Bill > H3221

This bill amends South Carolina law to clarify and expand provisions related to how local government entities (such as municipalities, counties, and school districts) can secure their deposited funds. Specifically, the bill updates the existing statute to explicitly include credit unions and the National Credit Union Share Insurance Fund as part of the authorized deposit and insurance options. Under the new provisions, local entities can secure their funds through various methods, including deposit insurance, surety bonds, investment securities, or letters of credit. Qualified public depositories (which now explicitly include federal and state credit unions) must protect funds that exceed federal insurance limits by either providing an indemnity bond, pledging specific types of collateral like U.S. government obligations, or offering an irrevocable letter of credit from certain federal financial institutions. The bill also maintains two methods for securing uninsured funds: the Dedicated Method (where funds are secured separately) and the Pooling Method (where a collective pool of collateral is established under the State Treasurer's direction). Importantly, the law requires depositories to ensure that all deposited funds are fully insured or collateralized, providing an additional layer of protection for local government financial assets. The bill takes effect upon the Governor's approval.

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https://www.scstatehouse.gov/billsearch.php?billnumbers=3221&session=126&summary=B