(a) The board of supervisors shall designate by resolution a depository or depositories for township funds. Any funds deposited with any banking institution of this Commonwealth shall be insured with the Federal Deposit Insurance Corporation or the National Credit Union Share Insurance Fund or their successor agencies, to the extent that accounts are so insured. The board of supervisors shall require each banking institution to furnish additional bond, insurance or security to cover the amount of any deposits in excess of the insured limits. The designation is valid for a period of one year or until another depository or other depositories are designated by similar action of the board of supervisors.

(b) The depository or depositories shall be banks, banking institutions or trust companies located in this Commonwealth.

(c) The township treasurer or assistant treasurer shall, upon the designation of the depository or depositories by the board of supervisors, immediately transfer thereto the township funds and after that make deposits solely in the depository or depositories in the name of the township.

(d) No township treasurer or assistant treasurer complying with the provisions of this section, nor his surety or sureties, shall be chargeable with losses of township funds caused solely by the failure or negligence of the depository or depositories.