Ohio § 731.59

§ 731.59.

All securities belonging to the treasury of any municipal corporation or to any fund

thereof, other than the sinking fund, may be placed in the custody of any member of

the federal reserve banking system, upon the issuance by such member of its custodian

or other bailment receipt to the treasurer of the municipal corporation.  Such custody shall be as a qualified trustee pursuant to division (E) of section 135.18 of the Revised Code , which shall be required to report to the treasurer, auditor of state, or an authorized

outside auditor at any time upon request as to the identity, market value, and location

of the document evidencing each security.  Such securities, if not kept in the custody of a member of the federal reserve banking

system, shall be in the custody of such treasurer and shall be kept in a safe deposit

box or vault belonging to a regular depository of the municipal corporation.  If such securities are so kept, such safe deposit box or vault shall be opened only

in the presence of one or more of the three officers named in section 731.57 of the Revised Code , and only upon a warrant or order of the chief accounting officer directing the deposit

or removal of securities purchased or sold or the clipping of interest coupons for

collection.  A report of whatever is placed in or removed from such safe deposit box or vault

upon any such occasion shall be signed by the treasurer and by the witness required

by this section, and shall be returned to the chief accounting officer upon the same

day.  Whenever any securities are so held for the municipal corporation the officers having

power to make such investments shall be bonded in amounts to be stipulated by ordinance.  Such bonds may cover other contingencies in which such officers might become liable

to the municipal corporation.  In the event securities are deposited with a member of the federal reserve banking

system, such securities may be withdrawn or sold only upon order of the three officers

named in such section. All investments, except for investments by the municipal corporation in the issues

of such municipal corporation, shall be made only through a member of the national

association of securities dealers, inc., through a bank, savings bank, or savings

and loan association regulated by the superintendent of financial institutions, or

through an institution regulated by the comptroller of the currency, federal deposit

insurance corporation, board of governors of the federal reserve system, or federal

home loan bank board.  Payment for investments shall be made only upon the delivery of securities representing

such investments to the treasurer or qualified trustee.  If the securities transferred are not represented by a certificate, payment shall

be made only upon receipt of confirmation of transfer from the custodian by the treasurer,

governing board, or qualified trustee.