Sec. 6.5. Federally insured deposits at Illinois financial institutions.

267 words·~1 min read·/il/chapter-30/act-235/6-5

A research copy — for the controlling text, always check the official state or federal source. Not legal advice.

(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, demand deposit 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 times 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 subsection (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.