(2) For the treasurer or governing board of the political | 26 |
subdivision depositing the interim moneys pursuant to division | 27 |
(A)(1) of this section, the eligible public depository selected | 28 |
pursuant to that division invests the interim moneys in | 29 |
certificates of deposit of one or more federally insured banks or | 30 |
savings and loan associations, wherever located. The full amount | 31 |
of principal and any accrued interest of each certificate of | 32 |
deposit invested in pursuant to division (A)(2) of this section | 33 |
shall be insured by federal deposit insurance. | 34 |
(4) At the same time that the eligible public depository | 40 |
selected in accordance with division (A)(1) of this section | 41 |
invests the deposit received pursuant to that division in the | 42 |
certificates of deposit described in division (A)(2) of this | 43 |
section, and the certificates of deposit are issued by the bank or | 44 |
savings and loan association, the eligible public depository | 45 |
receives an amount of deposits from customers of other federally | 46 |
insured financial institutions, wherever located, that are equal | 47 |
to or greater than the amount of the interim money initially | 48 |
deposited pursuant to division (A)(1) of this section by the | 49 |
treasurer or governing board of a political subdivision. | 50 |
Sec. 135.18. (A) The treasurer, before making the initial | 55 |
deposit in a public depository pursuant to an award made under | 56 |
sections 135.01 to 135.21 of the Revised Code, except as provided | 57 |
in section 135.144 of the Revised Code, shall require the | 58 |
institution designated as a public depository to pledge to and | 59 |
deposit with the treasurer, as security for the repayment of all | 60 |
public
moneys to be deposited in the public depository during the | 61 |
period
of designation pursuant to the award, eligible securities | 62 |
of
aggregate market value equal to the excess of the amount of | 63 |
public moneys to be at the time so deposited, over and above such | 64 |
the
portion or amount of such moneys as is at suchthat time | 65 |
insured by
the
federal deposit insurance corporation or by any | 66 |
other agency
or
instrumentality of the federal government. In the | 67 |
case of any
deposit other
than the initial
deposit made during the | 68 |
period of
designation, the amount of the
aggregate market value of | 69 |
securities required to be pledged and
deposited shall be equal to | 70 |
the difference between the amount of
public moneys on deposit in | 71 |
such public depository plus the
amount to be so deposited, minus | 72 |
the portion or amount of the
aggregate as is at the time insured | 73 |
as provided in this section. The
treasurer may require additional | 74 |
eligible securities to be
deposited to provide for any | 75 |
depreciation which may occur in the
market value of any of the | 76 |
securities so deposited. | 77 |
(1) Bonds, notes, or other obligations of the United
States; | 80 |
or bonds, notes, or other obligations guaranteed as to
principal | 81 |
and interest by the United States or those for which
the faith of | 82 |
the United States is pledged for the payment of
principal and | 83 |
interest thereon, by language appearing in the
instrument | 84 |
specifically providing such guarantee or pledge and
not merely by | 85 |
interpretation or otherwise; | 86 |
(2) Bonds, notes, debentures, letters of credit, or other | 87 |
obligations or
securities issued by any federal government agency | 88 |
or instrumentality, or the
export-import bank of Washington; | 89 |
bonds, notes, or other
obligations guaranteed as to principal and | 90 |
interest by the United
States or those for which the faith of the | 91 |
United States is
pledged for the payment of principal and interest | 92 |
thereon, by
interpretation or otherwise and not by language | 93 |
appearing in the
instrument specifically providing such guarantee | 94 |
or pledge; | 95 |
(7) Bonds and other obligations of any county, township, | 106 |
school district, municipal corporation, or other legally | 107 |
constituted taxing subdivision of this state, which is not at the | 108 |
time of such deposit, in default in the payment of principal or | 109 |
interest on any of its bonds or other obligations, for which the | 110 |
full faith and credit of the issuing subdivision is
pledged; | 111 |
(11) Bonds or other obligations of any county, municipal | 125 |
corporation, or other legally constituted taxing subdivision of | 126 |
another state of the United States, or of any instrumentality of | 127 |
such county, municipal corporation, or other taxing subdivision, | 128 |
for which the full faith and credit of the issuer is pledged and, | 129 |
at the time of purchase of the bonds or other obligations, rated | 130 |
in one of the two highest categories by at least one nationally | 131 |
recognized standard rating service. | 132 |
(C) If the public depository fails to pay over any part of | 133 |
the public deposit made therein as provided by law, the treasurer | 134 |
shall sell at public sale any of the bonds or other securities | 135 |
