93RD GENERAL ASSEMBLY
State of Illinois
2003 and 2004
HB4495

 

Introduced 02/03/04, by Joseph M. Lyons

 

SYNOPSIS AS INTRODUCED:
 
30 ILCS 235/6.5 new

    Amends the Public Funds Investment Act. Provides that whenever a public agency invests public funds in an interest-bearing savings account, interest-bearing certificate of deposit, or interest-bearing time deposit, the 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 having its main office in Illinois and (ii) the invested public funds are at all time fully insured by an agency or instrumentality of the federal government. Effective immediately.


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FISCAL NOTE ACT MAY APPLY

 

 

A BILL FOR

 

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1     AN ACT concerning the investment of public funds.
 
2     Be it enacted by the People of the State of Illinois,
3 represented in the General Assembly:
 
4     Section 5. The Public Funds Investment Act is amended by
5 adding Section 6.5 as follows:
 
6     (30 ILCS 235/6.5 new)
7     Sec. 6.5. Federally insured deposits at Illinois financial
8 institutions.
9     (a) Notwithstanding any other provision of this Act or any
10 other statute, whenever a public agency invests public funds in
11 an interest-bearing savings account, interest-bearing
12 certificate of deposit, or interest-bearing time deposit under
13 Section 2 of this Act, the provisions of Section 6 of this Act
14 and any other statutory requirements pertaining to the
15 eligibility of a bank to receive or hold public deposits or to
16 the pledging of collateral by a bank to secure public deposits
17 do not apply to any bank receiving or holding all or part of
18 the invested public funds if (i) the public agency initiates
19 the investment at or through a bank having its main office in
20 Illinois and (ii) the invested public funds are at all time
21 fully insured by an agency or instrumentality of the federal
22 government.
23     (b) Nothing in this Section is intended to:
24         (1) prohibit a public agency from requiring the bank at
25     or through which the investment of public funds is
26     initiated to provide the public agency with the information
27     otherwise required by subsections (a), (b), or (c) of
28     Section 6 of this Act as a condition of investing the
29     public funds at or through that bank; or
30         (2) permit a bank to receive or hold public deposits if
31     that bank is prohibited from doing so by any rule,
32     sanction, or order issued by a regulatory agency or by a

 

 

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1     court.
2     (c) for purposes of this Section, the term "bank" includes
3     any person doing a banking business whether subject to the laws
4     of this or any other jurisdiction.
 
5     Section 99. Effective date. This Act takes effect upon
6 becoming law.