IC 5-13-8-1 Deposit of public funds; prerequisites
Sec. 1. (a) A political subdivision may deposit public funds in a
financial 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 section
9 of this chapter to receive public funds of the political
subdivision.
(b) The state board of finance shall make available information
concerning financial institutions eligible to receive state funds as
may be requested by a local board of finance. A local board of
finance may rely on certificates described in IC 5-13-9.5-1(d) in
determining to deposit public funds or reinvest public funds in the
financial 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Repealed
(Repealed by P.L.18-1996, SEC.33.)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Repealed
(Repealed by P.L.18-1996, SEC.33.)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Repealed
(Repealed by P.L.18-1996, SEC.33.)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Repealed
(Repealed by P.L.18-1996, SEC.33.)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 and
consolidate the forms that are required under this chapter or
IC 5-13-9.5, or both, to eliminate unnecessary paperwork.
(b) These forms must be used by the state board of finance and the
several local boards of finance and depositories in the performance
of the duties imposed under this chapter. The rights of political
subdivisions and designated depositories must be subject to
modification by any statute and by all rules adopted by the
department of financial institutions respecting withdrawal of funds
in times of emergency.
(c) A financial institution designated as a depository under this
chapter shall, upon request of the appropriate investing officer, file
with the investing officer a copy of the institution's most recent
statement of condition filed with the institution's governmental
supervisory body under the regulatory accounting principles as
prescribed 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 with
Indiana resident
Sec. 7. (a) As used in this section, "Indiana resident" means any
of the following:
(1) An individual who is a resident of Indiana.
(2) A political subdivision (as defined in IC 36-1-2-13) in
Indiana.
(3) A corporation, a limited liability company, a partnership, a
limited 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, a
limited 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 in
Indiana.
(b) As used in this section, "investment in an Indiana resident"
means an investment in an interest-bearing obligation of a political
subdivision (as defined in IC 36-1-2-13) in Indiana.
(c) The local board of finance under which any depository
operates may at any time revoke the commission of any depository
at a meeting called for the purpose of revoking a commission, of
which the depository shall have been notified by advance written
notice sent by first class or registered mail not less than twenty (20)
days before the meeting and at which the depository has the right to
be heard. Not later than thirty (30) days after a local board of finance
revokes the commission of a depository, the local board of finance
shall give written notice of the action to the board of depositories.
(d) The local board of finance may revoke the commission of any
depository to do business with the political subdivision:
(1) if the depository is unwilling or unable to perform banking
services 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 account
described in IC 5-13-9-4(a); and
(B) required by the political subdivision served by the local
board of finance to carry out the responsibilities of the
political subdivision, as determined by the local board of
finance;
(2) if the depository is unwilling or unable to comply with a
state or federal statute, rule, or other regulation that governs the
records or handling of public funds of the political subdivision
served by the local board of finance, as determined by the local
board of finance;
(3) if the depository ceases to qualify as a depository under this
chapter, as determined by the local board of finance;
(4) if the depository fails to conduct lending activities in
Indiana 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 to
Indiana residents; plus
(B) the total value of investments in Indiana residents;
will at least equal the total amount of the public funds of the
state and political subdivisions of the state that are on deposit
in the financial institution; or
(5) for any cause that is adopted in the written rules of the local
board of finance and that is directly related to the safe handling
of public funds.
(e) Upon revocation, the depository shall immediately render an
accounting and make settlement for all public funds deposited with
the 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 limits
of political subdivisions; exceptions
Sec. 9. (a) All public funds of all political subdivisions shall be
deposited in the designated depositories located in the respective
territorial limits of the political subdivisions, except as provided in
this 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 portion
of the political subdivision within the county where its principal
office is located.
(c) If there is no principal office or branch of a financial
institution located in the county or political subdivision, or if no
financial institution with a principal office or branch in the county or
political subdivision will accept public funds under this chapter, the
board of finance of the county and the boards of finance of the
political subdivisions in the county shall designate one (1) or more
financial institutions with a principal office or branch outside of the
county or political subdivision, and in the state, as a depository or
depositories.
(d) The board of trustees for a hospital organized or operated
under IC 16-22-1 through IC 16-22-5 or IC 16-23-1 may invest any
money in the hospital fund anywhere in the state with any financial
institution designated by the state board of finance as depositories for
state deposits.
(e) If only one (1) financial institution that has a branch or
principal office in a county or political subdivision is willing to
accept public funds, the board of finance for the county or political
subdivision may:
(1) treat the financial institution that is located within the
county or political subdivision as if the financial institution
were not located within the county or political subdivision; and
(2) designate one (1) or more financial institutions to receive
public 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 political
subdivision, if the sum of the monthly average balances of all
the transaction accounts for the political subdivision does not
exceed 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 of
finance as a depository.
(3) In at least two (2) depositories designated for the political
subdivision, if subdivision (1) does not apply and at least three
(3) financial institutions are designated by the local board of
finance 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 resign
as a depository and relinquish all public funds on deposit with the
depository. The resignation is effective after thirty (30) days notice
in writing to the state board of finance and after settlement with the
proper board of finance for all public funds on deposit with the
depository. As added by P.L.19-1987, SEC.10. Amended by P.L.46-1997, SEC.9.
