§ 5-13-8-7 — Revocation of commission of depository to do business with Indiana resident

Indiana § 5-13-8-7

• Jurisdiction: Indiana
• Title 5: STATE AND LOCAL ADMINISTRATION
• Art. 13: INVESTMENT OF PUBLIC FUNDS
• Ch. 8: Designation of Depositories

Text

(a) As used in this section, "Indiana resident"
means any of the following:
(1) An individual who is a resident of Indiana.
(2) A political subdivision (as defined in IC 36-1-2-13) in Indiana.
(3) A corporation, a limited liability company, a partnership, a
limited partnership, a trust, an estate, or other legal entity that:
(A) is established under Indiana law; or
(B) maintains its principal office in Indiana.
(4) A corporation, a limited liability company, a partnership, a
limited partnership, a trust, an estate, or other legal entity that:
(A) is established under the law of a state other than Indiana;
and
(B) carries out substantial business activities in Indiana,
including the employment of individuals who reside in Indiana.
(b) As used in this section, "investment in an Indiana resident"
means an investment in an interest-bearing obligation of a political
subdivision (as defined in IC 36-1-2-13) in Indiana.
(c) The local board of finance under which any depository operates
may at any time revoke the commission of any depository at a meeting
called for the purpose of revoking a commission, of which the
depository shall have been notified by advance written notice sent by
first class or registered mail not less than twenty (20) days before the
meeting and at which the depository has the right to be heard. Not later
than thirty (30) days after a local board of finance revokes the
commission of a depository, the local board of finance shall give
written notice of the action to the board of depositories.
(d) The local board of finance may revoke the commission of any
depository to do business with the political subdivision:
(1) if the depository is unwilling or unable to perform banking
services reasonably required by the local board of finance,
considering the volume of transactions, that are:
(A) related to the public funds deposited in a deposit account
described in IC 5-13-9-4(a); and
(B) required by the political subdivision served by the local
board of finance to carry out the responsibilities of the political
subdivision, as determined by the local board of finance;
(2) if the depository is unwilling or unable to comply with a state
or federal statute, rule, or other regulation that governs the records
or handling of public funds of the political subdivision served by
the local board of finance, as determined by the local board of
finance;
(3) if the depository ceases to qualify as a depository under this
chapter, as determined by the local board of finance;
(4) if the depository fails to conduct lending activities in Indiana
to such an extent that, at the end of each quarter, pursuant to the
depository's certification, the sum of:
(A) the total principal amount of outstanding loans to Indiana
residents; plus
(B) the total value of investments in Indiana residents;
will at least equal the total amount of the public funds of the state
and political subdivisions of the state that are on deposit in the
financial institution; or
(5) for any cause that is adopted in the written rules of the local
board of finance and that is directly related to the safe handling of
public funds.
(e) Upon revocation, the depository shall immediately render an
accounting and make settlement for all public funds deposited with the
depository.

Legislative History

As added by P.L.19-1987, SEC.10. Amended by P.L.74-1995, SEC.3; P.L.18-1996, SEC.9; P.L.46-1997, SEC.7.