deposited with the treasurer pursuant to this section or section | 136 |
131.09 of the Revised Code, or shall draw on any letter of credit | 137 |
to the
extent of suchthe failure to pay. Thirty days' notice of | 138 |
suchthe
sale shall be
given in a newspaper of general circulation | 139 |
at
Columbus, in the
case of the treasurer of state, and at the | 140 |
county
seat of the
county in which the office of the treasurer is | 141 |
located, in the
case of any other treasurer. When a sale of bonds | 142 |
or other
securities has been so made and upon payment to the | 143 |
treasurer of
the purchase money, the treasurer shall transfer such | 144 |
bonds or
securities whereupon the absolute ownership of such bonds | 145 |
or
securities shall pass to the purchasers. Any surplus remaining | 146 |
after deducting the amount due the state or subdivision and | 147 |
expenses of sale shall be paid to the public depository. | 148 |
(D) An institution designated as a public depository may,
by | 149 |
written notice to the treasurer, designate a qualified trustee
and | 150 |
deposit the eligible securities required by this section with
the | 151 |
trustee for safekeeping for the account of the treasurer and
the | 152 |
institution as a public depository, as their respective
rights to | 153 |
and interests in such securities under this section may
appear and | 154 |
be asserted by written notice to or demand upon the
trustee. In | 155 |
suchwhich case, the treasurer shall accept the written
receipt of | 156 |
the
trustee describing the securities whichthat have been | 157 |
deposited with
the trustee by the public depository, a copy of | 158 |
which shall also
be delivered to the public depository.
Thereupon | 159 |
all such
securities so deposited with the trustee are
deemed to be | 160 |
pledged
with the treasurer and to be deposited with
the treasurer, | 161 |
for all
the purposes of this section. | 162 |
(F) When the public depository has deposited eligible | 168 |
securities described in division (B)(1) of this section with a | 169 |
trustee for safekeeping, the public depository may at any time | 170 |
substitute or exchange eligible securities described in division | 171 |
(B)(1) of this section having a current market value equal to or | 172 |
greater than the current market value of the securities then on | 173 |
deposit and for which they are to be substituted or exchanged, | 174 |
without specific authorization from any governing board, boards, | 175 |
or treasurer of any such substitution or exchange. | 176 |
(G) When the public depository has deposited eligible | 177 |
securities described in divisions (B)(2) to (9) of this
section | 178 |
with a trustee for safekeeping, the public depository may at any | 179 |
time substitute or exchange eligible securities having a current | 180 |
market value equal to or greater than the current market value of | 181 |
the securities then on deposit and for which they are to be | 182 |
substituted or exchanged without specific authorization of any | 183 |
governing board, boards, or treasurer of any such substitution or | 184 |
exchange only if: | 185 |
(1) The treasurer has authorized the public depository to | 186 |
make such substitution or exchange on a continuing basis during a | 187 |
specified period without prior approval of each substitution or | 188 |
exchange. SuchThe authorization may be effected by the treasurer | 189 |
sending to the trustee a written notice stating that substitution | 190 |
may be effected on a continuing basis during a specified period | 191 |
which shall not extend beyond the end of the period of
designation | 192 |
during which the notice is given. The trustee may
rely upon such | 193 |
this
notice and upon the period of authorization stated
therein | 194 |
and
upon the period of designation stated therein. | 195 |
(2) No continuing authorization for substitution has been | 196 |
given by the treasurer, the public depository notifies the | 197 |
treasurer and the trustee of an intended substitution or
exchange, | 198 |
and the treasurer fails to object to the trustee as to
the | 199 |
eligibility or market value of the securities being
substituted | 200 |
within ten calendar days after the date appearing on
the notice of | 201 |
proposed substitution. The notice to the treasurer
and to the | 202 |
trustee shall be given in writing and delivered
personally or by | 203 |
certified or registered mail with a return
receipt requested. The | 204 |
trustee may assume in any case that the
notice has been delivered | 205 |
to the treasurer. In order for
objections of the treasurer to be | 206 |
effective, receipt of the
objections must be acknowledged in | 207 |
writing by the trustee. | 208 |
(I) Any federal reserve bank or branch thereof located in | 216 |
this state
or federal home loan bank, without compliance with | 217 |
Chapter 1111. of the Revised Code and
without becoming
subject to | 218 |
any other law
of this state relative to the exercise by | 219 |
corporations of trust
powers generally, is qualified to act as | 220 |
trustee for the
safekeeping of securities, under this section.
