Permanent funds of any former school district shall be placed in
charge of the Treasurer of the Town. Said Treasurer, with the approval
of the Council, may designate and appoint a state bank or national
banking association with trust powers located in the County of Hartford
to hold and manage such funds. The income and principal of each of
such funds shall be applied by the Town Board of Education for the
benefit of the school or schools within the limits of the district
formerly existing, for the benefit of which such fund was established,
in such manner as to carry out as nearly as possible the intent of
the grantor of such fund.