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Government DepositsOn Monday, February 20, the House Committee on Banking and Insurance unanimously passed SB 1135 (government deposits). The bill, sponsored by Senator John McComish (R-Phoenix), previously passed the Senate by a vote of 29-0. The League supports the measure.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. |
