Citations Affected: IC 4-10-18-13; IC 5-11-14-1; IC 5-13;
IC 5-20-4-7; IC 8-5-15-5; IC 28-1-2-40; IC 34-30-2; IC 36-8-8.5-17;
IC 36-10.
Synopsis: Public deposit insurance fund. Allows the board for
depositories to merge with a domestic nonprofit corporation if certain
conditions are met, including the approval of a resolution of merger
and conversion by the board of directors and voting members of the
domestic nonprofit corporation. Requires the surviving nonprofit
corporation of the merger, known as the public deposit insurance
corporation, to deliver to the secretary of state articles of merger that
include certain information regarding the merger. Allows the secretary
of state to approve or disapprove the articles of merger. Establishes the
effect of the merger, including that the: (1) surviving nonprofit
corporation does not have the statutory rights, privileges, immunities,
and powers and is not subject to the statutory duties, restrictions,
penalties, and liabilities of the board for depositories unless specifically
expressed otherwise in law; and (2) title to real property and other
property owned by each party to the merger is vested in the surviving
nonprofit corporation, including the public deposit insurance fund
(which, under the management of the public deposit insurance
corporation, is called the corporation insurance fund.) Requires the
merging nonprofit corporation to comply with the laws relating to
mergers of nonprofits except for a provision that requires court
approval or when the requirements are otherwise inconsistent with the
provisions governing the merger with the board for depositories.
Provides that all property in the corporation insurance fund and all
property otherwise held by the public deposit insurance corporation is
exempt from all taxes imposed by the state or any political subdivision.
Establishes certain immunity for members of the board of directors and
Effective: Upon passage; July 1, 2012.
January 9, 2012, read first time and referred to Committee on Financial Institutions.
any officers, members, or employees of the public deposit insurance
corporation. Provides for the expiration of provisions that: (1) create
the board for depositories; and (2) establish the duties, restrictions,
penalties, and liabilities regarding the board for depositories and the
management of the public deposit insurance fund. Allows the secretary
of state to file an affidavit with the governor requesting that the board
for depositories continue administering the public deposit insurance
fund if the board for depositories and a nonprofit corporation fail to
merge by a certain date and requires the governor, within 10 days, to
issue an executive order that allows the board for depositories to
continue to administer the public deposit insurance fund until a certain
date. Changes references from the "board for depositories" to the
"public deposit insurance corporation." Changes references from the
"public deposit insurance fund" to the "corporation insurance fund."
Makes other changes related to the expiration of the provisions
regarding the board for depositories.
A BILL FOR AN ACT to amend the Indiana Code concerning state
and local administration.
depositories in connection with the sale, shall be deposited which were
deposited by the board of finance in a segregated account in the fund
(to be (known as the economic growth initiatives account) must
remain on deposit for the purpose of providing grants for the purposes
described in section 15 of this chapter.
necessary.
(f) Whenever a conference is called by the state board of accounts
under this section, an elected official, at the direction of the state
examiner, may require the attendance of:
(1) each of the elected official's appointed and acting chief
deputies or chief assistants; and
(2) if the number of deputies or assistants employed:
(A) does not exceed three (3), one (1) of the elected official's
appointed and acting deputies or assistants; or
(B) exceeds three (3), two (2) of the elected official's duly
appointed and acting deputies or assistants.
(g) Each official representing a unit and attending any conference
under this section shall be allowed the following:
(1) A sum for mileage at a rate determined by the fiscal body of
the unit the official represents for each mile necessarily traveled
in going to and returning from the conference by the most
expeditious route. Regardless of the duration of the conference,
only one (1) mileage reimbursement shall be allowed to the
official furnishing the conveyance even if the official transports
more than one (1) person.
(2) An allowance for lodging for each night preceding conference
attendance in an amount equal to the single room rate. However,
lodging expense, in the case of a one (1) day conference, shall
only be allowed for persons who reside fifty (50) miles or farther
from the conference location.
(3) Reimbursement of an official, in an amount determined by the
fiscal body of the unit the official represents, for meals purchased
while attending a conference called under this section.
