102ND GENERAL ASSEMBLY
State of Illinois
2021 and 2022
HB4870
 
Introduced 1/27/2022, by Rep. Jim Durkin
 
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 25629 RJF 34921 b

 
 
A BILL FOR
 


HB4870LRB102 25629 RJF 34921 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 
 
 
HB4870- 2 -LRB102 25629 RJF 34921 b

1Sections 11 and 11.1 of the Deposit of State
Moneys Act or 
2Section 6 of the Public Funds
Investment Act.
Such treasurer 
3or other custodian is
authorized to enter into an agreement 
4with any such bank, savings bank,
or savings
and
loan 
5association, with any federally insured financial institution 
6or trust
company, or with any agency of the U.S. government 
7relating to the
deposit of such securities.
Any such treasurer 
8or other custodian shall
be discharged from responsibility for 
9any funds for which securities are
so deposited with him or 
10her, and the funds for which securities are so
deposited shall 
11not be subject to any otherwise applicable limitation as
to 
12amount.

13    No bank, savings bank, or savings and loan association 
14shall receive
public funds as
permitted by this Section, 
15unless it has complied with the requirements
established 
16pursuant to Section 6 of the Public Funds Investment Act or is 
17otherwise exempt from compliance as authorized by Section 6.5 
18of that Act.

19(Source: P.A. 102-297, eff. 8-6-21.)