PRINTER'S NO. 1796
No. 1534 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 23, 1931 (P.L.932, No.317), entitled
2 "An act relating to cities of the third class; and amending,
3 revising, and consolidating the law relating thereto,"
4 further providing for the investment of funds by the
5 treasurer, and permitting savings and loan associations to be
6 designated as depositories.
7 The General Assembly of the Commonwealth of Pennsylvania
8 hereby enacts as follows:
9 Section 1. Section 1406, act of June 23, 1931 (P.L.932,
10 No.317), known as "The Third Class City Code," reenacted and
11 amended June 28, 1951 (P.L.662, No.164), is amended and a
12 section is added to read:
13 Section 1406. Depositories of City Funds.--The treasurer
14 shall keep the public funds in such banks [or financial
15 depositories], banking institutions, trust companies or savings
16 and loan associations, which are subject to national or State
17 supervision, and the accounts of which are insured by a
18 corporation organized under the laws of the Commonwealth, or by
19 an instrumentality of the Federal Government, as council may
1 direct, under such restrictions and safeguards as council may
2 provide, and shall verify his accounts whenever required, to the
3 satisfaction of council.
4 No treasurer complying with the provisions of this section
5 and any ordinance of the city, nor his surety or sureties, shall
6 be chargeable with losses of city funds caused by the insolvency
7 or negligence of any such city depositories.
8 Section 1406.1. Investment of Moneys.--The treasurer may,
9 from time to time pursuant to ordinance or resolution adopted by
10 the council invest and reinvest such moneys of any fund as shall
11 be accumulated beyond the ordinary needs of the various funds
12 and which are not authorized by law to be invested by any other
13 board or commission or city officer by purchasing certificates
14 of deposit from commercial banks domiciled in this Commonwealth
15 up to the level equal to twenty per centum of such bank's total
16 capital and surplus. Certificates of deposit may likewise be
17 purchased from savings and loan associations domiciled in the
18 Commonwealth up to a level equal to twenty per centum of such
19 association's assets minus liabilities. Such certificates of
20 deposit need not be collateralized. In applying the proceeding
21 limitation on investments in certificates of deposit, the
22 treasurer must include the similar investments of the City
23 Employees' Retirement Fund. The treasurer shall not at anytime
24 have invested in uncollateralized certificates of deposit more
25 than the total amount authorized by ordinance or resolution of
26 the council. The treasurer shall purchase certificates of
27 deposit under this section pursuant to procedures established by
28 ordinance or resolution by the council and shall take into
29 account the differences, if any, in competitive bids, the
30 financial strength of each of the bidders and the services
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1 provided to or at the request of the city and any of its
2 departments, agencies, boards, commissions or bureaus by each of
3 the bidders.
4 Section 2. This act shall take effect in 60 days.
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