(a)

(1) The contracting authority for a municipality shall contract with a bank or banks making the best proposal to become the depository of municipal funds.

(2) Before entering into a contract under subdivision (a)(1), the contracting authority for a municipality or the contracting authority's designee shall review and analyze the proposals from the banks. The analysis of the proposals should consider the bank or banks proposing the highest interest rate, potential service charges or other fees, factors affecting safety and liquidity of municipal funds, and any other relevant factors.

(b) The contracting authority for the municipality shall require any bank that becomes a depository of municipal funds to secure the funds by collateral in the same manner and under the same conditions as state deposits under title 9, chapter 4, parts 1 and 4, or as provided in a collateral pool created under title 9, chapter 4, part 5.

(c) Notwithstanding any law to the contrary, at least once every four (4) years, the contracting authority for the municipality or their designee shall reevaluate the contracts entered into pursuant to subsection (a). The contracting authority for the municipality or their designee shall base the evaluation on proposals obtained from at least two (2) banks. The contracting authority for a municipality or their designee shall prepare a written evaluation of the proposals and preserve the evaluations for at least three (3) years.

(d) This section applies to any municipality that does not have banking evaluation provisions in its charter that are at least as detailed as those provided in this section.