Illinois Compiled Statutes
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65 ILCS 5/3.1-35-50
(65 ILCS 5/3.1-35-50)
(from Ch. 24, par. 3.1-35-50)
Treasurer; deposit of funds.
(a) The municipal treasurer may be required to keep all funds and
money in the treasurer's custody belonging to the municipality in places of
deposit designated by ordinance. When requested by the
municipal treasurer, the corporate authorities shall designate one or
more banks or savings and loan associations in which may be kept the funds
and money of the municipality in the custody of the treasurer. When a
bank or savings and loan association has been designated as a depository,
it shall continue as a depository until 10 days have elapsed after a new
is designated and has qualified by furnishing the statements of resources
and liabilities as required by this Section. When a new depository is
designated, the corporate authorities shall notify the sureties of the
municipal treasurer of that fact in writing at least 5 days before the
transfer of funds. The treasurer shall be discharged from responsibility
for all funds or money that the treasurer deposits in a designated bank or
savings and loan association while the funds and money are so deposited.
(b) The municipal treasurer may require any bank or savings and loan
association to deposit with the treasurer securities or mortgages that
have a market value at least equal to the amount of the funds or moneys of the
municipality deposited with the bank or savings and loan association that
exceeds the insurance limitation provided by the Federal Deposit Insurance
Corporation or the Federal Savings and Loan Insurance Corporation.
(c) The municipal treasurer may enter into agreements of any
definite or indefinite term regarding the deposit, redeposit, investment,
reinvestment, or withdrawal of municipal funds.
(d) Notwithstanding any other provision of this Act or any other law, each
official custodian of municipal funds, including, without limitation, each
municipal treasurer or finance director or each person properly designated as
the official custodian for municipal funds, including, without limitation, each
person properly designated as official custodian for funds held by an
intergovernmental risk management entity, self-insurance pool, waste
management agency, or other intergovernmental entity composed solely of
participating municipalities, is permitted to:
(i) combine moneys from more than one fund of a
single municipality, risk management entity, self-insurance pool, or other intergovernmental entity composed solely of participating municipalities for the purpose of investing such moneys;
(ii) join with any other official custodians or
treasurers of municipal, intergovernmental risk management entity, self-insurance pool, waste management agency, or other intergovernmental entity composed solely of participating municipalities for the purpose of jointly investing the funds of which the official custodians or treasurers have custody; and
(iii) enter into agreements of any definite or
indefinite term regarding the redeposit, investment, or withdrawal of municipal, risk management entity, self-insurance agency, waste management agency, or other intergovernmental entity funds.
When funds are combined for investment
purposes as authorized in this Section, the moneys combined for those purposes
shall be accounted for separately in all respects, and the earnings from such
investment shall be separately and individually computed, recorded, and
credited to the fund, municipality, intergovernmental risk management
entity, self-insurance pool, waste
management agency, or other intergovernmental entity, as the case may be, for
which the investment was acquired.
Joint investments shall be made only in investments authorized by law for
investment of municipal funds.
The grant of authority contained in this subsection is cumulative,
supplemental, and in addition to all other power or authority granted by any
other law and shall not be construed as a limitation of any power and authority
(e) No bank or savings and loan association shall receive public funds as
permitted by this Section unless it has complied with the requirements
established by Section 6 of the Public Funds Investment Act.
(f) In addition to any other investments or deposits authorized under this Code, municipalities are authorized to invest the funds and public moneys in the custody of the municipal treasurer in accordance with the Public Funds Investment Act.
(Source: P.A. 98-297, eff. 1-1-14.)