CHAPTER 9. DEPOSIT AND INVESTMENT POWERS
IC 5-13-9
Chapter 9. Deposit and Investment Powers
IC 5-13-9-1
Investment powers; funds that may be invested
Sec. 1. (a) Except as provided in subsection (b), in addition to anyother statutory power to make investments, each county treasurer andeach fiscal officer of any political subdivision other than a county,under the guidelines established, respectively, by the board of countycommissioners of each county and the fiscal body of any othersubdivision, and any other officer of a local government entityauthorized by statute or court order to make investments, may investany funds held by each in accordance with this chapter.
(b) The treasurer of state may invest funds under section 2.5 ofthis chapter.
(c) The funds that may be invested under this chapter includemoney raised by bonds issued for a future specific purpose, sinkingfunds, depreciation reserve funds, gift, bequest or endowment, andany other funds available for investment.
As added by P.L.19-1987, SEC.11. Amended by P.L.18-1996,SEC.11; P.L.134-1999, SEC.1; P.L.220-2003, SEC.1.
IC 5-13-9-2
Investment of funds held in securities; cost in excess of par;protecting interest in funds invested; legal custodians; safekeepingreceipts
Sec. 2. (a) Each officer designated in section 1 of this chapter mayinvest or reinvest any funds that are held by the officer and availablefor investment in any of the following:
(1) Securities backed by the full faith and credit of the UnitedStates Treasury or fully guaranteed by the United States andissued by any of the following:
(A) The United States Treasury.
(B) A federal agency.
(C) A federal instrumentality.
(D) A federal government sponsored enterprise.
(2) Securities fully guaranteed and issued by any of thefollowing:
(A) A federal agency.
(B) A federal instrumentality.
(C) A federal government sponsored enterprise.
(3) Municipal securities issued by an Indiana localgovernmental entity, a quasi-governmental entity related to thestate, or a unit of government, municipal corporation, or specialtaxing district in Indiana, if the issuer has not defaulted on anyof the issuer's obligations within the twenty (20) yearspreceding the date of the purchase.
(b) If an investment under subsection (a)(1) is made at a cost inexcess of the par value of the securities purchased, any premium paidfor the securities shall be deducted from the first interest received
and returned to the fund from which the investment was purchased,and only the net amount is considered interest income.
(c) The officer making the investment may sell any securitiesacquired and may do anything necessary to protect the interests ofthe funds invested, including the exercise of exchange privilegeswhich may be granted with respect to maturing securities in caseswhere the new securities offered in exchange meet the requirementsfor initial investment.
(d) The investing officers of the political subdivisions are thelegal custodians of securities under this chapter. They shall acceptsafekeeping receipts or other reporting for securities from:
(1) a duly designated depository as prescribed in this article; or
(2) a financial institution located either in or out of Indianahaving custody of securities with a combined capital andsurplus of at least ten million dollars ($10,000,000) accordingto the last statement of condition filed by the financialinstitution with its governmental supervisory body.
(e) The state board of accounts may rely on safekeeping receiptsor other reporting from any depository or financial institution.
(f) In addition to any other investments allowed under thischapter, an officer of a conservancy district located in a city havinga population of more than four thousand six hundred fifty (4,650) butless than five thousand (5,000) may also invest in
(1) municipal securities and
(2) equity securities;
having a stated final maturity of any number of years or having nostated final maturity. The total investments outstanding under thissubsection may not exceed twenty-five percent (25%) of the totalportfolio of funds invested by the officer of a conservancy district.However, an investment that complies with this subsection when theinvestment is made remains legal even if a subsequent decrease inthe total portfolio invested by the officer of a conservancy districtcauses the percentage of investments outstanding under thissubsection to exceed twenty-five percent (25%).
(g) In addition to any other investments allowed under thischapter, a clerk-treasurer of a town with a population of more thansix thousand three hundred (6,300) but less than ten thousand(10,000) located in a county having a population of more than onehundred thousand (100,000) but less than one hundred five thousand(105,000) may also invest money in a host community agreementfuture fund established by ordinance of the town in
(1) municipal securities and
(2) equity securities;
having a stated final maturity of any number of years or having nostated final maturity. The total investments outstanding under thissubsection may not exceed twenty-five percent (25%) of the totalportfolio of funds invested by the clerk-treasurer of a town. However,an investment that complies with this subsection when theinvestment is made remains legal even if a subsequent decrease inthe total portfolio invested by the clerk-treasurer of a town causes the
percentage of investments outstanding under this subsection toexceed twenty-five percent (25%).
