2016 Indiana Code
TITLE 5. STATE AND LOCAL ADMINISTRATION
ARTICLE 13. INVESTMENT OF PUBLIC FUNDS
CHAPTER 9.3. INVESTMENT OF PROCEEDS RECEIVED FROM THE SALE OF CERTAIN CAPITAL ASSETS
Download as PDF
<![CDATA[IC 5-13-9.3
Chapter 9.3. Investment of Proceeds Received From the Sale
of Certain Capital Assets
IC 5-13-9.3-1
"Capital asset"
Sec. 1. As used in this chapter, "capital asset" means a building,
a fixture, a structure, an improvement, or land.
As added by P.L.139-2015, SEC.2.
IC 5-13-9.3-2
"Fund"
Sec. 2. As used in this chapter, "fund" means a fund established
under section 4 of this chapter.
As added by P.L.139-2015, SEC.2.
IC 5-13-9.3-3
Investment of proceeds from certain capital assets; ordinance or
resolution
Sec. 3. (a) Subject to the requirements of this chapter, the fiscal
body of a political subdivision may adopt an ordinance (in the case
of a county or municipality) or a resolution (in the case of any other
political subdivision) to authorize the investment of proceeds from
the sale of a capital asset owned by the political subdivision. A fiscal
body may adopt an ordinance under this subsection before, after, or
at the time of the sale of the capital asset.
(b) Proceeds from the sale of a capital asset owned by a political
subdivision may be invested as provided in this chapter only if:
(1) the total amount received (either before July 1, 2015, or
after June 30, 2015) or that will be received from the sale of the
capital asset exceeds fifty million dollars ($50,000,000); and
(2) the fiscal body of the political subdivision has adopted an
ordinance or a resolution, as described in subsection (a), that
applies to the investment of proceeds from the sale of that
particular capital asset.
As added by P.L.139-2015, SEC.2.
IC 5-13-9.3-4
Establishment of separate fund; investment powers; agreement
with investment advisor; expenditure or transfer of money in the
fund
Sec. 4. (a) If the fiscal body of a political subdivision adopts an
ordinance or a resolution under section 3 of this chapter for a
particular capital asset, the fiscal officer of the political subdivision
shall establish a separate fund into which some or all of the proceeds
from the sale of the capital asset shall be deposited. All interest and
other income earned on investments of money in the fund shall be
deposited in the fund. The ordinance or resolution under section 3 of
Indiana Code 2016
this chapter must require that the investing officer of the political
subdivision shall contract with a registered investment advisor
concerning the investment of the proceeds in the fund with the
expanded investment authority granted to the political subdivision
under this section.
(b) Notwithstanding IC 5-13 or any other law, the investing
officer of the political subdivision may invest money in the fund in
the same manner as money in the next generation trust fund may be
invested under IC 8-14-15-8(b). A political subdivision shall enter
into an agreement with a registered investment advisor to provide
advice regarding investment of money in the fund. The political
subdivision shall, with the advice of the registered investment
advisor, enter into agreements with investment managers for the
investment of the funds. These agreements:
(1) must be a fee-for-service agreement; and
(2) may not provide that the compensation of the investment
management professionals or investment advisors is determined
in whole or in part by the amount or percentage of the
investment income earned on money in the fund.
(c) Money in the fund may not be expended or transferred from
the fund, except as provided in this chapter.
As added by P.L.139-2015, SEC.2.
IC 5-13-9.3-5
Principal and interest of money in the fund; appropriation
required; limits
Sec. 5. The following apply to money deposited in the fund:
(1) The principal of the fund consists of:
(A) the amount deposited in the fund as the proceeds from
the sale of the capital asset; plus
(B) any investment income that is:
(i) earned on money in the fund; and
(ii) added to the principal of the fund as provided in
subdivision (2).
(2) To the extent that investment income earned on money in
the fund during a calendar year exceeds five percent (5%) of the
amount of the principal at the beginning of the calendar year,
that excess investment income shall, for purposes of this
chapter, be added to and be considered a part of the principal of
the fund.
(3) Money may be expended from the fund only upon
appropriation by the fiscal body of the political subdivision.
Money may be transferred from the fund to another fund of the
political subdivision only if the fiscal body of the political
subdivision authorizes the transfer by ordinance (in the case of
a county or municipality) or by resolution (in the case of any
other political subdivision). However, an expenditure or
transfer of any money that is part of the principal of the fund
Indiana Code 2016
may be made only if the expenditure or transfer is approved:
(A) by each member of the fiscal body of the political
subdivision; and
(B) by each member of the executive of the political
subdivision.
(4) All money in the fund that is in a deposit account and not in
some other form of investment shall be deposited in one (1) or
more designated depositories of the political subdivision in the
same manner as other public funds of the political subdivision
are deposited under IC 5-13-9.
As added by P.L.139-2015, SEC.2.
IC 5-13-9.3-6
Department of local government finance may not reduce levy
Sec. 6. The department of local government finance may not
reduce a political subdivision's property tax levy under IC 6-1.1-18.5
or any other law on account of money deposited in a fund established
under this chapter.
As added by P.L.139-2015, SEC.2.
Indiana Code 2016
]]>
Disclaimer: These codes may not be the most recent version.
Indiana may have more current or accurate information. We make no warranties or guarantees about the accuracy, completeness, or adequacy of the information contained on this site or the information linked to on the state site. Please check official sources.
