Full Text of SB2864 99th General Assembly
SB2864eng 99TH GENERAL ASSEMBLY |
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| 1 | | AN ACT concerning State government.
| 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 18 and 22.5 as follows:
| 6 | | (15 ILCS 520/18) (from Ch. 130, par. 37)
| 7 | | Sec. 18.
The State Treasurer shall make a monthly report to | 8 | | the Governor
giving a detailed statement of the balances on | 9 | | deposit in the several
banks or savings and loan associations, | 10 | | and the amount paid by each
such bank or savings and loan | 11 | | association as interest on moneys so
deposited. Such statement | 12 | | shall contain the name of each bank or savings
and loan | 13 | | association, and the
amount in such bank or savings and loan | 14 | | association subject to draft
at the close of business on the | 15 | | last
day of the month for which the report is made, and on the | 16 | | last day of the
month next preceding. A copy of such report | 17 | | shall be retained by the
Treasurer and shall be made available | 18 | | for inspection by the public at any
reasonable time. The | 19 | | Treasurer may satisfy the requirements of this Section by | 20 | | posting the monthly report on the Treasurer's official Internet | 21 | | website.
| 22 | | (Source: P.A. 83-541.)
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| 1 | | (15 ILCS 520/22.5) (from Ch. 130, par. 41a)
| 2 | | (For force and effect of certain provisions, see Section 90 | 3 | | of P.A. 94-79) | 4 | | Sec. 22.5. Permitted investments. The State Treasurer may, | 5 | | with the
approval of the Governor, invest and reinvest any | 6 | | State money in the treasury
which is not needed for current | 7 | | expenditures due or about to become due, in
obligations of the | 8 | | United States government or its agencies or of National
| 9 | | Mortgage Associations established by or under the National | 10 | | Housing Act, 1201
U.S.C. 1701 et seq., or
in mortgage | 11 | | participation certificates representing undivided interests in
| 12 | | specified, first-lien conventional residential Illinois | 13 | | mortgages that are
underwritten, insured, guaranteed, or | 14 | | purchased by the Federal Home Loan
Mortgage Corporation or in | 15 | | Affordable Housing Program Trust Fund Bonds or
Notes as defined | 16 | | in and issued pursuant to the Illinois Housing Development
Act. | 17 | | All such obligations shall be considered as cash and may
be | 18 | | delivered over as cash by a State Treasurer to his successor.
| 19 | | The State Treasurer may, with the approval of the Governor, | 20 | | purchase
any state bonds with any money in the State Treasury | 21 | | that has been set
aside and held for the payment of the | 22 | | principal of and interest on the
bonds. The bonds shall be | 23 | | considered as cash and may be delivered over
as cash by the | 24 | | State Treasurer to his successor.
| 25 | | The State Treasurer may, with the approval of the Governor, | 26 | | invest or
reinvest any State money in the treasury that 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 that has been set aside and | 3 | | held for the payment of the
principal of and the interest on | 4 | | any State bonds, in shares,
withdrawable accounts, and | 5 | | investment certificates of savings and
building and loan | 6 | | associations, incorporated under the laws of this
State or any | 7 | | other state or under the laws of the United States;
provided, | 8 | | however, that investments may be made only in those savings
and | 9 | | loan or building and loan associations the shares and | 10 | | withdrawable
accounts or other forms of investment securities | 11 | | of which are insured
by the Federal Deposit Insurance | 12 | | Corporation.
| 13 | | The State Treasurer may not invest State money in any | 14 | | savings and
loan or building and loan association unless a | 15 | | commitment by the savings
and loan (or building and loan) | 16 | | association, executed by the president
or chief executive | 17 | | officer of that association, is submitted in the
following | 18 | | form:
| 19 | | The .................. Savings and Loan (or Building | 20 | | and Loan)
Association pledges not to reject arbitrarily | 21 | | mortgage loans for
residential properties within any | 22 | | specific part of the community served
by the savings and | 23 | | loan (or building and loan) association because of
the | 24 | | location of the property. The savings and loan (or building | 25 | | and
loan) association also pledges to make loans available | 26 | | on low and
moderate income residential property throughout |
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| 1 | | the community within
the limits of its legal restrictions | 2 | | and prudent financial practices.
| 3 | | The State Treasurer may, with the approval of the Governor, | 4 | | invest or
reinvest , at a price not to exceed par, any State | 5 | | money in the treasury
that is not needed for current | 6 | | expenditures due or about to become
due, or any money in the | 7 | | State Treasury that has been set aside and
held for the payment | 8 | | of the principal of and interest on any State
bonds, in bonds | 9 | | issued by counties or municipal corporations of the
State of | 10 | | Illinois.
| 11 | | The State Treasurer may, with the approval of the Governor, | 12 | | invest or
reinvest any State money in the Treasury which is not | 13 | | needed for current
expenditure, due or about to become due, or | 14 | | any money in the State Treasury
which has been set aside and | 15 | | held for the payment of the principal of and
the interest on | 16 | | any State bonds, in participations in loans, the principal
of | 17 | | which participation is fully guaranteed by an agency or | 18 | | instrumentality
of the United States government; provided, | 19 | | however, that such loan
participations are represented by | 20 | | certificates issued only by banks which
are incorporated under | 21 | | the laws of this State or any other state
or under the laws of | 22 | | the United States, and such banks, but not
the loan | 23 | | participation certificates, are insured by the Federal Deposit
| 24 | | Insurance Corporation.
