DEPOSIT OF PUBLIC MONEY

Columbus City Codes tit. 3, ch. 321

in effect

Columbus City Codes § 321.01 Term "banks" defined.

321.01 - Term "banks" defined. Except where specific provision is made relating to building and loan or savings associations or companies, the word "bank" as used in this chapter shall be held to include all banks and buildings and loan or savings associations or companies situated in the county and duly organized under the laws of the state or of the United States and authorized to do business in the state. (Ord. 1796-75.)

Columbus City Codes § 321.02 Active, inactive, and interim deposits defined.

321.02 - Active, inactive, and interim deposits defined. "Active deposits" means a deposit of public money which may be withdrawn upon demand; including the establishment of a savings account. "Inactive deposits" means a deposit of public money at interest which may be withdrawn only in accordance with the applicable regulations of the appropriate regulatory authorities. Inactive deposits are commonly referred to as certificates of deposit. "Interim deposits" has the same meaning as set forth in Ohio R.C. Section 135.01. (Ord. 321-96; Ord. No. 2737-2018, § 1, 10-8-2018)

Columbus City Codes § 321.03 Columbus depository commission.

321.03 - Columbus depository commission. The city treasurer, city auditor and director of finance and management shall constitute a commission to be known as the Columbus depository commission, henceforth referred to as the commission, and shall serve as members of such commission without any additional compensation, but they shall be provided with the necessary books and stationery at the expense of the city. The city treasurer shall be the chairperson and the city auditor shall be the secretary of such commission. The commission shall hold meetings which shall be open to the public at such times as may be required by ordinance and whenever called to meet by the chairperson, or by any two (2) of its members, and shall keep a record of its proceedings and file all official papers received by it, which record and papers shall be open to public inspection. (Ord. 162-92; Ord. 1102-05 § 1 (part); Ord. No. 2019-2021, § 1, 7-26-2021)

Columbus City Codes § 321.04 Application for deposits.

321.04 - Application for deposits. Eligible banks shall, on or before 2:00 p.m. of the second Tuesday in December, submit application to the commission for approval to accept deposits of the city for the ensuing fiscal year. The commission shall be required to publicly advertise for said applications in the Columbus City Bulletin in the three issues immediately preceding the second Tuesday in December of each year. Said application shall be on a form prescribed by the commission and shall contain such information as the commission shall require. The commission shall on or before December 31, determine, subject to the provisions of this chapter, those banks approved as depositories for the ensuing fiscal year. The commission shall notify the applicants of its action. (Ord. 1796-75.)

Columbus City Codes § 321.05 Limitation on amounts of deposits.

321.05 - Limitation on amounts of deposits. No bank shall apply for, receive or have on deposit at any one time public moneys of the city in an aggregate amount in excess of the greater of the two (2) amounts hereinafter described: (1) its capital funds as hereinafter defined; and (2) thirty percent (30%) of the average of its total deposit liabilities as revealed by its reports to the Superintendent of Financial Institutions or the Comptroller of Currency or Auditor of the state, as the case may be, made during the twelve (12) months prior to the date when this limitation shall be applied. The maximum amount that shall be deposited in any building and loan or savings association or company shall in no event exceed fifteen percent (15%) of the combined capital reserve and undivided profits of such association or company and the total aggregate awards to such associations or companies shall be subject to the discretion of the commission. "Capital funds," as referred to in this section shall mean, in case of an incorporated institution, the sum of the following; the par value of the outstanding common capital stock, the par value of the outstanding preferred capital stock, if any; the aggregate par value of all outstanding capital notes and debentures, if any; and the surplus. In the cases of an unincorporated institution such terms shall mean the capital and surplus thereof. (Ord. 321-96.)

Columbus City Codes § 321.06 Duties of city treasurer.

321.06 - Duties of city treasurer. The city treasurer shall deposit daily all the funds of the city which may be in the city treasurer's possession or which shall come therein, less a sum adequate to meet daily needs, which sum must be approved by the commission. All deposits and withdrawals shall be made in accordance with the determination of the commission. If at any time for any cause the commission shall not have secured sufficient depositories as provided in this chapter, and in all cases where money has been removed from a depository, and until sufficient depositories shall have been provided, such monies shall be and remain in the custody of the city treasurer, who shall be custodian thereof, the same as if no depository had been created. By the tenth day of each month, the city treasurer shall render to the commission a statement showing in detail all transactions with the depositories during the preceding month, and the balance on deposit to the credit of the city, and the balance in the hands of the city treasurer at the end of the month. (Ord. 1796-75; Ord. No. 2019-2021, § 1, 7-26-2021)

Columbus City Codes § 321.07 Types of deposits—Bidding.

