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1 | AN ACT concerning State government.
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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 Deposit of State Moneys Act is amended by | |||||||||||||||||||||||
5 | changing Sections 10, 11, and 22.5 as follows:
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6 | (15 ILCS 520/10) (from Ch. 130, par. 29)
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7 | Sec. 10.
The State Treasurer may enter into agreement in | |||||||||||||||||||||||
8 | conformity
with this Act with any bank or savings and loan | |||||||||||||||||||||||
9 | association
relating to
the deposit of securities. Such | |||||||||||||||||||||||
10 | agreement may authorize the holding
by such bank or savings and | |||||||||||||||||||||||
11 | loan association of such securities in custody
and safekeeping | |||||||||||||||||||||||
12 | solely under the instructions of the State Treasurer either
(a) | |||||||||||||||||||||||
13 | in the office of such bank or savings and loan
association, or | |||||||||||||||||||||||
14 | under the custody and safekeeping of another bank or
savings | |||||||||||||||||||||||
15 | and loan association in this State for the
depository bank or | |||||||||||||||||||||||
16 | savings and loan association, or (b) in if the securities
to be | |||||||||||||||||||||||
17 | deposited are held in custody and safekeeping for such bank or | |||||||||||||||||||||||
18 | savings
and loan association by a bank or a depository trust | |||||||||||||||||||||||
19 | company
in the United States if the securities to be deposited | |||||||||||||||||||||||
20 | are held in custody and safekeeping for such bank or savings | |||||||||||||||||||||||
21 | and loan association New York City, then in such New York bank | |||||||||||||||||||||||
22 | or depository trust company .
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23 | (Source: P.A. 83-541.)
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1 | (15 ILCS 520/11) (from Ch. 130, par. 30)
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2 | Sec. 11. Protection of public deposits; eligible | ||||||
3 | collateral.
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4 | (a) For deposits not insured by an agency of the federal | ||||||
5 | government,
the State Treasurer, in his or her discretion, may | ||||||
6 | accept as collateral any
of the
following classes of | ||||||
7 | securities, provided there has been no default in the
payment | ||||||
8 | of principal or interest thereon:
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9 | (1) Bonds, notes, or other securities constituting | ||||||
10 | direct and general
obligations of the United States, the | ||||||
11 | bonds, notes, or other securities
constituting the direct | ||||||
12 | and general obligation of any agency or
instrumentality of | ||||||
13 | the United States, the interest and principal of which
is | ||||||
14 | unconditionally guaranteed by the United States, and | ||||||
15 | bonds, notes, or
other securities or evidence of | ||||||
16 | indebtedness constituting the obligation of
a U.S. agency | ||||||
17 | or instrumentality.
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18 | (2) Direct and general obligation bonds of the State of | ||||||
19 | Illinois or of
any other state of the United States.
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20 | (3) Revenue bonds of this State or any authority, | ||||||
21 | board, commission,
or similar agency thereof.
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22 | (4) Direct and general obligation bonds of any city, | ||||||
23 | town, county,
school district, or other taxing body of any | ||||||
24 | state, the debt service of
which is payable from general ad | ||||||
25 | valorem taxes.
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1 | (5) Revenue bonds of any city, town, county, or school | ||||||
2 | district of the
State of Illinois.
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3 | (6) Obligations issued, assumed, or guaranteed by the | ||||||
4 | International
Finance Corporation, the principal of which | ||||||
5 | is not amortized during the
life of the obligation, but no | ||||||
6 | such obligation shall be accepted at more
than 90% of its | ||||||
7 | market value.
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8 | (7) Illinois Affordable Housing Program Trust Fund | ||||||
9 | Bonds or Notes as
defined in and issued pursuant to the | ||||||
10 | Illinois Housing Development Act.
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11 | (8) In an amount equal to at least market value of that | ||||||
12 | amount of funds
deposited exceeding the insurance | ||||||
13 | limitation provided by the Federal Deposit
Insurance | ||||||
14 | Corporation or the National Credit Union Administration or | ||||||
15 | other
approved share insurer: (i) securities, (ii) | ||||||
16 | mortgages, (iii) letters of
credit issued by a Federal Home | ||||||
17 | Loan Bank, or (iv) loans covered by a State
Guarantee under | ||||||
18 | the Illinois Farm Development Act, if that
guarantee has | ||||||
19 | been assumed by the Illinois Finance Authority under | ||||||
20 | Section
845-75 of the Illinois Finance Authority Act, and | ||||||
21 | loans covered by a State
Guarantee under Article 830 of the | ||||||
22 | Illinois Finance Authority Act.