| 25 | | The State Treasurer may, with the approval of the Governor, | 26 | | invest or
reinvest any State money in the Treasury that 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
that has been set aside and | 3 | | held for the payment of the principal of and
the interest on | 4 | | any State bonds, in any of the following:
| 5 | | (1) Bonds, notes, certificates of indebtedness, | 6 | | Treasury bills, or other
securities now or hereafter issued | 7 | | that are guaranteed by the full faith
and credit of the | 8 | | United States of America as to principal and interest.
| 9 | | (2) Bonds, notes, debentures, or other similar | 10 | | obligations of the United
States of America, its agencies, | 11 | | and instrumentalities.
| 12 | | (2.5) Bonds, notes, debentures, or other similar | 13 | | obligations of a
foreign government, other than the | 14 | | Republic of the Sudan, that are guaranteed by the full | 15 | | faith and credit of that
government as to principal and | 16 | | interest, but only if the foreign government
has not | 17 | | defaulted and has met its payment obligations in a timely | 18 | | manner on
all similar obligations for a period of at least | 19 | | 25 years immediately before
the time of acquiring those | 20 | | obligations.
| 21 | | (3) Interest-bearing savings accounts, | 22 | | interest-bearing certificates of
deposit, interest-bearing | 23 | | time deposits, or any other investments
constituting | 24 | | direct obligations of any bank as defined by the Illinois
| 25 | | Banking Act.
| 26 | | (4) Interest-bearing accounts, certificates of |
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| 1 | | deposit, or any other
investments constituting direct | 2 | | obligations of any savings and loan
associations | 3 | | incorporated under the laws of this State or any other | 4 | | state or
under the laws of the United States.
| 5 | | (5) Dividend-bearing share accounts, share certificate | 6 | | accounts, or
class of share accounts of a credit union | 7 | | chartered under the laws of this
State or the laws of the | 8 | | United States; provided, however, the principal
office of | 9 | | the credit union must be located within the State of | 10 | | Illinois.
| 11 | | (6) Bankers' acceptances of banks whose senior | 12 | | obligations are rated in
the top 2 rating categories by 2 | 13 | | national rating agencies and maintain that
rating during | 14 | | the term of the investment.
| 15 | | (7) Obligations Short-term obligations of either | 16 | | corporations or limited liability companies organized in | 17 | | the United
States , that have a significant presence in this | 18 | | State, with assets exceeding $500,000,000 if (i) the | 19 | | obligations are rated
at the time of purchase at one of the | 20 | | 3 highest classifications established
by at least 2 | 21 | | standard rating services and mature not later than 5 years | 22 | | 270
days from the date of purchase, (ii) the purchases do | 23 | | not exceed 10% of
the corporation's or the limited | 24 | | liability company's outstanding obligations, (iii) no more | 25 | | than one-third of
the public agency's funds are invested in | 26 | | short-term obligations of
either corporations or limited |
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| 1 | | liability companies, and (iv) the corporation or the | 2 | | limited liability company has not been identified as a | 3 | | forbidden entity, as that term is defined in Section | 4 | | 1-110.6 of the Illinois Pension Code, by an independent | 5 | | researching firm that specializes in global security risk | 6 | | that has been engaged by the State Treasurer.
| 7 | | (8) Money market mutual funds registered under the | 8 | | Investment Company
Act of 1940, provided that the portfolio | 9 | | of the money market mutual fund is
limited to obligations | 10 | | described in this Section and to agreements to
repurchase | 11 | | such obligations.
| 12 | | (9) The Public Treasurers' Investment Pool created | 13 | | under Section 17 of
the State Treasurer Act or in a fund | 14 | | managed, operated, and administered by
a bank.
| 15 | | (10) Repurchase agreements of government securities | 16 | | having the meaning
set out in the Government Securities Act | 17 | | of 1986, as now or hereafter amended or succeeded, subject | 18 | | to the provisions
of that Act and the regulations issued | 19 | | thereunder.
| 20 | | (11) Investments made in accordance with the | 21 | | Technology Development
Act.
| 22 | | For purposes of this Section, "agencies" of the United | 23 | | States
Government includes:
| 24 | | (i) the federal land banks, federal intermediate | 25 | | credit banks, banks for
cooperatives, federal farm credit | 26 | | banks, or any other entity authorized
to issue debt |
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| 1 | | obligations under the Farm Credit Act of 1971 (12 U.S.C. | 2 | | 2001
et seq.) and Acts amendatory thereto;
| 3 | | (ii) the federal home loan banks and the federal home | 4 | | loan
mortgage corporation;
| 5 | | (iii) the Commodity Credit Corporation; and
| 6 | | (iv) any other agency created by Act of Congress.
| 7 | | The Treasurer may, with the approval of the Governor, lend | 8 | | any securities
acquired under this Act. However, securities may | 9 | | be lent under this Section
only in accordance with Federal | 10 | | Financial Institution Examination Council
guidelines and only | 11 | | if the securities are collateralized at a level sufficient
to | 12 | | assure the safety of the securities, taking into account market | 13 | | value
fluctuation. The securities may be collateralized by cash | 14 | | or collateral
acceptable under Sections 11 and 11.1.
| 15 | | (Source: P.A. 96-469, eff. 8-14-09; 96-795, eff. 7-1-10 (see | 16 | | Section 5 of P.A. 96-793 for the effective date of changes made | 17 | | by P.A. 96-795); 96-870, eff. 1-21-10; 97-277, eff. 8-8-11.)
| 18 | | Section 99. Effective date. This Act takes effect upon | 19 | | becoming law.
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