TITLE 50
STATE GOVERNMENT
Section 17. State Debt, Investment, and Depositories, 50-17-1 through 50-17-105.
ARTICLE 1
GENERAL PROVISIONS
50-17-2. Agreements to resell or repurchase United States government obligations at stated rate of interest; delivery and safekeeping of such obligations; investment in authorized securities.
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Agencies, authorities, boards, public corporations, instrumentalities, retirement systems, and other divisions of state government authorized to invest in direct obligations of the United States government or in obligations unconditionally guaranteed by agencies of the United States government may do so by selling and purchasing such obligations under agreements to resell or repurchase the obligations at a date certain in the future at a specific price which reflects a premium over the purchase or selling price equivalent to a stated rate of interest. Delivery of the obligations purchased may be made by deposit through book entry in a safekeeping account maintained by the seller of the securities, in the name of the purchasing state entity or its agent, clearly indicating the interest of the purchasing state entity.
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In addition to the authorization in subsection (a) of this Code section, the state treasurer may invest in the securities authorized for direct investment by subsection (b) of Code Section 50-17-63 by selling and purchasing such obligations under agreements to resell or repurchase the obligations at a date certain in the future at a specific price which reflects a premium over the purchase or selling price equivalent to a stated rate of interest. Delivery of the obligations purchased may be made by deposit through book entry in a safekeeping account maintained by the seller of the securities, in the name of the Office of the State Treasurer or its agent, clearly indicating the interest of the Office of the State Treasurer.
(Ga. L. 1980, p. 303, § 1; Ga. L. 1997, p. 569, § 2; Ga. L. 2010, p. 863, §§ 2, 3/SB 296.)
Law reviews.
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For article commenting on the 1997 amendment of this Code section, see 14 Ga. St. U.L. Rev. 306 (1997).
OPINIONS OF THE ATTORNEY GENERAL
Reverse repurchase agreements authorized.
- O.C.G.A.
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50-17-2(a) authorizes both selling and purchasing with a commitment to repurchase or resell. 2003 Op. Att'y Gen. No. 2003-10.
Repurchase agreements.
- Office of the State Treasurer is empowered to enter into repurchase agreements and reverse repurchase agreements in connection with fulfilling its role related to managing the investment and liquidity needs of the state.
2012 Op. Att'y Gen. No. 12-1.
