99TH GENERAL ASSEMBLY
State of Illinois
2015 and 2016
HB1678
 
Introduced , by Rep. Jim Durkin
 
SYNOPSIS AS INTRODUCED:
 


30 ILCS 225/1  from Ch. 102, par. 34

    Amends the Public Funds Deposit Act.  Makes a technical change in a Section
concerning deposits.



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A BILL FOR
 


HB1678LRB099 06288 SXM 26357 b



1    AN ACT concerning finance.

 
2    Be it enacted by the People of the State of Illinois, 
3represented in the General Assembly: 

 
4    Section 5. The Public Funds Deposit Act is amended by 
5changing Section 1 as follows:
 



6    (30 ILCS 225/1)  (from Ch. 102, par. 34)



7    Sec. 1. Deposits. Any treasurer or other custodian of 
8public funds may
deposit
such funds in a savings and and loan 
9association, savings bank, or State or
national bank
in this 
10State, or deposit those funds into demand deposit accounts in 
11accordance with Section 6.5 of the Public Funds Investment Act.  
12When such deposits become collected funds and are not needed

13for immediate disbursement, they shall be invested within 2 
14working days
at prevailing rates or better.  The treasurer or 
15other custodian of public
funds may require
such bank, savings 
16bank, or savings and loan association to deposit with
him or 
17her securities
guaranteed by agencies and instrumentalities of 
18the federal government
equal in market value to the
amount by 
19which the funds deposited exceed the federally insured amount.

20Any treasurer or other custodian of public funds may accept as

21security for public funds deposited in such bank, savings bank, 
22or
savings and loan association any securities or other 
23eligible
collateral authorized by Sections 11 and 11.1 of the 
 
 
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1Deposit of State
Moneys Act (15 ILCS 520/11 and 11.1) or 
2Section 6 of the Public Funds
Investment Act (30 ILCS 235/6).

3Such treasurer or other custodian is
authorized to enter into 
4an agreement with any such bank, savings bank,
or savings
and

5loan association, with any federally insured financial 
6institution or trust
company, or with any agency of the U.S. 
7government relating to the
deposit of such securities.
Any such 
8treasurer or other custodian shall
be discharged from 
9responsibility for any funds for which securities are
so 
10deposited with him or her, and the funds for which securities 
11are so
deposited shall not be subject to any otherwise 
12applicable limitation as
to amount.

13    No bank, savings bank, or savings and loan association 
14shall receive
public funds as
permitted by this Section, unless 
15it has complied with the requirements
established pursuant to 
16Section 6 of the Public Funds Investment Act or is otherwise 
17exempt from compliance as authorized by Section 6.5 of that 
18Act.

19(Source: P.A. 98-703, eff. 7-7-14.)