(h) The state board of accounts shall certify the number of days of
attendance and the mileage for each conference to each official
attending any conference under this section.
(i) All payments of mileage and lodging shall be made by the proper
disbursing officer in the manner provided by law on a duly verified
claim or voucher to which shall be attached the certificate of the state
board of accounts showing the number of days attended and the
number of miles traveled. All payments shall be made from the general
fund from any money not otherwise appropriated and without any
previous appropriation being made therefor.
(j) A claim for reimbursement under this section may not be denied
by the body responsible for the approval of claims if the claim complies
with IC 5-11-10-1.6 and this section.
[EFFECTIVE JULY 1, 2012]: Sec. 2. "Board for depositories" refers
to the board established under IC 5-13-12 (before its expiration).
and
(B) carries out substantial business activities in Indiana,
including the employment of individuals who reside in
Indiana.
(b) As used in this section, "investment in an Indiana resident"
means an investment in an interest-bearing obligation of a political
subdivision (as defined in IC 36-1-2-13) in Indiana.
(c) The local board of finance under which any depository operates
may at any time revoke the commission of any depository at a meeting
called for the purpose of revoking a commission, of which the
depository shall have been notified by advance written notice sent by
first class or registered mail not less than twenty (20) days before the
meeting and at which the depository has the right to be heard. Not later
than thirty (30) days after a local board of finance revokes the
commission of a depository, the local board of finance shall give
written notice of the action to the board of depositories. public deposit
insurance corporation.
(d) The local board of finance may revoke the commission of any
depository to do business with the political subdivision:
(1) if the depository is unwilling or unable to perform banking
services reasonably required by the local board of finance,
considering the volume of transactions, that are:
(A) related to the public funds deposited in a deposit account
described in IC 5-13-9-4(a); and
(B) required by the political subdivision served by the local
board of finance to carry out the responsibilities of the political
subdivision, as determined by the local board of finance;
(2) if the depository is unwilling or unable to comply with a state
or federal statute, rule, or other regulation that governs the records
or handling of public funds of the political subdivision served by
the local board of finance, as determined by the local board of
finance;
(3) if the depository ceases to qualify as a depository under this
chapter, as determined by the local board of finance;
(4) if the depository fails to conduct lending activities in Indiana
to such an extent that, at the end of each quarter, pursuant to the
depository's certification, the sum of:
(A) the total principal amount of outstanding loans to Indiana
residents; plus
(B) the total value of investments in Indiana residents;
will at least equal the total amount of the public funds of the state
and political subdivisions of the state that are on deposit in the
financial institution; or
(5) for any cause that is adopted in the written rules of the local
board of finance and that is directly related to the safe handling of
public funds.
(e) Upon revocation, the depository shall immediately render an
accounting and make settlement for all public funds deposited with the
depository.
insurance corporation.
(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 public deposit
insurance corporation 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 public deposit insurance corporation may rely on a
certificate furnished under this subsection in determining whether to
deposit public funds or reinvest public funds in the institution.
institution.
by the treasurer of state are governed by IC 5-13-10.
(b) Investments in deposit accounts under subsection (a) must be in
the amounts, and for the rates and terms, as are agreed upon from time
to time by the officer making the investment and the designated
depository.
(c) Investments made in accordance with subsection (a) and the
interest earned or accrued on them are public funds and are covered by
the corporation insurance fund.
January 1, 2013.
(1) to the voting members of the corporation for approval;
and
(3) the resolution is approved by the voting members of the
corporation by an affirmative vote of at least a majority of the
voting members of the corporation:
(A) in a meeting at which a quorum is present; or
(B) by written consent or written ballot as provided in
IC 23-17-19-3(e).
(b) The resolution of merger and conversion described in
subsection (a) must include the details or a description of the plan
of merger between the board for depositories and the domestic
nonprofit corporation, including the following:
(1) The name of:
(A) each entity that is a party to the merger under this
chapter; and
(B) the domestic nonprofit corporation that will be the
surviving entity in the transaction.
(2) The terms and conditions of the planned merger and
conversion.
(c) A plan of merger may include the following:
(1) Amendments to, or a restatement of, the articles of
incorporation or bylaws of the surviving nonprofit
corporation.
