Illinois Compiled Statutes
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30 ILCS 230/2c
(30 ILCS 230/2c)
(from Ch. 127, par. 173a)
Every such officer, board, commission, commissioner, department,
institution, arm or agency is authorized to demand and receive a bond and
securities in amount and kind satisfactory to him from any bank or savings
and loan association in which moneys held by such officer, board, commission,
commissioner, department, institution, arm or agency for or on behalf of
the State of Illinois, may be on deposit, such securities to be held by the
officer, board, commission, commissioner, department, institution, arm or
agency for the period that such moneys are so on deposit and then returned
together with interest, dividends and other accruals to the bank or savings
and loan association. The
bond or undertaking and such securities shall be conditioned for the return
of the moneys deposited in conformity with the terms of the deposit.
Whenever funds deposited with a bank or savings and loan association
exceed the amount of federal deposit insurance coverage, a bond,
securities, or other eligible collateral shall be obtained.
Only the types of securities or other eligible collateral which the State
Treasurer may, in his
or her discretion, accept for amounts not insured by the Federal Deposit
Corporation or the Federal Savings and Loan Insurance Corporation under
Section 11 of "An Act in relation to State moneys", approved June 28, 1919,
as amended, may be accepted as pledged securities.
The market value of the bond or pledged
securities shall at all times be equal to or greater than the uninsured
portion of the deposit
unless the funds deposited are collateralized pursuant to a system
established by the State Treasurer to aggregate permissible securities
received as collateral from financial institutions in a collateral pool
to secure State deposits of the institution that have pledged
securities to the pool.
All securities deposited by a bank or savings and loan association
under the provisions of this
Section shall remain the property of the depositary and may be stamped by
the depositary so as to indicate that such securities are deposited as
collateral. Should the bank or savings and loan association
fail or refuse to pay over the moneys, or
any part thereof, deposited with it, the officer, board, commission,
commissioner, department, institution, arm or agency may sell such
securities upon giving 5 days notice to the depositary of his intention to
so sell such securities. Such sale shall transfer absolute ownership of the
securities so sold to the vendee thereof. The surplus, if any, over the
amount due to the State and the expenses of the sale shall be paid to the
bank or savings and loan association. Actions may be brought in the
name of the People of the State
of Illinois to enforce the claims of the State with respect to any
securities deposited by a bank or savings and loan association.
No bank or savings and loan association shall receive public funds as
permitted by this Section, unless it has complied with the requirements
established pursuant to Section 6 of "An Act relating to certain investments of
funds by public agencies", approved July 23, 1943, as
now or hereafter amended.
(Source: P.A. 93-561, eff. 1-1-04.)