Section 1762 - Depositories(a) The county commissioners together with the county treasurer shall, from time to time, designate, by resolution, a depository or depositories for all county funds to be deposited. Such depository or depositories shall be banks, banking institutions or trust companies, located in the Commonwealth.(b)(1) Depositories so designated shall, upon receipt of notice of their selection as a depository of county funds, collateralize deposits of public funds in accordance with the act of August 6, 1971 ( P.L. 281, No.72), entitled "An act standardizing the procedures for pledges of assets to secure deposits of public funds with banking institutions pursuant to other laws; establishing a standard rule for the types, amounts and valuations of assets eligible to be used as collateral for deposits of public funds; permitting assets to be pledged against deposits on a pooled basis; and authorizing the appointment of custodians to act as pledgees of assets," which authorizes financial institutions to pledge collateral in an account in the name of the county, or utilize a letter of credit from the Federal Home Loan Bank, to secure public deposits in excess of Federal Deposit Insurance Corporation insurance limits. The depository shall provide a monthly report within fifteen days after the end of each month to the commissioners in accordance with the reporting requirements in the act of August 6, 1971 ( P.L. 281, No.72), including the composition of the collateral and related market value.(2) Counties may elect to require that any depositories must pledge collateral in an account in the name of the county to collateralize deposits above the Federal Deposit Insurance Corporation limit. These accounts may be custodied with the depository's trust department or at a third-party financial institution. The arrangement with the depository may be governed by a written agreement, approved by the board of directors or loan committee of the depository, with approval reflected in the minutes of the board or committee, which are kept continuously as an official record of the depository and include the following if collateral is pledged instead of a Federal Home Loan Bank Letter of Credit:(i) Collateral shall be marked to market daily.(ii) Collateral shall be in investments as prescribed in the investment program provided by the board of investment or board of commissioners.(iii) If the financial institution serves as the custodian, the pledged collateral shall be held in a separate account, established under the act of August 6, 1971 ( P.L. 281, No.72), in the depository's trust department.(iv) The market value of the pledged collateral shall be at least one hundred and two per centum of the county deposits in excess of federally insured limits.(v) A monthly report shall be provided as specified in paragraph (1).(3) The depository shall not be required to secure payment of deposits and interest insured by the Federal Deposit Insurance Corporation.(c) The county treasurer shall, upon the designation of such depository or depositories, immediately, transfer thereto all county funds to be deposited, and shall, thereafter, keep such deposits solely in such depository or depositories in the name of the county. Withdrawals from such depository shall be only drawn by the treasurer, upon properly authorized checks or by other commercially accepted methods of electronic funds transfer which have been specifically approved by the board of commissioners.(d) Neither county commissioners nor treasurer complying with the provisions of this article, nor their surety or sureties, shall be chargeable with losses of county funds caused by the failure or negligence of such depository or depositories.Amended by P.L. TBD 2018 No. 154, § 41, eff. 12/24/2018.1955, Aug. 9, P.L. 323, § 1762. Amended 1968, Nov. 19, P.L. 1075, No. 328, § 1; 1982, Dec. 13, P.L. 1131, No. 258, § 3, effective in 60 days.