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Local Government Pools


Local Government Investment Pool Trust Fund
Administration and Enforcement Act


The following text describes Section 11-51-901--908 of the Colorado Securities Statute. (This Act)

(A link to the full statute text can be found at the STATUTE AND RULES page)

Under this Act, interests in a local government investment pool trust fund are defined as "securities". The solicitation of a local government to participate in a local government investment pool trust fund constitutes an "offer" to sell a security by the trust fund to the local government, and the consummation of an agreement to participate in a local government investment pool trust fund constitutes a "sale" of a security by the trust fund to the local government.

This Act makes it unlawful for the board of trustees of any local government investment pool trust fund to permit the investment of trust fund assets unless the trust fund is registered with the securities commissioner under this this Act. It is also unlawful for a local government to participate in a local government investment pool trust fund unless the trust fund is registered with the securities commissioner under this this Act.

The general registration requirements are as follows:

 

(1) A local government investment pool trust fund shall register with the securities commissioner under this Act by filing a notice, in such form as prescribed by the securities commissioner, and a copy of the resolution adopted pursuant to section 24-75-703, C.R.S. The notice shall be filed on the Form TR.

(2) Any local government investment pool trust fund organized pursuant to the provisions of part 7 of article 75 of title 24, C.R.S., as it existed prior to July 1, 1993, shall register with the securities commissioner under this part 9 by filing a notice, in such form as prescribed by the securities commissioner, and the resolution adopted pursuant to the provisions of part 7 of article 75 of title 24, C.R.S., as it existed prior to July 1, 1993, no later than thirty days after July 1, 1993.

(3) The information to be provided to the securities commissioner by a local government investment pool trust fund in the notice for registration shall include, but need not be limited to:

(a) The name and address of the trust fund;
(b) The name and address of the administrator of the trust fund;
(c) The name and address of each of the custodians of the assets of the trust fund;
(d) The name and address of each of the investment advisers of the trust fund and each of the financial institutions acting in an advisory capacity for the trust fund;
(e) Identification of each participating local government in the trust fund; and
(f) The total assets of the trust fund as of the date of filing.

(4) Every filing of the notice and resolution required under this section shall be accompanied by a fee; except that no such registration fee shall be more than five thousand dollars.

The local government investment pool trust fund shall inform the securities commissioner of any material change regarding the administrator, investment adviser, broker-dealer, or financial institution acting in an advisory capacity, or custodian of the trust fund within ten days of such change and quarterly reports must be filed in the form prescribed by the Securities Commissioner. All financial statements shall be prepared in accordance with generally accepted accounting principles except as the securities commissioner may otherwise provide by rule or order.

The local government investment pool trust fund shall file with the securities commissioner an annual audit of the trust fund to be completed at least annually, but at intervals of not more than fifteen months, performed by an independent certified public accountant. Every filing of the annual audit shall be accompanied by a fee and the Form TR; except that no such annual fee shall be more than two thousand dollars.

The Form TR can be found in PDF format at FORMS

 

Fee Schedules

 

Initial Registration Fees

FUND BALANCE

FEE

$0.00 - $99,999,999 $1,000
$100,000,000 - $199,999,999 $2,000
$200,000,000 - $299,999,999 $3,000
$300,000,000 - $399,999,999 $4,000
$400,000,000  and above $5,000

 

 

Annual Fees

FUND BALANCE

FEE

$0.00 - $99,999,999 $1,000
$100,000,000 - $199,999,999 $2,000
$200,000,000 - $299,999,999 $3,000
$300,000,000 - $399,999,999 $4,000
$400,000,000 and above $5,000

 

Partial List of Forms
 

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(303) 894-2320 - Phone (303) 861-2126 - Fax