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Local Government: Municipal Finance Management Act, 2003 (Act No. 56 of 2003)

Chapter 10 : Municipal Entities

Part 2 : Financial governance

85. Bank accounts


(1) A municipal entity must open and maintain at least one bank account in the name of the entity.


(2) All money received by a municipal entity must be paid into its bank account or accounts, and this must be done promptly and in accordance with any requirements that may be prescribed.


(3) A municipal entity may not open a bank account—
(a) abroad;
(b) with an institution not registered as a bank in terms of the Banks Act, 1990 (Act No. 94 of 1990);
(c) otherwise than in the name of the entity; and
(d) without the approval of its board of directors.


(4) Money may be withdrawn from a municipal entity’s bank account only in accordance with requirements that may be prescribed.


(5) The accounting officer of a municipal entity—
(a) Must administer all the entity’s bank accounts;
(b) is accountable to the board of directors of the entity for the entity’s bank accounts; and
(c) must enforce any requirements that may be prescribed in terms of subsection (4).