California joined 34 other states in enacting legislation that lets local governments receive up to $30 million of deposit insurance through a single bank.
Processing Content
Gov. Arnold Schwarzenegger signed the bill, AB 2011, into law Monday.
The legislation, authored by Assemblyman Juan Vargas, D-San Diego, lets California municipalities to use deposit placement services such as Promontory Interfinancial Network of Arlington, Va., to divide their funds into certificates of less than $100,000 at multiple banks, so that the funds would be eligible for federal insurance.
