101ST GENERAL ASSEMBLY
State of Illinois
2019 and 2020
HB1697

 

Introduced , 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.


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A BILL FOR

 

HB1697LRB101 05592 RJF 50608 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 Act.
12When such deposits become collected funds and are not needed
13for immediate disbursement, they shall be invested within 2
14working days at prevailing rates or better. The treasurer or
15other custodian of public funds may require such bank, savings
16bank, or savings and loan association to deposit with him or
17her securities guaranteed by agencies and instrumentalities of
18the federal government equal in market value to the amount by
19which the funds deposited exceed the federally insured amount.
20Any treasurer or other custodian of public funds may accept as
21security for public funds deposited in such bank, savings bank,
22or savings and loan association any securities or other
23eligible collateral authorized by Sections 11 and 11.1 of the

 

 

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1Deposit of State Moneys Act (15 ILCS 520/11 and 11.1) or
2Section 6 of the Public Funds Investment Act (30 ILCS 235/6).
3Such treasurer or other custodian is authorized to enter into
4an agreement with any such bank, savings bank, or savings and
5loan association, with any federally insured financial
6institution or trust company, or with any agency of the U.S.
7government relating to the deposit of such securities. Any such
8treasurer or other custodian shall be discharged from
9responsibility for any funds for which securities are so
10deposited with him or her, and the funds for which securities
11are so deposited shall not be subject to any otherwise
12applicable limitation as to amount.
13    No bank, savings bank, or savings and loan association
14shall receive public funds as permitted by this Section, unless
15it has complied with the requirements established pursuant to
16Section 6 of the Public Funds Investment Act or is otherwise
17exempt from compliance as authorized by Section 6.5 of that
18Act.
19(Source: P.A. 98-703, eff. 7-7-14.)