Full Text of HB2636 99th General Assembly
HB2636 99TH GENERAL ASSEMBLY |
| | 99TH GENERAL ASSEMBLY
State of Illinois
2015 and 2016 HB2636 Introduced , by Rep. Ron Sandack SYNOPSIS AS INTRODUCED: |
| 15 ILCS 520/5 | from Ch. 130, par. 24 | 15 ILCS 520/16.3 | | 15 ILCS 520/22.5 | from Ch. 130, par. 41a | 30 ILCS 235/8 | |
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Amends the Deposit of State Moneys Act. Makes various changes throughout the Act providing that nothing shall be construed as requiring a financial institution to provide a product or service in this State that the financial institution does not otherwise provide in this State. Makes a similar change in the Public Funds Investment Act. Effective immediately.
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| | A BILL FOR |
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| 1 | | AN ACT concerning finance.
| 2 | | Be it enacted by the People of the State of Illinois,
| 3 | | represented in the General Assembly:
| 4 | | Section 5. The Deposit of State Moneys Act is amended by | 5 | | changing Sections 5, 16.3, and 22.5 as follows:
| 6 | | (15 ILCS 520/5) (from Ch. 130, par. 24)
| 7 | | Sec. 5.
Each proposal shall state the amount of deposits | 8 | | sought by such
proposals and the rate of interest such bank or | 9 | | savings and loan association
will pay on daily balances.
Each | 10 | | proposal shall be enclosed in a sealed envelope bearing the | 11 | | name of
the bank or savings and loan association and labeled, | 12 | | "proposal for
deposit of State moneys".
| 13 | | Each proposal shall also include a commitment on the part
| 14 | | of the bidding bank or savings and loan association, executed | 15 | | by its
president, in the following
form , provided that nothing | 16 | | in this form shall be construed as requiring a financial | 17 | | institution to provide a product or service in this State that | 18 | | the financial institution does not otherwise provide in this | 19 | | State :
| 20 | | The ............. (name of bank or savings and loan | 21 | | association)
pledges not to reject
arbitrarily mortgage loans | 22 | | for residential properties
within any specific part of the | 23 | | community served by this depository
because of the location of |
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| 1 | | the property. This depository
also pledges to make loans | 2 | | available on low and moderate income
residential property | 3 | | throughout the community within the limits
of its legal | 4 | | restrictions and prudent financial practices.
| 5 | | (Source: P.A. 83-541.)
| 6 | | (15 ILCS 520/16.3)
| 7 | | Sec. 16.3.
Consideration of financial institution's | 8 | | commitment to its
community.
| 9 | | (a) In addition to any other
requirements of this Act, the | 10 | | State Treasurer is authorized to consider the
financial
| 11 | | institution's record and current level of financial commitment | 12 | | to its local
community when deciding whether to deposit State | 13 | | funds in that financial
institution. The State Treasurer may | 14 | | consider factors including, but not
necessarily limited to:
| 15 | | (1) for financial institutions subject to the federal | 16 | | Community
Reinvestment Act of
1977, the current and | 17 | | historical ratings that the
financial institution has | 18 | | received, to the extent that those ratings are
publicly | 19 | | available, under the federal Community Reinvestment Act of | 20 | | 1977;
| 21 | | (2) any changes in ownership, management, policies, or | 22 | | practices of the
financial
institution that may affect the | 23 | | level of the financial institution's commitment
to its | 24 | | community;
| 25 | | (3) the financial impact that the withdrawal or denial |
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| 1 | | of
deposits of State funds might have on the financial | 2 | | institution; and
| 3 | | (4) the
financial impact to the State as a result of | 4 | | withdrawing State
funds or refusing to deposit additional | 5 | | State funds in the
financial institution.
| 6 | | (b) Nothing in this Section shall be construed as | 7 | | authorizing the State
Treasurer to conduct an examination or | 8 | | investigation of a financial institution
or to receive | 9 | | information that is not publicly available and the disclosure | 10 | | of
which is otherwise prohibited by law or to require a | 11 | | financial institution to provide a product or service in this | 12 | | State that the financial institution does not otherwise provide | 13 | | in this State .
