Section 801. Conflicts of interest prohibited

Except as provided in section
  eight  hundred two of this chapter, (1) no municipal officer or employee
  shall have an interest in any contract with the municipality of which he
  is an officer or employee, when such officer or  employee,  individually
  or  as  a  member  of  a  board, has the power or duty to (a) negotiate,
  prepare, authorize or approve  the  contract  or  authorize  or  approve
  payment  thereunder (b) audit bills or claims under the contract, or (c)
  appoint an officer or employee who has any of the powers or  duties  set
  forth above and (2) no chief fiscal officer, treasurer, or his deputy or
  employee,  shall  have an interest in a bank or trust company designated
  as a depository, paying agent, registration agent or for  investment  of
  funds  of  the  municipality  of which he is an officer or employee. The
  provisions of this section shall in no event be  construed  to  preclude
  the  payment  of  lawful  compensation  and  necessary  expenses  of any
  municipal officer or  employee  in  one  or  more  positions  of  public
  employment, the holding of which is not prohibited by law.