reglab/statecodes huggingface dataset:
2023 Montana Code Annotated › Title 17. State Finance › Chapter 5. Public Bond Issues › Part 16. Municipal Finance Consolidation Act › 17-5-1641. Investment

17-5-1641. Investment.
(1) Unless otherwise required by a resolution or agreement of the board, the board may invest funds coming under its control pursuant to this part in the same manner as permitted for investment of funds belonging to the state or held by the state treasurer.
(2) Funds from several or all accounts may be combined for investment, and any interest earned shall be prorated and credited to the various contributing accounts on the basis of the amounts thereof invested, calculated according to an average periodic balance or other generally accepted accounting principle. Such proration must be calculated at least once a year or upon a specific request made to the board.
(3) All securities purchased by the board as an investment remain in the custody of the state treasurer until the same are sold, exchanged, retired, or mature and are paid.
History: En. Sec. 23, Ch. 620, L. 1983.
2023 Montana Code Annotated › Title 17. State Finance › Chapter 5. Public Bond Issues › Part 16. Municipal Finance Consolidation Act › 17-5-1642. Credit of state not pledged

17-5-1642. Credit of state not pledged.
Obligations issued under the provisions of this part do not constitute a liability or obligation or a pledge of the faith and credit of the state but are payable solely from revenues or funds of the board generated or received for purposes of this part. An obligation issued under this part must contain on the face thereof a statement to the effect that the state of Montana is not liable on the obligation and the obligation is not a debt of the state and neither the faith and credit nor the taxing power of the state is pledged to the payment of the principal of or the interest on the obligation.
History: En. Sec. 24, Ch. 620, L. 1983.
2023 Montana Code Annotated › Title 17. State Finance › Chapter 5. Public Bond Issues › Part 16. Municipal Finance Consolidation Act › 17-5-1643. Sale or exchange of securities

17-5-1643. Sale or exchange of securities.
(1) Notwithstanding any law applicable to or constituting any limitation on the maximum rate of interest per year payable on bonds or notes or to annual interest cost to maturity of money borrowed or received upon issuance of bonds or notes, an eligible government unit is authorized to contract to pay interest on or an interest cost per year for money borrowed from the board and evidenced by the eligible government unit securities purchased by the board without regard to any statutory limitations as to rate of interest per year payable or as to annual interest cost to maturity of money borrowed by the eligible government unit. An eligible government unit is authorized to contract with the board with respect to the loan or purchase, and the contract must contain the terms and conditions of the loan or purchase. An eligible government unit is authorized to pay fees and charges required to be paid to the board for its services.
(2) Notwithstanding any law applicable to or constituting any limitation on the sale of bonds or notes except the limitation on amount of bonded indebtedness, an eligible government unit may sell bonds or notes to the board by private negotiated sale, without limitation as to denomination. The bonds or notes may be fully registered or registerable as to principal only or in bearer form or may bear interest at the rate or rates, all in accordance with this section. The bonds or notes may be evidenced in the manner and may contain other provisions not inconsistent with this part and may be sold to the board without advertisement at the price or prices as may be determined, all as provided in the proceedings of the governing body of the eligible government unit pursuant to which the bonds or notes are authorized to be issued. The governing body of the eligible government unit may provide for the exchange of coupon bonds for fully registered bonds and of fully registered bonds for coupon bonds and for the exchange of any such bonds after issuance for bonds of larger or smaller denominations, all in the manner provided in the proceedings authorizing their issuance. The bonds in changed form or denominations must be exchanged for the surrendered bonds in the same aggregate principal amounts and in a manner that no overlapping interest is paid and the bonds in changed form or denominations bear interest at the same rate or rates and mature on the same date or dates as the bonds for which they are exchanged. If any exchange is made under this subsection, the bonds surrendered by the holders at the time of the exchange must be canceled. The exchange may be made only at the request of the holders of the bonds to be surrendered. The eligible government unit may require all expenses incurred in connection with the exchange to be paid by the holders.
History: En. Sec. 25, Ch. 620, L. 1983; amd. Sec. 8, Ch. 208, L. 1995.
2023 Montana Code Annotated › Title 17. State Finance › Chapter 5. Public Bond Issues › Part 16. Municipal Finance Consolidation Act › 17-5-1644. Care and custody of bonds purchased by the board

17-5-1644. Care and custody of bonds purchased by the board.
The board may:
(1) enter into agreements or contracts with a bank, trust company, or financial institution, inside or outside the state, as may be necessary, desirable, or convenient, in the opinion of the board, for rendering services in connection with:
(a) the care, custody, or safekeeping of bonds or other investments held or owned by the board pursuant to this part;
(b) the payment or collection of amounts payable as to principal or interest; and
(c) the delivery to the board of bonds or other investments purchased by it or sold by it pursuant to this part;
(2) pay the cost of those services; and
(3) in connection with any of the services to be rendered by a bank, trust company, or financial institution as to the custody and safekeeping of its bonds or investments, require security in the form of collateral bonds, surety agreements, or security agreements in a form and amount as, in the opinion of the board, is necessary or desirable.
History: En. Sec. 26, Ch. 620, L. 1983; amd. Sec. 9, Ch. 208, L. 1995.
2023 Montana Code Annotated › Title 17. State Finance › Chapter 5. Public Bond Issues › Part 16. Municipal Finance Consolidation Act › 17-5-1645. Insurance or guaranty