321.07 - Types of deposits—Bidding. The commission shall provide for the deposits and withdrawals of the public moneys of the city as it deems in the best interests of the city. Bids will be accepted by the city treasurer from banks whose applications have been approved for the deposit of inactive funds pursuant to notice published weekly in the city bulletin. The city treasurer shall, in all instances, seek bids on such moneys from at least three such banks. Awards of inactive deposits shall be based upon the rates of interest that may be secured, the time in which it is probable that the city will need the use of moneys to be deposited in a particular type of deposit, and the regulations of the governing bodies regulating member banks with respect to the types of deposits, the rates of interest, and the length of notice required for withdrawals. The commission shall, using the above standards, define and delimit each type of deposit that it may adopt for the deposit of the public moneys. (Ord. 1796-75.)

Columbus City Codes § 321.08 Security requirements for depositories.

321.08 - Security requirements for depositories. Banks receiving deposits shall furnish collateral securities in an amount at least five percent (5%) greater than the maximum sum to be deposited. Eligible collateral securities furnished must be of the type described in Ohio R.C. 135.18 entitled "Security for repayment of public deposits." Eligible collateral shall also include such insurance as may be provided by the Federal Deposit Insurance Corporation. If any bank to which an award is made shall fail to transfer and deliver the collateral securities herein required to the acceptance of the commission within five (5) days after such award is made, the commission may then award the use of such money to any other bank whose bid has been received and which offers the next highest rate of interest, or in its discretion may seek further bids. Any successful bidder may, at any time, with the consent and approval of the city treasurer substitute any eligible security acceptable to the commission for that first offered or given. An institution designated as a public depository may, by written notice to the commission and to the city treasurer, designate a qualified trustee satisfactory to the commission and deposit the eligible securities required by this section with the designated trustee for safekeeping for the account of the city treasurer and the institution as a public depository, as their respective rights to and interest in such securities may from time to time appear and be asserted by written notice to or demand upon the trustee. In such case, the treasurer shall accept the written receipt of the designated trustee, describing such securities, as and for a pledge of such described securities, and issue to the commission written acknowledgment to that effect, keeping a copy thereof in the treasurer's office. Thereupon the securities described in such trustee's receipt shall be deemed to have been pledged with the city treasurer and to have been deposited. (Ord. 321-96; Ord. 20-01 § 1; Ord. No. 2044-2019, § 1, 7-29-2019; Ord. No. 2019-2021, § 1, 7-26-2021)

Columbus City Codes § 321.09 Duties and obligations of depositories.

321.09 - Duties and obligations of depositories. Each bank designated as a depository shall be deemed bound, and every undertaking shall be conditioned, for the faithful compliance, by the bank so designated or furnishing such undertaking, with all the duties and obligations imposed by laws of the state and by the provisions of this chapter upon the depositories of such public money, and particularly for the receipt, safekeeping and payment over of all money which may come into the custody of the bank under and by virtue of the provisions of this chapter and the award of such commission, together with interest thereon at the rate specified in the bid. Whenever securities are hypothecated and accepted by the commission as security, such hypothecation shall be by legal transfer as collateral which shall stipulate that such securities shall be the property of the city in case of any default on the part of the bank as such depository, and that their release shall require the signature of the city treasurer. When such hypothecated securities are not deposited as provided for in C.C. 321.08 or C.C. 321.081, the commission shall make provision for the safekeeping of such securities in a safe deposit box, which shall only be opened in the presence of the city treasurer and the appropriate bank official. The interest on such securities, when paid, shall be turned over to the bank so long as it is not in default as aforesaid. (Ord. 321-96.)

Columbus City Codes § 321.10 Depositories to pay only on check of city treasurer.

321.10 - Depositories to pay only on check of city treasurer. Depositories shall pay out money deposited under the provisions of this chapter only on the checks of the city treasurer. (Ord. 1796-75.)

Columbus City Codes § 321.11 Authorized fiscal agents for the collection of city funds.

321.11 - Authorized fiscal agents for the collection of city funds. The Columbus depository commission shall have the authority to designate a person or organization as an authorized fiscal agent, subject to the approval of the city auditor. An authorized fiscal agent shall be responsible for the collection and temporary custody of city funds until such time as the funds can be deposited into a bank account of the city that has been approved as an eligible depository pursuant to Section 321.09 of the city codes. Funds collected by an authorized fiscal agent as previously described shall not be construed as a deposit as defined in Section 321.02 of the city codes. The Columbus depository commission shall promulgate rules and regulations, subject to the approval of the city auditor, for any person or organization designated as an authorized fiscal agent. Any person or organization designated as an authorized fiscal agent shall be held to all of the duties and obligations of a fiduciary as set forth by the laws of the state of Ohio. (Ord. 21-01 § 1.)

