Full Text of HB4221 97th General Assembly
HB4221 97TH GENERAL ASSEMBLY |
| | 97TH GENERAL ASSEMBLY
State of Illinois
2011 and 2012 HB4221 Introduced 1/30/2012, by Rep. Michael J. Madigan SYNOPSIS AS INTRODUCED: | | 30 ILCS 230/2c | from Ch. 127, par. 173a |
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Amends the State Officers and Employees Money Disposition Act. Makes
a technical change in a Section concerning the deposit of State money.
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| | A BILL FOR |
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| 1 | | AN ACT concerning finance.
| 2 | | Be it enacted by the People of the State of Illinois, | 3 | | represented in the General Assembly:
| 4 | | Section 5. The State Officers and Employees Money | 5 | | Disposition Act is amended by changing Section 2c as follows:
| 6 | | (30 ILCS 230/2c) (from Ch. 127, par. 173a)
| 7 | | Sec. 2c.
Every such officer, board, commission, | 8 | | commissioner, department,
institution, arm or agency is | 9 | | authorized to demand and
and receive a bond and
securities in | 10 | | amount and kind satisfactory to him from any bank or savings
| 11 | | and loan association in which moneys held by such officer, | 12 | | board, commission,
commissioner, department, institution, arm | 13 | | or agency for or on behalf of
the State of Illinois, may be on | 14 | | deposit, such securities to be held by the
officer, board, | 15 | | commission, commissioner, department, institution, arm or
| 16 | | agency for the period that such moneys are so on deposit and | 17 | | then returned
together with interest, dividends and other | 18 | | accruals to the bank or savings
and loan association. The
bond | 19 | | or undertaking and such securities shall be conditioned for the | 20 | | return
of the moneys deposited in conformity with the terms of | 21 | | the deposit. | 22 | | Whenever funds deposited with a bank or savings and loan | 23 | | association
exceed the amount of federal deposit insurance |
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| 1 | | coverage, a bond,
pledged
securities, or other eligible | 2 | | collateral shall be obtained.
Only the types of securities or | 3 | | other eligible collateral which the State
Treasurer may, in his
| 4 | | or her discretion, accept for amounts not insured by the | 5 | | Federal Deposit
Insurance
Corporation or the Federal Savings | 6 | | and Loan Insurance Corporation under
Section 11 of "An Act in | 7 | | relation to State moneys", approved June 28, 1919,
as amended, | 8 | | may be accepted as pledged securities.
The market value of the | 9 | | bond or pledged
securities shall at all times be equal to or | 10 | | greater than the uninsured
portion of the deposit
unless the | 11 | | funds deposited are collateralized pursuant to a system
| 12 | | established by the State Treasurer to aggregate permissible | 13 | | securities
received as collateral from financial institutions | 14 | | in a collateral pool
to secure State deposits of the | 15 | | institution that have pledged
securities to the pool.
| 16 | | All securities deposited by a bank or savings and loan | 17 | | association
under the provisions of this
Section shall remain | 18 | | the property of the depositary and may be stamped by
the | 19 | | depositary so as to indicate that such securities are deposited | 20 | | as
collateral. Should the bank or savings and loan association
| 21 | | fail or refuse to pay over the moneys, or
any part thereof, | 22 | | deposited with it, the officer, board, commission,
| 23 | | commissioner, department, institution, arm or agency may sell | 24 | | such
securities upon giving 5 days notice to the depositary of | 25 | | his intention to
so sell such securities. Such sale shall | 26 | | transfer absolute ownership of the
securities so sold to the |
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| 1 | | vendee thereof. The surplus, if any, over the
amount due to the | 2 | | State and the expenses of the sale shall be paid to the
bank or | 3 | | savings and loan association. Actions may be brought in the
| 4 | | name of the People of the State
of Illinois to enforce the | 5 | | claims of the State with respect to any
securities deposited by | 6 | | a bank or savings and loan association.
| 7 | | No bank or savings and loan association shall receive | 8 | | public funds as
permitted by this Section, unless it has | 9 | | complied with the requirements
established pursuant to Section | 10 | | 6 of "An Act relating to certain investments of
public
funds by | 11 | | public agencies", approved July 23, 1943, as
now or hereafter | 12 | | amended.
| 13 | | (Source: P.A. 93-561, eff. 1-1-04.)
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