32 V.S.A. § 431 — Depositories of State funds

(a) The Treasurer and the Governor shall select the banks in which the funds of the State
Treasury shall be deposited. Each agency or department of the State shall be required
to obtain the approval of the Treasurer to establish and maintain a bank account of
a selected bank as well as develop procedures, approved by the Treasurer, to reconcile
a bank account.
(b) The Treasurer is hereby authorized to enter into a pledgee agreement with the Federal
Reserve Bank for the purposes of collateralization of account balances through the
use of a joint-custody account. The Treasurer is authorized to execute the Federal
Reserve Bank’s standard form pledgee agreement, including the limitations of liability,
limitations of duties, and indemnification contained in the pledgee agreement. (Amended 1977, No. 162 (Adj. Sess.), § 2; 1989, No. 73, § 272; 1997, No. 147 (Adj. Sess.), § 261a; 2003, No. 66, § 38b; 2007, No. 121 (Adj. Sess.), § 25.)