17-5-1645. Insurance or guaranty.
The board may obtain, from a department or agency of the United States or a nongovernmental insurer, insurance or guaranty for the payment or repayment of interest or principal, or both, or any part of interest or principal on bonds or notes issued by the board or on bonds, bond anticipation notes, or notes of eligible government units purchased or held by the board.
History: En. Sec. 27, Ch. 620, L. 1983; amd. Sec. 10, Ch. 208, L. 1995.
2023 Montana Code Annotated › Title 17. State Finance › Chapter 5. Public Bond Issues › Part 16. Municipal Finance Consolidation Act › 17-5-1646. Default in payment

17-5-1646. Default in payment.
If the board or eligible government unit defaults in the payment of principal or interest on an issue of notes or bonds after they become due, whether at maturity or upon call for redemption, and the default continues for 30 days or if the board or eligible government unit fails or refuses to comply with this part or defaults in an agreement made with the holders of an issue of notes or bonds, the holders of 25% of the aggregate principal amount of the outstanding notes or bonds of that issue have the right, upon proper application to a court of competent jurisdiction, to have a trustee appointed to represent the holders of those notes or bonds for the purposes provided in this part.
History: En. Sec. 28, Ch. 620, L. 1983; amd. Sec. 11, Ch. 208, L. 1995.
2023 Montana Code Annotated › Title 17. State Finance › Chapter 5. Public Bond Issues › Part 16. Municipal Finance Consolidation Act › 17-5-1647. Powers and duties of trustee on default

17-5-1647. Powers and duties of trustee on default.
(1) A trustee appointed under 17-5-1646 may:
(a) by civil action enforce all rights of the noteholders or bondholders, including the right to require the board or eligible government unit to collect rates, charges, and other fees and to collect interest and amortization payments on bonds and notes held by them adequate to carry out a pledge of or an agreement as to the rates, charges, and other fees and of the interest and amortization payments and the right to require the board or eligible government unit to carry out any other agreements with the holders of the notes or bonds and to perform their duties under this part;
(b) bring a civil action upon the notes or bonds;
(c) by civil action require the board or eligible government unit to account as if it were the trustee of an express trust for the holders of the notes or bonds;
(d) by civil action enjoin anything that may be unlawful or in violation of the rights of the holders of the notes or bonds;
(e) declare all the notes or bonds due and payable and, if all defaults are made good, then, with the consent of the holders of 25% of the principal amount of the outstanding notes or bonds, annul the declaration and its consequences.
(2) The trustee, in addition to the powers stated in subsection (1), has all the powers necessary for the exercise of functions specifically set out or incident to the general representation of bondholders or noteholders in the enforcement and protection of their rights.
(3) Before declaring the principal of notes or bonds due and payable, the trustee shall give 30 days' notice in writing to the governor, the attorney general, and the board or eligible government unit defaulting.
History: En. Sec. 29, Ch. 620, L. 1983; amd. Sec. 12, Ch. 208, L. 1995.
2023 Montana Code Annotated › Title 17. State Finance › Chapter 5. Public Bond Issues › Part 16. Municipal Finance Consolidation Act › 17-5-1648. Exemption from execution and sale

17-5-1648. Exemption from execution and sale.
All property of the board, other than its revenues or funds received pursuant to this part, is exempt from levy and sale by virtue of an execution, and no execution or other judicial process may issue against such property. A judgment against the board constitutes a charge or lien upon such property.
History: En. Sec. 30, Ch. 620, L. 1983.
2023 Montana Code Annotated › Title 17. State Finance › Chapter 5. Public Bond Issues › Part 16. Municipal Finance Consolidation Act › 17-5-1649. Annual audit

17-5-1649. Annual audit.
The board's books and records must be audited at least once each fiscal year by or at the direction of the legislative auditor. The actual costs of the audit shall be paid from the board's funds.
History: En. Sec. 31, Ch. 620, L. 1983; amd. Sec. 2, Ch. 308, L. 1985; amd. Sec. 3, Ch. 94, L. 1987.
2023 Montana Code Annotated › Title 17. State Finance › Chapter 5. Public Bond Issues › Part 16. Municipal Finance Consolidation Act › 17-5-1650. Annual report

17-5-1650. Annual report.
(1) By December 31 of each year, the board shall publish a financial report for distribution to the governor, the legislature, and the public. Except as provided in subsection (2), distribution to the legislature is accomplished by providing a copy to a legislator on request.
(2) Subject to 5-11-222(5), a report demonstrating the requirements of subsections (1) and (3) must be provided to the legislature in accordance with 5-11-210.
(3) The report must include:
(a) a statement of the board's current financial position with respect to its activities under this part;
(b) a summary of its activities pursuant to this part during the previous year including:
(i) a listing of the eligible governmental securities purchased by the board;
(ii) a listing of the bonds and notes sold by the board; and
(iii) a summary of the performance of any other investments of the board's funds received under this part;
(c) an estimate of the levels of activities for the next year; and
(d) a comparison of the activities during the previous year with the estimates of those activities that were made in the previous annual report.
History: En. Sec. 32, Ch. 620, L. 1983; amd. Sec. 4, Ch. 94, L. 1987; amd. Sec. 23, Ch. 112, L. 1991; amd. Sec. 20, Ch. 349, L. 1993; amd. Sec. 13, Ch. 208, L. 1995; amd. Sec. 56, Ch. 545, L. 1995; amd. Sec. 39, Ch. 261, L. 2021; amd. Sec. 3, Ch. 496, L. 2023.
2023 Montana Code Annotated › Title 17. State Finance › Chapter 5. Public Bond Issues › Part 16. Municipal Finance Consolidation Act › 17-5-1651. Limitations on board's power

