Investment FAQ
The Lucas County Treasurer's Office has received public questions about the county's investment in foreign sovereign bonds, including an Israel bond that matures in December 2026. This FAQ explains the Treasurer's legal responsibilities, the role of the Investment Advisory Committee (visit the IAC page here), and guidance provided by Ohio Attorney General Opinion No. 2026-004.
Community members may call or text:
419-574-5822
All calls and text messages to this line will be received by staff, and IAC Chair Lindsay Webb will be personally notified of each communication. While we cannot guarantee a response to every inquiry, all messages will be reviewed. We appreciate your engagement and interest in the work of the Investment Advisory Committee.
Why is the Treasurer's Office receiving questions about Israel bonds?
Lucas County currently holds an Israel bond that matures in December 2026. Some residents have asked the Treasurer's Office to commit now to not reinvesting those funds when the bond matures.
The Treasurer's Office understands that residents have strong views on this issue. County investment decisions, however, must be made under Ohio law and based on the county's fiduciary responsibility to safeguard public funds.
Has a decision been made about reinvesting when the Israel bond matures?
No. The bond matures in December 2026, and the Treasurer's Office will make a decision at that time based on the facts then available, including safety, liquidity, yield, market conditions, credit ratings, statutory eligibility, and the county's investment needs.
The Treasurer's Office is not making a reinvestment commitment in advance because Ohio law requires investment decisions to be based on financial and statutory considerations, not political, ideological, personal, or foreign-policy objectives.
Why won't the Treasurer's Office make a public commitment now?
The Treasurer's Office will not make a premature commitment because the decision must be made based on the financial and legal facts at the time of maturity in December 2026.
Making a commitment now, without evaluating market conditions, credit ratings, available alternatives, liquidity needs, yield, and portfolio diversification at the time of maturity, would not be consistent with the Treasurer's fiduciary responsibilities.
Is the Treasurer's Office planning for alternatives before maturity?
Yes. The Treasurer's Office regularly reviews lawful investment options as part of its ongoing portfolio management. That review includes planning for maturities, evaluating available alternatives, and considering the county's cash-flow and liquidity needs.
Planning ahead is different from making a premature commitment. The final decision will be made when the bond matures, based on the financial facts and legal requirements in effect at that time.
What does Ohio law require when county funds are invested?
Ohio law requires county investment decisions to prioritize the protection of public funds and the best and safest return available to the county. The Attorney General's 2026 opinion explains that county investment policies must be designed to ensure the best and safest return and that investment decisions must not be made with the primary purpose of influencing environmental, social, personal, or ideological policy.
In practical terms, that means the Treasurer's Office must evaluate investments based on financial and legal criteria, including safety, liquidity, yield, maturity, diversification, marketability, credit quality, and compliance with Ohio Revised Code Chapter 135.
Can public concern or community opinion determine the investment decision?
Public input matters and is welcome. However, Ohio law requires county investment decisions to be made based on lawful financial and fiduciary considerations.
The Treasurer's Office cannot make investment decisions primarily to advance or oppose a political, ideological, personal, social, or foreign-policy position. Public comments will be reviewed, but the final investment decision must be based on the county's legal and fiduciary responsibilities.
Are Ohio counties allowed to invest in foreign sovereign bonds?
Yes. The Ohio Attorney General concluded that R.C. 135.35(A)(10) permits counties to invest in the sovereign debt of any foreign nation that satisfies the statutory criteria; the statute is not limited to Israel bonds.
To qualify, foreign sovereign debt must meet statutory requirements, including rating requirements, U.S. dollar payment, diplomatic recognition by the United States, full faith and credit backing of the foreign nation, no prior history of default, and a maturity of not more than five years after purchase. Foreign sovereign debt investments are also capped at two percent of the county's average portfolio.
Does Ohio law require Lucas County to invest in foreign sovereign bonds?
No. Ohio law permits certain foreign sovereign bonds if they meet statutory criteria, but it does not require the county to purchase or reinvest in them.
The Treasurer's Office evaluates all eligible investments based on safety, liquidity, yield, diversification, and compliance with Ohio law.
Does Lucas County invest only in Israel bonds when it invests in foreign sovereign debt?
