Sec. 135.13. Inactive deposits shall be evidenced by time | 20 |
certificates of deposit, each of which shall mature not later than | 21 |
the end of the period of designation, and may provide on its face | 22 |
that the amount of such deposit is payable upon written notice to | 23 |
be given a specified period before the date of repayment or by | 24 |
savings or deposit accounts, including, but not limited to, | 25 |
passbook accounts. | 26 |
(2) For the treasurer of state or the treasurer or governing | 42 |
board of the political subdivision depositing the interim moneys | 43 |
pursuant to division (A)(1) of this section, the eligible public | 44 |
depository selected pursuant to that division invests the interim | 45 |
moneys in certificates of deposit of one or more federally insured | 46 |
banks, savings banks, or savings and loan associations, wherever | 47 |
located. The full amount of principal and any accrued interest of | 48 |
each certificate of deposit invested in pursuant to division | 49 |
(A)(2) of this section shall be insured by federal deposit | 50 |
insurance. | 51 |
(4) At the same time that the eligible public depository | 58 |
selected in accordance with division (A)(1) of this section | 59 |
invests the deposit received pursuant to that division in the | 60 |
certificates of deposit described in division (A)(2) of this | 61 |
section, and the certificates of deposit are issued by the bank or | 62 |
savings and loan association, the eligible public depository | 63 |
receives an amount of deposits from customers of other federally | 64 |
insured financial institutions, wherever located, that are equal | 65 |
to or greater than the amount of the interim money initially | 66 |
deposited pursuant to division (A)(1) of this section by the | 67 |
treasurer or governing board of a political subdivisionOn the | 68 |
same date the public moneys are redeposited by the public | 69 |
depository, the public depository may, in its sole discretion, | 70 |
choose whether to receive deposits, in any amount, from other | 71 |
banks, savings banks, or savings and loan associations. | 72 |
Sec. 135.145. (A) In addition to the authority provided in | 83 |
section 135.14 or 135.143 of the Revised Code for the investment | 84 |
or deposit of interim moneys, the treasurer of state or the | 85 |
treasurer or governing board of a political subdivision, upon the | 86 |
deposit of interim moneys with, or the award of active or inactive | 87 |
deposits to, an eligible public depository described in section | 88 |
135.03 of the Revised Code and designated pursuant to section | 89 |
135.12 of the Revised Code, may authorize the public depository to | 90 |
arrange for the redeposit of such public moneys in accordance with | 91 |
the following conditions: | 92 |
(1) The public depository, on or after the date the public | 93 |
moneys are received, arranges for the redeposit of the moneys into | 94 |
deposit accounts in one or more federally insured banks, savings | 95 |
banks, or savings and loan associations that are located in the | 96 |
United States, and acts as custodian of the moneys deposited or | 97 |
redeposited under this section. | 98 |
Sec. 135.18. (A) The treasurer, before making the initial | 122 |
deposit in a public depository pursuant to an award made under | 123 |
sections 135.01 to 135.21 of the Revised Code, except as provided | 124 |
in section 135.144 or 135.145 of the Revised Code, shall require | 125 |
the institution designated as a public depository to pledge to and | 126 |
deposit with the treasurer, as security for the repayment of all | 127 |
public moneys to be deposited in the public depository during the | 128 |
period of designation pursuant to the award, eligible securities | 129 |
of aggregate market value equal to the excess of the amount of | 130 |
public moneys to be at the time so deposited, over and above the | 131 |
portion or amount of such moneys as is at that time insured by the | 132 |
federal deposit insurance corporation or by any other agency or | 133 |
instrumentality of the federal government. In the case of any | 134 |
deposit other than the initial deposit made during the period of | 135 |
designation, the amount of the aggregate market value of | 136 |
securities required to be pledged and deposited shall be equal to | 137 |
the difference between the amount of public moneys on deposit in | 138 |
such public depository plus the amount to be so deposited, minus | 139 |
the portion or amount of the aggregate as is at the time insured | 140 |
as provided in this section. The treasurer may require additional | 141 |
eligible securities to be deposited to provide for any | 142 |
depreciation which may occur in the market value of any of the | 143 |
securities so deposited. | 144 |
