(40 ILCS 5/12-166.2) (from Ch. 108 1/2, par. 12-166.2)
Sec. 12-166.2.
To lend securities.
The Board may lend securities owned
by the Fund to a borrower upon such terms and conditions as may be mutually
agreed in writing. The agreement shall provide that during the period of
the loan the Fund shall retain the right to receive, or collect from the
borrower, all dividends, interest rights, and any distributions to which
the Fund would have otherwise been entitled. The borrower shall deposit
with the Fund as collateral for the 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 requests an additional amount because of subsequent increases
in the 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. 87-1265.)
|