Z-1423.1 _______________________________________________
SENATE BILL 6171
_______________________________________________
State of Washington 52nd Legislature 1992 Regular Session
By Senators McCaslin and Madsen; by request of State Treasurer
Read first time 01/20/92. Referred to Committee on Financial Institutions & Insurance.
AN ACT Relating to the definition of money market fund and mutual fund for the sole purpose of investing public funds; and amending RCW 39.59.010.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:
Sec. 1. RCW 39.59.010 and 1988 c 281 s 1 are each amended to read as follows:
Unless the context clearly requires otherwise, the definitions in this section apply throughout this chapter.
(1) "Bond" means any agreement which may or may not be represented by a physical instrument, including but not limited to bonds, notes, warrants, or certificates of indebtedness, that evidences an obligation under which the issuer agrees to pay a specified amount of money, with or without interest, at a designated time or times either to registered owners or bearers.
(2) "Local government" means any county, city, town, special purpose district, political subdivision, municipal corporation, or quasi-municipal corporation, including any public corporation, authority, or other instrumentality created by such an entity.
(3)
"Money market fund" means a diversified money market mutual
fund ((the portfolio which consists of only bonds having maturities or
demand or tender provisions of not more than one year, managed by an investment
advisor who has posted with the risk management office of the department of
general administration a bond or other similar instrument in the amount of at
least five percent of the amount invested in the fund pursuant to RCW 39.59.030
(2) or (3))) registered with the federal securities and exchange
commission and meeting the requirements of the investment company act of 1940
(15 U.S.C. Sec. 80a Subchapter I and 17 C.F.R. part 270).
(4)
"Mutual fund" means a diversified mutual fund registered with the
federal securities and exchange commission and which meets the requirements
of the investment company act of 1940 (15 U.S.C. Sec. 80a Subchapter I and 17
C.F.R. part 270) and is managed by an investment advisor with assets under
management of at least five hundred million dollars and with at least five
years' experience in investing in bonds authorized for investment by this
chapter ((and who has posted with the risk management office of the
department of general administration a bond or other similar instrument in the
amount of at least five percent of the amount invested in the fund pursuant to
RCW 39.59.030(1))).
(5) "State" includes a state, agencies, authorities, and instrumentalities of a state, and public corporations created by a state or agencies, authorities, or instrumentalities of a state.