As added by P.L.19-1987, SEC.11. Amended by P.L.67-1989, SEC.1;P.L.72-1995, SEC.4; P.L.18-1996, SEC.12; P.L.54-1999, SEC.1;P.L.212-1999, SEC.1; P.L.170-2002, SEC.14; P.L.220-2003, SEC.2;P.L.115-2010, SEC.6.
IC 5-13-9-2.4
Repealed
(Repealed by P.L.220-2003, SEC.6.)
IC 5-13-9-2.5
Permitted investments; limitations
Sec. 2.5. (a) An officer designated in section 1 of this chapter mayinvest or reinvest funds that are held by the officer and available forinvestment in investments commonly known as money marketmutual funds that are in the form of securities of or interests in anopen-end, no-load, management-type investment company orinvestment trust registered under the provisions of the federalInvestment Company Act of 1940, as amended (15 U.S.C. 80a etseq.).
(b) The investments described in subsection (a) shall be madethrough depositories designated by the state board of finance asdepositories for state deposits under IC 5-13-9.5.
(c) The portfolio of an investment company or investment trustdescribed in subsection (a) must be limited to the following:
(1) Direct obligations of the United States.
(2) Obligations issued by any of the following:
(A) A federal agency.
(B) A federal instrumentality.
(C) A federal government sponsored enterprise.
(3) Repurchase agreements fully collateralized by obligationsdescribed in subdivision (1) or (2).
(d) The form of securities of or interests in an investmentcompany or investment trust described in subsection (a) must berated as one (1) of the following:
(1) AAAm, or its equivalent, by Standard and Poor'sCorporation or its successor.
(2) Aaa, or its equivalent, by Moody's Investors Service, Inc. orits successor.
(e) The form of securities in an investment company orinvestment trust described in subsection (a) is considered to have astated final maturity of one (1) day.
(f) The state board of accounts may rely on transactionconfirmations evidencing ownership of the form of securities of orinterests in an investment company or investment trust described insubsection (a).
As added by P.L.134-1999, SEC.3. Amended by P.L.115-2010,SEC.7.
IC 5-13-9-3
Repurchase agreements; funds held by officer and available forinvestment; obligations held as collateral
Sec. 3. (a) As used in this section, "repurchase agreement" meansan agreement:
(1) involving the purchase and guaranteed resale of securitiesbetween two (2) parties; and
(2) that may be entered into for a fixed term or arranged on anopen or a continuing basis as a continuing contract that:
(A) operates like a series of overnight repurchaseagreements;
(B) is renewed each day with the repurchase rate and theamount of funds invested determined daily; and
(C) for purposes of this article, is considered to have a statedfinal maturity of one (1) day.
(b) Each officer designated in section 1 of this chapter may enterinto, with any funds that are held by the officer and available forinvestment, repurchase agreements:
(1) with depositories designated by the state board of finance asdepositories for state deposits under IC 5-13-9.5; and
(2) involving the political subdivision's purchase andguaranteed resale of any interest-bearing obligations:
(A) issued; or
(B) fully insured or guaranteed;
by the United States, a United States government agency, aninstrumentality of the United States, or a federal governmentsponsored enterprise.
The depository shall determine daily that the amount of money inthis type of agreement must be fully collateralized by interest-bearingobligations as determined by their current market value. Thecollateral for this type of agreement is not subject to the provisionsof section 2(c) of this chapter.
(c) If the market value of the obligations being held as collateralfalls below the level required under subsection (b) or a higher levelestablished by agreement, the depository shall deliver additionalsecurities to the political subdivision to make the agreementcollateralized to the applicable level. The collateral involved in arepurchase agreement entered into under this section is not subjectto the maturity limitation provided in section 5.6 of this chapter.
(d) A political subdivision may invest in repurchase agreementswithout entering into a contract under IC 5-13-11 for an investmentcash management system.
As added by P.L.19-1987, SEC.11. Amended by P.L.49-1988, SEC.1;P.L.41-1996, SEC.1; P.L.18-1996, SEC.13; P.L.46-1997, SEC.10;P.L.134-2000, SEC.1.
IC 5-13-9-3.3
Investment of funds in obligations issued, assumed, or guaranteedby International Bank for Reconstruction and Redevelopment orAfrican Development Bank Sec. 3.3. Each officer designated in section 1 of this chapter mayinvest or reinvest any funds that are held by the officer and availablefor investment in obligations issued, assumed, or guaranteed by theInternational Bank for Reconstruction and Redevelopment or theAfrican Development Bank.
