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 an
application to become a depository and receive public funds of the
state 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 state
qualifies a depository to receive public funds of a political
subdivision. Applications for the state board of finance must be filed
with the treasurer of state. The treasurer shall submit each
application to the board.
(b) An application must:
(1) be made in writing on forms prescribed under section 8 of
this chapter;
(2) contain terms and conditions as required and authorized by
this 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 the
safekeeping and prompt payment of the deposited funds.
(c) A financial institution is ineligible to become a depository and
receive public funds of the state if the institution:
(1) fails to maintain a capital ratio in excess of the minimum
required by the governmental supervisory body of the
institution; or
(2) has been found by the department of financial institutions
under IC 28-1-2-40, or the financial institution's primary federal
regulator, to not be in substantial compliance with the federal
Credit Card Accountability Responsibility and Disclosure Act
of 2009 as it applies to Indiana borrowers.
If the financial institution is already a depository, the institution may
continue to hold the public funds until maturity to avoid the
imposition of a penalty upon the depositor, although the financial
institution may not accept the public funds for reinvestment and may
not accept additional public funds. A determination of the ratio
described in this subsection must be based on the institution's most
recent periodic statement of condition filed with the institution's
governmental supervisory body under the regulatory accounting
principles as prescribed by the supervisory body.
(d) A financial institution shall furnish to the board a certificate
executed by an officer of the institution signifying that the institution
satisfies:
(1) the requirements of subsection (c); and
(2) the requirement in section 6(b) of this chapter that the sum
of:
(A) the total principal amount of the depository's outstanding
loans to Indiana residents; plus
(B) the total value of the depository's investments in Indiana
residents;
is at least equal to the total amount of public funds of the state
and political subdivisions of the state that are on deposit in the
depository.
The board may rely on a certificate furnished under this subsection
in determining whether to deposit public funds or reinvest public
funds 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 applications
of 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 a
depository for public funds of the state any financial institution
qualified under section 1 of this chapter that:
(1) properly files an application to receive a deposit of public
funds of the state and to provide the security required by
IC 5-13-13-7; and
(2) is suitably located with reference to the convenience of the
officers and state institutions using that financial institution.
(b) The state board of finance may invite and act upon
applications and designate depositories at any time when additional
depositories may be available or are required for the state or a
political 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 a
depository for public funds, the treasurer of state shall accept the
application of the financial institution to act as a depository for
public funds. A designation under this section expires only under the
following conditions:
(1) The board of depositories revokes the status of the financial
institution as a depository under section 6 of this chapter.
(2) The financial institution resigns as a depository under
section 7 of this chapter.
(3) Another law terminates the depository status of the financial
institution. 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 under
this chapter shall, upon request of the treasurer of state, file a copy
of 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 of
public funds of the state may revoke the commission of any
depository at any time for any cause considered sufficient by the
board for depositories.
(b) The causes for which the board for depositories may revoke
the commission of a depository under subsection (a) include the
failure of the depository 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:
(1) the total principal amount of the depository's outstanding
loans to Indiana residents (as defined in IC 5-13-8-7); plus
(2) the total value of the depository's investments in Indiana
residents (as defined in IC 5-13-8-7);
is at least equal to the total amount of public funds of the state and
political subdivisions of the state that are on deposit in the
depository.
(c) 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.18-1996, SEC.22.
IC 5-13-9.5-7 Resignation of depository
Sec. 7. 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:
(1) thirty (30) days after written notice is given to the state
board of finance; and
(2) after settlement with the state board of finance for all public
funds 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 the
attorney general, shall prepare and prescribe:
(1) a form of agreement to receive public funds on deposit that
may 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 and
depositories in the performance of the duties imposed upon the state
board of finance by this chapter. All agreements and the rights of the
parties must be subject to modification by any statute and by all rules
adopted by the department of financial institutions concerning
withdrawal of funds in times of emergency. As added by P.L.18-1996, SEC.22.
