both sets of policies at least every 4 months.

      (Added to NRS by 1979, 723; A 1981, 496; 1997, 1282)

INVESTMENTS AND LOANS FROM STATE PERMANENT SCHOOL FUND

      NRS 355.050  State Treasurer charged with investment of money in Fund.  The State Treasurer shall have charge of all the investments of money and the sale of all securities of the State Permanent School Fund.

      [Part 1:212:1917; A 1919, 284; 1919 RL p. 3146; NCL § 6962]—(NRS A 1979, 724)

      NRS 355.060  Authorized and prohibited investments.

      1.  The State Controller shall notify the State Treasurer monthly of the amount of uninvested money in the State Permanent School Fund.

      2.  Whenever there is a sufficient amount of money for investment in the State Permanent School Fund, the State Treasurer shall proceed to negotiate for the investment of the money in:

      (a) United States bonds.

      (b) Obligations or certificates of the Federal National Mortgage Association, the Federal Home Loan Banks, the Federal Home Loan Mortgage Corporation, the Federal Farm Credit Banks Funding Corporation or the Student Loan Marketing Association, whether or not guaranteed by the United States.

      (c) Bonds of this state or of other states.

      (d) Bonds of any county of the State of Nevada.

      (e) United States treasury notes.

      (f) Farm mortgage loans fully insured and guaranteed by the Farm Service Agency of the United States Department of Agriculture.

      (g) Loans at a rate of interest of not less than 6 percent per annum, secured by mortgage on agricultural lands in this state of not less than three times the value of the amount loaned, exclusive of perishable improvements, of unexceptional title and free from all encumbrances.

      (h) Money market mutual funds that:

             (1) Are registered with the Securities and Exchange Commission;

             (2) Are rated by a nationally recognized rating service as “AAA” or its equivalent; and

             (3) Invest only in securities issued or guaranteed as to payment of principal and interest by the Federal Government, or its agencies or instrumentalities, or in repurchase agreements that are fully collateralized by such securities.

      (i) Common or preferred stock of a corporation created by or existing under the laws of the United States or of a state, district or territory of the United States, if:

             (1) The stock of the corporation is:

                   (I) Listed on a national stock exchange; or

                   (II) Traded in the over-the-counter market, if the price quotations for the over-the-counter stock are quoted by the National Association of Securities Dealers Automated Quotations System (NASDAQ);

             (2) The outstanding shares of the corporation have a total market value of not less than $50,000,000;

             (3) The maximum investment in stock is not greater than 50 percent of the book value of the total investments of the State Permanent School Fund;

             (4) Except for investments made pursuant to paragraph (k), the amount of an investment in a single corporation is not greater than 3 percent of the book value of the assets of the State Permanent School Fund; and

             (5) Except for investments made pursuant to paragraph (k), the total amount of shares owned by the State Permanent School Fund is not greater than 5 percent of the outstanding stock of a single corporation.

      (j) A pooled or commingled real estate fund or a real estate security that is managed by a corporate trustee or by an investment advisory firm that is registered with the Securities and Exchange Commission, either of which may be retained by the State Treasurer as an investment manager. The shares and the pooled or commingled fund must be held in trust. The total book value of an investment made under this paragraph must not at any time be greater than 5 percent of the total book value of all investments of the State Permanent School Fund.

      (k) Mutual funds or common trust funds that consist of any combination of the investments listed in paragraphs (a) to (j), inclusive.

      (l) The limited partnerships or limited-liability companies described in NRS 355.280.

      3.  The State Treasurer shall not invest any money in the State Permanent School Fund pursuant to paragraph (i), (j) or (k) of subsection 2 unless the State Treasurer obtains a judicial determination that the proposed investment or category of investments will not violate the provisions of Section 9 of Article 8 of the Constitution of the State of Nevada. The State Treasurer shall contract for the services of independent contractors to manage any investments of the State Treasurer made pursuant to paragraph (i), (j) or (k) of subsection 2. The State Treasurer shall establish such criteria for the qualifications of such an independent contractor as are appropriate to ensure that each independent contractor has expertise in the management of such investments.

      4.  In addition to the investments authorized by subsection 2, the State Treasurer may make loans of money from the State Permanent School Fund to school districts pursuant to NRS 387.526.

      5.  No part of the State Permanent School Fund may be invested pursuant to a reverse-repurchase agreement.

      [Part 2:212:1917; A 1925, 221; 1919 RL p. 3146; NCL § 6963] + [2a:212:1917; added 1953, 304]—(NRS A 1969, 822; 1979, 724; 1989, 2178; 1991, 175; 1993, 2282; 1997, 2713, 2879; 1999, 599; 2001, 2291; 2011, 2584)

      NRS 355.070  Determinations to be made before investment; opinion of Attorney General.

      1.  Except as otherwise provided in subsection 3, the State Treasurer shall:

      (a) Make diligent inquiry as to the financial standing and responsibility of any state, county or person in whose bonds or securities on agricultural lands the State Treasurer proposes to invest.

      (b) Require the Attorney General to:

             (1) Give his or her written legal opinion as to the validity of any act of any state or county under which the bonds or securities are issued and authorized and in which the State Treasurer contemplates investment.

             (2) Examine and give his or her written opinion upon the title and the abstract of title of all agricultural land on which the State contemplates taking mortgages.

      2.  If the State Treasurer is satisfied as to the financial standing and responsibility of the state or county whose bonds or securities the State Treasurer proposes to purchase, or is satisfied of the financial standing and responsibility of the person whose mortgages on agricultural land are offered to the State, and the Attorney General gives his or her written opinion that the act under which the bonds or securities are issued is valid and that the issues were regularly made, or approves the abstract of title of the agricultural land proposed to be mortgaged, the State Treasurer may make the investment.

      3.  The provisions of this section do not apply to loans of money from the State Permanent School Fund made pursuant to NRS 387.526.

      [Part 2:212:1917; A 1925, 221; 1919 RL p. 3146; NCL § 6963]—(NRS A 1979, 570; 1981, 361; 1997, 2713; 1999, 599)

      NRS 355.080  Restrictions on investment in county bonds.  No part of the State Permanent School Fund may be invested in the bonds of any county whose entire bonded indebtedness for all purposes exceeds 10 percent of its assessed valuation; and the amount of bonds of any county purchased or invested in by the State Treasurer may not, in the aggregate, exceed 4 percent of the assessed valuation of any county.

      [5:212:1917; A 1928, 30; 1947, 267; 1943 NCL § 6966]—(NRS A 1979, 724)

      NRS 355.090  Conversion of bonds or securities into cash; reinvestment.  The State Treasurer may convert into cash any of the bonds or securities in which any part of the State Permanent School Fund is invested by selling them in the open market to the highest bidder or bidders, the proceeds thereof to be placed by the State Treasurer in the State Permanent School Fund to be reinvested as provided in NRS 355.060 and 355.070.

      [4:212:1917; 1919 RL p. 3147; NCL § 6965]—(NRS A 1979, 724)

      NRS 355.100  Loans on agricultural lands: Abstract; appraisal.

      1.  Any person desiring to obtain a loan from the State Permanent School Fund on agricultural land shall:

      (a) Make written application to the State Board of Finance; and

      (b) At the same time, furnish to the State Board of Finance a full and complete abstract of title to the property offered as security for the loan.

      2.  If the abstract is approved by the Attorney General and it appears that the person offering such mortgage has an exceptional title free from all encumbrances, the State Board of Finance forthwith shall appoint an appraiser or appraisers to view the land and improvements thereon and make a report to the State Board of Finance of the value thereof. The person desiring to obtain the loan shall pay the cost of the appraiser or appraisers which may be incurred, not to exceed $5 per day and expenses.

      [6:212:1917; 1919 RL p. 3147; NCL § 6967] + [8:212:1917; 1919 RL p. 3147; NCL § 6969]

      NRS 355.110  Note and mortgage: Execution and recording; provisions.

