PRIOR PRINTER'S NO. 1795 PRINTER'S NO. 2541
No. 1533 Session of 1981
INTRODUCED BY NAHILL, NOYE, MAIALE, J. L. WRIGHT, DAWIDA, TELEK
AND ITKIN, JUNE 10, 1981
AS REPORTED FROM COMMITTEE ON LOCAL GOVERNMENT, HOUSE OF
REPRESENTATIVES, AS AMENDED, NOVEMBER 10, 1981
AN ACT
1 Amending the act of May 1, 1933 (P.L.103, No.69), entitled "An
2 act concerning townships of the second class; and 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 REMOVAL AND IMPOSITION OF <--
7 LIMITATIONS ON CERTAIN DEPOSITS AND FURTHER PROVIDING FOR
8 AUTHORIZED INVESTMENTS.
9 The General Assembly of the Commonwealth of Pennsylvania
10 hereby enacts as follows:
11 Section 1. Section 532, act of May 1, 1933 (P.L.103, No.69), <--
12 known as "The Second Class Township Code," reenacted and amended
13 July 10, 1947 (P.L.1481, No.567) and amended May 20, 1949
14 (P.L.1562, No.474), is amended to read:
15 Section 532. Duties.--The township treasurer shall receive
16 all moneys due the township and deposit the same promptly upon
17 receipt thereof in a bank, banking institution, [or] trust
18 company or savings and loan association in the name of the
19 township. He shall keep distinct and accurate accounts of all
20 sums received from taxes and other sources, which accounts shall
1 be open to the inspection of the supervisors and taxpayers of
2 the township. He shall pay out all moneys received by him only
3 on orders drawn by the supervisors of the township. He shall
4 annually state his accounts, and lay the same, together with the
5 vouchers, before the township auditors for settlement.
6 Section 2. Section 535 of the act is amended and a section
7 is added to read:
8 Section 535. Depositories of Township Funds.--The township
9 supervisors may, at their annual organization meeting, or as
10 soon thereafter as is practicable, designate, by resolution, a
11 depository or depositories for township funds, and fix and
12 approve the security to be furnished by any such depository:
13 Provided, That any such funds deposited with any banking
14 institution of this Commonwealth may be insured with the Federal
15 Deposit Insurance Corporation, or any other corporation
16 hereafter organized by the United States for the purpose of
17 insuring deposits, up to the amount to which such corporation
18 is, or may hereafter be, authorized to insure deposits, in any
19 one name, and where so insured the supervisors shall not require
20 such banking institution to furnish additional bond, insurance
21 or security to cover the amount of such deposits so insured.
22 Such designation shall be valid for a period of one year or
23 until such time as another depository or other depositories
24 shall be designated by similar action of the township
25 supervisors.
26 Such depository, or depositories shall be banks, banking
27 institutions, [or] trust companies savings and loan
28 associations, which are subject to national or State
29 supervision, and the accounts of which are insured by a
30 corporation organized under the Laws of the Commonwealth, or by
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1 an instrumentality of the Federal Government, located in the
2 Commonwealth.
3 The township treasurer shall, upon the designation of such
4 depository or depositories, immediately transfer thereto the
5 township funds, and shall thereafter keep such deposits solely
6 in such depository or depositories in the name of the township.
7 No township treasurer, complying with the provisions of this
8 section, nor his surety or sureties, shall be chargeable with
9 losses of township funds caused by the failure or negligence of
10 such depository or depositories.
11 Section 536. Investment of Moneys.--The treasurer may, from
12 time to time pursuant to ordinance or resolution adopted by the
13 board invest and reinvest such moneys of any fund as shall be
14 accumulated beyond the ordinary needs of the various funds and
15 which are not authorized by law to be invested by any other
16 board or commission or township officer by purchasing
17 certificates of deposit from commercial banks domiciled in this
18 Commonwealth up to the level equal to twenty per centum (20%) of
19 such bank's total capital and surplus. Certificates of deposit
20 may likewise be purchased from savings and loan associations
21 domiciled in the Commonwealth up to a level equal to twenty per
22 centum (20%) of such association's assets minus liabilities.
