Sec. 7-403. Deposit of funds in custodian account.
Sec. 7-403. Deposit of funds in custodian account. Any municipality which has
accepted, assumed or received or which holds or manages any trust fund under the
provisions of section 7-148 or 11-20 or other provisions of the general statutes may
place such funds in a custodian account with the trust department of any qualified public
depository which has been designated as a depositary of funds of such municipality
under the provisions of section 7-402 and may prescribe the method of supervision of
the investment and reinvestment of such funds. Such action shall be by vote of (1) the
board of selectmen in a town that does not have a charter, special act or home rule
ordinance relating to its government; (2) the council, board of aldermen, representative
town meeting, board of selectmen or other elected legislative body described in a charter,
special act or home rule ordinance relating to the government in a city, consolidated
town and city, consolidated town and borough or a town having a charter, special act
or home rule ordinance relating to its government; (3) the regional board of education
in a regional school district; (4) the board of burgesses or other elected legislative body
in a borough; or (5) the district, committee or other elected legislative body in a district,
metropolitan district or other municipal corporation. Any gift, devise or bequest to any
official, board, commission or agency of any municipality in trust for the benefit of such
municipality, or any agency thereof, shall, except as otherwise provided by law, be
construed to be a gift, devise or bequest to such town as trustee.
(1955, S. 372d; 1957, P.A. 13, S. 40; P.A. 95-282, S. 4, 11; P.A. 96-244, S. 38, 63.)
History: P.A. 95-403 added provision enumerating authorities responsible for the vote prescribing supervision of investment and reinvestment of funds, effective July 6, 1995, provided "any designation of a depository of public funds of the
state or any municipality or regional school district, and any prescription of the method of supervision of the investment
and reinvestment of trust funds of a municipality, made in accordance with the applicable provisions of sections 4-33, 7-401, 7-402, 7-403, subsection (c) of section 10-52 or subsection (d) of section 10-56 in effect on or before July 6, 1995,
shall remain in effect until rescinded or otherwise modified in accordance with the provisions of public act 95-282"
(Revisors note: The reference to "Sec. 10-52" appears to be a clerical error since Subsec. (c) of Sec. 10-51 was amended
by Sec. 5 of P.A. 95-282); P.A. 96-244 revised effective date section of P.A. 95-282 but without affecting this section;
(Revisor's Note: In 1999, the word "aldermen" was substituted for the word "alderman" in Subdiv. (2) to correct an
inaccurate reference).