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Saturday, October 18, 2008

Ind. Law - Indiana's Constitutional provisions guiding state investments

Curious because of current market conditions, I've reviewed the Indiana Constitution and statutes, but cannot say for sure that I've found everything.

This is what I found in Article 11. An amendment to the language of the 1851 version of Section 12 was approved by the voters in 1996

1851 version of Article 11, Section 12

Section 12. The State shall not be a stockholder in any bank, after the expiration of the present bank charter;

nor shall the credit of the State ever be given, or loaned, in aid of any person, association, or corporation;

nor shall the State hereafter become a stockholder in any corporation or association.


Current version of Article 11, Section 12

Section 12. The State shall not be a stockholder in any bank;

nor shall the credit of the State ever be given, or loaned, in aid of any person, association or corporation;

nor shall the State become a stockholder in any corporation or association.

However, the General Assembly may by law, with limitations and regulations, provide that prohibitions in this section do not apply to a public employee retirement fund.

(History: As Amended November 5, 1996).

As for state laws relating to state investments, see:

IC 5-13-10.5, state investments. Note that IC 5-13-10.5-2 states that "the treasurer of state, under the guidelines established by the state board of finance, * * * may invest or reinvest funds held by the treasurer of state * * * ." The governor, auditor and treasurer constitute the state Board of Finance. I have not located the guidelines referenced. The Board of Finance does not appear to have promulgated rules.

IC 5-10.3-5, PERF accounts and investments, particularly Sec. 3. Who is on the PERF board of trustees? See IC 5-10.3-3.

Posted by Marcia Oddi on October 18, 2008 09:32 AM
Posted to Indiana Government | Indiana Law