(1) Bonds, notes, or other obligations of the United States; | 147 |
or bonds, notes, or other obligations guaranteed as to principal | 148 |
and interest by the United States or those for which the faith of | 149 |
the United States is pledged for the payment of principal and | 150 |
interest thereon, by language appearing in the instrument | 151 |
specifically providing such guarantee or pledge and not merely by | 152 |
interpretation or otherwise; | 153 |
(2) Bonds, notes, debentures, letters of credit, or other | 154 |
obligations or securities issued by any federal government agency | 155 |
or instrumentality, or the export-import bank of Washington; | 156 |
bonds, notes, or other obligations guaranteed as to principal and | 157 |
interest by the United States or those for which the faith of the | 158 |
United States is pledged for the payment of principal and interest | 159 |
thereon, by interpretation or otherwise and not by language | 160 |
appearing in the instrument specifically providing such guarantee | 161 |
or pledge; | 162 |
(7) Bonds and other obligations of any county, township, | 173 |
school district, municipal corporation, or other legally | 174 |
constituted taxing subdivision of this state, which is not at the | 175 |
time of such deposit, in default in the payment of principal or | 176 |
interest on any of its bonds or other obligations, for which the | 177 |
full faith and credit of the issuing subdivision is pledged; | 178 |
(11) Bonds or other obligations of any county, municipal | 192 |
corporation, or other legally constituted taxing subdivision of | 193 |
another state of the United States, or of any instrumentality of | 194 |
such county, municipal corporation, or other taxing subdivision, | 195 |
for which the full faith and credit of the issuer is pledged and, | 196 |
at the time of purchase of the bonds or other obligations, rated | 197 |
in one of the two highest categories by at least one nationally | 198 |
recognized standard rating service. | 199 |
(C) If the public depository fails to pay over any part of | 200 |
the public deposit made therein as provided by law, the treasurer | 201 |
shall sell at public sale any of the bonds or other securities | 202 |
deposited with the treasurer pursuant to this section or section | 203 |
131.09 of the Revised Code, or shall draw on any letter of credit | 204 |
to the extent of the failure to pay. Thirty days' notice of the | 205 |
sale shall be given in a newspaper of general circulation at | 206 |
Columbus, in the case of the treasurer of state, and at the county | 207 |
seat of the county in which the office of the treasurer is | 208 |
located, in the case of any other treasurer. When a sale of bonds | 209 |
or other securities has been so made and upon payment to the | 210 |
treasurer of the purchase money, the treasurer shall transfer such | 211 |
bonds or securities whereupon the absolute ownership of such bonds | 212 |
or securities shall pass to the purchasers. Any surplus remaining | 213 |
after deducting the amount due the state or subdivision and | 214 |
expenses of sale shall be paid to the public depository. | 215 |
(D) An institution designated as a public depository may, by | 216 |
written notice to the treasurer, designate a qualified trustee and | 217 |
deposit the eligible securities required by this section with the | 218 |
trustee for safekeeping for the account of the treasurer and the | 219 |
institution as a public depository, as their respective rights to | 220 |
and interests in such securities under this section may appear and | 221 |
be asserted by written notice to or demand upon the trustee. In | 222 |
which case, the treasurer shall accept the written receipt of the | 223 |
trustee describing the securities that have been deposited with | 224 |
the trustee by the public depository, a copy of which shall also | 225 |
be delivered to the public depository. Thereupon all securities so | 226 |
deposited with the trustee are deemed to be pledged with the | 227 |
treasurer and to be deposited with the treasurer, for all the | 228 |
purposes of this section. | 229 |
(F) When the public depository has deposited eligible | 235 |
securities described in division (B)(1) of this section with a | 236 |
trustee for safekeeping, the public depository may at any time | 237 |
substitute or exchange eligible securities described in division | 238 |
(B)(1) of this section having a current market value equal to or | 239 |
greater than the current market value of the securities then on | 240 |
deposit and for which they are to be substituted or exchanged, | 241 |
without specific authorization from any governing board, boards, | 242 |
or treasurer of any such substitution or exchange. | 243 |
(G) When the public depository has deposited eligible | 244 |
