§ 5-13-9-10 — County joint investment fund; participating political subdivisions; written master agreement; administration of board; interest payments

Indiana § 5-13-9-10

• Jurisdiction: Indiana
• Title 5: STATE AND LOCAL ADMINISTRATION
• Art. 13: INVESTMENT OF PUBLIC FUNDS
• Ch. 9: Deposit and Investment Powers

Text

(a) The investing officers of two (2) or more
political subdivisions located within a county may establish a joint
investment fund by entering into a written master agreement that
defines the rights and obligations of the participating political
subdivisions.
(b) An investing officer of a political subdivision that enters into a
written master agreement under subsection (a) may pay funds that are
held by the investing officer and that are available for investment into
the joint investment fund.
(c) The fund shall be administered by a board, which must be
comprised of the investing officer of each of the participating political
subdivisions and which must be an instrumentality of the participating
political subdivisions. Each officer of a political subdivision located
within the county who is designated in section 1 of this chapter may
pay funds that are held by the officer and available for investment into
a joint fund known as a joint investment fund. The fund is administered
by a board comprised of the investing officer of each of the
participating political subdivisions and is an instrumentality of the
participating political subdivisions.
(d) A joint investment fund must be invested and reinvested as a
separate and individual fund. A joint investment fund may be invested
or reinvested only in investments that are permitted for political
subdivisions by this chapter.
(e) A written master agreement under subsection (a) must provide
the following:
(1) A political subdivision may participate in a joint investment
fund only with the written authorization of its local board of
finance.
(2) A political subdivision may participate in a joint investment
fund only if its legislative body approves the written master
agreement.
(3) Subject to subsection (d), the board of a joint investment fund
shall establish written policies for the investment and
reinvestment of joint investment funds in the manner provided by
IC 30-4-3-3.
(4) A fund shall be invested and reinvested as prescribed in
subdivision (3).
(5) A custodian bank or trust company located in Indiana must:
(A) be selected and contracted by the board of a joint
investment fund to hold the securities and other investments of
the joint investment fund;
(B) collect the income and other receipts from the securities
and other investments; and
(C) provide any other services appropriate and customary for a
custodian;
subject to the direction of the board of a joint investment fund.
(6) The board of a joint investment fund may select and contract
with a fund administrator to provide investment advice to the
board and any other services determined by the board to be
appropriate and necessary for the efficient administration and
accounting of the joint investment fund. The fund administrator
shall agree to recommend only securities and other investments
as prescribed in the written policies established by the board in
rendering investment advice to the board and shall agree to be
responsible, accountable, and liable for any breach of this
provision. The fund administrator must have experience in the
investment of public funds for governmental entities and must be
either of the following:
(A) A financial institution located in Indiana.
(B) Registered as an investment adviser with the United States
Securities and Exchange Commission under the Investment
Advisers Act of 1940, as amended (15 U.S.C. 80a-9 et seq.),
with public funds under management in the amount of at least
one hundred million dollars ($100,000,000).
(7) A joint investment fund must be audited at least annually by
an independent auditing firm, with a copy of the audit provided to
each participating political subdivision.
(8) The administrative expenses of a joint investment fund,
including fees for the fund administrator, custodian, auditor, and
other professional services, must be paid from the fund's interest
earnings.
(9) The interest earnings that exceed the administrative expenses
of a joint investment fund must be credited to each political
subdivision participating in the joint investment fund in a manner
that equitably reflects the differing amounts and terms of the
political subdivision's investment in the joint investment fund.
(10) Each participating political subdivision shall receive reports,
including a daily transaction confirmation reflecting any activity
in the political subdivision's account and monthly reports
reflecting its investment activity in the joint investment fund and
the performance and composition of the joint investment fund
itself.
(11) The board of a joint investment fund shall meet at least
annually to review the operation and performance of the joint
investment fund, the custodian, the fund administrator, the
auditor, and any other professional retained by the board.
(12) The board of a joint investment fund shall provide for any
other policies that are necessary for the efficient administration
and accounting of the joint investment fund and are consistent
with the law governing the investment, management, deposit, and
safekeeping of public funds of political subdivisions.

Legislative History

As added by P.L.224-2003, SEC.276. Amended by P.L.3-2008, SEC.27; P.L.115-2010, SEC.11.