SENATE AMENDED
PRIOR PRINTER'S NOS. 1796, 2542, 2629 PRINTER'S NO. 3730
No. 1534 Session of 1981
INTRODUCED BY NAHILL, NOYE, MAIALE, J. L. WRIGHT, DAWIDA, TELEK
AND ITKIN, JUNE 15, 1981
SENATOR JUBELIRER, RULES AND EXECUTIVE NOMINATIONS, IN SENATE,
RE-REPORTED AS AMENDED, NOVEMBER 17, 1982
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 removal and the imposition of
5 limitations on certain deposits and further providing for
6 authorized investments.
7 The General Assembly of the Commonwealth of Pennsylvania
8 hereby enacts as follows:
9 Section 1. Clause (3) of subsection (d) of section 1804.1,
10 act of June 23, 1931 (P.L.932, No.317), known as "The Third
11 Class City Code," reenacted and amended June 28, 1951 (P.L.662,
12 No.164) and amended July 10, 1980 (P.L.478, No.103), is amended
13 and clauses are added to read:
14 Section 1804.1. Investment of City Funds.--* * *
15 (d) Authorized types of investments for city funds shall be:
16 (3) Deposits in savings accounts or time deposits, other
17 than certificates of deposit, or share accounts of institutions
18 having their principal place of business in the Commonwealth and <--
1 insured by the Federal Deposit Insurance Corporation or the
2 Federal Savings and Loan Insurance Corporation or the National
3 Credit Union Share Insurance Fund or the Pennsylvania Deposit
4 Insurance Corporation or the Pennsylvania Savings Association
5 Insurance Corporation to the extent that such accounts are so
6 insured, and, for any amounts above the insured maximum,
7 provided that approved collateral as provided by law therefore
8 shall be pledged by the depository.
9 * * *
10 (6) Certificates of deposit purchased from institutions
11 having their principal place of business in the Commonwealth and <--
12 insured by the Federal Deposit Insurance Corporation or the
13 Federal Savings and Loan Insurance Corporation or the National
14 Credit Union Share Insurance Fund or the Pennsylvania Deposit
15 Insurance Corporation or the Pennsylvania Savings Association
16 Insurance Corporation to the extent that such accounts are so
17 insured, however, for any amounts above the insured maximum,
18 such certificates of deposit need not be collateralized. SHALL <--
19 BE COLLATERALIZED BY A PLEDGE OR ASSIGNMENT OF ASSETS OF THE
20 INSTITUTION, AND SUCH COLLATERAL MAY INCLUDE LOANS (INCLUDING
21 INTEREST IN POOLS OF LOANS) SECURED BY FIRST MORTGAGE LIENS ON
22 REAL PROPERTY. Certificates of deposit purchased from commercial
23 banks shall be limited to an amount equal to twenty per centum
24 of a bank's total capital and surplus. Certificates of deposit
25 purchased from savings and loan associations or savings banks
26 shall be limited to an amount equal to twenty per centum of an
27 institution's assets minus liabilities.
28 (7) Any investment authorized by 20 Pa.C.S. Ch. 73 (relating
29 to fiduciaries investments) shall be an authorized investment
30 for any pension or retirement fund.
19810H1534B3730 - 2 -
1 * * *
2 Section 2. The amendments affecting section 1804.1(d)(3) and
3 (6) shall take effect in 60 days. The amendment affecting
4 section 1804.1(d)(7) shall take effect immediately and shall be
5 retroactive to September 10, 1980.
C4L11JKD/19810H1534B3730 - 3 -