Section 69-A. Interest to be paid and collected on all deposits of public moneys amounting to one thousand dollars or more

Within twenty days of
  the taking effect of this section, interest  shall  be  required  to  be
  paid,  if  not  already  so  provided  by law, on all deposits of public
  moneys amounting to one thousand dollars or more made by a state,  local
  or other public officer or employee for or on behalf of the state or the
  county,   city,   town,   village,   school  district  or  other  public
  instrumentality or for or on  behalf  of  any  pension  system  or  fund
  maintained  by  law for any of the employees of the state, county, city,
  town, village, school district or other public instrumentality,  as  the
  case may be, to which such moneys belong.  Within twenty days after this
  section  takes  effect  and, in the case of public officers or employees
  hereafter elected or appointed within twenty days  after  entering  upon
  the duties of his office or employment, every public officer or employee
  charged  with  the  care  and  custody of public moneys and/or of moneys
  entrusted to his care and custody by virtue of his office or  employment
  shall  agree with the depositary thereof upon the rate of interest to be
  paid thereon and such rate of interest shall thereupon and thereafter be
  paid by said depositary at such time or times as shall be  agreed  upon.
  All  interest  on such deposits shall be accounted for by the depositing
  officer or employee in the same manner as other moneys received by  such
  officer or employee by virtue of his office or employment.
    Nothing  contained  in this section or in any other general or special
  law shall authorize, enable or require any state, local or other  public
  officer  or employee, to demand or require of any banking corporation or
  private banker, any agreement to pay, or payment of, interest  upon  any
  deposit  of  public  moneys  or any deposit made for or on behalf of the
  state or the county, city,  town,  village,  school  district  or  other
  public  instrumentality, board, agency or authority, or for or on behalf
  of any pension system or fund maintained by law for any of the employees
  of the state, county, city, town,  village,  school  district  or  other
  public  board, agency, instrumentality or authority, as the case may be,
  if payment of interest upon any such deposit is at the  time  prohibited
  by state or federal law or by any regulation of either the banking board
  of  this  state,  or  of  the  board of governors of the federal reserve
  system, or of the board of directors of the  Federal  Deposit  Insurance
  Corporation.