§ 115C-444. Selection of depository; deposits to be secured.
§ 115C‑444. Selection of depository; deposits to be secured.
(a) Each board of education shall designate as the officialdepositories of the local school administrative unit one or more banks, savingsand loan associations, or trust companies in this State. It shall be unlawfulfor any money belonging to a local school administrative unit or an individualschool to be deposited in any place, bank, or trust company other than anofficial depository, except as permitted by G.S. 115C‑443(b); however,moneys belonging to an administrative unit or an individual school may bedeposited in official depositories in Negotiable Order of Withdrawal (NOW)accounts.
(b) Money on deposit in an official depository or deposited atinterest pursuant to G.S. 115C‑443(b) shall be secured by depositinsurance, surety bonds, or investment securities of such nature, in asufficient amount to protect the administrative unit or an individual schoolon account of deposit of moneys made therein, and in such manner, as may beprescribed by rule or regulation of the Local Government Commission. Whendeposits are secured in accordance with this subsection, no public officer oremployee may be held liable for any losses sustained by a local schooladministrative unit because of the default or insolvency of the depository. (1975, c. 437, s. 1; 1981, c. 423, s. 1; c. 682, s.23; c. 866, ss. 1, 2; 1985, c. 246, s. 2.)