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HB4495 Engrossed |
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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 located in Illinois and |
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| (ii) the invested public funds are at all time fully insured by |
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| an agency or instrumentality of the federal 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 |
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| court. |