§ 9-4-828 — Joint custody agreement for securing local deposits; execution and contents of agreement

(a) The joint custody agreement shall be executed by the
custodian, the depository bank and the treasurer of the proper
governing board and shall:
(i) Contain the following provisions:
(A) The custodian will detach as they mature and
enter for collection the coupons from the securities and the
proceeds when collected will be credited to the account of the
depository bank unless otherwise ordered by the treasurer;
(B) The custodian will enter matured principal
for collection and hold the proceeds when collected subject to
the joint order of the treasurer and depository bank;
(C) It is understood by the treasurer and
depository bank that the custodian assumes no responsibility for
the nonpayment of interest or principal nor for the validity,
genuineness or enforceability of any of the securities deposited
in safekeeping hereunder nor makes any representation or
warranties expressed or implied, as to the value or worth
thereof, nor for the giving of notice of maturity, calls for
redemption or the exercise of any rights, priorities, privileges
of exchange or conversion or for the timely presentation of
maturing principal or interest of any securities deposited under
this agreement;
(D) The custodian assumes no responsibility with
respect to the safekeeping and condition of deposited property
beyond the care and custody it gives its own securities held on
its own premises. Any and all forms of protective insurance are
to be furnished by the treasurer and depository bank at their
option and expense. The custodian is not required to furnish any
form of protective insurance; and
(E) The custodian shall deliver the securities
to the treasurer upon the sole order of the treasurer when
supported by a verified certificate of the state banking
commissioner certifying under seal that the depository bank has
failed or refused to pay all or a portion of the deposit due the
treasurer by the depository bank and that under the terms of the
pledge agreement executed by the depository bank the treasurer
is entitled to delivery of the securities described in this
receipt or the proceeds thereof. Otherwise the securities shall
be delivered only upon the written joint order and instructions
of the treasurer and depository bank; or
(ii) Be in a form and contain provisions as required
by the state treasurer or the treasurer of the proper governing
board.