17-2-202. Retention of agency money. The department of administration may, in its discretion, permit any state agency to retain in its possession, under conditions the department of administration may prescribe, money that would otherwise be deposited in the custodial fund as defined in 17-2-102. The department of administration may cancel this permission and require the deposit of the money with the state treasurer. However, the state treasurer, with the consent of the board of investments, shall designate depositories for the money and securities and require indemnifying bonds or pledged securities sufficient to adequately and properly secure the amounts deposited in the depositories.