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23 | (9) Obligations of either corporations or limited | ||||||
24 | liability companies organized in the United States with | ||||||
25 | assets exceeding $500,000,000 if: (i) the obligations are | ||||||
26 | rated at the time of purchase at one of the 3 highest |
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1 | classifications established by at least 2 standard rating | ||||||
2 | services and mature more than 270 days, but less than 5 | ||||||
3 | years, from the date of purchase; and (ii) the corporation | ||||||
4 | or the limited liability company has not been placed on the | ||||||
5 | list of restricted companies by the Illinois Investment | ||||||
6 | Policy Board under Section 1-110.16 of the Illinois Pension | ||||||
7 | Code. | ||||||
8 | (b) The State Treasurer may establish a system to aggregate | ||||||
9 | permissible
securities received as collateral from financial | ||||||
10 | institutions in a
collateral pool to secure State deposits of | ||||||
11 | the institutions that have
pledged securities to the pool.
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12 | (c) The Treasurer may at any time declare any particular | ||||||
13 | security
ineligible to qualify as collateral when, in the | ||||||
14 | Treasurer's judgment, it
is deemed desirable to do so.
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15 | (d) Notwithstanding any other provision of this Section, as | ||||||
16 | security the
State Treasurer may, in his discretion, accept a | ||||||
17 | bond, executed by a company
authorized to transact the kinds of | ||||||
18 | business described in clause (g) of
Section 4 of the Illinois | ||||||
19 | Insurance Code, in an amount not less than the
amount of the | ||||||
20 | deposits required by this Section to be secured, payable to the
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21 | State Treasurer for the benefit of the People of the State of | ||||||
22 | Illinois, in
a form that is acceptable to the State Treasurer.
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23 | (Source: P.A. 95-331, eff. 8-21-07.)
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24 | (15 ILCS 520/22.5) (from Ch. 130, par. 41a)
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25 | (For force and effect of certain provisions, see Section 90 |
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1 | of P.A. 94-79) | ||||||
2 | Sec. 22.5. Permitted investments. The State Treasurer may, | ||||||
3 | with the
approval of the Governor, invest and reinvest any | ||||||
4 | State money in the treasury
which is not needed for current | ||||||
5 | expenditures due or about to become due, in
obligations of the | ||||||
6 | United States government or its agencies or of National
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7 | Mortgage Associations established by or under the National | ||||||
8 | Housing Act, 12 1201
U.S.C. 1701 et seq., or
in mortgage | ||||||
9 | participation certificates representing undivided interests in
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10 | specified, first-lien conventional residential Illinois | ||||||
11 | mortgages that are
underwritten, insured, guaranteed, or | ||||||
12 | purchased by the Federal Home Loan
Mortgage Corporation or in | ||||||
13 | Affordable Housing Program Trust Fund Bonds or
Notes as defined | ||||||
14 | in and issued pursuant to the Illinois Housing Development
Act. | ||||||
15 | All such obligations shall be considered as cash and may
be | ||||||
16 | delivered over as cash by a State Treasurer to his successor.
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17 | The State Treasurer may, with the approval of the Governor, | ||||||
18 | purchase
any state bonds with any money in the State Treasury | ||||||
19 | that has been set
aside and held for the payment of the | ||||||
20 | principal of and interest on the
bonds. The bonds shall be | ||||||
21 | considered as cash and may be delivered over
as cash by the | ||||||
22 | State Treasurer to his successor.
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23 | The State Treasurer may, with the approval of the Governor, | ||||||
24 | invest or
reinvest any State money in the treasury that is not | ||||||
25 | needed for
current expenditure due or about to become due, or | ||||||
26 | any money in the
State Treasury that has been set aside and |
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1 | held for the payment of the
principal of and the interest on | ||||||
2 | any State bonds, in shares,
withdrawable accounts, and | ||||||
3 | investment certificates of savings and
building and loan | ||||||
4 | associations, incorporated under the laws of this
State or any | ||||||
5 | other state or under the laws of the United States;
provided, | ||||||
6 | however, that investments may be made only in those savings
and | ||||||
7 | loan or building and loan associations the shares and | ||||||
8 | withdrawable
accounts or other forms of investment securities | ||||||
9 | of which are insured
by the Federal Deposit Insurance | ||||||
10 | Corporation.
