165.271. Transfer of funds to depositaries — payment of bonds — effect of failure of depositary to deposit security.

425 words·~2 min read·/mo/chapter-165/165-271

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165.271. Transfer of funds to depositaries — payment of bonds — effect of failure of depositary to deposit security. — 1. As soon as the securities satisfactory to the district are deposited, the banking institution depositing the securities shall be deemed as a depositary of the part of the funds and moneys of the school district of which it has been selected as the depositary, until the time fixed by sections 165.201 to 165.291 for another selection. The treasurer of the school district immediately upon the making of the order shall transfer to the depositary the parts of all funds and moneys belonging to the school district that the depositary is entitled to receive by virtue of its designation.

2. In case any bonds, coupons or other indebtedness of the district are payable, by the terms of the bonds, coupons or other evidences of indebtedness, at any particular place outside the district, nothing contained in sections 165.201 to 165.291 shall prevent the board from causing the treasurer to place a sufficient sum of money to meet the same at the place where the debts are payable at the time of their maturity.

3. The treasurer of a seven-director district, as the funds and moneys of the school district come into his hands from time to time, shall deposit them with the depositaries to the credit of the school district, and at all times shall keep on deposit with each depositary approximately that proportion of all the funds and moneys of the district for which the board accepted the bid of the depositary. If at any time the amount of funds and moneys on deposit with any depositary to the credit of the school district is either more or less than the proportion thereof for which the board accepted the bid of the depositary, that fact shall not impair or in any manner affect the liability of the depositary to faithfully perform all the duties and obligations devolving by law upon the depositary.

4. If any banking institution, after being selected as depositary and notified thereof, fails to deposit the security within the time provided by section 165.241 , the board shall take such action as it deems appropriate to safeguard district funds, including deposit to another bank on an expedited basis, and shall proceed to receive new bids and select another depositary in lieu of the one failing to deposit the security.

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(L. 1963 p. 200 § 6-27, A.L. 2018 H.B. 1879 merged with S.B. 769)

(Source: RSMo 1959 §§ 165.440 , 165.443 )