Columbus City Codes § 321.081 Optional pledging requirements—Trustee for safekeeping of securities—Sale upon default.

321.081 - Optional pledging requirements—Trustee for safekeeping of securities—Sale upon default. (A) As used in this section: (1) "Public depository" means that term as defined in Ohio R.C. 135.01, but also means an institution which receives or holds any public deposits as defined in Ohio R.C. 135.31. (2) "Public deposits," "public moneys," and "treasurer" mean those terms as defined in Ohio R.C. 135.01, but also have the same meanings as are set forth in Ohio R.C. 135.31. (3) "Subdivision" means that term as defined in Ohio R.C. 135.01, but also includes a county and the city of Columbus. (B) In lieu of the pledging requirements prescribed in Section 321.08 of the Columbus City Codes, an institution designated as a public depository at its option may pledge a single pool of eligible securities to secure the repayment of all public moneys deposited in the institution and not otherwise secured pursuant to law, provided that at all times the total value of the securities so pledged, based on the valuations prescribed in subsection (C) of this section, is at least equal to one hundred five percent (105%) of the total amount of all public deposits to be secured by the pooled securities, including the portion of such deposits covered by any federal deposit insurance. In the alternative, the city treasurer may authorize the institution to use the Ohio Pooled Collateral program as set forth in R.C. 135.182. Each such institution shall carry in its accounting records at all times a general ledger or other appropriate account of the total amount of all public deposits to be secured by the pool, as determined at the opening of business each day, and the total value of securities pledged to secure such deposits. (C) The following securities, at the specified valuations, shall be eligible as collateral for the purposes of division (B) of this section, provided no such securities pledged as collateral are at any time in default as to either principal or interest: (1) Obligations of or fully insured or fully guaranteed by the United States or any federal government agency: at face value; (2) Obligations partially insured or partially guaranteed by any federal government agency: at face value; (3) Obligations of or fully guaranteed by the Federal National Mortgage Association or the Federal Home Loan Mortgage Corporation: at face value; (4) Obligations of any state, county, municipal corporation, or other legally constituted authority of any state, or any instrumentality of any state, county, municipal corporation, or other authority, which are secured as to the payment of principal and interest by the holding in escrow of obligations of the United States for which the full faith and credit of the United States is pledged: at face value; (5) Obligations of this state, or any county or other legally constituted authority of this state, or any instrumentality of this state, or such county or other authority: at face value; (6) Obligations of any other state: at ninety percent (90%) of face value; (7) Obligations of any county, municipal corporation, or other legally constituted authority of any other state, or any instrumentality of such county, municipal corporation, or other authority: at eighty percent (80%) of face value; (8) Notes representing loans made to persons attending or planning to attend eligible institutions of education and to their parents, and insured or guaranteed by the United States or any agency, department, or other instrumentality thereof, or guaranteed by the Ohio Student Aid Commission pursuant to Ohio R.C. 3351.05 to 3351.14: at face value; (9) Any other obligations the treasurer of state approves: at the percentage of face value the treasurer of state prescribes; (10) Shares of no-load money market mutual funds consisting exclusively of obligations described in division (C)(1), (2), or (3) of this section and repurchase agreements secured by such obligations: at face value. (D) The state and each subdivision shall have an undivided security interest in the pool of securities pledged by a public depository pursuant to division (B) of this section in the proportion that the total amount of the state's or subdivision's public moneys secured by the pool bears to the total amount of public deposits so secured. (E) An institution designated as a public depository shall designate a qualified trustee and deposit with the trustee for safekeeping the eligible securities pledged pursuant to division (B) of this section. The institution shall give written notice of the qualified trustee to any treasurer or treasurers depositing public moneys for which such securities are pledged. The treasurer shall accept the written receipt of the trustee describing the pool of securities so deposited by the depository, a copy of which also shall be delivered to the depository. (F) Any federal reserve bank or branch thereof located in this state, without compliance with Ohio R.C. 1109.03, 1109.04, 1109.17, and 1109.18 and without becoming subject to Ohio R.C. 1109.15 or any other law of this state relative to the exercise by corporations of trust powers generally, is qualified to act as trustee for the safekeeping of securities, under this section. Any institution mentioned in Ohio R.C. 135.03 or 135.32(A) which holds a certificate of qualification issued by the Superintendent of Financial Institutions or any institution complying with Ohio R.C. 1109.03, 1109.04, 1109.17, and 1109.18 is qualified to act as trustee for the safekeeping of securities under this section, other than those belonging to itself or to an affiliate as defined in Ohio R.C. 1101.01(A). Upon application in writing by any such institution, the Superintendent shall investigate the applicant and ascertain whether or not it has been authorized to execute and accept trusts in this state and has safe and adequate vaults and efficient supervision