Full Text of SB2858 100th General Assembly
SB2858enr 100TH 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 Section 22.5 as follows:
| 6 | | (15 ILCS 520/22.5) (from Ch. 130, par. 41a)
| 7 | | (For force and effect of certain provisions, see Section 90 | 8 | | of P.A. 94-79) | 9 | | Sec. 22.5. Permitted investments. The State Treasurer may, | 10 | | with the
approval of the Governor, invest and reinvest any | 11 | | State money in the treasury
which is not needed for current | 12 | | expenditures due or about to become due, in
obligations of the | 13 | | United States government or its agencies or of National
| 14 | | Mortgage Associations established by or under the National | 15 | | Housing Act, 1201
U.S.C. 1701 et seq., or
in mortgage | 16 | | participation certificates representing undivided interests in
| 17 | | specified, first-lien conventional residential Illinois | 18 | | mortgages that are
underwritten, insured, guaranteed, or | 19 | | purchased by the Federal Home Loan
Mortgage Corporation or in | 20 | | Affordable Housing Program Trust Fund Bonds or
Notes as defined | 21 | | in and issued pursuant to the Illinois Housing Development
Act. | 22 | | All such obligations shall be considered as cash and may
be | 23 | | delivered over as cash by a State Treasurer to his successor.
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| 1 | | The State Treasurer may, with the approval of the Governor, | 2 | | purchase
any state bonds with any money in the State Treasury | 3 | | that has been set
aside and held for the payment of the | 4 | | principal of and interest on the
bonds. The bonds shall be | 5 | | considered as cash and may be delivered over
as cash by the | 6 | | State Treasurer to his successor.
| 7 | | The State Treasurer may, with the approval of the Governor, | 8 | | invest or
reinvest any State money in the treasury that is not | 9 | | needed for
current expenditure due or about to become due, or | 10 | | any money in the
State Treasury that has been set aside and | 11 | | held for the payment of the
principal of and the interest on | 12 | | any State bonds, in shares,
withdrawable accounts, and | 13 | | investment certificates of savings and
building and loan | 14 | | associations, incorporated under the laws of this
State or any | 15 | | other state or under the laws of the United States;
provided, | 16 | | however, that investments may be made only in those savings
and | 17 | | loan or building and loan associations the shares and | 18 | | withdrawable
accounts or other forms of investment securities | 19 | | of which are insured
by the Federal Deposit Insurance | 20 | | Corporation.
| 21 | | The State Treasurer may not invest State money in any | 22 | | savings and
loan or building and loan association unless a | 23 | | commitment by the savings
and loan (or building and loan) | 24 | | association, executed by the president
or chief executive | 25 | | officer of that association, is submitted in the
following | 26 | | form:
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| 1 | | The .................. Savings and Loan (or Building | 2 | | and Loan)
Association pledges not to reject arbitrarily | 3 | | mortgage loans for
residential properties within any | 4 | | specific part of the community served
by the savings and | 5 | | loan (or building and loan) association because of
the | 6 | | location of the property. The savings and loan (or building | 7 | | and
loan) association also pledges to make loans available | 8 | | on low and
moderate income residential property throughout | 9 | | the community within
the limits of its legal restrictions | 10 | | and prudent financial practices.
| 11 | | The State Treasurer may, with the approval of the Governor, | 12 | | invest or
reinvest, at a price not to exceed par, any State | 13 | | money in the treasury
that is not needed for current | 14 | | expenditures due or about to become
due, or any money in the | 15 | | State Treasury that has been set aside and
held for the payment | 16 | | of the principal of and interest on any State
bonds, in bonds | 17 | | issued by counties or municipal corporations of the
State of | 18 | | Illinois.
| 19 | | The State Treasurer may, with the approval of the Governor, | 20 | | invest or
reinvest any State money in the Treasury which is not | 21 | | needed for current
expenditure, due or about to become due, or | 22 | | any money in the State Treasury
which has been set aside and | 23 | | held for the payment of the principal of and
the interest on | 24 | | any State bonds, in participations in loans, the principal
of | 25 | | which participation is fully guaranteed by an agency or | 26 | | instrumentality
of the United States government; provided, |
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| 1 | | however, that such loan
participations are represented by | 2 | | certificates issued only by banks which
are incorporated under | 3 | | the laws of this State or any other state
or under the laws of | 4 | | the United States, and such banks, but not
the loan | 5 | | participation certificates, are insured by the Federal Deposit
| 6 | | Insurance Corporation.
