Pennsylvania Statutes Title 73 Pa.C.S.A. Townships § 4340. Capital reserve fund

(1) The fund shall be designated for a specific purpose or purposes when established.

(2) The money in the fund shall be used for the construction, purchase or replacement of or addition to municipal buildings, equipment, machinery, motor vehicles or other capital assets of the township as specified at the time the fund was established and for no other purpose unless the commissioners, by a four-fifths vote, declare that the original purpose or purposes have become impracticable, inadvisable or impossible, or that conditions in the township make other capital expenditures more urgent than those for which the fund was established.

(3) The board of commissioners may appropriate money from the general township fund to be paid into the capital reserve fund, or place in the capital reserve fund money received from the sale, lease or other disposition of township property or from another source unless received or acquired for a particular purpose.

(4) The fund shall be controlled, invested, reinvested and administered and the money and any income derived from the fund expended for a purpose for which the fund was established in a manner determined by the board of commissioners.

(5) The money in the fund, when invested, shall be invested in securities designated by 53 Pa.C.S. Pt. VII Subpt. B (relating to indebtedness and borrowing) as legal investments for sinking funds of municipalities.