South Carolina General Assembly
116th Session, 2005-2006

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Bill 991

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Indicates New Matter

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Indicates Matter Stricken

Indicates New Matter

COMMITTEE REPORT

February 8, 2006

S. 991

Introduced by Senators Ryberg, Land and Moore

S. Printed 2/8/06--S.

Read the first time January 10, 2006.

            

THE COMMITTEE ON BANKING AND INSURANCE

To whom was referred a Bill (S. 991) to amend Section 34-21-40, as amended, Code of Laws of South Carolina, 1976, relating to securing of funds received or held in trust, etc., respectfully

REPORT:

That they have duly and carefully considered the same and recommend that the same do pass:

DAVID L. THOMAS for Committee.

            

STATEMENT OF ESTIMATED FISCAL IMPACT

ESTIMATED FISCAL IMPACT ON GENERAL FUND EXPENDITURES:

$0 (No additional expenditures or savings are expected)

ESTIMATED FISCAL IMPACT ON FEDERAL & OTHER FUND EXPENDITURES:

$0 (No additional expenditures or savings are expected)

EXPLANATION OF IMPACT:

The Board of Financial Institutions reports this bill will have no impact on the General Fund of the State or on federal and/or other funds.

Approved By:

Don Addy

Office of State Budget

A BILL

TO AMEND SECTION 34-21-40, AS AMENDED, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO SECURING OF FUNDS RECEIVED OR HELD IN TRUST BY A BANK OR TRUST COMPANY, SO AS TO FURTHER PROVIDE FOR ACCEPTABLE FORMS OF SECURITY.

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

SECTION    1.    Section 34-21-40 of the 1976 Code, as last amended by Act 156 of 1991, is further amended to read:

"Section 34-21-40.    Funds received or held in the trust department of the bank or by a trust company awaiting investment or distribution must be secured to the trust department or trust company if these funds have been deposited in its own bank, in any of its affiliate banks, or in any other banking corporation by bonds acceptable for the securing of public funds in this State equal in market value to the amount of funds deposited.:

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

(2)    pledging 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 a 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)    providing 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 letter of credit otherwise meets any criteria established and prescribed by the State Treasurer for public funds."

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

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