(A) Designation by board. The Treasurer is hereby required to keep all funds and moneys in his or her custody belonging to the village in such places of deposit as have been designated by § 1-2-83. When requested by the Treasurer, the corporate authorities shall designate a bank or banks in which may be kept the funds and moneys of the village in the custody of the Treasurer.
(B) Qualifications of bank. Each bank designated as a depository for such funds or moneys shall, while acting as such depository, furnish the corporate authorities with a copy of all statements or resources and liabilities which it is required to furnish to the auditor of public accounts or to the comptroller of currency.
(C) Discharge of liability. The Treasurer shall be discharged from liability for all funds or moneys which he or she deposits in a designated bank while the funds and moneys are so deposited. If the village funds or moneys are deposited in a designated bank, however, the amount of such deposits shall not exceed 75% of the bank’s capital stock and surplus and the Treasurer shall be responsible for funds or moneys deposited in the bank in excess of this limitation.
(Ill. Rev. Stat., Ch. 24, § 3-10-3) (Prior Code, § 1.2.81)