Board designates Old National Bank as district depository and authorized investor after Bremer sale
Summary
Owatonna School Board authorized Old National Bank as a depository and as an authorized investor for district assets, a procedural change prompted by Bremer Bank's sale to Old National; board clarified Old National will be one of several institutions authorized for investments.
The Owatonna School Board on Sept. 22 designated Old National Bank as a depository for district funds and authorized the bank to invest district assets, a procedural step required by Bremer Bank's sale to Old National.
Dr. Champa told the board the change ordinarily would be handled at the board's organizational meeting in January but the pending sale of Bremer Bank requires the district to address depository and investment designations now. "The sale of Bremer Bank to Old National Bank is requiring you to address both of these as the depository and then also, for District investments and this change will take place on Friday, October 17," she said.
Board member Elizabeth introduced motions to designate Old National Bank as a depository and to authorize it to invest district assets; both motions were seconded and carried by voice vote. Board members clarified that Old National is not the district's only authorized financial institution. "They're not our only financial institution that has that authority. I mean it's just one of several," a board member said.
The board approved both designations to ensure continuity of payroll, activity-account operations and investment authority ahead of the banking transition date.