      1.  If the abstract is approved by the Attorney General and the title is in accordance with the requirements of NRS 355.100, and the written report of the appraiser or appraisers is satisfactory to the State Board of Finance, the loan shall be made. The person obtaining the loan shall execute a note payable to the State of Nevada for the State Permanent School Fund for the amount thereof, and shall execute as security for the payment of the note a mortgage upon the lands to be given as security in a form and manner to be approved by the Attorney General. The mortgage shall be recorded as other mortgages of real property are recorded.

      2.  Every loan made upon a mortgage on agricultural land shall be payable in not to exceed 10 years, and provision shall be made for partial payments annually or semiannually to the State Treasurer, but no payments shall be made in an amount less than $100 and interest accruing. All payments of interest and payments upon principal shall be made semiannually on June 1 and December 1 of each year.

      [7:212:1917; 1919 RL p. 3147; NCL § 6968]

OTHER AUTHORIZED STATE INVESTMENTS AND LOANS

      NRS 355.120  Investment in farm mortgage loans, farm loan bonds and other obligations issued by federal land banks and banks for cooperatives; limitations.  The State Treasurer may invest any available money in the State Treasury, other than that in the State Permanent School Fund and that in the State Insurance Fund, in farm mortgage loans fully insured and guaranteed by the Farmers Home Administration of the United States Department of Agriculture, farm loan bonds, consolidated farm loan bonds, debentures, consolidated debentures and other obligations issued by federal land banks and federal intermediate credit banks under the authority of the Federal Farm Loan Act, formerly 12 U.S.C. §§ 636 to 1012, inclusive, and §§ 1021 to 1129, inclusive, and the Farm Credit Act of 1971, 12 U.S.C. §§ 2001 to 2259, inclusive, as now or hereafter amended, and bonds, debentures, consolidated debentures and other obligations issued by banks for cooperatives under the authority of the Farm Credit Act of 1933, formerly 12 U.S.C. §§ 1131 to 1138e, inclusive, and the Farm Credit Act of 1971, 12 U.S.C. §§ 2001 to 2259, inclusive, as now or hereafter amended.

      [5a:93:1919; added 1953, 303]—(NRS A 1959, 34; 1973, 1089; 1979, 724; 1991, 471)

      NRS 355.130  Loans to local governments.

      1.  By unanimous vote of its members and with the approval of the State Board of Examiners, the State Board of Finance may lend any available money in the State Treasury, other than that in the State Permanent School Fund and the State Insurance Fund, to local governments situated within the boundaries of the State of Nevada. Such loans must be made only to local governments which have observed the regulations and followed the procedure for obtaining a medium-term obligation set forth in chapter 350 of NRS. Such loans must be made for a period of not longer than 10 years and must bear interest at a rate which does not exceed by more than 3 percent the Index of Twenty Bonds which was most recently published before the bids are received or a negotiated offer is accepted.

      2.  In making loans to local governments, the State Board of Finance shall follow the procedure for making other loans set forth in this chapter.

      [5:93:1919; 1919 RL p. 3111; NCL § 6960]—(NRS A 1959, 422; 1965, 745; 1969, 802; 1973, 16; 1975, 870; 1981, 1415; 1983, 583; 1989, 53; 1995, 1820)

      NRS 355.135  Lending of securities from state investment portfolio.  The State Treasurer may lend securities from the investment portfolio of this state if he or she receives collateral from the borrower which represents at least 102 percent of the value of the securities borrowed. For the purposes of this section, the value of the securities borrowed must be determined on a daily basis.

      (Added to NRS by 1995, 407)

      NRS 355.140  Authorized and prohibited investments of state money.

      1.  In addition to other investments provided for by a specific statute, the following bonds and other securities are proper and lawful investments of any of the money of this state, of its various departments, institutions and agencies, and of the State Insurance Fund:

      (a) Bonds and certificates of the United States;

      (b) Bonds, notes, debentures and loans if they are underwritten by or their payment is guaranteed by the United States;

      (c) Obligations or certificates of the United States Postal Service, the Federal National Mortgage Association, the Government National Mortgage Association, the Federal Agricultural Mortgage Corporation, the Federal Home Loan Banks, the Federal Home Loan Mortgage Corporation or the Student Loan Marketing Association, whether or not guaranteed by the United States;

      (d) Bonds of this state or other states of the Union;

      (e) Bonds of any county of this state or of other states;

      (f) Bonds of incorporated cities in this state or in other states of the Union, including special assessment district bonds if those bonds provide that any deficiencies in the proceeds to pay the bonds are to be paid from the general fund of the incorporated city;

      (g) General obligation bonds of irrigation districts and drainage districts in this state which are liens upon the property within those districts, if the value of the property is found by the board or commission making the investments to render the bonds financially sound over all other obligations of the districts;

      (h) Bonds of school districts within this state;

      (i) Bonds of any general improvement district whose population is 200,000 or more and which is situated in two or more counties of this state or of any other state, if:

             (1) The bonds are general obligation bonds and constitute a lien upon the property within the district which is subject to taxation; and

             (2) That property is of an assessed valuation of not less than five times the amount of the bonded indebtedness of the district;

      (j) Medium-term obligations for counties, cities and school districts authorized pursuant to chapter 350 of NRS;

      (k) Loans bearing interest at a rate determined by the State Board of Finance when secured by first mortgages on agricultural lands in this state of not less than three times the value of the amount loaned, exclusive of perishable improvements, and of unexceptional title and free from all encumbrances;

      (l) Farm loan bonds, consolidated farm loan bonds, debentures, consolidated debentures and other obligations issued by federal land banks and federal intermediate credit banks under the authority of the Federal Farm Loan Act, formerly 12 U.S.C. §§ 636 to 1012, inclusive, and §§ 1021 to 1129, inclusive, and the Farm Credit Act of 1971, 12 U.S.C. §§ 2001 to 2259, inclusive, and bonds, debentures, consolidated debentures and other obligations issued by banks for cooperatives under the authority of the Farm Credit Act of 1933, formerly 12 U.S.C. §§ 1131 to 1138e, inclusive, and the Farm Credit Act of 1971, 12 U.S.C. §§ 2001 to 2259, inclusive, excluding such money thereof as has been received or which may be received hereafter from the Federal Government or received pursuant to some federal law which governs the investment thereof;

      (m) Negotiable certificates of deposit issued by commercial banks, insured credit unions or savings and loan associations;

      (n) Bankers’ acceptances of the kind and maturities made eligible by law for rediscount with Federal Reserve banks or trust companies which are members of the Federal Reserve System, except that acceptances may not exceed 180 days’ maturity, and may not, in aggregate value, exceed 20 percent of the total par value of the portfolio as determined on the date of purchase;

      (o) Commercial paper issued by a corporation organized and operating in the United States or by a depository institution licensed by the United States or any state and operating in the United States that:

             (1) At the time of purchase has a remaining term to maturity of not more than 270 days; and

             (2) Is rated by a nationally recognized rating service as “A-1,” “P-1” or its equivalent, or better,

Ê except that investments pursuant to this paragraph may not, in aggregate value, exceed 20 percent of the total par value of the portfolio as determined on the date of purchase, and if the rating of an obligation is reduced to a level that does not meet the requirements of this paragraph, it must be sold as soon as possible;

      (p) Notes, bonds and other unconditional obligations for the payment of money, except certificates of deposit that do not qualify pursuant to paragraph (m), issued by corporations organized and operating in the United States or by depository institutions licensed by the United States or any state and operating in the United States that:

             (1) Are purchased from a registered broker-dealer;

             (2) At the time of purchase have a remaining term to maturity of not more than 5 years; and

             (3) Are rated by a nationally recognized rating service as “A” or its equivalent, or better,

Ê except that investments pursuant to this paragraph may not, in aggregate value, exceed 20 percent of the total par value of the portfolio, and if the rating of an obligation is reduced to a level that does not meet the requirements of this paragraph, it must be sold as soon as possible;

      (q) Money market mutual funds which:

             (1) Are registered with the Securities and Exchange Commission;

             (2) Are rated by a nationally recognized rating service as “AAA” or its equivalent; and

             (3) Invest only in securities issued by the Federal Government or agencies of the Federal Government or in repurchase agreements fully collateralized by such securities;

      (r) Collateralized mortgage obligations that are rated by a nationally recognized rating service as “AAA” or its equivalent; and

      (s) Asset-backed securities that are rated by a nationally recognized rating service as “AAA” or its equivalent.

