§ 5-13-9.5-1 — Application by financial institution to be state depository; ineligibility; certificate

Indiana § 5-13-9.5-1

• Jurisdiction: Indiana
• Title 5: STATE AND LOCAL ADMINISTRATION
• Art. 13: INVESTMENT OF PUBLIC FUNDS
• Ch. 9.5: Designation of State Depositories

Text

(a) A financial institution may at any time file
an application to become a depository and receive public funds of the
state on deposit. Except as provided in IC 5-13-8-1 and IC 5-13-8-7,
designation of a depository to receive public funds of the state qualifies
a depository to receive public funds of a political subdivision.
Applications for the state board of finance must be filed with the
treasurer of state. The treasurer shall submit each application to the
board.
(b) An application must:
(1) be made in writing on forms prescribed under section 8 of this
chapter;
(2) contain terms and conditions as required and authorized by
this chapter; and
(3) offer to:
(A) receive public funds of the state on deposit; and
(B) provide the security required by IC 5-13-13-7 for the
safekeeping and prompt payment of the deposited funds.
(c) A financial institution is ineligible to become a depository and
receive public funds of the state if either of the following applies:
(1) The institution fails to maintain a capital ratio in excess of the
minimum required by the governmental supervisory body of the
institution. However, the requirement set forth in this subdivision
does not apply if the institution has fully collateralized the
institution's public funds on deposit by pledging and delivering
acceptable collateral to the board for depositories, or to the
board's agent, in accordance with IC 5-13-13 and with any
applicable rules of the board.
(2) The institution has been found by the department of financial
institutions under IC 28-1-2-40, or the financial institution's
primary federal regulator, to not be in substantial compliance with
the federal Credit Card Accountability Responsibility and
Disclosure Act of 2009 as it applies to Indiana borrowers.
If the financial institution is already a depository, the institution may
continue to hold the public funds until maturity to avoid the imposition
of a penalty upon the depositor, although the financial institution may
not accept the public funds for reinvestment and may not accept
additional public funds. If necessary, a determination of the ratio
described in subdivision (1) must be based on the institution's most
recent periodic statement of condition filed with the institution's
governmental supervisory body under the regulatory accounting
principles as prescribed by the supervisory body.
(d) A financial institution shall furnish to the board a certificate
executed by an officer of the institution signifying that the institution
satisfies:
(1) the requirements of subsection (c); and
(2) the requirement in section 6(b) of this chapter that the sum of:
(A) the total principal amount of the depository's outstanding
loans to Indiana residents; plus
(B) the total value of the depository's investments in Indiana
residents;
is at least equal to the total amount of public funds of the state and
political subdivisions of the state that are on deposit in the
depository.
The board may rely on a certificate furnished under this subsection in
determining whether to deposit public funds or reinvest public funds
in the institution.

Legislative History

As added by P.L.18-1996, SEC.22. Amended by P.L.46-1997, SEC.14; P.L.115-2010, SEC.12; P.L.147-2011, SEC.2; P.L.202-2011, SEC.2.