CHAPTER 8. DESIGNATION OF DEPOSITORIES
IC 5-13-8
Chapter 8. Designation of Depositories
IC 5-13-8-1
Deposit of public funds; prerequisites
Sec. 1. (a) A political subdivision may deposit public funds in afinancial institution only if the financial institution:
(1) is a depository eligible to receive state funds; and
(2) has a principal office or branch that qualifies under section9 of this chapter to receive public funds of the politicalsubdivision.
(b) The state board of finance shall make available informationconcerning financial institutions eligible to receive state funds asmay be requested by a local board of finance. A local board offinance may rely on certificates described in IC 5-13-9.5-1(d) indetermining to deposit public funds or reinvest public funds in thefinancial institution.
As added by P.L.19-1987, SEC.10. Amended by P.L.5-1988, SEC.37;P.L.66-1989, SEC.1; P.L.44-1990, SEC.2; P.L.2-1993, SEC.47;P.L.74-1995, SEC.2; P.L.18-1996, SEC.7; P.L.46-1997, SEC.5.
IC 5-13-8-2
Repealed
(Repealed by P.L.18-1996, SEC.33.)
IC 5-13-8-3
Repealed
(Repealed by P.L.18-1996, SEC.33.)
IC 5-13-8-4
Repealed
(Repealed by P.L.18-1996, SEC.33.)
IC 5-13-8-5
Repealed
(Repealed by P.L.18-1996, SEC.33.)
IC 5-13-8-6
Forms; filing copy of institution's statement of condition
Sec. 6. (a) The state board of accounts shall prepare andconsolidate the forms that are required under this chapter orIC 5-13-9.5, or both, to eliminate unnecessary paperwork.
(b) These forms must be used by the state board of finance and theseveral local boards of finance and depositories in the performanceof the duties imposed under this chapter. The rights of politicalsubdivisions and designated depositories must be subject tomodification by any statute and by all rules adopted by thedepartment of financial institutions respecting withdrawal of fundsin times of emergency.
(c) A financial institution designated as a depository under this
chapter shall, upon request of the appropriate investing officer, filewith the investing officer a copy of the institution's most recentstatement of condition filed with the institution's governmentalsupervisory body under the regulatory accounting principles asprescribed by the supervisory body.
As added by P.L.19-1987, SEC.10. Amended by P.L.18-1996, SEC.8;P.L.46-1997, SEC.6.
IC 5-13-8-7
Revocation of commission of depository to do business withIndiana resident
Sec. 7. (a) As used in this section, "Indiana resident" means anyof the following:
(1) An individual who is a resident of Indiana.
(2) A political subdivision (as defined in IC 36-1-2-13) inIndiana.
(3) A corporation, a limited liability company, a partnership, alimited partnership, a trust, an estate, or other legal entity that:
(A) is established under Indiana law; or
(B) maintains its principal office in Indiana.
(4) A corporation, a limited liability company, a partnership, alimited partnership, a trust, an estate, or other legal entity that:
(A) is established under the law of a state other than Indiana;and
(B) carries out substantial business activities in Indiana,including the employment of individuals who reside inIndiana.
(b) As used in this section, "investment in an Indiana resident"means an investment in an interest-bearing obligation of a politicalsubdivision (as defined in IC 36-1-2-13) in Indiana.
(c) The local board of finance under which any depositoryoperates may at any time revoke the commission of any depositoryat a meeting called for the purpose of revoking a commission, ofwhich the depository shall have been notified by advance writtennotice sent by first class or registered mail not less than twenty (20)days before the meeting and at which the depository has the right tobe heard. Not later than thirty (30) days after a local board of financerevokes the commission of a depository, the local board of financeshall give written notice of the action to the board of depositories.
