PRINTER'S NO. 3476
No. 2624 Session of 1980
INTRODUCED BY L. E. SMITH, WASS, KOWALYSHYN AND DiCARLO,
JUNE 4, 1980
REFERRED TO COMMITTEE ON APPROPRIATIONS, JUNE 4, 1980
AN ACT
1 Amending the act of April 9, 1929 (P.L.343, No.176), entitled
2 "An act relating to the finances of the State government;
3 providing for the settlement, assessment, collection, and
4 lien of taxes, bonus, and all other accounts due the
5 Commonwealth, the collection and recovery of fees and other
6 money or property due or belonging to the Commonwealth, or
7 any agency thereof, including escheated property and the
8 proceeds of its sale, the custody and disbursement or other
9 disposition of funds and securities belonging to or in the
10 possession of the Commonwealth, and the settlement of claims
11 against the Commonwealth, the resettlement of accounts and
12 appeals to the courts, refunds of moneys erroneously paid to
13 the Commonwealth, auditing the accounts of the Commonwealth
14 and all agencies thereof, of all public officers collecting
15 moneys payable to the Commonwealth, or any agency thereof,
16 and all receipts of appropriations from the Commonwealth and
17 imposing penalties; affecting every department, board,
18 commission, and officer of the State government, every
19 political subdivision of the State, and certain officers of
20 such subdivisions, every person, association, and corporation
21 required to pay, assess, or collect taxes, or to make returns
22 or reports under the laws imposing taxes for State purposes,
23 or to pay license fees or other moneys to the Commonwealth,
24 or any agency thereof, every State depository and every
25 debtor or creditor of the Commonwealth," making guaranteed
26 student loans acceptable as security for the deposit of State
27 moneys.
28 The General Assembly of the Commonwealth of Pennsylvania
29 hereby enacts as follows:
30 Section 1. Subclause 2 of clause (a) of section 505, act of
1 April 9, 1929 (P.L.343, No.176), known as "The Fiscal Code,"
2 amended December 14, 1967 (P.L.810, No.347), is amended to read:
3 Section 505. State Depositories.--The Board of Finance and
4 Revenue shall have the power, and its duty shall be,
5 (a) To select and designate, as depositories for the State
6 moneys, banks, banking institutions, or trust companies, which
7 are subject to national or State supervision, and each of which,
8 * * *
9 2. Shall, upon the receipt of notice of its selection as a
10 depository of State moneys, furnish a bond to secure payment of
11 deposits and interests to the Commonwealth of Pennsylvania, with
12 a proper warrant of attorney to confess judgment in favor of the
13 Commonwealth, secured by a surety company or individual sureties
14 to be approved by the board, in the amount of the deposit to be
15 made. If a corporate bond be given, no one surety company shall
16 be approved in an aggregate amount in excess of five times its
17 capital surplus, and reserve, and, whenever individual sureties
18 are presented for approval, they shall qualify in an aggregate
19 over and above their individual liabilities to three times the
20 amount of the deposit. No one person may qualify for more than
21 one-fourth of the total amount of the bond required: Provided,
22 That when any deposit of State moneys is insured with the
23 Federal Deposit Insurance Commissioner or any other corporation
24 hereafter organized by the United States for the purpose of
25 insuring deposits, such depository shall not be required to
26 furnish bond or security to cover the amount of such deposit so
27 insured: And provided further, That, in lieu of the surety bonds
28 of surety companies or of individuals as aforesaid, the deposit
29 of State moneys may be secured by the deposit with the State
30 Treasurer, with the Federal Reserve Bank of Philadelphia or
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1 Pittsburgh, or with any bank or bank and trust company organized
2 under the laws of this Commonwealth or any national association
3 located in this Commonwealth which shall be approved by the
4 State Treasurer, subject to such regulations as may be
5 prescribed by the Board of Finance and Revenue or the State
6 Treasurer, or both, as the case may be, of bonds or notes of the
7 United States, or bonds or notes which the United States fully
8 guarantees both as to principal and interest, or bonds or notes
9 representing loans to students in postsecondary schools which
10 are insured by the Federal Government or by the State agency
11 administering the student loan insurance program in accordance
12 with a formal reinsurance agreement with the United States
13 Secretary of Education or his designee or successor in title,
14 bonds of the Delaware River Joint Commissions, bonds of the
15 Pennsylvania Turnpike Commission, bonds of the State Public
16 School Building Authority, bonds of The General State Authority,
17 bonds of the State Highway and Bridge Authority, bonds of the
18 Pennsylvania Housing Agency, bonds or tax anticipation notes of
19 this Commonwealth, or of any municipal subdivision, institution
20 district, or school district or county thereof, to be approved
21 by the board, in an amount measured by their actual market value
22 equal to the amount of deposit so secured and twenty per centum
23 in addition thereto. Said bonds and any additions to and
24 substitutions and exchanges therefor shall be subject to proper
25 assignment, or right to sell, or power of attorney to transfer
26 the same, and said trust deposit of securities shall be
27 maintained, on request, at the amount aforesaid, in case of any
28 depreciation in the value thereof: Provided, That no bonds, or
29 other security, shall be required of State depositories for
30 State deposits to the extent, that such State deposits are
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1 insured under the provisions of Section 12 B of the Federal
2 Reserve Act, approved the twenty-third day of December, one
3 thousand nine hundred and thirteen, its amendments and
4 supplements.
5 * * *
6 Section 2. This act shall take effect immediately.
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