35-315

35-315. Servicing banks; qualifications;
proposals

A. Any bank eligible to become an eligible depository having a total capital
structure of ten million dollars or more and assets of two hundred million dollars or
more and being otherwise in a sound condition is eligible to be the servicing bank for
the state.

B. On the first Monday in March of each year of award, the state board of
investment shall provide for public notice to the banks qualified to be a servicing bank
of the time and place at which servicing proposals will be received. Requests for
proposals shall clearly specify all services required to be performed by the servicing
bank. The servicing proposal submitted shall be the compensation for which the qualified
bank will agree to perform the required services as a servicing bank for the ensuing
period of designation as established by the board of investment. The award shall be made
for a period not to exceed five years and may be paid from general fund interest earnings
according to rules adopted by the board of investment.

C. On the fourth Monday in April of the year of the award, the state treasurer
shall receive the servicing proposals in writing. Only those proposals that conform to
the specifications set forth in the request for proposals shall be considered. The
qualified bank submitting the proposal with the highest value to this state, as
determined by the state treasurer and the board of investment, shall be designated as the
servicing bank. Designations shall be evidenced by the signing of the final proposal by
the state treasurer, the board of investment and the designee bank. The state treasurer
may maintain a bank account in conjunction with the servicing bank account, which must
have on deposit at all times a sum of money approximating the average dollar value of
daily warrants paid by the bank the previous month.

D. The state treasurer may request and qualified banks may submit proposals for any
or all of the services required. The state treasurer may specify differing contract
periods for any or all of the services required.

E. The state treasurer or servicing bank may terminate a servicing bank contract at
any time after sixty days' prior written notice is given.

F. In addition to the services required of the servicing bank, the state treasurer
shall contract for all other banking services required by any state agency. No state
agency shall contract for banking services except with the written permission of the
state treasurer.

G. This section does not require the state treasurer to utilize a servicing bank.

H. This section or the specifications set forth in the request for proposals shall
not be construed to require the servicing bank to purchase warrants.

I. Deposits and withdrawals of monies shall be made by the state treasurer on the
servicing bank.