An Act To Protect State Education Funds
Be it enacted by the People of the State of Maine as follows:
Sec. 1. 20-A MRSA §1001, sub-§19 is enacted to read:
19. Protection from bank fraud. Each school board may deposit funds received from the State only in banks that protect against fraudulent automatic clearinghouse transactions. For the purposes of this subsection, "automatic clearinghouse transaction" means an electronic funds transfer between bank accounts that groups transactions.
SUMMARY
This bill prohibits school boards from depositing funds received from the State in banks that do not cover losses in cases of fraudulent automatic clearinghouse transactions. "Automatic clearinghouse transaction" means an electronic funds transfer between bank accounts that groups transactions.