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New Hampshire State Library
About Us - Departments - Library Development Services - Library Management - Sample Policies - Investment Policies

Investment Policies for NH Public Libraries

To: All NH Public Library Trustees and interested librarians
   
FROM: Tom Ladd, NH State Library June 2007

Chapter 164 of the 2007 Session Laws of NH will take effect on 17 August 2007.

The full text of the law is available at http://www.gencourt.state.nh.us/legislation/2007/HB0226.html

but a memo from Terry M. Knowles, Assistant Director of Charitable Trusts in the NH Attorney General’s Office summarizes the new requirements, which are not difficult. This memo is below.

If your board of library trustees holds the PRINCIPAL of trust funds, this law change requires that you file a copy of the investment policy you are already required to have with the AG’s office, and makes some adjustments in permissible investments.

If your board of library trustees does not hold the principal of trust funds, this law has no impact on you.

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Sample NH Investment Policies

Generic sample from NH AG's Office

Nashua Public Library

Richards Free Library, Newport

article: "Preparing an Investment Policy" Acrobat Symbol icon

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NH Attorney General Charitable Trusts letter:

June 26, 2007

TO: Trustees of Trust Funds, Library Trustees

RE: HB 226 Final Version

Dear Trustees:

I am enclosing a copy of the final version of HB 226 relative to the investment of trust funds that will become effective on August 17, 2007. The legislation amends the laws governing investments under the jurisdiction of the Trustees of Trust Funds and Library Trustees as follows:

TRUST FUNDS: Clarifies the discretion of Trustees of Trust Funds to invest in certain mutual funds The new law amends RSA 31:25 by expanding the pool of mutual funds available for investment by Trustees of Trust Funds to include both open-ended and close-ended issues as long as these investments meet the criteria specified in the law and conform with the Trustees' investment policy.

Allows trustees to invest funds in obligations with principal and interest fully guaranteed by the United States Government The new law amends RSA 31:25 by permitting Trustees to invest in "any open-end or closed-end management-type investment company or investment trust" provided the principal and interest is fully collateralized [guaranteed] by United States Government obligations.

Requires the trustees to adopt an investment policy for trust funds and to file the policy with the Attorney General The law requires Trustees of Trust Funds to file a copy of their investment policy with the Attorney General on an annual basis. This is a new requirement.

LIBRARY TRUSTEES: If you hold and invest the principal of any trust funds given, devised, or bequeathed to the library directly you are required under RSA 202-A:23 to conform to the provisions of RSA 31:25. If you do not hold the principal of any trust funds in your custody the provisions of RSA 31:25 do not apply.

CAPITAL RESERVE FUNDS: The new law amends RSA 34:5 and RSA 35:9 relative to the investment of capital reserve funds as follows:

"Amends RSA 34:5 by adding an additional category of acceptable investments thereby permitting Trustees of Trust Funds in cities to invest in "any open-end or closed-end management-type investment company or investment trust" provided the principal and interest is fully collateralized [guaranteed] by United States Government obligations.

"Amends RSA 34:5 by requiring the Trustees of Trust Funds in cities to formally adopt an investment policy and to file a copy of the investment policy with the Attorney General on an annual basis. This is a new requirement.

"Amends RSA 35:9 by adding an additional category of acceptable investments thereby permitting Trustees of Trust Funds in towns to invest in "any open-end or closed-end management-type investment company or investment trust" provided the principal and interest is fully collateralized [guaranteed] by United States Government obligations.

"Amends RSA 35:9 by transferring the responsibility for drafting an investment policy for capital reserve funds from the town's governing body (Selectmen), school district, village district, or county to the Trustees of Trust Funds.

"Amends RSA 35:9 by requiring the Trustees of Trust Funds in towns to file a copy of the capital reserve fund investment policy with the Attorney General on an annual basis. This is a new requirement.

The investment policies for both trust funds and capital reserve funds may be filed with the Attorney General at the same time the annual MS-9 and MS-10 reports are filed.

If you have any questions please do not hesitate to contact me.

Very truly yours,

Terry M. Knowles
Assistant Director of Charitable Trusts
terry.knowles@doj.nh.gov

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