Under the lock box statute, by which action can the governing body designate a bank to receive current tax payments?

• A. Resolution
• B. Ordinance
• C. Proclamation
• D. Statute

Answer: (A)

The action used to designate a bank under the lock box arrangement is a resolution. A resolution is the formal, official act a governing body uses to authorize specific, routine administrative arrangements—like designating a bank to receive current tax payments and establish the related depository relationship.

An ordinance, by contrast, typically creates or amends local laws or codes and follows a more involved legislative process. A proclamation is generally ceremonial and not used to authorize financial arrangements. A statute is a law enacted by the state or legislature, not by the local governing body through its own procedure. Thus, a resolution best fits the purpose of authorizing the bank designation under the lock box statute.