No. In March 2026, Lucas County invested $1 million in Canada bonds. Canada has a higher sovereign credit rating than the United States, and the investment demonstrates that foreign sovereign bond eligibility under Ohio law is not limited to Israel.
The Treasurer's Office evaluates eligible investments based on Ohio law, market conditions, credit quality, yield, liquidity, diversification, and the county's portfolio needs.
How does the Treasurer's Office consider credit rating changes or downgrades?
Credit ratings are an important factor in evaluating any investment. Ohio law requires certain foreign sovereign debt to meet specific rating requirements at the time of purchase.
When the current Israel bond matures in December 2026, the Treasurer's Office will review then-current credit ratings, market conditions, yield, liquidity needs, and available alternatives before making any decision.
Did the Attorney General say counties must reinvest in Israel bonds?
No. The Attorney General did not say that a county must reinvest in Israel bonds. The opinion says that a decision not to reinvest must be based on a bona fide economic rationale, not ideology or a desire to influence foreign policy.
The opinion also states that if a county decides not to reinvest in a foreign debt instrument that otherwise satisfies Ohio law, that decision must rest on an economic rationale that should be expressly identified.
Can the Investment Advisory Committee recommend against foreign sovereign bonds?
The Investment Advisory Committee may review, advise, and adopt investment policies, but those policies must comply with Ohio law. The Attorney General concluded that an investment advisory committee may limit investments otherwise authorized by R.C. 135.35 only if the policy is designed to ensure the best and safest return of county funds.
A policy or recommendation cannot be primarily designed to influence political, ideological, personal, social, environmental, or foreign-policy outcomes. The Attorney General specifically stated that a policy principally designed to influence foreign affairs, including conflicts in the Middle East, would violate Ohio law.
Is the Treasurer bound by the Investment Advisory Committee's recommendation?
Ordinarily, a county treasurer follows investment policies adopted by the Investment Advisory Committee. However, the Attorney General concluded that a treasurer is not bound to follow a policy that has the primary purpose of influencing environmental, social, personal, or ideological policy.
The Treasurer's Office must comply with state law and fiduciary duties to the public. If a policy or recommendation is unlawful or outside the committee's authority, the Treasurer may not be required to follow it.
Could the Treasurer's investment authority be removed for not following an unlawful policy?
The Attorney General concluded that county commissioners lack authority to remove a county treasurer's investment authority when the treasurer refuses to follow an Investment Advisory Committee policy that is unlawful or beyond the committee's legal authority.
Does Ohio's anti-boycott law apply directly to the county's investment decision?
The Attorney General concluded that R.C. 9.76, Ohio's anti-boycott statute, does not directly apply to a county's non-reinvestment decision because that statute concerns state agencies and procurement contracts.
However, the opinion also explains that actions constituting a boycott under R.C. 9.76 would also violate R.C. 135.35(O) if the investment decision were based primarily on ideological reasons.
In other words, the key legal issue is not whether the county must hold a particular bond. The key issue is whether the county's investment decision is based on lawful financial and fiduciary considerations rather than a political or ideological purpose.
What factors will be considered when the bond matures?
When the bond matures, the Treasurer's Office will evaluate lawful investment options based on factors including:
- Safety of principal
- Liquidity needs of the county
- Yield and available market alternatives
- Credit ratings at the time of purchase
- Maturity limits under Ohio law
- Diversification of the county portfolio
- Marketability of the investment
- Compliance with Ohio Revised Code Chapter 135
- The county's investment policy and fiduciary duties
The Attorney General's opinion emphasizes that county investment decisions must be supported by bona fide economic reasons and must not use economic justifications as a pretext for ideological decision-making.
How can residents share their views?
Residents may contact the Treasurer's Office at 419-574-5822 . Public input is welcome. At the same time, we hope everyone understands the final investment decision must be made under Ohio law and the Treasurer's fiduciary obligation to protect public funds.
Where can I read the Attorney General opinion?
The Attorney General issued Opinion No. 2026-004 on May 8, 2026, in response to questions submitted by the Lucas County Prosecuting Attorney. The questions addressed foreign sovereign debt, the authority of the Investment Advisory Committee, the Treasurer's responsibilities, and the relationship between county investment decisions and Ohio's anti-boycott law.