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93RD GENERAL ASSEMBLY
State of Illinois
2003 and 2004
HB4495
Introduced 02/03/04, by Joseph M. Lyons SYNOPSIS AS INTRODUCED:
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Amends the Public Funds Investment Act. Provides that whenever a public agency invests public funds in an interest-bearing savings account, interest-bearing certificate of deposit, or interest-bearing time deposit, the 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 having its main office in Illinois and (ii) the invested public funds are at all time fully insured by an agency or instrumentality of the federal government. Effective immediately.
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| FISCAL NOTE ACT MAY APPLY | |
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A BILL FOR
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HB4495 |
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LRB093 18678 BDD 44405 b |
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| AN ACT concerning the investment of public funds.
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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 Investment Act is amended by |
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| adding Section 6.5 as follows:
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| (30 ILCS 235/6.5 new) |
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| Sec. 6.5. Federally insured deposits at Illinois financial |
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| institutions. |
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| (a) Notwithstanding any other provision of this Act or any |
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| other statute, whenever a public agency invests public funds in |
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| an interest-bearing savings account, interest-bearing |
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| certificate of deposit, or interest-bearing time deposit under |
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| Section 2 of this Act, the provisions of Section 6 of this Act |
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| and any other statutory requirements pertaining to the |
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| eligibility of a bank to receive or hold public deposits or to |
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| the pledging of collateral by a bank to secure public deposits |
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| do not apply to any bank receiving or holding all or part of |
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| the invested public funds if (i) the public agency initiates |
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| the investment at or through a bank having its main office in |
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| Illinois and (ii) the invested public funds are at all time |
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| fully insured by an agency or instrumentality of the federal |
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| government. |
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| (b) Nothing in this Section is intended to: |
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| (1) prohibit a public agency from requiring the bank at |
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| or through which the investment of public funds is |
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| initiated to provide the public agency with the information |
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| otherwise required by subsections (a), (b), or (c) of |
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| Section 6 of this Act as a condition of investing the |
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| public funds at or through that bank; or |
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| (2) permit a bank to receive or hold public deposits if |
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| that bank is prohibited from doing so by any rule, |
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| sanction, or order issued by a regulatory agency or by a |