Bill Text: IL HB0659 | 2015-2016 | 99th General Assembly | Introduced
Bill Title: Amends the State Officers and Employees Money Disposition Act. Makes a technical change in a Section concerning the deposit of State money.
Spectrum: Partisan Bill (Democrat 4-0)
Status: (Introduced - Dead) 2016-03-28 - Added Co-Sponsor Rep. Mary E. Flowers [HB0659 Detail]
Download: Illinois-2015-HB0659-Introduced.html
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| 1 | AN ACT concerning finance.
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| 2 | Be it enacted by the People of the State of Illinois, | |||||||||||||||||||
| 3 | represented in the General Assembly:
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| 4 | Section 5. The State Officers and Employees Money | |||||||||||||||||||
| 5 | Disposition Act is amended by changing Section 2c as follows:
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| 6 | (30 ILCS 230/2c) (from Ch. 127, par. 173a)
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| 7 | Sec. 2c.
Every such officer, board, commission, | |||||||||||||||||||
| 8 | commissioner, department,
institution, arm or agency is | |||||||||||||||||||
| 9 | authorized to demand and
and receive a bond and
securities in | |||||||||||||||||||
| 10 | amount and kind satisfactory to him from any bank or savings
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| 11 | and loan association in which moneys held by such officer, | |||||||||||||||||||
| 12 | board, commission,
commissioner, department, institution, arm | |||||||||||||||||||
| 13 | or agency for or on behalf of
the State of Illinois, may be on | |||||||||||||||||||
| 14 | deposit, such securities to be held by the
officer, board, | |||||||||||||||||||
| 15 | commission, commissioner, department, institution, arm or
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| 16 | agency for the period that such moneys are so on deposit and | |||||||||||||||||||
| 17 | then returned
together with interest, dividends and other | |||||||||||||||||||
| 18 | accruals to the bank or savings
and loan association. The
bond | |||||||||||||||||||
| 19 | or undertaking and such securities shall be conditioned for the | |||||||||||||||||||
| 20 | return
of the moneys deposited in conformity with the terms of | |||||||||||||||||||
| 21 | the deposit. | |||||||||||||||||||
| 22 | Whenever funds deposited with a bank or savings and loan | |||||||||||||||||||
| 23 | association
exceed the amount of federal deposit insurance | |||||||||||||||||||
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| 1 | coverage, a bond,
pledged
securities, or other eligible | ||||||
| 2 | collateral shall be obtained.
Only the types of securities or | ||||||
| 3 | other eligible collateral which the State
Treasurer may, in his
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| 4 | or her discretion, accept for amounts not insured by the | ||||||
| 5 | Federal Deposit
Insurance
Corporation or the Federal Savings | ||||||
| 6 | and Loan Insurance Corporation under
Section 11 of "An Act in | ||||||
| 7 | relation to State moneys", approved June 28, 1919,
as amended, | ||||||
| 8 | may be accepted as pledged securities.
The market value of the | ||||||
| 9 | bond or pledged
securities shall at all times be equal to or | ||||||
| 10 | greater than the uninsured
portion of the deposit
unless the | ||||||
| 11 | funds deposited are collateralized pursuant to a system
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| 12 | established by the State Treasurer to aggregate permissible | ||||||
| 13 | securities
received as collateral from financial institutions | ||||||
| 14 | in a collateral pool
to secure State deposits of the | ||||||
| 15 | institution that have pledged
securities to the pool.
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| 16 | All securities deposited by a bank or savings and loan | ||||||
| 17 | association
under the provisions of this
Section shall remain | ||||||
| 18 | the property of the depositary and may be stamped by
the | ||||||
| 19 | depositary so as to indicate that such securities are deposited | ||||||
| 20 | as
collateral. Should the bank or savings and loan association
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| 21 | fail or refuse to pay over the moneys, or
any part thereof, | ||||||
| 22 | deposited with it, the officer, board, commission,
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| 23 | commissioner, department, institution, arm or agency may sell | ||||||
| 24 | such
securities upon giving 5 days notice to the depositary of | ||||||
| 25 | his intention to
so sell such securities. Such sale shall | ||||||
| 26 | transfer absolute ownership of the
securities so sold to the | ||||||
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| 1 | vendee thereof. The surplus, if any, over the
amount due to the | ||||||
| 2 | State and the expenses of the sale shall be paid to the
bank or | ||||||
| 3 | savings and loan association. Actions may be brought in the
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| 4 | name of the People of the State
of Illinois to enforce the | ||||||
| 5 | claims of the State with respect to any
securities deposited by | ||||||
| 6 | a bank or savings and loan association.
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| 7 | No bank or savings and loan association shall receive | ||||||
| 8 | public funds as
permitted by this Section, unless it has | ||||||
| 9 | complied with the requirements
established pursuant to Section | ||||||
| 10 | 6 of "An Act relating to certain investments of
public
funds by | ||||||
| 11 | public agencies", approved July 23, 1943, as
now or hereafter | ||||||
| 12 | amended.
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| 13 | (Source: P.A. 93-561, eff. 1-1-04.)
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