As Introduced 1
123rd General Assembly 4
Regular Session H. B. No. 473 5
1999-2000 6
REPRESENTATIVES MYERS-SCHULER-ALLEN-JOLIVETTE-HARTNETT- 8
CLANCY-OLMAN-METZGER-DISTEL 9
_________________________________________________________________ 10
A B I L L
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To amend sections 135.14, 135.18, 135.181, 135.33, 13
135.35, 135.37, 321.16, and 321.17 of the Revised 14
Code to modify the investment authority of 15
counties and political subdivisions relative to
the collateral requirements applicable to the 16
receipt of public funds and the investment of 17
public funds in repurchase agreements; to modify 19
the designation period of public depositories by 20
county commissioners; to authorize a political
subdivision to retain the services of an 21
investment advisor; to authorize electronic
presentment of warrant information to a county 22
treasurer; and to make related changes. 23
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF OHIO: 25
Section 1. That sections 135.14, 135.18, 135.181, 135.33, 27
135.35, 135.37, 321.16, and 321.17 of the Revised Code be amended 28
to read as follows: 29
Sec. 135.14. (A) As used in this section, "treasurer" 38
does not include the treasurer of state, and "governing board" 39
does not include the state board of deposit. 40
(B) The treasurer or governing board may invest or deposit 42
any part or all of the interim moneys. The following 44
classifications of obligations shall be eligible for such 45
investment or deposit:
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(1) United States treasury bills, notes, bonds, or any 47
other obligation or security issued by the United States treasury 48
or any other obligation guaranteed as to principal and interest 49
by the United States.
Nothing in the classification of eligible obligations set 51
forth in division (B)(1) of this section or in the 52
classifications of eligible obligations set forth in divisions 53
(B)(2) to (6) of this section shall be construed to authorize any 54
investment in stripped principal or interest obligations of such 55
eligible obligations.
(2) Bonds, notes, debentures, or any other obligations or 57
securities issued by any federal government agency or 58
instrumentality, including but not limited to, the federal 59
national mortgage association, federal home loan bank, federal 60
farm credit bank, federal home loan mortgage corporation, 61
government national mortgage association, and student loan
marketing association. All federal agency securities shall be 62
direct issuances of federal government agencies or 63
instrumentalities.
(3) Interim deposits in the eligible institutions applying 65
for interim moneys as provided in section 135.08 of the Revised 66
Code. The award of interim deposits shall be made in accordance 67
with section 135.09 of the Revised Code and the treasurer or the 68
governing board shall determine the periods for which such 69
interim deposits are to be made and shall award such interim 70
deposits for such periods, provided that any eligible institution 71
receiving an interim deposit award may, upon notification that 72
the award has been made, decline to accept the interim deposit in 73
which event the award shall be made as though such institution 74
had not applied for such interim deposit. 75
(4) Bonds and other obligations of this state; 77
(5) No-load money market mutual funds consisting 79
exclusively of obligations described in division (B)(1) or (2) of 81
this section and repurchase agreements secured by such
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obligations, provided that investments in securities described in 83
this division are made only through eligible institutions
mentioned in section 135.03 of the Revised Code; 84
(6) The Ohio subdivision's fund as provided in section 86
135.45 of the Revised Code. 87
(C) Nothing in the classifications of eligible obligations 89
set forth in divisions (B)(1) to (6) of this section shall be 90
construed to authorize any investment in a derivative, and no 91
treasurer or governing board shall invest in a derivative. For 92
purposes of this division, "derivative" means a financial 93
instrument or contract or obligation whose value or return is 94
based upon or linked to another asset or index, or both, separate 95
from the financial instrument, contract, or obligation itself.
Any security, obligation, trust account, or other instrument that 96
is created from an issue of the United States treasury or is 97
created from an obligation of a federal agency or instrumentality 98
or is created from both is considered a derivative instrument. 99
An eligible investment described in this section with a variable 100
interest rate payment, based upon a single interest payment or 101
single index comprised of other eligible investments provided for 102
in division (B)(1) or (2) of this section, is not a derivative, 103
provided that such variable rate investment has a maximum
maturity of two years. 104
(D) Any EXCEPT AS PROVIDED IN DIVISION (E) OF THIS 106
SECTION, ANY investment made pursuant to this section must mature 107
within five years from the date of settlement, unless the 108
investment is matched to a specific obligation or debt of the 109
subdivision. 110
(E) The treasurer or governing board may also enter into a 112
written repurchase agreement with any eligible institution 113
mentioned in section 135.03 of the Revised Code or any eligible 114
dealer pursuant to division (M) of this section, under the terms 115
of which agreement the treasurer or governing board purchases, 116
and such institution or dealer agrees unconditionally to 117
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repurchase any of the securities listed in division DIVISIONS 118
(B)(1) or (2) TO (5), EXCEPT LETTERS OF CREDIT DESCRIBED IN 119
DIVISION (B)(2), of this section 135.18 OF THE REVISED CODE. The 122
market value of securities subject to an overnight WRITTEN
repurchase agreement must exceed the principal value of the 123
overnight WRITTEN repurchase agreement by at least two per cent. 124
A term WRITTEN repurchase agreement shall not exceed thirty days 126
and the market value of securities subject to a term WRITTEN 127
repurchase agreement must exceed the principal value of the term 128
WRITTEN repurchase agreement by at least two per cent and be 129
marked to market daily. All securities purchased pursuant to 131
this division shall be delivered into the custody of the
treasurer or governing board or an agent designated by the 132
treasurer or governing board. A WRITTEN repurchase agreement 133
with an eligible securities dealer shall be transacted on a 135
delivery versus payment basis. The agreement shall contain the 136
requirement that for each transaction pursuant to the agreement 137
the participating institution or dealer shall provide all of the 138
following information:
(1) The par value of the securities; 140
(2) The type, rate, and maturity date of the securities; 142
(3) A numerical identifier generally accepted in the 144
securities industry that designates the securities. 145
No treasurer or governing board shall enter into a written 147
repurchase agreement under the terms of which the treasurer or 148
governing board agrees to sell securities owned by the 149
subdivision to a purchaser and agrees with that purchaser to 150
unconditionally repurchase those securities.
