Title 41 — Title 41

Emergency Withdrawal of Funds on Time Deposit, Open Account. (a) Interest shall be calculated on the basis of the contracts existing with respect to time deposits, open account, and shall be payable monthly to the State Treasurer and by that officer paid into the State Treasury t…

(a) All public deposits, as defined in Chapter 14A, of the state shall be secured to the extent and in the manner provided in Chapter 14A by any combination of the following securities and instruments, which may be issued and held in either definitive or book-entry form: Direct o…

Moneys in Time Deposits, Open Account, Demand Deposits, Etc. Any person who knowingly demands or receives any fee, compensation, or reward or who demands or accepts directly or indirectly as payment or gift or otherwise any sum of money or other thing of value as an inducement or…

Nothing contained in this article shall be construed to modify, amend, or repeal the provisions of Section 36-17-18, as now existing or hereafter amended, relating to investment in direct obligations of the United States of America registered in the name of the State Treasurer. H…

The provisions of this article shall not apply to funds subject to withdrawal by a state official, state department, or state agency other than the State Treasurer. History: (Acts 1967, No. 3, p. 336, §9.)

The state may pay any state depositary for the transfer or removal of funds to or from the state depositary, item handling charges, and for any other services performed by the state depositary. Payment for transfers, removals, item handling charges, and other services performed b…

Maximum Amount of State Funds Which Depositaries May Receive, Etc. Any state or county officer in this state having in his or her possession or under his or her control funds or moneys belonging to the state may place the same in a state depositary to the credit of the State Trea…

This article shall be known as the Linked Deposit Program of 2007. The purpose of this article is to enhance the George Wallace, Jr., Plan for Linked Deposits of 1988 and further stimulate growth and development in agricultural and small business operations, and to provide disast…

When used in this article, the following words and phrases have the following meanings: (1) AGRICULTURE and AGRICULTURAL. Those activities, land, buildings, and machinery relating to any of the following: a. The raising, harvesting, rotation, selling, or marketing of crops or pro…

(a) The Linked Deposit Program of 2007 is created and the Treasurer shall administer the program. (b) The Treasurer shall establish procedures, guidelines, forms, and other requirements to carry out this article. The Treasurer may disseminate program information to interested par…

(a) An eligible lending institution shall accept and review applications for linked deposit loans from eligible borrowers. The lending institution shall apply all usual lending standards to determine the credit worthiness of eligible borrowers. (b) The eligible lending institutio…

(a) Only one linked deposit shall be made and be outstanding at any one time to any one eligible borrower. (b) The linked deposit amount shall not exceed seven hundred fifty thousand dollars ($750,000) per eligible borrower. (c) The initial linked deposit term shall be two years.…

(a) The linked deposit fixed rate paid by the eligible lending institution shall be two percent below the two-year constant maturity treasury rate. (b) The minimum linked deposit rate shall be one percent. (c) The linked deposit loan rate to the eligible borrower shall be set by …

(a) Neither the state nor the Treasurer shall be liable to any eligible lending institution in any manner for payment of the principal or interest on the linked deposit loan to an eligible borrower. (b) Any delay in payments or any default on the part of the eligible borrower doe…

of Copies of Receipts, Etc. Each state depositary shall give to the officer placing funds or moneys therein to the credit of the Treasurer a receipt therefor in duplicate, and such officers shall immediately mail to the Department of Finance a duplicate of the said receipt. The D…

of Balance in Depositaries to Be Made to Treasurer, Governor, Etc. Each state depositary shall report in writing at the close of each business day to the Treasurer the total amount of all sums placed therein for his or her account on that day, by whom made and for what purpose ma…

to Pay Check, Etc., of Treasurer or Account for State Funds Generally. Repealed effective January 1, 2001, by Act 2000-748, §3. History: (Code 1907, §648; Code 1923, §898; Code 1940, T. 55, §386; Acts 1947, No. 411, p. 301, §4.)

This chapter may be cited as the “Security for Alabama Funds Enhancement Act.” History: (Act 2000-748, p. 1669, §1.)

(a) In order to facilitate the administration of this chapter, there is created the SAFE Loss Payment Fund, which shall be held and administered by the State Treasurer, for the account of the SAFE Program, separate and apart from the State General Fund. The proceeds from the sale…

(a) When public deposits are made in accordance with this chapter, no public depositor shall be liable for any loss thereof resulting from the default or insolvency of any qualified public depository in the absence of negligence, malfeasance, misfeasance, or nonfeasance on the pa…

(a) The amounts in the State Treasury Operations Fund shall be applied and disbursed by the State Treasurer to pay the costs and expenses of administering the SAFE Program, and to pay the members of the board of directors the per diem and travel rates permitted by Section 41-14A-…

There is hereby created a SAFE Program Enforcement Fund, which shall be held and administered by the State Treasurer. There shall be paid into the Program Enforcement Fund all administrative penalties collected under this chapter. The amounts in the Program Enforcement Fund shall…

The SAFE Program shall be audited annually by the Examiners of Public Accounts to ensure that collateral is being maintained to secure public deposits in amounts that are consistent with the requirements of this chapter. The Program Enforcement Fund shall also be audited annually…

As used in this chapter, the following words and terms shall have the following meanings: (1) AVERAGE MONTHLY BALANCE OF PUBLIC DEPOSITS. The sum of the average daily balances of public deposits, meaning the net average daily balances of public deposits determined without any ded…

(a) On and after January 1, 2001: (1) All public deposits of all covered public entities and covered public officials shall be governed by this chapter and shall be secured as provided in this chapter. (2) All public depositors shall, notwithstanding any other laws to the contrar…