As added by P.L.18-1996, SEC.14.
IC 5-13-9-3.5
Investment and reinvestment of funds; participation in loans;lending securities
Sec. 3.5. (a) The fiscal officer of a political subdivision or countytreasurer that is located in a county containing a consolidated citymay invest or reinvest any funds that are held by the fiscal officer orthe county treasurer and that are available for investment inparticipations in loans. However, funds may be invested orreinvested in a participation in loans under this subsection only underthe following conditions:
(1) The principal of the participation in loans must beguaranteed by an agency or instrumentality of the United Statesgovernment.
(2) The participation in loans must be represented by acertificate issued by a bank that is:
(A) incorporated under the laws of Indiana, another state, orthe United States; and
(B) insured by the Bank Insurance Fund of the FederalDeposit Insurance Corporation.
(b) Funds may be invested or reinvested in a participation in loansunder subsection (a) even though the certificate representing theparticipation in loans is not insured by the Bank Insurance Fund ofthe Federal Deposit Insurance Corporation.
(c) A fiscal officer or county treasurer described in subsection (a)may lend any securities acquired under this section or section 2 ofthis chapter. However, securities may be lent under this subsectiononly if the agreement under which the securities are lent iscollateralized by:
(1) cash; or
(2) interest bearing obligations that are issued by, fully insuredby, or guaranteed by the United States, an agency of the UnitedStates government, a federal instrumentality, or a federalgovernment sponsored enterprise in excess of the total marketvalue of the loaned securities.
As added by P.L.44-1990, SEC.6. Amended by P.L.8-1991, SEC.3;P.L.29-1992, SEC.4; P.L.57-1993, SEC.5; P.L.18-1996, SEC.15;P.L.46-1997, SEC.11.
IC 5-13-9-4
Deposit, investment, or reinvestment of funds in transactionaccounts; certificates of deposit; deposit accounts
Sec. 4. (a) Each officer designated in section 1 of this chapter maydeposit, invest, or reinvest any funds that are held by the officer and
available for investment in transaction accounts issued or offered bya designated depository of a political subdivision for the rates andterms agreed upon periodically by the officer making the investmentand the designated depository.
(b) The investing officer making a deposit in a certificate ofdeposit shall obtain quotes of the specific rates of interest for theterm of that certificate of deposit that each designated depository willpay on the certificate of deposit. Quotes may be solicited and takenby telephone. A memorandum of all quotes solicited and taken shallbe retained by the investing officer as a public record of the politicalsubdivision under IC 5-14-3. If the deposit is not placed in thedesignated depository quoting the highest rate of interest, theinvesting officer shall:
(1) place the deposit in the depository quoting the second orthird highest rate of interest; and
(2) note the reason for placing the deposit on the memorandumof quotes.
(c) If all of the designated depositories of a political subdivisiondecline to issue or receive any deposit account, or to issue or receivethe deposit account at a rate of interest equal to the highest rate beingoffered other investors, investments may be made in the depositaccounts of any financial institution designated for state deposits asa depository by the state board of finance under IC 5-13-9.5.
As added by P.L.19-1987, SEC.11. Amended by P.L.50-1988, SEC.1;P.L.44-1990, SEC.7; P.L.57-1993, SEC.6; P.L.18-1996, SEC.16;P.L.46-1997, SEC.12; P.L.173-2003, SEC.2; P.L.115-2010, SEC.8.
IC 5-13-9-5
Authorization to invest in certificates of deposit; quotes fromdepositories
Sec. 5. (a) The board of county commissioners of each county,and the fiscal body of each political subdivision other than a county,may by ordinance or resolution authorize the investing officer ofeach, respectively, to invest in certificates of deposit of depositoriesthat have not been designated by the local board of finance of eitherbut have been designated by the state board of finance as adepository for state deposits under IC 5-13-9.5. An ordinance or aresolution adopted under this subsection must provide that theauthority granted in the ordinance or resolution expires on a date thatis not later than two (2) years after the date the ordinance orresolution is adopted.
(b) With respect to any money to be invested in a deposit accountunder subsection (a), the investing officer shall solicit quotes for thecertificates of deposit from at least three (3) depositories. If only one(1) depository has been designated for the political subdivision by itslocal board of finance, a quote must be solicited from thatdepository. If two (2) or more depositories have been designated forthe political subdivision by its local board of finance, at least two (2)quotes must be solicited from the depositories thus designated. Thequotes may be solicited and taken by telephone. A memorandum of
all quotes solicited and taken shall be retained by the investingofficer as a public record of the political subdivision underIC 5-14-3.
