DEPOSITORY.

(a) The board shall designate one or more banks inside or outside the authority to serve as a depository for the authority's money.

(b) Authority money shall be deposited in a depository bank, except that the following may be handled as provided in a trust indenture or resolution:

(1) bond proceeds or proceeds of other obligations;

(2) money pledged to pay the obligations described by Subdivision (1);

(3) money placed in special funds; and

(4) money remitted to a bank of payment for the payment of the principal of and interest on obligations.

(c) To the extent that money in a depository bank or a trustee bank is not invested or insured by the Federal Deposit Insurance Corporation, the money must be secured in the manner provided by law for the security of county money.

(d) The board shall prescribe the term of service for a depository.

(e) Before designating a depository bank, the board shall:

(1) publish notice one time in one or more newspapers of general circulation in the authority that are specified by the board; or

(2) mail a copy of the notice to each bank inside the authority.

(f) The notice must:

(1) state the time and place at which the board will meet to designate a depository bank or banks; and

(2) invite the banks to submit an application to be designated a depository.

(g) At the time stated in the notice, the board shall:

(1) consider the application and the management and condition of each bank that applies; and

(2) designate as a depository the bank or banks:

(A) that offer the most favorable terms for handling the money; and

(B) that the board finds have proper management and are in condition to handle the money.

(h) Membership on the board of an officer or director of a bank does not disqualify the bank from being designated as a depository.

(i) If the board does not receive an application before the time stated in the notice, the board shall designate one or more banks inside or outside the authority as a depository on terms the board considers advantageous to the authority.