Powers and Duties of the State Treasurer Relating to the Program; Tax Exemption for Funds Maintained by State Treasurer Pursuant to Chapter. There is hereby created the Security for Alabama Funds Enhancement (SAFE) Program. The SAFE Program shall be administered by the State Trea…

(a) Every qualified public depository shall maintain on deposit with a custodian, to be held subject to the order of the State Treasurer or the State Treasurer’s designee (which may be a financial institution designated by the State Treasurer), eligible collateral having a market…

(a) There is hereby established a Board of Directors of the SAFE Program charged with responsibility and authority to assess and manage the sufficiency of the collateral pool and the SAFE Program to provide adequate protection from losses to public depositors. In exercising its p…

of This Chapter. (a) The board of directors shall have the authority to establish by rule or regulation conditions and procedures under which qualified public depositories may be suspended or disqualified and assessed administrative penalties in lieu of suspension or disqualifica…

Every qualified public depository that is solvent shall guarantee public depositors against loss caused by the default or insolvency of other qualified public depositories according to the terms of this chapter and shall enter into an agreement of contingent liability with the St…

(a) When the State Treasurer becomes aware that a default or insolvency has occurred, the State Treasurer shall provide notice as required in subsection (b) and implement the following procedures: (1) The State Treasurer shall obtain information from the Superintendent of Banks o…

There shall be a fund, to be known as the State Insurance Fund, carried by the State Treasurer for the purpose of insuring direct physical loss on buildings and contents for the perils as may be determined by the Finance Director in which title in whole or in part is vested in th…

May Be Invested in Bonds, Stocks, Mutual Funds, Etc.; Limitations and Conditions; Requisition for Payment of Losses, Expenses, Etc. All premiums and earnings collected under the provisions of this chapter shall constitute a trust fund to be applied as authorized in this chapter. …

System. No part of the funds provided for in Section 41-15-10 shall be used to increase the salary of any state employee. Only the salary of the designated risk manager, stenographic secretary, inspector, clerical force, and such other employees and expenses as may be necessary f…

Reimbursement. There is hereby appropriated from the Treasury the sum of $100,000.00 to be available only in case the loss by fire or tornado in any year shall exceed the premiums collected under the provisions of this chapter, and then only in such amount as may be required in a…

Fire, Etc. There is hereby appropriated in addition to all other appropriations and for capital outlay purposes only any and all funds received by the State of Alabama or any department, board, bureau, agency, or institution of the state in payment for any loss to property suffer…

Insurance Fund. The Department of Finance is hereby constituted and designated as the agency through which this chapter shall be administered, and the director of said department is empowered with such authority as may be necessary to carry out its purposes. The director of said …

The Director of Finance may make or cause to be made a survey and appraisal of all property, to assist in the determination of the amount of insurance to be carried on the several properties and to classify all exposures or property. History: (Acts 1923, No. 593, p. 769; Code 192…

Coverage and Gap Plus Coverage; Survey of Public Property; Sale or Salvage of Insured Items. (a) All covered property, unless otherwise provided in this section, shall be insured for no more than its replacement cost and shall be insured for no less than 80 percent of its actual …

The net premium charged shall be based on the current commercial rate with not less than a 40 percent discount. The risk manager with the approval of the Director of Finance may purchase such reinsurance as may in the opinion of the risk manager, be necessary for the proper distr…

All premiums shall be paid to the Department of Finance, not later than 60 days from the effective date of such insurance or renewal thereof, by the treasurer or executive officer of the agency affected. Such funds shall be promptly transmitted to the State Treasurer, who shall p…

Person in Charge of Insured Property as to Value of Property, Premium Rates, Etc. In the event a disagreement arises between the Department of Finance and any person or persons in charge of any insured property as to its replacement cost or actual cash value or the amount payable…

Policies, Etc., Define Terms, Make Rules and Regulations, Etc., for Administration of Chapter. The Director of Finance is authorized to prescribe insurance coverages, forms of policies, proofs of losses, and other forms; to define terms; make rules and regulations; to provide add…

The State Treasurer is authorized to accept gifts, donations, and bequests from any person, association, company, or corporation wishing to contribute voluntarily to the Penny Trust Fund. Any person, association, company, or corporation may deposit funds in the Penny Trust Fund t…

Repealed by Act 2011-707, p. 2189, §1, effective September 30, 2011. History: (Acts 1993, No. 93-608, p. 990, §1.)

Repealed by Act 2011-707, p. 2189, §1, effective September 30, 2011. History: (Acts 1993, No. 93-608, p. 990, §2; Act 99-592, p. 1352, §3.)

Repealed by Act 2011-707, p. 2189, §1, effective September 30, 2011. History: (Acts 1993, No. 93-608, p. 990, §3(a)-(c); Act 99-592, p. 1352, §3.)

(a) Proceeds from the Penny Trust Fund which are dedicated for the promotion of the public health shall be transmitted by the Comptroller to the Department of Public Health for the Alabama Drug Assistance Program and other similar programs upon application of the State Health Off…

Donations and bequests to the Penny Trust Fund by individuals, associations, corporations, and companies shall be exempt from all county and municipal taxes and deductible from state taxes in accordance with Section 40-18-15. History: (Acts 1989, No. 89-667, p. 1325, §3.)

Repealed by Act 2006-503, p. 1145, §2, effective for tax years beginning after December 31, 2005. History: (Acts 1989, No. 89-667, p. 1325, §4.)