Sec. 7-494. Municipal moneys to be deposited in separate accounts. Annual audits.
Sec. 7-494. Municipal moneys to be deposited in separate accounts. Annual
audits. (a) All moneys of a municipality derived in furtherance of the purposes of this
chapter, except as otherwise authorized or provided in this chapter, shall be deposited
as soon as practicable in a separate account or accounts in banks or trust companies
organized under the laws of the state or in national banking associations doing business
in the state. The moneys in such accounts shall be paid out on checks signed by such
officer or employee of the municipality as the municipality shall authorize. All deposits
of such moneys shall, if required by the municipality, be secured by obligations of the
United States of America or of the state or of the municipality of a market value equal
at all times to the amount of the deposit and all banks and trust companies are authorized
to give such security for such deposits. Notwithstanding the provisions of this section,
a municipality shall have power to contract with the holders of any of its notes or bonds
as to the custody, collection, securing, investment and payment of any moneys of the
municipality derived in furtherance of the purposes of this chapter and of any moneys
held in a trust or otherwise for the payment of notes or bonds, and to carry out such
contract. Moneys held in trust or otherwise for the payment of notes or bonds or in any
way to secure notes or bonds and deposits of such moneys may be secured in the same
manner as moneys of the municipality, and all banks and trust companies are authorized
to give such security for such deposits.
(b) Subject to the provisions of any contract with noteholders and bondholders, a
municipality issuing notes or bonds pursuant to this chapter shall prescribe a system of
accounts. All such accounts shall be kept separate from other accounts of the municipality and shall be used for the purposes of this chapter and for no other purpose.
(c) All accounts of a municipality established in furtherance of the purposes of this
chapter shall be annually audited by an independent certified public accountant, and a
report of such audit and the books and records of the municipality kept with respect to
any action taken or account established under this chapter, including books and records
pertaining to its receipts, disbursements, contracts, reserve funds, sinking funds and
investments, shall be open to public inspection.
(July Sp. Sess. P.A. 75-2, S. 15, 25.)