§ 159-31. Selection of depository; deposits to be secured. - North Carolina Statutes

§ 159‑31. Selection of depository; deposits to be secured.

(a)        The governing board of each local government and publicauthority shall designate as its official depositories one or more banks,savings and loan associations, or trust companies in this State or, with thewritten permission of the secretary, a national bank located in another state.In addition, a unit or public authority, with the written permission of thesecretary, may designate a state bank or trust company located in another stateas an official depository for the purpose of acting as fiscal agent for theunit or public authority. The names and addresses of the depositories shall bereported to the secretary. It shall be unlawful for any public moneys to bedeposited in any place, bank, or trust company other than an officialdepository, except as permitted by G.S. 159‑30(b); however, public moneysmay be deposited in official depositories in Negotiable Order of Withdrawal(NOW) accounts.

(b)        The amount of funds on deposit in an official depository ordeposited at interest pursuant to G.S. 159‑30(b) shall be secured bydeposit insurance, surety bonds, letters of credit issued by a Federal HomeLoan Bank, or investment securities of such nature, in a sufficient amount toprotect the local government or public authority on account of deposit of fundsmade therein, and in such manner, as may be prescribed by rule or regulation ofthe Local Government Commission. When deposits are secured in accordance withthis subsection, no public officer or employee may be held liable for anylosses sustained by a local government or public authority because of thedefault or insolvency of the depository. No security is required for theprotection of funds remitted to and received by a bank, savings and loan association,or trust company acting as fiscal agent for the payment of principal andinterest on bonds or notes, when the funds are remitted no more than 60 daysprior to the maturity date. (1927, c. 146, s. 19; 1929, c. 37; 1931, c. 60, s. 32; c. 296, s. 7;1935, c. 375, s. 1; 1939, c. 129, s. 1; c. 134; 1953, c. 675, s. 28; 1955, cc.698, 724; 1971, c. 780, s. 1; 1973, c. 474, s. 26; 1979, c. 637, s. 1; 1981, c.447, s. 2; 1983, c. 158, s. 3; 1999‑74, s. 1.)