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11 | The State Treasurer may not invest State money in any | ||||||
12 | savings and
loan or building and loan association unless a | ||||||
13 | commitment by the savings
and loan (or building and loan) | ||||||
14 | association, executed by the president
or chief executive | ||||||
15 | officer of that association, is submitted in the
following | ||||||
16 | form:
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17 | The .................. Savings and Loan (or Building | ||||||
18 | and Loan)
Association pledges not to reject arbitrarily | ||||||
19 | mortgage loans for
residential properties within any | ||||||
20 | specific part of the community served
by the savings and | ||||||
21 | loan (or building and loan) association because of
the | ||||||
22 | location of the property. The savings and loan (or building | ||||||
23 | and
loan) association also pledges to make loans available | ||||||
24 | on low and
moderate income residential property throughout | ||||||
25 | the community within
the limits of its legal restrictions | ||||||
26 | and prudent financial practices.
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1 | The State Treasurer may, with the approval of the Governor, | ||||||
2 | invest or
reinvest , at a price not to exceed par, any State | ||||||
3 | money in the treasury
that is not needed for current | ||||||
4 | expenditures due or about to become
due, or any money in the | ||||||
5 | State Treasury that has been set aside and
held for the payment | ||||||
6 | of the principal of and interest on any State
bonds, in bonds | ||||||
7 | issued by counties or municipal corporations of the
State of | ||||||
8 | Illinois.
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9 | The State Treasurer may invest or reinvest up to 5% of the | ||||||
10 | College Savings Pool Administrative Trust Fund, the Illinois | ||||||
11 | Public Treasurer Investment Pool (IPTIP) Administrative Trust | ||||||
12 | Fund, and the State Treasurer's Administrative Fund that is not | ||||||
13 | needed for current expenditures due or about to become due, in | ||||||
14 | common or preferred stocks of publicly traded corporations, | ||||||
15 | partnerships, or limited liability companies, organized in the | ||||||
16 | United States, with assets exceeding $500,000,000 if: (i) the | ||||||
17 | purchases do not exceed 1% of the corporation's or the limited | ||||||
18 | liability company's outstanding common and preferred stock; | ||||||
19 | (ii) no more than 10% of the total funds are invested in any | ||||||
20 | one publicly traded corporation, partnership, or limited | ||||||
21 | liability company; and (iii) the corporation or the limited | ||||||
22 | liability company has not been placed on the list of restricted | ||||||
23 | companies by the Illinois Investment Policy Board under Section | ||||||
24 | 1-110.16 of the Illinois Pension Code. | ||||||
25 | The State Treasurer may, with the approval of the Governor, | ||||||
26 | invest or
reinvest any State money in the Treasury which is not |
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1 | needed for current
expenditure, due or about to become due, or | ||||||
2 | any money in the State Treasury
which has been set aside and | ||||||
3 | held for the payment of the principal of and
the interest on | ||||||
4 | any State bonds, in participations in loans, the principal
of | ||||||
5 | which participation is fully guaranteed by an agency or | ||||||
6 | instrumentality
of the United States government; provided, | ||||||
7 | however, that such loan
participations are represented by | ||||||
8 | certificates issued only by banks which
are incorporated under | ||||||
9 | the laws of this State or any other state
or under the laws of | ||||||
10 | the United States, and such banks, but not
the loan | ||||||
11 | participation certificates, are insured by the Federal Deposit
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12 | Insurance Corporation.
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13 | Whenever the total amount of vouchers presented to the | ||||||
14 | Comptroller under Section 9 of the State Comptroller Act | ||||||
15 | exceeds the funds available in the General Revenue Fund by | ||||||
16 | $1,000,000,000 or more, then the State Treasurer may invest any | ||||||
17 | State money in the Treasury, other than money in the General | ||||||
18 | Revenue Fund, Health Insurance Reserve Fund, Attorney General | ||||||
19 | Court Ordered and Voluntary Compliance Payment Projects Fund, | ||||||
20 | Attorney General Whistleblower Reward and Protection Fund, and | ||||||
21 | Attorney General's State Projects and Court Ordered | ||||||
22 | Distribution Fund, which is not needed for current | ||||||
23 | expenditures, due or about to become due, or any money in the | ||||||
24 | State Treasury which has been set aside and held for the | ||||||
25 | payment of the principal of and the interest on any State bonds | ||||||
26 | with the Office of the Comptroller in order to enable the |
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1 | Comptroller to pay outstanding vouchers. At any time, and from | ||||||
2 | time to time outstanding, such investment shall not be greater | ||||||
3 | than $2,000,000,000. Such investment shall be deposited into | ||||||
4 | the General Revenue Fund or Health Insurance Reserve Fund as | ||||||
5 | determined by the Comptroller. Such investment shall be repaid | ||||||
6 | by the Comptroller with an interest rate tied to the London | ||||||
