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Public Act 093-0756


 

Public Act 0756 93RD GENERAL ASSEMBLY



 


 
Public Act 093-0756
 
HB4495 Enrolled LRB093 18678 BDD 44405 b

    AN ACT concerning the investment of public funds.
 
    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
adding Section 6.5 as follows:
 
    (30 ILCS 235/6.5 new)
    Sec. 6.5. Federally insured deposits at Illinois financial
institutions.
    (a) Notwithstanding any other provision of this Act or any
other statute, whenever a public agency invests public funds in
an interest-bearing savings account, interest-bearing
certificate of deposit, or interest-bearing time deposit under
Section 2 of this Act, the provisions of Section 6 of this Act
and any other statutory requirements pertaining to the
eligibility of a bank to receive or hold public deposits or to
the pledging of collateral by a bank to secure public deposits
do not apply to any bank receiving or holding all or part of
the invested public funds if (i) the public agency initiates
the investment at or through a bank located in Illinois and
(ii) the invested public funds are at all time fully insured by
an agency or instrumentality of the federal government.
    (b) Nothing in this Section is intended to:
        (1) prohibit a public agency from requiring the bank at
    or through which the investment of public funds is
    initiated to provide the public agency with the information
    otherwise required by subsections (a), (b), or (c) of
    Section 6 of this Act as a condition of investing the
    public funds at or through that bank; or
        (2) permit a bank to receive or hold public deposits if
    that bank is prohibited from doing so by any rule,
    sanction, or order issued by a regulatory agency or by a
    court.
    (c) For purposes of this Section, the term "bank" includes
any person doing a banking business whether subject to the laws
of this or any other jurisdiction.
 
    Section 99. Effective date. This Act takes effect upon
becoming law.

Effective Date: 7/16/2004