As Passed by the House                        1            

123rd General Assembly                                             4            

   Regular Session                           Sub. H. B. No. 473    5            

      1999-2000                                                    6            


     REPRESENTATIVES MYERS-SCHULER-ALLEN-JOLIVETTE-HARTNETT-       8            

    CLANCY-OLMAN-METZGER-DISTEL-EVANS-VERICH-MAIER-D. MILLER-      9            

 TIBERI-TERWILLEGER-MEAD-GOODMAN-CORBIN-WINKLER-PATTON-O'BRIEN-    10           

    WILSON-SALERNO-BUEHRER-HARRIS-CALVERT-WIDENER-BOYD-HOOPS-      11           

PETERSON-BARRETT-SULLIVAN-LOGAN-REDFERN-GRENDELL-BRADING- AUSTRIA  13           


_________________________________________________________________   14           

                          A   B I L L                                           

             To amend sections 9.37, 129.60, 135.12, 135.14,       16           

                135.18, 135.181, 135.33, 135.341, 135.35, 135.37,  18           

                307.55, 319.16, 321.15, 321.16, and 321.17 of the               

                Revised Code to modify the investment authority    20           

                of counties and political subdivisions relative                 

                to the types of investments made, the collateral   21           

                requirements applicable to the receipt of public   22           

                funds, and the investment of public funds in       24           

                repurchase agreements; to modify the designation   25           

                period of public depositories by the State Board   26           

                of Deposit, and by county commissioners, and the   27           

                designation authority of political subdivisions;                

                to authorize a political subdivision or a county   28           

                investment advisory committee to retain the        29           

                services of an investment advisor meeting certain               

                requirements; to modify investment recordkeeping   30           

                requirements of county treasurers and authorize    31           

                electronic presentment of warrant information to   32           

                a county treasurer; to permit county auditors to   34           

                issue, and county treasurers to redeem,                         

                electronic warrants authorizing direct deposit     35           

                for payment of county obligations in accordance    36           

                with rules adopted by the Auditor of State; and    37           

                to make related changes.                                        

                                                          2      


                                                                 
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF OHIO:        39           

      Section 1. That sections 9.37, 129.60, 135.12, 135.14,       41           

135.18, 135.181, 135.33, 135.341, 135.35, 135.37, 307.55, 319.16,  42           

321.15, 321.16, and 321.17 of the Revised Code be amended to read  44           

as follows:                                                                     

      Sec. 9.37.  (A)  As used in this section, "public official"  53           

means any elected or appointed officer, employee, or agent of the  54           

state, any state institution of higher education, any political    55           

subdivision, board, commission, bureau, or other public body       56           

established by law.  "State institution of higher education"       57           

means any state university or college as defined in division       58           

(A)(1) of section 3345.12 of the Revised Code, community college,  59           

state community college, university branch, or technical college.  60           

      (B)  Any EXCEPT AS PROVIDED IN DIVISION (F) OF THIS          62           

SECTION, ANY public official may make by direct deposit of funds   64           

by electronic transfer, if the payee provides a written                         

authorization designating a financial institution and an account   65           

number to which the payment is to be credited, any payment such    66           

public official is permitted or required by law in the             67           

performance of his OFFICIAL duties to make by issuing a check or   68           

warrant.                                                           69           

      (C)  Such public official may contract with a financial      71           

institution for the services necessary to make direct deposits     72           

and draw lump-sum checks or warrants payable to that institution   73           

in the amount of the payments to be transferred.                   74           

      (D)  Before making any direct deposit as authorized under    76           

this section, the public official shall ascertain that the         77           

account from which the payment is to be made contains sufficient   78           

funds to cover the amount of the payment.                          79           

      (E)  If the issuance of checks and warrants by a public      81           

official requires authorization by a governing board, commission,  82           

bureau, or other public body having jurisdiction over the public   83           

official, the public official may only make direct deposits and    84           

contracts under this section pursuant to a resolution of           85           

                                                          3      


                                                                 
authorization duly adopted by such governing board, commission,    86           

bureau, or other public body.                                      87           

      (F)  PURSUANT TO SECTIONS 307.55, 319.16, AND 321.15 OF THE  89           

REVISED CODE, A COUNTY AUDITOR MAY ISSUE, AND A COUNTY TREASURER   90           

MAY REDEEM, ELECTRONIC WARRANTS AUTHORIZING DIRECT DEPOSIT FOR     91           

PAYMENT OF COUNTY OBLIGATIONS IN ACCORDANCE WITH RULES ADOPTED BY  92           

THE AUDITOR OF STATE PURSUANT TO SECTION 117.20 OF THE REVISED     93           

CODE.                                                                           

      Sec. 129.60.  (A)  As used in sections 129.60 to 129.65 and  102          

135.12 of the Revised Code, "notes" include notes whether or not   103          

issued in anticipation of bonds.                                   104          

      The total debt created as evidenced by bonds and notes       106          

issued under Section 2h of Article VIII, Ohio Constitution, shall  107          

not exceed two hundred ninety million dollars.  No part of such    108          

debt shall be contracted after December 31, 1970.                  109          

      For the purposes of the certifications required by section   111          

129.63 of the Revised Code there need not be included in           112          

determining the amounts required to meet the payments of           113          

principal of bonds or notes issued pursuant to Section 2h of       114          

Article VIII, Ohio Constitution, and this section, the principal   115          

of notes which the commissioners of the sinking fund certify will  116          

be retired by the issuance of bonds or renewal notes.              117          

      (B)(1)  All bonds or notes shall mature at such time or      119          

times, not exceeding thirty years from the date the debt is first  120          

contracted, as may be fixed by the commissioners of the sinking    121          

fund in their resolution authorizing the issuance of such bonds    122          

or notes.                                                          123          

      (2)  The principal of all bonds or notes and the interest    125          

thereon shall be exempt from all taxes levied by the state or any  126          

taxing subdivision or district thereof.                            127          

      (3)  All bonds or notes shall pass as negotiable             129          

instruments, subject to any provisions for registration, and       130          

shall possess all the attributes thereof.                          131          

      (C)  Accrued interest received from the sale of bonds and    133          

                                                          4      


                                                                 
notes and the proceeds of bonds or notes issued to fund or refund  134          

bonds or notes shall be paid into the development bond retirement  135          

fund created by Section 2h of Article VIII, Ohio Constitution.     136          

      Sec. 135.12.  The (A)  BEGINNING IN 2000, THE state board    146          

of deposit shall meet on the third Monday of March JUNE in the     147          

odd-numbered EVEN-NUMBERED years for the purpose of designating    149          

the public depositories of the public moneys of the state, and at  150          

such meeting or any adjourned session thereof shall designate      151          

such public depositories and award the public moneys of the state  152          

to and among the public depositories so designated for the period  153          

of two years commencing on the first Monday of April JULY next     154          

following.                                                                      

      (B)  Each other governing board OTHER THAN THE STATE BOARD   157          

OF DEPOSIT shall meet every five years on the third Monday or      159          

such regularly scheduled meeting date of the month next preceding  160          

the date of the expiration of its designation of depositories for  161          

the purpose of designating the public depositories of the public   162          

moneys of the subdivision, and at such meeting or any adjourned    163          

session thereof, shall designate such public depositories and      164          

award the public moneys of the subdivision to and among the        165          

public depositories so designated for the period of five years     166          

commencing on the date of the expiration of the next preceding     167          

designation.  Such THE designation and award shall be made in      168          

duplicate; one copy shall be retained by the governing board of    169          

the subdivision and one copy shall be certified to the treasurer.  170          

      (C)  If a governing board other than the state board of      172          

deposit determines, during a designation period, that a public     174          

depository designated under this section is insolvent or           175          

operating in an unsound or unsafe manner, the governing board may  176          

meet and designate a different public depository of the public     177          

moneys of the subdivision for the remainder of the designation                  

period.                                                                         

      (D)  IF A GOVERNING BOARD OTHER THAN THE STATE BOARD OF      179          

DEPOSIT DETERMINES DURING A DESIGNATION PERIOD THAT IT IS          180          

                                                          5      


                                                                 
NECESSARY AND IN THE SUBDIVISION'S BEST INTERESTS TO APPOINT       181          

ADDITIONAL DEPOSITORIES, THE GOVERNING BOARD MAY MEET AND          182          

DESIGNATE ONE OR MORE ADDITIONAL PUBLIC DEPOSITORIES OF THE                     

PUBLIC MONEYS OF THE SUBDIVISION FOR THE REMAINDER OF THE          183          

DESIGNATION PERIOD.                                                             

      (E)  Whenever, by amendment or enactment of any state or     185          

federal law or the amendment or adoption of any valid regulation   186          

thereunder, the terms of a designation or award, lawful at the     187          

beginning of any designation period, cease to be lawful during     189          

such period, and if such THE change of law or regulation           190          

requires, the designation period shall be limited so as not to     193          

extend beyond the date when such THAT change becomes effective.    194          

In such case, the proper governing board shall meet and designate  196          

the public depositories of the public moneys of the state or of    197          

the subdivision for the remainder of the designation period.       198          

      Sec. 135.14.  (A)  As used in this section, "treasurer"      207          

does not include the treasurer of state, and "governing board"     208          

does not include the state board of deposit.                       209          

      (B)  The treasurer or governing board may invest or deposit  211          

any part or all of the interim moneys.  The following              213          

classifications of obligations shall be eligible for such          214          

investment or deposit:                                                          

      (1)  United States treasury bills, notes, bonds, or any      216          

other obligation or security issued by the United States treasury  217          

or any other obligation guaranteed as to principal and interest    218          

by the United States.                                                           

      Nothing in the classification of eligible obligations set    220          

forth in division (B)(1) of this section or in the                 221          

classifications of eligible obligations set forth in divisions     222          

(B)(2) to (6)(7) of this section shall be construed to authorize   224          

any investment in stripped principal or interest obligations of    225          

such eligible obligations.                                                      

      (2)  Bonds, notes, debentures, or any other obligations or   227          

securities issued by any federal government agency or              228          

                                                          6      


                                                                 
instrumentality, including but not limited to, the federal         229          

national mortgage association, federal home loan bank, federal     230          

farm credit bank, federal home loan mortgage corporation,          231          

government national mortgage association, and student loan                      

marketing association.  All federal agency securities shall be     232          

direct issuances of federal government agencies or                 233          

instrumentalities.                                                              