(c) If a deposit is not placed in the designated depository quotingthe highest rate of interest, the investing officer shall follow theprocedures and priority for placing deposits that are set forth insection 4 of this chapter and note the reason for placing the depositon the memorandum of quotes.
As added by P.L.19-1987, SEC.11. Amended by P.L.47-1991, SEC.1;P.L.18-1996, SEC.17; P.L.46-1997, SEC.13; P.L.115-2010, SEC.9.
IC 5-13-9-5.3
Authorization to invest in certificates of deposit; conditions
Sec. 5.3. (a) In addition to the authority to invest in certificates ofdeposit under section 5 of this chapter, and notwithstanding anyother law, the board of county commissioners of each county, and thefiscal body of each political subdivision other than a county, may byordinance or resolution authorize the investing officer of each,respectively, to invest public funds in certificates of deposit inaccordance with the following conditions:
(1) The funds are initially invested through a depository that isselected by the investing officer.
(2) The selected depository arranges for the deposit of the fundsin certificates of deposit in one (1) or more federally insuredbanks or savings and loan associations, wherever located, forthe account of the county or political subdivision.
(3) The full amount of the principal and any accrued interest ofeach certificate of deposit are covered by insurance of anyfederal deposit insurance agency.
(4) The selected depository acts as a custodian for the county orpolitical subdivision with respect to the certificates of depositissued for its account.
(5) At the same time that the county's or political subdivision'sfunds are deposited and the certificates of deposit are issued,the selected depository receives an amount of deposits coveredby insurance of any federal deposit insurance agency fromcustomers of other institutions, wherever located, at least equalto the amount of the funds invested by the county or politicalsubdivision through the selected depository.
(b) Public funds invested in accordance with subsection (a) arenot subject to any security or pledging requirements that mayotherwise be applicable to the deposit or investment of public funds.
As added by P.L.115-2010, SEC.10.
IC 5-13-9-5.6
Final maturity
Sec. 5.6. Except for investments allowed under section 2(f) or2(g) of this chapter, investments made under this chapter must havea stated final maturity of not more than:
(1) five (5) years for a conservancy district located in a city
having a population of more than four thousand six hundredfifty (4,650) but less than five thousand (5,000);
(2) five (5) years for investments made from a host communityagreement future fund established by ordinance of a town witha population of more than six thousand three hundred (6,300)but less than ten thousand (10,000) located in a county havinga population of more than one hundred thousand (100,000) butless than one hundred five thousand (105,000); or
(3) two (2) years for a fund or political subdivision notdescribed in subdivision (1) or (2);
after the date of purchase or entry into a repurchase agreement.
As added by P.L.18-1996, SEC.18. Amended by P.L.54-1999, SEC.2;P.L.212-1999, SEC.2; P.L.170-2002, SEC.15.
IC 5-13-9-6
Interest received from investment; deposit; receipt; reinvestment;disposition
Sec. 6. (a) All interest derived from an investment by a politicalsubdivision or by any other local public officer under the authoritygranted by section 3 of this chapter shall be deposited, except asotherwise provided by law, in the general fund of the investmentauthority or in any other fund its governing body designatesspecifically or by rule, subject to the modifications and limitationsin this section.
(b) Interest from the following investments shall be receipted asfollows:
(1) Interest from investments of funds of a political subdivisionthat are traceable to United States government funds must bereceipted to the fund of which they are a part, if required byfederal law or regulation.
(2) Interest from investments of funds controlled by courtorders must be receipted to that fund unless otherwisedesignated by the court order.
(c) Each county treasurer, if authorized by the board of countycommissioners, may invest tax collections under this chapter pendingdistribution of the collections to political subdivisions. Theseinvestments may not:
(1) exceed the amount available after giving consideration totaxes which may need to be advanced to any politicalsubdivision; or
(2) be made in deposit accounts or repurchase agreements, thematurity dates of which are later than the time when the taxcollections are required by law to be distributed to politicalsubdivisions.
(d) The interest received on the investments made undersubsection (c) shall be receipted to the county general fund or anyother fund from which expenses incurred in the maintenance ofcounty highways may be paid. The county fiscal body (as defined inIC 36-1-2-6) shall determine the allocation of this interest among thegeneral fund and the various highway funds into which the interest
may be deposited.