| 14 | | (Source: P.A. 93-251, eff. 7-1-04 .)
| 15 | | (15 ILCS 520/22.5) (from Ch. 130, par. 41a)
| 16 | | (For force and effect of certain provisions, see Section 90 | 17 | | of P.A. 94-79) | 18 | | Sec. 22.5. Permitted investments. The State Treasurer may, | 19 | | with the
approval of the Governor, invest and reinvest any | 20 | | State money in the treasury
which is not needed for current | 21 | | expenditures due or about to become due, in
obligations of the | 22 | | United States government or its agencies or of National
| 23 | | Mortgage Associations established by or under the National | 24 | | Housing Act, 1201
U.S.C. 1701 et seq., or
in mortgage | 25 | | participation certificates representing undivided interests in
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| 1 | | specified, first-lien conventional residential Illinois | 2 | | mortgages that are
underwritten, insured, guaranteed, or | 3 | | purchased by the Federal Home Loan
Mortgage Corporation or in | 4 | | Affordable Housing Program Trust Fund Bonds or
Notes as defined | 5 | | in and issued pursuant to the Illinois Housing Development
Act. | 6 | | All such obligations shall be considered as cash and may
be | 7 | | delivered over as cash by a State Treasurer to his successor.
| 8 | | The State Treasurer may, with the approval of the Governor, | 9 | | purchase
any state bonds with any money in the State Treasury | 10 | | that has been set
aside and held for the payment of the | 11 | | principal of and interest on the
bonds. The bonds shall be | 12 | | considered as cash and may be delivered over
as cash by the | 13 | | State Treasurer to his successor.
| 14 | | The State Treasurer may, with the approval of the Governor, | 15 | | invest or
reinvest any State money in the treasury that is not | 16 | | needed for
current expenditure due or about to become due, or | 17 | | any money in the
State Treasury that has been set aside and | 18 | | held for the payment of the
principal of and the interest on | 19 | | any State bonds, in shares,
withdrawable accounts, and | 20 | | investment certificates of savings and
building and loan | 21 | | associations, incorporated under the laws of this
State or any | 22 | | other state or under the laws of the United States;
provided, | 23 | | however, that investments may be made only in those savings
and | 24 | | loan or building and loan associations the shares and | 25 | | withdrawable
accounts or other forms of investment securities | 26 | | of which are insured
by the Federal Deposit Insurance |
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| 1 | | Corporation.
| 2 | | The State Treasurer may not invest State money in any | 3 | | savings and
loan or building and loan association unless a | 4 | | commitment by the savings
and loan (or building and loan) | 5 | | association, executed by the president
or chief executive | 6 | | officer of that association, is submitted in the
following | 7 | | form , provided that nothing in this form shall be construed as | 8 | | requiring a financial institution to provide a product or | 9 | | service in this State that the financial institution does not | 10 | | otherwise provide in this State :
| 11 | | The .................. Savings and Loan (or Building | 12 | | and Loan)
Association pledges not to reject arbitrarily | 13 | | mortgage loans for
residential properties within any | 14 | | specific part of the community served
by the savings and | 15 | | loan (or building and loan) association because of
the | 16 | | location of the property. The savings and loan (or building | 17 | | and
loan) association also pledges to make loans available | 18 | | on low and
moderate income residential property throughout | 19 | | the community within
the limits of its legal restrictions | 20 | | and prudent financial practices.
| 21 | | The State Treasurer may, with the approval of the Governor, | 22 | | invest or
reinvest, at a price not to exceed par, any State | 23 | | money in the treasury
that is not needed for current | 24 | | expenditures due or about to become
due, or any money in the | 25 | | State Treasury that has been set aside and
held for the payment | 26 | | of the principal of and interest on any State
bonds, in bonds |
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| 1 | | issued by counties or municipal corporations of the
State of | 2 | | Illinois.