      2.  Repurchase agreements are proper and lawful investments of money of the State and the State Insurance Fund for the purchase or sale of securities which are negotiable and of the types listed in subsection 1 if made in accordance with the following conditions:

      (a) The State Treasurer shall designate in advance and thereafter maintain a list of qualified counterparties which:

             (1) Regularly provide audited and, if available, unaudited financial statements to the State Treasurer;

             (2) The State Treasurer has determined to have adequate capitalization and earnings and appropriate assets to be highly credit worthy; and

             (3) Have executed a written master repurchase agreement in a form satisfactory to the State Treasurer and the State Board of Finance pursuant to which all repurchase agreements are entered into. The master repurchase agreement must require the prompt delivery to the State Treasurer and the appointed custodian of written confirmations of all transactions conducted thereunder, and must be developed giving consideration to the Federal Bankruptcy Act, 11 U.S.C. §§ 101 et seq.

      (b) In all repurchase agreements:

             (1) At or before the time money to pay the purchase price is transferred, title to the purchased securities must be recorded in the name of the appointed custodian, or the purchased securities must be delivered with all appropriate, executed transfer instruments by physical delivery to the custodian;

             (2) The State must enter into a written contract with the custodian appointed pursuant to subparagraph (1) which requires the custodian to:

                   (I) Disburse cash for repurchase agreements only upon receipt of the underlying securities;

                   (II) Notify the State when the securities are marked to the market if the required margin on the agreement is not maintained;

                   (III) Hold the securities separate from the assets of the custodian; and

                   (IV) Report periodically to the State concerning the market value of the securities;

             (3) The market value of the purchased securities must exceed 102 percent of the repurchase price to be paid by the counterparty and the value of the purchased securities must be marked to the market weekly;

             (4) The date on which the securities are to be repurchased must not be more than 90 days after the date of purchase; and

             (5) The purchased securities must not have a term to maturity at the time of purchase in excess of 10 years.

      3.  As used in subsection 2:

      (a) “Counterparty” means a bank organized and operating or licensed to operate in the United States pursuant to federal or state law or a securities dealer which is:

             (1) A registered broker-dealer;

             (2) Designated by the Federal Reserve Bank of New York as a “primary” dealer in United States government securities; and

             (3) In full compliance with all applicable capital requirements.

      (b) “Repurchase agreement” means a purchase of securities by the State or State Insurance Fund from a counterparty which commits to repurchase those securities or securities of the same issuer, description, issue date and maturity on or before a specified date for a specified price.

      4.  No money of this state may be invested pursuant to a reverse-repurchase agreement, except money invested pursuant to chapter 286 of NRS.

      [1:191:1943; A 1951, 318; 1953, 38, 586; 1954, 5]—(NRS A 1959, 35, 423; 1967, 1712; 1971, 269; 1973, 16, 334, 1090; 1981, 489; 1983, 961; 1985, 353; 1989, 2178; 1991, 346, 471, 499; 1993, 2283; 1995, 167, 1820; 1997, 1282; 1999, 798, 1477, 1821; 2001, 2293)

      NRS 355.145  Standard of care for investments made pursuant to NRS 355.140.  In investing pursuant to NRS 355.140, the State Treasurer shall exercise the judgment and care, under the circumstances then prevailing, which a person of prudence, discretion and intelligence exercises in the management of his or her own affairs, not in regard to speculation, but in regard to the investment of his or her money, considering the probable income as well as the probable safety of his or her capital.

      (Added to NRS by 1993, 2282)

      NRS 355.150  Determinations to be made before investment; opinion of Attorney General.

      1.  Before making any investment in the bonds and other securities designated in NRS 355.140, the State Board of Finance, or other board, commission or agency of the State contemplating the making of any such investments shall make due and diligent inquiry as to:

      (a) Whether the bonds of such federal agencies are actually underwritten or payment thereof is guaranteed by the United States.

      (b) The financial standing and responsibility of the state or states, county or counties, incorporated cities, irrigation districts, drainage districts, school districts, and general improvement districts in the bonds or securities of which such investments are contemplated or are to be made.

      (c) Whether such bonds and other securities are valid and duly authorized and issued, and the proceedings incident thereto have been fully complied with.

      (d) The financial standing and responsibility of the person or persons, company or companies, corporation or corporations to whom or to which such loans are contemplated.

      (e) The value of the lands so mortgaged.

      2.  Such commission, board or other state agency shall require the Attorney General:

      (a) To give his or her legal opinion in writing as to:

             (1) The validity of any laws under which such bonds or securities are issued and authorized and in which such investments are contemplated.

             (2) The validity of such bonds or other securities.

      (b) To examine and pass upon and to give his or her official opinion in writing upon the title and abstract of title or title insurance of all agricultural lands so mortgaged to secure such loans.

      3.  Unless such commission, board or other state agency is satisfied from such inquiry and opinion that the bonds of such federal agencies are underwritten or payment thereof guaranteed by the United States and of the financial standing and responsibility of the state, county, incorporated city or district issuing such bonds, then such commission, board or other state agency shall not invest such funds therein, but if satisfied, such commission, board or other state agency may, at its option, so invest such funds in such bonds.

      [2:191:1943; 1943 NCL § 7058.01]—(NRS A 1967, 1713; 1979, 1641; 1981, 1525; 1999, 1825)

      NRS 355.160  Purpose of NRS 355.140 and 355.150.  Except as otherwise provided in NRS 355.140 and 355.150, the State Board of Finance, State Board of Education or other state agency shall proceed in the same manner as the law relating to each of them requires in the making of such investments, the purpose of NRS 355.140 and 355.150, being merely to designate the classes of bonds and other securities and loans in which the funds mentioned in NRS 355.140 lawfully may be invested and the other matters relating thereto as specified in NRS 355.140 and 355.150.

      [3:191:1943; 1943 NCL § 7058.02]—(NRS A 1981, 1525; 1999, 1825)

INVESTMENTS AND LOANS BY LOCAL GOVERNMENTS

      NRS 355.165  Local Government Pooled Long-Term Investment Account: Creation; administration; applicability of NRS 355.167; permissible investments; assessment of costs; computation of interest; establishment of subaccounts.

      1.  The Local Government Pooled Long-Term Investment Account is hereby created. The Account must be administered by the State Treasurer.

      2.  All of the provisions of NRS 355.167 apply to the Local Government Pooled Long-Term Investment Account.

      3.  In addition to the investments which are permissible pursuant to subsection 3 of NRS 355.167, the Treasurer may invest the money in the Local Government Pooled Long-Term Investment Account in:

      (a) Mutual funds which:

             (1) Are registered with the Securities and Exchange Commission;

             (2) Are rated in the highest rating category by at least one nationally recognized rating service; and

             (3) Invest only in securities issued by the Federal Government or agencies of the Federal Government or in repurchase agreements fully collateralized by such securities.

      (b) An investment contract that is collateralized with securities issued by the Federal Government or agencies of the Federal Government if:

             (1) The collateral has a market value of at least 102 percent of the amount invested and any accrued unpaid interest thereon;

             (2) The Treasurer receives a security interest in the collateral that is fully perfected and the collateral is held in custody for the State by a third-party agent of the State which is a commercial bank authorized to exercise trust powers;

             (3) The market value of the collateral is determined not less frequently than weekly and, if the ratio required by subparagraph (1) is not met, sufficient additional collateral is deposited with the agent of this State to meet that ratio within 2 business days after the determination; and

             (4) The party with whom the investment contract is executed is a commercial bank or credit union, or that party or a guarantor of the performance of that party is:

                   (I) An insurance company which has a rating on its ability to pay claims of not less than “Aa2” by Moody’s Investors Service, Inc., or “AA” by Standard and Poor’s Ratings Services, or their equivalent; or

                   (II) An entity which has a credit rating on its outstanding long-term debt of not less than “A2” by Moody’s Investors Service, Inc., or “A” by Standard and Poor’s Ratings Services, or their equivalent.

