Download This Version in Microsoft Word format
Indicates Matter Stricken
Indicates New Matter
COMMITTEE REPORT
April 10, 2002
H. 4715
S. Printed 4/10/02--H.
Read the first time February 12, 2002.
To whom was referred a Bill (H. 4715) 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, etc., respectfully
That they have duly and carefully considered the same and recommend that the same do pass:
HARRY F. CATO for Committee.
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:
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 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. 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."
SECTION 2. This act takes effect upon approval by the Governor.
This web page was last updated on Thursday, June 25, 2009 at 2:22 P.M.