Sec. 135.145. (A) In addition to the authority provided in | 12 |
section 135.14 of the Revised Code for the investment or deposit | 13 |
of interim moneys, the treasurer or governing board of a political | 14 |
subdivision, upon the deposit of interim moneys with, or the award | 15 |
of active or inactive deposits to, an eligible public depository | 16 |
described in section 135.03 of the Revised Code and designated | 17 |
pursuant to section 135.12 of the Revised Code, may authorize the | 18 |
public depository to arrange for the redeposit of such public | 19 |
moneys in accordance with the following conditions: | 20 |
Sec. 135.18. (A) The treasurer, before making the initial | 45 |
deposit in a public depository pursuant to an award made under | 46 |
sections 135.01 to 135.21 of the Revised Code, except as provided | 47 |
in section 135.144 or 135.145 of the Revised Code, shall require | 48 |
the institution designated as a public depository to pledge to and | 49 |
deposit with the treasurer, as security for the repayment of all | 50 |
public moneys to be deposited in the public depository during the | 51 |
period of designation pursuant to the award, eligible securities | 52 |
of aggregate market value equal to the excess of the amount of | 53 |
public moneys to be at the time so deposited, over and above the | 54 |
portion or amount of such moneys as is at that time insured by the | 55 |
federal deposit insurance corporation or by any other agency or | 56 |
instrumentality of the federal government. In the case of any | 57 |
deposit other than the initial deposit made during the period of | 58 |
designation, the amount of the aggregate market value of | 59 |
securities required to be pledged and deposited shall be equal to | 60 |
the difference between the amount of public moneys on deposit in | 61 |
such public depository plus the amount to be so deposited, minus | 62 |
the portion or amount of the aggregate as is at the time insured | 63 |
as provided in this section. The treasurer may require additional | 64 |
eligible securities to be deposited to provide for any | 65 |
depreciation which may occur in the market value of any of the | 66 |
securities so deposited. | 67 |
(1) Bonds, notes, or other obligations of the United States; | 70 |
or bonds, notes, or other obligations guaranteed as to principal | 71 |
and interest by the United States or those for which the faith of | 72 |
the United States is pledged for the payment of principal and | 73 |
interest thereon, by language appearing in the instrument | 74 |
specifically providing such guarantee or pledge and not merely by | 75 |
interpretation or otherwise; | 76 |
(2) Bonds, notes, debentures, letters of credit, or other | 77 |
obligations or securities issued by any federal government agency | 78 |
or instrumentality, or the export-import bank of Washington; | 79 |
bonds, notes, or other obligations guaranteed as to principal and | 80 |
interest by the United States or those for which the faith of the | 81 |
United States is pledged for the payment of principal and interest | 82 |
thereon, by interpretation or otherwise and not by language | 83 |
appearing in the instrument specifically providing such guarantee | 84 |
or pledge; | 85 |
(7) Bonds and other obligations of any county, township, | 96 |
school district, municipal corporation, or other legally | 97 |
constituted taxing subdivision of this state, which is not at the | 98 |
time of such deposit, in default in the payment of principal or | 99 |
interest on any of its bonds or other obligations, for which the | 100 |
full faith and credit of the issuing subdivision is pledged; | 101 |
(11) Bonds or other obligations of any county, municipal | 115 |
corporation, or other legally constituted taxing subdivision of | 116 |
another state of the United States, or of any instrumentality of | 117 |
such county, municipal corporation, or other taxing subdivision, | 118 |
for which the full faith and credit of the issuer is pledged and, | 119 |
at the time of purchase of the bonds or other obligations, rated | 120 |
in one of the two highest categories by at least one nationally | 121 |
recognized standard rating service. | 122 |
(C) If the public depository fails to pay over any part of | 123 |
the public deposit made therein as provided by law, the treasurer | 124 |
shall sell at public sale any of the bonds or other securities | 125 |
deposited with the treasurer pursuant to this section or section | 126 |
131.09 of the Revised Code, or shall draw on any letter of credit | 127 |
to the extent of the failure to pay. Thirty days' notice of the | 128 |
sale shall be given in a newspaper of general circulation at | 129 |
Columbus, in the case of the treasurer of state, and at the county | 130 |
seat of the county in which the office of the treasurer is | 131 |