17-5-1651. Limitations on board's power.
Under this part, the board may not:
(1) make loans of money to any person, firm, or corporation other than an eligible government unit or purchase securities issued by any person, firm, or corporation other than an eligible government unit as provided in this part;
(2) emit bills of credit, accept deposits of money for time or demand deposit, engage in any form or manner in the conduct of any private or commercial banking business, or act as a savings bank or savings and loan association;
(3) be or constitute a bank or trust company within the jurisdiction or under the control of the department of administration or the comptroller of the currency of the United States department of the treasury;
(4) be or constitute a bank, banker, or dealer in securities within the meaning of or subject to the provisions of any securities, securities exchange, or securities dealers law of the United States or of this state or of any other state.
History: En. Sec. 33, Ch. 620, L. 1983; amd. Sec. 14, Ch. 208, L. 1995; amd. Sec. 44, Ch. 483, L. 2001; amd. Sec. 8, Ch. 23, L. 2023.
2023 Montana Code Annotated › Title 17. State Finance › Chapter 5. Public Bond Issues › Part 20. Procurement of Vehicles and Equipment › 17-5-2001. Loans to state agencies

17-5-2001.  Loans to state agencies.
(1) An agency responsible for the procurement and provision of vehicles, automated systems, and equipment using an enterprise fund or an internal service fund, as described in 17-2-102, is authorized to enter into contracts, loan agreements, or other forms of indebtedness payable over a term not to exceed 7 years for the purpose of financing the cost of the vehicles and equipment and to pledge to the repayment of the indebtedness the revenue of the enterprise fund or internal service fund if:
(a) the term of the indebtedness does not exceed the useful life of the items being financed; and
(b) at the time that the indebtedness is incurred, the projected revenue of the fund, based on the fees and charges approved by the legislature and other available fund revenue, will be sufficient to repay the indebtedness over the proposed term and to maintain the operation of the enterprise.
(2) (a) The department of justice is authorized to enter into contracts, loan agreements, or other forms of indebtedness with the board of investments for an amount not to exceed $28.5 million, payable over a term not to exceed 15 years, for financing the cost of an information technology system for the production and maintenance of motor vehicle title and registration records and driver's license records.
(b) For purposes of the financing of the motor vehicle information technology system, loans are payable from the money in the motor vehicle information technology system account as provided in 61-3-550. The term of the indebtedness may not exceed the useful life of the items being financed. At the time that the loan is made, the projected revenue of the motor vehicle information technology system account, based upon the fees approved by the legislature, must be sufficient to repay the indebtedness over the proposed term.
(3) The department of justice is authorized to enter into contracts, loan agreements, or other forms of indebtedness with the board of investments for an amount not to exceed $4.6 million, payable over a term not to exceed 10 years, for financing the cost of an information technology system, and other associated costs, for the implementation of the REAL ID Act of 2005. Loans are payable from the state special revenue fund provided for in 61-5-129(4)(b). (Subsection (3) void on occurrence of contingency--sec. 8, Ch. 443, L. 2017.)
History: En. Sec. 2, Ch. 483, L. 1997; amd. Sec. 2, Ch. 394, L. 2001; amd. Sec. 2, Ch. 562, L. 2003; amd. Sec. 4, Ch. 597, L. 2003; amd. Sec. 2, Ch. 550, L. 2005; amd. Sec. 2, Ch. 50, L. 2007; amd. Sec. 2, Ch. 443, L. 2017.
2023 Montana Code Annotated › Title 17. State Finance › Chapter 5. Public Bond Issues › Part 21. Crossover Refunding Bonds › 17-5-2101. Definitions

17-5-2101. Definitions.
As used in this part, the following definitions apply:
(1) "Bonds" means crossover refunding bonds.
(2) "Crossover date" means the date the proceeds of crossover refunding bonds are pledged to the payment of the obligations to be refunded.
(3) "Governing body" means the board or body that exercises the legislative power of the public body.
(4) "Public body" means any political subdivision of the state and includes but is not limited to a county, city, town, or school district.
History: En. Sec. 1, Ch. 171, L. 1987.
2023 Montana Code Annotated › Title 17. State Finance › Chapter 5. Public Bond Issues › Part 22. Bond Fees › 17-5-2201. Fee for issuance of bonds

17-5-2201. Fee for issuance of bonds.
Except for issuers of general obligation bonds that are payable solely by general fund revenue and as provided in 17-5-1312(2)(a), each state bond issuer shall, on issuance of the bonds, pay 30 cents per thousand of bonds unless another fee is specifically provided for a type of bonds. The fee must be deposited in the state general fund for the purpose of funding a portion of the annual comprehensive financial report audit.
History: En. Sec. 13, Ch. 190, L. 1987; amd. Sec. 3, Ch. 341, L. 2009; amd. Sec. 7, Ch. 58, L. 2023.
2023 Montana Code Annotated › Title 17. State Finance › Chapter 6. Deposits and Investments › Part 1. Deposits › 17-6-101. Deposit of funds in hands of state treasurer