23 Such certificates of deposit need not be collateralized. In
24 applying the proceeding limitation on investments in
25 certificates of deposit, the treasurer must include the similar
26 investments of the township employes' retirement fund. The
27 treasurer shall not at anytime have invested in uncollateralized
28 certificates of deposit more than the total amount authorized by
29 ordinance or resolution of the board. The treasurer shall
30 purchase certificates of deposit under this section pursuant to
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1 procedures established by ordinance or resolution by the board
2 and shall take into account the differences, if any, in
3 competitive bids, the financial strength of each of the bidders
4 and the services provided to or at the request of the township
5 and any of its departments, agencies, boards, commissions or
6 bureaus by each of the bidders.
7 Section 3. This act shall take effect in 60 days.
8 SECTION 1. CLAUSE (3) OF SUBSECTION (D) OF SECTION 902.1, <--
9 ACT OF MAY 1, 1933 (P.L.103, NO.69), KNOWN AS "THE SECOND CLASS
10 TOWNSHIP CODE," REENACTED AND AMENDED JULY 10, 1947 (P.L.1481,
11 NO.567) AND AMENDED JULY 10, 1980 (P.L.475, NO.102), IS AMENDED
12 AND SUBSECTION (D) IS AMENDED BY ADDING CLAUSES TO READ:
13 SECTION 902.1. INVESTMENT OF TOWNSHIP FUNDS.--* * *
14 (D) AUTHORIZED TYPES OF INVESTMENTS FOR TOWNSHIP FUNDS SHALL
15 BE:
16 * * *
17 (3) DEPOSITS IN SAVINGS ACCOUNTS OR TIME DEPOSITS, OTHER
18 THAN CERTIFICATES OF DEPOSIT, OR SHARE ACCOUNTS OF INSTITUTIONS
19 ORGANIZED AND EXISTING UNDER THE LAWS OF THE COMMONWEALTH AND
20 INSURED BY THE FEDERAL DEPOSIT INSURANCE CORPORATION OR THE
21 FEDERAL SAVINGS AND LOAN INSURANCE CORPORATION OR THE NATIONAL
22 CREDIT UNION SHARE INSURANCE FUND OR THE PENNSYLVANIA DEPOSIT
23 INSURANCE CORPORATION OR THE PENNSYLVANIA SAVINGS ASSOCIATION
24 INSURANCE CORPORATION TO THE EXTENT THAT SUCH ACCOUNTS ARE SO
25 INSURED, AND, FOR ANY AMOUNTS ABOVE THE INSURED MAXIMUM,
26 PROVIDED THAT APPROVED COLLATERAL AS PROVIDED BY LAW THEREFORE
27 SHALL BE PLEDGED BY THE DEPOSITORY.
28 * * *
29 (6) CERTIFICATES OF DEPOSIT PURCHASED FROM INSTITUTIONS
30 ORGANIZED AND EXISTING UNDER THE LAWS OF THE COMMONWEALTH AND
19810H1533B2541 - 4 -
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, HOWEVER, FOR ANY AMOUNTS ABOVE THE INSURED MAXIMUM,
7 SUCH CERTIFICATES OF DEPOSIT NEED NOT BE COLLATERALIZED.
8 CERTIFICATES OF DEPOSIT PURCHASED FROM COMMERCIAL BANKS SHALL BE
9 LIMITED TO AN AMOUNT EQUAL TO TWENTY PERCENT OF A BANK'S TOTAL
10 CAPITAL AND SURPLUS. CERTIFICATES OF DEPOSIT PURCHASED FROM
11 SAVINGS AND LOAN ASSOCIATIONS OR SAVINGS BANKS SHALL BE LIMITED
12 TO AN AMOUNT EQUAL TO TWENTY PERCENT OF AN INSTITUTIONS ASSETS
13 MINUS LIABILITIES.
14 (7) ANY INVESTMENT AUTHORIZED BY 20 PA.C.S. CHAPTER 73
15 (RELATING TO FIDUCIARIES INVESTMENTS) SHALL BE AN AUTHORIZED
16 INVESTMENT FOR ANY PENSION OR RETIREMENT FUND.
17 * * *
18 SECTION 2. THE AMENDMENTS AFFECTING SECTION 902.1(D)(3) AND
19 (6) SHALL TAKE EFFECT IN 60 DAYS. THE AMENDMENT AFFECTING
20 SECTION 902.1(D)(7) SHALL TAKE EFFECT IMMEDIATELY AND SHALL BE
21 RETROACTIVE TO SEPTEMBER 10, 1980.
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