TRUST INVESTMENT - 19460

Agencies/Departments shall obtain prior approval from the Department of Finance before investing funds or engaging in the sale or exchange of securities. Agencies/Departments listed in Government Code section 11012 or exempted by other statutes do not require prior Finance approval.

Agencies/Departments shall ensure that the bank or savings and loan association is insured by the Federal Deposit Insurance Corporation (FDIC) and the credit union is insured by the National Credit Union Association (NCUA). Agencies/Departments shall obtain Finance approval for any securities transactions exceeding $25,000 and account balances exceeding the FDIC or NCUA limit for each financial institution. Upon approval by Finance, agencies/departments may deposit over the FDIC or NCUA limit in any one financial institution if they notify the State Treasurer’s Office that the collateral requirement has been met. For a description of collateral requirements, see SAM Section 8002.

Agencies/Departments should deposit or invest trust money not under the custody of the State Treasurer only if the interest earnings will either:

• Accrue to the individual accounts or directly benefit a group of wards, patients, students, or inmates.
• Accrue to a trust account or fund established for gifts and donations that is dedicated to assisting wards, patients, students, or inmates.
• Affect the charges for auxiliary nonprofit and nonstate supported activities and services furnished to wards, patients, students, or inmates.