(F) No treasurer or governing board shall make an 152
investment under this section, unless the treasurer or governing 153
board, at the time of making the investment, reasonably expects 154
that the investment can be held until its maturity. 155
(G) No treasurer or governing board shall pay interim 157
moneys into a fund established by another subdivision, treasurer, 158
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governing board, or investing authority, if that fund was 159
established for the purpose of investing the public moneys of 160
other subdivisions. This division does not apply to the payment 161
of public moneys into either of the following:
(1) The Ohio subdivision's fund pursuant to division 164
(B)(6) of this section;
(2) A fund created solely for the purpose of acquiring, 166
constructing, owning, leasing, or operating municipal utilities 167
pursuant to the authority provided under section 715.02 of the 168
Revised Code or Section 4 of Article XVIII, Ohio Constitution. 169
For purposes of division (G) of this section, "subdivision" 171
includes a county. 172
(H) The use of leverage, in which the treasurer or 174
governing board uses its current investment assets as collateral 175
for the purpose of purchasing other assets, is prohibited. The 176
issuance of taxable notes for the purpose of arbitrage is 177
prohibited. Contracting to sell securities that have not yet 178
been acquired by the treasurer or governing board, for the
purpose of purchasing such securities on the speculation that 179
bond prices will decline, is prohibited. 180
(I) Whenever, during a period of designation, the 182
treasurer classifies public moneys as interim moneys, the 183
treasurer shall notify the governing board of such action. Such 184
THE notification shall be given within thirty days after such 185
classification and in the event the governing board does not 186
concur in such classification or in the investments or deposits 187
made under this section, the governing board may order the 188
treasurer to sell or liquidate any of such investments or 189
deposits, and any such order shall specifically describe the 190
investments or deposits and fix the date upon which they are to 191
be sold or liquidated. Investments or deposits so ordered to be 192
sold or liquidated shall be sold or liquidated for cash by the 193
treasurer on the date fixed in such order at the then current 194
market price. Neither the treasurer nor the members of the board 195
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shall be held accountable for any loss occasioned by sales or 196
liquidations of investments or deposits at prices lower than 197
their cost. Any loss or expense incurred in making such sales or 198
liquidations is payable as other expenses of the treasurer's 199
office.
(J) If any investments or deposits purchased under the 201
authority of this section are issuable to a designated payee or 202
to the order of a designated payee, the name of the treasurer and 203
the title of the treasurer's office shall be so designated. If 204
any such securities are registrable either as to principal or 205
interest, or both, then such securities shall be registered in 206
the name of the treasurer as such. 207
(K) The treasurer is responsible for the safekeeping of 209
all documents evidencing a deposit or investment acquired by the 210
treasurer under this section. Any securities may be deposited 211
for safekeeping with a qualified trustee as provided in section 212
135.18 of the Revised Code, except the delivery of securities 213
acquired under any repurchase agreement under this section shall 214
be made to a qualified trustee, provided, however, that the 215
qualified trustee shall be required to report to the treasurer, 216
governing board, auditor of state, or an authorized outside 217
auditor at any time upon request as to the identity, market 218
value, and location of the document evidencing each security, and 219
that if the participating institution is a designated depository 220
of the subdivision for the current period of designation, the 221
securities that are the subject of the repurchase agreement may 222
be delivered to the treasurer or held in trust by the 223
participating institution on behalf of the subdivision. Interest 224
earned on any investments or deposits authorized by this section 225
shall be collected by the treasurer and credited by the treasurer 227
to the proper fund of the subdivision.
Upon the expiration of the term of office of a treasurer or 229
in the event of a vacancy in the office of treasurer by reason of 230
death, resignation, removal from office, or otherwise, the 231
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treasurer or the treasurer's legal representative shall transfer 232
and deliver to the treasurer's successor all documents evidencing 233
a deposit or investment held by the treasurer. For the 234
investments and deposits so transferred and delivered, such 235
treasurer shall be credited with and the treasurer's successor 236
shall be charged with the amount of money held in such
investments and deposits. 237
(L) Whenever investments or deposits acquired under this 239
section mature and become due and payable, the treasurer shall 240
present them for payment according to their tenor, and shall 241
collect the moneys payable thereon. The moneys so collected 242
shall be treated as public moneys subject to sections 135.01 to 243
135.21 of the Revised Code. 244
(M)(1) All investments, except for investments in 246
securities described in divisions (B)(5) and (6) of this section 247
and for investments by a municipal corporation in the issues of 248
such municipal corporation, shall be made only through a member 249
of the national association of securities dealers, through a 250
bank, savings bank, or savings and loan association regulated by 251
the superintendent of financial institutions, or through an 252
institution regulated by the comptroller of the currency, federal 253
deposit insurance corporation, or board of governors of the 254
federal reserve system.
(2) Payment for investments shall be made only upon the 256
delivery of securities representing such investments to the 257
treasurer, governing board, or qualified trustee. If the 258
securities transferred are not represented by a certificate, 259
payment shall be made only upon receipt of confirmation of 260
transfer from the custodian by the treasurer, governing board, or 261
qualified trustee. 262
(N)(1) IN MAKING INVESTMENTS AUTHORIZED BY THIS SECTION, A 264
TREASURER OR GOVERNING BOARD MAY RETAIN THE SERVICES OF AN 266
INVESTMENT ADVISOR, PROVIDED THE ADVISOR IS REGISTERED WITH THE 267
SECURITIES AND EXCHANGE COMMISSION AND POSSESSES EXPERIENCE IN 268
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PUBLIC FUNDS INVESTMENT MANAGEMENT, SPECIFICALLY IN THE AREA OF 269
STATE AND LOCAL GOVERNMENT INVESTMENT PORTFOLIOS, OR THE ADVISOR 270
IS AN ELIGIBLE INSTITUTION MENTIONED IN SECTION 135.03 OF THE 271
REVISED CODE. 272
(O)(1) Except as otherwise provided in divisions (N)(O)(2) 275
and (3) of this section, no treasurer or governing board shall 276
make an investment or deposit under this section, unless there is 278
on file with the auditor of state a written investment policy 279
approved by the treasurer or governing board. The policy shall 280
require that all entities conducting investment business with the 281
treasurer or governing board shall sign the investment policy of 282
that subdivision. All brokers, dealers, and financial 283
institutions, described in division (M)(1) of this section, 284
initiating transactions with the treasurer or governing board by 285
giving advice or making investment recommendations shall sign the 286
treasurer's or governing board's investment policy thereby
acknowledging their agreement to abide by the policy's contents. 287
All brokers, dealers, and financial institutions, described in 288
division (M)(1) of this section, executing transactions initiated 289
by the treasurer or governing board, having read the policy's 290
contents, shall sign the investment policy thereby acknowledging 291
their comprehension and receipt.
(2) If a written investment policy described in division 293
(N)(O)(1) of this section is not filed on behalf of the 295
subdivision with the auditor of state, the treasurer or governing 296
board of that subdivision shall invest the subdivision's interim 297
moneys only in interim deposits pursuant to division (B)(3) of 298
this section or the Ohio subdivision's fund pursuant to division 299
(B)(6) of this section.
(3) Divisions (N)(O)(1) and (2) of this section do not 301
apply to a treasurer or governing board of a subdivision whose 303
average annual portfolio of investments held pursuant to this 304
section is one hundred thousand dollars or less, provided that 305
the treasurer or governing board certifies, on a form prescribed 306
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by the auditor of state, that the treasurer or governing board 307
will comply and is in compliance with the provisions of sections 308
135.01 to 135.21 of the Revised Code. 309
(O)(P) A treasurer or governing board may enter into a 312
written investment or deposit agreement that includes a provision 313
under which the parties agree to submit to nonbinding arbitration 314
to settle any controversy that may arise out of the agreement, 315
including any controversy pertaining to losses of public moneys 316
resulting from investment or deposit. The arbitration provision 317
shall be set forth entirely in the agreement, and the agreement 318
shall include a conspicuous notice to the parties that any party 320
to the arbitration may apply to the court of common pleas of the 321
county in which the arbitration was held for an order to vacate,
modify, or correct the award. Any such party may also apply to 322
the court for an order to change venue to a court of common pleas 323
located more than one hundred miles from the county in which the 324
treasurer or governing board is located. 325
For purposes of this division, "investment or deposit 327
agreement" means any agreement between a treasurer or governing 328
board and a person, under which agreement the person agrees to 329
invest, deposit, or otherwise manage a subdivision's interim 330
moneys on behalf of the treasurer or governing board, or agrees 331
to provide investment advice to the treasurer or governing board.
