9-1401.   Designation of depositories for municipaland quasi-municipalfunds; duty of public officers; eligible depositories.(a) The governing body of any municipal corporation or quasi-municipalcorporation shall designate by official action recorded upon its minutesthe banks, savings andloan associations and savings banks which shall serve as depositoriesof itsfunds and the officer and official having the custody of such funds shallnot deposit such funds other than at such designated banks, savings and loanassociations andsavings banks. The banks,savings and loan associations and savings bankswhichhave main or branch offices in the county or counties in which all or partof suchmunicipal corporation or quasi-municipal corporation is located shall bedesignated as such official depositories if the municipal orquasi-municipal corporation can obtain satisfactory security therefor.

      (b)   Every officer or person depositing public funds shall deposit allsuch public funds coming into such officer or person's possession in theirname and official title as such officer. If the governingbody of the municipal corporation or quasi-municipal corporationfails to designate an official depository or depositories, the officer thereofhaving custody of its funds shall deposit such funds with one or more banks,savings and loanassociations or savings banks which have main orbranch offices in thecounty or counties in which all or part of such municipal corporation orquasi-municipal corporation is located if satisfactory security can beobtained therefor and if not then elsewhere, but upon sodoing shall serve notice inwritingon the governing body showing the namesand locations of such banks, savings and loanassociations and savings banks where such funds aredeposited, and upon so doing the officer having custody of such funds shallnot be liable for the loss of any portion thereof except for officialmisconduct or for the misappropriation of such funds by such officer.

      (c)   If eligible banks, savings and loan associations orsavings banks under subsections (a) or (b) cannot or will not provide anacceptable bid, which shall include services, for the depositing of publicfunds under this section, then banks, savings and loan associations or savingsbanks which have main or branch officesin an adjoining county to the county in which all or part of such municipal orquasi-municipal corporation is located may receive deposits of suchmunicipalcorporation or quasi-municipal corporation, if such banks, savings and loanassociations or savings banks have been designated as official depositoriesunder subsection (a) and the municipal corporation orquasi-municipal corporation can obtain satisfactory security therefor.

      History:   L. 1947, ch. 102, § 63; L. 1957, ch. 74, § 2; L. 1967,ch. 447, § 30; L. 1972, ch. 35, § 1; L. 1982, ch. 52, § 1; L. 1983,ch. 47, § 2; L. 1986, ch. 76, § 1; L. 1989, ch. 48, § 41;L. 1997, ch. 180, § 3;L. 2006, ch. 57, § 1; July 1.