Temporarily idle monies of the city not currently needed, may in accordance with the procedure hereinafter described be invested:
(a) In temporary notes or no-fund warrants issued by the city;
(b) In savings deposits, demand deposits, time deposit, open accounts, certificates of deposit or time certificates of deposit with maturities of not more than two years:
(1) In banks, savings and loan associations and savings banks which have main or branch offices located in the city; or
(2) If no main or branch office of a bank, savings and loan association or savings bank is located in the city, then in banks, savings and loan associations and savings banks, which have main or branch offices in the county or counties in which all or part of the city is located.
(c) In repurchase agreements with:
(1) Banks, savings and loan associations and savings banks, which have main or branch offices located in the city, for direct obligations of, or obligations that are insured as to principal and interest by, the United States government or any agency thereof;
(2) If no main or branch office of a bank, savings and loan association or savings bank, is located in the city. If no such bank, savings and loan association or savings bank having a main or branch office located in the city is willing to enter into such an agreement with the city at an interest rate equal to or greater than the investment rate, as defined in K.S.A. 12-1675a(g), and amendments thereto, then such repurchase agreements may be entered into with banks, savings and loan associations or savings banks which have main or branch offices in the county or counties in which all or part of the city is located; or
(3) If no bank, savings and loan association or savings bank, having a main or branch office in such county or counties is willing to enter into such an agreement with the city at an interest rate equal to or greater than the investment rate, as defined in K.S.A. 12-1675a(g), and amendments thereto, then such repurchase agreements may be entered into with banks, savings and loan associations or savings banks located within the state.
(d) In direct obligations of or obligations that are insured as to principal and interest by the United States or any agency thereof, not including mortgage-backed securities with maturities as the governing body shall determine, but not exceeding two years. Such investment transactions shall only be conducted with banks, savings and loan associations and savings banks; the Federal Reserve Bank of Kansas City, Missouri; or with primary government securities dealers which report to the market report division of the Federal Reserve Bank of New York, or any broker-dealer engaged in the business of selling government securities which is registered in compliance with the requirements of §§ 15 or 15C of the Securities Exchange Act of 1934 and registered pursuant to K.S.A. 17-12a401, and amendments thereto;
(e) In the Municipal Investment Pool Fund established in K.S.A. 12-1677a, and amendments thereto;
(f) In the investments authorized and in accordance with the conditions prescribed in K.S.A. 12-1677b, and amendments thereto;
(g) In multiple municipal client investment pools managed by the trust departments of banks which have main or branch offices located in county or counties where city is located or with trust companies incorporated under the laws of this state which have contracted to provide trust services under the provisions of K.S.A. 9-2107, and amendments thereto, with banks which have main or branch offices located in the county or counties in which the city is located. Public monies invested under this division (g) shall be secured in the same manner as provided for under K.S.A. 9-1402, and amendments thereto. Pooled investments of public monies made by trust departments under this division (g) shall be subject to the same terms, conditions and limitations as are applicable to the municipal investment pool established by K.S.A. 12-1677a, and amendments thereto;
(h) The investments authorized in divisions (d), (e), (f) or (g) above shall be utilized only if the banks, savings and loan associations and savings banks eligible for investments authorized in division (b) above, cannot or will not make the investments authorized in division (b) above available to the city at interest rates equal to or greater than the investment rate, as defined in K.S.A. 12-1675a(g), and amendments thereto; or
(i) In selecting a depository pursuant to division (b) above, if a bank, savings and loan association or savings bank eligible for an investment deposit thereunder has an office located in the city and such financial institution will make such deposits available to the city at interest rates equal to or greater than the investment rate, as defined in K.S.A. 12-1675a(g), and amendments thereto, and such financial institution otherwise qualifies for such deposit, the governing body shall select one or more of such eligible financial institutions for deposit of funds pursuant to this section. If no such financial institution qualifies for such deposits, the city shall select for such deposits one or more eligible banks, savings and loan associations or savings banks which have offices in the county or counties in which all or a part of the city is located which will make such deposits available to the city at interest rates equal to or greater than the investment rate, as defined in K.S.A. 12-1675a(g), and amendments thereto, and which otherwise qualify for such deposits.
(K.S.A. 12-1675) (1987 Code, § 1-702)