IC 5-13-10.5-1 Applicability of chapter
Sec. 1. This chapter applies to the following funds:
(1) Funds raised by bonds issued for a future specific purpose.
(2) Sinking funds.
(3) Depreciation reserve funds.
(4) Gifts.
(5) Bequests or endowments.
(6) Any other funds available for investment. As added by P.L.18-1996, SEC.23.
IC 5-13-10.5-2 Authorization for investment and reinvestment of funds
Sec. 2. In addition to any other statutory power to make
investments under any other law:
(1) the treasurer of state, under the guidelines established by the
state board of finance; and
(2) any other public officer of the state authorized by statute or
court order to make investments;
may invest or reinvest funds held by the treasurer of state or other
public officer in any combination of the investments authorized
under this chapter. In making the investment, the public official shall
comply with the requirements in this chapter that apply to the
investment. As added by P.L.18-1996, SEC.23.
IC 5-13-10.5-3 Final maturity; percentage of investments outstanding; investment
advisers and money managers; investment of money from
transportation corridor fund
Sec. 3. (a) Except as provided in subsection (b), investments
under this chapter may be made only in securities having a stated
final maturity of two (2) years or less from the date of purchase.
(b) The treasurer of state may make investments in securities
having a final maturity or redemption date that is more than two (2)
years and not more than five (5) years after the date of purchase or
subscription. After an investment is made under this subsection, the
total investments outstanding under this subsection may not exceed
twenty-five percent (25%) of the total portfolio of funds invested by
the treasurer of state. However, an investment that complies with this
subsection when the investment is made remains legal even if a
subsequent decrease in the total portfolio invested by the treasurer of
state causes the percentage of investments outstanding under this
subsection to exceed twenty-five percent (25%). The treasurer of
state may contract with federally regulated investment advisers and
other institutional money managers to make investments under this
section.
(c) Unless prohibited under federal law, the treasurer of state shall
invest under subsection (b) the funds of the transportation corridor
fund established by IC 8-4.5-3-7. The treasurer of state may invest
other funds held by the state in compliance with subsection (b). As added by P.L.18-1996, SEC.23. Amended by P.L.46-1997,
SEC.15; P.L.220-2003, SEC.3; P.L.115-2008, SEC.14.
IC 5-13-10.5-4 Protection of interests of funds
Sec. 4. A public officer making an investment under this chapter
may sell any securities acquired and may take any action necessary
to protect the interests of the funds invested, including the exercise
of exchange privileges that may be granted with respect to maturing
securities if the new securities offered in exchange meet the
requirements for initial investment. As added by P.L.18-1996, SEC.23.
IC 5-13-10.5-5 Legal custodian; safekeeping receipts
Sec. 5. (a) The treasurer of state is the legal custodian of securities
under this chapter. The treasurer of state shall accept safekeeping
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 Indiana
having physical custody of securities with a combined capital
and surplus of at least ten million dollars ($10,000,000)
according to the last statement of condition filed by the
financial institution with its governmental supervisory body.
(b) The state board of accounts may rely on safekeeping receipts
or other reporting from any depository or financial institution. As added by P.L.18-1996, SEC.23.
IC 5-13-10.5-6 Restrictions on public officers
Sec. 6. A public officer of the state may not do the following:
(1) Purchase securities on margin.
(2) Open a securities margin account for the investment of
public funds. As added by P.L.18-1996, SEC.23.
IC 5-13-10.5-7 Investment in securities; cost in excess of par
Sec. 7. (a) A public officer of the state may invest or reinvest
funds held by the officer and available for investment in securities
that are:
(1) backed by the full faith and credit of the United States
Treasury or fully guaranteed by the United States; and
(2) issued by any of the following:
(A) The United States Treasury.
(B) A federal agency.
(C) A federal instrumentality.
(D) A federal government sponsored enterprise.
(b) If an investment under subsection (a) is made at a cost in
excess of the par value of the securities purchased, any premium paid
for 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. As added by P.L.18-1996, SEC.23.
IC 5-13-10.5-8 Investment in deposit accounts
Sec. 8. (a) A public officer of the state may invest or reinvest
funds held by the officer and available for investment in deposit
accounts issued or offered by a designated depository. Investments
under this subdivision by the treasurer of state are governed by
IC 5-13-10.
(b) Investments in deposit accounts under subsection (a) must be
in the amounts, and for the rates and terms, as are agreed upon from
time to time by the officer making the investment and the designated
depository.