      4.  In addition to the reasonable charges against the Account which the State Treasurer may assess pursuant to subsection 8 of NRS 355.167, the State Treasurer may, in the case of a local government pooled long-term investment account, assess the costs:

      (a) Associated with a calculation of any rebate of arbitrage profits which is required to be paid to the Federal Government by 26 U.S.C. § 148; and

      (b) Of contracting with qualified persons to assist in the:

             (1) Calculation of any rebate of arbitrage profits which is required to be paid to the Federal Government by 26 U.S.C. § 148; and

             (2) Administration of the Account.

      5.  In addition to the quarterly computations of interest to be reinvested for or paid to each participating local government pursuant to subsection 9 of NRS 355.167, the State Treasurer may, in the case of a local government pooled long-term investment account, compute and reinvest or pay the interest more frequently. The State Treasurer may also base his or her computations on the amount of interest accrued rather than the amount received.

      6.  The Treasurer may establish one or more separate subaccounts in the Local Government Pooled Long-Term Investment Account for identified investments that are made for and allocated to specific participating local governments.

      (Added to NRS by 1993, 257; A 1997, 2879; 1999, 1480)

      NRS 355.167  Local Government Pooled Investment Fund: Creation; administration; permissible investments; permissible loans; written request for withdrawal by local government; interest; regulations. [Effective through September 30, 2017.]

      1.  The Local Government Pooled Investment Fund is hereby created as an agency fund to be administered by the State Treasurer.

      2.  Any local government, as defined in NRS 354.474, may deposit its money with the State Treasurer for credit to the Fund for purposes of investment.

      3.  The State Treasurer may invest the money of the Fund:

      (a) In securities which have been authorized as investments for a local government by any provision of NRS or any special law.

      (b) In time certificates of deposit in the manner provided by NRS 356.015.

      (c) In notes authorized by NRS 349.074.

      4.  The State Treasurer may lend securities in which he or she invests pursuant to subsection 3 or NRS 355.165 if the State Treasurer receives collateral from the borrower in the form of cash or marketable securities that are:

      (a) Acceptable to the State Treasurer; and

      (b) At least 102 percent of the value of the securities borrowed.

Ê The State Treasurer may enter into such contracts as are necessary to extend and manage loans pursuant to this subsection.

      5.  Each local government that elects to deposit money with the State Treasurer for such an investment must:

      (a) Upon the deposit, inform the State Treasurer in writing how long a period the money is expected to be available for investment.

      (b) At the end of the period, notify the State Treasurer in writing whether it wishes to extend the period.

      6.  If a local government wishes to withdraw any of its money before the end of the period of investment, it must make a written request to the State Treasurer. Whenever the State Treasurer is required to sell or liquidate invested securities because of a request for early withdrawal, any penalties or loss of interest incurred must be charged against the deposit of the local government which requested the early withdrawal.

      7.  All interest received on money of the Fund must be deposited for credit to the Fund.

      8.  The State Treasurer may assess reasonable charges against the Fund for reimbursement of the expenses which he or she incurs in administering the Fund. The amount of the assessments must be transferred to an account within the State General Fund for use of the State Treasurer in carrying out the provisions of this section.

      9.  At the end of each quarter of each fiscal year, the State Treasurer shall:

      (a) Compute the proportion of the total deposits in the Fund which were attributable during the quarter to each local government;

      (b) Apply that proportion to the total amount of interest received during the quarter on invested money of the Fund; and

      (c) Pay to each participating local government or reinvest upon its instructions its proportionate share of the interest, as computed pursuant to paragraphs (a) and (b), less the proportionate amounts of the assessments for the expenses of administration.

      10.  The State Treasurer may adopt reasonable regulations to carry out the provisions of this section.

      (Added to NRS by 1979, 701; A 1981, 342; 1989, 309; 1999, 926; 2008, 25th Special Session, 5; 2009, 2125; 2011, 2174, 2175)

      NRS 355.167  Local Government Pooled Investment Fund: Creation; administration; permissible investments; permissible loans; written request for withdrawal by local government; interest; regulations. [Effective October 1, 2017.]

      1.  The Local Government Pooled Investment Fund is hereby created as an agency fund to be administered by the State Treasurer.

      2.  Any local government, as defined in NRS 354.474, may deposit its money with the State Treasurer for credit to the Fund for purposes of investment.

      3.  The State Treasurer may invest the money of the Fund:

      (a) In securities which have been authorized as investments for a local government by any provision of NRS or any special law.

      (b) In time certificates of deposit in the manner provided by NRS 356.015.

      4.  The State Treasurer may lend securities in which he or she invests pursuant to subsection 3 or NRS 355.165 if the State Treasurer receives collateral from the borrower in the form of cash or marketable securities that are:

      (a) Acceptable to the State Treasurer; and

      (b) At least 102 percent of the value of the securities borrowed.

Ê The State Treasurer may enter into such contracts as are necessary to extend and manage loans pursuant to this subsection.

      5.  Each local government that elects to deposit money with the State Treasurer for such an investment must:

      (a) Upon the deposit, inform the State Treasurer in writing how long a period the money is expected to be available for investment.

      (b) At the end of the period, notify the State Treasurer in writing whether it wishes to extend the period.

      6.  If a local government wishes to withdraw any of its money before the end of the period of investment, it must make a written request to the State Treasurer. Whenever the State Treasurer is required to sell or liquidate invested securities because of a request for early withdrawal, any penalties or loss of interest incurred must be charged against the deposit of the local government which requested the early withdrawal.

      7.  All interest received on money of the Fund must be deposited for credit to the Fund.

      8.  The State Treasurer may assess reasonable charges against the Fund for reimbursement of the expenses which he or she incurs in administering the Fund. The amount of the assessments must be transferred to an account within the State General Fund for use of the State Treasurer in carrying out the provisions of this section.

      9.  At the end of each quarter of each fiscal year, the State Treasurer shall:

      (a) Compute the proportion of the total deposits in the Fund which were attributable during the quarter to each local government;

      (b) Apply that proportion to the total amount of interest received during the quarter on invested money of the Fund; and

      (c) Pay to each participating local government or reinvest upon its instructions its proportionate share of the interest, as computed pursuant to paragraphs (a) and (b), less the proportionate amounts of the assessments for the expenses of administration.

      10.  The State Treasurer may adopt reasonable regulations to carry out the provisions of this section.

      (Added to NRS by 1979, 701; A 1981, 342; 1989, 309; 1999, 926; 2008, 25th Special Session, 5; 2009, 2125; 2011, 2174, 2175, effective October 1, 2017)

      NRS 355.168  Pooling of money of local governments within county for investment.

      1.  Except as otherwise provided in this section or by statute or contract regarding money from a particular source, the county treasurer of any county may pool, for purposes of investment, any money held by him or her for local governments, as defined in NRS 354.474, which the county treasurer is otherwise authorized by statute to invest.

      2.  Before pooling any money pursuant to subsection 1, the county treasurer shall notify in writing each local government whose money is to be included in the pool. The county treasurer may pool the money of the various local governments notified unless he or she is directed by a local government, within 15 days after receipt of the notice, to invest all or a portion of its money separately from any money so pooled. The notice must include a copy of the guidelines established by the county treasurer pursuant to subsection 3 and must state the time within which the local government must respond, as provided in this subsection.

      3.  The county treasurer must establish written guidelines for the pooling of money for investments, including provisions concerning:

      (a) The method of allocating any income or loss from any investments among the participating local governments;

      (b) The procedures for notification of the county treasurer by a local government of how long a period the money is expected to be available for investment;

      (c) Early withdrawals, of money invested through the pool, by request of a participating local government, and the charging of any penalties or loss of interest incurred because of the early withdrawal, against the money of that local government; and

      (d) The method by which a local government may partially or completely terminate its participation in the pool.

      (Added to NRS by 1985, 2109)

      NRS 355.169  Legal action by county to recover investment; expenses.

