S*0999(Rat #0242, Act #0211 of 2002)  General Bill, By Hayes, Martin, Ritchie, 
Drummond, Land, Setzler and Pinckney

Similar(H 4715)
 A BILL TO AMEND SECTION 11-13-60, AS AMENDED, CODE OF LAWS OF SOUTH CAROLINA,
 1976, RELATING TO THE SECURITY REQUIRED FOR STATE FUNDS IN EXCESS OF THE
 FEDERAL DEPOSIT INSURANCE LIMIT DEPOSITED BY THE STATE TREASURER IN A BANK OR
 SAVINGS AND LOAN ASSOCIATION, SO AS TO ALLOW SECURITY FOR THESE DEPOSITS IN
 THE FORM OF LETTERS OF CREDIT, AND TO PROVIDE THE REQUIREMENTS FOR THESE
 LETTERS OF CREDIT.

   02/12/02  Senate Introduced and read first time SJ-3
   02/12/02  Senate Referred to Committee on Finance SJ-3
   03/12/02  Senate Committee report: Favorable Finance SJ-11
   03/13/02  Senate Read second time SJ-13
   03/14/02  Senate Read third time and sent to House SJ-10
   03/19/02  House  Introduced and read first time HJ-10
   03/19/02  House  Referred to Committee on Ways and Means HJ-11
   04/03/02  House  Committee report: Favorable Ways and Means HJ-10
   04/10/02  House  Read second time HJ-38
   04/11/02  House  Read third time and enrolled HJ-8
   04/16/02         Ratified R 242
   04/22/02         Signed By Governor
   05/08/02         Effective date 04/22/02
   05/08/02         Copies available
   05/14/02         Act No. 211

AN ACT TO AMEND SECTION 11-13-60, AS AMENDED, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO THE SECURITY REQUIRED FOR STATE FUNDS IN EXCESS OF THE FEDERAL DEPOSIT INSURANCE LIMIT DEPOSITED BY THE STATE TREASURER IN A BANK OR SAVINGS AND LOAN ASSOCIATION, SO AS TO ALLOW SECURITY FOR THESE DEPOSITS IN THE FORM OF LETTERS OF CREDIT, AND TO PROVIDE THE REQUIREMENTS FOR THESE LETTERS OF CREDIT.

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

Security for state funds

SECTION 1. Section 11-13-60 of the 1976 Code, as last amended by Act 327 of 1990, is further amended to read:

"Section 11-13-60. A bank or savings and loan association, upon the deposit of state funds by the State Treasurer, must secure these deposits by deposit insurance, surety bonds, collateral securities, or letters of credit to protect the State against loss in the event of insolvency or liquidation of the institution or for any other cause. To the extent that these deposits exceed the amount of insurance coverage provided by the Federal Deposit Insurance Corporation, the bank or savings and loan association, at the time of deposit, shall:

(1) furnish an indemnity bond in a responsible surety company authorized to do business in this State; or

(2) pledge as collateral:

(a) obligations of the United States;

(b) obligations fully guaranteed both as to principal and interest by the United States;

(c) general obligations of this State or any political subdivision of this State; or

(d) obligations of the Federal National Mortgage Association, the Federal Home Loan Bank, Federal Farm Credit Bank, or the Federal Home Loan Mortgage Corporation; or

(3) provide an irrevocable letter of credit issued by the Federal National Mortgage Association, the Federal Home Loan Bank, Federal Farm Credit Bank, or the Federal Home Loan Mortgage Corporation, in which the State Treasurer is named as beneficiary and the letter of credit otherwise meets the criteria established and prescribed by the State Treasurer. The State Treasurer shall exercise prudence in accepting collateral securities or other forms of deposit security."

Time effective

SECTION 2. This act takes effect upon approval by the Governor.

Ratified the 16th day of April, 2002.

Approved the 22nd day of April, 2002.