1. (a) The board may enter into a custodial agreement on terms the board considers in the best interest of the fund with a bank or trust company that is domiciled in the United States and approved by the board to:

   1. (1) act in a fiduciary capacity; and

   2. (2) manage custodial accounts;

      on behalf of the fund.

2. (b) The agreement described in subsection (a) may authorize the custodian to:

   1. (1) hold the fund's securities and other investments in the name of the fund or a nominee, or in bearer form;
   2. (2) collect the income and other receipts from the securities and other investments and deposit them subject to the instructions of the board or the board's representative;
   3. (3) reinvest the receipts on the direction of the board or the board's representative;
   4. (4) maintain accounting records and prepare reports as may be required for use by the fund and the state board of accounts; and
   5. (5) perform other services for the board that are appropriate and customary for the custodian.

3. (c) The custodian is responsible for all securities held in the name of its nominee for the fund.

   [Pre-2006 Education Finance Recodification Citation: 21-6.1-3-13.]

As added by P.L.2-2006, SEC.28. Amended by P.L.90-2008, SEC.3.