17-6-101. Deposit of funds in hands of state treasurer.
(1) Under the direction of the board of investments, the state treasurer shall deposit public money in the treasurer's possession and under the treasurer's control in solvent banks, building and loan associations, savings and loan associations, and credit unions located in the state, except as otherwise provided by law, subject to national supervision or state examination.
(2) If needed financial services are not available through solvent banks, building and loan associations, savings and loan associations, and credit unions located in the state, the state treasurer may deposit public money in out-of-state financial institutions subject to national supervision.
(3) The state treasurer shall deposit funds in banks, building and loan associations, savings and loan associations, and credit unions in amounts that may be designated by the board of investments and shall withdraw deposits when instructed to by the board of investments.
(4) When money has been deposited under the board of investments and in accordance with the law, the state treasurer is not liable for loss on account of any deposit occurring from any cause other than the treasurer's own neglect or fraud.
(5) The state treasurer shall withdraw all deposits or any part of the deposits from time to time to pay and discharge the legal obligations of the state presented to the treasurer in accordance with the law.
(6) The state treasurer may contract with a financial institution to provide general depository banking services. The cost of contracting for banking services is statutorily appropriated, as provided in 17-7-502, from the general fund.
History: En. Sec. 183, Rev. C. 1907; en. Sec. 1, Ch. 129, L. 1909; re-en. Sec. 182, R.C.M. 1921; amd. Sec. 1, Ch. 85, L. 1923; amd. Sec. 1, Ch. 80, L. 1929; amd. Sec. 1, Ch. 62, L. 1935; re-en. Sec. 182, R.C.M. 1935; amd. Sec. 1, Ch. 35, L. 1963; amd. Sec. 1, Ch. 259, L. 1969; amd. Sec. 1, Ch. 298, L. 1973; amd. Sec. 1, Ch. 14, L. 1974; R.C.M. 1947, 79-301(part); amd. Sec. 10, Ch. 421, L. 1985; amd. Sec. 2, Ch. 107, L. 1993; amd. Sec. 1, Ch. 131, L. 1993.
2023 Montana Code Annotated › Title 17. State Finance › Chapter 6. Deposits and Investments › Part 1. Deposits › 17-6-102. Insurance on deposits

17-6-102. Insurance on deposits.
(1) Deposits in excess of the amount insured by the federal deposit insurance corporation or the national credit union administration may not be made unless the bank, building and loan association, savings and loan association, or credit union first delivers to the state treasurer or deposits in trust with some solvent bank, as security therefor, bonds or other obligations of the kinds listed in 17-6-103, having a market value equal to at least 50% of the amount of the deposits in excess of the amount insured. The board of investments may require security of a greater value. When negotiable securities are placed in trust, the trustee's receipt may be accepted instead of the actual securities if the receipt is in favor of the state treasurer, successors in office, and the state of Montana and the form of receipt and the trustee have been approved by the board of investments.
(2) Any bank, building and loan association, savings and loan association, or credit union pledging securities as provided in this section may at any time substitute securities for any part of the securities pledged. The substituted collateral must conform to 17-6-103 and have a market value at least sufficient for compliance with subsection (1). If the substituted securities are held in trust, the trustee shall, on the same day the substitution is made, forward by registered or certified mail to the state treasurer and to the depository financial institution a receipt specifically describing and identifying both the securities substituted and those released and returned to the depository financial institution.
History: En. Sec. 183, Rev. C. 1907; en. Sec. 1, Ch. 129, L. 1909; re-en. Sec. 182, R.C.M. 1921; amd. Sec. 1, Ch. 85, L. 1923; amd. Sec. 1, Ch. 80, L. 1929; amd. Sec. 1, Ch. 62, L. 1935; re-en. Sec. 182, R.C.M. 1935; amd. Sec. 1, Ch. 35, L. 1963; amd. Sec. 1, Ch. 259, L. 1969; amd. Sec. 1, Ch. 298, L. 1973; amd. Sec. 1, Ch. 14, L. 1974; R.C.M. 1947, 79-301(2), (4); amd. Sec. 2, Ch. 158, L. 1979; amd. Sec. 11, Ch. 421, L. 1985; amd. Sec. 29, Ch. 10, L. 1993.
2023 Montana Code Annotated › Title 17. State Finance › Chapter 6. Deposits and Investments › Part 1. Deposits › 17-6-104. Interest on deposits -- conformity with federal law