| 7 | | Whenever the total amount of vouchers presented to the | 8 | | Comptroller under Section 9 of the State Comptroller Act | 9 | | exceeds the funds available in the General Revenue Fund by | 10 | | $1,000,000,000 or more, then the State Treasurer may invest any | 11 | | State money in the Treasury, other than money in the General | 12 | | Revenue Fund, Health Insurance Reserve Fund, Attorney General | 13 | | Court Ordered and Voluntary Compliance Payment Projects Fund, | 14 | | Attorney General Whistleblower Reward and Protection Fund, and | 15 | | Attorney General's State Projects and Court Ordered | 16 | | Distribution Fund, which is not needed for current | 17 | | expenditures, due or about to become due, or any money in the | 18 | | State Treasury which has been set aside and held for the | 19 | | payment of the principal of and the interest on any State bonds | 20 | | with the Office of the Comptroller in order to enable the | 21 | | Comptroller to pay outstanding vouchers. At any time, and from | 22 | | time to time outstanding, such investment shall not be greater | 23 | | than $2,000,000,000. Such investment shall be deposited into | 24 | | the General Revenue Fund or Health Insurance Reserve Fund as | 25 | | determined by the Comptroller. Such investment shall be repaid | 26 | | by the Comptroller with an interest rate tied to the London |
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| 1 | | Interbank Offered Rate (LIBOR) or the Federal Funds Rate or an | 2 | | equivalent market established variable rate, but in no case | 3 | | shall such interest rate exceed the lesser of the penalty rate | 4 | | established under the State Prompt Payment Act or the timely | 5 | | pay interest rate under Section 368a of the Illinois Insurance | 6 | | Code. The State Treasurer and the Comptroller shall enter into | 7 | | an intergovernmental agreement to establish procedures for | 8 | | such investments, which market established variable rate to | 9 | | which the interest rate for the investments should be tied, and | 10 | | other terms which the State Treasurer and Comptroller | 11 | | reasonably believe to be mutually beneficial concerning these | 12 | | investments by the State Treasurer. The State Treasurer and | 13 | | Comptroller shall also enter into a written agreement for each | 14 | | such investment that specifies the period of the investment, | 15 | | the payment interval, the interest rate to be paid, the funds | 16 | | in the Treasury from which the Treasurer will draw the | 17 | | investment, and other terms upon which the State Treasurer and | 18 | | Comptroller mutually agree. Such investment agreements shall | 19 | | be public records and the State Treasurer shall post the terms | 20 | | of all such investment agreements on the State Treasurer's | 21 | | official website. In compliance with the intergovernmental | 22 | | agreement, the Comptroller shall order and the State Treasurer | 23 | | shall transfer amounts sufficient for the payment of principal | 24 | | and interest invested by the State Treasurer with the Office of | 25 | | the Comptroller under this paragraph from the General Revenue | 26 | | Fund or the Health Insurance Reserve Fund to the respective |
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| 1 | | funds in the Treasury from which the State Treasurer drew the | 2 | | investment. This amendatory Act of the 100th General Assembly | 3 | | shall constitute an irrevocable and continuing authority for | 4 | | all amounts necessary for the payment of principal and interest | 5 | | on the investments made with the Office of the Comptroller by | 6 | | the State Treasurer under this paragraph, and the irrevocable | 7 | | and continuing authority for and direction to the Comptroller | 8 | | and Treasurer to make the necessary transfers. | 9 | | The State Treasurer may, with the approval of the Governor, | 10 | | invest or
reinvest any State money in the Treasury that is not | 11 | | needed for current
expenditure, due or about to become due, or | 12 | | any money in the State Treasury
that has been set aside and | 13 | | held for the payment of the principal of and
the interest on | 14 | | any State bonds, in any of the following:
| 15 | | (1) Bonds, notes, certificates of indebtedness, | 16 | | Treasury bills, or other
securities now or hereafter issued | 17 | | that are guaranteed by the full faith
and credit of the | 18 | | United States of America as to principal and interest.
| 19 | | (2) Bonds, notes, debentures, or other similar | 20 | | obligations of the United
States of America, its agencies, | 21 | | and instrumentalities.
| 22 | | (2.5) Bonds, notes, debentures, or other similar | 23 | | obligations of a
foreign government, other than the | 24 | | Republic of the Sudan, that are guaranteed by the full | 25 | | faith and credit of that
government as to principal and | 26 | | interest, but only if the foreign government
has not |
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| 1 | | defaulted and has met its payment obligations in a timely | 2 | | manner on
all similar obligations for a period of at least | 3 | | 25 years immediately before
the time of acquiring those | 4 | | obligations.
| 5 | | (3) Interest-bearing savings accounts, | 6 | | interest-bearing certificates of
deposit, interest-bearing | 7 | | time deposits, or any other investments
constituting | 8 | | direct obligations of any bank as defined by the Illinois
| 9 | | Banking Act.
