Each board of regents shall appoint a bank or trust company to serve as its depository. The depository shall, before entering upon its duties, execute a bond for the faithful performance of the duties of the office, to be approved by the board. The bond sh all be guaranteed by at least five (5) solvent personal sureties whose solvency exceeds the amount of the bond, or by a surety company authorized to do business in this state, or through the execution of a collateral bond consistent with the general banking laws of this state and the bonding laws applying to the safeguarding of state funds. The depository shall be designated for a period of one (1) year or a part thereof, and before entering upon its duties shall agree with the board of regents as to the am ount of interest to be paid on average daily or average monthly balances. The interest shall not be less than two percent (2%) if the board pays the premium on the depository bond. The penal sum of the depository bond shall be determined by the board of re gents and shall as nearly as possible cover the maximum amount of money that the board might have on hand in the depository at any one (1) time. The depository shall hold for the board, subject to its withdrawal at any time, all funds deposited by the treasurer or any agent of the board, and shall pay over to such person and in such manner as the board directs all funds so deposited. The depository shall keep full and complete accounts of all the board's funds, make such reports to the board or its authoriz ed agents as the board directs, and keep and turn over to the successor of its office all records relating to its transactions and duties together with all public funds on hand.
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