Bill Text: IL SB1812 | 2013-2014 | 98th General Assembly | Chaptered
Bill Title: Amends the Public Funds Deposit Act. Provides that, in addition to other investments permitted by law, any treasurer or other custodian of public funds may deposit those funds into demand deposit accounts. Excludes those deposits from statutory requirements pertaining to the eligibility of a bank to receive or hold public deposits, and to the pledging of collateral by a bank to secure public deposits, 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 times fully insured by an agency or instrumentality of the federal government. Effective immediately.
Spectrum: Bipartisan Bill
Status: (Passed) 2014-07-07 - Public Act . . . . . . . . . 98-0703 [SB1812 Detail]
Download: Illinois-2013-SB1812-Chaptered.html
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| Public Act 098-0703 | ||||
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AN ACT concerning finance.
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Be it enacted by the People of the State of Illinois,
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represented in the General Assembly:
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Section 5. The Public Funds Deposit Act is amended by | ||||
changing Section 1 as follows:
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(30 ILCS 225/1) (from Ch. 102, par. 34)
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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
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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.
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Any treasurer or other custodian of public funds may accept as
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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).
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Such treasurer or other custodian is
authorized to enter into | ||
an agreement with any such bank, savings bank,
or savings
and
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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.
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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.
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(Source: P.A. 93-561, eff. 1-1-04.)
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Section 10. The Public Funds Investment Act is amended by | ||
changing Section 6.5 as follows:
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(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.
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(Source: P.A. 93-756, eff. 7-16-04.)
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Section 99. Effective date. This Act takes effect upon | ||
becoming law.
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