| 10 | | (4) Interest-bearing accounts, certificates of | 11 | | deposit, or any other
investments constituting direct | 12 | | obligations of any savings and loan
associations | 13 | | incorporated under the laws of this State or any other | 14 | | state or
under the laws of the United States.
| 15 | | (5) Dividend-bearing share accounts, share certificate | 16 | | accounts, or
class of share accounts of a credit union | 17 | | chartered under the laws of this
State or the laws of the | 18 | | United States; provided, however, the principal
office of | 19 | | the credit union must be located within the State of | 20 | | Illinois.
| 21 | | (6) Bankers' acceptances of banks whose senior | 22 | | obligations are rated in
the top 2 rating categories by 2 | 23 | | national rating agencies and maintain that
rating during | 24 | | the term of the investment.
| 25 | | (7) Short-term obligations of either corporations or | 26 | | limited liability companies organized in the United
States |
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| 1 | | with assets exceeding $500,000,000 if (i) the obligations | 2 | | are rated
at the time of purchase at one of the 3 highest | 3 | | classifications established
by at least 2 standard rating | 4 | | services and mature not later than 270
days from the date | 5 | | of purchase, (ii) the purchases do not exceed 10% of
the | 6 | | corporation's or the limited liability company's | 7 | | outstanding obligations, (iii) no more than one-third of
| 8 | | the public agency's funds are invested in short-term | 9 | | obligations of
either corporations or limited liability | 10 | | companies, and (iv) the corporation or the limited | 11 | | liability company has not been placed on the list of | 12 | | restricted companies by the Illinois Investment Policy | 13 | | Board under Section 1-110.16 of the Illinois Pension Code.
| 14 | | (7.5) Obligations of either corporations or limited | 15 | | liability companies organized in the United States, that | 16 | | have a significant presence in this State, with assets | 17 | | exceeding $500,000,000 if: (i) the obligations are rated at | 18 | | the time of purchase at one of the 3 highest | 19 | | classifications established by at least 2 standard rating | 20 | | services and mature more than 270 days, but less than 5 | 21 | | years, from the date of purchase; (ii) the purchases do not | 22 | | exceed 10% of the corporation's or the limited liability | 23 | | company's outstanding obligations; (iii) no more than 5% of | 24 | | the public agency's funds are invested in such obligations | 25 | | of corporations or limited liability companies; and (iv) | 26 | | the corporation or the limited liability company has not |
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| 1 | | been placed on the list of restricted companies by the | 2 | | Illinois Investment Policy Board under Section 1-110.16 of | 3 | | the Illinois Pension Code. The authorization of the | 4 | | Treasurer to invest in new obligations under this paragraph | 5 | | shall expire on June 30, 2019. | 6 | | (8) Money market mutual funds registered under the | 7 | | Investment Company
Act of 1940, provided that the portfolio | 8 | | of the money market mutual fund is
limited to obligations | 9 | | described in this Section and to agreements to
repurchase | 10 | | such obligations.
| 11 | | (9) The Public Treasurers' Investment Pool created | 12 | | under Section 17 of
the State Treasurer Act or in a fund | 13 | | managed, operated, and administered by
a bank.
| 14 | | (10) Repurchase agreements of government securities | 15 | | having the meaning
set out in the Government Securities Act | 16 | | of 1986, as now or hereafter amended or succeeded, subject | 17 | | to the provisions
of that Act and the regulations issued | 18 | | thereunder.
| 19 | | (11) Investments made in accordance with the | 20 | | Technology Development
Act.
| 21 | | For purposes of this Section, "agencies" of the United | 22 | | States
Government includes:
| 23 | | (i) the federal land banks, federal intermediate | 24 | | credit banks, banks for
cooperatives, federal farm credit | 25 | | banks, or any other entity authorized
to issue debt | 26 | | obligations under the Farm Credit Act of 1971 (12 U.S.C. |
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| 1 | | 2001
et seq.) and Acts amendatory thereto;
| 2 | | (ii) the federal home loan banks and the federal home | 3 | | loan
mortgage corporation;
| 4 | | (iii) the Commodity Credit Corporation; and
| 5 | | (iv) any other agency created by Act of Congress.
| 6 | | The Treasurer may, with the approval of the Governor, lend | 7 | | any securities
acquired under this Act. However, securities may | 8 | | be lent under this Section
only in accordance with Federal | 9 | | Financial Institution Examination Council
guidelines and only | 10 | | if the securities are collateralized at a level sufficient
to | 11 | | assure the safety of the securities, taking into account market | 12 | | value
fluctuation. The securities may be collateralized by cash | 13 | | or collateral
acceptable under Sections 11 and 11.1.
| 14 | | (Source: P.A. 99-856, eff. 8-19-16.)
| 15 | | Section 99. Effective date. This Act takes effect upon | 16 | | becoming law.
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