(15 ILCS 520/7) (from Ch. 130, par. 26)
Sec. 7. (a) State depositories. The State Treasurer may, in his or her discretion, allow a financial institution to become a State depository. To become an approved State depository, a financial institution shall submit an application or proposal, along with all required forms and documentation, in a manner prescribed by the Treasurer.
In order to receive funds under this Section, a financial institution must become a State depository. Prior to allowing a financial institution to become a State depository, the State Treasurer shall consider the financial institution's financial condition and community and economic development efforts. All applications submitted pursuant to this Section will be reviewed in accordance with the terms defined by the program documents and in the respective application and related documents. (b) Linked deposits. The State Treasurer may, in his or her
discretion, accept a proposal or application from a financial institution which provides
for a reduced rate of interest provided that the financial institution uses the deposited funds for the purpose of economic and community development in the State of Illinois, which may include, but not be limited to loans for the following: agriculture, business, individuals, and community development. Financial institutions, and, in some cases borrowers, that utilize linked deposit funds shall provide documentation regarding the use of such funds in a manner prescribed by the Treasurer.
(b-5) (Blank).
(b-10) (Blank).
(b-15) Access to capital. The State Treasurer may, in his or her discretion, accept a proposal or application from a financial institution for access to capital at market rate to provide added liquidity or administer lending activities in the State of Illinois. (c) Home loans. The State Treasurer may, in his or her discretion, accept a proposal or application
from a financial institution that provides for interest earnings on deposits
of State moneys to be held by the financial institution in a separate account that the
State Treasurer may use to secure up to 10% of any (i) home loans to Illinois
citizens purchasing or refinancing a home in Illinois in situations where the participating
financial institution would not offer the borrower a home loan under the financial
institution's prevailing credit standards without the incentive of the 10% guarantee for the first 5 years of the loan, (ii) existing home loans of
Illinois citizens who have failed to make payments on a home loan as a result
of a financial hardship due to circumstances beyond the control of the borrower
where there is a reasonable prospect that the borrower will be able to resume
full mortgage payments, and (iii) loans in amounts that do not exceed the
amount of arrearage on a mortgage and that are extended to enable a borrower
to become current on his or her mortgage obligation.
The following factors shall be considered by the participating financial
institution to determine whether the financial hardship is due to circumstances
beyond the control of the borrower: (i) loss, reduction, or delay in the
receipt of income because of the death or disability of a person who
contributed to the household income, (ii) expenses actually incurred related to
the uninsured damage or costly repairs to the mortgaged premises affecting its
habitability, (iii) expenses related to the death or illness in the borrower's
household or of family members living outside the household that reduce the
amount of household income, (iv) loss of income or a substantial increase in
total housing expenses because of divorce, abandonment, separation from a
spouse, or failure to support a spouse or child, (v) unemployment or
underemployment, (vi) loss, reduction, or delay in the receipt of federal,
State, or other government benefits, and (vii) participation by the homeowner
in a recognized labor action such as a strike. In determining whether there is
a reasonable prospect that the borrower will be able to resume full mortgage
payments, the
participating financial institution shall consider factors including, but not
necessarily limited to the following: (i) a favorable work and credit history,
(ii) the borrower's ability to and history of paying the mortgage when
employed, (iii) the lack of an impediment or disability that prevents
reemployment, (iv) new education and training opportunities, (v) non-cash
benefits that may reduce household expenses, and (vi) other debts.
For the purposes of this Section, "home loan" means a loan, other than an
open-end credit plan or a reverse mortgage transaction, for which (i) the
principal amount of the loan does not exceed the conforming loan size
limit as established from time to time by the
Federal National Mortgage Association, (ii) the borrower is a natural person,
(iii) the debt is incurred by the borrower primarily for personal, family, or
household purposes, and (iv) the loan is secured by a mortgage or deed of trust
on real estate upon which there is located or there is to be located a
structure designed principally for the occupancy of no more than 4
families and that is or
will be occupied by the borrower as the borrower's principal dwelling.