      1.  If an investment of the money of a county or other local government is made by the county treasurer, whether separately or through a pooling arrangement as provided in NRS 355.168, the county may, on behalf of that local government, take any lawful action necessary to recover the money invested if:

      (a) The principal of and interest on any investment is not received when due; or

      (b) The corporation, bank, credit union, broker or other person with whom the investment is made becomes insolvent or bankrupt or is placed in receivership.

      2.  The expenses of any action taken pursuant to this section must be paid from the money recovered and allocated among the funds from which the investment is made in the same manner as any loss on an investment is allocated. If the total amount of money recovered is insufficient to pay those expenses, the excess amount is a charge against the county.

      (Added to NRS by 1985, 2110; A 1999, 1481)

      NRS 355.170  Authorized investments; disposition of interest.

      1.  Except as otherwise provided in this section and NRS 354.750 and 355.171, the governing body of a local government may purchase for investment the following securities and no others:

      (a) Bonds and debentures of the United States, the maturity dates of which do not extend more than 10 years after the date of purchase.

      (b) Farm loan bonds, consolidated farm loan bonds, debentures, consolidated debentures and other obligations issued by federal land banks and federal intermediate credit banks under the authority of the Federal Farm Loan Act, formerly 12 U.S.C. §§ 636 to 1012, inclusive, and §§ 1021 to 1129, inclusive, and the Farm Credit Act of 1971, 12 U.S.C. §§ 2001 to 2259, inclusive, and bonds, debentures, consolidated debentures and other obligations issued by banks for cooperatives under the authority of the Farm Credit Act of 1933, formerly 12 U.S.C. §§ 1131 to 1138e, inclusive, and the Farm Credit Act of 1971, 12 U.S.C. §§ 2001 to 2259, inclusive.

      (c) Bills and notes of the United States Treasury, the maturity date of which is not more than 10 years after the date of purchase.

      (d) Obligations of an agency or instrumentality of the United States of America or a corporation sponsored by the government, the maturity date of which is not more than 10 years after the date of purchase.

      (e) Negotiable certificates of deposit issued by commercial banks, insured credit unions or savings and loan associations.

      (f) Securities which have been expressly authorized as investments for local governments by any provision of Nevada Revised Statutes or by any special law.

      (g) Nonnegotiable certificates of deposit issued by insured commercial banks, insured credit unions or insured savings and loan associations, except certificates that are not within the limits of insurance provided by an instrumentality of the United States, unless those certificates are collateralized in the same manner as is required for uninsured deposits by a county treasurer pursuant to NRS 356.133. For the purposes of this paragraph, any reference in NRS 356.133 to a “county treasurer” or “board of county commissioners” shall be deemed to refer to the appropriate financial officer or governing body of the local government purchasing the certificates.

      (h) Subject to the limitations contained in NRS 355.177, negotiable notes medium-term obligations issued by local governments of the State of Nevada pursuant to NRS 350.087 to 350.095, inclusive.

      (i) Bankers’ acceptances of the kind and maturities made eligible by law for rediscount with Federal Reserve Banks, and generally accepted by banks or trust companies which are members of the Federal Reserve System. Eligible bankers’ acceptances may not exceed 180 days’ maturity. Purchases of bankers’ acceptances may not exceed 20 percent of the money available to a local government for investment as determined on the date of purchase.

      (j) Obligations of state and local governments if:

             (1) The interest on the obligation is exempt from gross income for federal income tax purposes; and

             (2) The obligation has been rated “A” or higher by one or more nationally recognized bond credit rating agencies.

      (k) Commercial paper issued by a corporation organized and operating in the United States or by a depository institution licensed by the United States or any state and operating in the United States that:

             (1) Is purchased from a registered broker-dealer;

             (2) At the time of purchase has a remaining term to maturity of no more than 270 days; and

             (3) Is rated by a nationally recognized rating service as “A-1,” “P-1” or its equivalent, or better,

Ê except that investments pursuant to this paragraph may not, in aggregate value, exceed 20 percent of the total portfolio as determined on the date of purchase, and if the rating of an obligation is reduced to a level that does not meet the requirements of this paragraph, it must be sold as soon as possible.

      (l) Money market mutual funds which:

             (1) Are registered with the Securities and Exchange Commission;

             (2) Are rated by a nationally recognized rating service as “AAA” or its equivalent; and

             (3) Invest only in:

                   (I) Securities issued by the Federal Government or agencies of the Federal Government;

                   (II) Master notes, bank notes or other short-term commercial paper rated by a nationally recognized rating service as “A-1,” “P-1” or its equivalent, or better, issued by a corporation organized and operating in the United States or by a depository institution licensed by the United States or any state and operating in the United States; or

                   (III) Repurchase agreements that are fully collateralized by the obligations described in sub-subparagraphs (I) and (II).

      (m) Obligations of the Federal Agricultural Mortgage Corporation.

      2.  Repurchase agreements are proper and lawful investments of money of a governing body of a local government for the purchase or sale of securities which are negotiable and of the types listed in subsection 1 if made in accordance with the following conditions:

      (a) The governing body of the local government shall designate in advance and thereafter maintain a list of qualified counterparties which:

             (1) Regularly provide audited and, if available, unaudited financial statements;

             (2) The governing body of the local government has determined to have adequate capitalization and earnings and appropriate assets to be highly creditworthy; and

             (3) Have executed a written master repurchase agreement in a form satisfactory to the governing body of the local government pursuant to which all repurchase agreements are entered into. The master repurchase agreement must require the prompt delivery to the governing body of the local government and the appointed custodian of written confirmations of all transactions conducted thereunder, and must be developed giving consideration to the Federal Bankruptcy Act.

      (b) In all repurchase agreements:

             (1) At or before the time money to pay the purchase price is transferred, title to the purchased securities must be recorded in the name of the appointed custodian, or the purchased securities must be delivered with all appropriate, executed transfer instruments by physical delivery to the custodian;

             (2) The governing body of the local government must enter a written contract with the custodian appointed pursuant to subparagraph (1) which requires the custodian to:

                   (I) Disburse cash for repurchase agreements only upon receipt of the underlying securities;

                   (II) Notify the governing body of the local government when the securities are marked to the market if the required margin on the agreement is not maintained;

                   (III) Hold the securities separate from the assets of the custodian; and

                   (IV) Report periodically to the governing body of the local government concerning the market value of the securities;

             (3) The market value of the purchased securities must exceed 102 percent of the repurchase price to be paid by the counterparty and the value of the purchased securities must be marked to the market weekly;

             (4) The date on which the securities are to be repurchased must not be more than 90 days after the date of purchase; and

             (5) The purchased securities must not have a term to maturity at the time of purchase in excess of 10 years.

      3.  The securities described in paragraphs (a), (b) and (c) of subsection 1 and the repurchase agreements described in subsection 2 may be purchased when, in the opinion of the governing body of the local government, there is sufficient money in any fund of the local government to purchase those securities and the purchase will not result in the impairment of the fund for the purposes for which it was created.

      4.  When the governing body of the local government has determined that there is available money in any fund or funds for the purchase of bonds as set out in subsection 1 or 2, those purchases may be made and the bonds paid for out of any one or more of the funds, but the bonds must be credited to the funds in the amounts purchased, and the money received from the redemption of the bonds, as and when redeemed, must go back into the fund or funds from which the purchase money was taken originally.

      5.  Any interest earned on money invested pursuant to subsection 3, may, at the discretion of the governing body of the local government, be credited to the fund from which the principal was taken or to the general fund of the local government.

      6.  The governing body of a local government may invest any money apportioned into funds and not invested pursuant to subsection 3 and any money not apportioned into funds in bills and notes of the United States Treasury, the maturity date of which is not more than 1 year after the date of investment. These investments must be considered as cash for accounting purposes, and all the interest earned on them must be credited to the general fund of the local government.

      7.  This section does not authorize the investment of money administered pursuant to a contract, debenture agreement or grant in a manner not authorized by the terms of the contract, agreement or grant.

