(A) The City Treasurer shall not deposit the city’s funds in a bank until that bank has furnished the City Council with copies of the last two sworn statements of resources and liabilities which the bank is required to furnish to the Commissioner of Banks and Trust Companies or to the Comptroller of the Currency. The City Treasurer shall require that bank, while he or she maintains deposits of the city’s funds in the bank, to furnish the City Council with a copy of all statements of resources and liabilities which that bank is required to furnish to the Commissioner of Banks and Trust Companies or to the Comptroller of the Currency. The City Treasurer shall not allow that portion of the city’s deposits in a bank, which portion is not collateralized or insured by an agency of the federal government, to exceed 75% of the capital stock and surplus of the bank.
(B) The City Treasurer shall not deposit the city’s funds in a savings and loan association until that savings and loan association has furnished the City Council with copies of the last two sworn statements of resources and liabilities which the savings and loan association is required to furnish to the Commissioner of Savings and Loan Associations or the Federal Home Loan Bank. The City Treasurer shall require that savings and loan association, while he or she maintains deposits of the city’s funds in the savings and loan association, to furnish the City Council with a copy of all statements of resources and liabilities which that savings and loan association is required to furnish to the Commissioner of Savings and Loan Associations or the Federal Home Loan Bank. The City Treasurer shall not allow that portion of the city’s deposits in a savings and loan association, which portion is not collateralized or insured by an agency of the federal government, to exceed 75% of the net worth of the savings and loan association as defined by the Federal Savings and Loan Insurance Corporation.
(C) The City Treasurer shall not deposit the city’s funds in a credit union until that credit union has furnished the City Council with copies of the last two reports of examination prepared by or submitted to the State Department of Financial Institutions or the National Credit Union Administration. The City Treasurer shall require that credit union, while he or she maintains deposits of the city’s funds in the credit union, to furnish the City Council with a copy of all reports of examination prepared by or furnished to the State Department of Financial Institutions or the National Credit Union Administration. The City Treasurer shall not allow that portion of the city’s deposits in a credit union, which portion is not collateralized or insured by an agency of the federal government or other approved share insurer, to exceed 50% of the unimpaired capital and surplus of such credit union, which shall include shares, reserves and undivided earnings.
(D) The City Treasurer shall, whenever possible, deposit the city’s funds only in financial institutions which will enter into a written security agreement with the city to the effect that any portion of the city’s deposits which are not insured by the Federal Deposit Insurance Corporation, Federal Savings and Loan Insurance Corporation, or the National Credit Union Administration or other approved share insurer, shall be collateralized by securities or mortgages in an amount equal to at least the market value of the uninsured portion of the city’s deposits.
(1986 Code, § 2-140.2)
Statutory reference:
Similar provisions, see ILCS Ch. 30, Act 235, § 6