Any | 221 |
institution
mentioned in section 135.03 of the Revised Code
that | 222 |
holds a
certificate of qualification issued by the
superintendent | 223 |
of
financial institutions or any institution
complying with | 224 |
sections 1111.04,
1111.05, and 1111.06 of the
Revised Code, is | 225 |
qualified
to act as trustee for the safekeeping
of securities, | 226 |
other than
those belonging to itself, under this
section. Upon | 227 |
application
to the superintendent in writing by any
suchan | 228 |
institution, the
superintendent
shall investigate the
applicant | 229 |
and ascertain whether or not it
has been authorized to
execute and | 230 |
accept trusts in this state
and has safe and adequate
vaults and | 231 |
efficient supervision
thereof for the storage and
safekeeping | 232 |
within this state of such
securities. If the
superintendent finds | 233 |
that the applicant has
been so authorized and
does havehas such | 234 |
vaults and supervision
thereof, the superintendent
shall approve | 235 |
the application and issue
a certificate to that
effect, the | 236 |
original or any certified copy of which
shall be
conclusive | 237 |
evidence that the institution therein named is
qualified to act as | 238 |
trustee for the purposes of this section with
respect to | 239 |
securities other than those belonging to itself. | 240 |
Notwithstanding the fact that a public depository is
required | 241 |
to pledge eligible securities in certain amounts to
secure | 242 |
deposits of public moneys, a trustee shall havehas no duty or | 243 |
obligation to determine the eligibility, market value, or face | 244 |
value of any securities deposited with the trustee by a public | 245 |
depository. This applies in all situations including, without | 246 |
limitation, a substitution or exchange of securities. | 247 |
Any charges or compensation of a designated trustee for | 248 |
acting as such under this section shall be paid by the public | 249 |
depository and in no event shall be chargeable to the state or
the | 250 |
subdivision or to the treasurer or to any officer of the
state or | 251 |
subdivision. The charges or compensation shall
not be
a lien or | 252 |
charge upon the securities deposited for safekeeping
prior or | 253 |
superior to the rights to and interests in suchthe
securities of | 254 |
the
state or the subdivision or of the treasurer.
The treasurer | 255 |
and
the treasurer's bonders or surety
shall be relieved from any | 256 |
liability to the state or the subdivision or to the
public | 257 |
depository for the loss or destruction of any securities
deposited | 258 |
with a qualified trustee pursuant to this section. | 259 |
(B) In lieu of the pledging requirements prescribed in | 271 |
sections 135.18 and 135.37 of the Revised Code, an institution | 272 |
designated as a public depository at its option may pledge a | 273 |
single pool of eligible securities to secure the repayment of all | 274 |
public moneys deposited in the institution and not otherwise | 275 |
secured pursuant to law, provided that at all times the total | 276 |
market
value of the securities so pledged is at least equal to
one | 277 |
hundred five per cent of the total amount of all public
deposits | 278 |
to be secured by the pooled securities, including the
portion of | 279 |
such depositsthat are not covered by any federal deposit | 280 |
insurance. Each such
institution shall carry in its accounting | 281 |
records at all times a
general ledger or other appropriate
account | 282 |
of the total amount of
all public deposits to be secured
by the | 283 |
pool, as determined at
the opening of business each day,
and the | 284 |
total market value of
securities pledged to secure such
deposits. | 285 |
(E) An institution designated as a public depository shall | 297 |
designate a qualified trustee and deposit with the trustee for | 298 |
safekeeping the eligible securities pledged pursuant to division | 299 |
(B) of this section. The institution shall give written notice
of | 300 |
the qualified trustee to any treasurer or treasurers
depositing | 301 |
public moneys for which such securities are pledged. The
treasurer | 302 |
shall accept the written receipt of the trustee
describing the | 303 |
pool of securities so deposited by the depository,
a copy of which | 304 |
also shall be delivered to the depository. | 305 |
(F) Any federal reserve bank or branch thereof located in | 306 |
this state
or federal home loan bank, without compliance with | 307 |
Chapter 1111. of the Revised Code and
without becoming
subject to | 308 |
any other law
of this state relative to the exercise by | 309 |
corporations of trust
powers generally, is qualified to act as | 310 |
trustee for the
safekeeping of securities, under this section.