      (3)  Interim deposits in the eligible institutions applying  235          

for interim moneys as provided in section 135.08 of the Revised    236          

Code.  The award of interim deposits shall be made in accordance   237          

with section 135.09 of the Revised Code and the treasurer or the   238          

governing board shall determine the periods for which such         239          

interim deposits are to be made and shall award such interim       240          

deposits for such periods, provided that any eligible institution  241          

receiving an interim deposit award may, upon notification that     242          

the award has been made, decline to accept the interim deposit in  243          

which event the award shall be made as though such institution     244          

had not applied for such interim deposit.                          245          

      (4)  Bonds and other obligations of this state;              247          

      (5)  No-load money market mutual funds consisting            249          

exclusively of obligations described in division (B)(1) or (2) of  251          

this section and repurchase agreements secured by such                          

obligations, provided that investments in securities described in  253          

this division are made only through eligible institutions                       

mentioned in section 135.03 of the Revised Code;                   254          

      (6)  The Ohio subdivision's fund as provided in section      256          

135.45 of the Revised Code;                                        257          

      (7)  UP TO TWENTY-FIVE PER CENT OF INTERIM MONEYS AVAILABLE  259          

FOR INVESTMENT IN EITHER OF THE FOLLOWING:                         260          

      (a)  COMMERCIAL PAPER NOTES ISSUED BY AN ENTITY THAT IS      262          

DEFINED IN DIVISION (D) OF SECTION 1705.01 OF THE REVISED CODE     263          

AND THAT HAS ASSETS EXCEEDING FIVE HUNDRED MILLION DOLLARS, TO     265          

WHICH NOTES ALL OF THE FOLLOWING APPLY:                            266          

      (i)  THE NOTES ARE RATED AT THE TIME OF PURCHASE IN THE      268          

                                                          7      


                                                                 
HIGHEST CLASSIFICATION ESTABLISHED BY AT LEAST TWO NATIONALLY      269          

RECOGNIZED STANDARD RATING SERVICES.                               270          

      (ii)  THE AGGREGATE VALUE OF THE NOTES DOES NOT EXCEED TEN   272          

PER CENT OF THE AGGREGATE VALUE OF THE OUTSTANDING COMMERCIAL      274          

PAPER OF THE ISSUING CORPORATION.                                  275          

      (iii)  THE NOTES MATURE NOT LATER THAN ONE HUNDRED EIGHTY    277          

DAYS AFTER PURCHASE.                                               279          

      (b)  BANKERS ACCEPTANCES OF BANKS THAT ARE INSURED BY THE    281          

FEDERAL DEPOSIT INSURANCE CORPORATION AND TO WHICH BOTH OF THE     282          

FOLLOWING APPLY:                                                   283          

      (i)  THE OBLIGATIONS ARE ELIGIBLE FOR PURCHASE BY THE        285          

FEDERAL RESERVE SYSTEM.                                            286          

      (ii)  THE OBLIGATIONS MATURE NOT LATER THAN ONE HUNDRED      288          

EIGHTY DAYS AFTER PURCHASE.                                        290          

      NO INVESTMENT SHALL BE MADE PURSUANT TO DIVISION (B)(7) OF   292          

THIS SECTION UNLESS THE TREASURER OR GOVERNING BOARD HAS           293          

COMPLETED ADDITIONAL TRAINING FOR MAKING THE INVESTMENTS           294          

AUTHORIZED BY DIVISION (B)(7) OF THIS SECTION.  THE TYPE AND       295          

AMOUNT OF ADDITIONAL TRAINING SHALL BE APPROVED BY THE AUDITOR OF  296          

STATE AND MAY BE CONDUCTED BY OR PROVIDED UNDER THE SUPERVISION    298          

OF THE AUDITOR OF STATE.                                                        

      (C)  Nothing in the classifications of eligible obligations  300          

set forth in divisions (B)(1) to (6)(7) of this section shall be   301          

construed to authorize any investment in a derivative, and no      303          

treasurer or governing board shall invest in a derivative.  For    304          

purposes of this division, "derivative" means a financial          305          

instrument or contract or obligation whose value or return is      306          

based upon or linked to another asset or index, or both, separate  307          

from the financial instrument, contract, or obligation itself.                  

Any security, obligation, trust account, or other instrument that  308          

is created from an issue of the United States treasury or is       309          

created from an obligation of a federal agency or instrumentality  310          

or is created from both is considered a derivative instrument.     311          

An eligible investment described in this section with a variable   312          

                                                          8      


                                                                 
interest rate payment, based upon a single interest payment or     313          

single index comprised of other eligible investments provided for  314          

in division (B)(1) or (2) of this section, is not a derivative,    315          

provided that such variable rate investment has a maximum                       

maturity of two years.                                             316          

      (D)  Any EXCEPT AS PROVIDED IN DIVISION (E) OF THIS          318          

SECTION, ANY investment made pursuant to this section must mature  319          

within five years from the date of settlement, unless the          320          

investment is matched to a specific obligation or debt of the      321          

subdivision.                                                       322          

      (E)  The treasurer or governing board may also enter into a  324          

written repurchase agreement with any eligible institution         325          

mentioned in section 135.03 of the Revised Code or any eligible    326          

dealer pursuant to division (M) of this section, under the terms   327          

of which agreement the treasurer or governing board purchases,     328          

and such institution or dealer agrees unconditionally to           329          

repurchase any of the securities listed in division DIVISIONS      330          

(B)(1) or (2) TO (5), EXCEPT LETTERS OF CREDIT DESCRIBED IN        331          

DIVISION (B)(2), of this section 135.18 OF THE REVISED CODE.  The  334          

market value of securities subject to an overnight WRITTEN                      

repurchase agreement must exceed the principal value of the        335          

overnight WRITTEN repurchase agreement by at least two per cent.   336          

A term WRITTEN repurchase agreement shall not exceed thirty days   338          

and the market value of securities subject to a term WRITTEN       339          

repurchase agreement must exceed the principal value of the term   340          

WRITTEN repurchase agreement by at least two per cent and be       341          

marked to market daily.  All securities purchased pursuant to      343          

this division shall be delivered into the custody of the                        

treasurer or governing board or an agent designated by the         344          

treasurer or governing board.  A WRITTEN repurchase agreement      345          

with an eligible securities dealer shall be transacted on a        347          

delivery versus payment basis.  The agreement shall contain the    348          

requirement that for each transaction pursuant to the agreement    349          

the participating institution or dealer shall provide all of the   350          

                                                          9      


                                                                 
following information:                                                          

      (1)  The par value of the securities;                        352          

      (2)  The type, rate, and maturity date of the securities;    354          

      (3)  A numerical identifier generally accepted in the        356          

securities industry that designates the securities.                357          

      No treasurer or governing board shall enter into a written   359          

repurchase agreement under the terms of which the treasurer or     360          

governing board agrees to sell securities owned by the             361          

subdivision to a purchaser and agrees with that purchaser to       362          

unconditionally repurchase those securities.                                    

      (F)  No treasurer or governing board shall make an           364          

investment under this section, unless the treasurer or governing   365          

board, at the time of making the investment, reasonably expects    366          

that the investment can be held until its maturity.                367          

      (G)  No treasurer or governing board shall pay interim       369          

moneys into a fund established by another subdivision, treasurer,  370          

governing board, or investing authority, if that fund was          371          

established for the purpose of investing the public moneys of      372          

other subdivisions.  This division does not apply to the payment   373          

of public moneys into either of the following:                                  

      (1)  The Ohio subdivision's fund pursuant to division        376          

(B)(6) of this section;                                                         

      (2)  A fund created solely for the purpose of acquiring,     378          

constructing, owning, leasing, or operating municipal utilities    379          

pursuant to the authority provided under section 715.02 of the     380          

Revised Code or Section 4 of Article XVIII, Ohio Constitution.     381          

      For purposes of division (G) of this section, "subdivision"  383          

includes a county.                                                 384          

      (H)  The use of leverage, in which the treasurer or          386          

governing board uses its current investment assets as collateral   387          

for the purpose of purchasing other assets, is prohibited.  The    388          

issuance of taxable notes for the purpose of arbitrage is          389          

prohibited.  Contracting to sell securities that have not yet      390          

been acquired by the treasurer or governing board, for the                      

                                                          10     


                                                                 
purpose of purchasing such securities on the speculation that      391          

bond prices will decline, is prohibited.                           392          

      (I)  Whenever, during a period of designation, the           394          

treasurer classifies public moneys as interim moneys, the          395          

treasurer shall notify the governing board of such action.  Such   396          

THE notification shall be given within thirty days after such      397          

classification and in the event the governing board does not       398          

concur in such classification or in the investments or deposits    399          

made under this section, the governing board may order the         400          

treasurer to sell or liquidate any of such investments or          401          

deposits, and any such order shall specifically describe the       402          

investments or deposits and fix the date upon which they are to    403          

be sold or liquidated.  Investments or deposits so ordered to be   404          

sold or liquidated shall be sold or liquidated for cash by the     405          

treasurer on the date fixed in such order at the then current      406          

market price.  Neither the treasurer nor the members of the board  407          

shall be held accountable for any loss occasioned by sales or      408          

liquidations of investments or deposits at prices lower than       409          

their cost.  Any loss or expense incurred in making such sales or  410          

liquidations is payable as other expenses of the treasurer's       411          

office.                                                                         

      (J)  If any investments or deposits purchased under the      413          

authority of this section are issuable to a designated payee or    414          

to the order of a designated payee, the name of the treasurer and  415          

the title of the treasurer's office shall be so designated.  If    416          

any such securities are registrable either as to principal or      417          

interest, or both, then such securities shall be registered in     418          

the name of the treasurer as such.                                 419          

      (K)  The treasurer is responsible for the safekeeping of     421          

all documents evidencing a deposit or investment acquired by the   422          

treasurer under this section.  Any securities may be deposited     423          

for safekeeping with a qualified trustee as provided in section    424          

135.18 of the Revised Code, except the delivery of securities      425          

acquired under any repurchase agreement under this section shall   426          

                                                          11     


                                                                 
be made to a qualified trustee, provided, however, that the        427          

qualified trustee shall be required to report to the treasurer,    428          

governing board, auditor of state, or an authorized outside        429          

auditor at any time upon request as to the identity, market        430          

value, and location of the document evidencing each security, and  431          

that if the participating institution is a designated depository   432          

of the subdivision for the current period of designation, the      433          

securities that are the subject of the repurchase agreement may    434          

be delivered to the treasurer or held in trust by the              435          

participating institution on behalf of the subdivision.  Interest  436          

earned on any investments or deposits authorized by this section   437          

shall be collected by the treasurer and credited by the treasurer  439          

to the proper fund of the subdivision.                                          