(2) Other provisions relating to the planned merger and
conversion.
(3) A delayed effective date.
(d) The domestic nonprofit corporation shall give notice of the
meeting of members described in subsection (a)(3)(A) in
accordance with IC 23-17-10-5. The notice shall:
(1) state that the purpose of the meeting is to consider the plan
of merger; and
(2) contain or be accompanied by a copy or summary of the
plan of merger.
(e) If the board of directors of the domestic nonprofit
corporation seeks to have a resolution of merger and conversion
approved by the voting members by written consent or written
ballot under subsection (a)(3)(B), the domestic nonprofit
corporation shall include a copy or summary of the plan of merger
with the material soliciting the approval of the resolution of
merger and conversion.
(f) Upon the approval of a resolution of merger and conversion
by the board of directors and members of the domestic nonprofit
corporation as described in subsection (a), both of the following
apply:
(1) The board for depositories shall be deemed to have
become a party to the plan of merger described in this section.
(2) The board for depositories shall be deemed to have
approved the resolution of merger and conversion described
in subsection (a).
Sec. 4. After a plan of merger is approved as provided in section
3 of this chapter, the domestic nonprofit corporation that will be
the surviving entity in the merger shall deliver to the secretary of
state articles of merger that include the following:
(1) The plan of merger.
(2) The total number of votes for and votes against the plan of
merger cast by the members of the board of directors of the
domestic nonprofit corporation that will be the surviving
nonprofit corporation in the merger.
(3) The total number of votes for and votes against the plan of
merger cast by the voting members of the board of directors
of the domestic nonprofit corporation that will be the
surviving nonprofit corporation in the merger.
Sec. 5. (a) When a merger and conversion under this chapter
take effect, the following occur:
(1) The board for depositories merges into the surviving
nonprofit corporation and the separate existence of the board
for depositories ceases.
(2) The surviving nonprofit corporation:
(A) has all of the rights, privileges, immunities, and
powers, and is subject to all the duties, restrictions,
penalties, and liabilities, of a nonprofit corporation
organized under IC 23-17; and
(B) shall function as the public deposit insurance
corporation.
(3) The surviving nonprofit corporation:
(A) does not have the statutory rights, privileges,
immunities, and powers; and
(B) is not subject to the statutory duties, restrictions,
penalties, and liabilities;
of the board for depositories, including, without limitation,
those provided under IC 5-13, except as expressly provided
for by reference to the public deposit insurance corporation.
(4) The title to real property and other property owned by
each party to the merger is vested in the surviving nonprofit
corporation without reversion or impairment, subject to any
conditions to which the property was subject before the
merger.
(5) Subject to subdivision (3), the surviving nonprofit
corporation has all of the liabilities and obligations of each
party to the merger.
(6) A proceeding pending against a party to the merger may
be continued as if the merger and conversion had not
occurred, or the surviving nonprofit corporation may be
substituted in the proceeding for the board for depositories
whose existence ceased.
(7) The articles of incorporation and bylaws of the surviving
nonprofit corporation are amended or restated to the extent
provided in the plan of merger.
(b) After a merger and conversion take effect under this
chapter, any terms of the plan of merger that are not included in
the articles of incorporation are considered to be contract rights
only and are not part of the governing documents of the nonprofit
corporation.
Sec. 6. (a) Except as provided in subsection (b) or when the
requirements are inconsistent with this chapter, a nonprofit
corporation organized under IC 23-17 that is a party to a merger
with the board for depositories under this chapter shall comply
with the applicable requirements of IC 23-17-19 relating to
mergers.
(b) IC 23-17-19-2 does not apply to a merger and conversion
under this chapter.
Sec. 7. (a) The secretary of state shall approve or disapprove
articles of merger filed under this chapter after first making the
examinations or investigations the secretary of state considers
necessary to determine whether the proposed merger and
conversion is lawful.
(b) If the secretary of state approves the articles of merger:
(1) the approval is conclusive proof that the parties to the
merger satisfied all conditions precedent to the merger; and
(2) the effective date of the merger and conversion is the date
of the filing of the articles of merger, unless a delayed
effective date is specified in the articles of merger.