Any | 311 |
institution
mentioned in section 135.03 or 135.32 of the
Revised | 312 |
Code which holds a
certificate of qualification issued by
the | 313 |
superintendent of financial
institutions or any
institution | 314 |
complying with sections 1111.04, 1111.05, and 1111.06 of the | 315 |
Revised Code is qualified to act as trustee
for the safekeeping of | 316 |
securities under this section, other than
those belonging to | 317 |
itself or to an affiliate as defined in
division (A) of section | 318 |
1101.01 of the Revised Code. Upon
application to the | 319 |
superintendent in writing by any suchan
institution, the | 320 |
superintendent shall investigate the applicant and ascertain | 321 |
whether or not it has been authorized to execute and accept
trusts | 322 |
in this state and has safe and adequate vaults and
efficient | 323 |
supervision thereof for the storage and safekeeping of
such | 324 |
securities. If the superintendent finds that the applicant
has | 325 |
been so authorized and does havehas such vaults and supervision | 326 |
thereof, the superintendent shall approve the application and | 327 |
issue
a certificate
to that effect, the original or any certified | 328 |
copy of which shall
be conclusive evidence that the institution | 329 |
named therein is
qualified to act as trustee for the purposes of | 330 |
this section with
respect to securities other than those belonging | 331 |
to itself or to
an affiliate. | 332 |
(G) The public depository at any time may substitute, | 333 |
exchange, or release eligible securities deposited with a | 334 |
qualified trustee pursuant to this section, provided that such | 335 |
substitution, exchange, or release does not reduce the total | 336 |
market value of the securities to an amount that is less than one | 337 |
hundred five per cent of the total amount of public deposits
as | 338 |
determined pursuant to division (B) of this section. | 339 |
(H) Notwithstanding the fact that a public depository is | 340 |
required to pledge eligible securities in certain amounts to | 341 |
secure deposits of public moneys, a trustee shall havehas no duty | 342 |
or
obligation to determine the eligibility, market value, or face | 343 |
value of any securities deposited with the trustee by a public | 344 |
depository. This applies in all situations including, but not | 345 |
limited to, a substitution or exchange of securities, but | 346 |
excluding those situations effectuated by division (I) of this | 347 |
section in which the trustee is required to determine face and | 348 |
market value. | 349 |
(I) If the public depository fails to pay over any part of | 350 |
the public deposits made therein as provided by law and secured | 351 |
pursuant to division (B) of this section, the treasurer shall
give | 352 |
written notice of this failure to the qualified trustee
holding | 353 |
the pool of securities pledged against public moneys
deposited in | 354 |
the depository, and at the same time shall send a
copy of this | 355 |
notice to the depository. Upon receipt of suchthis
notice, the | 356 |
trustee shall transfer to the treasurer for public
sale such of, | 357 |
the pooled securities as may bethat are necessary to produce
an | 358 |
amount
equal to the deposits made by the treasurer and not
paid | 359 |
over,
less the portion of suchthe deposits covered by any
federal | 360 |
deposit
insurance, plus any accrued interest due on suchthe | 361 |
deposits;
however, the amount shall not exceed the state's
or | 362 |
subdivision's
proportional security interest in the market value | 363 |
of the pool as
of the date of the depository's failure to pay
over | 364 |
the deposits,
as suchthat interest and value are determined by | 365 |
the trustee. The
treasurer shall sell at public sale any of the | 366 |
bonds or other
securities so transferred. Thirty days' notice of | 367 |
suchthe sale shall
be given in a newspaper of general circulation | 368 |
at
Columbus, in the
case of the treasurer of state, and at the | 369 |