7 | Interbank Offered Rate (LIBOR) or the Federal Funds Rate or an | ||||||
8 | equivalent market established variable rate, but in no case | ||||||
9 | shall such interest rate exceed the lesser of the penalty rate | ||||||
10 | established under the State Prompt Payment Act or the timely | ||||||
11 | pay interest rate under Section 368a of the Illinois Insurance | ||||||
12 | Code. The State Treasurer and the Comptroller shall enter into | ||||||
13 | an intergovernmental agreement to establish procedures for | ||||||
14 | such investments, which market established variable rate to | ||||||
15 | which the interest rate for the investments should be tied, and | ||||||
16 | other terms which the State Treasurer and Comptroller | ||||||
17 | reasonably believe to be mutually beneficial concerning these | ||||||
18 | investments by the State Treasurer. The State Treasurer and | ||||||
19 | Comptroller shall also enter into a written agreement for each | ||||||
20 | such investment that specifies the period of the investment, | ||||||
21 | the payment interval, the interest rate to be paid, the funds | ||||||
22 | in the Treasury from which the Treasurer will draw the | ||||||
23 | investment, and other terms upon which the State Treasurer and | ||||||
24 | Comptroller mutually agree. Such investment agreements shall | ||||||
25 | be public records and the State Treasurer shall post the terms | ||||||
26 | of all such investment agreements on the State Treasurer's |
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1 | official website. In compliance with the intergovernmental | ||||||
2 | agreement, the Comptroller shall order and the State Treasurer | ||||||
3 | shall transfer amounts sufficient for the payment of principal | ||||||
4 | and interest invested by the State Treasurer with the Office of | ||||||
5 | the Comptroller under this paragraph from the General Revenue | ||||||
6 | Fund or the Health Insurance Reserve Fund to the respective | ||||||
7 | funds in the Treasury from which the State Treasurer drew the | ||||||
8 | investment. Public Act 100-1107 This amendatory Act of the | ||||||
9 | 100th General Assembly shall constitute an irrevocable and | ||||||
10 | continuing authority for all amounts necessary for the payment | ||||||
11 | of principal and interest on the investments made with the | ||||||
12 | Office of the Comptroller by the State Treasurer under this | ||||||
13 | paragraph, and the irrevocable and continuing authority for and | ||||||
14 | direction to the Comptroller and Treasurer to make the | ||||||
15 | necessary transfers. | ||||||
16 | The State Treasurer may, with the approval of the Governor, | ||||||
17 | invest or
reinvest any State money in the Treasury that is not | ||||||
18 | needed for current
expenditure, due or about to become due, or | ||||||
19 | any money in the State Treasury
that has been set aside and | ||||||
20 | held for the payment of the principal of and
the interest on | ||||||
21 | any State bonds, in any of the following:
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22 | (1) Bonds, notes, certificates of indebtedness, | ||||||
23 | Treasury bills, or other
securities now or hereafter issued | ||||||
24 | that are guaranteed by the full faith
and credit of the | ||||||
25 | United States of America as to principal and interest.
| ||||||
26 | (2) Bonds, notes, debentures, or other similar |
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1 | obligations of the United
States of America, its agencies, | ||||||
2 | and instrumentalities.
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3 | (2.5) Bonds, notes, debentures, or other similar | ||||||
4 | obligations of a
foreign government, other than the | ||||||
5 | Republic of the Sudan, that are guaranteed by the full | ||||||
6 | faith and credit of that
government as to principal and | ||||||
7 | interest, but only if the foreign government
has not | ||||||
8 | defaulted and has met its payment obligations in a timely | ||||||
9 | manner on
all similar obligations for a period of at least | ||||||
10 | 25 years immediately before
the time of acquiring those | ||||||
11 | obligations.
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12 | (3) Interest-bearing savings accounts, | ||||||
13 | interest-bearing certificates of
deposit, interest-bearing | ||||||
14 | time deposits, or any other investments
constituting | ||||||
15 | direct obligations of any bank as defined by the Illinois
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16 | Banking Act.
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17 | (4) Interest-bearing accounts, certificates of | ||||||
18 | deposit, or any other
investments constituting direct | ||||||
19 | obligations of any savings and loan
associations | ||||||
20 | incorporated under the laws of this State or any other | ||||||
21 | state or
under the laws of the United States.
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22 | (5) Dividend-bearing share accounts, share certificate | ||||||
23 | accounts, or
class of share accounts of a credit union | ||||||
24 | chartered under the laws of this
State or the laws of the | ||||||
25 | United States; provided, however, the principal
office of | ||||||
26 | the credit union must be located within the State of |
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1 | Illinois.
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2 | (6) Bankers' acceptances of banks whose senior | ||||||
3 | obligations are rated in
the top 2 rating categories by 2 | ||||||
4 | national rating agencies and maintain that
rating during | ||||||
5 | the term of the investment.