(c) Investments made in accordance with subsection (a) and the
interest earned or accrued on them are public funds and are covered
by the insurance fund. As added by P.L.18-1996, SEC.23.
IC 5-13-10.5-9 Investment in repurchase or resale agreements; collateral
Sec. 9. (a) A public officer of the state may invest any funds held
by the officer and available for investment into agreements,
commonly known as repurchase or resale agreements with
depositories designated by the state board of finance as depositories
for state deposits, involving the purchase and guaranteed resale of
any interest-bearing obligations that are:
(1) issued; or
(2) fully insured or guaranteed;
by the United States, any United States government agency, any
instrumentality of the United States government, or any federal
government sponsored enterprise. The amount of money in this type
of agreement must be fully collateralized by interest-bearing
obligations as determined by the current market value computed on
the day on which a transaction is effective.
(b) The collateral for the type of agreement described in
subsection (a) is not subject to the maturity limitation in section 3 of
this chapter. As added by P.L.18-1996, SEC.23. Amended by P.L.46-1997,
SEC.16; P.L.134-2000, SEC.2.
IC 5-13-10.5-10 Investment in obligations issued; assumed or guaranteed by certain
banks or State of Israel
Sec. 10. A public officer of the state may invest or reinvest funds
that are held by the public officer and available for investment in
obligations issued, assumed, or guaranteed as to the payment of
principal and interest by:
(1) the International Bank for Reconstruction and
Redevelopment;
(2) the African Development Bank; or
(3) the State of Israel. As added by P.L.18-1996, SEC.23. Amended by P.L.220-2003,
SEC.4.
IC 5-13-10.5-11 Investment in other obligations
Sec. 11. The treasurer of state may invest or reinvest funds that
are held by the treasurer and that are available for investment in
obligations issued by any of the following:
(1) Agencies or instrumentalities of the United States
government.
(2) Federal government sponsored enterprises.
(3) The Indiana bond bank, if the obligations are secured by tax
anticipation time warrants or notes that:
(A) are issued by a political subdivision (as defined in
IC 36-1-2-13); and
(B) have a maturity date not later than the end of the
calendar year following the year of issuance. As added by P.L.18-1996, SEC.23. Amended by P.L.1-2004, SEC.2
and P.L.23-2004, SEC.2.
IC 5-13-10.5-11.5 Treasurer of state may invest
Sec. 11.5. The treasurer of state may invest or reinvest funds that
are held by the treasurer and that are available for investment in
commercial paper rated in the highest rating category by one (1)
nationally recognized rating service and with a stated final maturity
of two hundred seventy (270) days or less from the date of purchase. As added by P.L.220-2003, SEC.5.
IC 5-13-10.5-12 Investment in participations in loans
Sec. 12. (a) The treasurer of state may invest or reinvest any funds
that are held by the treasurer and available for investment, in
participations in loans. However, funds may be invested or
reinvested in a participation in loans under this subsection only under
the following conditions:
(1) The principal of the participation in loans must be
guaranteed by an agency or instrumentality of the United States
government.
(2) The participation in loans must be represented by a
certificate issued by a bank that is:
(A) incorporated under the laws of Indiana, another state, or
the United States; and
(B) insured by the Bank Insurance Fund of the Federal
Deposit Insurance Corporation.
(b) Funds may be invested or reinvested in a participation in loans
under subsection (a) even if the certificate representing the
participation in loans is not insured by the Bank Insurance Fund of
the Federal Deposit Insurance Corporation. As added by P.L.18-1996, SEC.23.
IC 5-13-10.5-13 Lending securities
Sec. 13. The treasurer of state may lend any securities acquired
under section 7 or 11 of this chapter. However, securities may be lent
under this section only if the agreement under which the securities
are lent is collateralized by:
(1) cash; or
(2) interest bearing obligations that are issued by, fully insured
by, or guaranteed by the United States, an agency of the United
States government, a federal instrumentality, or a federal
government sponsored enterprise;
in excess of the total market value of the loaned securities. As added by P.L.18-1996, SEC.23.
IC 5-13-10.5-14 Designation of fund
Sec. 14. The board of trustees of a state university may designate
the fund to which the interest of its investments shall be receipted. As added by P.L.18-1996, SEC.23.
IC 5-13-10.5-15 Public depository insurance assessment
Sec. 15. Any public depository insurance assessment paid by a
depository on any deposit account of the state under IC 5-13-12-5
shall be deducted from the interest otherwise payable on that
account. As added by P.L.18-1996, SEC.23.