(d) The local board of finance may revoke the commission of anydepository to do business with the political subdivision:
(1) if the depository is unwilling or unable to perform bankingservices reasonably required by the local board of finance,considering the volume of transactions, that are:
(A) related to the public funds deposited in a deposit accountdescribed in IC 5-13-9-4(a); and
(B) required by the political subdivision served by the localboard of finance to carry out the responsibilities of thepolitical subdivision, as determined by the local board offinance; (2) if the depository is unwilling or unable to comply with astate or federal statute, rule, or other regulation that governs therecords or handling of public funds of the political subdivisionserved by the local board of finance, as determined by the localboard of finance;
(3) if the depository ceases to qualify as a depository under thischapter, as determined by the local board of finance;
(4) if the depository fails to conduct lending activities inIndiana to such an extent that, at the end of each quarter,pursuant to the depository's certification, the sum of:
(A) the total principal amount of outstanding loans toIndiana residents; plus
(B) the total value of investments in Indiana residents;
will at least equal the total amount of the public funds of thestate and political subdivisions of the state that are on depositin the financial institution; or
(5) for any cause that is adopted in the written rules of the localboard of finance and that is directly related to the safe handlingof public funds.
(e) Upon revocation, the depository shall immediately render anaccounting and make settlement for all public funds deposited withthe depository.
As added by P.L.19-1987, SEC.10. Amended by P.L.74-1995, SEC.3;P.L.18-1996, SEC.9; P.L.46-1997, SEC.7.
IC 5-13-8-8
Repealed
(Repealed by P.L.46-1997, SEC.18.)
IC 5-13-8-9
Deposit of funds in depositories within respective territorial limitsof political subdivisions; exceptions
Sec. 9. (a) All public funds of all political subdivisions shall bedeposited in the designated depositories located in the respectiveterritorial limits of the political subdivisions, except as provided inthis section.
(b) Each board of finance of a political subdivision:
(1) that is not a city, town, or school corporation; and
(2) whose jurisdiction crosses one (1) or more county lines;
may limit its boundaries for the purpose of this section to that portionof the political subdivision within the county where its principaloffice is located.
(c) If there is no principal office or branch of a financialinstitution located in the county or political subdivision, or if nofinancial institution with a principal office or branch in the county orpolitical subdivision will accept public funds under this chapter, theboard of finance of the county and the boards of finance of thepolitical subdivisions in the county shall designate one (1) or morefinancial institutions with a principal office or branch outside of thecounty or political subdivision, and in the state, as a depository or
depositories.
(d) The board of trustees for a hospital organized or operatedunder IC 16-22-1 through IC 16-22-5 or IC 16-23-1 may invest anymoney in the hospital fund anywhere in the state with any financialinstitution designated by the state board of finance as depositories forstate deposits.
(e) If only one (1) financial institution that has a branch orprincipal office in a county or political subdivision is willing toaccept public funds, the board of finance for the county or politicalsubdivision may:
(1) treat the financial institution that is located within thecounty or political subdivision as if the financial institutionwere not located within the county or political subdivision; and
(2) designate one (1) or more financial institutions to receivepublic funds under the requirements of subsection (c).
(f) The investing officer shall maintain the deposits as follows:
(1) In one (1) or more depositories designated for the politicalsubdivision, if the sum of the monthly average balances of allthe transaction accounts for the political subdivision does notexceed one hundred thousand dollars ($100,000).
(2) In each depository designated for the political subdivision,if subdivision (1) does not apply and fewer than three (3)financial institutions are designated by the local board offinance as a depository.
(3) In at least two (2) depositories designated for the politicalsubdivision, if subdivision (1) does not apply and at least three(3) financial institutions are designated by the local board offinance as a depository.
As added by P.L.19-1987, SEC.10. Amended by P.L.44-1990, SEC.4;P.L.2-1993, SEC.48; P.L.75-1995, SEC.1; P.L.74-1995, SEC.4;P.L.18-1996, SEC.10; P.L.46-1997, SEC.8; P.L.173-2003, SEC.1.
IC 5-13-8-10
Repealed
(Repealed by P.L.18-1996, SEC.33.)
IC 5-13-8-11
Repealed
(Repealed by P.L.18-1996, SEC.33.)
IC 5-13-8-12
Repealed
(Repealed by P.L.44-1990, SEC.8.)
IC 5-13-8-13
Resignation as depository
Sec. 13. Any depository designated under this chapter may resignas a depository and relinquish all public funds on deposit with thedepository. The resignation is effective after thirty (30) days noticein writing to the state board of finance and after settlement with the
proper board of finance for all public funds on deposit with thedepository.
As added by P.L.19-1987, SEC.10. Amended by P.L.46-1997, SEC.9.