Model Custodial Agreement for Use with Collateral Pools

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Section 10 of the New York State General Municipal Law was amended in 2005 to authorize an additional option for local governments to secure deposits and temporary investment of public funds. Under the new law, local governments have the option to accept as security a pledge of a pro rata portion of a "pool" of eligible securities. Local governments that choose to utilize the new pooled collateral option must take necessary steps to ensure that their deposits and investment are properly secure.