State of Illinois
91st General Assembly
Legislation

   [ Search ]   [ Legislation ]
[ Home ]   [ Back ]   [ Bottom ]


[ Engrossed ][ Enrolled ]

91_HB2047

 
                                               LRB9105499DHmg

 1        AN  ACT  to  amend  the  Public  Funds  Investment Act by
 2    changing Section 6.

 3        Be it enacted by the People of  the  State  of  Illinois,
 4    represented in the General Assembly:

 5        Section 5.  The Public Funds Investment Act is amended by
 6    changing Section 6 as follows:

 7        (30 ILCS 235/6) (from Ch. 85, par. 906)
 8        Sec. 6. Report of financial institutions.
 9        (a)  No bank shall receive any public funds unless it has
10    furnished  the  corporate  authorities  of  a  public  agency
11    submitting  a  deposit  with  copies  of  the  last two sworn
12    statements of resources and liabilities  which  the  bank  is
13    required  to  furnish  to  the Commissioner of Banks and Real
14    Estate or to the Comptroller  of  the  Currency.   Each  bank
15    designated  as  a  depository  for  public funds shall, while
16    acting as such depository, furnish the corporate  authorities
17    of a public agency with a copy of all statements of resources
18    and  liabilities  which  it  is  required  to  furnish to the
19    Commissioner of Banks and Real Estate or to  the  Comptroller
20    of  the  Currency; provided, that if such funds or moneys are
21    deposited in a bank, the amount  of  all  such  deposits  not
22    collateralized  or  insured  by  an  agency  of  the  federal
23    government  shall  not  exceed  75%  of the capital stock and
24    surplus of such bank, and  the  corporate  authorities  of  a
25    public  agency  submitting  a deposit shall not be discharged
26    from responsibility for any funds or moneys deposited in  any
27    bank in excess of such limitation.
28        (b)  No  savings  bank  or  savings  and loan association
29    shall receive  public  funds  unless  it  has  furnished  the
30    corporate authorities of a public agency submitting a deposit
31    with  copies  of the last 2 sworn statements of resources and
 
                            -2-                LRB9105499DHmg
 1    liabilities which  the  savings  bank  or  savings  and  loan
 2    association  is  required  to  furnish to the Commissioner of
 3    Banks and  Real  Estate  or  the  Federal  Deposit  Insurance
 4    Corporation.    Each   savings   bank  or  savings  and  loan
 5    association designated  as  a  depository  for  public  funds
 6    shall, while acting as such depository, furnish the corporate
 7    authorities  of a public agency with a copy of all statements
 8    of resources and liabilities which it is required to  furnish
 9    to  the  Commissioner of Banks and Real Estate or the Federal
10    Deposit Insurance Corporation; provided, that if  such  funds
11    or moneys are deposited in a savings bank or savings and loan
12    association,   the   amount   of   all   such   deposits  not
13    collateralized  or  insured  by  an  agency  of  the  federal
14    government shall not exceed 75% of  the  net  worth  of  such
15    savings  bank  or  savings and loan association as defined by
16    the Federal Deposit Insurance Corporation, and the  corporate
17    authorities of a public agency submitting a deposit shall not
18    be  discharged  from  responsibility  for any funds or moneys
19    deposited in any savings bank or savings and loan association
20    in excess of such limitation.
21        (c)  No credit union shall receive public funds unless it
22    has furnished the corporate authorities of  a  public  agency
23    submitting  a  share  deposit  with  copies  of  the last two
24    reports of  examination  prepared  by  or  submitted  to  the
25    Illinois Department of Financial Institutions or the National
26    Credit Union Administration.  Each credit union designated as
27    a  depository  for  public  funds shall, while acting as such
28    depository, furnish the corporate  authorities  of  a  public
29    agency  with a copy of all reports of examination prepared by
30    or  furnished  to  the  Illinois  Department   of   Financial
31    Institutions  or  the  National  Credit Union Administration;
32    provided that if such funds  or  moneys  are  invested  in  a
33    credit  union account, the amount of all such investments not
34    collateralized  or  insured  by  an  agency  of  the  federal
 
                            -3-                LRB9105499DHmg
 1    government or other approved share insurer shall  not  exceed
 2    50%  of  the  unimpaired  capital  and surplus of such credit
 3    union, which shall include  shares,  reserves  and  undivided
 4    earnings  and  the  corporate  authorities of a public agency
 5    making  an  investment   shall   not   be   discharged   from
 6    responsibility  for  any funds or moneys invested in a credit
 7    union in excess of such limitation.
 8        (d)  Whenever a public agency deposits any  public  funds
 9    in  a financial institution, the public agency may enter into
10    an agreement with the  financial  institution  requiring  any
11    funds   not   insured   by   the  Federal  Deposit  Insurance
12    Corporation or the National Credit  Union  Administration  or
13    other   approved   share  insurer  to  be  collateralized  by
14    securities,  or  mortgages,  or  loans  covered  by  a  State
15    Guaranty under the Illinois Farm Development Act in an amount
16    equal to at least  market  value  of  that  amount  of  funds
17    deposited  exceeding the insurance limitation provided by the
18    Federal Deposit Insurance Corporation or the National  Credit
19    Union Administration or other approved share insurer.
20        (e)  Paragraphs (a), (b), (c), and (d) of this Section do
21    not  apply  to  the University of Illinois, Southern Illinois
22    University,  Chicago  State  University,   Eastern   Illinois
23    University,   Governors   State  University,  Illinois  State
24    University,  Northeastern   Illinois   University,   Northern
25    Illinois   University,   Western   Illinois  University,  the
26    Cooperative Computer Center and public community colleges.
27    (Source: P.A. 89-4, eff. 1-1-96; 89-508, eff. 7-3-96.)

[ Top ]