SUMMARY:  Allows multibank pooling of depositories for the acceptance of deposits of public funds from public bodies.

Note:  to qualify for deposits of public funds, banks must cover such deposits by the Federal Deposit Insurance Corporation (FDIC) or maintain securities or surety bonds equal to an amount set by the State Depository Board. Some banks choose not to engage in public funds business due to the required collateral.  

PROVISIONS:

•  allows for two or more banks to participate in a muti bank pool to cover public deposits that are in excess of FDIC guarantees
• each covered depository shall guarantee the deposits of a public body against losses caused by the default of other depositories within the miltibank pool 

EFFECTIVE DATE:  August 1, 2016 if approved by the General Assembly and Governor.