102ND GENERAL ASSEMBLY
State of Illinois
2021 and 2022
HB1256
 
Introduced 2/17/2021, by Rep. Emanuel Chris Welch
 
SYNOPSIS AS INTRODUCED:
 


30 ILCS 225/1  from Ch. 102, par. 34

    Amends the Public Funds Deposit Act.  Makes a technical change in a Section
concerning deposits.



LRB102 03271 RJF 13284 b

 
 
A BILL FOR
 


HB1256LRB102 03271 RJF 13284 b



1    AN ACT concerning finance.

 
2    Be it enacted by the People of the State of Illinois, 
3represented in the General Assembly: 

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



6    (30 ILCS 225/1)  (from Ch. 102, par. 34)



7    Sec. 1. Deposits. Any treasurer or other custodian of 
8public funds may
deposit
such funds in a savings and
and loan 
9association, savings bank, or State or
national bank
in this 
10State, or deposit those funds into demand deposit accounts in 
11accordance with Section 6.5 of the Public Funds Investment 
12Act.  When such deposits become collected funds and are not 
13needed
for immediate disbursement, they shall be invested 
14within 2 working days
at prevailing rates or better.  The 
15treasurer or other custodian of public
funds may require
such 
16bank, savings bank, or savings and loan association to deposit 
17with
him or her securities
guaranteed by agencies and 
18instrumentalities of the federal government
equal in market 
19value to the
amount by which the funds deposited exceed the 
20federally insured amount.
Any treasurer or other custodian of 
21public funds may accept as
security for public funds deposited 
22in such bank, savings bank, or
savings and loan association 
23any securities or other eligible
collateral authorized by 
 
 
HB1256- 2 -LRB102 03271 RJF 13284 b

1Sections 11 and 11.1 of the Deposit of State
Moneys Act (15 
2ILCS 520/11 and 11.1) or Section 6 of the Public Funds

3Investment Act (30 ILCS 235/6).
Such treasurer or other 
4custodian is
authorized to enter into an agreement with any 
5such bank, savings bank,
or savings
and
loan association, with 
6any federally insured financial institution or trust
company, 
7or with any agency of the U.S. government relating to the

8deposit of such securities.
Any such treasurer or other 
9custodian shall
be discharged from responsibility for any 
10funds for which securities are
so deposited with him or her, 
11and the funds for which securities are so
deposited shall not 
12be subject to any otherwise applicable limitation as
to 
13amount.
14    No bank, savings bank, or savings and loan association 
15shall receive
public funds as
permitted by this Section, 
16unless it has complied with the requirements
established 
17pursuant to Section 6 of the Public Funds Investment Act or is 
18otherwise exempt from compliance as authorized by Section 6.5 
19of that Act.

20(Source: P.A. 98-703, eff. 7-7-14.)