HOUSE BILL No. 1089
DIGEST OF INTRODUCED BILL
Citations Affected: IC 5-13-9-2.7.
Synopsis: Investment of public funds. Provides that public deposits
may be invested in a fixed annuity contract offered by an insurance
company with a high credit rating. Specifies the minimum terms for the
Effective: July 1, 2013.
January 8, 2013, read first time and referred to Committee on Ways and Means.
First Regular Session 118th General Assembly (2013)
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HOUSE BILL No. 1089
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 5-13-9-2.7; (13)IN1089.1.1. -->
SECTION 1. IC 5-13-9-2.7 IS ADDED TO THE INDIANA CODE
AS A NEW
SECTION TO READ AS FOLLOWS [EFFECTIVE JULY
1, 2013]: Sec. 2.7. (a) Each officer designated in section 1 of this
chapter, and the treasurer of state, may invest or reinvest any
funds that are held by the officer and available for investment in
fixed annuity contracts.
(b) For a fixed annuity contract to be eligible as an investment
under this section, the fixed annuity contract must:
(1) have a fixed rate of return;
(2) be entered into for a term certain of not greater than five
(5) years from the initial date of purchase; and
(3) be entered into with an insurance company that:
(A) is authorized by the department of insurance to do
business in Indiana;
(B) has a credit rating by at least two (2) nationally
recognized rating agencies that rate the creditworthiness
of insurance companies; and
(C) on the date of the investment, have credit ratings by
the agencies referred to in clause (B) that are in one (1) of
the highest three (3) credit rating categories for insurance