Topic: Deposit Accounts of Governmental Entities
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If we are lending money to a fire protection district (to finance the construction of a new firehouse), can the fire protection district give us a mortgage to secure the loan?
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The Fire Protection District Act explicitly authorizes fire protection districts to execute mortgages (though it does limit, somewhat, the total amount of a fire protection district’s indebtedness). Under the Act, a fire protection district’s board of trustees has the power to “execute a mortgage . . . and the proceeds of the note or notes…
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We have an account held by a DMV office, and they said that we cannot charge any fees on the account and that we must apply to the Secretary of State before collecting any account fees. Is that true?
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We believe that the DMV office has a good argument for their interpretation of the law. As stated in the section referred to in the Secretary of State’s letter, any money deposited in a bank account “shall be forwarded to the Secretary of State by such designate banks or savings and loan associations for deposit…