CHAPTER 14. INDIANA UNIVERSITY PERMANENT ENDOWMENT FUND
IC 21-7-14
Chapter 14. Indiana University Permanent Endowment Fund
IC 21-7-14-1
Application
Sec. 1. This chapter applies to money in the fund.
As added by P.L.2-2007, SEC.244.
IC 21-7-14-2
"Fund"
Sec. 2. As used in this chapter, "fund" refers to the IndianaUniversity permanent endowment fund in the custody of the treasurerof state.
As added by P.L.2-2007, SEC.244.
IC 21-7-14-3
Treasurer of state to hold fund; state board of finance to managefund
Sec. 3. (a) The treasurer of state is the exclusive custodian of thefund.
(b) The state board of finance has full and complete managementand control of the fund. The state board of finance shall invest thefund as provided in IC 20.
As added by P.L.2-2007, SEC.244.
IC 21-7-14-4
Fund investment
Sec. 4. Except as provided in this chapter, the fund shall beinvested in:
(1) bonds, notes, certificates, and other valid obligations of theUnited States;
(2) bonds, notes, debentures, and other securities issued by anyfederal instrumentality and fully guaranteed by the UnitedStates;
(3) bonds, notes, certificates, and other valid obligations of anystate of the United States or any county, township, city, town,or other political subdivision in Indiana that are issued underlaw, the issuers of which, for five (5) years before the date ofthe investment, have promptly paid the principal and interest ontheir bonds and other legal obligations in lawful money of theUnited States; or
(4) bonds, notes, or other securities issued by the Indiana bondbank and described in IC 5-13-10.5-11(3).
As added by P.L.2-2007, SEC.244.
IC 21-7-14-5
Disbursements from fund; deposit of securities
Sec. 5. (a) The state board of finance shall direct all disbursementfrom the fund. The auditor of state shall draw the auditor of state'swarrant on the treasurer of state, on a properly itemized voucher
officially approved by:
(1) the president of the state board of finance; or
(2) any member of the state board of finance if the president isabsent.
(b) Except as otherwise provided by this chapter, all securitiespurchased for the fund shall be deposited with and remain in thecustody of the state board of finance. The state board of finance shallcollect all interest or other income accruing on the securities, whendue, together with the principal of the securities when the principalmatures and is due. Except as provided by subsection (c), all moneycollected under this subsection shall be credited to the proper fundaccount on the records of the auditor of state, and the collection shallbe deposited with the treasurer of state and reported to the stateboard of finance.
(c) All money collected under an agreement that is sold,transferred, or liquidated under IC 20-49-4-23 shall be immediatelytransferred to the purchaser, transferee, or assignee of the agreement.
As added by P.L.2-2007, SEC.244.
IC 21-7-14-6
State board of finance; powers; rulemaking
Sec. 6. (a) The state board of finance may:
(1) make all rules;
(2) employ all help;
(3) purchase all supplies and equipment; and
(4) incur all expense;
necessary to properly carry out this chapter.
(b) The expense incident to the administration of this chapter shallbe paid from any money in the state treasury not otherwiseappropriated upon the warrant of the auditor of state and issued ona properly itemized voucher approved by the president of the stateboard of finance.
As added by P.L.2-2007, SEC.244.
IC 21-7-14-7
Annual examination; state board of accounts; report
Sec. 7. The state board of accounts shall annually examine thestatus of the fund by a field examiner or field examiners assigned bythe state examiner. Upon the completion of the examination, theexaminers performing the duty shall prepare a report of theexamination. The report must show:
(1) all necessary, pertinent information;
(2) the balance of the fund's principal at the close of theprevious examination;
(3) the amount of interest and principal paid by each county tothe state board of finance since the close of the previousexamination;
(4) the balance of principal due at the date of closing of thereport;
(5) a statement of receipts and disbursements by the state board
of finance;
(6) a list of the securities found to be possessed by the stateboard of finance;
(7) the amount of each security; and
(8) the total amount of all the securities held in custody.