      Upon the expiration of the term of office of a treasurer or  441          

in the event of a vacancy in the office of treasurer by reason of  442          

death, resignation, removal from office, or otherwise, the         443          

treasurer or the treasurer's legal representative shall transfer   444          

and deliver to the treasurer's successor all documents evidencing  445          

a deposit or investment held by the treasurer.  For the            446          

investments and deposits so transferred and delivered, such        447          

treasurer shall be credited with and the treasurer's successor     448          

shall be charged with the amount of money held in such                          

investments and deposits.                                          449          

      (L)  Whenever investments or deposits acquired under this    451          

section mature and become due and payable, the treasurer shall     452          

present them for payment according to their tenor, and shall       453          

collect the moneys payable thereon.  The moneys so collected       454          

shall be treated as public moneys subject to sections 135.01 to    455          

135.21 of the Revised Code.                                        456          

      (M)(1)  All investments, except for investments in           458          

securities described in divisions (B)(5) and (6) of this section   459          

and for investments by a municipal corporation in the issues of    460          

such municipal corporation, shall be made only through a member    461          

of the national association of securities dealers, through a       462          

                                                          12     


                                                                 
bank, savings bank, or savings and loan association regulated by   463          

the superintendent of financial institutions, or through an        464          

institution regulated by the comptroller of the currency, federal  465          

deposit insurance corporation, or board of governors of the        466          

federal reserve system.                                                         

      (2)  Payment for investments shall be made only upon the     468          

delivery of securities representing such investments to the        469          

treasurer, governing board, or qualified trustee.  If the          470          

securities transferred are not represented by a certificate,       471          

payment shall be made only upon receipt of confirmation of         472          

transfer from the custodian by the treasurer, governing board, or  473          

qualified trustee.                                                 474          

      (N)(1)  IN MAKING INVESTMENTS AUTHORIZED BY THIS SECTION, A  476          

TREASURER OR GOVERNING BOARD MAY RETAIN THE SERVICES OF AN         478          

INVESTMENT ADVISOR, PROVIDED THE ADVISOR IS LICENSED BY THE        480          

DIVISION OF SECURITIES UNDER SECTION 1707.141 OF THE REVISED CODE  481          

OR IS REGISTERED WITH THE SECURITIES AND EXCHANGE COMMISSION, AND  483          

POSSESSES EXPERIENCE IN PUBLIC FUNDS INVESTMENT MANAGEMENT,        484          

SPECIFICALLY IN THE AREA OF STATE AND LOCAL GOVERNMENT INVESTMENT  485          

PORTFOLIOS, OR THE ADVISOR IS AN ELIGIBLE INSTITUTION MENTIONED    486          

IN SECTION 135.03 OF THE REVISED CODE.                             487          

      (O)(1)  Except as otherwise provided in divisions (N)(O)(2)  490          

and (3) of this section, no treasurer or governing board shall     491          

make an investment or deposit under this section, unless there is  493          

on file with the auditor of state a written investment policy      494          

approved by the treasurer or governing board.  The policy shall    495          

require that all entities conducting investment business with the  496          

treasurer or governing board shall sign the investment policy of   497          

that subdivision.  All brokers, dealers, and financial             498          

institutions, described in division (M)(1) of this section,        499          

initiating transactions with the treasurer or governing board by   500          

giving advice or making investment recommendations shall sign the  501          

treasurer's or governing board's investment policy thereby                      

acknowledging their agreement to abide by the policy's contents.   502          

                                                          13     


                                                                 
All brokers, dealers, and financial institutions, described in     503          

division (M)(1) of this section, executing transactions initiated  504          

by the treasurer or governing board, having read the policy's      505          

contents, shall sign the investment policy thereby acknowledging   506          

their comprehension and receipt.                                                

      (2)  If a written investment policy described in division    508          

(N)(O)(1) of this section is not filed on behalf of the            510          

subdivision with the auditor of state, the treasurer or governing  511          

board of that subdivision shall invest the subdivision's interim   512          

moneys only in interim deposits pursuant to division (B)(3) of     513          

this section or the Ohio subdivision's fund pursuant to division   514          

(B)(6) of this section.                                                         

      (3)  Divisions (N)(O)(1) and (2) of this section do not      516          

apply to a treasurer or governing board of a subdivision whose     518          

average annual portfolio of investments held pursuant to this      519          

section is one hundred thousand dollars or less, provided that     520          

the treasurer or governing board certifies, on a form prescribed   521          

by the auditor of state, that the treasurer or governing board     522          

will comply and is in compliance with the provisions of sections   523          

135.01 to 135.21 of the Revised Code.                              524          

      (O)(P)  A treasurer or governing board may enter into a      527          

written investment or deposit agreement that includes a provision  528          

under which the parties agree to submit to nonbinding arbitration  529          

to settle any controversy that may arise out of the agreement,     530          

including any controversy pertaining to losses of public moneys    531          

resulting from investment or deposit.  The arbitration provision   532          

shall be set forth entirely in the agreement, and the agreement    533          

shall include a conspicuous notice to the parties that any party   535          

to the arbitration may apply to the court of common pleas of the   536          

county in which the arbitration was held for an order to vacate,                

modify, or correct the award.  Any such party may also apply to    537          

the court for an order to change venue to a court of common pleas  538          

located more than one hundred miles from the county in which the   539          

treasurer or governing board is located.                           540          

                                                          14     


                                                                 
      For purposes of this division, "investment or deposit        542          

agreement" means any agreement between a treasurer or governing    543          

board and a person, under which agreement the person agrees to     544          

invest, deposit, or otherwise manage a subdivision's interim       545          

moneys on behalf of the treasurer or governing board, or agrees    546          

to provide investment advice to the treasurer or governing board.               

      (P)(Q)  An investment made by the treasurer or governing     548          

board pursuant to this section prior to the effective date of      549          

this amendment SEPTEMBER 27, 1996, that was a legal investment     551          

under the law as it existed before the effective date of this      553          

amendment SEPTEMBER 27, 1996, may be held until maturity, or if    554          

the investment does not have a maturity date, it may be held       555          

until five years from the effective date of this amendment         557          

SEPTEMBER 27, 1996, regardless of whether the investment would     558          

qualify as a legal investment under the terms of this section as   559          

amended.                                                                        

      Sec. 135.18.  (A)  The treasurer, before making the initial  568          

deposit in a public depository pursuant to an award made under     569          

sections 135.01 to 135.21 of the Revised Code, shall require the   570          

institution designated as a public depository to pledge to and     571          

deposit with the treasurer, as security for the repayment of all   572          

public moneys to be deposited in the public depository during the  573          

period of designation pursuant to the award, eligible securities   574          

of aggregate market value equal to the excess of the amount of     575          

public moneys to be at the time so deposited, over and above such  576          

portion or amount of such moneys as is at such time insured by     577          

the federal deposit insurance corporation or by any other agency   578          

or instrumentality of the federal government, or the treasurer     579          

may require the institution to deposit with the treasurer surety   580          

company bonds which, when executed, shall be for an amount equal   581          

to such excess amount.  In the case of any deposit other than the  582          

initial deposit made during the period of designation, the amount  583          

of the aggregate market value of securities required to be         584          

pledged and deposited, or of the surety company bonds required to  585          

                                                          15     


                                                                 
be deposited, shall be equal to the difference between the amount  586          

of public moneys on deposit in such public depository plus the     587          

amount to be so deposited, minus the portion or amount of the      588          

aggregate as is at the time insured as provided in this section.   589          

The treasurer may require additional eligible securities to be     590          

deposited to provide for any depreciation which may occur in the   591          

market value of any of the securities so deposited.                592          

      (B)  The following securities shall be eligible for the      594          

purposes of this section:                                          595          

      (1)  Bonds, notes, or other obligations of the United        597          

States; or bonds, notes, or other obligations guaranteed as to     598          

principal and interest by the United States or those for which     599          

the faith of the United States is pledged for the payment of       600          

principal and interest thereon, by language appearing in the       601          

instrument specifically providing such guarantee or pledge and     602          

not merely by interpretation or otherwise;                         603          

      (2)  Bonds, notes, debentures, letters of credit, or other   605          

obligations or securities issued by any federal government agency  606          

or instrumentality, or the export-import bank of Washington;       607          

bonds, notes, or other obligations guaranteed as to principal and  608          

interest by the United States or those for which the faith of the  609          

United States is pledged for the payment of principal and          610          

interest thereon, by interpretation or otherwise and not by        611          

language appearing in the instrument specifically providing such   612          

guarantee or pledge;                                                            

      (3)  Obligations of or fully insured or fully guaranteed by  614          

the United States or any federal government agency or              615          

instrumentality;                                                                

      (4)  Obligations partially insured or partially guaranteed   617          

by any federal agency or instrumentality;                          618          

      (5) Obligations of or fully guaranteed by the federal        620          

national mortgage association, federal home loan mortgage          621          

corporation, federal farm credit bank, or student loan marketing   622          

association;                                                                    