      8.  As used in this section:

      (a) “Counterparty” means a bank organized and operating or licensed to operate in the United States pursuant to federal or state law or a securities dealer which is:

             (1) A registered broker-dealer;

             (2) Designated by the Federal Reserve Bank of New York as a “primary” dealer in United States government securities; and

             (3) In full compliance with all applicable capital requirements.

      (b) “Local government” has the meaning ascribed to it in NRS 354.474.

      (c) “Repurchase agreement” means a purchase of securities by the governing body of a local government from a counterparty which commits to repurchase those securities or securities of the same issuer, description, issue date and maturity on or before a specified date for a specified price.

      [1:95:1945; 1943 NCL § 1987.01] + [2:95:1945; 1943 NCL § 1987.02]—(NRS A 1959, 36, 424; 1967, 275; 1969, 1087; 1971, 270; 1973, 1091; 1975, 268; 1979, 448, 1887; 1985, 2110; 1989, 1260; 1991, 106, 341, 343; 1993, 211, 2286, 2289; 1995, 1823; 1999, 1481; 2001, 598, 2296, 2327; 2003, 162; 2003, 20th Special Session, 281)

      NRS 355.171  Additional authorized investments for counties, cities and school districts; exceptions.

      1.  Except as otherwise provided in this section, a board of county commissioners, a board of trustees of a county school district or the governing body of an incorporated city may purchase for investment:

      (a) Notes, bonds and other unconditional obligations for the payment of money issued by corporations organized and operating in the United States that:

             (1) Are purchased from a registered broker-dealer;

             (2) At the time of purchase have a remaining term to maturity of no more than 5 years; and

             (3) Are rated by a nationally recognized rating service as “A” or its equivalent, or better.

      (b) Collateralized mortgage obligations that are rated by a nationally recognized rating service as “AAA” or its equivalent.

      (c) Asset-backed securities that are rated by a nationally recognized rating service as “AAA” or its equivalent.

      2.  With respect to investments purchased pursuant to paragraph (a) of subsection 1:

      (a) Such investments must not, in aggregate value, exceed 20 percent of the total portfolio as determined on the date of purchase;

      (b) Not more than 25 percent of such investments may be in notes, bonds and other unconditional obligations issued by any one corporation; and

      (c) If the rating of an obligation is reduced to a level that does not meet the requirements of that paragraph, the obligation must be sold as soon as possible.

      3.  Subsections 1 and 2 do not:

      (a) Apply to a:

             (1) Board of county commissioners of a county whose population is less than 100,000;

             (2) Board of trustees of a county school district in a county whose population is less than 100,000; or

             (3) Governing body of an incorporated city whose population is less than 150,000,

Ê unless the purchase is effected by the State Treasurer pursuant to his or her investment of a pool of money from local governments or by an investment adviser who is registered with the Securities and Exchange Commission and approved by the State Board of Finance.

      (b) Authorize the investment of money administered pursuant to a contract, debenture agreement or grant in a manner not authorized by the terms of the contract, agreement or grant.

      (Added to NRS by 2001, 597; A 2011, 1219)

      NRS 355.172  Possession of securities purchased by or for local government; security interest in lieu of possession.

      1.  Except as otherwise provided in NRS 355.178, any securities purchased as an investment of money by or on behalf of a local government, as defined in NRS 354.474, must remain in the possession of the county treasurer, the appropriate officer of that local government or a qualified bank or trust, throughout the period of the investment, except that any securities subject to repurchase by the seller may be evidenced by a fully perfected, first-priority security interest, as provided in subsection 3.

      2.  The county treasurer or the appropriate officer of a local government may physically possess those securities, which must be registered in the name of the local government, or may make an agreement, in writing, with any qualified bank or trust to hold those securities for, and in the name of, that local government. If such an agreement is made, the bank or trust shall furnish the county treasurer or the appropriate officer of the local government with a written statement acknowledging that it is so holding the securities.

      3.  If the securities purchased are subject to an arrangement for the repurchase of those securities by the seller thereof, the county treasurer, the appropriate officer of the local government or a qualified bank or trust may, in lieu of the requirement of possession, obtain the sole, fully perfected, first-priority security interest in those securities. If the bank or trust obtains such a security interest, it shall furnish the county treasurer or the appropriate officer of the local government with a written statement acknowledging that fact. Any securities so purchased must, at the time of purchase by or for a local government, have a fair market value equal to or greater than the repurchase price of the securities.

      4.  For the purposes of this section, a bank or trust is qualified to hold securities for a local government if the bank or trust is rated by a nationally recognized rating service as “AA-” or its equivalent, or better.

      (Added to NRS by 1985, 2109; A 1987, 1306; 1999, 927; 2005, 1346)

      NRS 355.175  Authority for investments; priority in case of conflicting orders concerning same money; disposition of interest.

      1.  The governing body of any local government or agency, whether or not it is included in the provisions of chapter 354 of NRS, may:

      (a) Direct its treasurer or other appropriate officer to invest its money or any part thereof in any investment which is lawful for a local government pursuant to NRS 355.170; or

      (b) Allow a county treasurer to make such investments through a pool as provided in NRS 355.168.

      2.  In case of conflict, any order made pursuant to paragraph (a) of subsection 1 takes precedence over any other order concerning the same money or funds pursuant to subsection 5 of NRS 355.170.

      3.  Any interest earned from investments made pursuant to this section must be credited, at the discretion of the local governing unit, to any fund under its control, but the designation of the fund must be made at the time of investment of the principal.

      (Added to NRS by 1967, 276; A 1985, 2112; 1993, 213, 2289; 2003, 20th Special Session, 284)

      NRS 355.176  Investment of money held pursuant to deferred compensation plan.  Any money held by a local government pursuant to a deferred compensation plan may be invested in the types of investments set forth in paragraphs (a) to (f), inclusive, of subsection 1 of NRS 355.170 and may additionally be invested in corporate stocks, bonds and securities, mutual funds, savings and loan accounts, credit union accounts, life insurance policies, annuities, mortgages, deeds of trust or other security interests in real or personal property.

      (Added to NRS by 1979, 801)—(Substituted in revision for part of NRS 355.170)

      NRS 355.177  Investment in own securities or interim warrants prohibited.  No governing body of any local government or agency, as defined in NRS 354.474, may invest any of its moneys, or any part thereof, in:

      1.  Its own securities of any kind.

      2.  Interim warrants from any source.

      (Added to NRS by 1969, 1087)

      NRS 355.178  Loans from investment portfolios of certain counties, cities or consolidated municipalities.

      1.  The governing body of a city whose population is 220,000 or more or a county whose population is 100,000 or more may lend securities from its investment portfolio if:

      (a) The investment portfolio has a value of at least $100,000,000;

      (b) The treasurer of the city or county:

             (1) Establishes a policy for investment that includes provisions which set forth the procedures to be used to lend securities pursuant to this section; and

             (2) Submits the policy established pursuant to subparagraph (1) to the city or county manager and prepares and submits to the city or county manager a monthly report that sets forth the securities that have been lent pursuant to this section and any other information relating thereto, including, without limitation, the terms of each agreement for the lending of those securities; and

      (c) The governing body receives collateral from the borrower in the form of cash or marketable securities that are:

             (1) Authorized pursuant to NRS 355.170, if the collateral is in the form of marketable securities; and

             (2) At least 102 percent of the value of the securities borrowed.

      2.  The governing body of a city or consolidated municipality whose population is 25,000 or more but less than 220,000 may lend securities from its investment portfolio if:

      (a) The investment portfolio has a value of at least $50,000,000;

      (b) The governing body is currently authorized to lend securities pursuant to subsection 5;

      (c) The treasurer of the city or consolidated municipality:

             (1) Establishes a policy for investment that includes provisions which set forth the procedures to be used to lend securities pursuant to this section; and

             (2) Submits the policy established pursuant to subparagraph (1) to the manager of the city, consolidated municipality or other local government and prepares and submits to the manager of the city, consolidated municipality or other local government a monthly report that sets forth the securities that have been lent pursuant to this section and any other information relating thereto, including, without limitation, the terms of each agreement for the lending of those securities; and

      (d) The governing body receives collateral from the borrower in the form of cash or marketable securities that are:

             (1) Authorized pursuant to NRS 355.170, if the collateral is in the form of marketable securities; and

             (2) At least 102 percent of the value of the securities borrowed.