IC 5-13-10.5-16 Interest from investments
Sec. 16. Interest from the investment of the public funds of the
state may not be paid personally or for the benefit of any public
officer. As added by P.L.18-1996, SEC.23.
IC 5-13-10.5-17 Service charge
Sec. 17. Any public officer of the state that makes a deposit in any
deposit or other account may be required to pay a service charge to
the depository in which the funds are deposited, if the depository
requires all customers to pay the charge for providing that service. If
the total service charge cannot be computed before the investment,
the investing officer of the state shall estimate the service charge and
adjust the interest rate based on this estimate. The service charge
may be paid by direct charge to the deposit or other account or in any
other manner mutually agreed upon by the investing officer and the
depository. As added by P.L.18-1996, SEC.23.
IC 5-13-10.5-18 Investment in capital improvement board; application; terms of
investment
Sec. 18. (a) As used in this section, "capital improvement board"
refers to a capital improvement board established under IC 36-10-9.
(b) To qualify for an investment under this section, the capital
improvement board must apply to the treasurer of state in the form
and manner required by the treasurer. As part of the application, the
capital improvement board shall submit a plan for its use of the
investment proceeds and for the repayment of the capital
improvement board's obligation to the treasurer. Within sixty (60)
days after receipt of each application, the treasurer shall consider the
application and review its accuracy and completeness.
(c) If the capital improvement board makes an application under
subsection (b) and the treasurer approves the accuracy and
completeness of the application and determines that there is an
adequate method of payment for the capital improvement board's
obligations, the treasurer of state shall invest or reinvest funds that
are held by the treasurer and that are available for investment in
obligations issued by the capital improvement board for the purposes
of the capital improvement board in calendar years 2009, 2010, and
2011. The investment may not exceed nine million dollars
($9,000,000) per calendar year for 2009, 2010, and 2011.
(d) The treasurer of state shall determine the terms of each
investment and the capital improvement board's obligation, which
must include the following:
(1) The duration of the capital improvement board's obligation,
which must be for a term of ten (10) years with an option for the
capital improvement board to pay its obligation to the treasurer
early without penalty.
(2) The repayment schedule of the capital improvement board's
obligation, which must provide that no payments are due before
January 1, 2013.
(3) A rate of interest to be determined by the treasurer.
(4) The amount of each investment, which may not exceed the
maximum amounts established for the capital improvement
board by this section.
(5) Any other conditions specified by the treasurer.
(e) The capital improvement board may issue obligations under
this section by adoption of a resolution and, as set forth in IC 5-1-14,
may use any source of revenue to satisfy the obligation to the
treasurer of state under this section. This section constitutes complete
authority for the capital improvement board to issue obligations to
the treasurer. If the capital improvement board fails to make any
payments on the capital improvement board's obligation to the
treasurer, the amount payable shall be withheld by the auditor of
state from any other money payable to the capital improvement
board. The amount withheld shall be transferred to the treasurer to
the credit of the capital improvement board. As added by P.L.182-2009(ss), SEC.78.
IC 5-13-10.5-1 Applicability of chapter
Sec. 1. This chapter applies to the following funds:
(1) Funds raised by bonds issued for a future specific purpose.
(2) Sinking funds.
(3) Depreciation reserve funds.
(4) Gifts.
(5) Bequests or endowments.
(6) Any other funds available for investment. As added by P.L.18-1996, SEC.23.
IC 5-13-10.5-2 Authorization for investment and reinvestment of funds
Sec. 2. In addition to any other statutory power to make
investments under any other law:
(1) the treasurer of state, under the guidelines established by the
state board of finance; and
(2) any other public officer of the state authorized by statute or
court order to make investments;
may invest or reinvest funds held by the treasurer of state or other
public officer in any combination of the investments authorized
under this chapter. In making the investment, the public official shall
comply with the requirements in this chapter that apply to the
investment. As added by P.L.18-1996, SEC.23.
IC 5-13-10.5-3 Final maturity; percentage of investments outstanding; investment
advisers and money managers; investment of money from
transportation corridor fund
Sec. 3. (a) Except as provided in subsection (b), investments
under this chapter may be made only in securities having a stated
final maturity of two (2) years or less from the date of purchase.
