(a)Each officer designated in section 1 of this
chapter may invest or reinvest any funds that are held by the officer and
available for investment in any of the following:
(1)Securities backed by the full faith and credit of the United
States Treasury or fully guaranteed by the United States and
issued by any of the following:
(A)The United States Treasury.
(C)A federal instrumentality.
(D)A federal government sponsored enterprise.
(2)Securities fully guaranteed and issued by any of the following:
(B)A federal instrumentality.
(C)A federal government sponsored enterprise.
(3)Municipal securities issued by an Indiana local governmental
entity, a quasi-governmental entity related to the state, a unit of
government, municipal corporation, o
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(a) Each officer designated in section 1 of this
chapter may invest or reinvest any funds that are held by the officer and
available for investment in any of the following:
(1) Securities backed by the full faith and credit of the United
States Treasury or fully guaranteed by the United States and
issued by any of the following:
(A) The United States Treasury.
(B) A federal agency.
(C) A federal instrumentality.
(D) A federal government sponsored enterprise.
(2) Securities fully guaranteed and issued by any of the following:
(A) A federal agency.
(B) A federal instrumentality.
(C) A federal government sponsored enterprise.
(3) Municipal securities issued by an Indiana local governmental
entity, a quasi-governmental entity related to the state, a unit of
government, municipal corporation, or special taxing district in
Indiana, or a nonprofit building corporation created by a
municipal corporation, if the issuer has not defaulted on any of
the issuer's obligations within the twenty (20) years preceding the
date of the purchase. A security purchased by the treasurer of
state under this subdivision must have a stated final maturity of
not more than ten (10) years after the date of purchase. However,
a security purchased by the treasurer of state from the Indiana
bond bank under this subdivision must have a stated final
maturity of not more than twenty-five (25) years after the date of
purchase.
(b) If an investment under subsection (a) is made at a cost in excess
of the par value of the securities purchased, any premium paid for the
securities shall be deducted from the first interest received and returned
to the fund from which the investment was purchased, and only the net
amount is considered interest income.
(c) The officer making the investment may sell any securities
acquired and may do anything necessary to protect the interests of the
funds invested, including the exercise of exchange privileges which
may be granted with respect to maturing securities in cases where the
new securities offered in exchange meet the requirements for initial
investment.
(d) The investing officers of the political subdivisions are the legal
custodians of securities under this chapter. They shall accept
safekeeping receipts or other reporting for securities from:
(1) a duly designated depository as prescribed in this article; or
(2) a financial institution located either in or out of Indiana having
custody of securities with a combined capital and surplus of at
least ten million dollars ($10,000,000) according to the last
statement of condition filed by the financial institution with its
governmental supervisory body.
(e) The state board of accounts may rely on safekeeping receipts or
other reporting from any depository or financial institution.
(f) In addition to any other investments allowed under this chapter,
an officer of a conservancy district located in a city having a population
of more than five thousand (5,000) and less than five thousand one
hundred thirty (5,130) may also invest in:
(1) municipal securities; and
(2) equity securities;
having a stated final maturity of any number of years or having no
stated final maturity. The total investments outstanding under this
subsection may not exceed twenty-five percent (25%) of the total
portfolio of funds invested by the officer of a conservancy district.
However, an investment that complies with this subsection when the
investment is made remains legal even if a subsequent decrease in the
total portfolio invested by the officer of a conservancy district causes
the percentage of investments outstanding under this subsection to
exceed twenty-five percent (25%).
(g) In addition to any other investments allowed under this chapter,
the clerk-treasurer of a town with a population of more than ten
thousand (10,000) and less than twenty thousand (20,000) located in a
county having a population of more than one hundred seventy-four
thousand (174,000) and less than one hundred eighty thousand
(180,000) may also invest money in a host community agreement
future fund established by ordinance of the town in:
(1) municipal securities; and
(2) equity securities;
having a stated final maturity of any number of years or having no
stated final maturity. The total investments outstanding under this
subsection may not exceed twenty-five percent (25%) of the total
portfolio of funds invested by the clerk-treasurer of a town. However,
an investment that complies with this subsection when the investment
is made remains legal even if a subsequent decrease in the total
portfolio invested by the clerk-treasurer of a town causes the
percentage of investments outstanding under this subsection to exceed
twenty-five percent (25%).