(a) Applications by banks and savings and loan associations shall be submitted to
the proper governing board and shall be acted upon by the proper governing board as
soon thereafter as practicable. Prior to the deposit, the board shall negotiate the rate of interest applicable
to the deposit. No monies shall be deposited by any treasurer except in banks and savings and loan
associations which have been approved by the proper governing board.
(b) If any depository defaults, the treasurer for the local government may sell any
or all collateral that is pledged as security for the deposit of public funds in the
depository at public or private sale. Notice of the sale of the collateral is required only if the treasurer determines
that the collateral is illiquid. If notice is required, it shall be given by publication in a newspaper of general
circulation in the county or counties in which real estate, in the case of mortgages,
or local governments, in the case of local government bonds, are located, once each
week for three (3) consecutive weeks.
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