17-6-104. Interest on deposits -- conformity with federal law.
(1) The board of investments may require the payment of quarterly annual interest on daily balances of collected funds at a rate to be agreed upon between the depository banks, building and loan associations, savings and loan associations, credit unions, and the board of investments. The rate must be fixed semiannually during the months of July and January of each year.
(2) The interest requirements on deposits of public funds made under the laws of the state of Montana or otherwise by county or city treasurers or town clerks may not at any time be in violation of any act of the congress of the United States or of any rule or regulation of the federal reserve system, federal home loan bank system, or the federal deposit insurance corporation, national credit union administration, or any other fiscal agency of the United States of which the banks, building and loan associations, savings and loan associations, or credit unions of this state may be members or debtors.
History: (1)En. Sec. 183, Rev. C. 1907; en. Sec. 1, Ch. 129, L. 1909; re-en. Sec. 182, R.C.M. 1921; amd. Sec. 1, Ch. 85, L. 1923; amd. Sec. 1, Ch. 80, L. 1929; amd. Sec. 1, Ch. 62, L. 1935; re-en. Sec. 182, R.C.M. 1935; amd. Sec. 1, Ch. 35, L. 1963; amd. Sec. 1, Ch. 259, L. 1969; amd. Sec. 1, Ch. 298, L. 1973; amd. Sec. 1, Ch. 14, L. 1974; Sec. 79-301, R.C.M. 1947; (2)En. Sec. 1, Ch. 104, L. 1937; amd. Sec. 2, Ch. 14, L. 1974; Sec. 79-302, R.C.M. 1947; R.C.M. 1947, 79-301(part), 79-302; amd. Sec. 6, Ch. 540, L. 1979; amd. Sec. 12, Ch. 421, L. 1985; amd. Sec. 30, Ch. 10, L. 1993.
2023 Montana Code Annotated › Title 17. State Finance › Chapter 6. Deposits and Investments › Part 2. Investments › 17-6-202. Investment funds -- general provisions

17-6-202. Investment funds -- general provisions.
(1) For each treasury fund account into which state funds are segregated by the department of administration pursuant to 17-2-106, individual transactions and totals of all investments shall be separately recorded to the extent directed by the department.
(2) However, the securities purchased and cash on hand for all treasury fund accounts not otherwise specifically designated by law or by the provisions of a gift, donation, grant, legacy, bequest, or devise from which the fund account originates to be invested shall be pooled in an account to be designated "treasury cash account" and placed in one of the investment funds designated in 17-6-203. Except for the fiscal year beginning July 1, 2022, through the fiscal year ending June 30, 2025, the share of the income for this account shall be credited to the general fund. For the fiscal year beginning July 1, 2022, through the fiscal year ending June 30, 2025, the share of the income for this account must be credited to the debt and liability free account established in 17-6-214.
(3) If, within the list in 17-6-203 of separate investment funds, more than one investment fund is included which may be held jointly with others under the same separate listing, all investments purchased for that separate investment fund shall be held jointly for all the accounts participating therein, which shall share all capital gains and losses and income pro rata.
History: En. Sec. 6, Ch. 298, L. 1973; amd. Sec. 7, Ch. 540, L. 1977; R.C.M. 1947, 79-309(part); amd. Sec. 2, Ch. 48, L. 2023.
2023 Montana Code Annotated › Title 17. State Finance › Chapter 6. Deposits and Investments › Part 2. Investments › 17-6-204. Short-term investment of local government funds

17-6-204. Short-term investment of local government funds.
(1) The governing body of any city, county, school district, or other local government unit or political subdivision that has funds that are available for investment and are not required by law or by any covenant or agreement with bondholders or others to be segregated and invested in a different manner may direct its treasurer to remit the funds to the state treasurer for investment under the direction of the board of investments as part of the short-term pooled investment fund.
(2) A separate account, designated by name and number for each participant in the fund, must be kept to record individual transactions and totals of all investments belonging to each participant. A monthly report must be furnished to each participant having a beneficial interest in the short-term pooled investment fund, showing the changes in investments made during the preceding month. Details of any investment transaction must be furnished to any participant upon request.
(3) The principal and accrued income, and any part of that amount, of each account maintained for a participant in the short-term pooled investment fund is subject to payment at any time from the fund upon request. Accumulated income must be remitted to each participant at least annually.
(4) An order or warrant may not be issued upon any account for a larger amount than the principal and accrued income of the account to which it applies. If any order or warrant is issued, the participant receiving it shall reimburse the excess amount to the fund from any funds not otherwise appropriated. The state treasurer is liable under the treasurer's official bond for any amount not reimbursed.
History: En. Sec. 8, Ch. 298, L. 1973; R.C.M. 1947, 79-311; amd. Sec. 217, Ch. 56, L. 2009; amd. Sec. 2, Ch. 84, L. 2015.
2023 Montana Code Annotated › Title 17. State Finance › Chapter 6. Deposits and Investments › Part 2. Investments › 17-6-205. Long-term investment of local government funds

17-6-205. Long-term investment of local government funds.
(1) The governing body of any city, county, school district, or other local government unit or political subdivision may participate in the various investment pools or other investments offered by the board of investments not otherwise prohibited by law.
(2) A local government may invest with the board of investments under this section if:
(a) the source of the original principal for investment with the board is from an identifiable action or event such as a legal settlement, judgment, bequest, insurance settlement, trust fund, or other one-time source of funds;
(b) the local government does not anticipate the need to expend 50% or more of the original principal for investment within 5 years from the initial investment with the board;
(c) the initial investment is at least $10 million; and
(d) the local government agrees to the board's investment policies, including those addressing liquidity needs, risk and return considerations, asset allocation, permissible investments, and any other necessary investment considerations or limits.
(3) The board of investments is not obligated to accept any funds for investment under this section. No local government is obligated to invest with the board under this section.
History: En. Sec. 1, Ch. 84, L. 2015.
2023 Montana Code Annotated › Title 17. State Finance › Chapter 6. Deposits and Investments › Part 2. Investments › 17-6-207. Investment of state cabin site sales

