H*3882(Rat #0348, Act #0327 of 1990)  General Bill, By R.N. McLellan
 A Bill to amend Section 11-13-60, Code of Laws of South Carolina, 1976,
 relating to the use of an indemnity bond or collateral to ensure state
 deposits, so as to require that when the State Treasurer deposits state funds
 in excess of the insurance coverage with a bank or savings and loan
 association, it shall furnish an indemnity bond in an amount sufficient to
 protect the State against loss in the event of insolvency or liquidation, or
 pledge other types of collateral; and to repeal Section 11-13-50 relating to
 the requirement that an indemnity bond is required of a bank or trust company
 which is made a state depository.

   04/13/89  House  Introduced and read first time HJ-11
   04/13/89  House  Referred to Committee on Ways and Means HJ-11
   01/10/90  House  Committee report: Favorable with amendment Ways
                     and Means HJ-19
   01/24/90  House  Amended HJ-44
   01/24/90  House  Read second time HJ-45
   01/25/90  House  Read third time and sent to Senate HJ-7
   01/25/90  Senate Introduced, read first time, placed on calendar
                     without reference SJ-13
   02/01/90  Senate Amended SJ-26
   02/01/90  Senate Read second time SJ-28
   02/06/90  Senate Read third time and returned to House with
                     amendments SJ-23
   02/08/90  House  Concurred in Senate amendment and enrolled HJ-22
   02/15/90         Ratified R 348
   02/21/90         Signed By Governor
   02/21/90         Effective date 02/21/90
   02/21/90         Act No. 327
   02/27/90         Copies available

AN ACT TO AMEND SECTION 11-13-60, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO THE USE OF AN INDEMNITY BOND OR COLLATERAL TO ENSURE STATE DEPOSITS, SO AS TO REQUIRE THAT WHEN THE STATE TREASURER DEPOSITS STATE FUNDS IN EXCESS OF THE INSURANCE COVERAGE WITH A BANK OR SAVINGS AND LOAN ASSOCIATION, IT SHALL FURNISH AN INDEMNITY BOND IN AN AMOUNT SUFFICIENT TO PROTECT THE STATE AGAINST LOSS IN THE EVENT OF INSOLVENCY OR LIQUIDATION, OR PLEDGE OTHER TYPES OF COLLATERAL; AND TO REPEAL SECTION 11-13-50 RELATING TO THE REQUIREMENT THAT AN INDEMNITY BOND IS REQUIRED OF A BANK OR TRUST COMPANY WHICH IS MADE A STATE DEPOSITORY.

Be it enacted by the General Assembly of the State of South Carolina:

Deposit of state funds

SECTION 1. Section 11-13-60 of the 1976 Code is amended to read:

"Section 11-13-60. A bank or savings and loan association, upon the deposit of state funds by the State Treasurer in excess of insurance coverage by the Federal Deposit Insurance Corporation, shall furnish an indemnity bond in a responsible surety company authorized to do business in this State in an amount that will protect the State against loss in the event of insolvency or liquidation of the institution or for any other cause. A bank or savings and loan association, in lieu of the indemnity bond, may pledge as collateral for the deposits, obligations of the United States, obligations fully guaranteed both as to principal and interest by the United States, obligations of the Federal National Mortgage Association, the Federal Home Loan Bank, Federal Farm Credit Bank, the Federal Home Loan Mortgage Corporation, or general obligations of this State or any political subdivision of it. The State Treasurer shall exercise prudence in accepting the securities listed as collateral. The surety or collateral must be filed with the State Treasurer at time of deposit."

Repeal

SECTION 2. Section 11-13-50 of the 1976 Code is repealed.

Time effective

SECTION 3. This act takes effect upon approval by the Governor.

Approved the 21st day of February, 1990.