(40 ILCS 5/9-194.1) (from Ch. 108 1/2, par. 9-194.1)
Sec. 9-194.1.
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, or 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 increased
market value of the securities.
The period for which the securities may be loaned may not exceed one
year, and the loan agreement may specify earlier termination by either party
upon mutually agreed conditions.
(Source: P.A. 87-794.)
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