17-6-207. Investment of state cabin site sales.
The board of investments may purchase from approved lenders contracts for deed or mortgages for cabin sites on state trust land for the trust and legacy fund.
History: En. Sec. 2, Ch. 488, L. 1991.
2023 Montana Code Annotated › Title 17. State Finance › Chapter 6. Deposits and Investments › Part 2. Investments › 17-6-211. Preference to in-state investment firms -- commitment agreement with board of housing

17-6-211. Preference to in-state investment firms -- commitment agreement with board of housing.
(1) The board of investments shall endeavor to direct its portion of the state's investment business to those investment firms and/or financial institutions which maintain offices in the state and thereby make contributions to the state economy. Further, due consideration shall be given to investments which will benefit the smaller communities in the state. The state's investment business will be directed to out-of-state firms only when there is a distinct economic advantage to the state of Montana.
(2) The board may enter into a commitment agreement with the board of housing at the time of an issue of bonds or notes by the board of housing providing for the purchase at a specified future date, not to exceed 15 years from the date of the issue, of all or any portion of the amount of mortgage loans purchased with the proceeds of the issue. The board of investments may charge reasonable fees for any commitment and may agree to purchase the mortgage loans on terms that in the judgment of the board of investments provide a fair market rate of return to the purchasers.
History: En. Sec. 7, Ch. 298, L. 1973; amd. Sec. 1, Ch. 92, L. 1974; amd. Sec. 1, Ch. 228, L. 1974; amd. Sec. 1, Ch. 316, L. 1977; R.C.M. 1947, 79-310; amd. Sec. 1, Ch. 81, L. 1979; amd. Sec. 1, Ch. 180, L. 1979; amd. Sec. 2, Ch. 395, L. 1981; amd. Sec. 1, Ch. 358, L. 1983; amd. Sec. 1, Ch. 360, L. 1983; amd. Sec. 1, Ch. 387, L. 1983; amd. Sec. 20, Ch. 677, L. 1983; amd. Sec. 5, Ch. 418, L. 1985; amd. Sec. 14, Ch. 421, L. 1985.
2023 Montana Code Annotated › Title 17. State Finance › Chapter 6. Deposits and Investments › Part 2. Investments › 17-6-212. State purchase of general fund warrants

17-6-212. State purchase of general fund warrants.
(1) The state reserves a preference right, prior to the right of any person, company, or corporation, to purchase state general fund warrants issued with funds under the control of the board of investments and subject to investment.
(2) When the board of investments has under its control any funds subject to investment that in its judgment it would be advantageous to invest in state general fund warrants and there are not sufficient funds in the state general fund to pay warrants issued against the fund at the time that they are issued and presented for payment, it shall authorize and direct the state treasurer to purchase state general fund warrants, designating the fund or funds to be invested and fixing the amount or amounts to be invested. State general fund warrants registered by the state treasurer pursuant to 17-8-304(1) and purchased by the board of investments must bear interest at a rate determined by the board. When determining the interest rate, the board shall consider:
(a) the duration of the investment by estimating the time at which the warrants will be redeemed pursuant to 17-8-304(1); and
(b) the interest rate of the investments liquidated to provide the funds to purchase the warrants.
(3) The state treasurer shall attach to or stamp, write, or print upon each general fund warrant issued after the receipt of notice, until warrants totaling the amounts designated have been issued, a notice that the state will exercise its preference right to purchase the warrant.
(4) The state treasurer shall, when the marked warrant is presented, pay it out of the proper fund as designated by the board, and the warrant purchased must be registered as other state warrants and must bear interest as provided by law.
(5) When the designated amounts have been invested, the department shall notify the board of investments, which shall issue orders for warrants to be issued in favor of the treasurer.
History: En. Sec. 89, Ch. 147, L. 1909; re-en. Sec. 1912, R.C.M. 1921; amd. Sec. 1, Ch. 15, L. 1927; re-en. Sec. 1912, R.C.M. 1935; amd. Sec. 33, Ch. 326, L. 1974; R.C.M. 1947, 79-1101; amd. Sec. 1, Ch. 40, L. 1995; amd. Sec. 19, Ch. 325, L. 1995; amd. Sec. 97, Ch. 42, L. 1997; amd. Sec. 8, Ch. 48, L. 1997.
2023 Montana Code Annotated › Title 17. State Finance › Chapter 6. Deposits and Investments › Part 2. Investments › 17-6-213. Redemption of bonds before maturity

17-6-213. Redemption of bonds before maturity.
(1) The board of investments shall permit any school district, town, city, or county to pay and redeem one or more of its bonds held by the state for the credit of any fund under the investment administration of the board of investments at any time before maturity.
(2) In calculating the unpaid interest accrued on any bond or bonds at the time of payment and redemption, interest for a fractional month must be calculated and collected for a full month.
(3) Payment and redemption of bonds must be made at the office of the state treasurer unless the bonds by their own terms and provisions are made payable at some other place and payment at that office would be disadvantageous to the redemptioner. When bonds have been paid and redeemed, the state treasurer shall effectually cancel the bonds and the attached coupons by perforation or otherwise and mail them to the proper treasurer together with the state treasurer's receipt.
(4) This section does not authorize or permit any school district, town, city, or county to issue refunding bonds for the purpose of paying and redeeming any bond or bonds held by the state before the optional or redeemable date of the bonds or to grant the right to pay any bonds held by the state before the optional or redeemable date from the proceeds of refunding bonds.
History: En. Sec. 2, Ch. 33, L. 1907; re-en. Sec. 2202, Rev. C. 1907; amd. Sec. 91, Ch. 147, L. 1909; re-en. Sec. 1916, R.C.M. 1921; amd. Sec. 1, Ch. 70, L. 1925; amd. Sec. 1, Ch. 3, L. 1929; re-en. Sec. 1916, R.C.M. 1935; amd. Sec. 36, Ch. 326, L. 1974; R.C.M. 1947, 79-1105; amd. Sec. 218, Ch. 56, L. 2009.
2023 Montana Code Annotated › Title 17. State Finance › Chapter 6. Deposits and Investments › Part 2. Investments › 17-6-214. Debt and liability free account -- rules for deposits and transfers -- purpose