(b) The treasurer of state may make investments in securities
having a final maturity or redemption date that is more than two (2)
years and not more than five (5) years after the date of purchase or
subscription. After an investment is made under this subsection, the
total investments outstanding under this subsection may not exceed
twenty-five percent (25%) of the total portfolio of funds invested by
the treasurer of state. However, an investment that complies with this
subsection when the investment is made remains legal even if a
subsequent decrease in the total portfolio invested by the treasurer of
state causes the percentage of investments outstanding under this
subsection to exceed twenty-five percent (25%). The treasurer of
state may contract with federally regulated investment advisers and
other institutional money managers to make investments under this
section.
(c) Unless prohibited under federal law, the treasurer of state shall
invest under subsection (b) the funds of the transportation corridor
fund established by IC 8-4.5-3-7. The treasurer of state may invest
other funds held by the state in compliance with subsection (b). As added by P.L.18-1996, SEC.23. Amended by P.L.46-1997,
SEC.15; P.L.220-2003, SEC.3; P.L.115-2008, SEC.14.
IC 5-13-10.5-4 Protection of interests of funds
Sec. 4. A public officer making an investment under this chapter
may sell any securities acquired and may take any action necessary
to protect the interests of the funds invested, including the exercise
of exchange privileges that may be granted with respect to maturing
securities if the new securities offered in exchange meet the
requirements for initial investment. As added by P.L.18-1996, SEC.23.
IC 5-13-10.5-5 Legal custodian; safekeeping receipts
Sec. 5. (a) The treasurer of state is the legal custodian of securities
under this chapter. The treasurer of state shall accept safekeeping
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 Indiana
having physical custody of securities with a combined capital
and surplus of at least ten million dollars ($10,000,000)
according to the last statement of condition filed by the
financial institution with its governmental supervisory body.
(b) The state board of accounts may rely on safekeeping receipts
or other reporting from any depository or financial institution. As added by P.L.18-1996, SEC.23.
IC 5-13-10.5-6 Restrictions on public officers
Sec. 6. A public officer of the state may not do the following:
(1) Purchase securities on margin.
(2) Open a securities margin account for the investment of
public funds. As added by P.L.18-1996, SEC.23.
IC 5-13-10.5-7 Investment in securities; cost in excess of par
Sec. 7. (a) A public officer of the state may invest or reinvest
funds held by the officer and available for investment in securities
that are:
(1) backed by the full faith and credit of the United States
Treasury or fully guaranteed by the United States; and
(2) issued by any of the following:
(A) The United States Treasury.
(B) A federal agency.
(C) A federal instrumentality.
(D) A federal government sponsored enterprise.
(b) If an investment under subsection (a) is made at a cost in
excess of the par value of the securities purchased, any premium paid
for 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. As added by P.L.18-1996, SEC.23.
IC 5-13-10.5-8 Investment in deposit accounts
Sec. 8. (a) A public officer of the state may invest or reinvest
funds held by the officer and available for investment in deposit
accounts issued or offered by a designated depository. Investments
under this subdivision by the treasurer of state are governed by
IC 5-13-10.
(b) Investments in deposit accounts under subsection (a) must be
in the amounts, and for the rates and terms, as are agreed upon from
time to time by the officer making the investment and the designated
depository.
(c) Investments made in accordance with subsection (a) and the
interest earned or accrued on them are public funds and are covered
by the insurance fund. As added by P.L.18-1996, SEC.23.
IC 5-13-10.5-9 Investment in repurchase or resale agreements; collateral
Sec. 9. (a) A public officer of the state may invest any funds held
by the officer and available for investment into agreements,
commonly known as repurchase or resale agreements with
depositories designated by the state board of finance as depositories
for state deposits, involving the purchase and guaranteed resale of
any interest-bearing obligations that are:
(1) issued; or
(2) fully insured or guaranteed;
by the United States, any United States government agency, any
instrumentality of the United States government, or any federal
government sponsored enterprise. The amount of money in this type
of agreement must be fully collateralized by interest-bearing
obligations as determined by the current market value computed on
the day on which a transaction is effective.
(b) The collateral for the type of agreement described in
subsection (a) is not subject to the maturity limitation in section 3 of
this chapter. As added by P.L.18-1996, SEC.23. Amended by P.L.46-1997,
SEC.16; P.L.134-2000, SEC.2.
IC 5-13-10.5-10 Investment in obligations issued; assumed or guaranteed by certain
banks or State of Israel
Sec. 10. A public officer of the state may invest or reinvest funds
that are held by the public officer and available for investment in
obligations issued, assumed, or guaranteed as to the payment of
principal and interest by:
(1) the International Bank for Reconstruction and
Redevelopment;
(2) the African Development Bank; or
(3) the State of Israel. As added by P.L.18-1996, SEC.23. Amended by P.L.220-2003,
SEC.4.