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 an
application to become a depository and receive public funds of the
state 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 state
qualifies a depository to receive public funds of a political
subdivision. Applications for the state board of finance must be filed
with the treasurer of state. The treasurer shall submit each
application to the board.
(b) An application must:
(1) be made in writing on forms prescribed under section 8 of
this chapter;
(2) contain terms and conditions as required and authorized by
this 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 the
safekeeping and prompt payment of the deposited funds.
(c) A financial institution is ineligible to become a depository and
receive public funds of the state if the institution:
(1) fails to maintain a capital ratio in excess of the minimum
required by the governmental supervisory body of the
institution; or
(2) has been found by the department of financial institutions
under IC 28-1-2-40, or the financial institution's primary federal
regulator, to not be in substantial compliance with the federal
Credit Card Accountability Responsibility and Disclosure Act
of 2009 as it applies to Indiana borrowers.
If the financial institution is already a depository, the institution may
continue to hold the public funds until maturity to avoid the
imposition of a penalty upon the depositor, although the financial
institution may not accept the public funds for reinvestment and may
not accept additional public funds. A determination of the ratio
described in this subsection must be based on the institution's most
recent periodic statement of condition filed with the institution's
governmental supervisory body under the regulatory accounting
principles as prescribed by the supervisory body.
(d) A financial institution shall furnish to the board a certificate
executed by an officer of the institution signifying that the institution
satisfies:
(1) the requirements of subsection (c); and
(2) the requirement in section 6(b) of this chapter that the sum
of:
(A) the total principal amount of the depository's outstanding
loans to Indiana residents; plus
(B) the total value of the depository's investments in Indiana
residents;
is at least equal to the total amount of public funds of the state
and political subdivisions of the state that are on deposit in the
depository.
The board may rely on a certificate furnished under this subsection
in determining whether to deposit public funds or reinvest public
funds 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 applications
of 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 a
depository for public funds of the state any financial institution
qualified under section 1 of this chapter that:
(1) properly files an application to receive a deposit of public
funds of the state and to provide the security required by
IC 5-13-13-7; and
(2) is suitably located with reference to the convenience of the
officers and state institutions using that financial institution.
(b) The state board of finance may invite and act upon
applications and designate depositories at any time when additional
depositories may be available or are required for the state or a
political 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 a
depository for public funds, the treasurer of state shall accept the
application of the financial institution to act as a depository for
public funds. A designation under this section expires only under the
following conditions:
(1) The board of depositories revokes the status of the financial
institution as a depository under section 6 of this chapter.
(2) The financial institution resigns as a depository under
section 7 of this chapter.
(3) Another law terminates the depository status of the financial
institution. 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 under
this chapter shall, upon request of the treasurer of state, file a copy
of 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 of
public funds of the state may revoke the commission of any
depository at any time for any cause considered sufficient by the
board for depositories.
(b) The causes for which the board for depositories may revoke
the commission of a depository under subsection (a) include the
failure of the depository 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:
(1) the total principal amount of the depository's outstanding
loans to Indiana residents (as defined in IC 5-13-8-7); plus
(2) the total value of the depository's investments in Indiana
residents (as defined in IC 5-13-8-7);
is at least equal to the total amount of public funds of the state and
political subdivisions of the state that are on deposit in the
depository.
(c) 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.18-1996, SEC.22.
IC 5-13-9.5-7 Resignation of depository
Sec. 7. 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:
(1) thirty (30) days after written notice is given to the state
board of finance; and
(2) after settlement with the state board of finance for all public
funds 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 the
attorney general, shall prepare and prescribe:
(1) a form of agreement to receive public funds on deposit that
may 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 and
depositories in the performance of the duties imposed upon the state
board of finance by this chapter. All agreements and the rights of the
parties must be subject to modification by any statute and by all rules
adopted by the department of financial institutions concerning
withdrawal of funds in times of emergency. As added by P.L.18-1996, SEC.22.
