How to Participate in LAIF
Local governmental agencies may participate in LAIF by filing a resolution adopted by the agency’s governing board with the State Treasurer’s Office and by completing and submitting a New LAIF Account form. Additionally, local agencies may deposit bond proceeds (one-time deposit) by following the aforementioned procedures, completing a bond application, and submitting all the original documentation with a completed copy of the Official Statement.
Note: Local agencies that wish to open a new account with LAIF, please contact the LAIF staff at (916) 653-3001.
| Documents Required | Regular LAIF Account | Bond Account & Trustee Bond Account |
|---|---|---|
| Resolution (see sample) | √ | √ |
| New Account Form | √ | |
| Bond Application | √ | |
| Official Statement | √ |
Regular LAIF accounts are subject to a $75 million cap and 15 transactions a month, while bond accounts are one-time deposits and have no cap. Bond proceeds may be withdrawn 30-calendar days from the day of deposit and each subsequent 30-day period. The withdrawal date will advance to the next business day and the 30-day period will go forward from that date when the maturity day falls on a holiday or a weekend.
The Treasurer’s investment program is designed to benefit all members of the Pooled Money Investment Account, which LAIF is a participant. Due to the nature of bond accounts, a drawdown schedule is required as part of the application. Therefore, bond accounts are one-way accounts. Bond proceeds are deposited into an account and funds are withdrawn until depleted. Reopening of the same account or re-depositing of funds from a prior issue to establish a new account is not permitted. This safeguard as well as the 30-day draw minimizes any negative impact or potential harm that the additional need for liquidity may create for the overall program.