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(a) General rule.--Council shall have power to provide the following:
(1) The investment of city sinking funds as authorized by 53 Pa.C.S. Pt. VII Subpt. B 1 (relating to indebtedness and borrowing).
(2) The investment of money in the general fund and in special funds of the city, other than the sinking funds as authorized by this chapter.
(3) The liquidation of any investment, in whole or in part, by disposing of securities or withdrawing money on deposit. Any action taken to make or to liquidate any investment shall be made by the officers designated by action of council.
(b) Investment.--Council shall invest city money consistent with sound business practices.
(c) Restrictions.--Council shall provide for an investment program subject to restrictions contained in this chapter and in any other applicable statute and any rules and regulations adopted by council.
(d) Authorized investments.--Authorized types of investments of city money shall be any of the following:
(1) United States Treasury bills.
(2) Short-term obligations of the United States Government or its agencies or instrumentalities.
(3) Deposits in savings accounts, time deposits, other than certificates of deposit, or share accounts of institutions insured by the Federal Deposit Insurance Corporation or the National Credit Union Share Insurance Fund to the extent that the accounts are so insured and, for any amounts above the insured maximum, provided that approved collateral as prescribed by law shall be pledged by the depository.
(4) Obligations of:
(i) The United States Government or any of its agencies or instrumentalities backed by the full faith and credit of the United States.
(ii) The Commonwealth or any of its agencies or instrumentalities backed by the full faith and credit of the Commonwealth.
(iii) Any political subdivision of the Commonwealth 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 (54 Stat. 789, 15 U.S.C. § 80a-1 et seq.), whose shares are registered under the Securities Act of 1933 (48 Stat. 74, 15 U.S.C. § 77a et seq.), provided that the only investments of the company are in the authorized investments of city money under paragraphs (1), (2), (3) and (4).
(6) Certificates of deposit purchased from institutions insured by the Federal Deposit Insurance Corporation or the National Credit Union Share Insurance Fund to the extent that the accounts are so insured. However, for any amounts above the insured maximum, the certificates of deposit shall be collateralized by a pledge or assignment of assets of the institution, and the 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.
(7) For any pension or retirement fund, any investment authorized by 20 Pa.C.S. Ch. 73 (relating to municipalities investments).
(8) Repurchase agreements which are fully collateralized by obligations of the United States Government or its agencies or instrumentalities, which are free from other liens and backed by the full faith and credit of the United States or are rated in the highest category by a nationally recognized statistical rating organization.
(9) Deposits in investment pools established by the State Treasurer or established by local governments pursuant to 53 Pa.C.S. Ch. 23 Subch. A (relating to intergovernmental cooperation) and related statutes, provided that the investment pools are rated in the highest category by a nationally recognized statistical rating organization.
(e) Authority.--In making investments of city money, council shall have authority to do any of the following:
(1) 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), 2 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.”
(2) Combine money from more than one fund under city control for the purchase of a single investment, provided that each of the funds 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) Join with one or more other political subdivisions and municipal authorities in accordance with 53 Pa.C.S. Ch. 23 Subch. A in the purchase of a single investment, provided that the requirements of paragraph (2) are adhered to.
Cite this article: FindLaw.com - Pennsylvania Statutes Title 11 Pa.C.S.A. Cities § 11804.1. Investment of city money - last updated January 01, 2019 | https://codes.findlaw.com/pa/title-11-pacsa-cities/pa-csa-sect-11-11804-1.html
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