§ 5-13-8-9 — Deposit of funds in depositories within respective territorial limits of political subdivisions; exceptions

Indiana § 5-13-8-9

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

Text

(a) All public funds of all political subdivisions
shall be deposited in the designated depositories located in the
respective territorial limits of the political subdivisions, except as
provided in this section.
(b) Each board of finance of a political subdivision:
(1) that is not a city or town; and
(2) whose jurisdiction crosses one (1) or more county lines;
may limit its boundaries for the purpose of this section to that portion
of the political subdivision within the county where its principal office
is located.
(c) If there is no principal office or branch of a financial institution
located in the county or political subdivision, or if no financial
institution with a principal office or branch in the county or political
subdivision will accept public funds under this chapter, the board of
finance of the county and the boards of finance of the political
subdivisions in the county shall designate one (1) or more financial
institutions with a principal office or branch outside of the county or
political subdivision, and in the state, as a depository or depositories.
(d) The board of trustees for a hospital organized or operated under
IC 16-22-1 through IC 16-22-5 or IC 16-23-1 may invest any money in
the hospital fund anywhere in the state with any financial institution
designated by the state board of finance as depositories for state
deposits.
(e) If two (2) or fewer financial institutions that have a branch or
principal office in a county or political subdivision are willing to accept
public funds, the board of finance for the county or political
subdivision may:
(1) treat the financial institutions that are located within the
county or political subdivision as if the financial institutions were
not located within the county or political subdivision; and
(2) designate one (1) or more financial institutions to receive
public funds under the requirements of subsection (c).
(f) The investing officer shall maintain the deposits as follows:
(1) In one (1) or more depositories designated for the political
subdivision, if the sum of the monthly average balances of all the
transaction accounts for the political subdivision does not exceed
one hundred thousand dollars ($100,000).
(2) In each depository designated for the political subdivision, if
subdivision (1) does not apply and fewer than three (3) financial
institutions are designated by the local board of finance as a
depository.
(3) In at least two (2) depositories designated for the political
subdivision, if subdivision (1) does not apply and at least three (3)
financial institutions are designated by the local board of finance
as a depository.
(g) Subject to subsections (c) and (e), a board of finance of a
political subdivision that is not a city, town, or hospital described in
subsection (d) shall invest the public funds of the political subdivision
in a designated depository located anywhere in the county in which the
political subdivision is located. For purposes of this section, the
territorial limits of a political subdivision that is not a city, town, or
local hospital authority or corporation are the territorial limits of the
county in which the principal office of the board of finance is located.

Legislative History

As added by P.L.19-1987, SEC.10. Amended by P.L.44-1990, SEC.4; P.L.2-1993, SEC.48; P.L.75-1995, SEC.1; P.L.74-1995, SEC.4; P.L.18-1996, SEC.10; P.L.46-1997, SEC.8; P.L.173-2003, SEC.1; P.L.230-2025, SEC.5.