                                                          16     


                                                                 
      (6)  Bonds and other obligations of this state;              624          

      (7)  Bonds and other obligations of any county, township,    626          

school district, municipal corporation, or other legally           627          

constituted taxing subdivision of this state, which is not at the  628          

time of such deposit, in default in the payment of principal or    629          

interest on any of its bonds or other obligations, for which the   630          

full faith and credit of the issuing subdivision is pledged;       632          

      (8)  Bonds of other states of the United States which have   634          

not during the ten years immediately preceding the time of such    635          

deposit defaulted in payments of either interest or principal on   636          

any of their bonds;                                                637          

      (9)  Shares of no-load money market mutual funds consisting  640          

exclusively of obligations described in division (B)(1) or (2) of               

this section and repurchase agreements secured by such             641          

obligations;                                                       642          

      (10) A SURETY BOND ISSUED BY A CORPORATE SURETY LICENSED BY  644          

THE STATE AND AUTHORIZED TO ISSUE SURETY BONDS IN THIS STATE       645          

PURSUANT TO CHAPTER 3929. OF THE REVISED CODE, AND QUALIFIED TO    646          

PROVIDE SURETY BONDS TO THE FEDERAL GOVERNMENT PURSUANT TO 96      648          

STAT. 1047 (1982), 31 U.S.C.A. 9304.                               649          

      (C)  If the public depository fails to pay over any part of  651          

the public deposit made therein as provided by law, the treasurer  652          

shall sell at public sale any of the bonds or other securities     653          

deposited with the treasurer pursuant to this section or section   654          

131.09 of the Revised Code, or shall draw on any letter of credit  655          

to the extent of such failure to pay.  Thirty days' notice of      656          

such sale shall be given in a newspaper of general circulation at  657          

Columbus, in the case of the treasurer of state, and at the        658          

county seat of the county in which the office of the treasurer is  659          

located, in the case of any other treasurer.  When a sale of       660          

bonds or other securities has been so made and upon payment to     661          

the treasurer of the purchase money, the treasurer shall transfer  662          

such bonds or securities whereupon the absolute ownership of such  663          

bonds or securities shall pass to the purchasers.  Any surplus     664          

                                                          17     


                                                                 
remaining after deducting the amount due the state or subdivision  665          

and expenses of sale shall be paid to the public depository.       666          

      (D)  An institution designated as a public depository may,   668          

by written notice to the treasurer, designate a qualified trustee  669          

and deposit the eligible securities required by this section with  670          

the trustee for safekeeping for the account of the treasurer and   671          

the institution as a public depository, as their respective        672          

rights to and interests in such securities under this section may  673          

appear and be asserted by written notice to or demand upon the     674          

trustee.  In such case, the treasurer shall accept the written     675          

receipt of the trustee describing the securities which have been   676          

deposited with the trustee by the public depository, a copy of     677          

which shall also be delivered to the public depository.            678          

Thereupon all such securities so deposited with the trustee are    679          

deemed to be pledged with the treasurer and to be deposited with   680          

the treasurer, for all the purposes of this section.               681          

      (E)  The governing board may make provisions for the         683          

exchange and release of securities and the substitution of other   684          

eligible securities therefor except where the public depository    685          

has deposited eligible securities with a trustee for safekeeping   686          

as provided in this section.                                       687          

      (F)  When the public depository has deposited eligible       689          

securities described in division (B)(1) of this section with a     690          

trustee for safekeeping, the public depository may at any time     691          

substitute or exchange eligible securities described in division   692          

(B)(1) of this section having a current market value equal to or   693          

greater than the current market value of the securities then on    694          

deposit and for which they are to be substituted or exchanged,     695          

without specific authorization from any governing board, boards,   696          

or treasurer of any such substitution or exchange.                 697          

      (G)  When the public depository has deposited eligible       699          

securities described in divisions (B)(2) to (9) of this section    701          

with a trustee for safekeeping, the public depository may at any                

time substitute or exchange eligible securities having a current   702          

                                                          18     


                                                                 
market value equal to or greater than the current market value of  703          

the securities then on deposit and for which they are to be        704          

substituted or exchanged without specific authorization of any     705          

governing board, boards, or treasurer of any such substitution or  706          

exchange only if:                                                  707          

      (1)  The treasurer has authorized the public depository to   709          

make such substitution or exchange on a continuing basis during a  710          

specified period without prior approval of each substitution or    711          

exchange.  Such authorization may be effected by the treasurer     712          

sending to the trustee a written notice stating that substitution  713          

may be effected on a continuing basis during a specified period    714          

which shall not extend beyond the end of the period of             715          

designation during which the notice is given.  The trustee may     716          

rely upon such notice and upon the period of authorization stated  717          

therein and upon the period of designation stated therein.         718          

      (2)  No continuing authorization for substitution has been   720          

given by the treasurer, the public depository notifies the         721          

treasurer and the trustee of an intended substitution or           722          

exchange, and the treasurer fails to object to the trustee as to   723          

the eligibility or market value of the securities being            724          

substituted within ten calendar days after the date appearing on   725          

the notice of proposed substitution.  The notice to the treasurer  726          

and to the trustee shall be given in writing and delivered         727          

personally or by certified or registered mail with a return        728          

receipt requested.  The trustee may assume in any case that the    729          

notice has been delivered to the treasurer.  In order for          730          

objections of the treasurer to be effective, receipt of the        731          

objections must be acknowledged in writing by the trustee.         732          

      (3)  The treasurer gives written authorization for a         734          

substitution or exchange of specific securities.                   735          

      (H)  The public depository shall notify any governing        737          

board, boards, or treasurer of any such substitution or exchange   738          

under division (G)(1) or (2) of this section.  Upon request from   739          

the treasurer, the trustee shall furnish a statement of the        740          

                                                          19     


                                                                 
securities pledged against such public deposits.                   741          

      (I)  Any federal reserve bank or branch thereof located in   743          

this state, without compliance with Chapter 1111. of the Revised   744          

Code and without becoming subject to any other law of this state   747          

relative to the exercise by corporations of trust powers           748          

generally, is qualified to act as trustee for the safekeeping of   749          

securities, under this section.  Any institution mentioned in      750          

section 135.03 of the Revised Code that holds a certificate of     751          

qualification issued by the superintendent of financial            752          

institutions or any institution complying with sections 1111.04,                

1111.05, and 1111.06 of the Revised Code, is qualified to act as   754          

trustee for the safekeeping of securities, other than those        755          

belonging to itself, under this section.  Upon application to the  756          

superintendent in writing by any such institution, the                          

superintendent shall investigate the applicant and ascertain       758          

whether or not it has been authorized to execute and accept        759          

trusts in this state and has safe and adequate vaults and          760          

efficient supervision thereof for the storage and safekeeping      761          

within this state of such securities.  If the superintendent       762          

finds that the applicant has been so authorized and does have      763          

such vaults and supervision thereof, the superintendent shall      764          

approve the application and issue a certificate to that effect,    765          

the original or any certified copy of which shall be conclusive    766          

evidence that the institution therein named is qualified to act    767          

as trustee for the purposes of this section with respect to        768          

securities other than those belonging to itself.                                

      Notwithstanding the fact that a public depository is         770          

required to pledge eligible securities in certain amounts to       771          

secure deposits of public moneys, a trustee shall have no duty or  772          

obligation to determine the eligibility, market value, or face     773          

value of any securities deposited with the trustee by a public     774          

depository.  This applies in all situations including, without     775          

limitation, a substitution or exchange of securities.              776          

      Any charges or compensation of a designated trustee for      778          

                                                          20     


                                                                 
acting as such under this section shall be paid by the public      779          

depository and in no event shall be chargeable to the state or     780          

the subdivision or to the treasurer or to any officer of the       781          

state or subdivision.  Such THE charges or compensation shall not  783          

be a lien or charge upon the securities deposited for safekeeping  784          

prior or superior to the rights to and interests in such           785          

securities of the state or the subdivision or of the treasurer.    786          

The treasurer and the treasurer's bonders or surety shall be       788          

relieved from any liability to the state or the subdivision or to               

the public depository for the loss or destruction of any           789          

securities deposited with a qualified trustee pursuant to this     790          

section.                                                                        

      Sec. 135.181.  (A)  As used in this section:                 799          

      (1)  "Public depository" means that term as defined in       801          

section 135.01 of the Revised Code, but also means an institution  802          

which receives or holds any public deposits as defined in section  803          

135.31 of the Revised Code.                                        804          

      (2)  "Public deposits," "public moneys," and "treasurer"     806          

mean those terms as defined in section 135.01 of the Revised       807          

Code, but also have the same meanings as are set forth in section  808          

135.31 of the Revised Code.                                        809          

      (3)  "Subdivision" means that term as defined in section     811          

135.01 of the Revised Code, but also includes a county.            812          

      (B)  In lieu of the pledging requirements prescribed in      814          

sections 135.18 and 135.37 of the Revised Code, an institution     815          

designated as a public depository at its option may pledge a       816          

single pool of eligible securities to secure the repayment of all  817          

public moneys deposited in the institution and not otherwise       818          

secured pursuant to law, provided that at all times the total      819          

MARKET value of the securities so pledged, based on the            820          

valuations prescribed in division (C) of this section, is at       821          

least equal to one hundred ten FIVE per cent of the total amount   822          

of all public deposits to be secured by the pooled securities,     823          

including the portion of such deposits covered by any federal      824          

                                                          21     


                                                                 
deposit insurance.  Each such institution shall carry in its       825          

accounting records at all times a general ledger or other          826          

appropriate account of the total amount of all public deposits to  827          

be secured by the pool, as determined at the opening of business   828          

each day, and the total MARKET value of securities pledged to      829          

secure such deposits.                                              830          

      (C)  The following securities, at the specified valuations,  832          

DESCRIBED IN DIVISION (B) OF SECTION 135.18 OF THE REVISED CODE    833          

shall be eligible as collateral for the purposes of division (B)   834          

of this section, provided no such securities pledged as            835          

collateral are at any time in default as to either principal or    836          

interest:                                                          837          

      (1)  Obligations of or fully insured or fully guaranteed by  839          

the United States or any federal government agency or              840          

instrumentality:  at face value;                                   841          

      (2)  Obligations partially insured or partially guaranteed   843          

by any federal government agency or instrumentality:  at face      844          

value;                                                                          

      (3)  Obligations of or fully guaranteed by the federal       846          

national mortgage association, federal home loan mortgage          847          

corporation, federal farm, credit bank, or student loan marketing  848          

association:  at face value;                                       849          

      (4)  Obligations of any state, county, municipal             851          

corporation, or other legally constituted authority of any state,  852          

or any instrumentality of any state, county, municipal             853          

corporation, or other authority, which are secured as to the       854          

payment of principal and interest by the holding in escrow of      855          

obligations of the United States for which the full faith and      856          

credit of the United States is pledged:  at face value;            857          

      (5)  Obligations of this state, or any county or other       859          

legally constituted authority of this state, or any                860          

instrumentality of this state, or such county or other authority:  861          

at face value;                                                     862          

      (6)  Obligations of any other state:  at ninety per cent of  864          

                                                          22     


                                                                 
face value;                                                        865          

      (7)  Obligations of any county, municipal corporation, or    867          

other legally constituted authority of any other state, or any     868          

instrumentality of such county, municipal corporation, or other    869          

authority:  at eighty per cent of face value;                      870          

      (8)  Notes representing loans made to persons attending or   872          

planning to attend eligible institutions of education and to       873          

their parents, and insured or guaranteed by the United States or   874          

any agency, department, or other instrumentality thereof:  at      875          

face value;                                                                     

