6:8-b Agreements Relating to Registered Bonds and Notes. –
I. In connection with the issuance by the state of original or replacement bonds or notes in registered form, the treasurer is authorized to contract for and engage the services of banks, trust companies, banking or financial institutions or other persons within or without the state to perform authentication, registration, transfer, exchange and record or book entry functions, and prepare and maintain reports and accounts and perform related duties relative to the payment of those bonds or notes and the interest thereon. The treasurer may also enter into agreements with custodian banks and financial intermediaries and nominees of any of them in connection with the establishment and maintenance by others of a central depository system for the transfer of bonds and notes or of interests therein.
II. Any agreement entered into under this section shall include provisions for indemnifying the state for losses sustained by it on account of the negligence of a designated bank, trust company, banking or financial institution or on account of the failure of such designated bank, trust company, banking or financial institution to perform faithfully its duties and obligations under the agreement. The agreement may include additional provisions, necessary or desirable, to protect the state and may provide for the limitation of liabilities of the parties, indemnification or payment of liquidated damages.
Source. 1983, 468:1. 2008, 120:4, eff. Aug. 2, 2008.