17-6-214. Debt and liability free account -- rules for deposits and transfers -- purpose.
(1) There is an account in the state special revenue fund established by 17-2-102 known as the debt and liability free account.
(2) The purpose of the debt and liability free account is to:
(a) pay the principal, interest, premiums, and any costs or fees associated with redeeming outstanding bonds, notes, or other obligations that have been authorized and issued pursuant to the laws of Montana and that are currently subject to optional redemption;
(b) pay the principal, interest, premiums, and any costs or fees associated with defeasing outstanding bonds, notes, or other obligations that have been authorized and issued pursuant to the laws of Montana that are not currently subject to optional redemption;
(c) forego or reduce the amount of an issuance of general obligation bonds paid from the general fund authorized by the legislature but not yet issued by the board of examiners prior to using funds from the account established in 17-7-209 for the same purpose; and
(d) pay in whole or in part legally resolved nonpension financial liabilities of the state of Montana.
(3) For the fiscal year beginning July 1, 2022, through the fiscal year ending June 30, 2025, interest income received pursuant to 17-6-202(2) is deposited into the account.
(4) Funds in the debt and liability free account are statutorily appropriated, as provided in 17-7-502, to the governor's office of budget and program planning and must be used in accordance with the requirements of this section.
(5) Funds expended from the account in this section may not be included in the calculation of annual transfers in 17-7-208.
(6) The office of budget and program planning shall prioritize the use of funds for the uses outlined in subsections (1)(a) through (1)(c).
(7) Within 15 days of the close of each fiscal quarter, the office of budget and program planning shall submit a written report to the legislative finance committee in accordance with 5-11-210 that identifies the amount and the type of debt payoff or other expenditure from the account established in this section for the previous fiscal quarter.
History: En. Sec. 1, Ch. 48, L. 2023.
2023 Montana Code Annotated › Title 17. State Finance › Chapter 6. Deposits and Investments › Part 2. Investments › 17-6-221. Handling securities -- custody of mortgages and repurchase agreements

17-6-221. Handling securities -- custody of mortgages and repurchase agreements.
(1) Securities may be placed in safekeeping with banks subject to national supervision or Montana state examination, and a safekeeping receipt may be accepted in lieu of the actual securities.
(2) Custody and control of repurchase agreements and mortgages shall be accomplished by the receipt of a confirmation of purchase.
History: En. Sec. 440, Pol. C. 1895; re-en. Sec. 179, Rev. C. 1907; re-en. Sec. 174, R.C.M. 1921; Cal. Pol. C. Sec. 452; re-en. Sec. 174, R.C.M. 1935; amd. Sec. 8, Ch. 147, L. 1963; amd. Sec. 1, Ch. 152, L. 1971; amd. Sec. 1, Ch. 269, L. 1973; R.C.M. 1947, 79-201(8).
2023 Montana Code Annotated › Title 17. State Finance › Chapter 6. Deposits and Investments › Part 2. Investments › 17-6-222. Repealed

17-6-222. Repealed.
Sec. 1, Ch. 304, L. 1979.
History: En. Sec. 15, Ch. 70, L. 1929; re-en. Sec. 5668.33, R.C.M. 1935; amd. Sec. 38, Ch. 100, L. 1973; amd. Sec. 10, Ch. 298, L. 1973; R.C.M. 1947, 79-1215.
2023 Montana Code Annotated › Title 17. State Finance › Chapter 6. Deposits and Investments › Part 2. Investments › 17-6-225. Loans to petroleum tank release compensation board

17-6-225. Loans to petroleum tank release compensation board.
(1) The board of investments may loan funds to the petroleum tank release compensation board to cover temporary cash shortfalls. The total of all loans may not exceed the greater of $15 million or 80% of the fees that the office of budget and program planning projects will be collected under 75-11-314 during the next 3 fiscal years. A loan must be amortized, based on projected fee revenue, over a period of not more than 10 years.
(2) The board shall establish the interest rate on the loan, considering the security and the term of the loan.
History: En. Sec. 1, Ch. 115, L. 1997.
2023 Montana Code Annotated › Title 17. State Finance › Chapter 6. Deposits and Investments › Part 2. Investments › 17-6-230. Reports on retirement system trust fund investments and benefits