Sec. 8. (a) Every depository that has public funds shall:
(1) pay into the corporation insurance fund the assessments
provided for in this article; and
(2) comply with all lawful requirements of the public deposit
insurance corporation.
The corporation insurance fund shall be maintained by the
assessments payable by the depositories, by the collection of all
claims created under IC 5-13-13, and by the receipt of all interest
and other earnings of the corporation insurance fund from any
source.
(b) All property in the corporation insurance fund, the interest
or income derived from it or through its use, and all property
otherwise held by the public deposit insurance corporation under
this title is exempt from all taxes imposed by the state or any
political subdivision.
Sec. 9. The corporation insurance fund shall continue to hold
until maturity the bonds issued by the Indiana housing finance
authority in which the board for depositories invested in 2004.
Sec. 10. Members of the board of directors of the public deposit
insurance corporation and any officers, members, or employees of
the public deposit insurance corporation are not subject to
personal liability or accountability by reason of any investment
made in compliance with the investment policy adopted by the
investment committee of the public deposit insurance corporation.
Sec. 11. The public deposit insurance corporation shall continue
to hold until paid in accordance with its terms the instrument of
indebtedness evidencing the obligation to repay the loan from the
public deposit insurance fund to the state general fund under
P.L.224-116 (2003).
fund. The certification shall be made within twenty (20) days after its
special representative has taken charge of the business and property of
any closed depository, or the receiver of any national banking
association or state chartered state banks within twenty (20) days after
appointment.
(c) Within ten (10) days after the receipt of a certification under
subsection (b), the several public officers who have public funds on
deposit in the closed depository shall furnish to the attorney general
and the auditor of state:
(1) verified statements of the amount of the public funds on
deposit in the closed depository, as disclosed by their records;
(2) certified copies of the resolution or resolutions under which
the deposits were made; and
(3) any other information requested by the attorney general and
the auditor of state.
JULY 1, 2012]: Sec. 4. (a) Whenever the assets in the corporation
insurance fund are not sufficient to pay the claims of any kind that have
been finally determined and have become payable, the board for
depositories public deposit insurance corporation shall issue
anticipatory warrants for the purpose of raising money for the
immediate payment of the claims. The warrants outstanding and unpaid
must not at any time exceed the sum of three hundred million dollars
($300,000,000). Interest may be paid upon the warrants from the date
the rate was established by the board for depositories. public deposit
insurance corporation. Interest is payable at the end of each year or
for a shorter period as the warrants remain unpaid.
(b) The warrants are the obligation of the board for depositories
public deposit insurance corporation payable out of the public
deposit corporation insurance fund only and do not constitute a debt,
liability, or obligation of the state or a pledge of the faith and credit of
the state. Each warrant must have printed on its face the words, "This
warrant is an obligation of the board for depositories public deposit
insurance corporation payable solely out of the public deposits
corporation insurance fund, and neither the faith and credit nor the
taxing power of the state is pledged to the payment of the principal, the
interest, or any other amount owed on the warrants.".
(c) Subject to the limitations in subsections (a) through (b), the
warrants shall be issued in the individual and gross amounts and in the
form and at the rate of interest approved by the board for depositories.
public deposit insurance corporation.
designee of the public deposit insurance corporation sees fit, but no
allotments shall be made in an amount less than two thousand dollars
($2,000).
(c) The secretary-investment manager designee of the public
deposit insurance corporation shall make and retain in the
secretary-investment manager's designee of the public deposit
insurance corporation's office a complete record of all warrants sold
to each purchaser and of the post office address of the purchaser.
Purchasers of warrants may notify the secretary-investment manager
designee of the public deposit insurance corporation of their post
office addresses, or of any change in their addresses, and of the
warrants owned or held by them, and the secretary-investment manager
designee of the public deposit insurance corporation shall change
the secretary-investment manager's designee of the public deposit
insurance corporation's sale record accordingly.
day period, interest ceases on the warrant or warrants.
all times be substantially equal to the amount of public funds on
deposit in the respective depositories.