(P)(Q) An investment made by the treasurer or governing 333
board pursuant to this section prior to the effective date of 334
this amendment SEPTEMBER 27, 1996, that was a legal investment 336
under the law as it existed before the effective date of this 338
amendment SEPTEMBER 27, 1996, may be held until maturity, or if 339
the investment does not have a maturity date, it may be held 340
until five years from the effective date of this amendment 342
SEPTEMBER 27, 1996, regardless of whether the investment would 343
qualify as a legal investment under the terms of this section as 344
amended.
Sec. 135.18. (A) The treasurer, before making the initial 353
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deposit in a public depository pursuant to an award made under 354
sections 135.01 to 135.21 of the Revised Code, shall require the 355
institution designated as a public depository to pledge to and 356
deposit with the treasurer, as security for the repayment of all 357
public moneys to be deposited in the public depository during the 358
period of designation pursuant to the award, eligible securities 359
of aggregate market value equal to the excess of the amount of 360
public moneys to be at the time so deposited, over and above such 361
portion or amount of such moneys as is at such time insured by 362
the federal deposit insurance corporation or by any other agency 363
or instrumentality of the federal government, or the treasurer 364
may require the institution to deposit with the treasurer surety 365
company bonds which, when executed, shall be for an amount equal 366
to such excess amount. In the case of any deposit other than the 367
initial deposit made during the period of designation, the amount 368
of the aggregate market value of securities required to be 369
pledged and deposited, or of the surety company bonds required to 370
be deposited, shall be equal to the difference between the amount 371
of public moneys on deposit in such public depository plus the 372
amount to be so deposited, minus the portion or amount of the 373
aggregate as is at the time insured as provided in this section. 374
The treasurer may require additional eligible securities to be 375
deposited to provide for any depreciation which may occur in the 376
market value of any of the securities so deposited. 377
(B) The following securities shall be eligible for the 379
purposes of this section: 380
(1) Bonds, notes, or other obligations of the United 382
States; or bonds, notes, or other obligations guaranteed as to 383
principal and interest by the United States or those for which 384
the faith of the United States is pledged for the payment of 385
principal and interest thereon, by language appearing in the 386
instrument specifically providing such guarantee or pledge and 387
not merely by interpretation or otherwise; 388
(2) Bonds, notes, debentures, letters of credit, or other 390
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obligations or securities issued by any federal government agency 391
or instrumentality, or the export-import bank of Washington; 392
bonds, notes, or other obligations guaranteed as to principal and 393
interest by the United States or those for which the faith of the 394
United States is pledged for the payment of principal and 395
interest thereon, by interpretation or otherwise and not by 396
language appearing in the instrument specifically providing such 397
guarantee or pledge;
(3) Obligations of or fully insured or fully guaranteed by 399
the United States or any federal government agency or 400
instrumentality;
(4) Obligations partially insured or partially guaranteed 402
by any federal agency or instrumentality; 403
(5) Obligations of or fully guaranteed by the federal 405
national mortgage association, federal home loan mortgage 406
corporation, federal farm credit bank, or student loan marketing 407
association;
(6) Bonds and other obligations of this state; 409
(7) Bonds and other obligations of any county, township, 411
school district, municipal corporation, or other legally 412
constituted taxing subdivision of this state, which is not at the 413
time of such deposit, in default in the payment of principal or 414
interest on any of its bonds or other obligations, for which the 415
full faith and credit of the issuing subdivision is pledged; 417
(8) Bonds of other states of the United States which have 419
not during the ten years immediately preceding the time of such 420
deposit defaulted in payments of either interest or principal on 421
any of their bonds; 422
(9) Shares of no-load money market mutual funds consisting 425
exclusively of obligations described in division (B)(1) or (2) of
this section and repurchase agreements secured by such 426
obligations; 427
(10) A SURETY BOND ISSUED BY A CORPORATE SURETY LICENSED BY 429
THE STATE AND AUTHORIZED TO ISSUE SURETY BONDS IN THIS STATE 430
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PURSUANT TO CHAPTER 3929. OF THE REVISED CODE. 431
(C) If the public depository fails to pay over any part of 433
the public deposit made therein as provided by law, the treasurer 434
shall sell at public sale any of the bonds or other securities 435
deposited with the treasurer pursuant to this section or section 436
131.09 of the Revised Code, or shall draw on any letter of credit 437
to the extent of such failure to pay. Thirty days' notice of 438
such sale shall be given in a newspaper of general circulation at 439
Columbus, in the case of the treasurer of state, and at the 440
county seat of the county in which the office of the treasurer is 441
located, in the case of any other treasurer. When a sale of 442
bonds or other securities has been so made and upon payment to 443
the treasurer of the purchase money, the treasurer shall transfer 444
such bonds or securities whereupon the absolute ownership of such 445
bonds or securities shall pass to the purchasers. Any surplus 446
remaining after deducting the amount due the state or subdivision 447
and expenses of sale shall be paid to the public depository. 448
(D) An institution designated as a public depository may, 450
by written notice to the treasurer, designate a qualified trustee 451
and deposit the eligible securities required by this section with 452
the trustee for safekeeping for the account of the treasurer and 453
the institution as a public depository, as their respective 454
rights to and interests in such securities under this section may 455
appear and be asserted by written notice to or demand upon the 456
trustee. In such case, the treasurer shall accept the written 457
receipt of the trustee describing the securities which have been 458
deposited with the trustee by the public depository, a copy of 459
which shall also be delivered to the public depository. 460
Thereupon all such securities so deposited with the trustee are 461
deemed to be pledged with the treasurer and to be deposited with 462
the treasurer, for all the purposes of this section. 463
(E) The governing board may make provisions for the 465
exchange and release of securities and the substitution of other 466
eligible securities therefor except where the public depository 467
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has deposited eligible securities with a trustee for safekeeping 468
as provided in this section. 469
(F) When the public depository has deposited eligible 471
securities described in division (B)(1) of this section with a 472
trustee for safekeeping, the public depository may at any time 473
substitute or exchange eligible securities described in division 474
(B)(1) of this section having a current market value equal to or 475
greater than the current market value of the securities then on 476
deposit and for which they are to be substituted or exchanged, 477
without specific authorization from any governing board, boards, 478
or treasurer of any such substitution or exchange. 479
(G) When the public depository has deposited eligible 481
securities described in divisions (B)(2) to (9) of this section 483
with a trustee for safekeeping, the public depository may at any
time substitute or exchange eligible securities having a current 484
market value equal to or greater than the current market value of 485
the securities then on deposit and for which they are to be 486
substituted or exchanged without specific authorization of any 487
governing board, boards, or treasurer of any such substitution or 488
exchange only if: 489
(1) The treasurer has authorized the public depository to 491
make such substitution or exchange on a continuing basis during a 492
specified period without prior approval of each substitution or 493
