Reprinted
March 1, 2005
HOUSE BILL No. 1456
_____
DIGEST OF HB 1456
(Updated February 28, 2005 7:15 pm - DI 73)
Citations Affected: IC 5-13.
Synopsis: Investments by political subdivisions. Allows a county
treasurer and the fiscal officer of any political subdivision to invest or
reinvest funds in obligations issued, assumed, or guaranteed by the
State of Israel. Provides that investments made in obligations issued,
assumed, or guaranteed by the State of Israel must have a stated final
maturity of not more than five years.
Effective: July 1, 2005.
Murphy, Orentlicher
, Hinkle
January 18, 2005, read first time and referred to Committee on Local Government.
February 21, 2005, reported _ Do Pass.
February 28, 2005, read second time, amended, ordered engrossed.
Reprinted
March 1, 2005
First Regular Session 114th General Assembly (2005)
PRINTING CODE. Amendments: Whenever an existing statute (or a section of the Indiana
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HOUSE BILL No. 1456
A BILL FOR AN ACT to amend the Indiana Code concerning state
and local administration.
Be it enacted by the General Assembly of the State of Indiana:
SOURCE: IC 5-13-9-2; (05)HB1456.2.1. -->
SECTION 1. IC 5-13-9-2 IS AMENDED TO READ AS FOLLOWS
[EFFECTIVE JULY 1, 2005]: Sec. 2. (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) Obligations issued, assumed, or guaranteed as to the
payment of principal and interest by the State of Israel.
(b) If an investment under subsection (a)(1) 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 four thousand six hundred fifty (4,650) but less than five
thousand (5,000) 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,
a clerk-treasurer of a town with a population of more than six thousand
three hundred (6,300) but less than ten thousand (10,000) located in a
county having a population of more than one hundred thousand
(100,000) but less than one hundred five thousand (105,000) 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%).
SOURCE: IC 5-13-9-5.6; (05)HB1456.2.2. -->
SECTION 2. IC 5-13-9-5.6 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2005]: Sec. 5.6.
(a) Except for
investments allowed under section
2(a)(3), 2(f), or 2(g) of this chapter,
investments made under this chapter must have a stated final maturity
of not more than:
(1) five (5) years for a conservancy district located in a city
having a population of more than four thousand six hundred fifty
(4,650) but less than five thousand (5,000);
(2) five (5) years for investments made from a host community
agreement future fund established by ordinance of a town with a
population of more than six thousand three hundred (6,300) but
less than ten thousand (10,000) located in a county having a
population of more than one hundred thousand (100,000) but less
than one hundred five thousand (105,000); or
(3)
except as provided in subsection (b), two (2) years for a fund
or political subdivision not described in subdivision (1) or (2);
after the date of purchase or entry into a repurchase agreement.
(b) An investment made in a security described in section 2(a)(3)
of this chapter must have a stated final maturity of not more than
five (5) years from the date of purchase.