PRINTER'S NO. 1799
No. 1537 Session of 1981
INTRODUCED BY NAHILL, NOYE, MAIALE, J. L. WRIGHT, DAWIDA, TELEK
AND ITKIN, JUNE 15, 1981
REFERRED TO COMMITTEE ON LOCAL GOVERNMENT, JUNE 15, 1981
AN ACT
1 Amending the act of June 24, 1931 (P.L.1206, No.331), entitled
2 "An act concerning townships of the first class; amending,
3 revising, consolidating, and changing the law relating
4 thereto," further providing for the investment of funds by
5 the treasurer, and permitting savings and loan associations
6 to be designated as depositories.
7 The General Assembly of the Commonwealth of Pennsylvania
8 hereby enacts as follows:
9 Section 1. Section 803 and the first paragraph of section
10 808, act of June 24, 1931 (P.L.1206, No.331), known as "The
11 First Class Township Code," reenacted and amended May 27, 1949
12 (P.L.1955, No.569), are amended and a section is added to read:
13 Section 803. Accounts to Be Kept by Treasurer.--Every
14 township treasurer shall take charge of all township moneys from
15 all sources, and promptly deposit the same in a bank, banking
16 institution, [or] trust company or savings and loan association
17 in the name of the township, and keep distinct accounts of all
18 sums received from taxes and other sources, which accounts shall
19 at all times be open to the inspection of the commissioners and
1 township auditor or controller. He shall annually state his
2 accounts, and lay the same, together with the books and the
3 vouchers, before the township auditors or controller for audit.
4 Section 808. Depositories of Township Funds; Selection;
5 Bonds.--The board of commissioners shall, from time to time,
6 designate, by resolution, a depository or depositories for
7 township funds. Such depository or depositories shall be banks,
8 banking institutions, [or] trust companies or savings and loan
9 associations, which are subject to national or State
10 supervision, and the accounts of which are insured by a
11 corporation organized under the Laws of the Commonwealth, or by
12 an instrumentality of the Federal Government, located in the
13 Commonwealth.
14 * * *
15 Section 809. Investment of Moneys.--The treasurer may, from
16 time to time pursuant to ordinance or resolution adopted by the
17 board invest and reinvest such moneys of any fund as shall be
18 accumulated beyond the ordinary needs of the various funds and
19 which are not authorized by law to be invested by any other
20 board or commission or township officer by purchasing
21 certificates of deposit from commercial banks domiciled in this
22 Commonwealth up to the level equal to twenty per centum of such
23 bank's total capital and surplus. Certificates of deposit may
24 likewise be purchased from savings and loan associations
25 domiciled in the Commonwealth up to a level equal to twenty per
26 centum of such association's assets minus liabilities. Such
27 certificates of deposit need not be collateralized. In applying
28 the proceeding limitation on investments in certificates of
29 deposit, the treasurer must include the similar investments of
30 the township employes' retirement fund. The treasurer shall not
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1 at anytime have invested in uncollateralized certificates of
2 deposit more than the total amount authorized by ordinance or
3 resolution of the board. The treasurer shall purchase
4 certificates of deposit under this section pursuant to
5 procedures established by ordinance or resolution by the board
6 and shall take into account the differences, if any, in
7 competitive bids, the financial strength of each of the bidders
8 and the services provided to or at the request of the township
9 and any of its departments, agencies, boards, commissions or
10 bureaus by each of the bidders.
11 Section 2. This act shall take effect in 60 days.
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