(d) If there is an
agreement between the State Treasurer and an eligible institution that details
the use of deposited funds, the agreement may not require the gift of money,
goods, or services to a third party; this provision does not restrict the
eligible institution from contracting with third parties in order to carry out
the intent of the agreement or restrict the State Treasurer from placing
requirements upon third-party contracts entered into by the eligible
institution.
(Source: P.A. 102-297, eff. 8-6-21.)
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(15 ILCS 520/11) (from Ch. 130, par. 30)
Sec. 11. Protection of public deposits; eligible collateral.
(a) For deposits not insured by an agency of the federal government, or above the applicable insured limits,
the State Treasurer, in his or her discretion, may accept as collateral any
of the
following assets or securities, provided there has been no default in the
payment of principal or interest thereon:
(1) Bonds, notes, or other securities constituting |
| direct and general obligations of the United States, the bonds, notes, or other securities constituting the direct and general obligation of any agency or instrumentality of the United States, the interest and principal of which is unconditionally guaranteed by the United States, and bonds, notes, or other securities or evidence of indebtedness constituting the obligation of a U.S. agency or instrumentality.
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(2) Direct and general obligation bonds of the State
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| of Illinois or of any other state of the United States.
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(3) Revenue bonds of this State or any authority,
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| board, commission, or similar agency thereof.
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(4) Direct and general obligation bonds of any city,
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| town, county, school district, or other taxing body of any state, the debt service of which is payable from general ad valorem taxes.
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(5) Revenue bonds of any city, town, county, or
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| school district of the State of Illinois.
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(6) Obligations issued, assumed, or guaranteed by the
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| International Finance Corporation, the principal of which is not amortized during the life of the obligation, but no such obligation shall be accepted at more than 90% of its market value.
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(7) Illinois Affordable Housing Program Trust Fund
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| Bonds or Notes as defined in and issued pursuant to the Illinois Housing Development Act.
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(8) In an amount equal to at least market value of
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| that amount of funds deposited exceeding the insurance limitation provided by the Federal Deposit Insurance Corporation or the National Credit Union Administration or other approved share insurer: (i) securities, (ii) mortgages, (iii) letters of credit issued by a Federal Home Loan Bank, or (iv) loans covered by a State Guarantee under the Illinois Farm Development Act, if that guarantee has been assumed by the Illinois Finance Authority under Section 845-75 of the Illinois Finance Authority Act, and loans covered by a State Guarantee under Article 830 of the Illinois Finance Authority Act.
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(9) Obligations of either corporations or limited
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| liability companies organized in the United States with assets exceeding $500,000,000 if: (i) the obligations are rated at the time of purchase at one of the 3 highest classifications established by at least 2 standard rating services and mature more than 270 days, but less than 5 years, from the date of purchase; and (ii) the corporation or the limited liability company has not been placed on the list of restricted companies by the Illinois Investment Policy Board under Section 1-110.16 of the Illinois Pension Code.
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(10) Share certificates issued to the depository
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| institution pledging them as security.
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(b) The State Treasurer may establish a system to aggregate permissible assets or
securities received as collateral from financial institutions in a
collateral pool to secure State deposits of the institutions that have
pledged assets or securities to the pool.
(c) The State Treasurer may at any time declare any particular asset or security
ineligible to qualify as collateral when, in the Treasurer's judgment, it
is deemed desirable to do so.
(d) Notwithstanding any other provision of this Section, as security the
State Treasurer may, in his discretion, accept a bond, executed by a company
authorized to transact the kinds of business described in clause (g) of
Section 4 of the Illinois Insurance Code, in an amount not less than the
amount of the deposits required by this Section to be secured, payable to the
State Treasurer for the benefit of the People of the State of Illinois, in
a form that is acceptable to the State Treasurer.
(Source: P.A. 101-206, eff. 8-2-19; 102-297, eff. 8-6-21.)
