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Public Act 093-0756
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| HB4495 Enrolled |
LRB093 18678 BDD 44405 b |
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AN ACT concerning the investment of public funds.
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Be it enacted by the People of the State of Illinois,
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represented in the General Assembly:
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Section 5. The Public Funds Investment Act is amended by |
adding Section 6.5 as follows:
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(30 ILCS 235/6.5 new) |
Sec. 6.5. Federally insured deposits at Illinois financial |
institutions. |
(a) Notwithstanding any other provision of this Act or any |
other statute, whenever a public agency invests public funds in |
an interest-bearing savings account, interest-bearing |
certificate of deposit, or interest-bearing time deposit under |
Section 2 of this Act, the provisions of Section 6 of this Act |
and any other statutory requirements pertaining to the |
eligibility of a bank to receive or hold public deposits or to |
the pledging of collateral by a bank to secure public deposits |
do not apply to any bank receiving or holding all or part of |
the invested public funds if (i) the public agency initiates |
the investment at or through a bank located in Illinois and |
(ii) the invested public funds are at all time fully insured by |
an agency or instrumentality of the federal government. |
(b) Nothing in this Section is intended to: |
(1) prohibit a public agency from requiring the bank at |
or through which the investment of public funds is |
initiated to provide the public agency with the information |
otherwise required by subsections (a), (b), or (c) of |
Section 6 of this Act as a condition of investing the |
public funds at or through that bank; or |
(2) permit a bank to receive or hold public deposits if |
that bank is prohibited from doing so by any rule, |
sanction, or order issued by a regulatory agency or by a |
court. |