Section 1706 - Investment of funds(a)(1) In counties of the second class A, the county treasurer shall have the power, subject to subsection (b)(1) and any conditions and limitations in this article, to invest and reinvest the moneys of the general fund and special funds as shall have accumulated beyond the ordinary needs of said various funds, and which are not authorized by law to be invested by any board, commission or county officer, consistent with sound business practice, subject, however, to the exercise of that degree of judgment, skill and care under the circumstances then prevailing which persons of prudence, discretion and intelligence, who are familiar with the matters, exercise in the management of their own affairs not in regard to speculation, but in regard to the permanent disposition of the funds, considering the probable income to be derived therefrom as well as the probable safety of their capital.(2) In counties of the third, fourth, fifth, sixth, seventh, or eighth class, the county commissioners (or any individual other than the commissioners who serves in an elective county office, as to such moneys not otherwise required by law to be invested that the individual's office is required to collect, administer or disburse) shall invest such moneys consistent with sound business practice, subject, however, to the exercise of that degree of judgment, skill and care under the circumstances then prevailing which persons of prudence, discretion and intelligence, who are familiar with such matters, exercise in the management of their own affairs not in regard to speculation, but in regard to the permanent disposition of the funds, considering the probable income to be derived therefrom as well as the probable safety of their capital.(b)(1) In counties of the second class A, a board of investment is hereby created. The board shall be composed of the treasurer, who shall chair the board, the chairperson of the county commissioners and the controller. The board shall provide for an investment program, including temporary investments, subject to restrictions contained in this act, and in any other applicable statute and any rules and regulations adopted by the board. County boards, commissions or other county officers authorized to make investments under subsection (a)(1) shall make investments in conformity with the board's investment program.(2) In counties of the third, fourth, fifth, sixth, seventh, or eighth class, the commissioners shall provide for an investment program, including temporary investments, subject to restrictions contained in this act and in any other applicable statute and any rules and regulations adopted by the commissioners. Other elective officials authorized to make investments under subsection (a)(2) shall make investments in conformity with the commissioners investment program.(c) Authorized types of investments or financial products for such moneys , in addition to those authorized under the act of July 25, 1973 ( P.L. 217, No.53), entitled "An act authorizing cities of the first class and second class to invest all funds received and deposited with the city treasurer in certain commercial paper under certain terms and conditions; and providing for investment of public corporation or municipal authority funds," shall be: (1)[Repealed by 2018 Amendment.](2)[Repealed by 2018 Amendment.](3)[Repealed by 2018 Amendment.](4)[Repealed by 2018 Amendment.](5)[Repealed by 2018 Amendment.](6)[Repealed by 2018 Amendment.](7)[Repealed by 2018 Amendment.](8)[Repealed by 2018 Amendment.](9)[Repealed by 2018 Amendment.](10) Obligations of the United States of America or any of its agencies or instrumentalities backed by the full faith and credit of the United States of America including United States Treasury bills, of the Commonwealth of Pennsylvania or any of its agencies or instrumentalities backed by the full faith and credit of the Commonwealth, or of any political subdivision of the Commonwealth of Pennsylvania or any of its agencies or instrumentalities backed by the full faith and credit of the political subdivision.(11) Deposits in savings accounts or time deposits, other than certificates of deposit, or share accounts of institutions insured by the Federal Deposit Insurance Corporation or the National Credit Union Share Insurance Fund to the extent that the accounts are so insured, and, for any amounts above the insured maximum, provided that approved collateral as provided by law therefore shall be pledged by the depository. The deposits are differentiated from savings or demand deposits as authorized by the act of July 25, 1973 ( P.L. 217, No.53).(12) Shares of an investment company registered under the Investment Company Act of 1940 (54 Stat. 789, 15 U.S.C. § 80a-1 et seq.), whose shares are registered under the Securities Act of 1933 (48 Stat. 74, 15 U.S.C. § 77a et seq.), if the only investments of the company are in the authorized investments for county funds in paragraphs (10) and (11) and: (i) The investment company is managed in accordance with 17 CFR 270.2a-7 (relating to money market funds).(ii) The investment company is rated in the highest category by a nationally recognized rating agency.(13) Certificates of deposit purchased from institutions insured by the Federal Deposit Insurance Corporation or the National Credit Union Share Insurance Fund to the extent that the accounts are so insured, and, for any amounts above the insured maximum, provided that approved collateral as provided by law therefore shall be pledged by the depository. In addition to the collateralization requirements, the following limitations shall apply:(i) Certificates of deposit purchased from commercial banks shall be limited to an amount equal to twenty per centum of a bank's total capital and surplus.(ii) Certificates of deposit purchased from savings and loan associations or savings banks shall be limited to an amount equal to twenty per centum of an institution's assets minus liabilities.(14) Any investment authorized by 20 Pa.C.S. Ch. 73 (relating to municipalities investments) shall be an authorized investment for any pension or retirement fund. (d)[Repealed by 2018 Amendment.](d.1) Officials, as authorized in subsection (a)(1) or (2), shall not, at any time, have invested in negotiable certificates of deposit, bankers' acceptances or commercial paper, respectively, as authorized by the act of July 25, 1973 ( P.L. 217, No.53), more than an aggregate of the total sum as the investment policy of the board of investment or the board of commissioners shall have prescribed.(e) Officials making investments of county funds, as authorized in subsection (a)(1) or (2), shall have authority: (1) To permit assets pledged as collateral under subsection (c)(11), to be pooled in accordance with the act of August 6, 1971 ( P.L. 281, No.72), entitled "An act standardizing the procedures for pledges of assets to secure deposits of public funds with banking institutions pursuant to other laws; establishing a standard rule for the types, amounts and valuations of assets eligible to be used as collateral for deposits of public funds; permitting assets to be pledged against deposits on a pooled basis; and authorizing the appointment of custodians to act as pledgees of assets," relating to pledges of assets to secure deposits of public funds.(2) To combine moneys from more than one fund under county control for the purchase of a single investment, provided that each of the funds combined for the purpose shall be accounted for separately in all respects and that the earnings from the investment are separately and individually computed and recorded and credited to the accounts from which the investment was purchased.(3) To join with one or more other political subdivisions and municipal authorities in accordance with 53 Pa.C.S. Ch. 23 Subch. A (relating to intergovernmental cooperation) in the purchase of a single investment, provided that the requirements of clause (2) on separate accounting of individual funds and separate computation, recording and crediting of the earnings therefrom are adhered to.(4) To join with the Commonwealth, political subdivision or redevelopment authority in the purchase of real estate for the purposes of community and economic development.(5) To grant funds to the Commonwealth, political subdivision or redevelopment authority for the purposes of supporting community and economic development projects.(f) All income earned on any of the investments shall inure to the benefit of the county and shall be placed in the general fund except as otherwise directed by the commissioners or restricted by law.Amended by P.L. TBD 2018 No. 154, § 34, eff. 12/24/2018.1955, August 9, P.L. 323, § 1706, added 1978, April 18, P.L. 57, No. 27, § 1, imd. effective. Amended 1982, Dec. 13, P.L. 1131, No. 258, § 2, effective in 60 days; 2004, Nov. 29, P.L. 1275, No. 155, § 1, effective 1/28/2005.