Ottumwa semi-weekly courier. [volume] (Ottumwa, Iowa) 1899-1903, 1899-12-14
BANKS MAY BE REQUIRED TO BID.
County, City and In Some Cases School
Money May Bring Revenue If Pro.
posed New Law is
Passed

diiu al lNSlleu III any Duuk tllslt
may be cted at the pleasure of eth
er with, any rate of interest being
enacted. IN the case Of a county treas
urer the funds OF u county are usually
deposited with the banks whose officers
are sureties on the official bond of the
officer, and no rate of interest is ex-
acted nor does the present law con
template that interest should be charg
ed. Banks that have heretofore en-
joyed the use of several thousands of
without cost, may be required to pay
interest if the proposed law is pass
ed.
The new law as proposed by the
league at its recent meeting in Des
Moines is as follows:
An act to provide repositories for public
funds, the manner in which they
shall be selected, and defining the liza
bility Thereof and the duties and liza
bilities of custodians of public funds
in certain cases.
Be it enacted by the general assembly
of the state of Iowa:
Section 1. That it shall be the duty
of boards OF supervisors, councils OF
tees, boards of park commissioners and
tons having a school enumeration of
act, and biennially thereaft er, to pub
lish in at least one newspaper, printed
and of general circulation in the coun-
ty, once each week for two consecutive
weeks, notice which shall invite seal
ed proposals from banks located with
in the county and duly authorized I'M
der the laws OF Iowa or of the United
States, STIMULATING the rate of interest
that shall be paid for the use of mon
ev of the county, city, town, library
board, park commission or school COR
poration, as the case may be, and nam
ing the sureties who will be offered up
on the undertaking of the bank in case
the proposal be accepted.
Sec. 2. Within five days after the last
insertion of said notice. at the hour OF
2 o'clock p. M, the board of supervisors,
council OF city or town, board of Ii
brary trustees, board Of park commits
sioners, or board OF directors of school
corporation, as the case may be, shall,
posals, and shall award the use of the
AAAonSs " euc Souhsy, cry, toMu, Ildih
commission, library board or school
corporation to the bank which offers
the highest. rate of interest therefor;
and if two or more banks offer the
same highest rate of interest, the use
of the money may be offered to either
or several of them; OF all proposals may
be rejected and new advertisements
made as herein provided.
Sec. 3. No such award shall be bind
ing. nor shall any public money be de-
posted Hereunder, until there is exc
cuted by the bank, or banks, selected
and accepted, a good and sufficient
bond, payable to the county, town,
board of library trustees, board of
park commissioners, or board of direc-
tors of school corporations, as the case
nav be, in a sum not less than double
the amount OF money likely to be held
bv such banks at any one time, as the
board OF supervisors, council of city or
town, board of library trustees, board
rectors OF school corporations, shall
fix, signed by not less than six resident
free holders as sureties, who will quail
I ify as provided in sections 35s and $50
of the code; OF, bonds of guarantee
companies may be accepted, as pro
vided in section 800 of the code. Such
bonds shall be approved by the board
of supervisors, council of city or town,
board of library trustees, board OF
mark commissioners or board of direc-
tors of school corporal tons, as the case
may be, and shall be conditioned for
the receipt, safe keeping and payment
over, as provided in this act, of all
money which shall come into the GUS
tody of the obligee, under and by vir-
tue of the provisions of this act; and
the proposal and award herein pro.
vided for, together with interest there
on at the rate specified in the proposal,
and the faithful performance by the
obligee of all duties and obligations
imposed by this act upon the depository
of public funds.
Sec. A. If any bank to which an
award is made shall fail to execute a
good and sufficient bond, as required,
within three days from the time the
award is made, the proper authority
may award the use of the money to
any other bank whose written proposal
offers the same rate of interest there
| for. But il no other bank, by its
written proposal offers the same rate oil
interest, such use may be awarded ia
any bank whose written proposal
offers the next highest rate of in
| terest.
Sec. 5. The bank or banks entitled
to the use of public funds, as provided
in this act, shall become the depository
thereof, and remain such until the bond
| if its successor is accepted. But the
proper authority may, at any time, re-
quire additional security from the bank
in such sum as it may designate; and
il the bank refuses or neglects for the
period of five days thereafter to give
such additional securitv, it may order
the removal of public funds therefrom,
forthwith and may designate some
other bank to be depository thereof,
| temporarily, at such rate of interest,
or without interest, as it may deter.
mine; such removal, and all other re.
movals under the provisions of this
act, shall be made upon written order
of the proper authority, and the prop
er treasurer shall thereupon issue his
check for such removal. Any, bank