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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: | ||
(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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