(a) The governing body shall designate the banks, savings and loan associations and savings banks which shall serve as depositories of its funds. The Clerk, Treasurer or other city officer or employee having the custody of city funds shall deposit such funds only at the designated banks, savings and loan associations and savings banks. Only banks, savings and loan associations and savings banks that have main or branch offices in the county shall be designated as official depositories. No such bank, savings bank or savings and loan association shall be designated as a depository until the city is assured that it can obtain satisfactory security for its deposits.
(b) The Clerk, Treasurer or other city officer or employee depositing public funds shall deposit all such public funds coming into such person’s possession in his, her or their name and official title as such officer. If the governing body fails to designate an official depository or depositories, the officer thereof having custody of city funds shall deposit such funds with one or more banks, savings and loan associations or savings banks which have main or branch offices in the county if satisfactory security can be obtained therefor and if not then elsewhere. In such event, the officer or employee shall serve notice in writing on the governing body showing the names and locations of such banks, savings and loan associations and savings banks where such funds are deposited, and upon so doing, the officer or employee having custody of such funds shall not be liable for the loss of any portion thereof except for official misconduct or for the misappropriation of such funds by the officer or employee.
(c) If eligible banks, savings and loan associations or savings banks under divisions (a) or (b) above cannot or will not provide an acceptable bid, which shall include services for the depositing of public funds under this section, then banks, savings and loan associations or savings banks that have main or branch offices in any immediately adjoining county may receive deposits of the city’s active funds, if such banks, savings and loan associations or savings banks have been designated as official depositories under division (a) above and the city can obtain satisfactory security therefor.