1-2 new section to read as follows:

2-12 created as an agency fund to be administered by the state treasurer.

2-13 2. Any local government, as defined in NRS 354.474, may deposit its

2-14 money with the state treasurer for credit to the fund for purposes of

2-15 investment.

2-16 3. The state treasurer may invest the money of the fund:

2-17 (a) In securities which have been authorized as investments for a local

2-18 government by any provision of NRS or any special law.

2-19 (b) In time certificates of deposit in the manner provided by NRS

2-20 356.015.

2-21 4. The state treasurer may lend securities in which he invests

2-22 pursuant to subsection 3 or NRS 355.165 if he receives collateral from the

2-23 borrower in the form of cash or marketable securities that are:

2-24 (a) Acceptable to the state treasurer; and

2-25 (b) At least 102 percent of the value of the securities borrowed.

2-26 The state treasurer may enter into such contracts as are necessary to

2-27 extend and manage loans pursuant to this subsection.

2-28 5. Each local government [which] that elects to deposit money with the

2-29 state treasurer for such an investment must:

2-30 (a) Upon the deposit, inform him in writing how long a period the money

2-31 is expected to be available for investment.

2-32 (b) At the end of the period, notify him in writing whether it wishes to

2-33 extend the period.

2-34 [5.] 6. If a local government wishes to withdraw any of its money

2-35 before the end of the period of investment, it must make a written request to

2-36 the state treasurer. Whenever he is required to sell or liquidate invested

2-37 securities because of a request for early withdrawal, any penalties or loss of

2-38 interest incurred must be charged against the deposit of the local

2-39 government which requested the early withdrawal.

2-40 [6.] 7. All interest received on money of the fund must be deposited for

2-41 credit to the fund.

3-20 act, any securities purchased as an investment of money by or on behalf of a

3-21 local government, as defined in NRS 354.474, must remain in the

3-22 possession of the county treasurer, the appropriate officer of that local

3-23 government or a bank, as provided in subsection 2, throughout the period of

3-24 the investment, except that any securities subject to repurchase by the seller

3-25 may be evidenced by a fully perfected, first-priority security interest, as

3-26 provided in subsection 3.

3-27 2. The county treasurer or the appropriate officer of a local government

3-28 may physically possess those securities, which must be in bearer form or

3-29 registered in the name of the local government, or may make an agreement,

3-30 in writing, with the trust department of any bank insured by the Federal

3-31 Deposit Insurance Corporation to hold those securities in trust for that local

3-32 government. If such an agreement is made, the trust department shall furnish

3-33 the county treasurer or the appropriate officer of the local government with

3-34 a written statement acknowledging that it is so holding the securities.

3-35 3. If the securities purchased are subject to an arrangement for the

3-36 repurchase of those securities by the seller thereof, the county treasurer, the

3-37 appropriate officer of the local government or a trust department of a bank,

3-38 as provided in subsection 2, may, in lieu of the requirement of possession,

3-39 obtain the sole, fully perfected, first-priority security interest in those

3-40 securities. If the trust department of a bank obtains such a security interest,

4-6 new section to read as follows:

4-7 1. The division may lend any securities in which it invests pursuant to

4-8 NRS 319.170 if the division receives collateral from the borrower in the

4-9 form of cash or marketable securities that are:

4-10 (a) Acceptable to the division; and

4-11 (b) At least 102 percent of the value of the securities borrowed.

4-12 2. The division may enter into such contracts as are necessary to