A. Deposit Of Funds: The City Treasurer shall keep all funds and monies in his custody belonging to the City in such places of deposit or investment as may be designated by the City Council.
B. Depositories:
1. When a bank or other financial institution has been designated as a depository, it shall continue as such until fourteen (14) days have elapsed after a new depository is designated and has qualified by meeting the requirements of this subsection.
2. When a new depository is designated, the City Council shall notify the sureties of the Treasurer of that fact in writing at least seven (7) days before the transfer of funds, if there is a transfer of funds. The Treasurer shall be discharged from responsibility for all funds or monies that he deposits in a designated bank or financial institution while the funds and monies are so deposited.
3. a. If Municipal funds or monies are deposited in a designated bank or financial institution, but not in a wholly insured interest-bearing investment account, the amount of such deposits shall not exceed seventy five percent (75%) of the capital stock and surplus of said institution, and the Treasurer shall be responsible for funds or monies deposited therein in excess of this limitation.
b. No such bank or financial institution shall be qualified to receive such Municipal funds or monies until it has furnished the City Council with copies of the last two (2) sworn statements of resources and liabilities which it is required to furnish to the auditor of public accounts or to the comptroller of currency. Each bank or financial institution designated as a depository for such funds or monies shall, while acting as the depository, furnish the City Council with a copy of all statements of resources and liabilities which it is required to furnish to the auditor of public accounts or the comptroller of currency.
c. Investments in the name of the City in interest-bearing savings accounts in banks, building and loan associations, or other financial institutions, which are fully insured by the Federal Deposit Insurance Corporation and which are made at the direction of the City Council, shall not be considered in determining whether deposits in excess of seventy five percent (75%) of the capital stock and surplus of the depository bank or financial institution has been made.
(1980 Code § 4-12)