(205 ILCS 5/33) (from Ch. 17, par. 341)
Sec. 33.
Marketable investment securities limit.
Any State bank may purchase
for its own account marketable investment securities without regard to any
other liability to the bank of the issuer, maker, obligor, or guarantor of
any
marketable investment securities, but the total amount of
the marketable investment securities of any one issuer, maker or obligor
held by the
bank or for its account at any one time shall not
exceed 20% of its unimpaired capital and unimpaired surplus. As used in this
Section the term "marketable
investment securities" means marketable obligations evidencing indebtedness of
any
person in the form of bonds, notes, or debentures commonly known as investment
securities; obligations identified by certificates of participation in
investments the bank could have invested in directly; and includes
certificates of participation in open end investment companies registered with
the Securities and Exchange Commission pursuant to the Investment Company Act
of 1940 and Securities Act of 1933 commonly referred to as mutual or money
market funds, provided the portfolios of those investment companies consist of
investments that a bank could invest in directly. Marketable investment
securities shall be rated in the top 4 rating categories by national rating
services and designated as "investment grade" or "bank quality investments"
securities. The rating restriction on marketable investment securities does not
apply to securities that are issued by a public agency as defined
in Section 1 of the Public Funds Investment Act.
(Source: P.A. 92-483, eff. 8-23-01.)
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