The bill H. 3221 aims to amend Section 6-5-15 of the South Carolina Code of Laws, which pertains to the securing of deposits of funds by local entities. The amendment introduces provisions that specifically address credit unions and the National Credit Union Share Insurance Fund, thereby expanding the scope of qualified public depositories to include these financial institutions. The bill outlines the requirements for securing deposits that exceed federally insured amounts, including the use of indemnity bonds, collateral obligations, and irrevocable letters of credit, while also detailing the options available to qualified public depositories for securing uninsured funds.

Additionally, the bill emphasizes the importance of prudence in accepting collateral securities and establishes a framework for local entities to manage their surplus public funds. It allows local entities to deposit funds in qualified public depositories, which can then arrange for these funds to be placed in federally insured banks or credit unions, ensuring that the principal and accrued interest are fully insured. The act will take effect upon approval by the Governor.

Statutes affected:
12/05/2024: 6-5-15
Latest Version: 6-5-15
12/06/2024: 6-5-15