102ND GENERAL ASSEMBLY
State of Illinois
2021 and 2022
HB1256

 

Introduced 2/17/2021, by Rep. Emanuel Chris Welch

 

SYNOPSIS AS INTRODUCED:
 
30 ILCS 225/1  from Ch. 102, par. 34

    Amends the Public Funds Deposit Act. Makes a technical change in a Section concerning deposits.


LRB102 03271 RJF 13284 b

 

 

A BILL FOR

 

HB1256LRB102 03271 RJF 13284 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 Public Funds Deposit Act is amended by
5changing Section 1 as follows:
 
6    (30 ILCS 225/1)  (from Ch. 102, par. 34)
7    Sec. 1. Deposits. Any treasurer or other custodian of
8public funds may deposit such funds in a savings and and loan
9association, savings bank, or State or national bank in this
10State, or deposit those funds into demand deposit accounts in
11accordance with Section 6.5 of the Public Funds Investment
12Act. When such deposits become collected funds and are not
13needed for immediate disbursement, they shall be invested
14within 2 working days at prevailing rates or better. The
15treasurer or other custodian of public funds may require such
16bank, savings bank, or savings and loan association to deposit
17with him or her securities guaranteed by agencies and
18instrumentalities of the federal government equal in market
19value to the amount by which the funds deposited exceed the
20federally insured amount. Any treasurer or other custodian of
21public funds may accept as security for public funds deposited
22in such bank, savings bank, or savings and loan association
23any securities or other eligible collateral authorized by

 

 

HB1256- 2 -LRB102 03271 RJF 13284 b

1Sections 11 and 11.1 of the Deposit of State Moneys Act (15
2ILCS 520/11 and 11.1) or Section 6 of the Public Funds
3Investment Act (30 ILCS 235/6). Such treasurer or other
4custodian is authorized to enter into an agreement with any
5such bank, savings bank, or savings and loan association, with
6any federally insured financial institution or trust company,
7or with any agency of the U.S. government relating to the
8deposit of such securities. Any such treasurer or other
9custodian shall be discharged from responsibility for any
10funds for which securities are so deposited with him or her,
11and the funds for which securities are so deposited shall not
12be subject to any otherwise applicable limitation as to
13amount.
14    No bank, savings bank, or savings and loan association
15shall receive public funds as permitted by this Section,
16unless it has complied with the requirements established
17pursuant to Section 6 of the Public Funds Investment Act or is
18otherwise exempt from compliance as authorized by Section 6.5
19of that Act.
20(Source: P.A. 98-703, eff. 7-7-14.)