Section 395-A. Designation of depository

The  board  of  health of any
  consolidated health district may designate by  resolution  one  or  more
  banks  or  trust  companies in which the moneys paid to the president of
  the board as provided herein shall  be  deposited.  Notwithstanding  the
  provisions  of  section  four  hundred  ten  of  the education law, in a
  consolidated health district in which there is but  one  bank  or  trust
  company,  the  bank  or trust company so designated as depository may be
  one of which members of such board of health are officers, directors  or
  stockholders.  Such designation and deposit of such moneys shall release
  the president of the board from any liability for loss of such moneys by
  reason of the default or insolvency of any such depository. The board of
  health may require  any  bank  or  trust  company  so  designated  as  a
  depository in which such moneys are on deposit or are to be deposited to
  deliver  to  such board a surety bond payable to the consolidated health
  district, executed by a surety company authorized to  transact  business
  in  this  state  and  securing  to  such  district  the  payment of such
  deposits; or in lieu of such a surety bond, such board may  require  any
  such bank or trust company to deposit with such board obligations of the
  United  States  of  America,  of the state of New York or of any county,
  town, city, village or school district of  the  state  of  New  York  as
  security  for  such  moneys  so deposited, but such obligations shall be
  subject to the approval of such board and shall be held for  safekeeping
  at such place and under such conditions as such board may determine.