IC 5-13-8-1 Deposit of public funds; prerequisites
Sec. 1. (a) A political subdivision may deposit public funds in a
financial 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 section
9 of this chapter to receive public funds of the political
subdivision.
(b) The state board of finance shall make available information
concerning financial institutions eligible to receive state funds as
may be requested by a local board of finance. A local board of
finance may rely on certificates described in IC 5-13-9.5-1(d) in
determining to deposit public funds or reinvest public funds in the
financial 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 and
consolidate the forms that are required under this chapter or
IC 5-13-9.5, or both, to eliminate unnecessary paperwork.
(b) These forms must be used by the state board of finance and the
several local boards of finance and depositories in the performance
of the duties imposed under this chapter. The rights of political
subdivisions and designated depositories must be subject to
modification by any statute and by all rules adopted by the
department of financial institutions respecting withdrawal of funds
in times of emergency.
(c) A financial institution designated as a depository under this
chapter shall, upon request of the appropriate investing officer, file
with the investing officer a copy of the institution's most recent
statement of condition filed with the institution's governmental
supervisory body under the regulatory accounting principles as
prescribed 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 with
Indiana resident
Sec. 7. (a) As used in this section, "Indiana resident" means any
of the following:
(1) An individual who is a resident of Indiana.
(2) A political subdivision (as defined in IC 36-1-2-13) in
Indiana.
(3) A corporation, a limited liability company, a partnership, a
limited 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, a
limited 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 in
Indiana.
(b) As used in this section, "investment in an Indiana resident"
means an investment in an interest-bearing obligation of a political
subdivision (as defined in IC 36-1-2-13) in Indiana.
(c) The local board of finance under which any depository
operates may at any time revoke the commission of any depository
at a meeting called for the purpose of revoking a commission, of
which the depository shall have been notified by advance written
notice sent by first class or registered mail not less than twenty (20)
days before the meeting and at which the depository has the right to
be heard. Not later than thirty (30) days after a local board of finance
revokes the commission of a depository, the local board of finance
shall give written notice of the action to the board of depositories.
(d) The local board of finance may revoke the commission of any
depository to do business with the political subdivision:
(1) if the depository is unwilling or unable to perform banking
services 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 account
described in IC 5-13-9-4(a); and
(B) required by the political subdivision served by the local
board of finance to carry out the responsibilities of the
political subdivision, as determined by the local board of
finance;
(2) if the depository is unwilling or unable to comply with a
state or federal statute, rule, or other regulation that governs the
records or handling of public funds of the political subdivision
served by the local board of finance, as determined by the local
board of finance;
(3) if the depository ceases to qualify as a depository under this
chapter, as determined by the local board of finance;
(4) if the depository fails to conduct lending activities in
Indiana 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 to
Indiana residents; plus
(B) the total value of investments in Indiana residents;
will at least equal the total amount of the public funds of the
state and political subdivisions of the state that are on deposit
in the financial institution; or
(5) for any cause that is adopted in the written rules of the local
board of finance and that is directly related to the safe handling
of public funds.
(e) Upon revocation, the depository shall immediately render an
accounting and make settlement for all public funds deposited with
the 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 limits
of political subdivisions; exceptions
Sec. 9. (a) All public funds of all political subdivisions shall be
deposited in the designated depositories located in the respective
territorial limits of the political subdivisions, except as provided in
this 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 portion
of the political subdivision within the county where its principal
office is located.
(c) If there is no principal office or branch of a financial
institution located in the county or political subdivision, or if no
financial institution with a principal office or branch in the county or
political subdivision will accept public funds under this chapter, the
board of finance of the county and the boards of finance of the
political subdivisions in the county shall designate one (1) or more
financial institutions with a principal office or branch outside of the
county or political subdivision, and in the state, as a depository or
depositories.
(d) The board of trustees for a hospital organized or operated
under IC 16-22-1 through IC 16-22-5 or IC 16-23-1 may invest any
money in the hospital fund anywhere in the state with any financial
institution designated by the state board of finance as depositories for
state deposits.
(e) If only one (1) financial institution that has a branch or
principal office in a county or political subdivision is willing to
accept public funds, the board of finance for the county or political
subdivision may:
(1) treat the financial institution that is located within the
county or political subdivision as if the financial institution
were not located within the county or political subdivision; and
(2) designate one (1) or more financial institutions to receive
public 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 political
subdivision, if the sum of the monthly average balances of all
the transaction accounts for the political subdivision does not
exceed 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 of
finance as a depository.
(3) In at least two (2) depositories designated for the political
subdivision, if subdivision (1) does not apply and at least three
(3) financial institutions are designated by the local board of
finance 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 resign
as a depository and relinquish all public funds on deposit with the
depository. The resignation is effective after thirty (30) days notice
in writing to the state board of finance and after settlement with the
proper board of finance for all public funds on deposit with the
depository. As added by P.L.19-1987, SEC.10. Amended by P.L.46-1997, SEC.9.