exchange. Such authorization may be effected by the treasurer 494
sending to the trustee a written notice stating that substitution 495
may be effected on a continuing basis during a specified period 496
which shall not extend beyond the end of the period of 497
designation during which the notice is given. The trustee may 498
rely upon such notice and upon the period of authorization stated 499
therein and upon the period of designation stated therein. 500
(2) No continuing authorization for substitution has been 502
given by the treasurer, the public depository notifies the 503
treasurer and the trustee of an intended substitution or 504
exchange, and the treasurer fails to object to the trustee as to 505
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the eligibility or market value of the securities being 506
substituted within ten calendar days after the date appearing on 507
the notice of proposed substitution. The notice to the treasurer 508
and to the trustee shall be given in writing and delivered 509
personally or by certified or registered mail with a return 510
receipt requested. The trustee may assume in any case that the 511
notice has been delivered to the treasurer. In order for 512
objections of the treasurer to be effective, receipt of the 513
objections must be acknowledged in writing by the trustee. 514
(3) The treasurer gives written authorization for a 516
substitution or exchange of specific securities. 517
(H) The public depository shall notify any governing 519
board, boards, or treasurer of any such substitution or exchange 520
under division (G)(1) or (2) of this section. Upon request from 521
the treasurer, the trustee shall furnish a statement of the 522
securities pledged against such public deposits. 523
(I) Any federal reserve bank or branch thereof located in 525
this state, without compliance with Chapter 1111. of the Revised 526
Code and without becoming subject to any other law of this state 529
relative to the exercise by corporations of trust powers 530
generally, is qualified to act as trustee for the safekeeping of 531
securities, under this section. Any institution mentioned in 532
section 135.03 of the Revised Code that holds a certificate of 533
qualification issued by the superintendent of financial 534
institutions or any institution complying with sections 1111.04,
1111.05, and 1111.06 of the Revised Code, is qualified to act as 536
trustee for the safekeeping of securities, other than those 537
belonging to itself, under this section. Upon application to the 538
superintendent in writing by any such institution, the
superintendent shall investigate the applicant and ascertain 540
whether or not it has been authorized to execute and accept 541
trusts in this state and has safe and adequate vaults and 542
efficient supervision thereof for the storage and safekeeping 543
within this state of such securities. If the superintendent 544
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finds that the applicant has been so authorized and does have 545
such vaults and supervision thereof, the superintendent shall 546
approve the application and issue a certificate to that effect, 547
the original or any certified copy of which shall be conclusive 548
evidence that the institution therein named is qualified to act 549
as trustee for the purposes of this section with respect to 550
securities other than those belonging to itself.
Notwithstanding the fact that a public depository is 552
required to pledge eligible securities in certain amounts to 553
secure deposits of public moneys, a trustee shall have no duty or 554
obligation to determine the eligibility, market value, or face 555
value of any securities deposited with the trustee by a public 556
depository. This applies in all situations including, without 557
limitation, a substitution or exchange of securities. 558
Any charges or compensation of a designated trustee for 560
acting as such under this section shall be paid by the public 561
depository and in no event shall be chargeable to the state or 562
the subdivision or to the treasurer or to any officer of the 563
state or subdivision. Such THE charges or compensation shall not 565
be a lien or charge upon the securities deposited for safekeeping 566
prior or superior to the rights to and interests in such 567
securities of the state or the subdivision or of the treasurer. 568
The treasurer and the treasurer's bonders or surety shall be 570
relieved from any liability to the state or the subdivision or to
the public depository for the loss or destruction of any 571
securities deposited with a qualified trustee pursuant to this 572
section.
Sec. 135.181. (A) As used in this section: 581
(1) "Public depository" means that term as defined in 583
section 135.01 of the Revised Code, but also means an institution 584
which receives or holds any public deposits as defined in section 585
135.31 of the Revised Code. 586
(2) "Public deposits," "public moneys," and "treasurer" 588
mean those terms as defined in section 135.01 of the Revised 589
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Code, but also have the same meanings as are set forth in section 590
135.31 of the Revised Code. 591
(3) "Subdivision" means that term as defined in section 593
135.01 of the Revised Code, but also includes a county. 594
(B) In lieu of the pledging requirements prescribed in 596
sections 135.18 and 135.37 of the Revised Code, an institution 597
designated as a public depository at its option may pledge a 598
single pool of eligible securities to secure the repayment of all 599
public moneys deposited in the institution and not otherwise 600
secured pursuant to law, provided that at all times the total 601
value of the securities so pledged, based on the valuations 602
prescribed in division (C) of this section, is at least equal to 603
one hundred ten FIVE per cent of the total amount of all public 604
deposits to be secured by the pooled securities, including the 605
portion of such deposits covered by any federal deposit 606
insurance. Each such institution shall carry in its accounting 607
records at all times a general ledger or other appropriate 608
account of the total amount of all public deposits to be secured 609
by the pool, as determined at the opening of business each day, 610
and the total value of securities pledged to secure such 611
deposits. 612
(C) The following securities, at the specified valuations, 614
DESCRIBED IN DIVISION (B) OF SECTION 135.18 OF THE REVISED CODE 615
shall be eligible as collateral for the purposes of division (B) 616
of this section, provided no such securities pledged as 617
collateral are at any time in default as to either principal or 618
interest: 619
(1) Obligations of or fully insured or fully guaranteed by 621
the United States or any federal government agency or 622
instrumentality: at face value; 623
(2) Obligations partially insured or partially guaranteed 625
by any federal government agency or instrumentality: at face 626
value;
(3) Obligations of or fully guaranteed by the federal 628
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national mortgage association, federal home loan mortgage 629
corporation, federal farm, credit bank, or student loan marketing 630
association: at face value; 631
(4) Obligations of any state, county, municipal 633
corporation, or other legally constituted authority of any state, 634
or any instrumentality of any state, county, municipal 635
corporation, or other authority, which are secured as to the 636
payment of principal and interest by the holding in escrow of 637
obligations of the United States for which the full faith and 638
credit of the United States is pledged: at face value; 639
(5) Obligations of this state, or any county or other 641
legally constituted authority of this state, or any 642
instrumentality of this state, or such county or other authority: 643
at face value; 644
(6) Obligations of any other state: at ninety per cent of 646
face value; 647
(7) Obligations of any county, municipal corporation, or 649
other legally constituted authority of any other state, or any 650
instrumentality of such county, municipal corporation, or other 651
authority: at eighty per cent of face value; 652
(8) Notes representing loans made to persons attending or 654
planning to attend eligible institutions of education and to 655
their parents, and insured or guaranteed by the United States or 656
any agency, department, or other instrumentality thereof: at 657
face value;
(9) Any other obligations the treasurer of state approves: 659
at the percentage of face value the treasurer of state 660
prescribes;
(10) Shares of no-load money market mutual funds 662
