| |||||||||||||||||||||||||||
| |||||||||||||||||||||||||||
| |||||||||||||||||||||||||||
| |||||||||||||||||||||||||||
| |||||||||||||||||||||||||||
| 1 | AN ACT concerning finance.
| ||||||||||||||||||||||||||
| 2 | Be it enacted by the People of the State of Illinois,
| ||||||||||||||||||||||||||
| 3 | represented in the General Assembly:
| ||||||||||||||||||||||||||
| 4 | Section 5. The Public Funds Deposit Act is amended by | ||||||||||||||||||||||||||
| 5 | changing Section 1 as follows:
| ||||||||||||||||||||||||||
| 6 | (30 ILCS 225/1) (from Ch. 102, par. 34)
| ||||||||||||||||||||||||||
| 7 | Sec. 1. Deposits. Any treasurer or other custodian of | ||||||||||||||||||||||||||
| 8 | public funds may
deposit
such funds in a savings and loan | ||||||||||||||||||||||||||
| 9 | association, savings bank, or State or
national bank
in this | ||||||||||||||||||||||||||
| 10 | State, or deposit those funds into demand deposit accounts in | ||||||||||||||||||||||||||
| 11 | accordance with Section 6.5 of the Public Funds Investment Act. | ||||||||||||||||||||||||||
| 12 | When such deposits become collected funds and are not needed
| ||||||||||||||||||||||||||
| 13 | for immediate disbursement, they shall be invested within 2 | ||||||||||||||||||||||||||
| 14 | working days
at prevailing rates or better. The treasurer or | ||||||||||||||||||||||||||
| 15 | other custodian of public
funds may require
such bank, savings | ||||||||||||||||||||||||||
| 16 | bank, or savings and loan association to deposit with
him or | ||||||||||||||||||||||||||
| 17 | her securities
guaranteed by agencies and instrumentalities of | ||||||||||||||||||||||||||
| 18 | the federal government
equal in market value to the
amount by | ||||||||||||||||||||||||||
| 19 | which the funds deposited exceed the federally insured amount.
| ||||||||||||||||||||||||||
| 20 | Any treasurer or other custodian of public funds may accept as
| ||||||||||||||||||||||||||
| 21 | security for public funds deposited in such bank, savings bank, | ||||||||||||||||||||||||||
| 22 | or
savings and loan association any securities or other | ||||||||||||||||||||||||||
| 23 | eligible
collateral authorized by Sections 11 and 11.1 of the | ||||||||||||||||||||||||||
| |||||||
| |||||||
| 1 | Deposit of State
Moneys Act (15 ILCS 520/11 and 11.1) or | ||||||
| 2 | Section 6 of the Public Funds
Investment Act (30 ILCS 235/6).
| ||||||
| 3 | Such treasurer or other custodian is
authorized to enter into | ||||||
| 4 | an agreement with any such bank, savings bank,
or savings
and
| ||||||
| 5 | loan association, with any federally insured financial | ||||||
| 6 | institution or trust
company, or with any agency of the U.S. | ||||||
| 7 | government relating to the
deposit of such securities.
Any such | ||||||
| 8 | treasurer or other custodian shall
be discharged from | ||||||
| 9 | responsibility for any funds for which securities are
so | ||||||
| 10 | deposited with him or her, and the funds for which securities | ||||||
| 11 | are so
deposited shall not be subject to any otherwise | ||||||
| 12 | applicable limitation as
to amount.
| ||||||
| 13 | No bank, savings bank, or savings and loan association | ||||||
| 14 | shall receive
public funds as
permitted by this Section, unless | ||||||
| 15 | it has complied with the requirements
established pursuant to | ||||||
| 16 | Section 6 of the Public Funds Investment Act or is otherwise | ||||||
| 17 | exempt from compliance as authorized by Section 6.5 of that | ||||||
| 18 | Act.
| ||||||
| 19 | (Source: P.A. 93-561, eff. 1-1-04.)
| ||||||
| 20 | Section 10. The Public Funds Investment Act is amended by | ||||||
| 21 | changing Section 6.5 as follows: | ||||||
| 22 | (30 ILCS 235/6.5) | ||||||
| 23 | Sec. 6.5. Federally insured deposits at Illinois financial | ||||||
| 24 | institutions. | ||||||
| |||||||
| |||||||
| 1 | (a) Notwithstanding any other provision of this Act or any | ||||||
| 2 | other statute, whenever a public agency invests public funds in | ||||||
| 3 | an interest-bearing savings account, demand deposit account, | ||||||
| 4 | interest-bearing certificate of deposit, or interest-bearing | ||||||
| 5 | time deposit under Section 2 of this Act, the provisions of | ||||||
| 6 | Section 6 of this Act and any other statutory requirements | ||||||
| 7 | pertaining to the eligibility of a bank to receive or hold | ||||||
| 8 | public deposits or to the pledging of collateral by a bank to | ||||||
| 9 | secure public deposits do not apply to any bank receiving or | ||||||
| 10 | holding all or part of the invested public funds if (i) the | ||||||
| 11 | public agency initiates the investment at or through a bank | ||||||
| 12 | located in Illinois and (ii) the invested public funds are at | ||||||
| 13 | all time fully insured by an agency or instrumentality of the | ||||||
| 14 | federal government. | ||||||
| 15 | (b) Nothing in this Section is intended to: | ||||||
| 16 | (1) prohibit a public agency from requiring the bank at | ||||||
| 17 | or through which the investment of public funds is | ||||||
| 18 | initiated to provide the public agency with the information | ||||||
| 19 | otherwise required by subsections (a), (b), or (c) of | ||||||
| 20 | Section 6 of this Act as a condition of investing the | ||||||
| 21 | public funds at or through that bank; or | ||||||
| 22 | (2) permit a bank to receive or hold public deposits if | ||||||
| 23 | that bank is prohibited from doing so by any rule, | ||||||
| 24 | sanction, or order issued by a regulatory agency or by a | ||||||
| 25 | court. | ||||||
| 26 | (c) For purposes of this Section, the term "bank" includes | ||||||
| |||||||
| |||||||
| 1 | any person doing a banking business whether subject to the laws | ||||||
| 2 | of this or any other jurisdiction.
| ||||||
| 3 | (Source: P.A. 93-756, eff. 7-16-04.)
| ||||||
| 4 | Section 99. Effective date. This Act takes effect upon | ||||||
| 5 | becoming law.
| ||||||