      (9)  Any other obligations the treasurer of state approves:  877          

at the percentage of face value the treasurer of state             878          

prescribes;                                                                     

      (10)  Shares of no-load money market mutual funds            880          

consisting exclusively of obligations described in division        881          

(C)(1), (2), or (3) of this section and repurchase agreements      882          

secured by such obligations:  at face value.                       883          

      (D)  The state and each subdivision shall have an undivided  885          

security interest in the pool of securities pledged by a public    886          

depository pursuant to division (B) of this section in the         887          

proportion that the total amount of the state's or subdivision's   888          

public moneys secured by the pool bears to the total amount of     889          

public deposits so secured.                                        890          

      (E)  An institution designated as a public depository shall  892          

designate a qualified trustee and deposit with the trustee for     893          

safekeeping the eligible securities pledged pursuant to division   894          

(B) of this section.  The institution shall give written notice    895          

of the qualified trustee to any treasurer or treasurers            896          

depositing public moneys for which such securities are pledged.    897          

The treasurer shall accept the written receipt of the trustee      898          

describing the pool of securities so deposited by the depository,  899          

a copy of which also shall be delivered to the depository.         900          

      (F)  Any federal reserve bank or branch thereof located in   902          

this state, without compliance with Chapter 1111. of the Revised   903          

                                                          23     


                                                                 
Code and without becoming subject to any other law of this state   906          

relative to the exercise by corporations of trust powers           907          

generally, is qualified to act as trustee for the safekeeping of   908          

securities, under this section.  Any institution mentioned in      909          

section 135.03 or 135.32 of the Revised Code which holds a                      

certificate of qualification issued by the superintendent of       910          

financial institutions or any institution complying with sections  912          

1111.04, 1111.05, and 1111.06 of the Revised Code is qualified to  913          

act as trustee for the safekeeping of securities under this        914          

section, other than those belonging to itself or to an affiliate   915          

as defined in division (A) of section 1101.01 of the Revised       916          

Code.  Upon application to the superintendent in writing by any    917          

such institution, the superintendent shall investigate the         919          

applicant and ascertain whether or not it has been authorized to   920          

execute and accept trusts in this state and has safe and adequate  921          

vaults and efficient supervision thereof for the storage and       922          

safekeeping of such securities.  If the superintendent finds that  923          

the applicant has been so authorized and does have such vaults     924          

and supervision thereof, the superintendent shall approve the      925          

application and issue a certificate to that effect, the original   927          

or any certified copy of which shall be conclusive evidence that   928          

the institution named therein is qualified to act as trustee for   929          

the purposes of this section with respect to securities other      930          

than those belonging to itself or to an affiliate.                 931          

      (G)  The public depository at any time may substitute,       933          

exchange, or release eligible securities deposited with a          934          

qualified trustee pursuant to this section, provided that such     935          

substitution, exchange, or release does not reduce the total       936          

MARKET value of the securities, based on the valuations            937          

prescribed in division (C) of this section, to an amount that is   939          

less than one hundred ten FIVE per cent of the total amount of     940          

public deposits as determined pursuant to division (B) of this     942          

section.                                                                        

      (H)  Notwithstanding the fact that a public depository is    944          

                                                          24     


                                                                 
required to pledge eligible securities in certain amounts to       945          

secure deposits of public moneys, a trustee shall have no duty or  946          

obligation to determine the eligibility, market value, or face     947          

value of any securities deposited with the trustee by a public     948          

depository.  This applies in all situations including, but not     949          

limited to, a substitution or exchange of securities, but          950          

excluding those situations effectuated by division (I) of this     951          

section in which the trustee is required to determine face and     952          

market value.                                                      953          

      (I)  If the public depository fails to pay over any part of  955          

the public deposits made therein as provided by law and secured    956          

pursuant to division (B) of this section, the treasurer shall      957          

give written notice of this failure to the qualified trustee       958          

holding the pool of securities pledged against public moneys       959          

deposited in the depository, and at the same time shall send a     960          

copy of this notice to the depository.  Upon receipt of such       961          

notice, the trustee shall transfer to the treasurer for public     962          

sale such of the pooled securities as may be necessary to produce  963          

an amount equal to the deposits made by the treasurer and not      964          

paid over, less the portion of such deposits covered by any        965          

federal deposit insurance, plus any accrued interest due on such   966          

deposits; however, such THE amount shall not exceed the state's    967          

or subdivision's proportional security interest in the market      969          

value of the pool as of the date of the depository's failure to    970          

pay over the deposits, as such interest and value are determined   971          

by the trustee.  The treasurer shall sell at public sale any of    972          

the bonds or other securities so transferred.  Thirty days'        973          

notice of such sale shall be given in a newspaper of general       974          

circulation at Columbus, in the case of the treasurer of state,    975          

and at the county seat of the county in which the office of the    976          

treasurer is located, in the case of any other treasurer.  When a  977          

sale of bonds or other securities has been so made and upon        978          

payment to the treasurer of the purchase money, the treasurer      979          

shall transfer such bonds or securities whereupon the absolute     980          

                                                          25     


                                                                 
ownership of such bonds or securities shall pass to the            981          

purchasers.  Any surplus after deducting the amount due the state  982          

or subdivision and expenses of sale shall be paid to the public    983          

depository.                                                                     

