1. All money deposited by the State Treasurer which is not within the limits of insurance provided by an instrumentality of the United States must be secured by collateral composed of the following types of securities:

(a) United States treasury notes, bills, bonds or obligations as to which the full faith and credit of the United States are pledged for the payment of principal and interest, including the guaranteed portions of Small Business Administration loans if the full faith and credit of the United States is pledged for the payment of the principal and interest;

(b) Bonds of this state;

(c) Bonds of any county, municipality or school district within this state;

(d) Promissory notes secured by first mortgages or first deeds of trust which meet the requirements of NRS 356.025;

(e) Mortgage-backed pass-through securities guaranteed by the Federal National Mortgage Association, the Federal Home Loan Mortgage Corporation or the Government National Mortgage Association;

(f) Collateralized mortgage obligations or real estate mortgage investment conduits that are rated “AAA,” “Aaa” or its equivalent by a nationally recognized rating service;

(g) Instruments in which the State is permitted by NRS 355.140 to invest; or

(h) Irrevocable letters of credit from any Federal Home Loan Bank with the State Treasurer named as the beneficiary.

2. Collateral deposited by the depository bank, credit union, savings and loan association or savings bank must be pledged with the State Treasurer or with a trust company, a broker-dealer registered under 15 U.S.C. § 78o(b)(1), any Federal Home Loan Bank or any insured bank, credit union, savings and loan association or savings bank, other than the depository bank, credit union, savings and loan association or savings bank, which will accept the securities in trust for the purposes of this section.

3. The fair market value of the deposit of securities as collateral by each depository bank, credit union, savings and loan association or savings bank must be at least the amount required pursuant to NRS 356.300 to 356.390, inclusive. The fair market value of any collateral consisting of promissory notes with first mortgages or first deeds of trust shall be deemed to be 75 percent of the unpaid principal of the notes.

4. All securities to be used as such collateral are subject to review by the State Treasurer. The depository bank, credit union, savings and loan association or savings bank shall submit reports to the State Treasurer as required pursuant to NRS 356.300 to 356.390, inclusive.

5. The State Treasurer may, from time to time, require the deposit of additional securities as collateral if, in his or her judgment, the additional securities are necessary to secure the State Treasurer’s deposit.

[2:161:1935; A 1937, 365; 1931 NCL § 7029.02] — (NRS A 1959, 568; 1969, 889; 1975, 1803; 1979, 726, 1889; 1981, 848, 1365; 1983, 962; 1985, 2112; 1989, 1270, 2181, 2182; 1997, 1285; 2003, 20th Special Session, 286; 2019, 668)