consisting exclusively of obligations described in division 663
(C)(1), (2), or (3) of this section and repurchase agreements 664
secured by such obligations: at face value. 665
(D) The state and each subdivision shall have an undivided 667
security interest in the pool of securities pledged by a public 668
18
depository pursuant to division (B) of this section in the 669
proportion that the total amount of the state's or subdivision's 670
public moneys secured by the pool bears to the total amount of 671
public deposits so secured. 672
(E) An institution designated as a public depository shall 674
designate a qualified trustee and deposit with the trustee for 675
safekeeping the eligible securities pledged pursuant to division 676
(B) of this section. The institution shall give written notice 677
of the qualified trustee to any treasurer or treasurers 678
depositing public moneys for which such securities are pledged. 679
The treasurer shall accept the written receipt of the trustee 680
describing the pool of securities so deposited by the depository, 681
a copy of which also shall be delivered to the depository. 682
(F) Any federal reserve bank or branch thereof located in 684
this state, without compliance with Chapter 1111. of the Revised 685
Code and without becoming subject to any other law of this state 688
relative to the exercise by corporations of trust powers 689
generally, is qualified to act as trustee for the safekeeping of 690
securities, under this section. Any institution mentioned in 691
section 135.03 or 135.32 of the Revised Code which holds a
certificate of qualification issued by the superintendent of 692
financial institutions or any institution complying with sections 694
1111.04, 1111.05, and 1111.06 of the Revised Code is qualified to 695
act as trustee for the safekeeping of securities under this 696
section, other than those belonging to itself or to an affiliate 697
as defined in division (A) of section 1101.01 of the Revised 698
Code. Upon application to the superintendent in writing by any 699
such institution, the superintendent shall investigate the 701
applicant and ascertain whether or not it has been authorized to 702
execute and accept trusts in this state and has safe and adequate 703
vaults and efficient supervision thereof for the storage and 704
safekeeping of such securities. If the superintendent finds that 705
the applicant has been so authorized and does have such vaults 706
and supervision thereof, the superintendent shall approve the 707
19
application and issue a certificate to that effect, the original 709
or any certified copy of which shall be conclusive evidence that 710
the institution named therein is qualified to act as trustee for 711
the purposes of this section with respect to securities other 712
than those belonging to itself or to an affiliate. 713
(G) The public depository at any time may substitute, 715
exchange, or release eligible securities deposited with a 716
qualified trustee pursuant to this section, provided that such 717
substitution, exchange, or release does not reduce the total 718
value of the securities, based on the valuations prescribed in 719
division (C) of this section, to an amount that is less than one 720
hundred ten FIVE per cent of the total amount of public deposits 721
as determined pursuant to division (B) of this section. 723
(H) Notwithstanding the fact that a public depository is 725
required to pledge eligible securities in certain amounts to 726
secure deposits of public moneys, a trustee shall have no duty or 727
obligation to determine the eligibility, market value, or face 728
value of any securities deposited with the trustee by a public 729
depository. This applies in all situations including, but not 730
limited to, a substitution or exchange of securities, but 731
excluding those situations effectuated by division (I) of this 732
section in which the trustee is required to determine face and 733
market value. 734
(I) If the public depository fails to pay over any part of 736
the public deposits made therein as provided by law and secured 737
pursuant to division (B) of this section, the treasurer shall 738
give written notice of this failure to the qualified trustee 739
holding the pool of securities pledged against public moneys 740
deposited in the depository, and at the same time shall send a 741
copy of this notice to the depository. Upon receipt of such 742
notice, the trustee shall transfer to the treasurer for public 743
sale such of the pooled securities as may be necessary to produce 744
an amount equal to the deposits made by the treasurer and not 745
paid over, less the portion of such deposits covered by any 746
20
federal deposit insurance, plus any accrued interest due on such 747
deposits; however, such THE amount shall not exceed the state's 748
or subdivision's proportional security interest in the market 750
value of the pool as of the date of the depository's failure to 751
pay over the deposits, as such interest and value are determined 752
by the trustee. The treasurer shall sell at public sale any of 753
the bonds or other securities so transferred. Thirty days' 754
notice of such sale shall be given in a newspaper of general 755
circulation at Columbus, in the case of the treasurer of state, 756
and at the county seat of the county in which the office of the 757
treasurer is located, in the case of any other treasurer. When a 758
sale of bonds or other securities has been so made and upon 759
payment to the treasurer of the purchase money, the treasurer 760
shall transfer such bonds or securities whereupon the absolute 761
ownership of such bonds or securities shall pass to the 762
purchasers. Any surplus after deducting the amount due the state 763
or subdivision and expenses of sale shall be paid to the public 764
depository.
(J) Any charges or compensation of a designated trustee 766
for acting as such under this section shall be paid by the public 767
depository and in no event shall be chargeable to the state or 768
subdivision or to the treasurer or to any officer of the state or 769
subdivision. Such THE charges or compensation shall not be a 770
lien or charge upon the securities deposited for safekeeping 772
prior or superior to the rights to and interests in such 773
securities of the state or subdivision or of the treasurer. The 774
treasurer and the treasurer's bonders or surety shall be relieved 775
from any liability to the state or subdivision or to the public 776
depository for the loss or destruction of any securities 777
deposited with a qualified trustee pursuant to this section. 778
(K) In lieu of placing its unqualified endorsement on each 780
security, a public depository pledging securities pursuant to 781
division (B) of this section that are not negotiable without its 782
endorsement or assignment may furnish to the qualified trustee 783
21
holding the securities an appropriate resolution and irrevocable 784
power of attorney authorizing the trustee to assign the 785
securities. The resolution and power of attorney shall conform 786
to such terms and conditions as the trustee prescribes. 787
(L) Upon request of a treasurer no more often than four 789
times per year, a public depository shall report the amount of 790
public moneys deposited by the treasurer and secured pursuant to 791
division (B) of this section, and the total value, based on the 792
valuations prescribed in division (C) of this section, of the 793
pool of securities pledged to secure public moneys held by the 794
depository, including those deposited by the treasurer. Upon 795
request of a treasurer no more often than four times per year, a 796
qualified trustee shall report such THE total value of the pool 797
of securities deposited with it by the depository and shall 799
provide an itemized list of the securities in the pool. These 800
reports shall be made as of the date the treasurer specifies. 801
Sec. 135.33. (A) The board of county commissioners shall 810
meet every two FOUR years in the month next preceding the date of 812
the expiration of its current period of designation for the 813
purpose of designating its public depositories of active moneys 814
for the next succeeding two-year FOUR-YEAR period commencing on 815
the date of expiration of the preceding period. 817
At least sixty days before such THE meeting, the county 819
treasurer shall submit to the board an estimate of the aggregate 820
amount of public moneys that might be available for deposit as 821
active moneys at any one time during the next two-year FOUR-YEAR 822
period. Upon receipt of such estimate, the board shall 823