      (J)  Any charges or compensation of a designated trustee     985          

for acting as such under this section shall be paid by the public  986          

depository and in no event shall be chargeable to the state or     987          

subdivision or to the treasurer or to any officer of the state or  988          

subdivision.  Such THE charges or compensation shall not be a      989          

lien or charge upon the securities deposited for safekeeping       991          

prior or superior to the rights to and interests in such           992          

securities of the state or subdivision or of the treasurer.  The   993          

treasurer and the treasurer's bonders or surety shall be relieved  994          

from any liability to the state or subdivision or to the public    995          

depository for the loss or destruction of any securities           996          

deposited with a qualified trustee pursuant to this section.       997          

      (K)  In lieu of placing its unqualified endorsement on each  999          

security, a public depository pledging securities pursuant to      1,000        

division (B) of this section that are not negotiable without its   1,001        

endorsement or assignment may furnish to the qualified trustee     1,002        

holding the securities an appropriate resolution and irrevocable   1,003        

power of attorney authorizing the trustee to assign the            1,004        

securities.  The resolution and power of attorney shall conform    1,005        

to such terms and conditions as the trustee prescribes.            1,006        

      (L)  Upon request of a treasurer no more often than four     1,008        

times per year, a public depository shall report the amount of     1,009        

public moneys deposited by the treasurer and secured pursuant to   1,010        

division (B) of this section, and the total MARKET value, based    1,011        

on the valuations prescribed in division (C) of this section, of   1,013        

the pool of securities pledged to secure public moneys held by     1,014        

the depository, including those deposited by the treasurer.  Upon  1,015        

request of a treasurer no more often than four times per year, a   1,016        

qualified trustee shall report such THE total MARKET value of the  1,018        

pool of securities deposited with it by the depository and shall   1,020        

                                                          26     


                                                                 
provide an itemized list of the securities in the pool.  These     1,021        

reports shall be made as of the date the treasurer specifies.      1,022        

      Sec. 135.33.  (A)  The board of county commissioners shall   1,031        

meet every two FOUR years in the month next preceding the date of  1,033        

the expiration of its current period of designation for the        1,034        

purpose of designating its public depositories of active moneys    1,035        

for the next succeeding two-year FOUR-YEAR period commencing on    1,036        

the date of expiration of the preceding period.                    1,038        

      At least sixty days before such THE meeting, the county      1,040        

treasurer shall submit to the board an estimate of the aggregate   1,041        

amount of public moneys that might be available for deposit as     1,042        

active moneys at any one time during the next two-year FOUR-YEAR   1,043        

period.  Upon receipt of such estimate, the board shall            1,044        

immediately notify all eligible institutions that might desire to  1,045        

be designated as such public depositories of the date on which     1,046        

the designation is to be made; the amount that has been estimated  1,047        

to be available for deposit; and the date fixed as the last date   1,048        

on which applications may be submitted, that shall not be more     1,049        

than thirty days or less than ten days prior to the date set for   1,050        

the meeting designating public depositories.                       1,051        

      (B)  Any eligible institution described in division (A) of   1,053        

section 135.32 of the Revised Code that has an office located      1,054        

within the territorial limits of the county is eligible to become  1,055        

a public depository of the active moneys of the county.  Each      1,056        

eligible institution desiring to be a public depository of such    1,057        

active moneys shall, not more than thirty days or less than ten    1,058        

days prior to the date fixed by this section, make application     1,059        

therefor in writing to the board of county commissioners.  Such    1,060        

THE application may specify the maximum amount of such public      1,061        

moneys that the applicant desires to receive and have on deposit   1,062        

at any time during the period covered by the designation.  Each    1,063        

application shall be accompanied by a financial statement of the   1,064        

applicant, under oath of its cashier, treasurer, or other officer  1,065        

as of the date of its latest report to the superintendent of       1,066        

                                                          27     


                                                                 
banks or comptroller of the currency, and adjusted to show any     1,067        

changes therein prior to the date of the application, that shall   1,068        

include a statement of its public and nonpublic deposits.          1,069        

      (C)  The board of county commissioners, upon recommendation  1,071        

of the treasurer, shall designate, by resolution, one or more      1,072        

eligible institutions as public depositories for active moneys.    1,073        

In case the aggregate amount of active moneys applied for by       1,074        

institutions within the county is less than the amount estimated   1,075        

to be available for deposit, the board may designate as a public   1,076        

depository one or more eligible institutions that are              1,077        

conveniently located.  The original resolution of designation      1,078        

shall be certified to the treasurer and any institution            1,079        

designated as a public depository.                                 1,080        

      (D)  No service charge shall be made against any deposit of  1,082        

active moneys, or collected or paid, unless such service charge    1,083        

is the same as is customarily imposed by institutions receiving    1,084        

money on deposit subject to check, in which event the charge may   1,085        

be paid.                                                           1,086        

      (E)  Notwithstanding division (C) of this section, the       1,088        

board of county commissioners may authorize, by resolution, the    1,089        

treasurer to deposit money necessary to pay the principal and      1,090        

interest on bonds and notes, and any fees incident thereto, in     1,091        

any bank within this state.                                        1,092        

      Moneys so deposited shall be transferred by the treasurer    1,094        

according to the terms of the agreement with the bank but shall    1,095        

remain as public moneys until such time as they are actually paid  1,096        

out by the bank.  Until such time as payments become due and       1,097        

payable on such principal or interest, the bank shall invest any   1,098        

moneys in the account in interest-bearing obligations at the       1,099        

highest, reasonable rate of interest obtainable.                   1,100        

      So long as moneys remain in the account, the bank shall      1,102        

deliver to the treasurer, at the end of each month, a statement    1,103        

showing an accounting of all activities in the account during the  1,104        

preceding month including, but not limited to, all payments made,  1,105        

                                                          28     


                                                                 
all interest earned, and the beginning and ending balances,        1,106        

together with any coupons redeemed since the preceding statement   1,107        

was issued.                                                        1,108        

      Sec. 135.341.  (A)  There shall be a county investment       1,117        

advisory committee consisting of three members:  two county        1,118        

commissioners to be designated by the board of county              1,120        

commissioners, and the county treasurer.                           1,121        

      Notwithstanding the preceding sentence, the board of county  1,123        

commissioners may declare that all three county commissioners      1,124        

shall serve on the county investment advisory committee.  If the   1,125        

board so declares, the county investment advisory committee shall  1,126        

consist of five members:  the three county commissioners, the      1,127        

county treasurer, and the clerk of the court of common pleas of    1,128        

the county.                                                                     

      (B)  The committee shall elect its own chairperson, and      1,130        

committee members shall receive no additional compensation for     1,131        

the performance of their duties as committee members.              1,132        

      (C)  The committee shall establish written county            1,135        

investment policies and shall meet at least once every three       1,136        

months, to review or revise its policies and to advise the         1,137        

investing authority on the county investments in order to ensure   1,138        

the best and safest return of funds available to the county for    1,139        

deposit or investment.  Any member of the county investment        1,140        

advisory committee, upon giving five days' notice, may call a      1,141        

meeting of the committee.  The committee's policies may establish  1,142        

a limit on the period of time that moneys may be invested in any   1,143        

particular type of investment.                                                  

      (D)  The committee is authorized to retain the services of   1,145        

an investment advisor, provided that the advisor is LICENSED BY    1,146        

THE DIVISION OF SECURITIES UNDER SECTION 1707.141 OF THE REVISED   1,147        

CODE OR IS registered with the securities and exchange             1,148        

commission, and possesses public funds investment management       1,150        

experience, specifically in the area of state and local                         

government investment portfolios, or the advisor is an eligible    1,151        

                                                          29     


                                                                 
institution mentioned in section 135.03 of the Revised Code.       1,152        

      (E)  Nothing in this section affects the authority of any    1,154        

of the officers mentioned in section 325.27 of the Revised Code    1,155        

to contract for the services of fiscal and management consultants  1,156        

pursuant to section 325.17 of the Revised Code.                    1,157        

      Sec. 135.35.  (A)  The investing authority shall deposit or  1,166        

invest any part or all of the county's inactive moneys and shall   1,167        

invest all of the money in the county library and local            1,168        

government support fund when required by section 135.352 of the    1,169        

Revised Code.  The following classifications of securities and     1,170        

obligations are eligible for such deposit or investment:           1,171        

      (1)  United States treasury bills, notes, bonds, or any      1,173        

other obligation or security issued by the United States treasury  1,174        

or any other obligation guaranteed as to principal or interest by  1,175        

the United States.                                                              

      Nothing in the classification of eligible securities and     1,177        

obligations set forth in division (A)(1) of this section or in     1,178        

the classifications of eligible securities and obligations set     1,179        

forth in divisions (A)(2) to (9)(8) of this section shall be       1,181        

construed to authorize any investment in stripped principal or     1,182        

interest obligations of such eligible securities and obligations.               

      (2)  Bonds, notes, debentures, or any other obligations or   1,184        

securities issued by any federal government agency or              1,185        

instrumentality, including but not limited to, the federal         1,186        

national mortgage association, federal home loan bank, federal     1,187        

farm credit bank, federal home loan mortgage corporation,          1,188        

government national mortgage association, and student loan         1,189        

marketing association.  All federal agency securities shall be     1,190        

direct issuances of federal government agencies or                              

instrumentalities.                                                 1,191        

      (3)  Time certificates of deposit or savings or deposit      1,193        

accounts, including, but not limited to, passbook accounts, in     1,194        

any eligible institution mentioned in section 135.32 of the        1,195        

Revised Code;                                                      1,196        

                                                          30     


                                                                 
      (4)  Bonds and other obligations of this state or the        1,198        

political subdivisions of this state, provided that such           1,199        

political subdivisions are located wholly or partly within the     1,200        

same county as the investing authority;                                         

      (5)  No-load money market mutual funds consisting            1,202        

exclusively of obligations described in division (A)(1) or (2) of  1,203        

this section and repurchase agreements secured by such             1,204        

obligations, provided that investments in securities described in  1,206        

this division are made only through eligible institutions                       

mentioned in section 135.32 of the Revised Code;                   1,207        

      (6)  The Ohio subdivision's fund as provided in section      1,209        

135.45 of the Revised Code.;                                       1,210        

      (7)  Securities lending agreements with any eligible         1,212        

institution mentioned in section 135.32 of the Revised Code that   1,213        

is a member of the federal reserve system or federal home loan     1,214        

bank, under the terms of which agreements the investing authority  1,216        

lends securities and the eligible institution agrees to            1,217        

simultaneously exchange either securities described in division                 

(A)(1) or (2) of this section or cash or both securities and       1,218        

cash, equal value for equal value;                                 1,219        

      (8)  Commercial paper issued by any corporation              1,221        

incorporated under the laws of the United States or a state if     1,222        

both of the following conditions apply:                            1,223        

      (a)  Two nationally recognized rating agencies rank the      1,225        

commercial paper in either of their two highest categories;        1,226        

      (b)  The total amount invested in commercial paper at any    1,228        

time does not exceed five per cent of the county's total average   1,230        

portfolio, as determined and calculated by the investing           1,231        

authority.                                                                      

      (9)  Bankers acceptances, if the following conditions are    1,233        

met:                                                                            

      (a)  The acceptances mature in two hundred seventy days or   1,235        

fewer from the date of settlement;                                 1,236        

      (b)  The acceptances are eligible for purchase by the        1,238        

                                                          31     


                                                                 
federal reserve system;                                            1,239        

      (c)  The total amount invested in bankers acceptances at     1,241        

any time does not exceed ten per cent of the county's total        1,242        

average portfolio, as determined and calculated by the investing   1,243        

authority UP TO TWENTY-FIVE PER CENT OF THE COUNTY'S TOTAL         1,245        

AVERAGE PORTFOLIO IN EITHER OF THE FOLLOWING INVESTMENTS:          1,246        

      (a)  COMMERCIAL PAPER NOTES ISSUED BY AN ENTITY THAT IS      1,248        

DEFINED IN DIVISION (D) OF SECTION 1705.01 OF THE REVISED CODE     1,250        

AND THAT HAS ASSETS EXCEEDING FIVE HUNDRED MILLION DOLLARS, TO     1,252        

WHICH NOTES ALL OF THE FOLLOWING APPLY:                            1,253        

      (i)  THE NOTES ARE RATED AT THE TIME OF PURCHASE IN THE      1,255        

HIGHEST CLASSIFICATION ESTABLISHED BY AT LEAST TWO NATIONALLY      1,256        

RECOGNIZED STANDARD RATING SERVICES.                               1,257        

      (ii)  THE AGGREGATE VALUE OF THE NOTES DOES NOT EXCEED TEN   1,259        

PER CENT OF THE AGGREGATE VALUE OF THE OUTSTANDING COMMERCIAL      1,261        

PAPER OF THE ISSUING CORPORATION.                                  1,262        

      (iii)  THE NOTES MATURE NOT LATER THAN ONE HUNDRED EIGHTY    1,264        

DAYS AFTER PURCHASE.                                               1,266        

      (b)  BANKERS ACCEPTANCES OF BANKS THAT ARE INSURED BY THE    1,268        

FEDERAL DEPOSIT INSURANCE CORPORATION AND TO WHICH BOTH OF THE     1,269        

FOLLOWING APPLY:                                                   1,270        

      (i)  THE OBLIGATIONS ARE ELIGIBLE FOR PURCHASE BY THE        1,272        

FEDERAL RESERVE SYSTEM.                                            1,273        

      (ii)  THE OBLIGATIONS MATURE NOT LATER THAN ONE HUNDRED      1,275        

EIGHTY DAYS AFTER PURCHASE.                                        1,277        

      NO INVESTMENT SHALL BE MADE PURSUANT TO DIVISION (A)(8) OF   1,279        

THIS SECTION UNLESS THE INVESTING AUTHORITY HAS COMPLETED          1,280        

ADDITIONAL TRAINING FOR MAKING THE INVESTMENTS AUTHORIZED BY       1,281        

DIVISION (A)(8) OF THIS SECTION.  THE TYPE AND AMOUNT OF           1,282        

ADDITIONAL TRAINING SHALL BE APPROVED BY THE AUDITOR OF STATE AND  1,284        

MAY BE CONDUCTED BY OR PROVIDED UNDER THE SUPERVISION OF THE                    

AUDITOR OF STATE.                                                  1,285        

      (B)  Nothing in the classifications of eligible obligations  1,287        

and securities set forth in divisions (A)(1) to (9)(8) of this     1,288        

                                                          32     


                                                                 
section shall be construed to authorize investment in a            1,290        

derivative, and no investing authority shall invest any county     1,291        

inactive moneys or any moneys in a county library and local        1,292        

government support fund in a derivative.  For purposes of this     1,293        

division, "derivative" means a financial instrument or contract    1,294        

or obligation whose value or return is based upon or linked to                  

another asset or index, or both, separate from the financial       1,295        

instrument, contract, or obligation itself.  Any security,         1,296        

obligation, trust account, or other instrument that is created     1,297        

from an issue of the United States treasury or is created from an  1,298        

obligation of a federal agency or instrumentality or is created    1,299        

from both is considered a derivative instrument.  An eligible      1,300        

investment described in this section with a variable interest      1,301        

rate payment, based upon a single interest payment or single                    

index comprised of other eligible investments provided for in      1,302        

division (A)(1) or (2) of this section, is not a derivative,       1,303        

provided that such variable rate investment has a maximum          1,304        

maturity of two years.                                                          