(c) Whenever an order is in force and the amount of public funds on
deposit is at least ten percent (10%) less than the market value of
securities pledged to secure the payment, as required by the board,
public deposit insurance corporation, the depository may withdraw
the excess amount of pledged collateral.
(d) Any order of the board for depositories public deposit
insurance corporation becomes effective within the time fixed by the
board. public deposit insurance corporation. However, the time of
effectiveness must not be earlier than thirty (30) days from the date of
entry of the order by the board. public deposit insurance corporation.
The order continues in force until rescinded by the board. public
deposit insurance corporation. Upon the entry of any order by the
board for depositories, public deposit insurance corporation, all then
constituted depositories affected by the order shall comply with the
order. Upon compliance, and full payment of all its liabilities by the
corporation insurance fund, depositories are not required to pay any
further assessments for insurance under this chapter until the order
requiring collateral has been revoked or rescinded and the collateral
returned to the respective depositories.
(e) A depository may elect at any time to pledge and deliver
collateral to the board public deposit insurance corporation in an
amount equal to one hundred percent (100%) of the public funds the
depository has on deposit. A depository that:
(1) elects this option;
(2) has pledged and delivered the collateral to the board; public
deposit insurance corporation; and
(3) has maintained a one hundred percent (100%) collateral level
continuously for the twelve (12) months immediately preceding
an assessment;
is exempt from paying any assessment authorized by this article while
the collateral continues to be maintained with the board. public deposit
insurance corporation.
(f) If the fund balance is zero (0), each depository shall pledge and
deliver collateral to the board public deposit insurance corporation
equal to the depository's pro rata share of total deposit accounts of
public funds based on an average of the depository's total deposit
accounts of public funds for the previous four (4) quarters, as reported
under this article, as determined by the board public deposit insurance
corporation from time to time, with at least fifteen (15) days notice to
the depository, to secure the safekeeping and prompt payment of public
funds.
district; and
(E) any regional transportation authority, transit authority, or
like governmental unit in another state if the commuter
transportation system crosses the boundary of the state or
serves another.
(5) To purchase, lease, or lease with option to purchase capital
equipment in aid of any system of commuter transportation
operating in the district, and lease the equipment to the system
under conditions and for a term to be determined by the board.
(6) As a municipal corporation, to sue and be sued.
(7) To conduct public hearings to accomplish the purpose of this
chapter.
(8) To seek and accept the assistance of any public or publicly
funded agency in carrying out its functions and duties.
(9) To enter into agreements with either private or public agencies
for any purpose required to accomplish the intent of this chapter.
The board may enter into a trust indenture or any other agreement
with the board for depositories in order to obtain a loan or a loan
guarantee under IC 5-13-12-11.
(10) To set levels of service and rates notwithstanding IC 8-3-1,
for transportation of passengers subject to section 7 of this
chapter.
(11) To expend funds granted to the district from any source for
the purpose of paying reasonable administrative expenses.
(12) To purchase, acquire, lease, or lease with option to purchase
all or any part of the assets of a railroad that is providing
commuter transportation services within the district and to
purchase or acquire all or any part of the issued and outstanding
stock of a railroad that is providing commuter transportation
services within the district.
(13) To own all or any part of the capital stock or assets of a
railroad that is providing commuter transportation services within
the district, and to operate either directly, by management
contract, or by lease any such railroad.
(14) To issue revenue bonds of the district payable solely from
revenues for the purpose of paying all or any part of the cost of
acquiring the capital stock of a railroad company, all or any part
of the assets of a railroad, or any property, real or personal, for the
purposes of this chapter.
(15) To acquire, lease, construct, maintain, repair, police, and
operate a railroad and to establish rules for the use of the railroad
and other properties subject to the jurisdiction and control of the
board.
(16) To acquire and dispose of real and personal property in the
exercise of its powers and the performance of its duties under this
chapter.
(17) To lease to others for development or operation all or any
part of a railroad on such terms and conditions as the board
considers advisable.
(18) To make and enter into all contracts, undertakings, and
agreements necessary or incidental to the performance of its
duties and the execution of its powers under this chapter.