thereof for the storage and safekeeping of such securities. If the Superintendent finds that the applicant has been so authorized and does have such vaults and supervision thereof, he shall approve the application and issue a certificate to that effect, the original or any certified copy of which shall be conclusive evidence that the institution named therein is qualified to act as trustee for the purposes of this section with respect to securities other than those belonging to itself or to an affiliate. (G) The public depository at any time may substitute, exchange, or release eligible securities deposited with a qualified trustee pursuant to this section, provided that such substitution, exchange, or release does not reduce the total value of the securities, based on the valuations prescribed in division (C) of this section, to an amount that is less than one hundred five percent (105%) of the total amount of public deposits as determined pursuant to division (B) of this section. (H) Notwithstanding the fact that a public depository is required to pledge eligible securities in certain amounts to secure deposits of public moneys, a trustee shall have no duty or obligation to determine the eligibility, market value, or face value of any securities deposited with the trustee by a public depository. This applies in all situations including, but not limited to, a substitution or exchange of securities, but excluding those situations effectuated by division (I) of this section in which the trustee is required to determine face and market value. (I) If the public depository fails to pay over any part of the public deposits made therein as provided by law and secured pursuant to division (B) of this section, the treasurer shall give written notice of this failure to the qualified trustee holding the pool of securities pledged against public moneys deposited in the depository, and at the same time shall send a copy of this notice to the depository. Upon receipt of such notice, the trustee shall transfer to the treasurer for public sale such of the pooled securities as may be necessary to produce an amount equal to the deposits made by the treasurer and not paid over, less the portion of such deposits covered by any federal deposit insurance, plus any accrued interest due on such deposits; however, such amount shall not exceed the state's or subdivision's proportional security interest in the market value of the pool as of the date of the depository's failure to pay over the deposits, as such interest and value are determined by the trustee. The treasurer shall sell at public sale any of the bonds or other securities so transferred. Thirty (30) days notice of such sale shall be given in a newspaper of general circulation at Columbus, in the case of the treasurer of state, and at the county seat of the county in which the office of the treasurer is located, in the case of any other treasurer. When a sale of bonds or other securities has been so made and upon payment to the treasurer of the purchase money, the treasurer shall transfer such bonds or securities whereupon the absolute ownership of such bonds or securities shall pass to the purchasers. Any surplus after deducting the amount due the state or subdivision and expenses of sale shall be paid to the public depository. (J) Any charges or compensation of a designated trustee for acting as such under this section shall be paid by the public depository and in no event shall be chargeable to the state or subdivision or to the treasurer or to any officer of the state or subdivision. Such charges or compensation shall not be a lien or charge upon the securities deposited for safekeeping prior or superior to the rights to and interests in such securities of the state or subdivision or of the treasurer. The treasurer and the treasurer's bondsmen or surety shall be relieved from any liability to the state or subdivision or to the public depository for the loss or destruction of any securities deposited with a qualified trustee pursuant to this section. (K) In lieu of placing its unqualified endorsement on each security, a public depository pledging securities pursuant to division (B) of this section that are not negotiable without its endorsement or assignment may furnish to the qualified trustee holding the securities an appropriate resolution and irrevocable power of attorney authorizing the trustee to assign the securities. The resolution and power of attorney shall conform to such terms and conditions as the trustee prescribes. (L) Upon request of a treasurer no more often than four (4) times per year, a public depository shall report the amount of public moneys deposited by the treasurer and secured pursuant to division (B) of this section, and the total value, based on the valuations prescribed in division (C) of this section, of the pool of securities pledged to secure public moneys held by the depository, including those deposited by the treasurer. Upon request of a treasurer no more often than four (4) times per year, a qualified trustee shall report such total value of the pool of securities deposited with it by the depository and shall provide an itemized list of the securities in the pool. These reports shall be made as of the date the treasurer specifies. The city treasurer shall request the public depository and the qualified trustee to provide the information detailed in Section 321.081(L) not less than four (4) times per year and on a quarterly basis. The public depository and the qualified trustee are required to comply and provide the information detailed in Section 321.081(L). (Ord. 321-96: Ord. 1540-03 § 1; Ord. 1132-2008 Attach. (part); Ord. No. 3082-2017, § 1, 12-11-2017; Ord. No. 2044-2019, § 2, 7-29-2019; Ord. No. 2019-2021, § 1, 7-26-2021)

Source: City of Columbus, City Codes and City Charter (Municode Library, library.municode.com)URL: https://library.municode.com/oh/columbus/codes/code_of_ordinances?nodeId=TIT3FITACO_CH321DEPUMOFetched: 10/27/2026