Bill Text: IL HB1256 | 2021-2022 | 102nd General Assembly | Introduced
Bill Title: Amends the Public Funds Deposit Act. Makes a technical change in a Section concerning deposits.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced - Dead) 2021-04-23 - Rule 19(a) / Re-referred to Rules Committee [HB1256 Detail]
Download: Illinois-2021-HB1256-Introduced.html
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1 | AN ACT concerning finance.
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2 | Be it enacted by the People of the State of Illinois, | |||||||||||||||||||
3 | represented in the General Assembly:
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4 | Section 5. The Public Funds Deposit Act is amended by | |||||||||||||||||||
5 | changing Section 1 as follows:
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6 | (30 ILCS 225/1) (from Ch. 102, par. 34)
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7 | Sec. 1. Deposits. Any treasurer or other custodian of | |||||||||||||||||||
8 | public funds may
deposit
such funds in a savings and
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 | |||||||||||||||||||
12 | Act. When such deposits become collected funds and are not | |||||||||||||||||||
13 | needed
for immediate disbursement, they shall be invested | |||||||||||||||||||
14 | within 2 working days
at prevailing rates or better. The | |||||||||||||||||||
15 | treasurer or other custodian of public
funds may require
such | |||||||||||||||||||
16 | bank, savings bank, or savings and loan association to deposit | |||||||||||||||||||
17 | with
him or her securities
guaranteed by agencies and | |||||||||||||||||||
18 | instrumentalities of the federal government
equal in market | |||||||||||||||||||
19 | value to the
amount by which the funds deposited exceed the | |||||||||||||||||||
20 | federally insured amount.
Any treasurer or other custodian of | |||||||||||||||||||
21 | public funds may accept as
security for public funds deposited | |||||||||||||||||||
22 | in such bank, savings bank, or
savings and loan association | |||||||||||||||||||
23 | any securities or other eligible
collateral authorized by |
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1 | Sections 11 and 11.1 of the Deposit of State
Moneys Act (15 | ||||||
2 | ILCS 520/11 and 11.1) or Section 6 of the Public Funds
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3 | Investment Act (30 ILCS 235/6).
Such treasurer or other | ||||||
4 | custodian is
authorized to enter into an agreement with any | ||||||
5 | such bank, savings bank,
or savings
and
loan association, with | ||||||
6 | any federally insured financial institution or trust
company, | ||||||
7 | or with any agency of the U.S. government relating to the
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8 | deposit of such securities.
Any such treasurer or other | ||||||
9 | custodian shall
be discharged from responsibility for any | ||||||
10 | funds for which securities are
so deposited with him or her, | ||||||
11 | and the funds for which securities are so
deposited shall not | ||||||
12 | be subject to any otherwise applicable limitation as
to | ||||||
13 | amount. | ||||||
14 | No bank, savings bank, or savings and loan association | ||||||
15 | shall receive
public funds as
permitted by this Section, | ||||||
16 | unless it has complied with the requirements
established | ||||||
17 | pursuant to Section 6 of the Public Funds Investment Act or is | ||||||
18 | otherwise exempt from compliance as authorized by Section 6.5 | ||||||
19 | of that Act.
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20 | (Source: P.A. 98-703, eff. 7-7-14.)
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