House Sponsors: RUTHERFORD-MEYER-KENNER-FOWLER-REITZ. Senate Sponsors: JONES,W Short description: PUB FUNDS-COLLATERAL Synopsis of Bill as introduced: Amends the Deposit of State Moneys Act, the Public Funds Deposit Act, the State Officers and Employees Money Disposition Act, and the Public Funds Investment Act. Authorizes the State Treasurer and other treasurers and custodians of public funds to accept as collateral for uninsured deposits of public funds the following: (i) collateral acceptable by the Federal Home Loan Bank of Chicago or Des Moines and (ii) collateral otherwise acceptable under the Deposit of State Moneys Act, the Public Funds Deposit Act, and the Public Funds Investment Act. Authorizes the State Treasurer to accept as collateral (i) a guaranty arrangement among participating financial institutions and (ii) certificates issued by a financial institution with assets of $15,000,000, rather than $30,000,000, or more. Authorizes a public agency depositing public funds to accept as collateral a bond from a company transacting certain types of business described in the Illinois Insurance Code. Effective immediately. HOUSE AMENDMENT NO. 1. In the State Officers and Employees Money Disposition Act, restores the limitation upon acceptance of collateral for uninsured deposits except that the market value of bonds or pledged securities need not be equal to or greater than market value if the uninsured deposits are collateralized in accordance with a pool system established by the State Treasurer. SENATE AMENDMENT NO. 1. Deletes everything after the enacting clause. Reinserts the provisions of the engrossed bill with the following changes: deletes provisions allowing the State Treasurer or any treasurer or custodian of public funds to accept, as collateral for deposits of public funds, any collateral acceptable to the Federal Home Loan Bank of Chicago or the Federal Home Loan Bank of Des Moines, Iowa; deletes provisions allowing the State Treasurer or any treasurer or custodian of public funds to accept a guaranty arrangement established among participating financial institutions; provides that a treasurer or custodian of public funds may accept, as security for public funds deposited into a bank, certain securities authorized by certain provisions of the Deposit of State Moneys Act and the Public Funds Investment Act; authorizes a public agency, when depositing public funds, to enter into an agreement with financial institutions requiring that any non-insured funds be collateralized by, among others, any class of securities or other eligible collateral authorized by certain provisions of the Deposit of State Moneys Act and the Public Funds Deposit Act; deletes authorization for a public agency to enter into an agreement with a financial institution requiring non-insured funds to be collateralized by a bond; and makes other changes. Last action on Bill: SESSION SINE DIE Last action date: JAN-07-2003 Location: House Amendments to Bill: AMENDMENTS ADOPTED: HOUSE - 1 SENATE - 1 END OF INQUIRY Full Text Bill Status