In January a question was posted regarding a City's liability to pay interest on deposits. Government Code Section 53079 was cited as reference. This Code Section states that interest needs to be paid on the portion of the deposit that is returned, if the deposit has been maintained in an interest bearing account. However, Government Code Section 53647, also regarding interest, states that, "Interest on all money deposited belongs to, and shall be paid quarterly into the general fund of, the local agency represented by the officer making the deposit, unless otherwise directed by law." Regarding the treatment of interest on deposits by your agency, please respond to the following questions by the end of the day, Monday, 7/31. Does your agency remit accrued interest on refunded deposits per Government Code Section 53079? Does your agency not pay interest on refunded deposits? What is the basis for your policy for not paying interest on refunded deposits? Does your agency escheat inactive deposits to the State per Code of Civil Procedure Section 1519? I will e-mail the results of this survey to the membership. Thanks for your participation. Lika Garg City of Simi Valley Phone: 805-583-6747 E-mail: [EMAIL PROTECTED]
