HOUSE AMENDED
PRIOR PRINTER'S NO. 635 PRINTER'S NO. 1081
No. 603 Session of 1979
INTRODUCED BY LEWIS, ORLANDO, STOUT, STAUFFER AND CORMAN,
APRIL 23, 1979
AS REPORTED FROM COMMITTEE ON LOCAL GOVERNMENT, HOUSE OF
REPRESENTATIVES, AS AMENDED, SEPTEMBER 17, 1979
AN ACT
1 Amending the act of February 1, 1966 (1965, P.L.1656, No.581),
2 entitled "An act concerning boroughs, and revising, amending
3 and consolidating the law relating to boroughs," further
4 providing for the investment of funds.
5 The General Assembly of the Commonwealth of Pennsylvania
6 hereby enacts as follows:
7 Section 1. Clause (6) of section 1005, act of February 1,
8 1966 (1965, P.L.1656, No.581), known as "The Borough Code," is
9 amended to read:
10 Section 1005. Powers of Council.--The council of the borough
11 shall have power:
12 * * *
13 (6) [To make investment (i) of borough sinking funds as
14 authorized by the Municipal Borrowing Law, (ii) of moneys in the
15 general fund or in special funds in United States Treasury
16 bills, or to place such funds in savings accounts or share
17 accounts of institutions insured by the Federal Deposit
18 Insurance Corporation, or the Federal Savings and Loan Insurance
1 Corporation to the extent that such accounts are so insured when
2 in its judgment the interests of the borough will be enhanced
3 thereby, and to dispose of such securities or to withdraw any
4 funds in any such savings account or share account when the
5 funds may be needed by the borough. Any such purchase, sale or
6 withdrawal shall be made by the president and secretary of
7 council by authority of a resolution adopted by the council.] To
8 (i) make investment of borough sinking funds as authorized by
9 the act of July 12, 1972 (P.L.781, No.185), known as the "Local
10 Government Unit Debt Act"; (ii) make investment of moneys in the
11 General Fund and in special funds of the borough other than the
12 sinking funds as authorized by Article XIII of this act; and
13 (iii) liquidate any such investment, in whole or in part, by
14 disposing of securities or withdrawing funds on deposit. Any
15 action taken to make or to liquidate any investment shall be
16 made by the officers designated by action of the borough
17 council.
18 * * *
19 Section 2. The act is amended by adding a section to read:
20 Section 1316. Investment of Funds.--(a) Council shall
21 invest borough funds consistent with sound business practice.
22 (b) Council shall provide for an investment program subject
23 to restrictions contained in this act and in any other
24 applicable statute and any rules and regulations adopted by
25 council.
26 (c) Authorized types of investments for borough funds shall
27 be:
28 (i) United States Treasury bills.
29 (ii) Short-term obligations of the United States Government
30 or its agencies or instrumentalities.
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1 (iii) Deposits in savings accounts or time deposits or share
2 accounts of institutions insured by the Federal Deposit
3 Insurance Corporation or the Federal Savings and Loan Insurance
4 Corporation OR THE NATIONAL CREDIT UNION SHARE INSURANCE FUND to <--
5 the extent that such accounts are so insured, and, for any
6 amounts above the insured maximum, provided that approved
7 collateral as provided by law therefore shall be pledged by the
8 depository.
9 (iv) Obligations of the United States of America or any of
10 its agencies or instrumentalities backed by the full faith and
11 credit of the United States of America, the Commonwealth of
12 Pennsylvania or any of its agencies or instrumentalities backed
13 by the full faith and credit of the Commonwealth, or of any
14 political subdivision of the Commonwealth of Pennsylvania or any
15 of its agencies or instrumentalities backed by the full faith
16 and credit of the political subdivision.
17 (v) Shares of an investment company registered under the
18 Investment Company Act of 1940, whose shares are registered
19 under the Securities Act of 1933, provided that the only
20 investments of that company are in the authorized investments
21 for borough funds listed in (i) through (iv).
22 (d) In making investments of borough funds, council shall
23 have authority:
24 (i) To permit assets pledged as collateral under subsection
25 (c)(iii), to be pooled in accordance with the act of August 6,
26 1971 (P.L.281, No.72), relating to pledges of assets to secure
27 deposits of public funds.
28 (ii) To combine moneys from more than one fund under borough
29 control for the purchase of a single investment, provided that
30 each of the funds combined for the purpose shall be accounted
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1 for separately in all respects and that the earnings from the
2 investment are separately and individually computed and
3 recorded, and credited to the accounts from which the investment
4 was purchased.
5 (iii) To join with one or more other political subdivisions
6 and municipal authorities in accordance with the act of July 12,
7 1972 (P.L.762, No.180), entitled "An act relating to
8 intergovernmental cooperation," in the purchase of a single
9 investment, provided that the requirements of subclause (ii) on
10 separate accounting of individual funds and separate
11 computation, recording and crediting of the earnings therefrom
12 are adhered to.
13 Section 3. This act shall take effect in 60 days.
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