immediately notify all eligible institutions that might desire to 824
be designated as such public depositories of the date on which 825
the designation is to be made; the amount that has been estimated 826
to be available for deposit; and the date fixed as the last date 827
on which applications may be submitted, that shall not be more 828
than thirty days or less than ten days prior to the date set for 829
the meeting designating public depositories. 830
22
(B) Any eligible institution described in division (A) of 832
section 135.32 of the Revised Code that has an office located 833
within the territorial limits of the county is eligible to become 834
a public depository of the active moneys of the county. Each 835
eligible institution desiring to be a public depository of such 836
active moneys shall, not more than thirty days or less than ten 837
days prior to the date fixed by this section, make application 838
therefor in writing to the board of county commissioners. Such 839
THE application may specify the maximum amount of such public 840
moneys that the applicant desires to receive and have on deposit 841
at any time during the period covered by the designation. Each 842
application shall be accompanied by a financial statement of the 843
applicant, under oath of its cashier, treasurer, or other officer 844
as of the date of its latest report to the superintendent of 845
banks or comptroller of the currency, and adjusted to show any 846
changes therein prior to the date of the application, that shall 847
include a statement of its public and nonpublic deposits. 848
(C) The board of county commissioners, upon recommendation 850
of the treasurer, shall designate, by resolution, one or more 851
eligible institutions as public depositories for active moneys. 852
In case the aggregate amount of active moneys applied for by 853
institutions within the county is less than the amount estimated 854
to be available for deposit, the board may designate as a public 855
depository one or more eligible institutions that are 856
conveniently located. The original resolution of designation 857
shall be certified to the treasurer and any institution 858
designated as a public depository. 859
(D) No service charge shall be made against any deposit of 861
active moneys, or collected or paid, unless such service charge 862
is the same as is customarily imposed by institutions receiving 863
money on deposit subject to check, in which event the charge may 864
be paid. 865
(E) Notwithstanding division (C) of this section, the 867
board of county commissioners may authorize, by resolution, the 868
23
treasurer to deposit money necessary to pay the principal and 869
interest on bonds and notes, and any fees incident thereto, in 870
any bank within this state. 871
Moneys so deposited shall be transferred by the treasurer 873
according to the terms of the agreement with the bank but shall 874
remain as public moneys until such time as they are actually paid 875
out by the bank. Until such time as payments become due and 876
payable on such principal or interest, the bank shall invest any 877
moneys in the account in interest-bearing obligations at the 878
highest, reasonable rate of interest obtainable. 879
So long as moneys remain in the account, the bank shall 881
deliver to the treasurer, at the end of each month, a statement 882
showing an accounting of all activities in the account during the 883
preceding month including, but not limited to, all payments made, 884
all interest earned, and the beginning and ending balances, 885
together with any coupons redeemed since the preceding statement 886
was issued. 887
Sec. 135.35. (A) The investing authority shall deposit or 896
invest any part or all of the county's inactive moneys and shall 897
invest all of the money in the county library and local 898
government support fund when required by section 135.352 of the 899
Revised Code. The following classifications of securities and 900
obligations are eligible for such deposit or investment: 901
(1) United States treasury bills, notes, bonds, or any 903
other obligation or security issued by the United States treasury 904
or any other obligation guaranteed as to principal or interest by 905
the United States.
Nothing in the classification of eligible securities and 907
obligations set forth in division (A)(1) of this section or in 908
the classifications of eligible securities and obligations set 909
forth in divisions (A)(2) to (9) of this section shall be 910
construed to authorize any investment in stripped principal or 911
interest obligations of such eligible securities and obligations.
(2) Bonds, notes, debentures, or any other obligations or 913
24
securities issued by any federal government agency or 914
instrumentality, including but not limited to, the federal 915
national mortgage association, federal home loan bank, federal 916
farm credit bank, federal home loan mortgage corporation, 917
government national mortgage association, and student loan 918
marketing association. All federal agency securities shall be 919
direct issuances of federal government agencies or
instrumentalities. 920
(3) Time certificates of deposit or savings or deposit 922
accounts, including, but not limited to, passbook accounts, in 923
any eligible institution mentioned in section 135.32 of the 924
Revised Code; 925
(4) Bonds and other obligations of this state or the 927
political subdivisions of this state, provided that such 928
political subdivisions are located wholly or partly within the 929
same county as the investing authority;
(5) No-load money market mutual funds consisting 931
exclusively of obligations described in division (A)(1) or (2) of 932
this section and repurchase agreements secured by such 933
obligations, provided that investments in securities described in 935
this division are made only through eligible institutions
mentioned in section 135.32 of the Revised Code; 936
(6) The Ohio subdivision's fund as provided in section 938
135.45 of the Revised Code.; 939
(7) Securities lending agreements with any eligible 941
institution mentioned in section 135.32 of the Revised Code that 942
is a member of the federal reserve system or federal home loan 943
bank, under the terms of which agreements the investing authority 945
lends securities and the eligible institution agrees to 946
simultaneously exchange either securities described in division
(A)(1) or (2) of this section or cash or both securities and 947
cash, equal value for equal value; 948
(8) Commercial paper issued by any corporation 950
incorporated under the laws of the United States or a state if 951
25
both of the following conditions apply: 952
(a) Two nationally recognized rating agencies rank the 954
commercial paper in either of their two highest categories; 955
(b) The total amount invested in commercial paper at any 957
time does not exceed five per cent of the county's total average 959
portfolio, as determined and calculated by the investing 960
authority.
(9) Bankers acceptances, if the following conditions are 962
met:
(a) The acceptances mature in two hundred seventy days or 964
fewer from the date of settlement; 965
(b) The acceptances are eligible for purchase by the 967
federal reserve system; 968
(c) The total amount invested in bankers acceptances at 970
any time does not exceed ten per cent of the county's total 971
average portfolio, as determined and calculated by the investing 972
authority.
(B) Nothing in the classifications of eligible obligations 974
and securities set forth in divisions (A)(1) to (9) of this 975
section shall be construed to authorize investment in a 976
derivative, and no investing authority shall invest any county 977
inactive moneys or any moneys in a county library and local 978
government support fund in a derivative. For purposes of this 979
division, "derivative" means a financial instrument or contract 980
or obligation whose value or return is based upon or linked to
another asset or index, or both, separate from the financial 981
instrument, contract, or obligation itself. Any security, 982
obligation, trust account, or other instrument that is created 983
from an issue of the United States treasury or is created from an 984
obligation of a federal agency or instrumentality or is created 985
from both is considered a derivative instrument. An eligible 986
investment described in this section with a variable interest 987
rate payment, based upon a single interest payment or single
index comprised of other eligible investments provided for in 988
26
division (A)(1) or (2) of this section, is not a derivative, 989
provided that such variable rate investment has a maximum 990
maturity of two years.