(19) To employ, subject to sections 18 and 19 of this chapter, an
executive director or manager, consulting engineers,
superintendents, and such other engineers, construction and
accounting experts, attorneys, and other employees and agents as
may be necessary in its judgment, and to fix their compensation.
(20) To negotiate and enter into agreements for railroad trackage
rights regardless of the location of the track.
(21) To do all other acts necessary or reasonably incident to
carrying out the purpose of this chapter.
(b) Notwithstanding the powers granted to the board in subsection
(a), the district does not have the power to levy taxes.
(c) In the event the board of trustees determines that the commuter
transportation system or the railroad owned by the district cannot
continue to provide adequate transportation service, or the district is
terminated, the board may, subject to the conditions of any state or
federal grant used to purchase equipment or property, dispose of any
properties of the district.
(d) In the event the district is dissolved, ninety percent (90%) of the
proceeds shall be paid to the state and ten percent (10%) to the counties
in proportion to their contributions.
(e) In the exercise of any of the powers granted to the board in
subsection (a), the board is not subject to any other laws related to
commuter transportation systems or railroads.
act, the director of the department shall send a notice of the evidence
by certified mail to the financial institution's chief executive officer.
The notice must:
(1) set forth the provisions of IC 5-13-9.5-1(c) and
IC 5-13-9.5-1(d);
(2) describe the department's evidence that the financial
institution is not in substantial compliance with the act;
(3) describe the consequences under IC 5-13-9.5-1(c) of a finding
that the financial institution is not in substantial compliance with
the act; and
(4) invite a reply that affirms or disputes the evidence of
noncompliance with the act.
If a financial institution disputes the preliminary determination that it
is not in substantial compliance with the act, but fails to convince the
director of the department of its substantial compliance with the act,
the financial institution may, within twenty (20) days of the date of the
notice, request a hearing on the determination. If a hearing is requested,
the department shall schedule the hearing not earlier than twenty (20)
days after the date of the request. If no hearing is requested, the
department's determination that the financial institution is not in
substantial compliance with the act is final.
(c) Except as otherwise provided in this section, any hearing
requested by a financial institution under subsection (b) and the
determination by the department are subject to IC 4-21.5-3. Judicial
review of the department's final determination may be obtained in
accordance with IC 4-21.5-5.
(d) If a financial institution does not contest the determination that
it is not in substantial compliance with the act, or the financial
institution is determined under subsection (b) to not be in substantial
compliance with the act, the department shall immediately notify the
chairperson of the board for depositories established under IC 5-13-12
public deposit insurance corporation (as defined in IC 5-13-4-19.5)
of the determination.
(e) A financial institution that has been determined by the
department to not be in substantial compliance with the act may
petition the department for a hearing to demonstrate that the financial
institution has taken the necessary steps to attain substantial
compliance with the act, and to ensure future substantial compliance
with the act. The hearing and the determination by the department are
subject to IC 4-21.5-3. Judicial review of the department's final
determination may be obtained in accordance with IC 4-21.5-5. Upon
final determination by the department, or a final judgment in the case
of pending judicial review, that the financial institution is in substantial
compliance with the act, the department shall immediately notify the
chairperson of the board for depositories established under IC 5-13-12
public deposit insurance corporation (as defined in IC 5-13-4-19.5)
of the determination or judgment.
treasurer of the board shall give bond for the faithful performance
and discharge of all duties required of him the treasurer of the board
by law in the amount and with surety and other conditions that may be
prescribed and approved by the board. All funds and assets in the
capital improvement fund and the capital improvement bond fund
created by this chapter and all other funds, assets, and tax revenues
held, collected, or received by the treasurer of the county for the use of
the board shall be promptly remitted and paid over by him the
treasurer of the county to the treasurer of the board, who shall issue
receipts for them.
(b) The treasurer of the board shall deposit all money coming into
his the treasurer of the board's hands as required by this chapter and
IC 6-7-1-30.1, and in accordance with general statutes relating to the
deposit of public funds. Money so deposited may be invested and
reinvested by the treasurer in accordance with IC 5-13 and in securities
that the board specifically directs. All interest and other income earned
on investments becomes a part of the particular fund from which the
money was invested. All funds invested and fully safeguarded and
secured as provided in IC 5-13-9 are exempt from assessments under
IC 5-13-12.
