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Government depositsOn Wednesday, March 21, the Governor signed into law SB 1135 (government deposits). The bill, supported by the League and sponsored by Senator John McComish (R-Phoenix), had previously passed both the House and Senate by unanimous votes.The new law 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. |
