Bill > H3760

This bill modernizes banking laws for Commonwealth and municipal entities to enhance customer protection by allowing public funds to be deposited in a way that ensures full insurance by the Federal Deposit Insurance Corporation (FDIC), even if the initial banking institution is not directly insured for the full amount. Specifically, it amends Chapter 29 of the General Laws to permit a portion of public monies to be deposited through a Commonwealth-based, FDIC-insured banking institution, which then arranges for the redeposit of these funds into deposit accounts in one or more banks or savings and loan associations, ensuring the principal and accrued interest are fully FDIC-insured. It also revises Chapter 35 to allow county treasurers and other officials to deposit excess funds in various types of financial institutions at the best practicable interest rates, with provisions for how interest is paid, and makes similar adjustments to Chapter 40G regarding the Municipal Technology Development Corporation (MTDC) and Chapter 44 concerning cities, towns, districts, and regional school districts, allowing them to invest funds through a selected banking company that then redeposits them to ensure full FDIC insurance.