Illinois General Assembly - Full Text of Public Act 098-0703

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Public Act 098-0703

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Public Act 0703 98TH GENERAL ASSEMBLY

Public Act 098-0703

SB1812 Enrolled LRB098 06937 HLH 40706 b

    AN ACT concerning finance.

    Be it enacted by the People of the State of Illinois,
represented in the General Assembly:

    Section 5. The Public Funds Deposit Act is amended by
changing Section 1 as follows:

    (30 ILCS 225/1)  (from Ch. 102, par. 34)
    Sec. 1. Deposits. Any treasurer or other custodian of
public funds may deposit such funds in a savings and loan
association, savings bank, or State or national bank in this
State, or deposit those funds into demand deposit accounts in
accordance with Section 6.5 of the Public Funds Investment Act.
When such deposits become collected funds and are not needed
for immediate disbursement, they shall be invested within 2
working days at prevailing rates or better. The treasurer or
other custodian of public funds may require such bank, savings
bank, or savings and loan association to deposit with him or
her securities guaranteed by agencies and instrumentalities of
the federal government equal in market value to the amount by
which the funds deposited exceed the federally insured amount.
Any treasurer or other custodian of public funds may accept as
security for public funds deposited in such bank, savings bank,
or savings and loan association any securities or other
eligible collateral authorized by Sections 11 and 11.1 of the
Deposit of State Moneys Act (15 ILCS 520/11 and 11.1) or
Section 6 of the Public Funds Investment Act (30 ILCS 235/6).
Such treasurer or other custodian is authorized to enter into
an agreement with any such bank, savings bank, or savings and
loan association, with any federally insured financial
institution or trust company, or with any agency of the U.S.
government relating to the deposit of such securities. Any such
treasurer or other custodian shall be discharged from
responsibility for any funds for which securities are so
deposited with him or her, and the funds for which securities
are so deposited shall not be subject to any otherwise
applicable limitation as to amount.
    No bank, savings 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 the Public Funds Investment Act or is otherwise
exempt from compliance as authorized by Section 6.5 of that
Act.
(Source: P.A. 93-561, eff. 1-1-04.)

    Section 10. The Public Funds Investment Act is amended by
changing Section 6.5 as follows:

    (30 ILCS 235/6.5)
    Sec. 6.5. Federally insured deposits at Illinois financial
institutions.
    (a) Notwithstanding any other provision of this Act or any
other statute, whenever a public agency invests public funds in
an interest-bearing savings account, demand deposit account,
interest-bearing certificate of deposit, or interest-bearing
time deposit under Section 2 of this Act, the provisions of
Section 6 of this Act and any other statutory requirements
pertaining to the eligibility of a bank to receive or hold
public deposits or to the pledging of collateral by a bank to
secure public deposits do not apply to any bank receiving or
holding all or part of the invested public funds if (i) the
public agency initiates the investment at or through a bank
located in Illinois and (ii) the invested public funds are at
all time fully insured by an agency or instrumentality of the
federal government.
    (b) Nothing in this Section is intended to:
        (1) prohibit a public agency from requiring the bank at
    or through which the investment of public funds is
    initiated to provide the public agency with the information
    otherwise required by subsections (a), (b), or (c) of
    Section 6 of this Act as a condition of investing the
    public funds at or through that bank; or
        (2) permit a bank to receive or hold public deposits if
    that bank is prohibited from doing so by any rule,
    sanction, or order issued by a regulatory agency or by a
    court.
    (c) For purposes of this Section, the term "bank" includes
any person doing a banking business whether subject to the laws
of this or any other jurisdiction.
(Source: P.A. 93-756, eff. 7-16-04.)

    Section 99. Effective date. This Act takes effect upon
becoming law.

Effective Date: 7/7/2014

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