AGO 1996-149.

• Case Date: March 06, 1996
• Court: Alabama

Alabama Attorney General Opinions 1996. AGO 1996-149. 1996-149March 6, 1996Honorable Lucy Baxley State Treasurer State of Alabama State Capitol Montgomery, AL 36130 Treasurer - State Funds - State Depository - Authorized InstitutionState Treasurer may approve bank as Authorized Institution when said bank proposes to delegate its physical collateral safekeeping duties to an out- of-state bank in a federal reserve bank city, per _ 36-17-3(9), Code.Dear Ms. Baxley: This opinion is issued in response to your request for an opinion from the Attorney General. QUESTION Can the treasurer legally approve the application of an in-state bank to become an Authorized Institution pursuant to _ 36-17-3(9), Code of Alabama 1975, in the case of a bank, already designated as a State Depository by the governor, and holding state funds pursuant to that designation, which bank proposes to delegate to an out-of-state bank its physical collateral safekeeping duties under its status as an "Authorized Institution?" FACTS, LAW AND ANALYSIS SunTrust Bank, Alabama, N.A. is an existing State Depository which meets all requirements to be an Authorized Institution under _ 36-17-3(9), Code of Alabama 1975. SunTrust Bank, Alabama, desires to become an Authorized Institution and enter into the contract required by _ 36-17-3(9). To this end, it has applied for approval by the State Treasurer and has informed the Treasurer that it intends to designate SunTrust Banks, Atlanta, as its agent to perform the physical safekeeping portion of its duties as an Authorized Institution. SunTrust Banks, Atlanta, is located in Atlanta, Georgia, a federal reserve city. Section 36-17-3(9) provides that the powers, functions, and duties of the treasurer include the power: "(9) To have the custody of, and to keep safe, all moneys, bonds, mortgages and other securities required or permitted by law to be deposited with the state or any officer thereof, by any bank, trust company, insurance company, mutual aid or benefit association or other person or corporation, and also all securities held by the state, including those held for the account of any sinking fund (including those heretofore in the custody of their sinking fund commission). All such moneys, bonds, mortgages and other securities shall be guarded at all times by a bonded officer or employee while in the office...