Sec. 4. (a) Except as provided in subsection (d), 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 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 8-14-15.2-9(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.
(d) This subsection applies only to a town that receives proceeds from the sale of a capital asset under section 3(b)(1)(B) of this chapter. The fiscal body of a town that receives proceeds from the sale of a capital asset described in section 3(b)(1)(B) of this chapter shall contract with a financial institution eligible to receive public funds of a political subdivision under IC 5-13-8-1 to assist the board in its investment program.
As added by P.L.139-2015, SEC.2. Amended by P.L.189-2018, SEC.33; P.L.157-2022, SEC.2.
Structure 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
5-13-9.3-3. Investment of Proceeds From Certain Capital Assets; Ordinance or Resolution
5-13-9.3-5. Principal and Interest of Money in the Fund; Appropriation Required; Limits
5-13-9.3-6. Department of Local Government Finance May Not Reduce Levy