§ 20-42-2-4.5 — Transfer of custody of fund balance to state

Indiana § 20-42-2-4.5

• Jurisdiction: Indiana
• Title 20: EDUCATION
• Art. 42: FIDUCIARY FUNDS AND ACCOUNTS
• Ch. 2: County Administration of Congressional Township

Text

5. (a) A county council may adopt a resolution
to:
(1) elect to surrender the custody of the fund or any part of the
fund; and
(2) order the board of county commissioners, the county auditor,
and the county treasurer to take all steps necessary to surrender
the custody of the fund or part of the fund that is to be
surrendered.
If the county council adopts a resolution under this section, the amount
of money designated by the resolution distributed to and held in trust
by the county is to be transferred to the treasurer of state over a period
not to exceed twenty (20) years. 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.
(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
or part 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 fund 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 fund or any part of the fund, no part of the
fund up to the amount designated in the resolution that is not
surrendered to the treasurer of state and 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 not part
of the amount retained by the county 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) The maximum time to surrender money that the county
designates in the resolution is for a period not to exceed twenty (20)
years. On:
(1) May 1 or November 1 immediately after the passage of the
resolution electing to surrender the fund or any part of the fund;
and
(2) each May 1 and November 1 thereafter;
all the money collected and on hand up to the amount designated in the
resolution that belongs to the fund that is to be surrendered 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 two and one-half percent (2.5%) of
the amount in 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 two and one-half percent (2.5%) of the amount
designated in the resolution by the number of semiannual payments
that have occurred after the passage of the resolution.
(f) 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.
(g) 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.
(h) If a county elects to transfer custody of the fund or any part of
the fund to the treasurer of state, the treasurer of state shall ensure that
the principal of the fund belonging to any congressional township or a
part of a congressional township shall never be diminished in amount.
(i) If a county elects to transfer custody of the fund or any part of the
fund to the treasurer of state, the treasurer of state shall take steps to
ensure that the income of the fund belonging to any congressional
township or a part of a congressional township may not be:
(1) diminished by an apportionment; or
(2) diverted or distributed to another township.

Legislative History

As added by P.L.39-2008, SEC.2. Amended by P.L.9-2024, SEC.401.