(40 ILCS 5/6-183) (from Ch. 108 1/2, par. 6-183)
Sec. 6-183.
To invest the monies of the fund in accordance with the
provisions set forth in Sections 1-109, 1-109.1, 1-109.2, 1-110, 1-111,
1-114 and 1-115 of this Act. Investments made in accordance with Section
1-113 shall be deemed prudent.
The Board may sell any of the securities belonging to the Fund and borrow
money upon such securities as collateral whenever, in its judgment, such
action is necessary to meet the cash requirements of the Fund.
No bank or savings and loan association shall receive investment funds
as permitted by this Section, unless it has complied with the requirements
established pursuant to Section 6 of "An Act relating to certain investments
of public funds by public agencies", approved July 23, 1943, as now or
hereafter amended. The limitations set forth in such Section 6 shall be
applicable only at the time of investment and shall not require the
liquidation of any investment at any time.
The board shall have the authority to enter into such agreements and to
execute such documents as it determines to be necessary to complete any
investment transaction.
All investments shall be clearly held and accounted for to indicate ownership
by the board. The board may direct the registration of securities in its
own name or in the name of a nominee created for the express purpose of
registration of securities by a savings and loan association or national
or State bank or trust company authorized to conduct a trust business
in the State of Illinois.
Investments shall be carried at cost or at a book value in accordance with
accounting procedures approved by the board. No adjustments shall be made
in investment carrying values for ordinary current market price fluctuations;
but reserves may be provided to account for possible losses or unrealized
gains as determined by the board.
The book value of investments held by the pension fund in one or more
commingled investment accounts shall be the cost of its units
of participation in such commingled account or accounts as recorded on the
books of the board.
The board of trustees of any fund established under this Article may not
transfer its investment authority, nor transfer the assets of the fund
to any other person or entity for the purpose of consolidating or merging
its assets and management with any other pension fund or public investment
authority, unless the board resolution authorizing such transfer is submitted
for approval to the contributors and pensioners of the fund at elections
held not less than 30 days after the adoption of such resolution by the
board, and such resolution is approved by a majority of the votes cast on
the question in both the contributors election and the pensioners election.
The election procedures and qualifications governing the election of trustees
shall govern the submission of resolutions for approval under this paragraph,
insofar as they may be made applicable.
(Source: P.A. 86-273.)
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