(e) Any political subdivision may apply the interest derived fromthe investment of the proceeds from bonded indebtedness or local taxlevies to the appropriate redemption bond interest or sinking fund forthe bonded indebtedness.
(f) If meter deposits of a municipally owned utility are invested,the interest earned on the investment may be applied to and used inthe operation or depreciation fund of the municipally owned utilityas determined by its governing body.
(g) Interest from the investment of the public funds of a politicalsubdivision may not be paid personally or for the benefit of anypublic officer.
As added by P.L.19-1987, SEC.11. Amended by P.L.68-1989, SEC.1;P.L.18-1996, SEC.19.
IC 5-13-9-7
Repealed
(Repealed by P.L.18-1996, SEC.33.)
IC 5-13-9-8
Service charge to depository
Sec. 8. Any investing officer of a political subdivision that makesa deposit in any deposit or other account may be required to pay aservice charge to the depository in which the funds are deposited, ifthe depository requires all customers to pay the charge for providingthat service. However, the service charge imposed must beconsidered in the computation of the interest rate for determiningwhich depositories are entitled to investments as prescribed bysections 4 and 5 of this chapter. If the total service charge cannot becomputed before the investment, the investing officer shall estimatethe service charge and adjust the interest rate based on this estimate.The service charge may be paid by direct charge to the deposit orother account or in any other manner mutually agreed upon by theinvesting officer and the depository.
As added by P.L.19-1987, SEC.11. Amended by P.L.18-1996,SEC.20.
IC 5-13-9-8.5
Designation as public funds
Sec. 8.5. Funds deposited in deposit accounts in accordance withthis chapter and interest earned or accrued on the funds are publicfunds and are covered by the insurance fund.
As added by P.L.18-1996, SEC.21.
IC 5-13-9-9
Prohibited acts
Sec. 9. An officer designated in section 1 of this chapter may notdo the following:
(1) Purchase securities on margin.
(2) Open a securities margin account for the investment of
public funds.
As added by P.L.72-1995, SEC.5.
IC 5-13-9-10
County joint investment fund; participating political subdivisions;written master agreement; administration of board; interestpayments
Sec. 10. (a) The investing officers of two (2) or more politicalsubdivisions located within a county may establish a joint investmentfund by entering into a written master agreement that defines therights and obligations of the participating political subdivisions.
(b) An investing officer of a political subdivision that enters intoa written master agreement under subsection (a) may pay funds thatare held by the investing officer and that are available for investmentinto the joint investment fund.
(c) The fund shall be administered by a board, which must becomprised of the investing officer of each of the participatingpolitical subdivisions and which must be an instrumentality of theparticipating political subdivisions. Each officer of a politicalsubdivision located within the county who is designated in section 1of this chapter may pay funds that are held by the officer andavailable for investment into a joint fund known as a joint investmentfund. The fund is administered by a board comprised of the investingofficer of each of the participating political subdivisions and is aninstrumentality of the participating political subdivisions.
(d) A joint investment fund must be invested and reinvested as aseparate and individual fund. A joint investment fund may beinvested or reinvested only in investments that are permitted forpolitical subdivisions by this chapter.
(e) A written master agreement under subsection (a) must providethe following:
(1) A political subdivision may participate in a joint investmentfund only with the written authorization of its local board offinance.
(2) A political subdivision may participate in a joint investmentfund only if its legislative body approves the written masteragreement.
(3) Subject to subsection (d), the board of a joint investmentfund shall establish written policies for the investment andreinvestment of joint investment funds in the manner providedby IC 30-4-3-3.
(4) A fund shall be invested and reinvested as prescribed insubdivision (3).
(5) A custodian bank or trust company located in Indiana must:
(A) be selected and contracted by the board of a jointinvestment fund to hold the securities and other investmentsof the joint investment fund;
(B) collect the income and other receipts from the securitiesand other investments; and
(C) provide any other services appropriate and customary for
a custodian;
subject to the direction of the board of a joint investment fund.
(6) The board of a joint investment fund may select and contractwith a fund administrator to provide investment advice to theboard and any other services determined by the board to beappropriate and necessary for the efficient administration andaccounting of the joint investment fund. The fund administratorshall agree to recommend only securities and other investmentsas prescribed in the written policies established by the board inrendering investment advice to the board and shall agree to beresponsible, accountable, and liable for any breach of thisprovision. The fund administrator must have experience in theinvestment of public funds for governmental entities and mustbe either of the following:
(A) A financial institution located in Indiana.