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6 | (7) Short-term obligations of either corporations or | ||||||
7 | limited liability companies organized in the United
States | ||||||
8 | with assets exceeding $500,000,000 if (i) the obligations | ||||||
9 | are rated
at the time of purchase at one of the 3 highest | ||||||
10 | classifications established
by at least 2 standard rating | ||||||
11 | services and mature not later than 270
days from the date | ||||||
12 | of purchase, (ii) the purchases do not exceed 10% of
the | ||||||
13 | corporation's or the limited liability company's | ||||||
14 | outstanding obligations, (iii) no more than one-third of
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15 | the public agency's funds are invested in short-term | ||||||
16 | obligations of
either corporations or limited liability | ||||||
17 | companies, and (iv) the corporation or the limited | ||||||
18 | liability company has not been placed on the list of | ||||||
19 | restricted companies by the Illinois Investment Policy | ||||||
20 | Board under Section 1-110.16 of the Illinois Pension Code.
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21 | (7.5) Obligations of either corporations or limited | ||||||
22 | liability companies organized in the United States, that | ||||||
23 | have a significant presence in this State, with assets | ||||||
24 | exceeding $500,000,000 if: (i) the obligations are rated at | ||||||
25 | the time of purchase at one of the 3 highest | ||||||
26 | classifications established by at least 2 standard rating |
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1 | services and mature more than 270 days, but less than 10 5 | ||||||
2 | years, from the date of purchase; (ii) the purchases do not | ||||||
3 | exceed 10% of the corporation's or the limited liability | ||||||
4 | company's outstanding obligations; (iii) no more than | ||||||
5 | one-third 5% of the public agency's funds are invested in | ||||||
6 | such obligations of corporations or limited liability | ||||||
7 | companies; and (iv) the corporation or the limited | ||||||
8 | liability company has not been placed on the list of | ||||||
9 | restricted companies by the Illinois Investment Policy | ||||||
10 | Board under Section 1-110.16 of the Illinois Pension Code. | ||||||
11 | The authorization of the Treasurer to invest in new | ||||||
12 | obligations under this paragraph shall expire on June 30, | ||||||
13 | 2019. | ||||||
14 | (8) Money market mutual funds registered under the | ||||||
15 | Investment Company
Act of 1940 , provided that the portfolio | ||||||
16 | of the money market mutual fund is
limited to obligations | ||||||
17 | described in this Section and to agreements to
repurchase | ||||||
18 | such obligations .
| ||||||
19 | (9) The Public Treasurers' Investment Pool created | ||||||
20 | under Section 17 of
the State Treasurer Act or in a fund | ||||||
21 | managed, operated, and administered by
a bank.
| ||||||
22 | (10) Repurchase agreements of government securities | ||||||
23 | having the meaning
set out in the Government Securities Act | ||||||
24 | of 1986, as now or hereafter amended or succeeded, subject | ||||||
25 | to the provisions
of that Act and the regulations issued | ||||||
26 | thereunder.
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1 | (11) Investments made in accordance with the | ||||||
2 | Technology Development
Act.
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3 | For purposes of this Section, "agencies" of the United | ||||||
4 | States
Government includes:
| ||||||
5 | (i) the federal land banks, federal intermediate | ||||||
6 | credit banks, banks for
cooperatives, federal farm credit | ||||||
7 | banks, or any other entity authorized
to issue debt | ||||||
8 | obligations under the Farm Credit Act of 1971 (12 U.S.C. | ||||||
9 | 2001
et seq.) and Acts amendatory thereto;
| ||||||
10 | (ii) the federal home loan banks and the federal home | ||||||
11 | loan
mortgage corporation;
| ||||||
12 | (iii) the Commodity Credit Corporation; and
| ||||||
13 | (iv) any other agency created by Act of Congress.
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14 | The Treasurer may, with the approval of the Governor, lend | ||||||
15 | any securities
acquired under this Act. However, securities may | ||||||
16 | be lent under this Section
only in accordance with Federal | ||||||
17 | Financial Institution Examination Council
guidelines and only | ||||||
18 | if the securities are collateralized at a level sufficient
to | ||||||
19 | assure the safety of the securities, taking into account market | ||||||
20 | value
fluctuation. The securities may be collateralized by cash | ||||||
21 | or collateral
acceptable under Sections 11 and 11.1.
| ||||||
22 | (Source: P.A. 99-856, eff. 8-19-16; 100-1107, eff. 8-27-18; | ||||||
23 | revised 9-27-18.)
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24 | Section 99. Effective date. This Act takes effect upon | ||||||
25 | becoming law.
|