Every guardian shall invest the surplus funds
of the estate of the protected person, in which investment the guardian
has no interest, and only as provided in this section:
(1)In bonds or notes constituting the direct and general
obligations of the United States, or of a state that has not at any
time during the ten (10) years next preceding the date of the
investment defaulted in payment of the principal or interest on
any bonds or notes by it issued, or in bonds, the payment of
which, both principal and interest, is guaranteed by the United
States.
(2)In bonds or notes that are the direct and general legal
obligations of a county, city, or town in this state, and which also
at the date of the investment has the power to levy general taxes
sufficient for the payment of principal and int
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Every guardian shall invest the surplus funds
of the estate of the protected person, in which investment the guardian
has no interest, and only as provided in this section:
(1) In bonds or notes constituting the direct and general
obligations of the United States, or of a state that has not at any
time during the ten (10) years next preceding the date of the
investment defaulted in payment of the principal or interest on
any bonds or notes by it issued, or in bonds, the payment of
which, both principal and interest, is guaranteed by the United
States.
(2) In bonds or notes that are the direct and general legal
obligations of a county, city, or town in this state, and which also
at the date of the investment has the power to levy general taxes
sufficient for the payment of principal and interest on the
obligations, if the issuer of the obligation has not defaulted in
payment of principal or interest due upon any of its bonds or notes
at any time during the ten (10) years next preceding the date of
the investment.
(3) After prior order of the court, upon application, in the legally
issued notes or bonds of the owner of improved unencumbered
real property in this state, secured by first mortgage or deed of
trust. The total debt secured by the encumbrance may not exceed
fifty percent (50%) of the cash market value of the real property
at the time of the investment, and, if buildings or other
improvements constitute a material part of the value of the
premises encumbered to secure the indebtedness, they shall be
kept insured against loss or damage by fire, in a reasonable
amount for the benefit of the owners of the notes or bonds. Before
making any investment, a signed application shall be procured
from the borrower, that shall contain the information required by
the lender, and that shall contain a complete description of the
real estate, including improvements and an affirmative statement
that the proposed borrower is the owner of the entire fee simple
title to the real estate and improvements, that they are free of
every encumbrance or lien of any character, or if not, a statement
of any existing encumbrance or other liens, and specific
authorization to the lender to withhold from the proposed loan the
necessary sum to discharge and procure the release of any
encumbrances or other liens. The release shall be procured and
filed for record prior to or contemporaneously with the making of
the loan. The proposed borrower shall also furnish with the
application an abstract or certificate of title, which shall be
completed to the time of closing the loan. The guardian proposing
to make a loan or purchase any notes or bonds shall exhibit to the
court with the application for approval the opinion of a qualified
attorney at law, satisfactory to the court, which opinion shall show
that the attorney has examined the title or certificate of title and
that it is the opinion of the attorney that the proposed borrower
has good title to the property to be encumbered, and that the
proposed encumbrance will constitute a first lien on the property.
In addition, the guardian shall file with the court satisfactory
written evidence that the cash market value of the property to be
encumbered is in accordance with the requirements of this
subsection. If the guardian purchases notes or bonds previously
issued, the attorney's examination and opinion shall also disclose
whether the proposed transferor has and will pass to the guardian
good title together with the liens securing the notes or bonds.
Except loans insured by the federal housing administrator, the
guardian is not authorized to loan or invest money upon the
security of a real estate mortgage or trust deed which secures any
principal indebtedness other than to the protected person's estate,
and in the case of a minor the maturity of any indebtedness to the
minor secured by real estate mortgage or trust deed shall not be
later than the date on which the minor will attain the age of
majority. Any investment made by a guardian in any of the
securities enumerated shall not be transferred, liquidated, or
disposed of, except upon petition filed for that purpose and an
order of court obtained.
(4) In shares of a federal savings and loan association organized
under the Home Owners' Loan Act of 1933, (12 U.S.C. 1461
through 1468), as in effect on December 31, 1990, or any building
or savings and loan association whose principal place of business
is located in Indiana whose accounts are insured by the Federal
Deposit Insurance Corporation as provided in 12 U.S.C. 1811
through 1833e, as in effect on December 31, 1990. No shares may
be purchased in excess of the amount of insurance protection
afforded a member or investor of any such institution.
(5) In savings deposits in any bank whose principal place of
business is located in Indiana.
Formerly: Acts 1953, c.112, s.2013; Acts 1957, c.223, s.1. As
amended by Acts 1982, P.L.1, SEC.53; P.L.33-1989, SEC.48;
P.L.8-1991, SEC.32.