We believe that you must provide your two most recent Call Reports before you receive any public funds. For subsequent Call Reports, we recommend reviewing the public agency depositor’s investment policy and your account agreement for any specific timing requirements. In the absence of any guidance, we recommend submitting the Call Reports on a quarterly basis to ensure you meet the requirement to furnish “all statements of resources and liabilities” while serving as a designated depository for public funds.

The Public Funds Investment Act requires banks that wish to hold public funds to furnish their two most recent Call Reports to their public agency depositor before receiving any public funds. While serving as depositories, banks must submit copies of all Call Reports. (These requirements do not apply if the funds are fully FDIC-insured and held in an interest-bearing savings account, demand deposit account, or interest-bearing certificate of deposit, and the bank is located in Illinois.) However, the Act does not establish any specific timing requirements related to furnishing subsequent Call Reports to the public agency.

For this reason, we recommend reviewing the public agency depositor’s investment policy and your account agreement with the public agency — which may impose responsibilities for furnishing Call Reports — and communicating with them about any requirements regarding the timing for furnishing Call Reports.

For resources related to our guidance, please see:

• Public Funds Investment Act, 30 ILCS 235/6(a) (“No bank shall receive any public funds unless it has furnished the corporate authorities of a public agency submitting a deposit with copies of the last two sworn statements of resources and liabilities which the bank is required to furnish to the Commissioner of Banks and Real Estate or to the Comptroller of the Currency. Each bank designated as a depository for public funds shall, while acting as such depository, furnish the corporate authorities of a public agency with a copy of all statements of resources and liabilities which it is required to furnish to the Commissioner of Banks and Real Estate or to the Comptroller of the Currency; . . . .”)

• Public Funds Investment Act, 30 ILCS 235/6.5(a) (“Notwithstanding any other provision of this Act or any other statute, whenever a public agency invests public funds in an interest-bearing savings account, demand deposit account, interest-bearing certificate of deposit, or interest-bearing time deposit under Section 2 of this Act, the provisions of Section 6 of this Act and any other statutory requirements pertaining to the eligibility of a bank to receive or hold public deposits or to the pledging of collateral by a bank to secure public deposits do not apply to any bank receiving or holding all or part of the invested public funds if (i) the public agency initiates the investment at or through a bank located in Illinois and (ii) the invested public funds are at all times fully insured by an agency or instrumentality of the federal government.”)

• Public Funds Investment Act, 30 ILCS 235/6.5(b) (“Nothing in this Section is intended to: (1) prohibit a public agency from requiring the bank at or through which the investment of public funds is initiated to provide the public agency with the information otherwise required by subsection (a), (b), or (c) of Section 6 of this Act as a condition of investing the public funds at or through that bank; or (2) permit a bank to receive or hold public deposits if that bank is prohibited from doing so by any rule, sanction, or order issued by a regulatory agency or by a court.”)