      3.  The governing body of a city, county or consolidated municipality may enter into such contracts as are necessary to extend and manage loans pursuant to this section.

      4.  The total of investments made by a particular city, county or consolidated municipality with collateral received pursuant to subsection 1 or 2 must have an average weighted maturity of not more than 90 days.

      5.  The governing body of a city or consolidated municipality whose population is 25,000 or more but less than 220,000 shall not lend securities from its investment portfolio unless it has been authorized to do so by the State Board of Finance. The State Board of Finance shall adopt regulations that establish minimum standards for granting authorization pursuant to this subsection. Such an authorization is valid for 2 years and may be renewed by the State Board of Finance for additional 2-year periods.

      6.  As used in this section, “average weighted maturity” means the average length of time until the securities in which a particular city, county or consolidated municipality has invested with collateral received pursuant to subsection 1 or 2 will mature or be redeemed by their issuers, with the length of time of each individual security proportionally weighted according to the total dollar amount that the particular city, county or consolidated municipality has invested in that individual security with collateral received pursuant to subsection 1 or 2.

      (Added to NRS by 1999, 925; A 2001, 1979; 2003, 823; 2007, 2523; 2011, 1220)

INVESTMENT IN BONDS OF HOME OWNERS’ LOAN CORPORATION AND FEDERAL HOME LOAN BANK; LOANS AND ADVANCES INSURED BY FEDERAL HOUSING ADMINISTRATOR

      NRS 355.180  Bonds of Home Owners’ Loan Corporation and Federal Home Loan Bank are legal investments.  It shall be legal for this state and any of its departments or political subdivisions, or any political or public corporation, or any instrumentality of the State to invest their funds, or moneys in their custody, in the bonds of the Home Owners’ Loan Corporation or in the bonds of any Federal Home Loan Bank, or in consolidated Federal Home Loan Bank bonds, debentures or notes.

      [Part 1:61:1935; 1931 NCL § 3695.01]

      NRS 355.190  Loans and advances of credit by Federal Housing Administrator.

      1.  Subject to such regulations as may be prescribed by the Federal Housing Administrator, the State of Nevada and any city or county or instrumentality thereof are authorized:

      (a) To make such loans and advances of credit, and purchases of obligations representing the loans and advances of credit, as are eligible for insurance by the Federal Housing Administrator, and to obtain such insurance.

      (b) To make such loans secured by mortgage on real property as are eligible for insurance by the Federal Housing Administrator, and to obtain such insurance.

      (c) To purchase, invest in, and dispose of notes or bonds secured by mortgage insured by the Federal Housing Administrator, securities of national mortgage associations, and debentures issued by the Federal Housing Administrator.

      2.  No law of this state prescribing the nature, amount or form of security or requiring security upon which loans or advances of credit may be made, or prescribing or limiting interest rates upon loans or advances of credit, or prescribing or limiting the period for which loans or advances of credit may be made, shall apply to loans, advances of credit or purchases made pursuant to subsection 1.

      3.  All loans, advances of credit, and purchases of obligations described in this section heretofore made and insured pursuant to the terms of the National Housing Act are hereby validated and confirmed.

      [Part 1:58:1935; A 1937, 147; 1939, 43; 1931 NCL § 3652.01] + [Part 2:58:1935; 1931 NCL § 3652.02] + [3:58:1935; 1931 NCL § 3652.03]

      NRS 355.200  Depositary bonds.

      1.  Whenever by the terms of any general or special law depositaries of public or other funds are required by law to give security therefor, the bonds of any Federal Home Loan Bank or the bonds of the Home Owners’ Loan Corporation, or consolidated Federal Home Loan Bank bonds, debentures or notes may be used as security for any depositary bonds or obligations wherein any kind of bonds or other security are required or may by law be deposited as security.

      2.  Whenever collateral must or may be furnished by any depositary of the State of Nevada as security for the deposit of any funds whatever, or whenever collateral must or may be deposited with any official of the State of Nevada pursuant to any statute of this state, notes and bonds insured and debentures issued by the Federal Housing Administrator and obligations of national mortgage associations shall be considered eligible collateral for such purposes.

      [4:58:1935; added 1937, 147; A 1939, 43; 1931 NCL § 3652.03a] + [2:61:1935; 1931 NCL § 3695.02]

INVESTMENT OF MONEY DEPOSITED IN COURT

      NRS 355.210  Conditions and requirements for investment.

      1.  Except as otherwise provided in subsection 2, when any money has been deposited in any court pursuant to law or rule of court, and when in the judgment of the clerk of the court, or the judge thereof if there is no clerk, payment out of the deposit will not be required for 90 days or more, the clerk or the judge, as the case may be, may invest the money so deposited, either alone or by commingling it with other money deposited.

      2.  If money has been deposited in any court pursuant to chapter 37 of NRS, the money must be kept in a separate account and invested.

      3.  The investment may be made:

      (a) By deposit at interest in a state or national bank or credit union in the State of Nevada; or

      (b) In bills, bonds, debentures, notes or other securities whose purchase by a board of county commissioners is authorized by NRS 355.170.

      4.  Except as otherwise provided in NRS 37.280, the interest earned from any investment of money pursuant to this section must be deposited to the credit of the general fund of the political subdivision or municipality which supports the court.

      5.  The requirements of this section may be modified by an ordinance adopted pursuant to the provisions of NRS 244.207, except the requirements of subsection 2.

      (Added to NRS by 1971, 657; A 1973, 1684; 1999, 1485; 2007, 752)

INVESTMENT OF MONEY FOR PROVISION OF RETIREMENT BENEFITS

      NRS 355.220  Retirement Benefits Investment Board: Creation; membership; powers and duties.

      1.  The Retirement Benefits Investment Board is hereby created. The membership of the Board consists of the members of the Public Employees’ Retirement Board, who shall serve in that capacity ex officio and without any additional compensation.

      2.  The Board shall establish and administer a fund to be known as the Retirement Benefits Investment Fund for the investment of money deposited with the Board pursuant to subsection 6 or NRS 287.017. Any money received by the Board pursuant to subsection 6 or NRS 287.017 shall be deemed to be held for investment purposes only and not in any fiduciary capacity. Any money in the Fund must be invested in the same manner as money in the Public Employees’ Retirement Fund is invested. The interest and income earned on the money in the Fund, after deducting any applicable charges, must be credited to the Fund.

      3.  Money in the Fund may be transferred to the State Retirees’ Health and Welfare Benefits Fund created by NRS 287.0436 to be used for the purposes specified in NRS 287.0436.

      4.  The Board may assess reasonable charges against the Fund for the payment of its expenses in administering the Fund. Except as otherwise provided in subsection 3, no other money may be withdrawn from the Fund except as directed by the board responsible for that money pursuant to subsection 6 or NRS 287.017, as applicable.

      5.  Except as otherwise provided in this section, the Board has the same powers and duties in carrying out the provisions of this section as those pertaining to the administration of the Public Employees’ Retirement Fund by the Public Employees’ Retirement Board. The Retirement Benefits Investment Board may employ such staff and contract for the provision of such management, investment and other services, including, without limitation, the services of accountants, actuaries, attorneys and investment managers, as are necessary for the administration of the Fund and to carry out the provisions of this section.

      6.  Notwithstanding any other provision of law, the Board of the Public Employees’ Benefits Program may deposit any of the assets of the Public Employees’ Benefits Program in the Fund for purposes of investment if it obtains an opinion from its legal counsel that the investment of those assets in accordance with this section will not violate any of the provisions of Sections 9 and 10 of Article 8 of the Nevada Constitution.

      7.  As used in this section, unless the context otherwise requires:

      (a) “Board” means the Retirement Benefits Investment Board created pursuant to this section.

      (b) “Fund” means the Retirement Benefits Investment Fund created pursuant to this section.

