KRS 160.570: Depository of board -- Bond -- Duties.

(1) Each board of education shall appoint a bank, trust company, or savings and loan

association to serve as its depository, and if its annual receipts from all sources

exceed one hundred thousand dollars ($100,000), it may designate additional

depositories. The depository may be designated for a period not to exceed two (2)

years, and before entering upon its duties shall agree with the board as to the rate of

interest to be paid on average daily or monthly balances.

(2) The depository selected shall, before e ntering upon its duties, provide collateral in

accordance with KRS 41.240, to be approved by the local board of education in

accordance with Kentucky Board of Education administrative regulations, and to be

approved by the commissioner of education. A board of education may enter into an

agreement with its depository whereby the premium on collateral guaranteed by a

surety company may be paid either by the board or by the depository. If the board

pays the premium, the depository shall allow the board not le ss than two percent

(2%) interest on its average daily or average monthly balances.

(3) The depository shall hold for the board all funds deposited by the treasurer of the

board or its tax collector or duly authorized agent, subject to withdrawal by the

board at any time, and shall pay all funds so deposited to such person and in such

manner as the board directs. The depository shall keep full and complete accounts

of all of the board's funds, and make reports to the board or its authorized agents

upon request. The depository shall keep all records relating to the transactions and

duties of the office and turn them over to the successor of its office along with all

school funds in hand. The board of education may at any time require a due and

proper audit of the depository's records of the funds of the board by a competent

outside agent.