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91_HB3431eng HB3431 Engrossed 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 HB3431 Engrossed -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 HB3431 Engrossed -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.