KRS 164.440: Depository -- Bond and duties of.

Each board of regents shall appoint a bank or trust company to serve as its depository.

The depository shall, before entering upon its duties, execute a bond for the faithful

performance of the duties of the office, to be approved by the board. The bond sh all be

guaranteed by at least five (5) solvent personal sureties whose solvency exceeds the

amount of the bond, or by a surety company authorized to do business in this state, or

through the execution of a collateral bond consistent with the general banking laws of this

state and the bonding laws applying to the safeguarding of state funds. The depository

shall be designated for a period of one (1) year or a part thereof, and before entering upon

its duties shall agree with the board of regents as to the am ount of interest to be paid on

average daily or average monthly balances. The interest shall not be less than two percent

(2%) if the board pays the premium on the depository bond. The penal sum of the

depository bond shall be determined by the board of re gents and shall as nearly as

possible cover the maximum amount of money that the board might have on hand in the

depository at any one (1) time. The depository shall hold for the board, subject to its

withdrawal at any time, all funds deposited by the treasurer or any agent of the board, and

shall pay over to such person and in such manner as the board directs all funds so

deposited. The depository shall keep full and complete accounts of all the board's funds,

make such reports to the board or its authoriz ed agents as the board directs, and keep and

turn over to the successor of its office all records relating to its transactions and duties

together with all public funds on hand.