(C) Any EXCEPT AS PROVIDED IN DIVISION (D) OF THIS 992
SECTION, ANY investment made pursuant to this section must mature 993
within five years from the date of settlement, unless the 995
investment is matched to a specific obligation or debt of the 996
county, and the investment is specifically approved by the 997
investment advisory committee. 998
(D) The investing authority may also enter into a written 1,000
repurchase agreement with any eligible institution mentioned in 1,002
section 135.32 of the Revised Code or any eligible securities
dealer pursuant to division (J) of this section, under the terms 1,003
of which agreement the investing authority purchases and the 1,004
eligible institution or dealer agrees unconditionally to 1,006
repurchase any of the securities listed in division (A)(1) or (2) 1,007
DIVISIONS (B)(1) TO (5), EXCEPT LETTERS OF CREDIT DESCRIBED IN 1,008
DIVISION (B)(2), of this section 135.18 OF THE REVISED CODE. The 1,009
market value of securities subject to an overnight WRITTEN 1,010
repurchase agreement must exceed the principal value of the 1,012
overnight WRITTEN repurchase agreement by at least two per cent. 1,014
A term WRITTEN repurchase agreement must exceed the principal 1,015
value of the overnight WRITTEN repurchase agreement, by at least 1,017
two per cent. A term WRITTEN repurchase agreement shall not 1,020
exceed thirty days, and the market value of securities subject to 1,021
a term WRITTEN repurchase agreement must exceed the principal 1,023
value of the term WRITTEN repurchase agreement by at least two 1,024
per cent and be marked to market daily. All securities purchased 1,025
pursuant to this division shall be delivered into the custody of 1,027
the investing authority or the qualified custodian of the
investing authority or an agent designated by the investing 1,028
authority. A WRITTEN repurchase agreement with an eligible 1,030
securities dealer shall be transacted on a delivery versus 1,031
payment basis. The agreement shall contain the requirement that 1,032
27
for each transaction pursuant to the agreement the participating 1,033
institution shall provide all of the following information: 1,034
(1) The par value of the securities; 1,036
(2) The type, rate, and maturity date of the securities; 1,038
(3) A numerical identifier generally accepted in the 1,040
securities industry that designates the securities. 1,041
No investing authority shall enter into a written 1,043
repurchase agreement under the terms of which the investing 1,044
authority agrees to sell securities owned by the county to a 1,046
purchaser and agrees with that purchaser to unconditionally
repurchase those securities. 1,047
(E) No investing authority shall make an investment under 1,050
this section, unless the investing authority, at the time of
making the investment, reasonably expects that the investment can 1,051
be held until its maturity. The investing authority's written 1,052
investment policy shall specify the conditions under which an 1,053
investment may be redeemed or sold prior to maturity. 1,054
(F) No investing authority shall pay a county's inactive 1,056
moneys or moneys of a county library and local government support 1,057
fund into a fund established by another subdivision, treasurer, 1,058
governing board, or investing authority, if that fund was 1,059
established by the subdivision, treasurer, governing board, or 1,060
investing authority for the purpose of investing or depositing 1,061
the public moneys of other subdivisions. This division does not
apply to the payment of public moneys into either of the 1,062
following:
(1) The Ohio subdivision's fund pursuant to division 1,064
(A)(6) of this section;
(2) A fund created solely for the purpose of acquiring, 1,066
constructing, owning, leasing, or operating municipal utilities 1,067
pursuant to the authority provided under section 715.02 of the 1,068
Revised Code or Section 4 of Article XVIII, Ohio Constitution. 1,069
For purposes of division (F) of this section, "subdivision" 1,071
includes a county. 1,072
28
(G) The use of leverage, in which the county uses its 1,074
current investment assets as collateral for the purpose of 1,075
purchasing other assets, is prohibited. The issuance of taxable 1,076
notes for the purpose of arbitrage is prohibited. Contracting to 1,077
sell securities not owned by the county, for the purpose of 1,078
purchasing such securities on the speculation that bond prices
will decline, is prohibited. 1,079
(H) Any securities, certificates of deposit, deposit 1,081
accounts, or any other documents evidencing deposits or 1,082
investments made under authority of this section shall be issued 1,083
in the name of the county with the county treasurer or investing 1,084
authority as the designated payee. If any such deposits or 1,085
investments are registrable either as to principal or interest, 1,086
or both, they shall be registered in the name of the treasurer. 1,087
(I) The investing authority shall be responsible for the 1,089
safekeeping of all documents evidencing a deposit or investment 1,090
acquired under this section including, but not limited to, 1,091
safekeeping receipts evidencing securities deposited with a 1,092
qualified trustee, as provided in section 135.37 of the Revised 1,093
Code, and documents confirming the purchase of securities under 1,094
any repurchase agreement under this section shall be deposited 1,095
with a qualified trustee, provided, however, that the qualified 1,096
trustee shall be required to report to the investing authority, 1,097
auditor of state, or an authorized outside auditor at any time 1,098
upon request as to the identity, market value, and location of 1,099
the document evidencing each security, and that if the 1,100
participating institution is a designated depository of the 1,101
county for the current period of designation, the securities that 1,102
are the subject of the repurchase agreement may be delivered to 1,103
the treasurer or held in trust by the participating institution 1,104
on behalf of the investing authority. 1,105
Upon the expiration of the term of office of an investing 1,107
authority or in the event of a vacancy in the office for any 1,108
reason, the officer or the officer's legal representative shall 1,110
29
transfer and deliver to the officer's successor all documents
mentioned in this division for which the officer has been 1,111
responsible for safekeeping. For all such documents transferred 1,113
and delivered, such officer shall be credited with, and the 1,114
officer's successor shall be charged with, the amount of moneys 1,115
so evidenced by such documents.
(J)(1) All investments, except for investments in 1,117
securities described in divisions (A)(5) and (6) of this section, 1,119
shall be made only through a member of the national association 1,120
of securities dealers, through a bank, savings bank, or savings 1,121
and loan association regulated by the superintendent of financial 1,123
institutions, or through an institution regulated by the 1,124
comptroller of the currency, federal deposit insurance 1,125
corporation, or board of governors of the federal reserve system. 1,126
(2) Payment for investments shall be made only upon the 1,128
delivery of securities representing such investments to the 1,130
treasurer, investing authority, or qualified trustee. If the 1,131
securities transferred are not represented by a certificate, 1,132
payment shall be made only upon receipt of confirmation of 1,133
transfer from the custodian by the treasurer, governing board, or 1,134
qualified trustee.
(K)(1) Except as otherwise provided in division (K)(2) of 1,136
this section, no investing authority shall make an investment or 1,137
deposit under this section, unless there is on file with the 1,138
auditor of state a written investment policy approved by the 1,139
investing authority. The policy shall require that all entities 1,140
conducting investment business with the investment authority 1,141
shall sign the investment policy of that investment authority.
All brokers, dealers, and financial institutions, described in 1,142
division (J)(1) of this section, initiating transactions with the 1,144
investment authority by giving advice or making investment 1,145
recommendations shall sign the investment authority's investment 1,146
policy thereby acknowledging their agreement to abide by the
policy's contents. All brokers, dealers, and financial 1,147
30
institutions, described in division (J)(1) of this section, 1,148
executing transactions initiated by the investment authority, 1,149
having read the policy's contents, shall sign the investment 1,150
policy thereby acknowledging their comprehension and receipt.
(2) If a written investment policy described in division 1,152
(K)(1) of this section is not filed on behalf of the county with 1,153
the auditor of state, the investing authority of that county 1,154
shall invest the county's inactive moneys and moneys of the 1,155
county library and local government support fund only in time 1,156
certificates of deposits or savings or deposit accounts pursuant 1,157
to division (A)(3) of this section or the Ohio subdivision's fund 1,158
pursuant to division (A)(6) of this section.
(L)(1) The investing authority shall establish and 1,160
maintain an inventory of all obligations and securities acquired 1,161
by the investing authority pursuant to this section. The 1,162
inventory shall include a description of each obligation or 1,163
security, including type, cost, par value, maturity date, 1,164
settlement date, and any coupon rate.
