CHAPTER 9.5. DESIGNATION OF STATE DEPOSITORIES
IC 5-13-9.5
Chapter 9.5. Designation of State Depositories
IC 5-13-9.5-1
Application by financial institution to be state depository;ineligibility; certificate
Sec. 1. (a) A financial institution may at any time file anapplication to become a depository and receive public funds of thestate on deposit. Except as provided in IC 5-13-8-1 and IC 5-13-8-7,designation of a depository to receive public funds of the statequalifies a depository to receive public funds of a politicalsubdivision. Applications for the state board of finance must be filedwith the treasurer of state. The treasurer shall submit eachapplication to the board.
(b) An application must:
(1) be made in writing on forms prescribed under section 8 ofthis chapter;
(2) contain terms and conditions as required and authorized bythis chapter; and
(3) offer to:
(A) receive public funds of the state on deposit; and
(B) provide the security required by IC 5-13-13-7 for thesafekeeping and prompt payment of the deposited funds.
(c) A financial institution is ineligible to become a depository andreceive public funds of the state if the institution:
(1) fails to maintain a capital ratio in excess of the minimumrequired by the governmental supervisory body of theinstitution; or
(2) has been found by the department of financial institutionsunder IC 28-1-2-40, or the financial institution's primary federalregulator, to not be in substantial compliance with the federalCredit Card Accountability Responsibility and Disclosure Actof 2009 as it applies to Indiana borrowers.
If the financial institution is already a depository, the institution maycontinue to hold the public funds until maturity to avoid theimposition of a penalty upon the depositor, although the financialinstitution may not accept the public funds for reinvestment and maynot accept additional public funds. A determination of the ratiodescribed in this subsection must be based on the institution's mostrecent periodic statement of condition filed with the institution'sgovernmental supervisory body under the regulatory accountingprinciples as prescribed by the supervisory body.
(d) A financial institution shall furnish to the board a certificateexecuted by an officer of the institution signifying that the institutionsatisfies:
(1) the requirements of subsection (c); and
(2) the requirement in section 6(b) of this chapter that the sumof:
(A) the total principal amount of the depository's outstandingloans to Indiana residents; plus (B) the total value of the depository's investments in Indianaresidents;
is at least equal to the total amount of public funds of the stateand political subdivisions of the state that are on deposit in thedepository.
The board may rely on a certificate furnished under this subsectionin determining whether to deposit public funds or reinvest publicfunds in the institution.
As added by P.L.18-1996, SEC.22. Amended by P.L.46-1997,SEC.14; P.L.115-2010, SEC.12.
IC 5-13-9.5-2
Consideration of applications
Sec. 2. The state board of finance shall consider all applicationsof financial institutions filed with the state board of finance.
As added by P.L.18-1996, SEC.22.
IC 5-13-9.5-3
Designation of qualified financial institutions as depositories
Sec. 3. (a) The state board of finance shall designate as adepository for public funds of the state any financial institutionqualified under section 1 of this chapter that:
(1) properly files an application to receive a deposit of publicfunds of the state and to provide the security required byIC 5-13-13-7; and
(2) is suitably located with reference to the convenience of theofficers and state institutions using that financial institution.
(b) The state board of finance may invite and act uponapplications and designate depositories at any time when additionaldepositories may be available or are required for the state or apolitical subdivision.
As added by P.L.18-1996, SEC.22.
IC 5-13-9.5-4
Expiration of designation as depository
Sec. 4. When the state board of finance has designated adepository for public funds, the treasurer of state shall accept theapplication of the financial institution to act as a depository forpublic funds. A designation under this section expires only under thefollowing conditions:
(1) The board of depositories revokes the status of the financialinstitution as a depository under section 6 of this chapter.
(2) The financial institution resigns as a depository undersection 7 of this chapter.
(3) Another law terminates the depository status of the financialinstitution.
As added by P.L.18-1996, SEC.22.
IC 5-13-9.5-5
Filing copy of institution's statement of condition Sec. 5. A financial institution designated as a depository underthis chapter shall, upon request of the treasurer of state, file a copyof the institution's most recent statement of condition.
As added by P.L.18-1996, SEC.22.
IC 5-13-9.5-6
Revocation of commission of depository; causes
Sec. 6. (a) The board for depositories regarding depositories ofpublic funds of the state may revoke the commission of anydepository at any time for any cause considered sufficient by theboard for depositories.
(b) The causes for which the board for depositories may revokethe commission of a depository under subsection (a) include thefailure of the depository to conduct lending activities in Indiana tosuch an extent that, at the end of each quarter, pursuant to thedepository's certification, the sum of:
(1) the total principal amount of the depository's outstandingloans to Indiana residents (as defined in IC 5-13-8-7); plus
(2) the total value of the depository's investments in Indianaresidents (as defined in IC 5-13-8-7);
is at least equal to the total amount of public funds of the state andpolitical subdivisions of the state that are on deposit in thedepository.
(c) Upon revocation, the depository shall immediately render anaccounting and make settlement for all public funds deposited withthe depository.
As added by P.L.18-1996, SEC.22.
IC 5-13-9.5-7
Resignation of depository
Sec. 7. Any depository designated under this chapter may resignas a depository and relinquish all public funds on deposit with thedepository. The resignation is effective:
(1) thirty (30) days after written notice is given to the stateboard of finance; and
(2) after settlement with the state board of finance for all publicfunds on deposit with the depository.
As added by P.L.18-1996, SEC.22.
IC 5-13-9.5-8
Forms
Sec. 8. (a) The state board of accounts, with the approval of theattorney general, shall prepare and prescribe:
(1) a form of agreement to receive public funds on deposit thatmay be accepted and executed, as provided in this chapter; and
(2) any other forms necessary to carry out this chapter.
(b) These forms must be used by the state board of finance anddepositories in the performance of the duties imposed upon the stateboard of finance by this chapter. All agreements and the rights of theparties must be subject to modification by any statute and by all rules
adopted by the department of financial institutions concerningwithdrawal of funds in times of emergency.
As added by P.L.18-1996, SEC.22.