Full Text of SB1812 98th General Assembly
SB1812enr 98TH GENERAL ASSEMBLY |
| | SB1812 Enrolled | | LRB098 06937 HLH 40706 b |
|
| 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 Public Funds Deposit Act is amended by | 5 | | changing Section 1 as follows:
| 6 | | (30 ILCS 225/1) (from Ch. 102, par. 34)
| 7 | | Sec. 1. Deposits. Any treasurer or other custodian of | 8 | | public funds may
deposit
such funds in a savings and loan | 9 | | association, savings bank, or State or
national bank
in this | 10 | | State , or deposit those funds into demand deposit accounts in | 11 | | accordance with Section 6.5 of the Public Funds Investment Act . | 12 | | When such deposits become collected funds and are not needed
| 13 | | for immediate disbursement, they shall be invested within 2 | 14 | | working days
at prevailing rates or better. The treasurer or | 15 | | other custodian of public
funds may require
such bank, savings | 16 | | bank, or savings and loan association to deposit with
him or | 17 | | her securities
guaranteed by agencies and instrumentalities of | 18 | | the federal government
equal in market value to the
amount by | 19 | | which the funds deposited exceed the federally insured amount.
| 20 | | Any treasurer or other custodian of public funds may accept as
| 21 | | security for public funds deposited in such bank, savings bank, | 22 | | or
savings and loan association any securities or other | 23 | | eligible
collateral authorized by Sections 11 and 11.1 of the |
| | | SB1812 Enrolled | - 2 - | LRB098 06937 HLH 40706 b |
|
| 1 | | Deposit of State
Moneys Act (15 ILCS 520/11 and 11.1) or | 2 | | Section 6 of the Public Funds
Investment Act (30 ILCS 235/6).
| 3 | | Such treasurer or other custodian is
authorized to enter into | 4 | | an agreement with any such bank, savings bank,
or savings
and
| 5 | | loan association, with any federally insured financial | 6 | | institution or trust
company, or with any agency of the U.S. | 7 | | government relating to the
deposit of such securities.
Any such | 8 | | treasurer or other custodian shall
be discharged from | 9 | | responsibility for any funds for which securities are
so | 10 | | deposited with him or her, and the funds for which securities | 11 | | are so
deposited shall not be subject to any otherwise | 12 | | applicable limitation as
to amount.
| 13 | | No bank, savings bank, or savings and loan association | 14 | | shall receive
public funds as
permitted by this Section, unless | 15 | | it has complied with the requirements
established pursuant to | 16 | | Section 6 of the Public Funds Investment Act or is otherwise | 17 | | exempt from compliance as authorized by Section 6.5 of that | 18 | | Act .
| 19 | | (Source: P.A. 93-561, eff. 1-1-04.)
| 20 | | Section 10. The Public Funds Investment Act is amended by | 21 | | changing Section 6.5 as follows: | 22 | | (30 ILCS 235/6.5) | 23 | | Sec. 6.5. Federally insured deposits at Illinois financial | 24 | | institutions. |
| | | SB1812 Enrolled | - 3 - | LRB098 06937 HLH 40706 b |
|
| 1 | | (a) Notwithstanding any other provision of this Act or any | 2 | | other statute, whenever a public agency invests public funds in | 3 | | an interest-bearing savings account, demand deposit account, | 4 | | interest-bearing certificate of deposit, or interest-bearing | 5 | | time deposit under Section 2 of this Act, the provisions of | 6 | | Section 6 of this Act and any other statutory requirements | 7 | | pertaining to the eligibility of a bank to receive or hold | 8 | | public deposits or to the pledging of collateral by a bank to | 9 | | secure public deposits do not apply to any bank receiving or | 10 | | holding all or part of the invested public funds if (i) the | 11 | | public agency initiates the investment at or through a bank | 12 | | located in Illinois and (ii) the invested public funds are at | 13 | | all time fully insured by an agency or instrumentality of the | 14 | | federal government. | 15 | | (b) Nothing in this Section is intended to: | 16 | | (1) prohibit a public agency from requiring the bank at | 17 | | or through which the investment of public funds is | 18 | | initiated to provide the public agency with the information | 19 | | otherwise required by subsections (a), (b), or (c) of | 20 | | Section 6 of this Act as a condition of investing the | 21 | | public funds at or through that bank; or | 22 | | (2) permit a bank to receive or hold public deposits if | 23 | | that bank is prohibited from doing so by any rule, | 24 | | sanction, or order issued by a regulatory agency or by a | 25 | | court. | 26 | | (c) For purposes of this Section, the term "bank" includes |
| | | SB1812 Enrolled | - 4 - | LRB098 06937 HLH 40706 b |
|
| 1 | | any person doing a banking business whether subject to the laws | 2 | | of this or any other jurisdiction.
| 3 | | (Source: P.A. 93-756, eff. 7-16-04.)
| 4 | | Section 99. Effective date. This Act takes effect upon | 5 | | becoming law.
|
|