      (Added to NRS by 2007, 903; A 2010, 26th Special Session, 12)

INVESTMENT IN CORPORATION FOR PUBLIC BENEFIT THAT PROVIDES PRIVATE EQUITY FUNDING FOR CERTAIN BUSINESSES

      NRS 355.250  Definitions.  As used in NRS 355.250 to 355.285, inclusive, unless the context otherwise requires, the words and terms defined in NRS 355.255, 355.260 and 355.265 have the meanings ascribed to them in those sections.

      (Added to NRS by 2011, 2581)

      NRS 355.255  “Corporation for public benefit” defined.  “Corporation for public benefit” means a corporation that is recognized as exempt pursuant to section 501(c)(3) of the Internal Revenue Code of 1986, future amendments to that section and the corresponding provisions of future internal revenue laws.

      (Added to NRS by 2011, 2581)

      NRS 355.260  “Private equity funding” defined.  “Private equity funding” means an investment in or a purchase of securities in operating businesses that are not publicly traded on a stock exchange.

      (Added to NRS by 2011, 2581)

      NRS 355.265  “Venture capital” defined.  “Venture capital” means equity, near-equity and seed capital financing, including, without limitation, early stage research and development capital for start-up enterprises, and other equity, near-equity or seed capital for growth and expansion of entrepreneurial enterprises.

      (Added to NRS by 2011, 2581)

      NRS 355.270  Corporation for public benefit: Formation and purpose; composition, chair, compensation and duties of board of directors.

      1.  The State Treasurer shall cause to be formed in this State an independent corporation for public benefit, the general purpose of which is to act as a limited partner of limited partnerships or a shareholder or member of limited-liability companies that provide private equity funding to businesses:

      (a) Located in this State or seeking to locate in this State; and

      (b) Engaged primarily in one or more of the following industries:

             (1) Health care and life sciences.

             (2) Cyber security.

             (3) Homeland security and defense.

             (4) Alternative energy.

             (5) Advanced materials and manufacturing.

             (6) Information technology.

             (7) Any other industry that the board of directors of the corporation for public benefit determines will likely meet the targets for investment returns established by the corporation for public benefit for investments authorized by NRS 355.250 to 355.285, inclusive, and comply with sound fiduciary principles.

      2.  The corporation for public benefit created pursuant to subsection 1 must have a board of directors consisting of:

      (a) Five members from the private sector who have at least 10 years of experience in the field of investment, finance or banking and who are appointed for a term of 4 years as follows:

             (1) One member appointed by the Governor;

             (2) One member appointed by the Senate Majority Leader;

             (3) One member appointed by the Speaker of the Assembly;

             (4) One member appointed by the Senate Minority Leader; and

             (5) One member appointed by the Assembly Minority Leader;

      (b) The Chancellor of the Nevada System of Higher Education or his or her designee;

      (c) The State Treasurer; and

      (d) With the approval of a majority of the members of the board of directors described in subparagraphs (1), (2) and (3) of paragraph (a), up to 5 additional members who are direct investors in the corporation for public benefit.

      3.  Vacancies in the appointed positions on the board of directors of the corporation for public benefit created pursuant to subsection 1 must be filled by the appointing authority for the unexpired term.

      4.  The State Treasurer shall serve as chair of the board of directors of the corporation for public benefit created pursuant to subsection 1.

      5.  The members of the board of directors of the corporation for public benefit must serve without compensation but are entitled to be reimbursed for actual and necessary expenses incurred in the performance of their duties, including, without limitation, travel expenses.

      6.  A member of the board of directors of the corporation for public benefit created pursuant to subsection 1 must not have an equity interest in any:

      (a) External asset manager or venture capital or private equity investment firm contracting with the board pursuant to NRS 355.275; or

      (b) Business which receives private equity funding pursuant to NRS 355.250 to 355.285, inclusive.

      7.  The board of directors of the corporation for public benefit created pursuant to subsection 1 shall:

      (a) Comply with the provisions of chapter 281A of NRS.

      (b) Meet at least quarterly and conduct any meetings of the board of directors in accordance with chapter 241 of NRS.

      (c) Review the performance of all external asset managers and venture capital and private equity investment firms contracting with the corporation for public benefit pursuant to NRS 355.275.

      (d) On or before December 1 of each year, provide an annual report to the Governor and the Director of the Legislative Counsel Bureau for transmission to the next session of the Legislature, if the report is submitted in an even-numbered year or to the Legislative Commission, if the report is submitted in an odd-numbered year. The report must include, without limitation:

             (1) An accounting of all money received and expended by the corporation for public benefit, including, without limitation, any matching grant funds, gifts or donations; and

             (2) The name and a brief description of all businesses receiving an investment of money pursuant to the provisions of NRS 355.250 to 355.285, inclusive.

      (Added to NRS by 2011, 2581)

      NRS 355.275  Corporation for public benefit: Placement of investments; use of money received from State Permanent School Fund.

      1.  The corporation for public benefit may place investments through the use or assistance of:

      (a) External asset managers; or

      (b) Private equity investment firms.

      2.  Money received pursuant to NRS 355.280 by the corporation for public benefit may be used to make venture capital investments.

      (Added to NRS by 2011, 2582)

      NRS 355.280  Transfer of money from State Permanent School Fund to corporation for public benefit: Prerequisites; maximum amount.  If the State Treasurer obtains the judicial determination required by subsection 3 of NRS 355.060, the State Treasurer may transfer an amount not to exceed $50 million from the State Permanent School Fund to the corporation for public benefit. Such a transfer must be made pursuant to an agreement that requires the corporation for public benefit to:

      1.  Provide, through the limited partnerships or limited-liability companies described in subsection 1 of NRS 355.270, private equity funding; and

      2.  Ensure that at least 70 percent of all private equity funding provided by the corporation for public benefit is provided to businesses:

      (a) Located in this State or seeking to locate in this State; and

      (b) Engaged primarily in one or more of the following industries:

             (1) Health care and life sciences.

             (2) Cyber security.

             (3) Homeland security and defense.

             (4) Alternative energy.

             (5) Advanced materials and manufacturing.

             (6) Information technology.

             (7) Any other industry that the board of directors of the corporation for public benefit determines will likely meet the targets for investment returns established by the corporation for public benefit for investments authorized by NRS 355.250 to 355.285, inclusive, and comply with sound fiduciary principles.

      (Added to NRS by 2011, 2582)

      NRS 355.285  State Treasurer: Powers and duties.  The State Treasurer:

      1.  May adopt such regulations as he or she deems necessary to carry out the provisions of NRS 355.250 to 355.285, inclusive.

      2.  Shall adopt regulations:

      (a) Requiring the performance of audits and the submission of reports to ensure compliance with the provisions of NRS 355.250 to 355.285, inclusive, and the regulations adopted pursuant to this section;

      (b) Providing for appropriate leveraging of investments to ensure that investments consist of money transferred from the State Permanent School Fund pursuant to NRS 355.280 and money from private sources;

      (c) Establishing a range or cap on servicing fees;

      (d) Establishing limits on the amount or percentage of investment in a single venture capital project or by a fund manager; and

      (e) Requiring the return of the corpus of investments after a defined investment period.

      3.  May adopt regulations which include, without limitation, criteria for determining eligibility for and use of private equity funding, but the corporation for public benefit must have sole authority for the approval of applications for and the management of private equity funding provided pursuant to NRS 355.250 to 355.285, inclusive.

      4.  May, by regulation, establish a Business Leadership Council. The members of the Business Leadership Council must serve without compensation and are subject to the provisions of chapter 281A of NRS.

      5.  Shall provide the corporation for public benefit with such assistance as is necessary to carry out the provisions of NRS 355.250 to 355.285, inclusive, and comply with the regulations adopted pursuant to this section.

      6.  Shall ensure that businesses receiving venture capital investments pursuant to NRS 355.250 to 355.285, inclusive, have a presence in this State as evidenced by:

      (a) Being domiciled in this State;

      (b) Having a headquarters in this State;

      (c) Having a significant percentage of employees residing in this State; or

      (d) Being in the process of expanding in this State or relocating to this State.

      (Added to NRS by 2011, 2583)