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Public Act 91-0773
HB3431 Enrolled LRB9112308JSpc
AN ACT to amend the Public Funds Investment Act by
changing Section 6.
Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
Section 5. The Public Funds Investment Act is amended by
changing Section 6 as follows:
(30 ILCS 235/6) (from Ch. 85, par. 906)
Sec. 6. Report of financial institutions.
(a) No bank shall receive any public funds unless it has
furnished the corporate authorities of a public agency
submitting a deposit with copies of the last two sworn
statements of resources and liabilities which the bank is
required to furnish to the Commissioner of Banks and Real
Estate or to the Comptroller of the Currency. Each bank
designated as a depository for public funds shall, while
acting as such depository, furnish the corporate authorities
of a public agency with a copy of all statements of resources
and liabilities which it is required to furnish to the
Commissioner of Banks and Real Estate or to the Comptroller
of the Currency; provided, that if such funds or moneys are
deposited in a bank, the amount of all such deposits not
collateralized or insured by an agency of the federal
government shall not exceed 75% of the capital stock and
surplus of such bank, and the corporate authorities of a
public agency submitting a deposit shall not be discharged
from responsibility for any funds or moneys deposited in any
bank in excess of such limitation.
(b) No savings bank or savings and loan association
shall receive public funds unless it has furnished the
corporate authorities of a public agency submitting a deposit
with copies of the last 2 sworn statements of resources and
liabilities which the savings bank or savings and loan
association is required to furnish to the Commissioner of
Banks and Real Estate or the Federal Deposit Insurance
Corporation. Each savings bank or savings and loan
association designated as a depository for public funds
shall, while acting as such depository, furnish the corporate
authorities of a public agency with a copy of all statements
of resources and liabilities which it is required to furnish
to the Commissioner of Banks and Real Estate or the Federal
Deposit Insurance Corporation; provided, that if such funds
or moneys are deposited in a savings bank or savings and loan
association, the amount of all such deposits not
collateralized or insured by an agency of the federal
government shall not exceed 75% of the net worth of such
savings bank or savings and loan association as defined by
the Federal Deposit Insurance Corporation, and the corporate
authorities of a public agency submitting a deposit shall not
be discharged from responsibility for any funds or moneys
deposited in any savings bank or savings and loan association
in excess of such limitation.
(c) No credit union shall receive public funds unless it
has furnished the corporate authorities of a public agency
submitting a share deposit with copies of the last two
reports of examination prepared by or submitted to the
Illinois Department of Financial Institutions or the National
Credit Union Administration. Each credit union designated as
a depository for public funds shall, while acting as such
depository, furnish the corporate authorities of a public
agency with a copy of all reports of examination prepared by
or furnished to the Illinois Department of Financial
Institutions or the National Credit Union Administration;
provided that if such funds or moneys are invested in a
credit union account, the amount of all such investments not
collateralized or insured by an agency of the federal
government or other approved share insurer shall not exceed
50% of the unimpaired capital and surplus of such credit
union, which shall include shares, reserves and undivided
earnings and the corporate authorities of a public agency
making an investment shall not be discharged from
responsibility for any funds or moneys invested in a credit
union in excess of such limitation.
(d) Whenever a public agency deposits any public funds
in a financial institution, the public agency may enter into
an agreement with the financial institution requiring any
funds not insured by the Federal Deposit Insurance
Corporation or the National Credit Union Administration or
other approved share insurer to be collateralized by
securities, mortgages, letters of credit issued by a Federal
Home Loan Bank, or loans covered by a State Guaranty under
the Illinois Farm Development Act in an amount equal to at
least market value of that amount of funds deposited
exceeding the insurance limitation provided by the Federal
Deposit Insurance Corporation or the National Credit Union
Administration or other approved share insurer.
(e) Paragraphs (a), (b), (c), and (d) of this Section do
not apply to the University of Illinois, Southern Illinois
University, Chicago State University, Eastern Illinois
University, Governors State University, Illinois State
University, Northeastern Illinois University, Northern
Illinois University, Western Illinois University, the
Cooperative Computer Center and public community colleges.
(Source: P.A. 91-324, eff. 1-1-00.)
Section 99. Effective date. This Act takes effect upon
becoming law.
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