Pennsylvania § 4340 - Capital reserve fund.
Full text of Pennsylvania Pennsylvania Consolidated Statutes § 4340 — Capital reserve fund., with citation guidance and answers to common questions.
§ 4340. Capital reserve fund.
The board of commissioners may establish and maintain a separate capital reserve fund for anticipated legal capital expenditures subject to the following:
(1) The fund shall be designated for a specific purpose or purposes when established.
(2) The money in the fund shall be used for the construction, purchase or replacement of or addition to municipal buildings, equipment, machinery, motor vehicles or other capital assets of the township as specified at the time the fund was established and for no other purpose unless the commissioners, by a four-fifths vote, declare that the original purpose or purposes have become impracticable, inadvisable or impossible, or that conditions in the township make other capital expenditures more urgent than those for which the fund was established.
(3) The board of commissioners may appropriate money from the general township fund to be paid into the capital reserve fund, or place in the capital reserve fund money received from the sale, lease or other disposition of township property or from another source unless received or acquired for a particular purpose.
(4) The fund shall be controlled, invested, reinvested and administered and the money and any income derived from the fund expended for a purpose for which the fund was established in a manner determined by the board of commissioners.
(5) The money in the fund, when invested, shall be invested in securities designated by 53 Pa.C.S. Pt. VII Subpt. B (relating to indebtedness and borrowing) as legal investments for sinking funds of municipalities.
Frequently Asked Questions About Pennsylvania § 4340
What does Pennsylvania Consolidated Statutes § 4340 cover?
Section 4340 ("Capital reserve fund.") is part of the Pennsylvania Consolidated Statutes, the codified statutory law of Pennsylvania. It sets out the legal rule or procedure described in the text above. Statutes are amended regularly, so always verify against the official source.
How do I cite Pennsylvania § 4340?
A common citation format is "Pennsylvania Consolidated Statutes § 4340" (Pennsylvania). Legal writing may require the code abbreviation, section number, and year or edition. Match the style required by your court, professor, or publisher.
Is this the official text of Pennsylvania law?
No. This page is for research and education and may not include the most recent amendments. For official current law, check the Pennsylvania official source linked on this page or consult a licensed Pennsylvania attorney.
How does Pennsylvania § 4340 apply to my situation?
Statutes are interpreted in context, and application depends on your specific facts. Only a licensed attorney in Pennsylvania can advise on how this section applies to you. Contact your state or local bar association for a referral.
Sources & Verification
Not legal advice. Verify against the official source and consult a licensed attorney in Pennsylvania.