§ 20-42-1-6 — Transfer of custody of fund balance to state

Indiana § 20-42-1-6

• Jurisdiction: Indiana
• Title 20: EDUCATION
• Art. 42: FIDUCIARY FUNDS AND ACCOUNTS
• Ch. 1: Administration of Common School Fund by County

Text

(a) A county council may adopt a resolution to:
(1) elect to surrender the custody of the fund; and
(2) order the board of county commissioners, the county auditor,
and the county treasurer to take any and all steps necessary to
surrender the custody of a fund held in trust by the county.
If the county council adopts a resolution under this section, the amount
of money distributed to and held in trust by the county is due and
payable to the treasurer of state. A county council may elect whether
the county shall surrender all or any part of the fund. If the county
retains custody of any money in the fund, the county shall loan the
money as otherwise provided by law. Any part of the money in the fund
surrendered by the county shall be paid to the treasurer of state
immediately after the election by the county council.
(b) Within ten (10) days after the passage of the resolution by a
county council of a county electing to surrender the custody of the
fund, the county auditor shall prepare and file with the board of
commissioners of the county a report showing the following:
(1) The total amount of the fund that has been entrusted to and is
held in trust by the county.
(2) The total amount of the funds that is loaned as provided by
law.
(3) The total amount of the fund, if any, loaned to the county and
which loans are unpaid.
(4) The total amount of the fund held in cash in the possession
and custody of the county and that is not loaned.
(5) A separate schedule of past due loans. The schedule must
show the unpaid balance of principal and the amount of
delinquent interest due and unpaid on each delinquent loan.
(c) The board of county commissioners shall examine the reports,
and, if found correct, the board of county commissioners shall order:
(1) that the report be entered on its records; and
(2) the county auditor to draw the county auditor's warrant,
payable to the treasurer of state, for the amount of the fund that is
not loaned and is held in cash in the custody and possession of the
county as shown by the report.
The county auditor shall forward the warrants to the state comptroller
together with a certified copy of the report. The county auditor shall
also forward with the payment a certified copy of the resolution of the
county council electing to surrender the custody of the fund or any part
of the fund.
(d) After passage by the county council of a resolution electing to
surrender the custody of the funds, no part of the fund that is in the
custody of the county may be loaned by the county or by any official of
the county. Except as provided in this subsection, all outstanding loans
of the fund at the time of the passage of the resolution shall be
collected when due. Any loan that comes due and payable after the
passage of the resolution may be renewed for one (1) additional five (5)
year period, on the application of the person owing the loan as provided
by law. However, a loan that is more than one (1) year delinquent in
payment of principal or interest at the time of the passage of the
resolution of the county council may not be renewed.
(e) On:
(1) May 1 or November 1 immediately after the passage of the
resolution electing to surrender the fund; and
(2) each May 1 and November 1 thereafter;
all the money collected and on hand that belongs to the fund shall be
paid to the treasurer of state. If at the time for a semiannual payment
the amount collected and paid to the treasurer of state when added to
the amounts previously paid to the treasurer of state is less than the
result determined by multiplying one-fortieth (1/40) of the amount of
the fund held in trust at the time of the passage of the resolution by the
number of semiannual payments that have occurred after the passage
of the resolution, the county auditor shall draw the county auditor's
warrant on the general fund of the county for an amount sufficient to
pay to the treasurer of state the difference between the amount paid and
the amount equal to the result of multiplying one-fortieth (1/40) of the
amount of the fund held in trust at the time of the passage of the
resolution by the number of semiannual payments that have occurred
after the passage of the resolution.
(f) At the same time and in the same manner, there shall be paid to
the treasurer of state interest to the date of the semiannual payment on
the balance of the funds held in trust by the county from the
immediately preceding October 31 or April 30 at the rate fixed by law.
Whenever within the preceding six (6) months any payment of the fund
has been made by the county to the treasurer of state, the county shall
also pay interest at the rate fixed by law on the amount of the payment
to the date of receipt of the payment by the treasurer of state. If the
amount collected as interest on the fund is not sufficient to make
payment of interest to the treasurer of state, the county auditor shall
draw the county auditor's warrant on the general fund of the county for
an amount sufficient when added to the amount collected as interest on
the fund to pay the interest due to the state.
(g) The board of county commissioners shall, in its annual budget
estimate, include an estimate of the amount necessary to make the
payments from the county general fund as required by this section, and
the county council shall appropriate the amount of the estimate.
(h) A county is subrogated to all the rights and remedies of the state
with respect to loans made from a fund held in trust by the county to
the extent of any and all payments made from the county general fund
under this chapter.
[Pre-2006 Recodification Citations: 21-1-3-1 part; 21-1-3-3;
21-1-3-4; 21-1-3-5; 21-1-3-6.]

Legislative History

As added by P.L.2-2006, SEC.165. Amended by P.L.9-2024, SEC.400.