Primary Depository

2026-11-03

ACCEPTABLE BANKS – The board hereby limits the banks that are acceptable for submitting a proposal for “ primary depository ” to commercial banks or savings and loan institutions that have an office in Anderson County , Kentucky . The bank must be able to secure all deposit account balances exceeding coverage of FDIC insurance with approved collateral as required by the Commonwealth of Kentucky . 11 . CONSTRUCTION / BOND ACCOUNTS – This depository agreement shall also include , if requested by the Board , any new construction accounts established as a result of selling school revenue bonds . The primary depository shall pledge securities of the United States Government having a fair market value at least equal to the balance of these accounts or secure all balances exceeding coverage of FDIC insurance with approved collateral as required by the Commonwealth of Kentucky . The securities pledged for construction accounts are in addition to the collateral requirements shown on the Official Proposal Form . 12 . INVESTMENTS – The Board reserves the right to direct the Treasurer or Superintendent to invest any excess funds in any demand account , less the compensating balance required by the bank for servicing the district ’ s account , in any legal manner deemed to be in the best interest of the Board and is not limited to investing with the depository bank . 13 . INVESTMENT OPTIONS – The Board reserves the right to use any or all investment vehicles offered by the bank that the Board , in its discretion , deems to be the most advantageous to the Board . The primary depository agrees to negotiate with the Board to permit the Board to take advantage of any new type of service or new investment procedure that may become available and permissible for use by a board of education during the term of this agreement . 14 . BORROWING – The primary depository shall extend credit as needed on legally drawn notes of the Board . The Board reserves the right to negotiate the terms for such borrowings , and is not limited to borrowing funds from the primary depository . 15 . STATEMENTS – Monthly statements of all accounts , along with canceled check images ( sorted numerically ), are to be furnished electronically to the Board by the primary depository within three ( 3 ) banking days following the close of each month . Monthly statements must show the number of deposits / withdrawals and the monthly / year - to - date interest earned . Accuracy of the information contained on the bank statement is very important . Beginning dates for the statements shall be the 1 st calendar day of the month and the ending dates shall be the last calendar day of the month . Each month , the primary depository shall provide the Board with a listing of checks cleared . 16 . ELECTRONIC BANKING – The primary depository shall offer the Board full electronic banking privileges that shall , at a minimum , permit the Board to see daily transactions and make online transfers . If the Board maintains security over its password to the online banking system , the primary depository agrees to hold harmless the Board from losses due to a security breach of the bank ’ s online banking system . The primary depository shall also provide an electronic data file for check clearing that is compatible with MUNIS ( Enterprise ERP ). 17 . SECURITY – The primary depository shall offer the Board security tokens to be used in conjunction with the user ID and password during the electronic banking login process if necessary for internet banking . The bank shall provide fraud prevention tools to include alerts regarding changes in account and / or routing numbers for the same payee from a previous direct deposit file . This could be provided through ACH Alert . 18 . COURIER SERVICE – The primary depository shall make available a courier service for deposit pick up at the Central Board Office at no cost with deposit pickups scheduled daily or as needed . 19 . CREDIT CARDS – The primary depository shall provide credit cards to chosen individuals at no cost . 20 . CHECKS / SUPPLIES – The primary depository is responsible for providing , at no charge to the Board or schools ( see # 10 above ), all reasonable items needed to transact banking business . These items include , but are not limited to , checks , direct deposit advices , deposit tickets , boxes for rolled coins , safe deposit box ( for the Board only ), locking bank bags , canvas bags for collection of money from events , etc . Checks / Direct Deposit Advices : The Board shall have exclusive control over the vendor selected to provide checks and direct deposit advices , provided the requirements of the Federal Reserve System are met . The Board may utilize any and all security features available for its check stock . The primary depository agrees to reimburse the Board for the cost of having its checks and direct deposit advices printed . With the approval of the Board , the primary depository may furnish these checks and direct deposit advices , rather than reimburse the Board for cost incurred . The Boards ’ method of issuing checks to employees and to vendors is subject to change . 21 . ACCOUNTING SOFTWARE CHANGES – The primary depository shall reimburse the Board or schools for any fees associated with accounting software updates related to changing banks . 22 . TRANSMITTALS – The primary depository shall be capable of accepting an electronic data transmission of direct deposit credits , and shall be able to transmit to the Federal Reserve , credit unions , other banking institutions , etc . The primary depository shall provide the Board with software needed to accomplish the electronic data transmission . This software shall be compatible with the Board ’ s software and shall permit verification of accuracy of account information . The primary depository shall also provide an electronic data file for check clearing that is compatible with MUNIS ( Enterprise ERP ). Verification of receipt and posting of the bi - monthly direct deposit payroll file is required . 23 . DIRECT DEPOSIT – Direct deposit is offered by the Anderson County Board of Education . The primary depository shall provide this service free of charge to the school district . The Depository agrees to provide fee - free checking accounts to Board employees to facilitate direct deposit of payroll .

Kentucky

2026-05-08