      (C)  Any EXCEPT AS PROVIDED IN DIVISION (D) OF THIS          1,306        

SECTION, ANY investment made pursuant to this section must mature  1,307        

within five years from the date of settlement, unless the          1,309        

investment is matched to a specific obligation or debt of the      1,310        

county, and the investment is specifically approved by the         1,311        

investment advisory committee.                                     1,312        

      (D)  The investing authority may also enter into a written   1,314        

repurchase agreement with any eligible institution mentioned in    1,316        

section 135.32 of the Revised Code or any eligible securities                   

dealer pursuant to division (J) of this section, under the terms   1,317        

of which agreement the investing authority purchases and the       1,318        

eligible institution or dealer agrees unconditionally to           1,320        

repurchase any of the securities listed in division (A)(1) or (2)  1,321        

DIVISIONS (B)(1) TO (5), EXCEPT LETTERS OF CREDIT DESCRIBED IN     1,322        

DIVISION (B)(2), of this section 135.18 OF THE REVISED CODE.  The  1,323        

market value of securities subject to an overnight WRITTEN         1,324        

                                                          33     


                                                                 
repurchase agreement must exceed the principal value of the        1,326        

overnight WRITTEN repurchase agreement by at least two per cent.   1,328        

A term WRITTEN repurchase agreement must exceed the principal      1,329        

value of the overnight WRITTEN repurchase agreement, by at least   1,331        

two per cent.  A term WRITTEN repurchase agreement shall not       1,334        

exceed thirty days, and the market value of securities subject to  1,335        

a term WRITTEN repurchase agreement must exceed the principal      1,337        

value of the term WRITTEN repurchase agreement by at least two     1,338        

per cent and be marked to market daily.  All securities purchased  1,339        

pursuant to this division shall be delivered into the custody of   1,341        

the investing authority or the qualified custodian of the                       

investing authority or an agent designated by the investing        1,342        

authority.  A WRITTEN repurchase agreement with an eligible        1,344        

securities dealer shall be transacted on a delivery versus         1,345        

payment basis.  The agreement shall contain the requirement that   1,346        

for each transaction pursuant to the agreement the participating   1,347        

institution shall provide all of the following information:        1,348        

      (1)  The par value of the securities;                        1,350        

      (2)  The type, rate, and maturity date of the securities;    1,352        

      (3)  A numerical identifier generally accepted in the        1,354        

securities industry that designates the securities.                1,355        

      No investing authority shall enter into a written            1,357        

repurchase agreement under the terms of which the investing        1,358        

authority agrees to sell securities owned by the county to a       1,360        

purchaser and agrees with that purchaser to unconditionally                     

repurchase those securities.                                       1,361        

      (E)  No investing authority shall make an investment under   1,364        

this section, unless the investing authority, at the time of                    

making the investment, reasonably expects that the investment can  1,365        

be held until its maturity.  The investing authority's written     1,366        

investment policy shall specify the conditions under which an      1,367        

investment may be redeemed or sold prior to maturity.              1,368        

      (F)  No investing authority shall pay a county's inactive    1,370        

moneys or moneys of a county library and local government support  1,371        

                                                          34     


                                                                 
fund into a fund established by another subdivision, treasurer,    1,372        

governing board, or investing authority, if that fund was          1,373        

established by the subdivision, treasurer, governing board, or     1,374        

investing authority for the purpose of investing or depositing     1,375        

the public moneys of other subdivisions.  This division does not                

apply to the payment of public moneys into either of the           1,376        

following:                                                                      

      (1)  The Ohio subdivision's fund pursuant to division        1,378        

(A)(6) of this section;                                                         

      (2)  A fund created solely for the purpose of acquiring,     1,380        

constructing, owning, leasing, or operating municipal utilities    1,381        

pursuant to the authority provided under section 715.02 of the     1,382        

Revised Code or Section 4 of Article XVIII, Ohio Constitution.     1,383        

      For purposes of division (F) of this section, "subdivision"  1,385        

includes a county.                                                 1,386        

      (G)  The use of leverage, in which the county uses its       1,388        

current investment assets as collateral for the purpose of         1,389        

purchasing other assets, is prohibited.  The issuance of taxable   1,390        

notes for the purpose of arbitrage is prohibited.  Contracting to  1,391        

sell securities not owned by the county, for the purpose of        1,392        

purchasing such securities on the speculation that bond prices                  

will decline, is prohibited.                                       1,393        

      (H)  Any securities, certificates of deposit, deposit        1,395        

accounts, or any other documents evidencing deposits or            1,396        

investments made under authority of this section shall be issued   1,397        

in the name of the county with the county treasurer or investing   1,398        

authority as the designated payee.  If any such deposits or        1,399        

investments are registrable either as to principal or interest,    1,400        

or both, they shall be registered in the name of the treasurer.    1,401        

      (I)  The investing authority shall be responsible for the    1,403        

safekeeping of all documents evidencing a deposit or investment    1,404        

acquired under this section including, but not limited to,         1,405        

safekeeping receipts evidencing securities deposited with a        1,406        

qualified trustee, as provided in section 135.37 of the Revised    1,407        

                                                          35     


                                                                 
Code, and documents confirming the purchase of securities under    1,408        

any repurchase agreement under this section shall be deposited     1,409        

with a qualified trustee, provided, however, that the qualified    1,410        

trustee shall be required to report to the investing authority,    1,411        

auditor of state, or an authorized outside auditor at any time     1,412        

upon request as to the identity, market value, and location of     1,413        

the document evidencing each security, and that if the             1,414        

participating institution is a designated depository of the        1,415        

county for the current period of designation, the securities that  1,416        

are the subject of the repurchase agreement may be delivered to    1,417        

the treasurer or held in trust by the participating institution    1,418        

on behalf of the investing authority.                              1,419        

      Upon the expiration of the term of office of an investing    1,421        

authority or in the event of a vacancy in the office for any       1,422        

reason, the officer or the officer's legal representative shall    1,424        

transfer and deliver to the officer's successor all documents                   

mentioned in this division for which the officer has been          1,425        

responsible for safekeeping.  For all such documents transferred   1,427        

and delivered, such officer shall be credited with, and the        1,428        

officer's successor shall be charged with, the amount of moneys    1,429        

so evidenced by such documents.                                                 

      (J)(1)  All investments, except for investments in           1,431        

securities described in divisions (A)(5) and (6) of this section,  1,433        

shall be made only through a member of the national association    1,434        

of securities dealers, through a bank, savings bank, or savings    1,435        

and loan association regulated by the superintendent of financial  1,437        

institutions, or through an institution regulated by the           1,438        

comptroller of the currency, federal deposit insurance             1,439        

corporation, or board of governors of the federal reserve system.  1,440        

      (2)  Payment for investments shall be made only upon the     1,442        

delivery of securities representing such investments to the        1,444        

treasurer, investing authority, or qualified trustee.  If the      1,445        

securities transferred are not represented by a certificate,       1,446        

payment shall be made only upon receipt of confirmation of         1,447        

                                                          36     


                                                                 
transfer from the custodian by the treasurer, governing board, or  1,448        

qualified trustee.                                                              

      (K)(1)  Except as otherwise provided in division (K)(2) of   1,450        

this section, no investing authority shall make an investment or   1,451        

deposit under this section, unless there is on file with the       1,452        

auditor of state a written investment policy approved by the       1,453        

investing authority.  The policy shall require that all entities   1,454        

conducting investment business with the investment authority       1,455        

shall sign the investment policy of that investment authority.                  

All brokers, dealers, and financial institutions, described in     1,456        

division (J)(1) of this section, initiating transactions with the  1,458        

investment authority by giving advice or making investment         1,459        

recommendations shall sign the investment authority's investment   1,460        

policy thereby acknowledging their agreement to abide by the                    

policy's contents.  All brokers, dealers, and financial            1,461        

institutions, described in division (J)(1) of this section,        1,462        

executing transactions initiated by the investment authority,      1,463        

having read the policy's contents, shall sign the investment       1,464        

policy thereby acknowledging their comprehension and receipt.                   

      (2)  If a written investment policy described in division    1,466        

(K)(1) of this section is not filed on behalf of the county with   1,467        

the auditor of state, the investing authority of that county       1,468        

shall invest the county's inactive moneys and moneys of the        1,469        

county library and local government support fund only in time      1,470        

certificates of deposits or savings or deposit accounts pursuant   1,471        

to division (A)(3) of this section or the Ohio subdivision's fund  1,472        

pursuant to division (A)(6) of this section.                                    

      (L)(1)  The investing authority shall establish and          1,474        

maintain an inventory of all obligations and securities acquired   1,475        

by the investing authority pursuant to this section.  The          1,476        

inventory shall include a description of each obligation or        1,477        

security, including type, cost, par value, maturity date,          1,478        

settlement date, and any coupon rate.                                           

      (2)  The investing authority shall also keep a complete      1,480        

                                                          37     


                                                                 
record of all purchases and sales of the obligations and           1,481        

securities made pursuant to this section.                          1,482        

      (3)  The investing authority shall maintain a monthly        1,484        

portfolio report and issue a quarterly investment COPY OF THE      1,485        

MONTHLY PORTFOLIO report describing such investments to the        1,486        

county investment advisory committee, detailing the current        1,487        

inventory of all obligations and securities, all transactions      1,488        

during the month that affected the inventory, any income received  1,489        

from the obligations and securities, and any investment expenses   1,490        

paid, and stating the names of any persons effecting transactions  1,491        

on behalf of the investing authority.                                           

      (4)  The monthly portfolio report and the quarterly          1,493        

investment report shall be A public records RECORD and available   1,495        

for inspection under section 149.43 of the Revised Code.           1,496        

      (5)  The inventory, AND the monthly portfolio report, and    1,498        

the quarterly investment report shall be on standard forms         1,500        

approved by the auditor of state and shall be filed with the       1,501        

board of county commissioners.                                                  