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(15 ILCS 520/22.5) (from Ch. 130, par. 41a)
(For force and effect of certain provisions, see Section 90 of P.A. 94-79) Sec. 22.5. Permitted investments. The State Treasurer may invest and reinvest any State money in the State Treasury
which is not needed for current expenditures due or about to become due, in
obligations of the United States government or its agencies or of National
Mortgage Associations established by or under the National Housing Act, 12
U.S.C. 1701 et seq., or
in mortgage participation certificates representing undivided interests in
specified, first-lien conventional residential Illinois mortgages that are
underwritten, insured, guaranteed, or purchased by the Federal Home Loan
Mortgage Corporation or in Affordable Housing Program Trust Fund Bonds or
Notes as defined in and issued pursuant to the Illinois Housing Development
Act. All such obligations shall be considered as cash and may
be delivered over as cash by a State Treasurer to his successor.
The State Treasurer may purchase
any state bonds with any money in the State Treasury that has been set
aside and held for the payment of the principal of and interest on the
bonds. The bonds shall be considered as cash and may be delivered over
as cash by the State Treasurer to his successor.
The State Treasurer may invest or
reinvest any State money in the State Treasury
that is not needed for current expenditures due or about to become
due, or any money in the State Treasury that has been set aside and
held for the payment of the principal of and interest on any State
bonds, in bonds issued by counties or municipal corporations of the
State of Illinois.
The State Treasurer may invest or reinvest up to 5% of the College Savings Pool Administrative Trust Fund, the Illinois Public Treasurer Investment Pool (IPTIP) Administrative Trust Fund, and the State Treasurer's Administrative Fund that is not needed for current expenditures due or about to become due, in common or preferred stocks of publicly traded corporations, partnerships, or limited liability companies, organized in the United States, with assets exceeding $500,000,000 if: (i) the purchases do not exceed 1% of the corporation's or the limited liability company's outstanding common and preferred stock; (ii) no more than 10% of the total funds are invested in any one publicly traded corporation, partnership, or limited liability company; and (iii) the corporation or the limited liability company has not been placed on the list of restricted companies by the Illinois Investment Policy Board under Section 1-110.16 of the Illinois Pension Code.
Whenever the total amount of vouchers presented to the Comptroller under Section 9 of the State Comptroller Act exceeds the funds available in the General Revenue Fund by $1,000,000,000 or more, then the State Treasurer may invest any State money in the State Treasury, other than money in the General Revenue Fund, Health Insurance Reserve Fund, Attorney General Court Ordered and Voluntary Compliance Payment Projects Fund, Attorney General Whistleblower Reward and Protection Fund, and Attorney General's State Projects and Court Ordered Distribution Fund, which is not needed for current expenditures, due or about to become due, or any money in the State Treasury which has been set aside and held for the payment of the principal of and the interest on any State bonds with the Office of the Comptroller in order to enable the Comptroller to pay outstanding vouchers. At any time, and from time to time outstanding, such investment shall not be greater than $2,000,000,000. Such investment shall be deposited into the General Revenue Fund or Health Insurance Reserve Fund as determined by the Comptroller. Such investment shall be repaid by the Comptroller with an interest rate tied to the London Interbank Offered Rate (LIBOR) or the Federal Funds Rate or an equivalent market established variable rate, but in no case shall such interest rate exceed the lesser of the penalty rate established under the State Prompt Payment Act or the timely pay interest rate under Section 368a of the Illinois Insurance Code. The State Treasurer and the Comptroller shall enter into an intergovernmental agreement to establish procedures for such investments, which market established variable rate to which the interest rate for the investments should be tied, and other terms which the State Treasurer and Comptroller reasonably believe to be mutually beneficial concerning these investments by the State Treasurer. The State Treasurer and Comptroller shall also enter into a written agreement for each such investment that specifies the period of the investment, the payment interval, the interest rate to be paid, the funds in the State Treasury from which the State Treasurer will draw the investment, and other terms upon which the State Treasurer and Comptroller mutually agree. Such investment agreements shall be public records and the State Treasurer shall post the terms of all such investment agreements on the State Treasurer's official website. In compliance with the intergovernmental agreement, the Comptroller shall order and the State Treasurer shall transfer amounts sufficient for the payment of principal and interest invested by the State Treasurer with the Office of the Comptroller under this paragraph from the General Revenue Fund or the Health Insurance Reserve Fund to the respective funds in the State Treasury from which the State Treasurer drew the investment. Public Act 100-1107 shall constitute an irrevocable and continuing authority for all amounts necessary for the payment of principal and interest on the investments made with the Office of the Comptroller by the State Treasurer under this paragraph, and the irrevocable and continuing authority for and direction to the Comptroller and State Treasurer to make the necessary transfers. The State Treasurer may invest or
reinvest any State money in the State Treasury that is not needed for current
expenditure, due or about to become due, or any money in the State Treasury
that has been set aside and held for the payment of the principal of and
the interest on any State bonds, in any of the following:
(1) Bonds, notes, certificates of indebtedness, |
| Treasury bills, or other securities now or hereafter issued that are guaranteed by the full faith and credit of the United States of America as to principal and interest.
