Section 36-17-18

Investment of surplus state funds in obligations of United States.

(a) The State Treasurer is authorized and empowered, in his discretion, with the written approval of the Governor, to invest funds held in the State Treasury in direct obligation of the United States of America whenever and to the extent that the amount of any such funds exceeds the amount which the State Treasurer finds, with the written approval of the Governor, cannot be applied either immediately or within a short time to any purpose for which such funds are held.

(b) For the purpose of making investments under the provisions of this section, the State Treasurer, with the written approval of the Governor, is authorized to make purchases and sales of direct obligations of the United States of America, and the State Treasurer shall be the custodian thereof.

(c) All direct obligations of the United States of America in which any such funds are invested pursuant to the provisions of this section shall be registered in the name of the State Treasurer of Alabama in trust for such fund to which such investments belong, and all such direct obligations and any interest or other earnings thereon shall be held by the State Treasurer in the State Treasury in the fund in which the funds so invested were held prior to the investment thereof as herein authorized.

(d) All earnings and income from the investments under the provisions of this section, unless otherwise provided, are hereby appropriated to and made a part of the fund from which the investment is made.

(Acts 1945, No. 66, p. 63, §§ 1-4.)