Judge Halts Illinois FundsSweep
SPRINGFIELD, Ill. - (03/14/05) -- A state judge Friday ordered thestate government to immediately stop using money from three fundsused to finance financial institutions regulation for generalgovermment expenses. Judge Leo Zappa issued a temporary restrainingorder, saying credit unions, banks and S&Ls could beirreparably harmed if the money is diverted from previuslydedicated accounts to the state's general fund. A group offinancial institution trade associations, including the Illinois CULeague, filed suit in December charging the funds sweeps wereillegal under the state's constitution, which created dedicatedfunds to finance examinations of financial institutions and forother purposes. The suit is still pending. The diversion of the CUFund, which now holds about $6 million, was enabled under lastMay's budget bill under which targeted 300 different fundspreviously dedicated to single purposes and holding as much as $400million to help fund the state's general operatingexpenses.