PUBLIC FUNDS - SAFETY.
Mr. BROWN introduced a bill [S. 256] for
An act to establish State and County Boards of Finance, prescribing their duty, and that of others connected therewith.
Be it enacted by the General Assembly of the State of Indiana:
Section 1 That the Governor, the Auditor of State, and the Attorney General shall constitute ex officio, a State Board of Finance, whose duty it shall be to select and designate certain persons or banks or depositaries for the public moneys of the State.
Sec 2. Immediately after the passage of this act, or within then days from the taking effect thereof, the said State Board of Finance shall meet at the office of the Auditor of State, and shall select, designate and name such banks and persons as may appear best to them for such purpose as depositaries of the public moneys of the State.
Sec. 3 Such bank and persons so named shall be notified of their designations as such depositaries by the Auditor of State, and if agreeing thereto shall file their bond in such penal sums as may be required by the State Board of Finance. Such bond shall be conditioned for the safe-keeping of the public moneys and the repayment thereof on demand to the proper officer in person; such bond shall be made payable to the State Indiana, with sureties to be approved by the said State Board of Finance, and shall run fur one year and be renewable at the end thereof upon approval by the said Board aforesaid: said bonds shall be deposited in the office of the Auditor of State and shall be suable by the State upon the relation of the Attorney General for any breach or defalcation therein.
Sec. 4. Upon the filing and approval of the bond of such designated depositaries aforesaid, the Auditor of State shall forthwith notify the Treasurer of State of the names and places of such designated depositaries: such notice shall be in writing, and upon receipt thereof the Treasurer of State shall deposit with such designated depositaries the public moneys in his hands as they accrue: and such depositaries shall hold and safely keep such moneys subject to the order or draft of the said State Treasurer therefor.
Sec. 5. The Board of County Commissioners in the respective counties of this State are hereby established as County Boards of Finance herein, whose duty it shall be, with the advice and approval of the County Auditor, to select and designate certain banks or persons as the depositaries of the public moneys of the county and to townships.
Sec. 6. At the first regular meeting of said Board after the taking effect of this act the said Commissioners shall, by an order entered upon their records, name and designate certain banks or persons as depositaries to the public moneys of the county and townships.
Sec. 7. The County Auditor shall thereupon notify in writing the said depositaries of their designation. If such designation be assented to by the parties named they shall immediately thereafter file a bond, payable to the State, conditioned for the safe keeping of any public funds deposited the safe keeping of any public funds deposited with them and for their repayment thereof upon demand by the person of officers entitled thereto.
Sec. 8. Upon the filing of such bonds by such depositaries the County Auditor shall immediately notify the County Treasurer and the several Township Trustees of the names and places of business of such designated depositaries; such notification shall be in writing, and the said Treasurer and the said Trustees shall thereafter deposit the public funds in their possession with such depositaries subject to their draft or order therefor.
Sec. 9 The bonds of such depositaries shall be made in such penal sum, and with such sureties as may, by the Board of Commissioner, be approved of; shall be filed with the County Auditor, and shall be suable in the names of the State upon the relation of any officer or person injured by any breach thereof.
Sec. 10 If any interest accrue upon any page: 139[View Page 139] moneys deposited as aforesaid it shall be a counted for and paid over as a part of the original fund on the account of which the said moneys were so deposited.
S. 11. The bonds of county depositaries shall run for the period of one year. At the expiration of which time they shall be renewed in the same manner, and subject to the same approval, as provided herein for their original execution.
It was read the first time and referred to the Committee on Finance
