§ 31-20-303 — Deposits - investments - interest - no liability

Colorado § 31-20-303

• Jurisdiction: Colorado
• Title 31: Government
• Art.: Taxation and Finance

Text

(1) (a) As used in
this subsection (1), the term resolution means a written resolution duly adopted by
a majority vote of the governing body, which vote is entered in its minutes.

(b) Subject to the requirements of part 6 of article 75 of title 24, C.R.S., in all
cities and towns in this state, the treasurer shall deposit all the funds and moneys
that come into his possession by virtue of his office, in his name as treasurer or in
the name of such other custodian as has been appointed by resolution, in one or
more state banks, national banks having their principal office in this state, or, in
compliance with the provisions of article 47 of title 11, C.R.S., savings and loan
associations having their principal offices in this state which have been approved
and designated by resolution. The governing body by resolution may authorize the
investment of all or any part of such funds and moneys in any type of security or
form of investment authorized by part 6 of article 75 of title 24, C.R.S., or by any
other law of this state. All securities so purchased shall be duly registered in the
name of the treasurer or other custodian appointed by resolution and, if issued in a
form so permitting, shall be deposited and safely kept by him in the custody of
some state or national bank located in this state. The governing body, by resolution,
shall establish requirements for the sale or other disposal of securities and for the
deposit or reinvestment of any proceeds, subject to the restrictions set forth in this
section. For the purposes of investment of funds of the city or town, the governing
body of the city or town, by resolution, may appoint one or more custodians of the
funds and moneys, and such persons shall give surety bonds in such amount and
form and for such purposes as the governing body may require.

(2) Such funds and moneys may be deposited in said banks and savings and
loan associations in demand accounts, in interest-bearing savings accounts, or in
certificates of deposit for fixed periods of time at such rates of interest as may be
negotiated from time to time. All interest credited or received on such deposits
shall become a part of the general fund of the city or town or of such other fund as
the governing body designates.

(3) No city or town treasurer or member of the governing body who acts in
good faith in approving and designating such depository shall be liable for loss of
public funds deposited by such treasurer or his deputies by reason of default or
insolvency of such depository; nor shall any such treasurer who invests any such
funds as provided in this section or any member of the governing body who in good
faith authorizes such investment be liable for any loss on account of such
investment.

(4) Subject to the requirements of part 7 of article 75 of title 24, C.R.S.,
funds of the city or town may be pooled for investment with the funds of other local
government entities.

Legislative History

Source: L. 75: Entire title R&RE, p. 1130, � 1, effective July 1; (1) and (2) amended and (3) and (4) repealed, pp. 407, 392, �� 5, 5, 6, effective January 1, 1976. L. 77: (1) amended, p. 577, � 9, effective June 10. L. 83: (4) added, p. 1010, � 3, effective March 29; (1) and (2) amended, p. 1260, � 1, effective April 14. L. 89: (1)(b) amended, p. 1114, � 25, effective July 1.