Bill > S0060

This bill amends South Carolina law to update regulations regarding how local government entities (such as municipalities, counties, and school districts) secure their deposited funds. The bill expands the definition of "qualified public depository" to explicitly include credit unions and adds provisions for deposits insured by the National Credit Union Share Insurance Fund. Under the updated law, when local entities deposit funds, the financial institution must secure those deposits through deposit insurance, surety bonds, investment securities, or letters of credit to protect against potential loss. If deposits exceed federal insurance limits, the depository must provide additional protection by either furnishing an indemnity bond, pledging specific types of collateral (such as U.S. government obligations), or providing an irrevocable letter of credit. The bill allows local entities two methods of 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). The legislation also permits local entities to deposit surplus funds in federally insured institutions, with the original qualified public depository acting as a custodian, provided the full principal and interest are insured by federal agencies. The bill takes effect upon the Governor's approval.

Budget and Finance, Business and Industry

https://www.scstatehouse.gov/billsearch.php?billnumbers=60&session=126&summary=B