      (M)  An investing authority may enter into a written         1,504        

investment or deposit agreement that includes a provision under    1,505        

which the parties agree to submit to nonbinding arbitration to     1,506        

settle any controversy that may arise out of the agreement,        1,507        

including any controversy pertaining to losses of public moneys    1,508        

resulting from investment or deposit.  The arbitration provision   1,509        

shall be set forth entirely in the agreement, and the agreement    1,510        

shall include a conspicuous notice to the parties that any party   1,512        

to the arbitration may apply to the court of common pleas of the   1,513        

county in which the arbitration was held for an order to vacate,                

modify, or correct the award.  Any such party may also apply to    1,514        

the court for an order to change venue to a court of common pleas  1,515        

located more than one hundred miles from the county in which the   1,516        

investing authority is located.                                                 

      For purposes of this division, "investment or deposit        1,518        

agreement" means any agreement between an investing authority and  1,519        

                                                          38     


                                                                 
a person, under which agreement the person agrees to invest,       1,520        

deposit, or otherwise manage, on behalf of the investing           1,521        

authority, a county's inactive moneys or moneys in a county                     

library and local government support fund, or agrees to provide    1,522        

investment advice to the investing authority.                      1,523        

      (N)  An investment held in the county portfolio on the       1,525        

effective date of this amendment SEPTEMBER 27, 1996, that was a    1,527        

legal investment under the law as it existed before the effective  1,528        

date of this amendment SEPTEMBER 27, 1996, may be held until       1,529        

maturity, or if the investment does not have a maturity date the   1,530        

investment may be held until five years from the effective date    1,531        

of this amendment SEPTEMBER 27, 1996, regardless of whether the    1,533        

investment would qualify as a legal investment under the terms of               

this section as amended.                                           1,534        

      Sec. 135.37.  (A)  Any institution described in section      1,543        

135.32 of the Revised Code shall, at the time it receives a        1,544        

deposit of public moneys under section 135.33 or 135.35 of the     1,545        

Revised Code, pledge to and deposit with the investing authority,  1,546        

as security for the repayment of all public moneys to be           1,547        

deposited, eligible securities of aggregate market value equal to  1,548        

or in excess of the amount of public moneys to be at the time so   1,549        

deposited.  Any securities listed in division (B) of section       1,550        

135.18 of the Revised Code are eligible for such purpose.  The     1,551        

collateral so pledged or deposited may be in an amount that when   1,552        

added to the portion of the deposit insured by the federal         1,553        

deposit insurance corporation or any other agency or               1,554        

instrumentality of the federal government will, in the aggregate,  1,555        

equal or exceed the amount of public moneys so deposited;          1,556        

provided that, when an investment of inactive moneys consists of   1,557        

the purchase of one or more of the type of securities listed in    1,558        

division (A)(1) or (2) of section 135.35 of the Revised Code, no   1,559        

additional collateral need be pledged or deposited.                1,560        

      The investing authority also may require or accept surety    1,562        

company bonds as collateral for public deposits, subject to the    1,563        

                                                          39     


                                                                 
provisions of divisions (A) to (E) of this section, and may        1,564        

require that additional eligible securities be pledged or          1,565        

deposited when depreciation occurs in the market value of any      1,566        

securities pledged or deposited.                                   1,567        

      (B)  The public depository may, at any time, provide for     1,569        

the exchange or substitution of securities for other eligible      1,570        

securities or the release of securities when the amount of public  1,571        

moneys on deposit does not require that they be pledged or         1,572        

deposited, by notifying the investing authority of its intent to   1,573        

take such action.                                                  1,574        

      Upon proper notification of the public depository's desire   1,576        

for release of securities, the investing authority may sign a      1,577        

release of such securities provided that the aggregate amount of   1,578        

collateral remaining pledged or deposited meets the requirements   1,579        

of divisions (A) to (E) of this section.                           1,580        

      When a public depository desires to exchange or substitute   1,582        

securities for other eligible securities, the investing authority  1,583        

may release the securities pledged or deposited after the deposit  1,584        

of other securities having a current market value equal to or      1,585        

greater than the current market value of securities then on        1,586        

deposit or after a safekeeping receipt has been received           1,587        

evidencing the deposit and pledge of such securities.              1,588        

      (C)  Upon request from the investing authority, the trustee  1,590        

or the public depository shall furnish a statement of the          1,591        

securities pledged against the public moneys deposited in the      1,592        

public depository.                                                 1,593        

      (D)  If a public depository fails to pay over any part of    1,595        

any public deposit made as provided by law, the investing          1,596        

authority shall sell any pledged or deposited securities, as       1,597        

prescribed in division (C) of section 135.18 of the Revised Code.  1,598        

      (E)  A public depository may designate, in accordance with   1,600        

the provisions of division (D) of section 135.18 of the Revised    1,601        

Code, a trustee for the safekeeping of any pledged securities.     1,602        

Such trustee shall be any bank or other institution eligible as a  1,603        

                                                          40     


                                                                 
trustee under division (I) of section 135.18 of the Revised Code,  1,604        

except that, for the purposes of this section, a bank to which a   1,605        

certificate of qualification is issued shall be an institution     1,606        

mentioned in division (A) of section 135.32 of the Revised Code.   1,607        

      (F)  In lieu of the pledging requirements prescribed in      1,609        

divisions (A) to (E) of this section, an institution designated    1,610        

as a public depository may pledge securities pursuant to section   1,611        

135.181 of the Revised Code.                                       1,612        

      Sec. 307.55.  (A)  No claims against the county shall be     1,621        

paid otherwise than upon the allowance of the board of county      1,623        

commissioners, upon the warrant, INCLUDING AN ELECTRONIC WARRANT   1,624        

AUTHORIZING DIRECT DEPOSIT FOR PAYMENT OF A COUNTY OBLIGATION IN   1,625        

ACCORDANCE WITH DIVISION (F) OF SECTION 9.37 OF THE REVISED CODE,  1,626        

of the county auditor, except in those cases in which the amount   1,627        

due is fixed by law or is authorized to be fixed by some other     1,629        

person or tribunal, in which case it shall be paid upon the        1,630        

warrant of the auditor upon the proper certificate of the person   1,631        

or tribunal allowing the claim.                                                 

      (B)  No public money shall be disbursed by the board or any  1,633        

of its members, but shall be disbursed by the county treasurer,    1,635        

upon the warrant, INCLUDING AN ELECTRONIC WARRANT AUTHORIZING      1,636        

DIRECT DEPOSIT FOR PAYMENT OF A COUNTY OBLIGATION IN ACCORDANCE    1,637        

WITH DIVISION (F) OF SECTION 9.37 OF THE REVISED CODE, of the      1,638        

auditor specifying the name of the party entitled to such money,   1,639        

on what account, and upon whose allowance, if not fixed by law.    1,640        

      Sec. 319.16.  The county auditor shall issue warrants,       1,649        

INCLUDING ELECTRONIC WARRANTS AUTHORIZING DIRECT DEPOSIT FOR       1,650        

PAYMENT OF COUNTY OBLIGATIONS IN ACCORDANCE WITH DIVISION (F) OF   1,651        

SECTION 9.37 OF THE REVISED CODE, on the county treasurer for all  1,653        

moneys payable from the county treasury, upon presentation of the  1,654        

proper order or voucher and evidentiary matter for the moneys,     1,655        

and keep a record of all such warrants showing the number, date    1,656        

of issue, amount for which drawn, in whose favor, for what         1,657        

purpose, and on what fund.  The auditor shall not issue a warrant  1,658        

                                                          41     


                                                                 
for the payment of any claim against the county, unless it is      1,659        

allowed by the board of county commissioners, except where the     1,660        

amount due is fixed by law or is allowed by an officer or          1,661        

tribunal, including a county board of mental health or county      1,662        

board of mental retardation and developmental disabilities, so     1,663        

authorized by law.  If the auditor questions the validity of an    1,664        

expenditure that is within available appropriations and for which  1,665        

a proper order or voucher and evidentiary matter is presented,     1,666        

the auditor shall notify the board, officer, or tribunal who       1,667        

presented the voucher.  If the board, officer, or tribunal         1,668        

determines that the expenditure is valid and the auditor           1,669        

continues to refuse to issue the appropriate warrant on the        1,670        

county treasury, a writ of mandamus may be sought.  The court      1,671        

shall issue a writ of mandamus for issuance of the warrant if the  1,672        

court determines that the claim is valid.                          1,673        

      Evidentiary matter includes original invoices, receipts,     1,675        

bills and checks, and legible copies of contracts.                 1,676        

      Sec. 321.15.  No money shall be paid from the county         1,685        

treasury, or transferred to any person for disbursement, except    1,686        

on the warrant of the county auditor, INCLUDING AN ELECTRONIC      1,687        

WARRANT AUTHORIZING DIRECT DEPOSIT, IN ACCORDANCE WITH DIVISION    1,688        

(F) OF SECTION 9.37 OF THE REVISED CODE, FOR PAYMENT OF COUNTY     1,689        

OBLIGATIONS.                                                                    

      Sec. 321.16.  (A)  When a warrant drawn on him as THE        1,698        

county treasurer by the county auditor is presented for payment,   1,701        

if there is money in the county treasury or depository to the      1,702        

credit of the fund on which it is drawn, and the warrant is                     

endorsed by the payee thereof, the treasurer shall redeem it by    1,703        

payment of cash or by check on the depository.                     1,704        

      (B)  THE WARRANT, AND ALL INFORMATION RELATED TO THE         1,706        

PRESENTMENT OF THE WARRANT, MAY BE PROVIDED ELECTRONICALLY TO THE  1,707        

COUNTY TREASURER.                                                               

      Sec. 321.17.  When a warrant is presented to the county      1,716        

treasurer for payment, and is not paid, for want of money          1,717        

                                                          42     


                                                                 
belonging to the particular fund on which it is drawn, the         1,718        

treasurer shall indorse RECORD the warrant, "Not AS NOT paid for   1,719        

want of funds," with the date of its presentation, and sign his    1,720        

name to the warrant.  Such THE warrant shall thereafter bear       1,722        

interest at the rate of six per cent per annum YEAR.  A            1,724        

memorandum of all such warrants shall be kept by the treasurer in  1,725        

a book for that purpose.                                           1,726        

      Section 2.  That existing sections 9.37, 129.60, 135.12,     1,728        

135.14, 135.18, 135.181, 135.33, 135.341, 135.35, 135.37, 307.55,  1,729        

319.16, 321.15, 321.16, and 321.17 of the Revised Code are hereby  1,731        

repealed.