Section VII. Cash and Securities
(Banking Institution)
Article 235.
To, Do, Fu or Ken shall as provided by cabinet order designate a banking institution as a depositary of its public money.
2.
Cities, towns or villages may as provided by cabinet order designate a banking institution as a depositary of its public money.
(Inspection)
Article 235-2.
Receipts and payments of cash of the ordinary local public body shall be examined by audit commissioners on a fixed date of the month.
2.
Audit commissioners may, if found necessary or if requested by the chief executive, audit the business of the banking institution under the preceding paragraph.
3.
Audit commissioners shall submit the reports on the results of examination under paragraph 1 and of audits under the preceding paragraph to the assembly and the chief executive of the ordinary local public body.
(Floating Debt)
Article 235-3.
The chief executive may contract a floating debt to make payment within the budget of expenditures.
2.
The maximum amount of floating debt shall be fixed in the budget.
3.
Such floating debt shall be redeemed with the revenues of the current fiscal year.
(Custody)
Article 235-4.
All the cash that belongs to the treasury of the ordinary local public body shall be placed in custody in the most secure and profitable manner, as provided by cabinet order.
2.
The ordinary local public body shall not hold in its custody any cash or securities which do not belong to its treasury, except as warranty for its claims, unless authorized by laws or cabinet orders.
3.
Such cash as is placed in the custody of the ordinary local public body under the preceding paragraph (hereinafter referred to as "non-treasury cash") shall not bear interest, unless otherwise provided by law or contract.