| 3 | | The State Treasurer may, with the approval of the Governor, | 4 | | invest or
reinvest any State money in the Treasury which is not | 5 | | needed for current
expenditure, due or about to become due, or | 6 | | any money in the State Treasury
which has been set aside and | 7 | | held for the payment of the principal of and
the interest on | 8 | | any State bonds, in participations in loans, the principal
of | 9 | | which participation is fully guaranteed by an agency or | 10 | | instrumentality
of the United States government; provided, | 11 | | however, that such loan
participations are represented by | 12 | | certificates issued only by banks which
are incorporated under | 13 | | the laws of this State or any other state
or under the laws of | 14 | | the United States, and such banks, but not
the loan | 15 | | participation certificates, are insured by the Federal Deposit
| 16 | | Insurance Corporation.
| 17 | | The State Treasurer may, with the approval of the Governor, | 18 | | invest or
reinvest any State money in the Treasury that is not | 19 | | needed for current
expenditure, due or about to become due, or | 20 | | any money in the State Treasury
that has been set aside and | 21 | | held for the payment of the principal of and
the interest on | 22 | | any State bonds, in any of the following:
| 23 | | (1) Bonds, notes, certificates of indebtedness, | 24 | | Treasury bills, or other
securities now or hereafter issued | 25 | | that are guaranteed by the full faith
and credit of the | 26 | | United States of America as to principal and interest.
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| 1 | | (2) Bonds, notes, debentures, or other similar | 2 | | obligations of the United
States of America, its agencies, | 3 | | and instrumentalities.
| 4 | | (2.5) Bonds, notes, debentures, or other similar | 5 | | obligations of a
foreign government, other than the | 6 | | Republic of the Sudan, that are guaranteed by the full | 7 | | faith and credit of that
government as to principal and | 8 | | interest, but only if the foreign government
has not | 9 | | defaulted and has met its payment obligations in a timely | 10 | | manner on
all similar obligations for a period of at least | 11 | | 25 years immediately before
the time of acquiring those | 12 | | obligations.
| 13 | | (3) Interest-bearing savings accounts, | 14 | | interest-bearing certificates of
deposit, interest-bearing | 15 | | time deposits, or any other investments
constituting | 16 | | direct obligations of any bank as defined by the Illinois
| 17 | | Banking Act.
| 18 | | (4) Interest-bearing accounts, certificates of | 19 | | deposit, or any other
investments constituting direct | 20 | | obligations of any savings and loan
associations | 21 | | incorporated under the laws of this State or any other | 22 | | state or
under the laws of the United States.
| 23 | | (5) Dividend-bearing share accounts, share certificate | 24 | | accounts, or
class of share accounts of a credit union | 25 | | chartered under the laws of this
State or the laws of the | 26 | | United States; provided, however, the principal
office of |
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| 1 | | the credit union must be located within the State of | 2 | | Illinois.
| 3 | | (6) Bankers' acceptances of banks whose senior | 4 | | obligations are rated in
the top 2 rating categories by 2 | 5 | | national rating agencies and maintain that
rating during | 6 | | the term of the investment.
| 7 | | (7) Short-term obligations of either corporations or | 8 | | limited liability companies organized in the United
States | 9 | | with assets exceeding $500,000,000 if (i) the obligations | 10 | | are rated
at the time of purchase at one of the 3 highest | 11 | | classifications established
by at least 2 standard rating | 12 | | services and mature not later than 270
days from the date | 13 | | of purchase, (ii) the purchases do not exceed 10% of
the | 14 | | corporation's or the limited liability company's | 15 | | outstanding obligations, (iii) no more than one-third of
| 16 | | the public agency's funds are invested in short-term | 17 | | obligations of
either corporations or limited liability | 18 | | companies, and (iv) the corporation or the limited | 19 | | liability company has not been identified as a forbidden | 20 | | entity, as that term is defined in Section 1-110.6 of the | 21 | | Illinois Pension Code, by an independent researching firm | 22 | | that specializes in global security risk that has been | 23 | | engaged by the State Treasurer.
| 24 | | (8) Money market mutual funds registered under the | 25 | | Investment Company
Act of 1940, provided that the portfolio | 26 | | of the money market mutual fund is
limited to obligations |
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| 1 | | described in this Section and to agreements to
repurchase | 2 | | such obligations.
