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Current Status Bill Number:View additional legislative information at the LPITS web site.999 Ratification Number:242 Act Number:211 Type of Legislation:General Bill GB Introducing Body:Senate Introduced Date:20020212 Primary Sponsor:Hayes All Sponsors:Hayes, Martin, Ritchie, Drummond, Land, Setzler, Pinckney Drafted Document Number:l:\council\bills\bbm\10732htc02.doc Date Bill Passed both Bodies:20020411 Governor's Action:S Date of Governor's Action:20020422 Subject:Federal Deposit Insurance Limit, letters of credit may be used as security for funds deposited in banks and savings and loan associations by the State Treasurer History Body Date Action Description Com Leg Involved ______ ________ ______________________________________ _______ ____________ ------ 20020514 Act No. A211 ------ 20020422 Signed by Governor ------ 20020416 Ratified R242 House 20020411 Read third time, enrolled for ratification House 20020410 Read second time House 20020403 Committee report: Favorable 30 HWM House 20020319 Introduced, read first time, 30 HWM referred to Committee Senate 20020314 Read third time, sent to House Senate 20020313 Read second time Senate 20020312 Committee report: Favorable 06 SF Senate 20020212 Introduced, read first time, 06 SF referred to Committee Versions of This Bill Revised on March 12, 2002 - Word format Revised on April 3, 2002 - Word format
(A211, R242, S999)
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.
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