Sec. 2. (a) The contract must:

(1) be in writing;

(2) provide for the investment of funds by the depository with the approval of the investing officer;

(3) provide that the depository keep those records concerning the investment cash management system that the political subdivision would maintain for audits by the state board of accounts;

(4) provide that investments will be made in accordance with this article;

(5) provide that the depository may invest funds in the same investments and for the same terms as the treasurer of state may invest funds of the state under this article;

(6) not have a term of more than two (2) years; and

(7) be awarded under the bidding provisions of IC 5-22.

(b) If no designated depository whose principal office or branch is located within the political subdivision will provide an investment cash management service permitted in this chapter, then the contract for an investment cash management service must be awarded as provided in IC 5-13-8-9(c). If the investment cash management service contract is awarded to a financial institution whose principal office or branch is located outside the political subdivision, then the recipient of the contract does not constitute a designated depository of the political subdivision for purposes of investment under IC 5-13-9-3 unless it meets the limitations of IC 5-13-9-4 or IC 5-13-9-5, but does constitute a depository under this article for all other purposes.

As added by P.L.19-1987, SEC.13. Amended by P.L.49-1997, SEC.28; P.L.102-2014, SEC.5.