94TH GENERAL ASSEMBLY
State of Illinois
2005 and 2006
SB0670

 

Introduced 2/18/2005, by Sen. Ira I. Silverstein - Emil Jones, Jr.

 

SYNOPSIS AS INTRODUCED:
 
30 ILCS 230/2c   from Ch. 127, par. 173a

    Amends the State Officers and Employees Money Disposition Act. Makes a technical change in a Section concerning the deposit of State money.


LRB094 04392 RCE 34421 b

 

 

A BILL FOR

 

SB0670 LRB094 04392 RCE 34421 b

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 State Officers and Employees Money
5 Disposition Act is amended by changing Section 2c as follows:
 
6     (30 ILCS 230/2c)  (from Ch. 127, par. 173a)
7     Sec. 2c. Every such officer, board, commission,
8 commissioner, department, institution, arm or agency is
9 authorized to demand and and receive a bond and securities in
10 amount and kind satisfactory to him from any bank or savings
11 and loan association in which moneys held by such officer,
12 board, commission, commissioner, department, institution, arm
13 or agency for or on behalf of the State of Illinois, may be on
14 deposit, such securities to be held by the officer, board,
15 commission, commissioner, department, institution, arm or
16 agency for the period that such moneys are so on deposit and
17 then returned together with interest, dividends and other
18 accruals to the bank or savings and loan association. The bond
19 or undertaking and such securities shall be conditioned for the
20 return of the moneys deposited in conformity with the terms of
21 the deposit.
22     Whenever funds deposited with a bank or savings and loan
23 association exceed the amount of federal deposit insurance
24 coverage, a bond, pledged securities, or other eligible
25 collateral shall be obtained. Only the types of securities or
26 other eligible collateral which the State Treasurer may, in his
27 or her discretion, accept for amounts not insured by the
28 Federal Deposit Insurance Corporation or the Federal Savings
29 and Loan Insurance Corporation under Section 11 of "An Act in
30 relation to State moneys", approved June 28, 1919, as amended,
31 may be accepted as pledged securities. The market value of the
32 bond or pledged securities shall at all times be equal to or

 

 

SB0670 - 2 - LRB094 04392 RCE 34421 b

1 greater than the uninsured portion of the deposit unless the
2 funds deposited are collateralized pursuant to a system
3 established by the State Treasurer to aggregate permissible
4 securities received as collateral from financial institutions
5 in a collateral pool to secure State deposits of the
6 institution that have pledged securities to the pool.
7     All securities deposited by a bank or savings and loan
8 association under the provisions of this Section shall remain
9 the property of the depositary and may be stamped by the
10 depositary so as to indicate that such securities are deposited
11 as collateral. Should the bank or savings and loan association
12 fail or refuse to pay over the moneys, or any part thereof,
13 deposited with it, the officer, board, commission,
14 commissioner, department, institution, arm or agency may sell
15 such securities upon giving 5 days notice to the depositary of
16 his intention to so sell such securities. Such sale shall
17 transfer absolute ownership of the securities so sold to the
18 vendee thereof. The surplus, if any, over the amount due to the
19 State and the expenses of the sale shall be paid to the bank or
20 savings and loan association. Actions may be brought in the
21 name of the People of the State of Illinois to enforce the
22 claims of the State with respect to any securities deposited by
23 a bank or savings and loan association.
24     No bank or savings and loan association shall receive
25 public funds as permitted by this Section, unless it has
26 complied with the requirements established pursuant to Section
27 6 of "An Act relating to certain investments of public funds by
28 public agencies", approved July 23, 1943, as now or hereafter
29 amended.
30 (Source: P.A. 93-561, eff. 1-1-04.)