IC 5-13-8-1 Deposit of public funds; prerequisites
Sec. 1. (a) A political subdivision may deposit public funds in a
financial 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 section
9 of this chapter to receive public funds of the political
subdivision.
(b) The state board of finance shall make available information
concerning financial institutions eligible to receive state funds as
may be requested by a local board of finance. A local board of
finance may rely on certificates described in IC 5-13-9.5-1(d) in
determining to deposit public funds or reinvest public funds in the
financial 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 and
consolidate the forms that are required under this chapter or
IC 5-13-9.5, or both, to eliminate unnecessary paperwork.
(b) These forms must be used by the state board of finance and the
several local boards of finance and depositories in the performance
of the duties imposed under this chapter. The rights of political
subdivisions and designated depositories must be subject to
modification by any statute and by all rules adopted by the
department of financial institutions respecting withdrawal of funds
in times of emergency.
(c) A financial institution designated as a depository under this
chapter shall, upon request of the appropriate investing officer, file
with the investing officer a copy of the institution's most recent
statement of condition filed with the institution's governmental
supervisory body under the regulatory accounting principles as
prescribed 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 with
Indiana resident
Sec. 7. (a) As used in this section, "Indiana resident" means any
of the following:
(1) An individual who is a resident of Indiana.
(2) A political subdivision (as defined in IC 36-1-2-13) in
Indiana.
(3) A corporation, a limited liability company, a partnership, a
limited 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, a
limited 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 in
Indiana.
(b) As used in this section, "investment in an Indiana resident"
means an investment in an interest-bearing obligation of a political
subdivision (as defined in IC 36-1-2-13) in Indiana.
(c) The local board of finance under which any depository
operates may at any time revoke the commission of any depository
at a meeting called for the purpose of revoking a commission, of
which the depository shall have been notified by advance written
notice sent by first class or registered mail not less than twenty (20)
days before the meeting and at which the depository has the right to
be heard. Not later than thirty (30) days after a local board of finance
revokes the commission of a depository, the local board of finance
shall give written notice of the action to the board of depositories.
(d) The local board of finance may revoke the commission of any
depository to do business with the political subdivision:
(1) if the depository is unwilling or unable to perform banking
services 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 account
described in IC 5-13-9-4(a); and
(B) required by the political subdivision served by the local
board of finance to carry out the responsibilities of the
political subdivision, as determined by the local board of
finance;
(2) if the depository is unwilling or unable to comply with a
state or federal statute, rule, or other regulation that governs the
records or handling of public funds of the political subdivision
served by the local board of finance, as determined by the local
board of finance;
(3) if the depository ceases to qualify as a depository under this
chapter, as determined by the local board of finance;
(4) if the depository fails to conduct lending activities in
Indiana 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 to
Indiana residents; plus
(B) the total value of investments in Indiana residents;
will at least equal the total amount of the public funds of the
state and political subdivisions of the state that are on deposit
in the financial institution; or
(5) for any cause that is adopted in the written rules of the local
board of finance and that is directly related to the safe handling
of public funds.
(e) Upon revocation, the depository shall immediately render an
accounting and make settlement for all public funds deposited with
the 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 limits
of political subdivisions; exceptions
Sec. 9. (a) All public funds of all political subdivisions shall be
deposited in the designated depositories located in the respective
territorial limits of the political subdivisions, except as provided in
this 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 portion
of the political subdivision within the county where its principal
office is located.
(c) If there is no principal office or branch of a financial
institution located in the county or political subdivision, or if no
financial institution with a principal office or branch in the county or
political subdivision will accept public funds under this chapter, the
board of finance of the county and the boards of finance of the
political subdivisions in the county shall designate one (1) or more
financial institutions with a principal office or branch outside of the
county or political subdivision, and in the state, as a depository or
depositories.
(d) The board of trustees for a hospital organized or operated
under IC 16-22-1 through IC 16-22-5 or IC 16-23-1 may invest any
money in the hospital fund anywhere in the state with any financial
institution designated by the state board of finance as depositories for
state deposits.
(e) If only one (1) financial institution that has a branch or
principal office in a county or political subdivision is willing to
accept public funds, the board of finance for the county or political
subdivision may:
(1) treat the financial institution that is located within the
county or political subdivision as if the financial institution
were not located within the county or political subdivision; and
(2) designate one (1) or more financial institutions to receive
public 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 political
subdivision, if the sum of the monthly average balances of all
the transaction accounts for the political subdivision does not
exceed 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 of
finance as a depository.
(3) In at least two (2) depositories designated for the political
subdivision, if subdivision (1) does not apply and at least three
(3) financial institutions are designated by the local board of
finance 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 resign
as a depository and relinquish all public funds on deposit with the
depository. The resignation is effective after thirty (30) days notice
in writing to the state board of finance and after settlement with the
proper board of finance for all public funds on deposit with the
depository. As added by P.L.19-1987, SEC.10. Amended by P.L.46-1997, SEC.9.
