(40 ILCS 5/11-190.1) (from Ch. 108 1/2, par. 11-190.1)
Sec. 11-190.1.
Loan of securities.
The Board may lend securities
owned by the Fund to a
borrower upon such written terms and conditions as may be mutually agreed.
Such agreement shall provide that during the period of such loan the Fund
shall retain the right to receive, or collect from the borrower, all dividends,
interest rights, or any distributions to which the Fund would have otherwise
been entitled. The borrower shall deposit with the Fund, as collateral
for such loan, cash, U.S. Government securities, or letters of credit
equal to the market value of the securities at the time
the loan is made, and shall increase the amount of collateral if and when
the Fund shall request an additional amount because of subsequent increased
market value of the securities.
The period for which the securities may be loaned shall not exceed one
year, and the loan agreement may specify earlier termination by either party
upon mutually agreed conditions.
(Source: P.A. 86-1488.)
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