IC 5-13-10.5-11 Investment in other obligations
Sec. 11. The treasurer of state may invest or reinvest funds that
are held by the treasurer and that are available for investment in
obligations issued by any of the following:
(1) Agencies or instrumentalities of the United States
government.
(2) Federal government sponsored enterprises.
(3) The Indiana bond bank, if the obligations are secured by tax
anticipation time warrants or notes that:
(A) are issued by a political subdivision (as defined in
IC 36-1-2-13); and
(B) have a maturity date not later than the end of the
calendar year following the year of issuance. As added by P.L.18-1996, SEC.23. Amended by P.L.1-2004, SEC.2
and P.L.23-2004, SEC.2.
IC 5-13-10.5-11.5 Treasurer of state may invest
Sec. 11.5. The treasurer of state may invest or reinvest funds that
are held by the treasurer and that are available for investment in
commercial paper rated in the highest rating category by one (1)
nationally recognized rating service and with a stated final maturity
of two hundred seventy (270) days or less from the date of purchase. As added by P.L.220-2003, SEC.5.
IC 5-13-10.5-12 Investment in participations in loans
Sec. 12. (a) The treasurer of state may invest or reinvest any funds
that are held by the treasurer and available for investment, in
participations in loans. However, funds may be invested or
reinvested in a participation in loans under this subsection only under
the following conditions:
(1) The principal of the participation in loans must be
guaranteed by an agency or instrumentality of the United States
government.
(2) The participation in loans must be represented by a
certificate issued by a bank that is:
(A) incorporated under the laws of Indiana, another state, or
the United States; and
(B) insured by the Bank Insurance Fund of the Federal
Deposit Insurance Corporation.
(b) Funds may be invested or reinvested in a participation in loans
under subsection (a) even if the certificate representing the
participation in loans is not insured by the Bank Insurance Fund of
the Federal Deposit Insurance Corporation. As added by P.L.18-1996, SEC.23.
IC 5-13-10.5-13 Lending securities
Sec. 13. The treasurer of state may lend any securities acquired
under section 7 or 11 of this chapter. However, securities may be lent
under this section only if the agreement under which the securities
are lent is collateralized by:
(1) cash; or
(2) interest bearing obligations that are issued by, fully insured
by, or guaranteed by the United States, an agency of the United
States government, a federal instrumentality, or a federal
government sponsored enterprise;
in excess of the total market value of the loaned securities. As added by P.L.18-1996, SEC.23.
IC 5-13-10.5-14 Designation of fund
Sec. 14. The board of trustees of a state university may designate
the fund to which the interest of its investments shall be receipted. As added by P.L.18-1996, SEC.23.
IC 5-13-10.5-15 Public depository insurance assessment
Sec. 15. Any public depository insurance assessment paid by a
depository on any deposit account of the state under IC 5-13-12-5
shall be deducted from the interest otherwise payable on that
account. As added by P.L.18-1996, SEC.23.
IC 5-13-10.5-16 Interest from investments
Sec. 16. Interest from the investment of the public funds of the
state may not be paid personally or for the benefit of any public
officer. As added by P.L.18-1996, SEC.23.
IC 5-13-10.5-17 Service charge
Sec. 17. Any public officer of the state that makes a deposit in any
deposit or other account may be required to pay a service charge to
the depository in which the funds are deposited, if the depository
requires all customers to pay the charge for providing that service. If
the total service charge cannot be computed before the investment,
the investing officer of the state shall estimate the service charge and
adjust the interest rate based on this estimate. The service charge
may be paid by direct charge to the deposit or other account or in any
other manner mutually agreed upon by the investing officer and the
depository. As added by P.L.18-1996, SEC.23.
IC 5-13-10.5-18 Investment in capital improvement board; application; terms of
investment
Sec. 18. (a) As used in this section, "capital improvement board"
refers to a capital improvement board established under IC 36-10-9.
(b) To qualify for an investment under this section, the capital
improvement board must apply to the treasurer of state in the form
and manner required by the treasurer. As part of the application, the
capital improvement board shall submit a plan for its use of the
investment proceeds and for the repayment of the capital
improvement board's obligation to the treasurer. Within sixty (60)
days after receipt of each application, the treasurer shall consider the
application and review its accuracy and completeness.
