As Introduced

129th General Assembly Regular Session 2011-2012

H. B. No. 435

Representative Beck 

Cosponsors: Representatives Terhar, Thompson, Henne 

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A BILL

To enact section 135.146 of the Revised Code to

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authorize boards of township trustees to invest

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all or part of township interim funds in corporate

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bonds.

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

Section 1. That section 135.146 of the Revised Code be	5
enacted to read as follows:	6

Sec. 135.146. (A) In addition to the investments authorized	7
by section 135.14 of the Revised Code, a board of township	8
trustees, by majority vote of its members, may authorize the	9
township treasurer to invest any part or all of the interim moneys	10
of the township, which are available for investment at any one	11
time, in debt interests that have been registered with the United	12
States securities and exchange commission, rated in one of the	13
three highest rating classifications by at least two nationally	14
recognized rating agencies, and issued by entities that are	15
defined in division (D) of section 1705.01 of the Revised Code.	16

(B) No investment authorized under this section shall be	17
made, whether or not authorized by a board of township trustees,	18
unless the township treasurer has completed training for making	19
the types of investments authorized under this section. The type	20
and amount of the training shall be approved by the treasurer of	21
state, and shall be provided by the treasurer of state under	22
section 135.22 of the Revised Code.	23

(C) The township treasurer shall prepare annually and submit	24
to the auditor of state, and to the treasurer of state, on or	25
before the thirty-first day of August, a report listing each	26
investment made under this section during the preceding fiscal	27
year, income earned from the investments, fees and commissions	28
paid pursuant to division (D) of this section, and any other	29
information required by the auditor of state or the treasurer of	30
state.	31

(D) A board of township trustees may make appropriations and	32
expenditures for fees and commissions in connection with	33
investments made under this section.	34

(E) Any investment made under this section shall mature	35
within five years from the date of settlement.	36

(F) If any of the debt interests acquired under this section	37
ceases to be rated as required, its issuer shall notify the	38
township treasurer in writing of this fact within twenty-four	39
hours. At any time thereafter the township treasurer may require	40
collateralization, by securities authorized for investment under	41
section 135.143 of the Revised Code, at the rate of one hundred	42
two per cent of any remaining obligation of the issuer. The	43
collateral shall be delivered to and held by a custodian	44
acceptable to the township treasurer and marked to market daily.	45
If the value of the collateral falls below the level required by	46
this division, the insufficiency shall be cured within twelve	47
hours. Unlimited substitution shall be allowed of comparable	48
securities.	49