The Florida Senate

236.24  Sources of district school fund.--

(1)  The district school fund shall consist of funds derived from the district school tax levy; state appropriations; appropriations by county commissioners; local, state, and federal school food service funds; any and all other sources for school purposes; national forest trust funds and other federal sources; and gifts and other sources.

(2)(a)  Unless otherwise authorized by law or by ordinance, each school board shall, by resolution to be adopted from time to time, invest and reinvest any surplus public funds in its control or possession in:

1.  The Local Government Surplus Funds Trust Fund;

2.  Negotiable direct obligations of, or obligations the principal and interest of which are unconditionally guaranteed by, the United States Government at the then prevailing market price for such securities;

3.  Interest-bearing time deposits or savings accounts in qualified public depositories as defined in s. 280.02;

4.  Obligations of the federal farm credit banks; the Federal Home Loan Mortgage Corporation, including Federal Home Loan Mortgage Corporation participation certificates; or the Federal Home Loan Bank or its district banks or obligations guaranteed by the Government National Mortgage Association;

5.  Obligations of the Federal National Mortgage Association, including Federal National Mortgage Association participation certificates and mortgage pass-through certificates guaranteed by the Federal National Mortgage Association; or

6.  Securities of, or other interests in, any open-end or closed-end management type investment company or investment trust registered under the Investment Company Act of 1940, 15 U.S.C. ss. 80a-1 et seq., as amended from time to time, provided the portfolio of such investment company or investment trust is limited to obligations of the United States Government or any agency or instrumentality thereof and to repurchase agreements fully collateralized by such United States Government obligations, and provided such investment company or investment trust takes delivery of such collateral either directly or through an authorized custodian.

(b)1.  Securities purchased by any such school board under the authority of this law shall be delivered by the seller to the school board or its appointed safekeeper. The safekeeper shall be a qualified bank or trust company chartered to operate as such by the State of Florida, any other state or territory of the United States, or the United States Government, that has a branch or principal place of business in this state as defined in s. 658.12. The safekeeper shall issue documentation for each transaction, and a monthly statement detailing all transactions for the period.

2.  Securities physically delivered to the school board shall be placed in a safe-deposit box in a bank or other institution located within the county and duly licensed and insured. Withdrawals from such safe-deposit box shall be only by persons duly authorized by resolution of the school board.

3.  The school board may also receive bank trust receipts in return for investment of surplus funds in securities. Any trust receipts received must enumerate the various securities held together with the specific number of each security held. The actual securities on which the trust receipts are issued may be held by any bank depository chartered by the United States Government, the State of Florida, or any other state or territory of the United States, that has a branch or principal place of business in this state as defined in s. 658.12, or their designated agents.

(c)  When the money invested in such securities is needed in whole or in part for the purposes originally intended, the school board is authorized to sell such security or securities at the then prevailing market price and to pay the proceeds of such sale into the proper account or fund of the school board.

(d)  For the purposes of this law, the term "surplus funds" is defined as funds in any general or special account or fund of the school board, held or controlled by the school board, which funds are not reasonably contemplated to be needed for the purposes intended within a reasonable time from the date of such investment.

(e)  Any surplus public funds subject to a contract or agreement on the date of this enactment shall not be invested contrary to such contract or agreement.

(f)  The provisions of this subsection are supplemental to any and all other laws relating to the legal investments by school boards.

(3)  Investments made pursuant to this section may be in book-entry form and may be under repurchase agreements.

(4)  The provisions of this section are subject to the provisions of s. 218.415.

History.--s. 1024, ch. 19355, 1939; CGL 1940 Supp. 892(343); s. 2, ch. 61-119; s. 12, ch. 61-288; s. 150, ch. 65-239; (1)(b), F.S. 1969, formerly s. 9, Art. XII of the Constitution of 1885, as amended; converted to statutory law by s. 10, Art. XII of the Constitution as revised in 1968; s. 1, ch. 69-300; s. 145, ch. 72-221; s. 2, ch. 73-137; s. 2, ch. 80-103; s. 2, ch. 88-326; s. 5, ch. 89-299; s. 2, ch. 89-326; s. 8, ch. 94-332; s. 7, ch. 95-194; s. 62, ch. 97-190; s. 9, ch. 98-409.