It shall be the duty of the Treasury Department to collect from all State depositories interest on State deposits. Active and inactive depositories shall pay interest at such rates as shall be prescribed by the Board of Finance and Revenue, except that, if an active account is opened in an inactive depository by a department other than the Treasury Department, or by a board or commission, the rate of interest thereon may, with the approval of the Board of Finance and Revenue, be reduced to that payable by active depositories. Interest on deposits shall in all cases be credited to the fund upon which the interest was earned, except that interest on deposits of the Liquid Fuels Tax Fund shall be credited to the Motor License Fund, and interest on deposits of the Fire Insurance Tax Fund shall be credited to the State Insurance Fund, and the interest and earnings on deposits from the Liquor License Fund shall be credited to the General Fund, and the interest and earnings on the Special Disaster Relief Fund, which have not heretofore been credited to the General Fund as well as all future interest and earnings on the fund, shall be credited to the Special Disaster Relief Fund of the State Council of Civil Defense and used for flood relief and flood control purposes under the provisions of Act No. 17-A approved September 3, 1955.

Interest payable hereunder shall become due semi-annually, on the thirtieth day of June, and the thirty-first day of December, each year, and it shall be the duty of every bank, banking institution, and trust company, acting as a State depository, to make an interest report, relative to its State deposits, to the Treasury Department, in triplicate, within thirty days after the dates above set forth. The Treasury Department shall retain one copy of the report, transmit one to the Department of the Auditor General for audit, and the third to the Department of Revenue for its information.

If any bank, banking institution, or trust company shall, within thirty days after the end of any interest period, fail to make such report for such period, the Treasury Department shall certify that fact to the Department of Revenue, with such information as shall enable that department to settle and collect the penalty hereinafter in this act provided.