county seat of the
county in which the office of the treasurer is | 370 |
located, in the
case of any other treasurer. When a sale of
bonds | 371 |
or other
securities has been so made and upon payment to
the | 372 |
treasurer of
the purchase money, the treasurer shall transfer
such | 373 |
bonds or
securities whereupon the absolute ownership of such
bonds | 374 |
or
securities shall pass to the purchasers. Any surplus
after | 375 |
deducting the amount due the state or subdivision and
expenses of | 376 |
sale shall be paid to the public depository. | 377 |
(J) Any charges or compensation of a designated trustee
for | 378 |
acting as such under this section shall be paid by the public | 379 |
depository and in no event shall be chargeable to the state or | 380 |
subdivision or to the treasurer or to any officer of the state or | 381 |
subdivision. The charges or compensation shall not be a
lien or | 382 |
charge upon the securities deposited for safekeeping prior or | 383 |
superior to the rights to and interests in suchthe securities of | 384 |
the
state or subdivision or of the treasurer. The treasurer and | 385 |
the
treasurer's
bonders or surety shall be relieved from any | 386 |
liability
to
the state or subdivision or to the public depository | 387 |
for the
loss or
destruction of any securities deposited with a | 388 |
qualified
trustee
pursuant to this section. | 389 |
(K) In lieu of placing its unqualified endorsement on each | 390 |
security, a public depository pledging securities pursuant to | 391 |
division (B) of this section that are not negotiable without its | 392 |
endorsement or assignment may furnish to the qualified trustee | 393 |
holding the securities an appropriate resolution and irrevocable | 394 |
power of attorney authorizing the trustee to assign the | 395 |
securities. The resolution and power of attorney shall conform
to | 396 |
such terms and conditions as the trustee prescribes. | 397 |
(L) Upon request of a treasurer no more often than four
times | 398 |
per year, a public depository shall report the amount of
public | 399 |
moneys deposited by the treasurer and secured pursuant to
division | 400 |
(B) of this section, and the total market value of the
pool of | 401 |
securities pledged to secure public moneys held by the
depository, | 402 |
including those deposited by the treasurer. Upon
request of a | 403 |
treasurer no more often than four times per year, a
qualified | 404 |
trustee shall report the total market
value of the pool
of | 405 |
securities deposited with it by the depository and shall
provide | 406 |
an itemized list of the securities in the pool. These
reports | 407 |
shall be made as of the date the treasurer specifies. | 408 |
(2) For the investing authority depositing the inactive | 420 |
moneys pursuant to division (B)(1) of this section, the eligible | 421 |
public depository selected pursuant to that division invests the | 422 |
inactive moneys in certificates of deposit of one or more | 423 |
federally insured banks or savings and loan associations, wherever | 424 |
located. The full amount of principal and any accrued interest of | 425 |
each certificate of deposit invested in pursuant to division | 426 |
(B)(2) of this section shall be insured by federal deposit | 427 |
insurance. | 428 |
(4) At the same time that the eligible public depository | 434 |
selected in accordance with division (B)(1) of this section | 435 |
invests the deposit received pursuant to that division in the | 436 |
certificates of deposit described in division (B)(2) of this | 437 |
section, and the certificates of deposit are issued by the bank or | 438 |
savings and loan association, the eligible public depository | 439 |
receives an amount of deposits from customers of other federally | 440 |
insured financial institutions, wherever located, that are equal | 441 |
to or greater than the amount initially deposited by the investing | 442 |
authority pursuant to division (B)(1) of this section. | 443 |