| 3 | | (9) The Public Treasurers' Investment Pool created | 4 | | under Section 17 of
the State Treasurer Act or in a fund | 5 | | managed, operated, and administered by
a bank.
| 6 | | (10) Repurchase agreements of government securities | 7 | | having the meaning
set out in the Government Securities Act | 8 | | of 1986, as now or hereafter amended or succeeded, subject | 9 | | to the provisions
of that Act and the regulations issued | 10 | | thereunder.
| 11 | | (11) Investments made in accordance with the | 12 | | Technology Development
Act.
| 13 | | For purposes of this Section, "agencies" of the United | 14 | | States
Government includes:
| 15 | | (i) the federal land banks, federal intermediate | 16 | | credit banks, banks for
cooperatives, federal farm credit | 17 | | banks, or any other entity authorized
to issue debt | 18 | | obligations under the Farm Credit Act of 1971 (12 U.S.C. | 19 | | 2001
et seq.) and Acts amendatory thereto;
| 20 | | (ii) the federal home loan banks and the federal home | 21 | | loan
mortgage corporation;
| 22 | | (iii) the Commodity Credit Corporation; and
| 23 | | (iv) any other agency created by Act of Congress.
| 24 | | The Treasurer may, with the approval of the Governor, lend | 25 | | any securities
acquired under this Act. However, securities may | 26 | | be lent under this Section
only in accordance with Federal |
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| 1 | | Financial Institution Examination Council
guidelines and only | 2 | | if the securities are collateralized at a level sufficient
to | 3 | | assure the safety of the securities, taking into account market | 4 | | value
fluctuation. The securities may be collateralized by cash | 5 | | or collateral
acceptable under Sections 11 and 11.1.
| 6 | | (Source: P.A. 96-469, eff. 8-14-09; 96-795, eff. 7-1-10 (see | 7 | | Section 5 of P.A. 96-793 for the effective date of changes made | 8 | | by P.A. 96-795); 96-870, eff. 1-21-10; 97-277, eff. 8-8-11.)
| 9 | | Section 10. The Public Funds Investment Act is amended by | 10 | | changing Section 8 as follows:
| 11 | | (30 ILCS 235/8)
| 12 | | Sec. 8.
Consideration of financial institution's | 13 | | commitment to its
community.
| 14 | | (a) In addition to any
other requirements of this Act, a | 15 | | public agency is authorized to consider the
financial | 16 | | institution's record and current level of financial commitment | 17 | | to its
local community when deciding whether to deposit public | 18 | | funds in that
financial institution. The public agency may | 19 | | consider factors including, but
not necessarily limited to:
| 20 | | (1) for financial institutions subject to the federal | 21 | | Community
Reinvestment Act of 1977, the current and | 22 | | historical ratings that the
financial institution has | 23 | | received, to the extent that those ratings are
publicly | 24 | | available, under the federal Community Reinvestment Act
of |
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| 1 | | 1977;
| 2 | | (2) any changes in ownership, management, policies, or | 3 | | practices of
the
financial institution that may affect the | 4 | | level of the financial institution's
commitment to its | 5 | | community;
| 6 | | (3) the financial impact that the withdrawal or
denial | 7 | | of deposits of public funds might have on the financial | 8 | | institution;
| 9 | | (4) the financial impact to the public agency as a | 10 | | result of withdrawing
public
funds or refusing to deposit | 11 | | additional public funds in the financial
institution; and
| 12 | | (5) any
additional burden on the resources of the | 13 | | public agency that might result from
ceasing to maintain | 14 | | deposits of public funds at the financial institution under
| 15 | | consideration.
| 16 | | (b) Nothing in this Section shall be construed as | 17 | | authorizing the public
agency to conduct an examination or | 18 | | investigation of a financial institution or
to receive | 19 | | information that is not publicly available and the disclosure | 20 | | of
which is otherwise prohibited by law or to require a | 21 | | financial institution to provide a product or service in this | 22 | | State that the financial institution does not otherwise provide | 23 | | in this State .
| 24 | | (Source: P.A. 93-251, eff. 7-1-04 .)
| 25 | | Section 99. Effective date. This Act takes effect upon | 26 | | becoming law.
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