located, in the case of any other treasurer. When a sale of bonds | 132 |
or other securities has been so made and upon payment to the | 133 |
treasurer of the purchase money, the treasurer shall transfer such | 134 |
bonds or securities whereupon the absolute ownership of such bonds | 135 |
or securities shall pass to the purchasers. Any surplus remaining | 136 |
after deducting the amount due the state or subdivision and | 137 |
expenses of sale shall be paid to the public depository. | 138 |
(D) An institution designated as a public depository may, by | 139 |
written notice to the treasurer, designate a qualified trustee and | 140 |
deposit the eligible securities required by this section with the | 141 |
trustee for safekeeping for the account of the treasurer and the | 142 |
institution as a public depository, as their respective rights to | 143 |
and interests in such securities under this section may appear and | 144 |
be asserted by written notice to or demand upon the trustee. In | 145 |
which case, the treasurer shall accept the written receipt of the | 146 |
trustee describing the securities that have been deposited with | 147 |
the trustee by the public depository, a copy of which shall also | 148 |
be delivered to the public depository. Thereupon all securities so | 149 |
deposited with the trustee are deemed to be pledged with the | 150 |
treasurer and to be deposited with the treasurer, for all the | 151 |
purposes of this section. | 152 |
(F) When the public depository has deposited eligible | 158 |
securities described in division (B)(1) of this section with a | 159 |
trustee for safekeeping, the public depository may at any time | 160 |
substitute or exchange eligible securities described in division | 161 |
(B)(1) of this section having a current market value equal to or | 162 |
greater than the current market value of the securities then on | 163 |
deposit and for which they are to be substituted or exchanged, | 164 |
without specific authorization from any governing board, boards, | 165 |
or treasurer of any such substitution or exchange. | 166 |
(G) When the public depository has deposited eligible | 167 |
securities described in divisions (B)(2) to (9) of this section | 168 |
with a trustee for safekeeping, the public depository may at any | 169 |
time substitute or exchange eligible securities having a current | 170 |
market value equal to or greater than the current market value of | 171 |
the securities then on deposit and for which they are to be | 172 |
substituted or exchanged without specific authorization of any | 173 |
governing board, boards, or treasurer of any such substitution or | 174 |
exchange only if: | 175 |
(1) The treasurer has authorized the public depository to | 176 |
make such substitution or exchange on a continuing basis during a | 177 |
specified period without prior approval of each substitution or | 178 |
exchange. The authorization may be effected by the treasurer | 179 |
sending to the trustee a written notice stating that substitution | 180 |
may be effected on a continuing basis during a specified period | 181 |
which shall not extend beyond the end of the period of designation | 182 |
during which the notice is given. The trustee may rely upon this | 183 |
notice and upon the period of authorization stated therein and | 184 |
upon the period of designation stated therein. | 185 |
(2) No continuing authorization for substitution has been | 186 |
given by the treasurer, the public depository notifies the | 187 |
treasurer and the trustee of an intended substitution or exchange, | 188 |
and the treasurer fails to object to the trustee as to the | 189 |
eligibility or market value of the securities being substituted | 190 |
within ten calendar days after the date appearing on the notice of | 191 |
proposed substitution. The notice to the treasurer and to the | 192 |
trustee shall be given in writing and delivered personally or by | 193 |
certified or registered mail with a return receipt requested. The | 194 |
trustee may assume in any case that the notice has been delivered | 195 |
to the treasurer. In order for objections of the treasurer to be | 196 |
effective, receipt of the objections must be acknowledged in | 197 |
writing by the trustee. | 198 |
(I) Any federal reserve bank or branch thereof located in | 206 |
this state or federal home loan bank, without compliance with | 207 |
Chapter 1111. of the Revised Code and without becoming subject to | 208 |
any other law of this state relative to the exercise by | 209 |
corporations of trust powers generally, is qualified to act as | 210 |
trustee for the safekeeping of securities, under this section. Any | 211 |
institution mentioned in section 135.03 of the Revised Code that | 212 |
holds a certificate of qualification issued by the superintendent | 213 |
of financial institutions or any institution complying with | 214 |