(B) Registered as an investment adviser with the UnitedStates Securities and Exchange Commission under theInvestment Advisers Act of 1940, as amended (15 U.S.C.80a-9 et seq.), with public funds under management in theamount of at least one hundred million dollars($100,000,000).
(7) A joint investment fund must be audited at least annually byan independent auditing firm, with a copy of the audit providedto each participating political subdivision.
(8) The administrative expenses of a joint investment fund,including fees for the fund administrator, custodian, auditor,and other professional services, must be paid from the fund'sinterest earnings.
(9) The interest earnings that exceed the administrativeexpenses of a joint investment fund must be credited to eachpolitical subdivision participating in the joint investment fundin a manner that equitably reflects the differing amounts andterms of the political subdivision's investment in the jointinvestment fund.
(10) Each participating political subdivision shall receivereports, including a daily transaction confirmation reflectingany activity in the political subdivision's account and monthlyreports reflecting its investment activity in the joint investmentfund and the performance and composition of the jointinvestment fund itself.
(11) The board of a joint investment fund shall meet at leastannually to review the operation and performance of the jointinvestment fund, the custodian, the fund administrator, theauditor, and any other professional retained by the board.
(12) The board of a joint investment fund shall provide for anyother policies that are necessary for the efficient administrationand accounting of the joint investment fund and are consistentwith the law governing the investment, management, deposit,and safekeeping of public funds of political subdivisions.
As added by P.L.224-2003, SEC.276. Amended by P.L.3-2008,
SEC.27; P.L.115-2010, SEC.11.
IC 5-13-9-11
Local government investment pool
Sec. 11. (a) As used in this section, "investment pool" means thelocal government investment pool established by subsection (b).
(b) The local government investment pool is established withinthe office and custody of the treasurer of state.
(c) An officer designated in section 1 of this chapter may pay anyfunds held by the officer into the investment pool for the purpose ofdeposit, investment, and reinvestment of the funds by the treasurerof state on behalf of the unit of government paying the funds into theinvestment pool.
(d) The treasurer of state may pay state funds into the investmentpool for the purpose of deposit, investment, and reinvestment of thestate funds.
(e) The treasurer of state shall invest the funds in the investmentpool in the same manner, in the same type of instruments, and subjectto the same limitations provided for the deposit and investment ofstate funds by the treasurer of state under IC 5-13-10.5.
(f) The treasurer of state:
(1) shall administer the investment pool; and
(2) may contract with accountants, attorneys, regulatedinvestment advisors, money managers, and other finance andinvestment professionals to make investments and provide forthe public accounting and legal compliance necessary to ensureand maintain the safety, liquidity, and yield of the investmentpool.
(g) The treasurer of state shall establish and make public thepolicies that the treasurer of state will follow to ensure the efficientadministration of and accounting for the investment pool. Thepolicies must provide the following:
(1) There is not a minimum time for which funds paid into theinvestment pool must be retained by the investment pool.
(2) The administrative expenses of the investment pool shall beaccounted for by the treasurer of state and shall be paid fromthe earnings of the investment pool.
(3) The earnings of the investment pool in excess of theadministrative expenses of the investment pool shall be creditedto the state and each unit of government participating in theinvestment pool in a manner that equitably reflects the differentamounts and terms of the state's investment and each unit'sinvestment in the investment pool.
(4) There is not a limit on the number of accounts that the stateor a unit of government participating in the investment poolmay establish within the investment pool.
(5) The state and each unit of government participating in theinvestment pool shall receive electronic or paper reports,including:
(A) a daily transaction confirmation, reflecting any activity
in the state's or unit's account; and
(B) a monthly report showing:
(i) the state's or unit's investment activity in the investmentpool; and
(ii) the performance and composition of the investmentpool.
(6) The investment pool shall be audited at least annually by anindependent auditing firm, with an electronic or a paper copy ofthe audit provided to the state and each unit of governmentparticipating in the pool.
(7) No less than fifty percent (50%) of funds available forinvestment shall be deposited in banks qualified to holddeposits of participating local government entities.
(h) A unit of government participating in the investment pool mayelect to have any funds due from the state wired directly to thecustodian bank of the investment pool for credit to the unit'sinvestment pool account by submitting in writing a request to theauditor of state to wire the funds as directed. An election made by aunit of government under this subsection may be revoked at any timeby the unit by submitting in writing a request to the auditor of stateto cease wiring the funds as previously directed by the unit.
As added by P.L.117-2007, SEC.1.