|SB 1093||Allows political subdivisions and other public entities to invest public funds|
|LR Number:||3931L.04T||Fiscal Note:||3931-04|
|Committee:||Financial and Governmental Organization, Veterans' Affairs & Elections|
|Last Action:||06/25/04 - Signed by Governor||Journal page:|
|Title:||HCS SCS SB 1093|
|Effective Date:||August 28, 2004|
HCS/SCS/SB 1093 - This act allows political subdivisions and other public entities to invest funds that are not immediately needed for their intended use. For such investments, certain conditions must be met, which include placing the funds in a banking institution, the banking institution must arrange for the deposit of the funds in certificates of deposit, each certificate of deposit must be insured by the FDIC, the banking institution must act as custodian for the public entity with respect to the certificate of deposit, and the banking institution must receive an equal amount of deposits from customers of other banking institutions to that of the public funds initially placed by the public entity.
This act allows a bank, trust company, a savings and loan
association or savings bank, or credit union may act as a
custodian and place funds in other financial institutions as
long as they are insured by the FDIC.