§ 5-13-12-5 — Assessment rate; determination and fixing; assessment base; waiver or elimination of assessment rate

(a) Subject to the limitations prescribed in this
chapter, the board for depositories may fix the assessment rate to
provide assets in the fund sufficient to equal the reserve for losses of
the fund for the insurance of public funds on deposit in depositories.
Effective on July 1, and January 1, of each year, and from time to time
as the board determines necessary, the board shall determine and fix
the fair and reasonable assessment rate for each classification of
deposit, if any, to be used by depositories in determining the
assessments. This determination shall be made by the board before or
as soon as practicable after the applicable July 1, January 1, or other
date established by the board. In fixing the rate, if any, the board shall
consider the amount of public funds currently on deposit, the liabilities
of the insurance fund, contingent and accrued, and the determination
of the board on the amount of the reserve for losses of the insurance
fund as set out in section 7(b) of this chapter. For any period, the
maximum assessment rate that may be fixed by the board is two
percent (2%). The board may lower or waive the assessment on any or
all classifications of deposit if in its discretion it determines that a
lower rate or waiver will not prevent the fund from attaining sufficient
assets to equal the reserve for losses. Subject to the board's power to
implement an assessment at any time by action by the board, if no
action has been taken by the board for depositories fixing the
assessment rate, if any, on public funds, the assessment rate is the same
rate, if any. Whenever as of July 1, or January 1, or another date
established by the board, the value of the assets in the fund equals or
exceeds the reserve for losses, the board shall eliminate the assessment
requirement for each classification of deposit.
(b) During any period when an assessment rate is in effect, the
assessment base for each depository of public funds shall be
determined monthly. The assessment base must be equal to the sum
total of all the minimum balances of each classification of public funds
on deposit in each and all accounts during the month, the minimum
balance of each account being taken respectively as of the date on
which it occurs. For purposes of this section, deposits that are federally
insured are not considered public funds deposits in a depository. On or
before the second day of each month in which an assessment rate is in
effect, each depository shall compute the amount of the assessment due
from it to the insurance fund on account of public funds on deposit with
it during the preceding month. The amount of the monthly assessment,
if any, is the product obtained by multiplying one-twelfth (1/12) times
the assessment base for the month for which the assessment is being
computed.
(c) During the time the assessment rate on public funds has been
waived or eliminated by the board for depositories, the respective
depositories are not obligated to pay any assessment but shall continue
to prepare and file the reports that would otherwise be required to be
prepared and filed under this chapter.

Legislative History

As added by P.L.19-1987, SEC.14. Amended by P.L.115-2010, SEC.15.