Section 54. Trust funds, including cemetery perpetual care funds, unless otherwise provided or directed by the donor of the funds, shall be deposited in: a trust company, co-operative bank or savings bank, if the trust company or bank is organized or exists under the laws of the commonwealth or any other state or may transact business in the commonwealth and has its main office or a branch office in the commonwealth; a national bank, federal savings bank or federal savings and loan association, if the bank or association may transact business and has its main office or a branch office in the commonwealth; provided, however, that a state-chartered or federally-chartered bank shall be insured by the Federal Deposit Insurance Corporation or its successor or invested by cities and towns in participation units in a combined investment fund under section 38A of chapter 29 or in bonds or notes which are legal investments for savings banks. Cities and towns having such funds in the custody of the treasurer in an aggregate amount in excess of two hundred and fifty thousand dollars may also invest such funds in securities, other than mortgages or collateral loans, which are legal for the investment of funds of savings banks under the laws of the commonwealth; provided, that not more than fifteen per cent of any such trust funds shall be invested in bank stocks and insurance company stocks, nor shall more than one and one-half per cent of such funds be invested in the stock of any one bank or insurance company. This section shall not apply to the city of Boston.
Structure Massachusetts General Laws
Part I - Administration of the Government
Title VII - Cities, Towns and Districts
Chapter 44 - Municipal Finance
Section 2 - Limitations and Restrictions Upon Manner of Incurring Debt
Section 3 - Computation of Indebtedness
Section 4 - Temporary Loans in Anticipation of Revenue; Conditions; Limitations
Section 6a - Power to Borrow in Anticipation of Reimbursement by Federal Government or Commonwealth
Section 7 - Cities and Towns; Purposes for Borrowing Money Within Debt Limit
Section 8 - Cities and Towns; Purposes for Borrowing Money Outside Debt Limit
Section 8a - Orders Authorizing Issuance of Bonds; Authentication
Section 9 - Districts; Right to Borrow Money; Purposes; Amount
Section 11 - Debt Retirement; Provision for Earlier Payment
Section 14 - Liability for Lawful Debts
Section 15 - Liability for Legal Debts Contracted Under Special Acts
Section 16a - Facsimile Signature
Section 16b - Facsimile Seal; Validity
Section 17 - Temporary Loans; Refund; Repayment
Section 18 - Discount of Notes
Section 20 - Proceeds From Sale of Bonds; Restrictions on Use; Disposition of Premiums
Section 20a - Advances Made in Anticipation of Proceeds
Section 21 - Call and Redemption Prior to Maturity
Section 21a - Refunding Bonds; Issuance; Present Values
Section 21c - Lease Purchase Financing Agreements
Section 22a - Insurance, Letters or Lines of Credit for Bonds or Notes; Trust Agreements
Section 22c - Security for Bonds or Notes; Insurance, Letters or Lines of Credit, Trust Agreements
Section 24 - Authentication; Certification
Section 24a - Bearer Instruments
Section 27 - Certification; Evidence of Liability
Section 27a - Effect of Provisions on Power to Issue Notes
Section 28 - Report to Director of Accounts Required
Section 28a - Applicability of Finance Law to School Districts
Section 28b - Applicability of Finance Law to Planning Districts
Section 28c - Management of Solid Waste; Project Costs; Debt Obligations
Section 30 - Determination of Amount of Appropriation for Departments
Section 31 - Liabilities in Excess of Appropriations Forbidden; Exceptions
Section 31a - Report of Estimated Expenses; Period Covered; Contents
Section 31d - Snow and Ice Removal; Emergency Expenditures; Reporting Requirements
Section 33 - Power of Council to Add to Appropriation; Conditions; Limitations
Section 33a - Salary Provisions in Budget; Requirements and Limitations
Section 33b - Transfer of Appropriations; Restrictions
Section 38 - Uniformity of Accounting Classifications; Standards; Authority of Director
Section 39 - Results of Audit; Report to Municipality
Section 40 - Audit of Accounts; Frequency; Reports
Section 42 - Audits by Private Accountants; Required Reports
Section 43 - Accounting Reports; Returns; Forms
Section 44 - Reports of Municipal Statistics; Publication
Section 45 - Powers of Director; Attendance of Witnesses; Production of Books and Documents
Section 46a - Powers of Director; Investigation of Municipal Affairs
Section 47 - Right to Establish or Use
Section 48 - Sinking Fund Commissioners; Powers and Duties; Records; Compensation
Section 49 - Issuance of New Bonds
Section 52 - Issuance of Bonds in Exchange for Bearer Instruments
Section 53 - City, Town or District Funds; Use and Disposition
Section 53a - Grants and Gifts; Acceptance and Expenditure
Section 53a1/2 - Gifts of Tangible Personal Property; Acceptance
Section 53b - Contributions by Commonwealth; Application to Indebtedness
Section 53e1/2 - Revolving Funds
Section 53e3/4 - Energy Revolving Loan Fund
Section 53f - Deposits of Public Funds in Banking Institutions in Return for Banking Services
Section 53f1/2 - Enterprise Funds
Section 53f3/4 - Peg Access and Cable Related Fund
Section 53g - Employment of Outside Consultants
Section 53h - Rebate to Federal Government to Exclude Interest Paid on Bonds From Gross Income
Section 53i - Settlement or Incorporation Celebrations; Special Fund
Section 54 - Investment of Trust Funds
Section 55 - Public Funds on Deposit; Limitations; Investments
Section 55a - Liability of Depositor for Losses Due to Bankruptcy
Section 55b - Investment of Public Funds
Section 55c - Municipal Affordable Housing Trust Fund
Section 56 - Towns; Fiscal Year
Section 56a - Cities; Fiscal Year
Section 57 - Taxation; Interest on Debts Incurred in Aid of a Railroad
Section 58 - Cities and Towns; Limitation on Purchasing Powers
Section 59 - Enforcement of Chapter
Section 60 - Penalty for Violation of Law Controlling Handling of Town and District Notes
Section 61 - Penalty for Refusal to Issue Bond in Exchange for Bearer Instruments in Sinking Funds
Section 62 - Penalty for Violation of Provisions of Chapter by Officials
Section 63 - Sale or Other Disposal of Realty; Disposition of Proceeds
Section 63a - Sales of Public Land; Payment of Taxes
Section 64 - Payment of Bills Incurred in Excess of Appropriations
Section 65 - Vacation Pay; Advances to Employees
Section 66 - Advances to Public Employees
Section 67a - Employee Individual Retirement Accounts
Section 68 - Retroactive Salary Increases
Section 71 - Contracts for Revenue Raising Activities; Regulations and Guidelines; Negotiation
Section 72 - Federal Funds for Reimbursable Medical Expenses; Distribution