§ 6.70.050. Municipal depositories.  


Latest version.
  • A.

    The treasurer shall deposit all moneys received by him belonging to the municipality in such banks as the mayor and/or chief fiscal officer have established as municipal depositories. Endorsement for deposit may be made by the written or stamped endorsement of the municipality without designation of the person making the endorsement. A report of all municipal moneys and investments shall be submitted to the assembly monthly, such reports indicating all municipal depositories.

    B.

    A bank account in the name of the municipality may be opened and kept with any state or federally chartered commercial or mutual bank, savings and loan association or credit union located in the municipality and having insurance of accounts through the appropriate federal insuring agency of the United States. Any financial institution in the United States meeting such qualifications may be selected as a depository for funds of the municipality.

    C.

    The mayor and the chief fiscal officer shall be authorized to establish bank accounts for checking, depository, trust, escrow or investment purposes.

    D.

    Prior to establishing bank accounts under subsections B and C of this section, the chief fiscal officer shall review the financial condition of a prospective depository as reported by a nationally recognized financial institution rating service. At least semiannually, the treasurer shall review the financial condition of municipal depositories as reported by a nationally recognized financial institution rating service.

    E.

    All banks selected by the mayor or chief fiscal officer under subsection B of this section are hereby authorized to honor any checks drawn in the name of the municipality, when signed by the mayor and countersigned by the municipal treasurer, or, in the absence of the treasurer, the cash

    management and investment officer, or when signed by other individuals designated under section 6.30.095. Facsimile signatures may be used in lieu of manual signatures.

    F.

    All banks selected by the mayor or chief fiscal officer under subsection B of this section are hereby authorized to honor any orders for the payment of money by wire or electronic means when ordered to be drawn from the accounts of the municipality by the treasurer, the cash management and investment officer or the assistant investment officer.

    G.

    All banks selected by the mayor or chief fiscal officer under subsection B of this section are authorized and directed to honor, pay and charge to any or all of the municipality's accounts all checks and orders for the payment of money so drawn without inquiring as to the circumstances of their issue, or the disposition of their proceeds. Banks shall not honor checks or orders:

    1.

    Payable to cash;

    2.

    Endorsed payable to the order of the mayor, municipal treasurer or cash management and investment officer; or

    3.

    Payable to the order of the mayor, municipal treasurer or cash management and investment officer when signed by the payee only.

    H.

    The chief fiscal officer and treasurer are authorized to obtain from the banks current accounting of balances within any depository regarding any accounts of the municipality inclusive of any and all municipal fund activities.

(GAAB 9.30.050; AO No. 94-107, § 6, 6-7-94)