(40 ILCS 5/8-201.1) (from Ch. 108 1/2, par. 8-201.1)
Sec. 8-201.1.
The Board may lend securities owned by the Fund to a borrower
upon such terms and conditions as may be mutually agreed in writing. 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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