§ 5-13-9-8 — Service charges; consideration in computing interest rate; payment by direct charge or from interest earned; reporting by political subdivision

Indiana § 5-13-9-8

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

Text

Any investing officer of a political subdivision
that makes a deposit in any deposit or other account may be required
to pay a service charge to the depository in which the funds are
deposited, if the depository requires all customers to pay the charge for
providing that service. However, the service charge imposed must be
considered in the computation of the interest rate for determining
which depositories are entitled to investments as prescribed by sections
4 and 5 of this chapter. If the total service charge cannot be computed
before the investment, the investing officer shall estimate the service
charge and adjust the interest rate based on this estimate. The service
charge may be paid:
(1) by direct charge to the deposit or other account; or
(2) in a manner that subtracts the service charge from interest
earned on the funds in the deposit or other account.
If the manner described in subdivision (2) is used to pay the service
charge, the political subdivision must report the net interest deposited
in the political subdivision's financial records, and the political
subdivision is not required to report the amount of the service charge
subtracted in the political subdivision's financial records.

Legislative History

As added by P.L.19-1987, SEC.11. Amended by P.L.18-1996, SEC.20; P.L.147-2011, SEC.1; P.L.202-2011, SEC.1; P.L.233-2015, SEC.11.