securities described in divisions (B)(2) to (9) of this section | 245 |
with a trustee for safekeeping, the public depository may at any | 246 |
time substitute or exchange eligible securities having a current | 247 |
market value equal to or greater than the current market value of | 248 |
the securities then on deposit and for which they are to be | 249 |
substituted or exchanged without specific authorization of any | 250 |
governing board, boards, or treasurer of any such substitution or | 251 |
exchange only if: | 252 |
(1) The treasurer has authorized the public depository to | 253 |
make such substitution or exchange on a continuing basis during a | 254 |
specified period without prior approval of each substitution or | 255 |
exchange. The authorization may be effected by the treasurer | 256 |
sending to the trustee a written notice stating that substitution | 257 |
may be effected on a continuing basis during a specified period | 258 |
which shall not extend beyond the end of the period of designation | 259 |
during which the notice is given. The trustee may rely upon this | 260 |
notice and upon the period of authorization stated therein and | 261 |
upon the period of designation stated therein. | 262 |
(2) No continuing authorization for substitution has been | 263 |
given by the treasurer, the public depository notifies the | 264 |
treasurer and the trustee of an intended substitution or exchange, | 265 |
and the treasurer fails to object to the trustee as to the | 266 |
eligibility or market value of the securities being substituted | 267 |
within ten calendar days after the date appearing on the notice of | 268 |
proposed substitution. The notice to the treasurer and to the | 269 |
trustee shall be given in writing and delivered personally or by | 270 |
certified or registered mail with a return receipt requested. The | 271 |
trustee may assume in any case that the notice has been delivered | 272 |
to the treasurer. In order for objections of the treasurer to be | 273 |
effective, receipt of the objections must be acknowledged in | 274 |
writing by the trustee. | 275 |
(I) Any federal reserve bank or branch thereof located in | 283 |
this state or federal home loan bank, without compliance with | 284 |
Chapter 1111. of the Revised Code and without becoming subject to | 285 |
any other law of this state relative to the exercise by | 286 |
corporations of trust powers generally, is qualified to act as | 287 |
trustee for the safekeeping of securities, under this section. Any | 288 |
institution mentioned in section 135.03 of the Revised Code that | 289 |
holds a certificate of qualification issued by the superintendent | 290 |
of financial institutions or any institution complying with | 291 |
sections 1111.04, 1111.05, and 1111.06 of the Revised Code, is | 292 |
qualified to act as trustee for the safekeeping of securities, | 293 |
other than those belonging to itself, under this section. Upon | 294 |
application to the superintendent in writing by an institution, | 295 |
the superintendent shall investigate the applicant and ascertain | 296 |
whether or not it has been authorized to execute and accept trusts | 297 |
in this state and has safe and adequate vaults and efficient | 298 |
supervision thereof for the storage and safekeeping within this | 299 |
state of securities. If the superintendent finds that the | 300 |
applicant has been so authorized and has such vaults and | 301 |
supervision thereof, the superintendent shall approve the | 302 |
application and issue a certificate to that effect, the original | 303 |
or any certified copy of which shall be conclusive evidence that | 304 |
the institution therein named is qualified to act as trustee for | 305 |
the purposes of this section with respect to securities other than | 306 |
those belonging to itself. | 307 |
Notwithstanding the fact that a public depository is required | 308 |
to pledge eligible securities in certain amounts to secure | 309 |
deposits of public moneys, a trustee has no duty or obligation to | 310 |
determine the eligibility, market value, or face value of any | 311 |
securities deposited with the trustee by a public depository. This | 312 |
applies in all situations including, without limitation, a | 313 |
substitution or exchange of securities. | 314 |
Any charges or compensation of a designated trustee for | 315 |
acting as such under this section shall be paid by the public | 316 |
depository and in no event shall be chargeable to the state or the | 317 |
subdivision or to the treasurer or to any officer of the state or | 318 |
subdivision. The charges or compensation shall not be a lien or | 319 |
charge upon the securities deposited for safekeeping prior or | 320 |
superior to the rights to and interests in the securities of the | 321 |