sections 1111.04, 1111.05, and 1111.06 of the Revised Code, is | 215 |
qualified to act as trustee for the safekeeping of securities, | 216 |
other than those belonging to itself, under this section. Upon | 217 |
application to the superintendent in writing by an institution, | 218 |
the superintendent shall investigate the applicant and ascertain | 219 |
whether or not it has been authorized to execute and accept trusts | 220 |
in this state and has safe and adequate vaults and efficient | 221 |
supervision thereof for the storage and safekeeping within this | 222 |
state of securities. If the superintendent finds that the | 223 |
applicant has been so authorized and has such vaults and | 224 |
supervision thereof, the superintendent shall approve the | 225 |
application and issue a certificate to that effect, the original | 226 |
or any certified copy of which shall be conclusive evidence that | 227 |
the institution therein named is qualified to act as trustee for | 228 |
the purposes of this section with respect to securities other than | 229 |
those belonging to itself. | 230 |
Notwithstanding the fact that a public depository is required | 231 |
to pledge eligible securities in certain amounts to secure | 232 |
deposits of public moneys, a trustee has no duty or obligation to | 233 |
determine the eligibility, market value, or face value of any | 234 |
securities deposited with the trustee by a public depository. This | 235 |
applies in all situations including, without limitation, a | 236 |
substitution or exchange of securities. | 237 |
Any charges or compensation of a designated trustee for | 238 |
acting as such under this section shall be paid by the public | 239 |
depository and in no event shall be chargeable to the state or the | 240 |
subdivision or to the treasurer or to any officer of the state or | 241 |
subdivision. The charges or compensation shall not be a lien or | 242 |
charge upon the securities deposited for safekeeping prior or | 243 |
superior to the rights to and interests in the securities of the | 244 |
state or the subdivision or of the treasurer. The treasurer and | 245 |
the treasurer's bonders or surety shall be relieved from any | 246 |
liability to the state or the subdivision or to the public | 247 |
depository for the loss or destruction of any securities deposited | 248 |
with a qualified trustee pursuant to this section. | 249 |
Sec. 135.354. (A) In addition to the authority provided in | 250 |
section 135.35 of the Revised Code for the investment or deposit | 251 |
of inactive moneys, the investing authority of a county, upon the | 252 |
deposit of active or inactive moneys with an eligible public | 253 |
depository described in section 135.32 of the Revised Code and | 254 |
selected by the investing authority, may authorize the public | 255 |
depository to arrange for the redeposit of such public moneys in | 256 |
accordance with the following conditions: | 257 |
Sec. 135.37. (A) AnyExcept as provided in section 135.353 | 281 |
or 135.354 of the Revised Code, any institution described in | 282 |
section 135.32 of the Revised Code shall, at the time it receives | 283 |
a deposit of public moneys under section 135.33 or 135.35 of the | 284 |
Revised Code, pledge to and deposit with the investing authority, | 285 |
as security for the repayment of all public moneys to be | 286 |
deposited, eligible securities of aggregate market value equal to | 287 |
or in excess of the amount of public moneys to be at the time so | 288 |
deposited. Any securities listed in division (B) of section 135.18 | 289 |
of the Revised Code are eligible for such purpose. The collateral | 290 |
so pledged or deposited may be in an amount that when added to the | 291 |
portion of the deposit insured by the federal deposit insurance | 292 |
corporation or any other agency or instrumentality of the federal | 293 |
government will, in the aggregate, equal or exceed the amount of | 294 |
public moneys so deposited; provided that, when an investment of | 295 |
inactive moneys consists of the purchase of one or more of the | 296 |
type of securities listed in division (A)(1) or (2) of section | 297 |
135.35 of the Revised Code, no additional collateral need be | 298 |
pledged or deposited. | 299 |
(E) A public depository may designate, in accordance with the | 329 |
provisions of division (D) of section 135.18 of the Revised Code, | 330 |
a trustee for the safekeeping of any pledged securities. Such | 331 |
trustee shall be any bank or other institution eligible as a | 332 |
trustee under division (I) of section 135.18 of the Revised Code, | 333 |
except that, for the purposes of this section, a bank to which a | 334 |
certificate of qualification is issued shall be an institution | 335 |
mentioned in division (A) of section 135.32 of the Revised Code. | 336 |