(30 ILCS 225/1)
(from Ch. 102, par. 34)
Any treasurer or other custodian of public funds may
such funds in a savings and loan association, savings bank, or State or
in this State, or deposit those funds into demand deposit accounts in accordance with Section 6.5 of the Public Funds Investment Act. When such deposits become collected funds and are not needed
for immediate disbursement, they shall be invested within 2 working days
at prevailing rates or better. The treasurer or other custodian of public
funds may require
such bank, savings bank, or savings and loan association to deposit with
him or her securities
guaranteed by agencies and instrumentalities of the federal government
equal in market value to the
amount by which the funds deposited exceed the federally insured amount.
Any treasurer or other custodian of public funds may accept as
security for public funds deposited in such bank, savings bank, or
savings and loan association any securities or other eligible
collateral authorized by Sections 11 and 11.1 of the Deposit of State
Moneys Act (15 ILCS 520/11 and 11.1) or Section 6 of the Public Funds
Investment Act (30 ILCS 235/6).
Such treasurer or other custodian is
authorized to enter into an agreement with any such bank, savings bank,
loan association, with any federally insured financial institution or trust
company, or with any agency of the U.S. government relating to the
deposit of such securities.
Any such treasurer or other custodian shall
be discharged from responsibility for any funds for which securities are
so deposited with him or her, and the funds for which securities are so
deposited shall not be subject to any otherwise applicable limitation as
No bank, savings bank, or savings and loan association shall receive
public funds as
permitted by this Section, unless it has complied with the requirements
established pursuant to Section 6 of the Public Funds Investment Act or is otherwise exempt from compliance as authorized by Section 6.5 of that Act.
(Source: P.A. 98-703, eff. 7-7-14.)