(a) With the consent of the general manager, who shall seek consent from the board when deemed necessary, the chief financial officer may:
(1) Authorize any state or national bank in this state, a federally chartered or state chartered savings and loan association, or a trust company authorized to act as such in this state, to receive as the agent of the chief financial officer deposits of any securities acquired by the district.
(2) Place and maintain for safekeeping with any state or national bank in this state, a federally chartered or state chartered savings and loan association, or a trust company authorized to act as such in this state, any securities owned by the district.
(3) Make deposits of securities for safekeeping pursuant to the provisions of Section 53608 of the Government Code.
(b) The financial institution selected pursuant to subdivision (a) shall have a total paid-in capital of at least one million dollars ($1,000,000). The chief financial officer shall take from the financial institution a receipt for the securities, and neither the chief financial officer nor the district is responsible for the custody and safe return of the securities until they are withdrawn from the financial institution by the chief financial officer. Any financial institution to which securities are delivered, either as agent or depositary for the chief financial officer, shall make such disposition of the securities as the chief financial officer directs and is responsible only for strict compliance with written instructions given to it by the chief financial officer. All such securities are at all times subject to the order of the chief financial officer.
(Amended by Stats. 2024, Ch. 106, Sec. 4. (AB 2325) Effective January 1, 2025.)