South Carolina S 60: Law enforcement and public safety

Bill Text

2025-2026 Bill 60 Text of Previous Version (Dec. 11, 2024) - South Carolina Legislature Online 

South Carolina General Assembly
126th Session, 2025-2026

Bill 60

Indicates Matter Stricken
Indicates New Matter

(Text matches printed bills. Document has been reformatted to meet World Wide Web specifications.)

A bill

TO AMEND THE SOUTH CAROLINA CODE OF LAWS BY AMENDING 
SECTION 6-5-15, RELATING TO SECURING DEPOSITS OF FUNDS BY LOCAL ENTITIES, SO AS 
TO INCLUDE PROVISIONS CONCERNING CREDIT UNIONS AND THE NATIONAL CREDIT UNION 
SHARE INSURANCE FUND.

Be it enacted by the 
General Assembly of the State of South Carolina:

SECTION 1. Section 6-5-15 of the S.C. Code is amended to read:

 Section 
6-5-15. (A) As used in this section, 
"local entity" means the governing body of a municipality, county, school 
district, other local government unit or political subdivision, or a county 
treasurer.

 (B) A 
qualified public depository, as defined in subsection (G), upon the deposit of 
funds by a local entity, must secure these deposits by deposit insurance, 
surety bonds, investment securities, or letters of credit to protect the local 
entity against loss in the event of insolvency or liquidation of the 
institution or for any other cause.

 (C) To 
the extent that these deposits exceed the amount of insurance coverage provided 
by the Federal Deposit Insurance Corporation or the 
National Credit Union Share Insurance Fund, the qualified public 
depository at the time of deposit must:

 (1) 
furnish an indemnity bond in a responsible surety company authorized to do 
business in this State; or

 (2) 
pledge as collateral:

 (a) 
obligations of the United States;

 (b) 
obligations fully guaranteed both as to principal and interest by the United 
States;

 (c) 
general obligations of this State or any political subdivision of this State; 
or

 (d) 
obligations of the Federal National Mortgage Association, the Federal Home Loan 
Bank, Federal Farm Credit Bank, or the Federal Home Loan Mortgage Corporation; 
or

 (3) 
provide an irrevocable letter of credit issued by the Federal National Mortgage 
Association, the Federal Home Loan Bank, Federal Farm Credit Bank, or the 
Federal Home Loan Mortgage Corporation, in which the local entity is named as 
beneficiary and the letter of credit otherwise meets the criteria established 
and prescribed by the local entity.

 (D) The 
local entity must exercise prudence in accepting collateral securities or other 
forms of deposit security.

 (E)(1) A qualified public depository has the 
following options:

 (a) 
to secure all or a portion of uninsured funds under the Dedicated Method where 
all or a portion of the uninsured funds are secured separately. The qualified 
public depository shall maintain a record of all securities pledged, with the 
record being an official record of the qualified public depository and made 
available to examiners or representatives of all regulatory agencies. The local 
entity shall maintain a record of the securities pledged for monitoring 
purposes;

 (b) 
to secure all or the remainder of uninsured funds under the Pooling Method 
where a pool of collateral is established by the qualified public depository 
under the direction of the State Treasurer for the benefit of local entities. 
The depository shall obtain written approval from each entity before pooling an 
entity's collateral. The depository shall maintain a record of all securities 
pledged, with the record being an official record of the qualified public 
depository and made available to examiners or representatives of all regulatory 
agencies. The State Treasurer shall determine the requirements and operating 
procedures for this pool. The State Treasurer is responsible for monitoring and 
ensuring a depository's compliance and providing monthly reports to each local 
entity in the pool.

 (2) 
Notwithstanding the provisions of item (1), the local entity, when other 
federal or state law applies, may require a qualified public depository to 
secure all uninsured funds separately under the Dedicated Method.

 (F) A 
qualified public depository shall not accept or retain any funds that are 
required to be secured unless it has deposited eligible collateral equal to its 
required collateral with some proper depository pursuant to this chapter.

 (G) 
"Qualified public depository" means a national banking association, state 
banking association, federal savings and loan association, federal credit union, state credit union, or federal 
savings bank located in this State and a bank, credit 
union, trust company, or savings institution organized under the law of 
this State that receives or holds funds that are secured pursuant to this 
chapter.

 (H) In 
addition to the investments authorized for local entities in Section 6-5-10 and 
notwithstanding another provision of law, a local entity may deposit all or a 
portion of surplus public funds in its control or possession in accordance with