(c) If the capital improvement board makes an application under
subsection (b) and the treasurer approves the accuracy and
completeness of the application and determines that there is an
adequate method of payment for the capital improvement board's
obligations, the treasurer of state shall invest or reinvest funds that
are held by the treasurer and that are available for investment in
obligations issued by the capital improvement board for the purposes
of the capital improvement board in calendar years 2009, 2010, and
2011. The investment may not exceed nine million dollars
($9,000,000) per calendar year for 2009, 2010, and 2011.
(d) The treasurer of state shall determine the terms of each
investment and the capital improvement board's obligation, which
must include the following:
(1) The duration of the capital improvement board's obligation,
which must be for a term of ten (10) years with an option for the
capital improvement board to pay its obligation to the treasurer
early without penalty.
(2) The repayment schedule of the capital improvement board's
obligation, which must provide that no payments are due before
January 1, 2013.
(3) A rate of interest to be determined by the treasurer.
(4) The amount of each investment, which may not exceed the
maximum amounts established for the capital improvement
board by this section.
(5) Any other conditions specified by the treasurer.
(e) The capital improvement board may issue obligations under
this section by adoption of a resolution and, as set forth in IC 5-1-14,
may use any source of revenue to satisfy the obligation to the
treasurer of state under this section. This section constitutes complete
authority for the capital improvement board to issue obligations to
the treasurer. If the capital improvement board fails to make any
payments on the capital improvement board's obligation to the
treasurer, the amount payable shall be withheld by the auditor of
state from any other money payable to the capital improvement
board. The amount withheld shall be transferred to the treasurer to
the credit of the capital improvement board. As added by P.L.182-2009(ss), SEC.78.
IC 5-13-10.5-1 Applicability of chapter
Sec. 1. This chapter applies to the following funds:
(1) Funds raised by bonds issued for a future specific purpose.
(2) Sinking funds.
(3) Depreciation reserve funds.
(4) Gifts.
(5) Bequests or endowments.
(6) Any other funds available for investment. As added by P.L.18-1996, SEC.23.
IC 5-13-10.5-2 Authorization for investment and reinvestment of funds
Sec. 2. In addition to any other statutory power to make
investments under any other law:
(1) the treasurer of state, under the guidelines established by the
state board of finance; and
(2) any other public officer of the state authorized by statute or
court order to make investments;
may invest or reinvest funds held by the treasurer of state or other
public officer in any combination of the investments authorized
under this chapter. In making the investment, the public official shall
comply with the requirements in this chapter that apply to the
investment. As added by P.L.18-1996, SEC.23.
IC 5-13-10.5-3 Final maturity; percentage of investments outstanding; investment
advisers and money managers; investment of money from
transportation corridor fund
Sec. 3. (a) Except as provided in subsection (b), investments
under this chapter may be made only in securities having a stated
final maturity of two (2) years or less from the date of purchase.
(b) The treasurer of state may make investments in securities
having a final maturity or redemption date that is more than two (2)
years and not more than five (5) years after the date of purchase or
subscription. After an investment is made under this subsection, the
total investments outstanding under this subsection may not exceed
twenty-five percent (25%) of the total portfolio of funds invested by
the treasurer of state. However, an investment that complies with this
subsection when the investment is made remains legal even if a
subsequent decrease in the total portfolio invested by the treasurer of
state causes the percentage of investments outstanding under this
subsection to exceed twenty-five percent (25%). The treasurer of
state may contract with federally regulated investment advisers and
other institutional money managers to make investments under this
section.
(c) Unless prohibited under federal law, the treasurer of state shall
invest under subsection (b) the funds of the transportation corridor
fund established by IC 8-4.5-3-7. The treasurer of state may invest
other funds held by the state in compliance with subsection (b). As added by P.L.18-1996, SEC.23. Amended by P.L.46-1997,
SEC.15; P.L.220-2003, SEC.3; P.L.115-2008, SEC.14.
IC 5-13-10.5-4 Protection of interests of funds
Sec. 4. A public officer making an investment under this chapter
may sell any securities acquired and may take any action necessary
to protect the interests of the funds invested, including the exercise
of exchange privileges that may be granted with respect to maturing
securities if the new securities offered in exchange meet the
requirements for initial investment. As added by P.L.18-1996, SEC.23.
IC 5-13-10.5-5 Legal custodian; safekeeping receipts
Sec. 5. (a) The treasurer of state is the legal custodian of securities
under this chapter. The treasurer of state shall accept safekeeping
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 Indiana
having physical custody of securities with a combined capital
and surplus of at least ten million dollars ($10,000,000)
according to the last statement of condition filed by the
financial institution with its governmental supervisory body.
