Section 34: Deposit of public monies
Section 34. (a) State officers, departments, institutions and other agencies may, with the written consent of the state treasurer, deposit a portion of the public monies in their possession in national banks, federal savings banks and federal savings and loan associations, lawfully doing business within the commonwealth, and in trust companies, savings banks and 1 cooperative banks chartered under the laws of the commonwealth. The state treasurer shall publish a list of qualified banks and shall transmit that list at least once every 6 months to the governor. The state treasurer shall not include on the list a state-chartered bank having a descriptive rating as described in clauses (d) or (e) of the sixth paragraph under section 14 of chapter 167 or any federally insured depository institution having an assigned rating of (C) or (D) under section 807(b) (2) of the Community Reinvestment Act of 1977, 12 U.S.C. 2901 et seq.
(b) A state treasurer who knowingly makes a deposit in violation of subsection (a) shall be guilty of misconduct and maladministration in the treasurer's office within the meaning of the constitution, any other officer who knowingly makes a deposit in violation of subsection (a) shall be guilty of misconduct and maladministration in his office, and a depository institution knowingly receiving a deposit in violation of subsection (a) shall be disqualified from receiving such monies for 3 years from the date of the deposit.
(c) All interest received on any deposits under this section shall be paid to the commonwealth.