state or the subdivision or of the treasurer. The treasurer and | 322 |
the treasurer's bonders or surety shall be relieved from any | 323 |
liability to the state or the subdivision or to the public | 324 |
depository for the loss or destruction of any securities deposited | 325 |
with a qualified trustee pursuant to this section. | 326 |
(b) For the investing authority depositing the inactive | 344 |
moneys pursuant to division (A)(3)(a) of this section, the | 345 |
eligible public depository selected pursuant to that division | 346 |
invests the inactive moneys in certificates of deposit of one or | 347 |
more federally insured banks, savings banks, or savings and loan | 348 |
associations, wherever located. The full amount of principal and | 349 |
any accrued interest of each certificate of deposit invested in | 350 |
pursuant to division (A)(3)(b) of this section shall be insured by | 351 |
federal deposit insurance. | 352 |
(d) At the same time that the eligible public depository | 358 |
selected in accordance with division (A)(3)(a) of this section | 359 |
invests the deposit received pursuant to that division in the | 360 |
certificates of deposit described in division (A)(3)(b) of this | 361 |
section, and the certificates of deposit are issued by the bank or | 362 |
savings and loan association, the eligible public depository | 363 |
receives an amount of deposits from customers of other federally | 364 |
insured financial institutions, wherever located, that are equal | 365 |
to or greater than the amount initially deposited by the investing | 366 |
authority pursuant to division (A)(3)(a) of this sectionOn the | 367 |
same date the public moneys are redeposited by the public | 368 |
depository, the public depository may, in its sole discretion, | 369 |
choose whether to receive deposits, in any amount, from other | 370 |
banks, savings banks, or savings and loan associations. | 371 |
Sec. 135.354. (A) In addition to the authority provided in | 381 |
section 135.35 of the Revised Code for the investment or deposit | 382 |
of inactive moneys, the investing authority of a county, upon the | 383 |
deposit of active or inactive moneys with an eligible public | 384 |
depository described in section 135.32 of the Revised Code and | 385 |
selected by the investing authority, may authorize the public | 386 |
depository to arrange for the redeposit of such public moneys in | 387 |
accordance with the following conditions: | 388 |
(1) The public depository, on or after the date the public | 389 |
moneys are received, arranges for the redeposit of the moneys into | 390 |
deposit accounts in one or more federally insured banks, savings | 391 |
banks, or savings and loan associations that are located in the | 392 |
United States, and acts as custodian of the moneys deposited or | 393 |
redeposited under this section. | 394 |
Sec. 135.37. (A) AnyExcept as provided in section 135.353 | 418 |
or 135.354 of the Revised Code, any institution described in | 419 |
section 135.32 of the Revised Code shall, at the time it receives | 420 |
a deposit of public moneys under section 135.33 or 135.35 of the | 421 |
Revised Code, pledge to and deposit with the investing authority, | 422 |
as security for the repayment of all public moneys to be | 423 |
deposited, eligible securities of aggregate market value equal to | 424 |
or in excess of the amount of public moneys to be at the time so | 425 |
deposited. Any securities listed in division (B) of section 135.18 | 426 |
of the Revised Code are eligible for such purpose. The collateral | 427 |
so pledged or deposited may be in an amount that when added to the | 428 |
portion of the deposit insured by the federal deposit insurance | 429 |
corporation or any other agency or instrumentality of the federal | 430 |
government will, in the aggregate, equal or exceed the amount of | 431 |
public moneys so deposited; provided that, when an investment of | 432 |
inactive moneys consists of the purchase of one or more of the | 433 |
type of securities listed in division (A)(1) or (2) of section | 434 |
135.35 of the Revised Code, no additional collateral need be | 435 |
pledged or deposited. | 436 |
(E) A public depository may designate, in accordance with the | 466 |
provisions of division (D) of section 135.18 of the Revised Code, | 467 |
a trustee for the safekeeping of any pledged securities. Such | 468 |
trustee shall be any bank or other institution eligible as a | 469 |
trustee under division (I) of section 135.18 of the Revised Code, | 470 |
except that, for the purposes of this section, a bank to which a | 471 |
certificate of qualification is issued shall be an institution | 472 |
mentioned in division (A) of section 135.32 of the Revised Code. | 473 |