86.1410. Board to be trustee of funds--powers and duties.
Board to be trustee of funds--powers and duties.
86.1410. 1. The retirement board shall act as trustee of the fundscreated by or collected under the provisions of sections 86.1310 to86.1640. With appropriate safeguards against loss by the retirementsystem, the board may designate one or more banks or trust companies toserve as a depository of retirement system funds and as an intermediary inthe investment of those funds and payment of system obligations. The boardshall promptly deposit the funds with any such designated bank or trustcompany.
2. The retirement board shall have power, in the name and on behalfof the retirement pension system, to purchase, acquire, hold, invest, lend,lease, sell, assign, transfer, and dispose of all property, rights, andsecurities, and enter into written contracts, all as may be necessary orproper to carry out the purposes of sections 86.1310 to 86.1640. Noinvestment transaction authorized by the retirement board shall be handledby any company or firm in which a member of the board has an interest, norshall any member of the board profit directly or indirectly from any suchinvestment. All investments shall be made for the account of theretirement system, and any securities or other properties obtained by theretirement board may be held by a custodian in the name of the retirementsystem, or in the name of a nominee in order to facilitate the expeditioustransfer of such securities or other properties. Such securities or otherproperties may be held by such custodian in bearer form or in book entryform. The retirement system is further authorized to deposit, or havedeposited for its account, eligible securities in a central depositorysystem or clearing corporation or in a federal reserve bank under a bookentry system as defined in the uniform commercial code, sections 400.8-102and 400.8-117, RSMo. When such eligible securities of the retirementsystem are so deposited with the central depository system they may bemerged and held in the name of the nominee of such securities depositoryand title to such securities may be transferred by bookkeeping entry on thebooks of such securities depository or federal reserve bank withoutphysical delivery of the certificates or documents representing suchsecurities.
3. The retirement board may contract with a bank or trust company toact as the custodian of bonds and securities acquired by the board, inwhich case the retirement board may authorize such custodian bank or trustcompany to order purchases, loans, or sales of investments by suchcustodian bank or trust company, and may also appoint one or moreinvestment managers to manage investments of the retirement pension systemand in the course of such management to order purchases, loans, or sales ofinvestments by such custodian bank or trust company, subject to suchlimitations, reporting requirements and other terms and restrictions as theretirement board may include in the terms of each such appointment. Theincome from investments shall be credited to the funds of the retirementsystem at frequent intervals satisfactory to the retirement board. Allpayments from the funds shall be made by the bank or trust company onlyupon orders signed by the secretary and treasurer of the retirement board,except as otherwise provided in this subsection. No order shall be drawnunless it shall have previously been allowed by a specific or an ongoinggeneralized resolution of the retirement board. In the case of paymentsfor benefits, services, supplies, or similar items in the ordinary courseof business, such board resolutions may be ongoing generalizedauthorizations, provided that each payment other than payments to membersor beneficiaries for benefits shall be reported to the board at its nextfollowing meeting and shall be subject to ratification and approval by theboard.
4. Before assuming the duties of office, the secretary and treasurershall each be bonded for an amount determined by the retirement board atthe cost of the retirement system, conditioned upon the faithfulperformance of the duties as such officer, and to account for all moneys,securities, and property which may come into their respective hands orunder their respective control by virtue of such office, with a corporatesurety duly licensed to transact business in this state. Such bonds shallbe subject to the approval of the presiding judge of the circuit court ofthe county in which such cities are located.
(L. 2005 H.B. 323)