17-6-230. Reports on retirement system trust fund investments and benefits.
(1) As soon as practical after the end of each calendar year, the board of investments shall publish a report on each retirement system trust fund invested by the board. The report may be part of an annual report required pursuant to Article VIII, section 13, of the Montana constitution or 17-5-1650 but must summarize the following with respect to each retirement system trust fund:
(a) asset allocation;
(b) past and expected investment performance;
(c) investment goals and strategies; and
(d) Montana public employees' retirement system investments and performance compared with the public employees' retirement system investments and performance in other states.
(2) The board of investments shall annually at a public meeting present the report described in subsection (1) to the public employees' retirement board provided for in 2-15-1009 and the teachers' retirement board provided for in 2-15-1010. The board shall also provide the report to the legislature pursuant to 5-11-210 and to the state administration and veterans' affairs interim committee.
History: En. Sec. 1, Ch. 285, L. 2007; amd. Sec. 4, Ch. 155, L. 2013.
2023 Montana Code Annotated › Title 17. State Finance › Chapter 6. Deposits and Investments › Part 2. Investments › 17-6-231. Definitions

17-6-231. Definitions.
For the purposes of 17-6-232, 17-6-233, and this section:
(1) (a) "Material" means a risk or return regarding which there is a substantial likelihood that a reasonable investor would attach importance when:
(i) evaluating the potential financial return and financial risks of an existing or prospective investment; or
(ii) exercising, or declining to exercise, any rights appurtenant to securities.
(b) When used to qualify a risk or return, the term does not include furthering nonpecuniary, environmental, social, governance, or other similarly oriented considerations, or any portion of a risk or return that primarily relates to events that involve a high degree of uncertainty regarding what may or may not occur in the distant future and are systemic, general, or not investment-specific in nature.
(2) "Nonpecuniary" includes any action taken or factor considered by a fiduciary with any purpose to further environmental, social, governance, or other similarly oriented considerations.
(3) (a) "Pecuniary factor" means a factor that has a material effect on the financial risk or financial return of an investment based on appropriate investment horizons consistent with the plan's investment objectives and funding policy.
(b) The term does not include nonpecuniary factors.
History: En. Sec. 1, Ch. 175, L. 2023.
2023 Montana Code Annotated › Title 17. State Finance › Chapter 6. Deposits and Investments › Part 2. Investments › 17-6-232. Consideration of nonpecuniary factors prohibited

17-6-232. Consideration of nonpecuniary factors prohibited.
(1) The evaluation by the board of investments or the evaluation or exercise of any right appurtenant to an investment must take into account only pecuniary factors.
(2) Environmental, social, governance, or other similarly oriented considerations are pecuniary factors only if they present economic risks or opportunities that qualified investment professionals would treat as material economic considerations under generally accepted investment theories. The weight given to those factors must solely reflect a prudent assessment of their impact on risk and return.
(3) The board, when considering environmental, social, governance, or other similarly oriented factors as pecuniary factors, is also required to examine the level of diversification, the degree of liquidity, and the potential risk-return in comparison with other available investment alternatives that would play a similar role in their plans' portfolios.
(4) Any pecuniary consideration of environmental, social, governance, or other similarly oriented factors must necessarily include evaluating whether greater returns can be achieved through investments that rank poorly on these factors.
History: En. Sec. 2, Ch. 175, L. 2023.
2023 Montana Code Annotated › Title 17. State Finance › Chapter 6. Deposits and Investments › Part 2. Investments › 17-6-233. Voting ownership interests

17-6-233. Voting ownership interests.
(1) All shares held directly or indirectly by or on behalf of the board must be voted solely in the pecuniary interest of the beneficiaries of the funds.
(2) Voting to further nonpecuniary, environmental, social, governance, or other similarly oriented considerations is prohibited.
(3) The board may not follow the recommendations of a proxy advisory firm or other service providers unless the firm or service provider commits to follow proxy voting guidelines that are consistent with the board's obligation to act based solely on pecuniary factors unless no economically practicable alternative is available.
History: En. Sec. 3, Ch. 175, L. 2023.
2023 Montana Code Annotated › Title 17. State Finance › Chapter 6. Deposits and Investments › Part 2. Investments › 17-6-234. Enforcement by attorney general

17-6-234. Enforcement by attorney general.
The attorney general may bring an action in the appropriate Montana district court to prevent or restrain violations of 17-6-231 through 17-6-233.
History: En. Sec. 4, Ch. 175, L. 2023.
2023 Montana Code Annotated › Title 17. State Finance › Chapter 6. Deposits and Investments › Part 3. Montana In-State Investment › 17-6-303. Purpose of the coal tax trust fund

17-6-303. Purpose of the coal tax trust fund.
The people of Montana establish that the intent of the permanent coal tax trust fund, as created by Article IX, section 5, of the Montana constitution, is:
(1) to compensate future generations for the loss of a valuable and depletable resource and to meet any economic, social, and environmental impacts caused by coal development not otherwise provided for by other coal tax sources; and
(2) to develop a stable, strong, and diversified economy which meets the needs of Montana residents both now and in the future while maintaining and improving a clean and healthful environment as required by Article IX, section 1, of the Montana constitution.
History: En. Sec. 1, I.M. No. 95, approved Nov. 2, 1982.
2023 Montana Code Annotated › Title 17. State Finance › Chapter 6. Deposits and Investments › Part 3. Montana In-State Investment › 17-6-304. Use of the coal tax trust fund for economic development

17-6-304. Use of the coal tax trust fund for economic development.
Objectives for investment of the permanent coal tax trust fund are to diversify, strengthen, and stabilize the Montana economy and to increase Montana employment and business opportunities while maintaining and improving a clean and healthful environment.
History: En. Sec. 2, I.M. No. 95, approved Nov. 2, 1982.