Trust Accounts

Section 3 Section 3.50  Trust Accounts The Department of Agriculture shall establish and deposit funds received from a liquidated bond into an interest-bearing trust account in a federally insured financial institution until payment to claimants is made. The funds in a trust account shall be paid to claimants with valid claims by check written by the Department.  An accounting of the funds which are deposited in the trust account shall be maintained by the Department on a separate accounting record for each trust account, identifiable as to the source of such funds, and any accrued interest shall be prorated among the identified funds in amounts equal to the same percentage as each identified fund is to the total of the trust account.  Accrued interest from funds in a trust account shall be available for payment of valid claims.  In determining the type of account in which to deposit bond proceeds, the Department shall consider interest rates, the anticipated period of time before payment to claimants with valid claims will be made, maturity dates, and any other factors which could affect the maximization of funds for the benefit of claimants.  Reports shall be made to the Comptroller of funds held in such accounts in accordance with Section 16 of the State Comptroller Act [15 ILCS 405/16].