South Carolina General Assembly
116th Session, 2005-2006

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Bill 991

Indicates Matter Stricken
Indicates New Matter


(Text matches printed bills. Document has been reformatted to meet World Wide Web specifications.)

Indicates Matter Stricken

Indicates New Matter

COMMITTEE REPORT

May 17, 2006

S. 991

Introduced by Senators Ryberg, Land and Moore

S. Printed 5/17/06--H.

Read the first time February 21, 2006.

            

THE COMMITTEE ON

LABOR, COMMERCE AND INDUSTRY

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 by a bank, etc., respectfully

REPORT:

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

Amend the bill, as and if amended, by deleting all after the enacting words and inserting:

/ 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 Banks, Federal Farm Credit Banks, 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 Banks, Federal Farm Credit Banks, 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. /

Renumber sections to conform.

Amend title to conform.

HARRY F. CATO for Committee.

            

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 Banks, 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 Banks, 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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