Policy on Investment

1. Board of Finance
   The duly appointed members of the Hancock County Public Library Board of Trustees are the fiscal body of the library and thus constitute "The Board of Finance" of the Hancock County Public Library.  The members serve without compensation. (IC 5-13-7-5, IC 36-1-2-6)
2. Annual Meeting
   The Hancock County Public Library Board of Finance shall meet annually after the first Monday and on or before the last day of January to elect a president and secretary, review the written report of the library's investments during the previous calendar year, and review the library's investment policy.
3. Treasurer
   The duly elected treasurer of the Hancock County Public Library Board of Trustees is the fiscal officer of the library.  The treasurer shall serve without compensation. (IC 36-12-2-21 & IC-36-12-2-22)
4. Deposits
   All funds received by the library shall be deposited in one or more designated depositories not later than the business day following receipt and shall be deposited in the same form in which they were received. (IC 5-13-6-1)
5. Investments
   1. The Library fiscal officer is authorized to invest Library funds in:
      1. Securities or discount notes backed by the full faith and credit of the United States Treasury or fully guaranteed by the United States and issued by the United States Treasury, a federal agency, a federal instrumentality, or a federal government-sponsored enterprise
      2. Deposit accounts issued or offered by a designated depository
      3. Agreements, commonly known as repurchase agreements (including standing repurchase or resale agreements, commonly known as "sweep" accounts) with depositories designated by the state board of finance as depositories for state investments involving the purchase and guaranteed resale of any interest-bearing obligations issued or fully guaranteed by the United States, any United States government agency or any instrumentality of the United States government
      4. Obligations issued, assumed or guaranteed by the International Bank for Reconstruction and Redevelopment or the African Development Bank. (IC 5-13-9)
   2. Investments made by the library's fiscal officer must have a
      stated final maturity of not more than two (2) years after the date of purchase of entry into a repurchase agreement. (IC 5-13-9-5.6)
6. Investment Cash Magagement
   The Hancock County Public Library may contract with a library or state-designated depository for the operation of an investment cash management system. (IC 5-13-11-1)
7. Prohibited Investments
   The fiscal officer may not purchase securities on margin or open a securities margin account for the investment of Library funds. (IC 5-13-9-9)
8. Transaction Accounts
   The fiscal officer of the Library shall maintain deposits that are invested or reinvested in at least two (2) of the library's designated depositories. (IC 5-13-9-4)
9. Interest
   All interest derived from a library investment shall be receipted to the library fund of which it is a part. (IC 5-13-9-6)
10. Bidding Procedure
    Whenever investments are made in a certificate of deposit, the investing officer must obtain quotes of the specific rates of interest for the term of the CD.  The quotes may be taken by telephone and must be recorded in a memorandum and retained as a public record.  The deposit shall be placed with the designated depository quoting the highest rate of interest for the selected period.  If two depositories tie for the highest quote, the deposit may be placed in any or all of the designated depositories quoting the highest rate at the investing officer's discretion. (IC 5-13-9-4) Investments in certificates of deposit may be made with depositories outside of the political subdivision if the following rules are followed:
    1. A resolution authorizing use of approved depositories outside of the political subdivision must be adopted
    2. Quotes must be solicited from at least three depositories, two of which must be from within the political subdivision
    3. If only one of the highest quotes is from a designated depository within Hancock County, the investment shall be placed in that depository
    4. If more than one of the highest quotes are from designated depositories in Hancock County, the investment may be placed in any or all, at the investing officer's discretion
    5. If none of the highest quotes are from designated depositories in Hancock County, the investment shall be placed in the depository submitting the highest quote. (IC 5-13-9-5)