(b) The state board of accounts may rely on safekeeping receipts
or other reporting from any depository or financial institution. As added by P.L.18-1996, SEC.23.
IC 5-13-10.5-6 Restrictions on public officers
Sec. 6. A public officer of the state may not do the following:
(1) Purchase securities on margin.
(2) Open a securities margin account for the investment of
public funds. As added by P.L.18-1996, SEC.23.
IC 5-13-10.5-7 Investment in securities; cost in excess of par
Sec. 7. (a) A public officer of the state may invest or reinvest
funds held by the officer and available for investment in securities
that are:
(1) backed by the full faith and credit of the United States
Treasury or fully guaranteed by the United States; and
(2) issued by any of the following:
(A) The United States Treasury.
(B) A federal agency.
(C) A federal instrumentality.
(D) A federal government sponsored enterprise.
(b) If an investment under subsection (a) is made at a cost in
excess of the par value of the securities purchased, any premium paid
for 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. As added by P.L.18-1996, SEC.23.
IC 5-13-10.5-8 Investment in deposit accounts
Sec. 8. (a) A public officer of the state may invest or reinvest
funds held by the officer and available for investment in deposit
accounts issued or offered by a designated depository. Investments
under this subdivision by the treasurer of state are governed by
IC 5-13-10.
(b) Investments in deposit accounts under subsection (a) must be
in the amounts, and for the rates and terms, as are agreed upon from
time to time by the officer making the investment and the designated
depository.
(c) Investments made in accordance with subsection (a) and the
interest earned or accrued on them are public funds and are covered
by the insurance fund. As added by P.L.18-1996, SEC.23.
IC 5-13-10.5-9 Investment in repurchase or resale agreements; collateral
Sec. 9. (a) A public officer of the state may invest any funds held
by the officer and available for investment into agreements,
commonly known as repurchase or resale agreements with
depositories designated by the state board of finance as depositories
for state deposits, involving the purchase and guaranteed resale of
any interest-bearing obligations that are:
(1) issued; or
(2) fully insured or guaranteed;
by the United States, any United States government agency, any
instrumentality of the United States government, or any federal
government sponsored enterprise. The amount of money in this type
of agreement must be fully collateralized by interest-bearing
obligations as determined by the current market value computed on
the day on which a transaction is effective.
(b) The collateral for the type of agreement described in
subsection (a) is not subject to the maturity limitation in section 3 of
this chapter. As added by P.L.18-1996, SEC.23. Amended by P.L.46-1997,
SEC.16; P.L.134-2000, SEC.2.
IC 5-13-10.5-10 Investment in obligations issued; assumed or guaranteed by certain
banks or State of Israel
Sec. 10. A public officer of the state may invest or reinvest funds
that are held by the public officer and available for investment in
obligations issued, assumed, or guaranteed as to the payment of
principal and interest by:
(1) the International Bank for Reconstruction and
Redevelopment;
(2) the African Development Bank; or
(3) the State of Israel. As added by P.L.18-1996, SEC.23. Amended by P.L.220-2003,
SEC.4.
IC 5-13-10.5-11 Investment in other obligations
Sec. 11. The treasurer of state may invest or reinvest funds that
are held by the treasurer and that are available for investment in
obligations issued by any of the following:
(1) Agencies or instrumentalities of the United States
government.
(2) Federal government sponsored enterprises.
(3) The Indiana bond bank, if the obligations are secured by tax
anticipation time warrants or notes that:
(A) are issued by a political subdivision (as defined in
IC 36-1-2-13); and
(B) have a maturity date not later than the end of the
calendar year following the year of issuance. As added by P.L.18-1996, SEC.23. Amended by P.L.1-2004, SEC.2
and P.L.23-2004, SEC.2.
IC 5-13-10.5-11.5 Treasurer of state may invest
Sec. 11.5. The treasurer of state may invest or reinvest funds that
are held by the treasurer and that are available for investment in
commercial paper rated in the highest rating category by one (1)
nationally recognized rating service and with a stated final maturity
of two hundred seventy (270) days or less from the date of purchase. As added by P.L.220-2003, SEC.5.
IC 5-13-10.5-12 Investment in participations in loans
Sec. 12. (a) The treasurer of state may invest or reinvest any funds
that are held by the treasurer and available for investment, in
participations in loans. However, funds may be invested or
reinvested in a participation in loans under this subsection only under
the following conditions:
(1) The principal of the participation in loans must be
guaranteed by an agency or instrumentality of the United States
government.
