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| | SB2820 Engrossed | | LRB099 19813 RPS 44212 b |
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| 1 | | AN ACT concerning public employee benefits.
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| 2 | | Be it enacted by the People of the State of Illinois,
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| 3 | | represented in the General Assembly:
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| 4 | | Section 5. The Illinois Pension Code is amended by adding |
| 5 | | Section 6-183.1 as follows:
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| 6 | | (40 ILCS 5/6-183.1 new) |
| 7 | | Sec. 6-183.1. To lend securities. The board may lend |
| 8 | | securities owned by the Fund to a borrower upon such terms and |
| 9 | | conditions as may be mutually agreed in writing. Such agreement |
| 10 | | shall provide that during the period of such loan the Fund |
| 11 | | shall retain the right to receive, or collect from the |
| 12 | | borrower, all dividends, interest rights, or any distributions |
| 13 | | to which the Fund would have otherwise been entitled. The |
| 14 | | borrower shall deposit with the Fund, as collateral for such |
| 15 | | loan, cash equal to the market value of the securities at the |
| 16 | | time the loan is made and shall increase the amount of |
| 17 | | collateral if and when the Fund requests an additional amount |
| 18 | | because of subsequent increased market value of the securities. |
| 19 | | The period for which the securities may be loaned shall not |
| 20 | | exceed one year, and the loan agreement may specify earlier |
| 21 | | termination by either party upon mutually agreed conditions.
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| 22 | | Section 99. Effective date. This Act takes effect upon |