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Government DepositsOn Wednesday, January 25, the Senate Committee on Banking and Insurance considered SB 1135 (government deposits). The League registered its support of the bill, which passed the committee on a unanimous vote.The bill authorizes municipalities to invest surplus funds and other monies not used for operating costs into federally insured savings deposit accounts through Insured Cash Sweep (ICS). ICS is a deposit placement service that allows for a depositor's funds to be swept from a transaction or checking account into savings accounts (interest-bearing money market accounts). ICS allocates the funds to accounts in banks throughout the country in amounts less than the Federal Deposit Insurance Corporation (FDIC) insurance maximum of $250,000 so that both principal and interest are eligible for FDIC insurance. |
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Legislative Bulletin is published by the League of Arizona Cities and Towns. Forward your comments or suggestions to league@azleague.org. |