The appropriate officer of the state board of finance shall sign the listdescribed in subdivision (6) in duplicate. The original signed listshall be deposited with the state board of accounts, and the duplicateof the signed list shall be kept in the files of the treasurer of state.
As added by P.L.2-2007, SEC.244.
IC 21-7-14-8
Loans from fund
Sec. 8. Notwithstanding any other law, the treasurer of state:
(1) on the terms that the treasurer of state prescribes; and
(2) without the approval of the state board of finance;
may make loans from the principal of the fund to the fund's board oftrustees.
As added by P.L.2-2007, SEC.244.
IC 21-7-14-9
Loans from fund; security
Sec. 9. The auditor of state shall loan as much of the fund as is notat any time absorbed by the nonnegotiable bonds of the state issuedunder this chapter at six percent (6%) interest, payable annually inadvance in real estate security. Except as otherwise provided in thischapter, in making loans and disbursing the interest collected, thetreasurer of state and the auditor of state are governed by the law inforce regulating the manner of making loans of the university fundsand paying out interest collected.
As added by P.L.2-2007, SEC.244.
IC 21-7-14-10
Loans from fund; records
Sec. 10. (a) The auditor of state shall make a complete record ofevery mortgage and note executed on account of any loan from thefund, in a book to be kept in the auditor of state's office for thatpurpose.
(b) On payment of any loan to the fund, the auditor of state shall:
(1) enter a record of satisfaction in full on the margin of therecord of the mortgage and sign the record; and
(2) enter satisfaction in full on the face of the mortgage.
(c) The mortgage, when presented by the mortgagor or any personholding title under the mortgagor, to the recorder of the county inwhich the land mortgaged is located, authorizes the recorder of thecounty to copy the entry on the record in the recorder's office.
As added by P.L.2-2007, SEC.244.
IC 21-7-14-11
Loans from fund; state bonds Sec. 11. (a) If the state requires the loan of any part or all of thefund, the state is a preferred borrower of as much of the fund as isnot loaned at the time.
(b) The treasurer of state shall cause to be executed, as evidenceof a loan under this section, a nonnegotiable bond of the state for theamount borrowed, in the following manner:
(1) The bond must be signed by the governor and treasurer ofstate and attested by the secretary of state and the seal of thestate.
(2) The bond must be made payable in fifty (50) years after thedate of execution, at the option of the state.
(3) The bond shall bear five percent (5%) interest from the dateof execution until paid.
(4) The interest on the bond must be:
(A) paid semiannually on May 1 and November 1 of eachyear;
(B) applied to the current and extraordinary expenses ofIndiana University; and
(C) paid to the board of trustees under the same rules andregulations as is required by law in the payment of therevenues of Indiana University.
The nonnegotiable bond provided for in this section, when executed,must remain in the custody of the treasurer of state.
(c) If Indiana University is consolidated with any othereducational institution or institutions of the state, or is removed fromthe location of the university as of June 5, 1883, for any cause, thefunds raised under this chapter shall be held and used for the benefitof the institution, as consolidated or changed, notwithstanding thechange or consolidation.
As added by P.L.2-2007, SEC.244.
IC 21-7-14-12
Loans from fund; nonpayment; suit for collection
Sec. 12. Whenever:
(1) the auditor of state has made loans from the fund that weresecured by a mortgage upon real property;
(2) the mortgaged premises are forfeited to the state fornonpayment of the amount due or are purchased for the state bythe auditor of state for the benefit of the fund; and
(3) the mortgaged premises when sold fail to sell for a sumsufficient to satisfy the principal and interest of the loan anddamages;
the auditor of state shall bring suit on the note executed by themortgagor for the deficiency, for which the maker is liable. Ifjudgment is rendered on the suit, an appraisement of property is notallowed on the execution issued on the judgment.
As added by P.L.2-2007, SEC.244.