Pennsylvania Act 1980-93 — INCORPORATED TOWNS - INVESTMENT OF FUNDS

Act text

INCORPORATED TOWNS - INVESTMENT OF FUNDS
                  Act of Jul. 3, 1980, P.L. 372, No. 93               Cl. 08
                                  AN ACT

     Authorizing the town council of incorporated towns to make
        investments of town funds and providing for the regulation of
        such investments.

        The General Assembly of the Commonwealth of Pennsylvania
     hereby enacts as follows:

        Section 1.  (a)  The town council of every incorporated town
     shall have the power to:
            (1)  make investment of moneys in the General Fund and in
        special funds of the town other than the sinking funds as
        authorized by subsection (b);
            (2)  make investment of town sinking funds as authorized
        by the act of July 12, 1972 (P.L.781, No.185), known as the
        "Local Government Unit Debt Act"; and
            (3)  liquidate any such investment, in whole or in part,
        by disposing of securities or withdrawing funds on deposit.
     Any action taken to make or to liquidate any investment shall be
     made by the officers designated by action of the town council.
        (b)  Council shall invest town funds consistent with sound
     business practice.
        (c)  Council shall provide for an investment program subject
     to restrictions contained in this act and in any other
     applicable statute and any rules and regulations adopted by
     council.
        (d)  Authorized types of investments for town funds shall be:
            (1)  United States Treasury bills.
            (2)  Short-term obligations of the United States
        Government or its agencies or instrumentalities.
            (3)  Deposits in savings accounts or time deposits, other
        than certificates of deposit, or share accounts of
        institutions insured by the Federal Deposit Insurance
        Corporation or the Federal Savings and Loan Insurance
        Corporation or the National Credit Union Share Insurance Fund
        or the Pennsylvania Deposit Insurance Corporation or the
        Pennsylvania Savings Association Insurance Corporation to the
        extent that such accounts are so insured, and, for any
        amounts above the insured maximum, provided that approved
        collateral as provided by law therefore shall be pledged by
        the depository. ((3) amended Dec. 13, 1982, P.L.1151, No.264)
            (4)  Obligations of the United States of America or any
        of its agencies or instrumentalities backed by the full faith
        and credit of the United States of America, the Commonwealth
        of Pennsylvania or any of its agencies or instrumentalities
        backed by the full faith and credit of the Commonwealth, or
        of any political subdivision of the Commonwealth of
        Pennsylvania or any of its agencies or instrumentalities
        backed by the full faith and credit of the political
        subdivision.
            (5)  Shares of an investment company registered under the
        Investment Company Act of 1940, whose shares are registered
        under the Securities Act of 1933, provided that the only
        investments of that company are in the authorized investments
        for town funds listed in paragraphs (1) through (4).
            (6)  Certificates of deposit purchased from institutions
        insured by the Federal Deposit Insurance Corporation or the
        Federal Savings and Loan Insurance Corporation or the
        National Credit Union Share Insurance Fund or the
        Pennsylvania Deposit Insurance Corporation or the
        Pennsylvania Savings Association Insurance Corporation to the
        extent that such accounts are so insured. However, for any
        amount above the insured maximum, such certificates of
        deposit shall be collateralized by a pledge or assignment of
        assets of the institution, and such collateral may include
        loans (including interest in pools of loans) secured by first
        mortgage liens on real property. Certificates of deposit
        purchased from commercial banks shall be limited to an amount
        equal to 20% of a bank's total capital and surplus.
        Certificates of deposit purchased from savings and loan
        associations or savings banks shall be limited to an amount
        equal to 20% of an institution's assets minus liabilities.
        ((6) added Dec. 13, 1982, P.L.1151, No.264)
            (7)  Any investment authorized by 20 Pa.C.S. Ch. 73
        (relating to fiduciaries investments) shall be an authorized
        investment for any pension or retirement fund. ((7) added
        Dec. 13, 1982, P.L.1151, No.264)
        (e)  In making investments of town funds, council shall have
     authority:
            (1)  To permit assets pledged as collateral under
        subsection (d)(3), to be pooled in accordance with the act of
        August 6, 1971 (P.L.281, No.72), relating to pledges of
        assets to secure deposits of public funds.
            (2)  To combine moneys from more than one fund under town
        control for the purchase of a single investment, provided
        that each of the funds combined for the purpose shall be
        accounted for separately in all respects and that the
        earnings from the investment are separately and individually
        computed and recorded, and credited to the accounts from
        which the investment was purchased.
            (3)  To join with one or more other political
        subdivisions and municipal authorities in accordance with the
        act of July 12, 1972 (P.L.762, No.180), referred to as the
        Intergovernmental Cooperation Law, in the purchase of a
        single investment, provided that the requirements of
        paragraph (2) on separate accounting of individual funds and
        separate computation, recording and crediting of the earnings
        therefrom are adhered to.
        Section 2.  This act shall take effect in 60 days.