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 an
application to become a depository and receive public funds of the
state 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 state
qualifies a depository to receive public funds of a political
subdivision. Applications for the state board of finance must be filed
with the treasurer of state. The treasurer shall submit each
application to the board.
(b) An application must:
(1) be made in writing on forms prescribed under section 8 of
this chapter;
(2) contain terms and conditions as required and authorized by
this 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 the
safekeeping and prompt payment of the deposited funds.
(c) A financial institution is ineligible to become a depository and
receive public funds of the state if the institution:
(1) fails to maintain a capital ratio in excess of the minimum
required by the governmental supervisory body of the
institution; or
(2) has been found by the department of financial institutions
under IC 28-1-2-40, or the financial institution's primary federal
regulator, to not be in substantial compliance with the federal
Credit Card Accountability Responsibility and Disclosure Act
of 2009 as it applies to Indiana borrowers.
If the financial institution is already a depository, the institution may
continue to hold the public funds until maturity to avoid the
imposition of a penalty upon the depositor, although the financial
institution may not accept the public funds for reinvestment and may
not accept additional public funds. A determination of the ratio
described in this subsection must be based on the institution's most
recent periodic statement of condition filed with the institution's
governmental supervisory body under the regulatory accounting
principles as prescribed by the supervisory body.
(d) A financial institution shall furnish to the board a certificate
executed by an officer of the institution signifying that the institution
satisfies:
(1) the requirements of subsection (c); and
(2) the requirement in section 6(b) of this chapter that the sum
of:
(A) the total principal amount of the depository's outstanding
loans to Indiana residents; plus
(B) the total value of the depository's investments in Indiana
residents;
is at least equal to the total amount of public funds of the state
and political subdivisions of the state that are on deposit in the
depository.
The board may rely on a certificate furnished under this subsection
in determining whether to deposit public funds or reinvest public
funds 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 applications
of 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 a
depository for public funds of the state any financial institution
qualified under section 1 of this chapter that:
(1) properly files an application to receive a deposit of public
funds of the state and to provide the security required by
IC 5-13-13-7; and
(2) is suitably located with reference to the convenience of the
officers and state institutions using that financial institution.
(b) The state board of finance may invite and act upon
applications and designate depositories at any time when additional
depositories may be available or are required for the state or a
political 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 a
depository for public funds, the treasurer of state shall accept the
application of the financial institution to act as a depository for
public funds. A designation under this section expires only under the
following conditions:
(1) The board of depositories revokes the status of the financial
institution as a depository under section 6 of this chapter.
(2) The financial institution resigns as a depository under
section 7 of this chapter.
(3) Another law terminates the depository status of the financial
institution. 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 under
this chapter shall, upon request of the treasurer of state, file a copy
of 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 of
public funds of the state may revoke the commission of any
depository at any time for any cause considered sufficient by the
board for depositories.
(b) The causes for which the board for depositories may revoke
the commission of a depository under subsection (a) include the
failure of the depository 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:
(1) the total principal amount of the depository's outstanding
loans to Indiana residents (as defined in IC 5-13-8-7); plus
(2) the total value of the depository's investments in Indiana
residents (as defined in IC 5-13-8-7);
is at least equal to the total amount of public funds of the state and
political subdivisions of the state that are on deposit in the
depository.
(c) 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.18-1996, SEC.22.
IC 5-13-9.5-7 Resignation of depository
Sec. 7. 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:
(1) thirty (30) days after written notice is given to the state
board of finance; and
(2) after settlement with the state board of finance for all public
funds 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 the
attorney general, shall prepare and prescribe:
(1) a form of agreement to receive public funds on deposit that
may 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 and
depositories in the performance of the duties imposed upon the state
board of finance by this chapter. All agreements and the rights of the
parties must be subject to modification by any statute and by all rules
adopted by the department of financial institutions concerning
withdrawal of funds in times of emergency. As added by P.L.18-1996, SEC.22.
