53 Pa. Stat. § 22605
The treasurer shall keep the accounts, arising from the several sources of revenue and income, separate and distinct from one another, and shall make daily deposits of all moneys received by him in such banks or institutions as may be designated by councils, and shall make specific reports daily to the controller, of all receipts and deposits, and of all moneys withdrawn from the treasury, and shall present and verify his cash account in such manner and as often as may be required. All depositories of city funds or other funds for which such city, or any officer or employe thereof, shall act as custodian or trustee, wherein the legal or equitable title in such funds, shall belong to persons, copartnerships, corporations or the Federal or State government, or any agency or subdivision thereof, other than such city, shall, upon the receipt of notice of their selection as depositories of city or other 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 or other moneys may be secured by the deposit with the city treasurer of bonds or other interest bearing obligations of the United States, or of any county, municipality or municipal district of the Commonwealth, in an amount equal to the deposit so secured and twenty per centum in addition thereto: And provided also, That the city treasurer may direct that the said bonds or other interest-bearing obligations be deposited in a Federal Reserve Bank, or a branch thereof located in the city, or with any bank or bank and trust company organized under the laws of this Commonwealth, or any national banking association located in this Commonwealth, which shall be approved by the city treasurer to secure the deposit of city or other moneys. Said bonds or other interest-bearing obligations 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. When said bonds and other interest-bearing obligations are deposited with the Federal Reserve Bank, or a branch thereof, the bank shall perform such functions as may be prescribed by agreement between the city and the bank.
53 P.S. § 22605