South Carolina General Assembly
108th Session, 1989-1990

Bill 3882

                    Current Status

Bill Number:               3882
Ratification Number:       348
Act Number                 327
Introducing Body:          House
Subject:                   Deposit of state funds
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(Text matches printed bills. Document has been reformatted to meet World Wide Web specifications.)

(A327, R348, H3882)

AN ACT TO AMEND SECTION 11-13-60, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO THE USE OF AN INDEMNITY BOND OR COLLATERAL TO ENSURE STATE DEPOSITS, SO AS TO REQUIRE THAT WHEN THE STATE TREASURER DEPOSITS STATE FUNDS IN EXCESS OF THE INSURANCE COVERAGE WITH A BANK OR SAVINGS AND LOAN ASSOCIATION, IT SHALL FURNISH AN INDEMNITY BOND IN AN AMOUNT SUFFICIENT TO PROTECT THE STATE AGAINST LOSS IN THE EVENT OF INSOLVENCY OR LIQUIDATION, OR PLEDGE OTHER TYPES OF COLLATERAL; AND TO REPEAL SECTION 11-13-50 RELATING TO THE REQUIREMENT THAT AN INDEMNITY BOND IS REQUIRED OF A BANK OR TRUST COMPANY WHICH IS MADE A STATE DEPOSITORY.

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

Deposit of state funds

SECTION 1. Section 11-13-60 of the 1976 Code is 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."

Repeal

SECTION 2. Section 11-13-50 of the 1976 Code is repealed.

Time effective

SECTION 3. This act takes effect upon approval by the Governor.

Approved the 21st day of February, 1990.