Excepting for municipal water utility funds, which may be invested in accordance with § 52.19, the Clerk-Treasurer may in accordance with this section invest any moneys belonging to or on deposit with the civil town and not required to be immediately expended. The investments may be made in any security or investment instrument authorized by I.C. 5-13-9, but subject to any public depository distribution requirements as provided by I.C. 5-13-9-5.6, if applicable to the investment. Investment shall be made in instruments having sufficient liquidity to permit the town to meet its expenditure requirements in a timely manner and shall not be made in any security maturing in more than one year from the date of the investment unless the Clerk-Treasurer determines on a reasonable basis that all moneys so invested are not likely to be required for a longer period of time. The Clerk-Treasurer may sell or otherwise liquidate an investment if the invested moneys should prove to be needed to pay the expenses of the town, in order to make a more advantageous investment or to forestall principal devaluation. Unless otherwise provided by law, applicable state or federal administrative regulations or town ordinance, investments shall be made from total moneys on deposit rather than by specific fund, and all net earnings or capital gains realized from the investment shall accrue to the General Fund, and only the amount of original principal shall be returned to the fund of origin. Any transaction charges applying when an investment is initially made shall be paid out of and considered part of the principal invested; any other administration fees or transaction charges which apply during the term of or by virtue of the liquidation or conversion of the investment shall be payable from earnings and capital gains and deductible therefrom before distribution to the appropriate fund or funds and are not obligations against the principal except to the extent that earnings and capital gains are inadequate to cover any such fees and charges. To the extent not inconsistent with the foregoing requirements of this section, moneys from different funds may be combined and put in a single investment if a financial advantage to the town would result. When any investment is made in accordance with this section and applicable laws, the Clerk-Treasurer shall not be held personally liable for any loss of principal which may incidentally result from the making or necessary sale or liquidation of the investment.
(`86 Code, § 9-3-6) (Ord. 86-C16, passed 9-30-86)