(2) The investing authority shall also keep a complete 1,166
record of all purchases and sales of the obligations and 1,167
securities made pursuant to this section. 1,168
(3) The investing authority shall maintain a monthly 1,170
portfolio report and issue a quarterly investment report 1,171
describing such investments to the county investment advisory 1,172
committee, detailing the current inventory of all obligations and 1,173
securities, all transactions during the month that affected the 1,174
inventory, any income received from the obligations and
securities, and any investment expenses paid, and stating the 1,175
names of any persons effecting transactions on behalf of the 1,176
investing authority.
(4) The monthly portfolio report and the quarterly 1,178
investment report shall be public records and available for 1,179
inspection under section 149.43 of the Revised Code.
(5) The inventory, the monthly portfolio report, and the 1,181
31
quarterly investment report shall be on standard forms approved 1,182
by the auditor of state and shall be filed with the board of 1,183
county commissioners.
(M) An investing authority may enter into a written 1,186
investment or deposit agreement that includes a provision under 1,187
which the parties agree to submit to nonbinding arbitration to 1,188
settle any controversy that may arise out of the agreement, 1,189
including any controversy pertaining to losses of public moneys 1,190
resulting from investment or deposit. The arbitration provision 1,191
shall be set forth entirely in the agreement, and the agreement 1,192
shall include a conspicuous notice to the parties that any party 1,194
to the arbitration may apply to the court of common pleas of the 1,195
county in which the arbitration was held for an order to vacate,
modify, or correct the award. Any such party may also apply to 1,196
the court for an order to change venue to a court of common pleas 1,197
located more than one hundred miles from the county in which the 1,198
investing authority is located.
For purposes of this division, "investment or deposit 1,200
agreement" means any agreement between an investing authority and 1,201
a person, under which agreement the person agrees to invest, 1,202
deposit, or otherwise manage, on behalf of the investing 1,203
authority, a county's inactive moneys or moneys in a county
library and local government support fund, or agrees to provide 1,204
investment advice to the investing authority. 1,205
(N) An investment held in the county portfolio on the 1,207
effective date of this amendment SEPTEMBER 27, 1996, that was a 1,209
legal investment under the law as it existed before the effective 1,210
date of this amendment SEPTEMBER 27, 1996, may be held until 1,211
maturity, or if the investment does not have a maturity date the 1,212
investment may be held until five years from the effective date 1,213
of this amendment SEPTEMBER 27, 1996, regardless of whether the 1,215
investment would qualify as a legal investment under the terms of
this section as amended. 1,216
Sec. 135.37. (A) Any institution described in section 1,225
32
135.32 of the Revised Code shall, at the time it receives a 1,226
deposit of public moneys under section 135.33 or 135.35 of the 1,227
Revised Code, pledge to and deposit with the investing authority, 1,228
as security for the repayment of all public moneys to be 1,229
deposited, eligible securities of aggregate market value equal to 1,230
or in excess of the amount of public moneys to be at the time so 1,231
deposited. Any securities listed in division (B) of section 1,232
135.18 of the Revised Code are eligible for such purpose. The 1,233
collateral so pledged or deposited may be in an amount that when 1,234
added to the portion of the deposit insured by the federal 1,235
deposit insurance corporation or any other agency or 1,236
instrumentality of the federal government will, in the aggregate, 1,237
equal or exceed the amount of public moneys so deposited; 1,238
provided that, when an investment of inactive moneys consists of 1,239
the purchase of one or more of the type of securities listed in 1,240
division (A)(1) or (2) of section 135.35 of the Revised Code, no 1,241
additional collateral need be pledged or deposited. 1,242
The investing authority also may require or accept surety 1,244
company bonds as collateral for public deposits, subject to the 1,245
provisions of divisions (A) to (E) of this section, and may 1,246
require that additional eligible securities be pledged or 1,247
deposited when depreciation occurs in the market value of any 1,248
securities pledged or deposited. 1,249
(B) The public depository may, at any time, provide for 1,251
the exchange or substitution of securities for other eligible 1,252
securities or the release of securities when the amount of public 1,253
moneys on deposit does not require that they be pledged or 1,254
deposited, by notifying the investing authority of its intent to 1,255
take such action. 1,256
Upon proper notification of the public depository's desire 1,258
for release of securities, the investing authority may sign a 1,259
release of such securities provided that the aggregate amount of 1,260
collateral remaining pledged or deposited meets the requirements 1,261
of divisions (A) to (E) of this section. 1,262
33
When a public depository desires to exchange or substitute 1,264
securities for other eligible securities, the investing authority 1,265
may release the securities pledged or deposited after the deposit 1,266
of other securities having a current market value equal to or 1,267
greater than the current market value of securities then on 1,268
deposit or after a safekeeping receipt has been received 1,269
evidencing the deposit and pledge of such securities. 1,270
(C) Upon request from the investing authority, the trustee 1,272
or the public depository shall furnish a statement of the 1,273
securities pledged against the public moneys deposited in the 1,274
public depository. 1,275
(D) If a public depository fails to pay over any part of 1,277
any public deposit made as provided by law, the investing 1,278
authority shall sell any pledged or deposited securities, as 1,279
prescribed in division (C) of section 135.18 of the Revised Code. 1,280
(E) A public depository may designate, in accordance with 1,282
the provisions of division (D) of section 135.18 of the Revised 1,283
Code, a trustee for the safekeeping of any pledged securities. 1,284
Such trustee shall be any bank or other institution eligible as a 1,285
trustee under division (I) of section 135.18 of the Revised Code, 1,286
except that, for the purposes of this section, a bank to which a 1,287
certificate of qualification is issued shall be an institution 1,288
mentioned in division (A) of section 135.32 of the Revised Code. 1,289
(F) In lieu of the pledging requirements prescribed in 1,291
divisions (A) to (E) of this section, an institution designated 1,292
as a public depository may pledge securities pursuant to section 1,293
135.181 of the Revised Code. 1,294
Sec. 321.16. (A) When a warrant drawn on him as THE 1,303
county treasurer by the county auditor is presented for payment, 1,306
if there is money in the county treasury or depository to the 1,307
credit of the fund on which it is drawn, and the warrant is
endorsed by the payee thereof, the treasurer shall redeem it by 1,308
payment of cash or by check on the depository. 1,309
(B) THE WARRANT, AND ALL INFORMATION RELATED TO THE 1,311
34
PRESENTMENT OF THE WARRANT, MAY BE PROVIDED ELECTRONICALLY TO THE 1,312
COUNTY TREASURER.
Sec. 321.17. When a warrant is presented to the county 1,321
treasurer for payment, and is not paid, for want of money 1,322
belonging to the particular fund on which it is drawn, the 1,323
treasurer shall indorse RECORD the warrant, "Not AS NOT paid for 1,324
want of funds," with the date of its presentation, and sign his 1,325
name to the warrant. Such THE warrant shall thereafter bear 1,327
interest at the rate of six per cent per annum YEAR. A 1,329
memorandum of all such warrants shall be kept by the treasurer in 1,330
a book for that purpose. 1,331
Section 2. That existing sections 135.14, 135.18, 135.181, 1,334
135.33, 135.35, 135.37, 321.16, and 321.17 of the Revised Code 1,335
are hereby repealed.