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Validation of transfers of funds to trustee.
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3.—(1) Every transfer to which this section applies of the funds or any part of the funds of a local authority from the duly appointed treasurer of the local authority to any person (hereinafter called the trustee for a local authority) as trustee, agent, or acting-treasurer for the local authority is hereby declared to be and always to have been legal and valid notwithstanding any enactment, order, or rule of law to the contrary.
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(2) All payments of money made by a trustee for a local authority out of the funds and by the direction of that local authority which would have been legal and valid if they had been duly made by that local authority through a duly appointed treasurer are hereby declared to be and always to have been legal and valid payments by that local authority notwithstanding that in the authorising and making of such payments the procedure prescribed by law in respect of payments by a local authority through its treasurer was not adopted.
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(3) A trustee for a local authority shall be liable to account for all moneys received by him from, for, or on behalf of that local authority, and the accounts of such trustee of such moneys and of the disbursements made by him thereout shall form part of the accounts of that local authority and shall be audited in the manner in which the accounts of that local authority are required by law to be audited, and for the purpose of such audit every payment by such trustee shall be deemed to have been made on the authority of the members of the local authority by which such payment was in fact authorised although the authority was not given in the manner or in accordance with the procedure prescribed by law.
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(4) No action or proceeding whether by way of surcharge or otherwise shall lie against any local authority, or any member or officer thereof, or any trustee for a local authority for or on account of any transfer, receipt, or payment declared by this section to be valid.
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(5) This section applies only to transfers of funds made during the period between the 31st day of March, 1920, and 6th day of December, 1922, in pursuance of a resolution of a local authority.
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