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Client Alert: Township & Road District Payout Attestation Requirement

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New Illinois Law – What does it mean for you?

Action items

Senate Bill 2923

On August 19, 2018, Governor Rauner signed Senate Bill 2923 (the “Act”) into law, amending the Illinois Township Code to enhance transparency and provide additional checks and balances on local government payments. The new law is deceptively simple on its face – on and after January 1, 2019, when a township supervisor or road district treasurer issues a payout from the treasury, the township clerk/ road district clerk must attest to the funds paid out. According to FAQs issued by the Township Officials of Illinois (TOI) trade group, “attest” in this context means that the clerk must formally witness or certify the content of the payout by signing his/her name.

Bank Issues

The law has raised a number of concerns for our Illinois bank clients. We have the following observations in response to the issues raised:

The bottom line is that it is not up to the bank to ensure that the township or road district is complying with its statutory duties, but banks should work with their customers so that they understand the new law’s impact on payments drawn on their accounts at the bank and modify their agreements, as necessary.

We Can Help You

We have extensive experience in helping banks with their treasury management agreements and other compliance and regulatory needs. Please contact us if you are contemplating any changes in these areas considering this new law. If so, we can assist you with these issues.

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