1-2 new section to read as follows:

1-3 1. The governing body of a local government may lend securities

1-4 from the investment portfolio of the local government if the governing

1-5 body receives collateral from the borrower in the form of cash or

1-6 marketable securities that are:

1-7 (a) Acceptable to the governing body; and

1-8 (b) At least equal to the value of the securities borrowed.

1-9 2. The governing body of a local government may enter into such

1-10 contracts as are necessary to extend and manage loans pursuant to this

1-11 section.

1-12 3. As used in this section:

1-13 (a) "Governing body" means the board, council, commission or other

1-14 body in which the general legislative and fiscal powers of a local

1-15 government are vested.

1-16 (b) "Local government" means a political subdivision or other entity

1-17 that has the right to levy or receive money from ad valorem or other taxes

1-18 or any mandatory assessments, including, without limitation, counties,

2-7 created as an agency fund to be administered by the state treasurer.

2-8 2. Any local government, as defined in NRS 354.474, may deposit its

2-9 money with the state treasurer for credit to the fund for purposes of

2-10 investment.

2-11 3. The state treasurer may invest the money of the fund:

2-12 (a) In securities which have been authorized as investments for a local

2-13 government by any provision of NRS or any special law.

2-14 (b) In time certificates of deposit in the manner provided by NRS

2-15 356.015.

2-16 4. The state treasurer may lend securities in which he invests

2-17 pursuant to subsection 3 or NRS 355.165 if he receives collateral from the

2-18 borrower in the form of cash or marketable securities that are:

2-19 (a) Acceptable to the state treasurer; and

2-20 (b) At least equal to the value of the securities borrowed.

2-21 The state treasurer may enter into such contracts as are necessary to

2-22 extend and manage loans pursuant to this subsection.

2-23 5. Each local government [which] that elects to deposit money with the

2-24 state treasurer for such an investment must:

2-25 (a) Upon the deposit, inform him in writing how long a period the money

2-26 is expected to be available for investment.

2-27 (b) At the end of the period, notify him in writing whether it wishes to

2-28 extend the period.

2-29 [5.] 6. If a local government wishes to withdraw any of its money

2-30 before the end of the period of investment, it must make a written request to

2-31 the state treasurer. Whenever he is required to sell or liquidate invested

2-32 securities because of a request for early withdrawal, any penalties or loss of

2-33 interest incurred must be charged against the deposit of the local

2-34 government which requested the early withdrawal.

2-35 [6.] 7. All interest received on money of the fund must be deposited for

2-36 credit to the fund.

2-37 [7.] 8. The state treasurer may assess reasonable charges against the

2-38 fund for reimbursement of the expenses which he incurs in administering the

2-39 fund. The amount of the assessments must be transferred to an account

2-40 within the state general fund for use of the state treasurer in carrying out the

2-41 provisions of this section.

2-42 [8.] 9. At the end of each quarter of each fiscal year, the state treasurer

3-13 act, any securities purchased as an investment of money by or on behalf of a

3-14 local government, as defined in NRS 354.474, must remain in the

3-15 possession of the county treasurer, the appropriate officer of that local

3-16 government or a bank, as provided in subsection 2, throughout the period of

3-17 the investment, except that any securities subject to repurchase by the seller

3-18 may be evidenced by a fully perfected, first-priority security interest, as

3-19 provided in subsection 3.

3-20 2. The county treasurer or the appropriate officer of a local government

3-21 may physically possess those securities, which must be in bearer form or

3-22 registered in the name of the local government, or may make an agreement,

3-23 in writing, with the trust department of any bank insured by the Federal

3-24 Deposit Insurance Corporation to hold those securities in trust for that local

3-25 government. If such an agreement is made, the trust department shall furnish

3-26 the county treasurer or the appropriate officer of the local government with

3-27 a written statement acknowledging that it is so holding the securities.

3-28 3. If the securities purchased are subject to an arrangement for the

3-29 repurchase of those securities by the seller thereof, the county treasurer, the

3-30 appropriate officer of the local government or a trust department of a bank,

3-31 as provided in subsection 2, may, in lieu of the requirement of possession,

3-32 obtain the sole, fully perfected, first-priority security interest in those

3-33 securities. If the trust department of a bank obtains such a security interest,

3-34 it shall furnish the county treasurer or the appropriate officer of the local

3-35 government with a written statement acknowledging that fact. Any securities

3-36 so purchased must, at the time of purchase by or for a local government,

3-37 have a fair market value equal to or greater than the repurchase price of the

4-15 new section to read as follows:

4-16 1. The division may lend any securities in which it invests pursuant to

4-17 NRS 319.170 if the division receives collateral from the borrower in the

4-18 form of cash or marketable securities that are:

4-19 (a) Acceptable to the division; and

4-20 (b) At least equal to the value of the securities borrowed.

4-21 2. The division may enter into such contracts as are necessary to