§ 5-1.4-9-6 — Undertaking by financial institution to keep and pay over funds deposited with it

Indiana § 5-1.4-9-6

• Jurisdiction: Indiana
• Title 5: STATE AND LOCAL ADMINISTRATION
• Art. 1.4: LOCAL PUBLIC IMPROVEMENT BOND BANKS
• Ch. 9: Miscellaneous Provisions

Text

(a) A financial institution may give to the bank
a good and sufficient undertaking, with such sureties as are approved
by the bank, to the effect that the financial institution shall faithfully
keep and pay over to the order of or upon the warrant of the bank or its
authorized agent all those funds deposited with it by the bank and
agreed interest, at such times or upon such demands as may be agreed
with the bank. However, in lieu of these sureties, the financial
institution may deposit with the bank or its authorized agent or a trustee
for the holders of bonds, as collateral, those securities as the board may
approve.
(b) The deposits of the bank may be evidenced by an agreement in
the form and upon the terms and conditions that may be agreed upon
by the bank and the financial institution.

Legislative History

As added by P.L.42-1985, SEC.1.