Pennsylvania Act 1929-378 — FIRST CLASS CITIES, DEPOSITORIES REQUIRED TO GIVE A BOND

Act text

FIRST CLASS CITIES, DEPOSITORIES REQUIRED TO GIVE A BOND
                 Act of Apr. 29, 1929, P.L. 865, No. 378              Cl. 11
                                  AN ACT

     Requiring depositories of city funds in cities of the first
        class to give bond.

        Section 1.  Be it enacted, &c., That all depositories of city
     funds in cities of the first class shall, upon the receipt of
     notice of their selection as depositories of city funds, furnish
     a bond to secure payment of deposits and interest to the city,
     with a proper warrant of attorney to confess judgment in favor
     of the city, secured by a surety company or individual sureties
     to be approved by the court of common pleas. Such bonds shall,
     in all cases, be in the amount of the deposit to be made. If a
     corporate bond is given, no one surety company shall be approved
     in an aggregate amount in excess of five times the capital,
     surplus, and reserve. Whenever individual sureties are presented
     for approval, they shall qualify in an aggregate over and above
     their individual liabilities to three times the amount of the
     deposit. No one person may qualify for more than one-fourth of
     the total amount of the bond required: Provided, That in lieu of
     surety bonds of surety companies or of individual sureties, the
     deposit of city moneys may be secured by the deposit with the
     city treasurer of bonds of the United States, or of any county,
     municipality or municipal district of the Commonwealth, equal to
     the deposit so secured and twenty per centum in addition
     thereto. Said bonds shall be accompanied by a proper assignment,
     or power of attorney to transfer the same, and any such deposit
     of securities shall be maintained to the full amount required in
     case of any depreciation in value thereof.