[HISTORY: Adopted by the City Council of the City of Butler 2-19-1987 Part 1, Title 1, Art. 103, of the 1987 Codified Ordinances. Amendments noted where applicable.]
Capital funds — See Ch. 14.
Council shall, from time to time, designate by resolution a depository or depositories for city funds. Such depositories shall be banks, banking institutions, trust companies or savings and loan associations located in the City of Butler.
All depositories of city funds shall, upon receipt of notice of their selection as depositories of city funds, furnish a bond to secure payment of deposits of city funds and any interest to the city, with a proper warrant of attorney to confess judgment in favor of the city, secured by a surety company to be approved by Council. No one surety company shall be approved in an aggregate amount in excess of five (5) times its capital, surplus and reserve. Such surety bonds shall be in a sum not less than the greatest amount of city funds on deposit at any one (1) time.
However, in lieu of surety bonds of surety companies, the deposit of city moneys and any interest thereon may be secured by the deposit with the City Treasurer of bonds of the United States, of the commonwealth or of any political subdivision thereof, equal to at least one hundred twenty percent (120%) of city moneys and interest of the deposit so secured. Such bonds shall be accompanied by a proper assignment or power of attorney to transfer the same to the city in the event of the failure of the depository to pay to the city the full amount of the deposit of city moneys and interest thereon. Any such deposit of securities shall be maintained to the full amount required in case of any depreciation in value thereof.
Nothing herein contained shall be construed to require a depository to furnish bond or collateral security to cover the amount of any deposit to the extent that the same is insured with the Federal Deposit Insurance Corporation or the Federal Savings and Loan Insurance Corporation.
The City Treasurer shall, upon the designation and qualification of such depositories, immediately transfer thereto the city funds and shall thereafter keep such deposits solely in such depositories in the name of the city.