(c) The board shall appoint a controller to act as the auditor and
assistant treasurer of the board. He The controller shall serve as the
official custodian of all books of account and other financial records of
the board and has the same powers and duties as the treasurer of the
board or the lesser powers and duties that the board prescribes. The
controller, and any other employee or member of the board authorized
to receive, collect, or expend money, shall give bond for the faithful
performance and discharge of all duties required of him the controller
in the amount and with surety and other conditions that may be
prescribed and approved by the board. He The controller shall keep
an accurate account of all money due the board and of all money
received, invested, and disbursed in accordance with generally
recognized governmental accounting principles and procedure. All
accounting forms and records shall be prescribed or approved by the
state board of accounts.
(d) The controller shall issue all warrants for the payment of money
from the funds of the board in accordance with procedures prescribed
by the board, but a warrant may not be issued for the payment of a
claim until an itemized and verified statement of the claim has been
filed with the controller, who may require evidence that all amounts
claimed are justly due. All warrants shall be countersigned by the
treasurer of the board or by the executive manager. Payroll and similar
warrants may be executed with facsimile signatures.
(e) If there are bonds outstanding issued under this chapter, the
controller shall deposit with the paying agent or officer within a
reasonable period before the date that any principal or interest becomes
due sufficient money for the payment of the principal and interest on
the due dates.
(f) At least annually the controller shall submit to the board a report
of his the controller's accounts exhibiting the revenues, receipts, and
disbursements and the sources from which the revenues and receipts
were derived and the purpose and manner in which they were
disbursed. The board may require that the report be prepared by an
independent certified public accountant designated by the board. The
handling and expenditure of funds is subject to audit and supervision
by the state board of accounts.
board and has the same powers and duties as the treasurer of the board
or the lesser powers and duties that the board prescribes. The controller
and any other employee or member of the board authorized to receive,
collect, or expend money, shall give bond for the faithful performance
and discharge of all duties required of the controller in the amount and
with surety and other conditions that may be prescribed and approved
by the board. The controller shall keep an accurate account of all
money due the board and of all money received, invested, and
disbursed in accordance with generally recognized governmental
accounting principles and procedure. All accounting forms and records
shall be prescribed or approved by the state board of accounts.
(d) The controller shall issue all warrants for the payment of money
from the funds of the board in accordance with procedures prescribed
by the board but a warrant may not be issued for the payment of a claim
until an itemized and verified statement of the claim has been filed with
the controller, who may require evidence that all amounts claimed are
justly due. All warrants shall be countersigned by the treasurer of the
board or by the executive manager. Warrants may be executed with
facsimile signatures.
(e) If there are bonds or notes outstanding issued under this chapter,
the controller shall deposit with the paying agent or other paying officer
within a reasonable period before the date that any principal or interest
becomes due sufficient money for the payment of the principal and
interest on the due dates. The controller shall make the deposit with
money from the sources provided in this chapter, and he the controller
shall make the deposit in an amount that, together with other money
available for the payment of the principal and interest, is sufficient to
make the payment. In addition, the controller shall make other deposits
for the bonds and notes as is required by this chapter or by the
resolutions, ordinances, or trust agreements under which the bonds or
notes are issued.
(f) The controller shall submit to the board at least annually a report
of the board's accounts exhibiting the revenues, receipts, and
disbursements and the sources from which the revenues and receipts
were derived and the purpose and manner in which they were
disbursed. The board may require that the report be prepared by an
independent certified public accountant designated by the board. The
state board of accounts shall audit annually the accounts, books, and
records of the board and prepare a financial report and a compliance
audit report. The board shall submit to the city-county legislative body
financial and compliance reports of the state board of accounts. The
board shall post the reports of the state board of accounts on the board's
Internet web site. The city-county legislative body shall discuss the
financial and compliance reports of the state board of accounts in a
public hearing. The handling and expenditure of funds is subject to
supervision by the state board of accounts.