(2) The participation in loans must be represented by a
certificate issued by a bank that is:
(A) incorporated under the laws of Indiana, another state, or
the United States; and
(B) insured by the Bank Insurance Fund of the Federal
Deposit Insurance Corporation.
(b) Funds may be invested or reinvested in a participation in loans
under subsection (a) even if the certificate representing the
participation in loans is not insured by the Bank Insurance Fund of
the Federal Deposit Insurance Corporation. As added by P.L.18-1996, SEC.23.
IC 5-13-10.5-13 Lending securities
Sec. 13. The treasurer of state may lend any securities acquired
under section 7 or 11 of this chapter. However, securities may be lent
under this section only if the agreement under which the securities
are lent is collateralized by:
(1) cash; or
(2) interest bearing obligations that are issued by, fully insured
by, or guaranteed by the United States, an agency of the United
States government, a federal instrumentality, or a federal
government sponsored enterprise;
in excess of the total market value of the loaned securities. As added by P.L.18-1996, SEC.23.
IC 5-13-10.5-14 Designation of fund
Sec. 14. The board of trustees of a state university may designate
the fund to which the interest of its investments shall be receipted. As added by P.L.18-1996, SEC.23.
IC 5-13-10.5-15 Public depository insurance assessment
Sec. 15. Any public depository insurance assessment paid by a
depository on any deposit account of the state under IC 5-13-12-5
shall be deducted from the interest otherwise payable on that
account. As added by P.L.18-1996, SEC.23.
IC 5-13-10.5-16 Interest from investments
Sec. 16. Interest from the investment of the public funds of the
state may not be paid personally or for the benefit of any public
officer. As added by P.L.18-1996, SEC.23.
IC 5-13-10.5-17 Service charge
Sec. 17. Any public officer of the state that makes a deposit in any
deposit or other account may be required to pay a service charge to
the depository in which the funds are deposited, if the depository
requires all customers to pay the charge for providing that service. If
the total service charge cannot be computed before the investment,
the investing officer of the state shall estimate the service charge and
adjust the interest rate based on this estimate. The service charge
may be paid by direct charge to the deposit or other account or in any
other manner mutually agreed upon by the investing officer and the
depository. As added by P.L.18-1996, SEC.23.
IC 5-13-10.5-18 Investment in capital improvement board; application; terms of
investment
Sec. 18. (a) As used in this section, "capital improvement board"
refers to a capital improvement board established under IC 36-10-9.
(b) To qualify for an investment under this section, the capital
improvement board must apply to the treasurer of state in the form
and manner required by the treasurer. As part of the application, the
capital improvement board shall submit a plan for its use of the
investment proceeds and for the repayment of the capital
improvement board's obligation to the treasurer. Within sixty (60)
days after receipt of each application, the treasurer shall consider the
application and review its accuracy and completeness.
(c) If the capital improvement board makes an application under
subsection (b) and the treasurer approves the accuracy and
completeness of the application and determines that there is an
adequate method of payment for the capital improvement board's
obligations, the treasurer of state shall invest or reinvest funds that
are held by the treasurer and that are available for investment in
obligations issued by the capital improvement board for the purposes
of the capital improvement board in calendar years 2009, 2010, and
2011. The investment may not exceed nine million dollars
($9,000,000) per calendar year for 2009, 2010, and 2011.
(d) The treasurer of state shall determine the terms of each
investment and the capital improvement board's obligation, which
must include the following:
(1) The duration of the capital improvement board's obligation,
which must be for a term of ten (10) years with an option for the
capital improvement board to pay its obligation to the treasurer
early without penalty.
(2) The repayment schedule of the capital improvement board's
obligation, which must provide that no payments are due before
January 1, 2013.
(3) A rate of interest to be determined by the treasurer.
(4) The amount of each investment, which may not exceed the
maximum amounts established for the capital improvement
board by this section.
(5) Any other conditions specified by the treasurer.
(e) The capital improvement board may issue obligations under
this section by adoption of a resolution and, as set forth in IC 5-1-14,
may use any source of revenue to satisfy the obligation to the
treasurer of state under this section. This section constitutes complete
authority for the capital improvement board to issue obligations to
the treasurer. If the capital improvement board fails to make any
payments on the capital improvement board's obligation to the
treasurer, the amount payable shall be withheld by the auditor of
state from any other money payable to the capital improvement
board. The amount withheld shall be transferred to the treasurer to
the credit of the capital improvement board. As added by P.L.182-2009(ss), SEC.78.
