92nd General Assembly
Summary of HB3336
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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 



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