97TH GENERAL ASSEMBLY
State of Illinois
2011 and 2012
HB0481

 

Introduced 01/31/11, by Rep. Michael J. Madigan

 

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.


LRB097 03308 PJG 43345 b

 

 

A BILL FOR

 

HB0481LRB097 03308 PJG 43345 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 State Officers and Employees Money
5Disposition 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,
8commissioner, department, institution, arm or agency is
9authorized to demand and and receive a bond and securities in
10amount and kind satisfactory to him from any bank or savings
11and loan association in which moneys held by such officer,
12board, commission, commissioner, department, institution, arm
13or agency for or on behalf of the State of Illinois, may be on
14deposit, such securities to be held by the officer, board,
15commission, commissioner, department, institution, arm or
16agency for the period that such moneys are so on deposit and
17then returned together with interest, dividends and other
18accruals to the bank or savings and loan association. The bond
19or undertaking and such securities shall be conditioned for the
20return of the moneys deposited in conformity with the terms of
21the deposit.
22    Whenever funds deposited with a bank or savings and loan
23association exceed the amount of federal deposit insurance

 

 

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1coverage, a bond, pledged securities, or other eligible
2collateral shall be obtained. Only the types of securities or
3other eligible collateral which the State Treasurer may, in his
4or her discretion, accept for amounts not insured by the
5Federal Deposit Insurance Corporation or the Federal Savings
6and Loan Insurance Corporation under Section 11 of "An Act in
7relation to State moneys", approved June 28, 1919, as amended,
8may be accepted as pledged securities. The market value of the
9bond or pledged securities shall at all times be equal to or
10greater than the uninsured portion of the deposit unless the
11funds deposited are collateralized pursuant to a system
12established by the State Treasurer to aggregate permissible
13securities received as collateral from financial institutions
14in a collateral pool to secure State deposits of the
15institution that have pledged securities to the pool.
16    All securities deposited by a bank or savings and loan
17association under the provisions of this Section shall remain
18the property of the depositary and may be stamped by the
19depositary so as to indicate that such securities are deposited
20as collateral. Should the bank or savings and loan association
21fail or refuse to pay over the moneys, or any part thereof,
22deposited with it, the officer, board, commission,
23commissioner, department, institution, arm or agency may sell
24such securities upon giving 5 days notice to the depositary of
25his intention to so sell such securities. Such sale shall
26transfer absolute ownership of the securities so sold to the

 

 

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1vendee thereof. The surplus, if any, over the amount due to the
2State and the expenses of the sale shall be paid to the bank or
3savings and loan association. Actions may be brought in the
4name of the People of the State of Illinois to enforce the
5claims of the State with respect to any securities deposited by
6a bank or savings and loan association.
7    No bank or savings and loan association shall receive
8public funds as permitted by this Section, unless it has
9complied with the requirements established pursuant to Section
106 of "An Act relating to certain investments of public funds by
11public agencies", approved July 23, 1943, as now or hereafter
12amended.
13(Source: P.A. 93-561, eff. 1-1-04.)