§ 2523. Moneys; custody and disbursement. 1. The treasurer of each city school district shall demand, collect, receive and have the care and custody of moneys belonging to or due the district from every source. On the business day next following the day of their receipt the treasurer shall deposit in his name, as treasurer of the city school district, all such moneys in or with such banks or trust companies as shall have been designated as depositaries of the moneys of such district. Where the board of education with the written consent of the city authorities, has appointed a city officer as city school district treasurer, such treasurer may not commingle school district funds with city funds.

2. Such moneys shall be disbursed only on the signature of such treasurer by checks payable to the person or persons entitled thereto. The board of education may in its discretion require that such checks-other than checks for salary, be countersigned by another officer of such district. When authorized by resolution of the board of education such checks may be signed with the facsimile signature of the treasurer and other district officer whose signature is required, as reproduced by a machine or device commonly known as a check-signer. Each check drawn by the treasurer shall state the fund against which it is drawn. No fund shall be overdrawn nor shall any check be drawn upon one fund to pay a claim chargeable to another. No money shall be paid out by the treasurer except upon the warrant of the clerk of the board of education after audit and allowance by such board, or if a claims auditor shall have been appointed, except upon the warrant of such claims auditor after audit and allowance thereof; provided, however, when provision for payment has been made in the annual budget the treasurer may pay, without such warrant or prior audit and allowance, (a) the principal of and interest on bonds, notes or other evidences of indebtedness of the district or for the payment of which the district shall be liable, and (b) compensation for services of officers or employees engaged at agreed wages by the hour, day, week, month or year upon presentation of a duly certified payroll. By resolution duly adopted, the board may determine to enter into a contract to provide for the deposit of the periodic payroll of the school district in a bank or trust company for disbursal by it in accordance with provisions of section ninety-six-b of the banking law.