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91_HB3431
LRB9112308JSpc
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- LRB9112308JSpc
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- LRB9112308JSpc
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, mortgages, letters of credit issued by a Federal
15 Home Loan Bank, or loans covered by a State Guaranty under
16 the Illinois Farm Development Act in an amount equal to at
17 least market value of that amount of funds deposited
18 exceeding the insurance limitation provided by the Federal
19 Deposit Insurance Corporation or the National Credit Union
20 Administration or other approved share insurer.
21 (e) Paragraphs (a), (b), (c), and (d) of this Section do
22 not apply to the University of Illinois, Southern Illinois
23 University, Chicago State University, Eastern Illinois
24 University, Governors State University, Illinois State
25 University, Northeastern Illinois University, Northern
26 Illinois University, Western Illinois University, the
27 Cooperative Computer Center and public community colleges.
28 (Source: P.A. 91-324, eff. 1-1-00.)
29 Section 99. Effective date. This Act takes effect upon
30 becoming law.