 |
Ohio House Passes
Short-Term Deposits Bill
COLUMBUS—State Representative Richard Adams (R-Troy) today announced
that the Ohio House of Representatives has passed House Bill 209, which
enables counties and other government subdivisions to receive full
insurance coverage on their large-dollar, short-term deposit accounts
by the Federal Deposit Insurance Corporation.
The bill, sponsored by Representative Adams, would help to ensure that
public entities can avoid the more costly protection that is required
for large-dollar deposit balances of more than $250,000 through what is
known as collateralization. Currently, public entities only have access
to full FDIC coverage on large-dollar amounts if the funds are put into
long-term certificates of deposit, meaning they must pay more to use
large sums in the short-term.
“This legislation makes a common-sense change that will benefit our
local government entities and the taxpayers,” Rep. Adams said. “I’m
very pleased that the entire House of Representatives voted in support
of it.”
Rather than collateralization or the use of a long-term certificate of
deposit program, a county or government subdivision would be permitted
to work with a bank to leverage the full FDIC coverage on short-term
deposits.
House Bill 209 will now move to the Ohio Senate for further
consideration.
|