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(2) Bonds, notes, debentures, or other similar
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| obligations of the United States of America, its agencies, and instrumentalities, or other obligations that are issued or guaranteed by supranational entities; provided, that at the time of investment, the entity has the United States government as a shareholder.
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(2.5) Bonds, notes, debentures, or other similar
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| obligations of a foreign government, other than the Republic of the Sudan, that are guaranteed by the full faith and credit of that government as to principal and interest, but only if the foreign government has not defaulted and has met its payment obligations in a timely manner on all similar obligations for a period of at least 25 years immediately before the time of acquiring those obligations.
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(3) Interest-bearing savings accounts,
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| interest-bearing certificates of deposit, interest-bearing time deposits, or any other investments constituting direct obligations of any bank as defined by the Illinois Banking Act.
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(4) Interest-bearing accounts, certificates of
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| deposit, or any other investments constituting direct obligations of any savings and loan associations incorporated under the laws of this State or any other state or under the laws of the United States.
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(5) Dividend-bearing share accounts, share
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| certificate accounts, or class of share accounts of a credit union chartered under the laws of this State or the laws of the United States; provided, however, the principal office of the credit union must be located within the State of Illinois.
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(6) Bankers' acceptances of banks whose senior
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| obligations are rated in the top 2 rating categories by 2 national rating agencies and maintain that rating during the term of the investment and the bank has not been placed on the list of restricted companies by the Illinois Investment Policy Board under Section 1-110.16 of the Illinois Pension Code.
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(7) Short-term obligations of either corporations or
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| limited liability companies organized in the United States with assets exceeding $500,000,000 if (i) the obligations are rated at the time of purchase at one of the 3 highest classifications established by at least 2 standard rating services and mature not later than 270 days from the date of purchase, (ii) the purchases do not exceed 10% of the corporation's or the limited liability company's outstanding obligations, (iii) no more than one-third of the public agency's funds are invested in short-term obligations of either corporations or limited liability companies, and (iv) the corporation or the limited liability company has not been placed on the list of restricted companies by the Illinois Investment Policy Board under Section 1-110.16 of the Illinois Pension Code.
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(7.5) Obligations of either corporations or limited
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| liability companies organized in the United States, that have a significant presence in this State, with assets exceeding $500,000,000 if: (i) the obligations are rated at the time of purchase at one of the 3 highest classifications established by at least 2 standard rating services and mature more than 270 days, but less than 10 years, from the date of purchase; (ii) the purchases do not exceed 10% of the corporation's or the limited liability company's outstanding obligations; (iii) no more than one-third of the public agency's funds are invested in such obligations of corporations or limited liability companies; and (iv) the corporation or the limited liability company has not been placed on the list of restricted companies by the Illinois Investment Policy Board under Section 1-110.16 of the Illinois Pension Code.
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(8) Money market mutual funds registered under the
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| Investment Company Act of 1940.
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(9) The Public Treasurers' Investment Pool created
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| under Section 17 of the State Treasurer Act or in a fund managed, operated, and administered by a bank.
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(10) Repurchase agreements of government securities
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| having the meaning set out in the Government Securities Act of 1986, as now or hereafter amended or succeeded, subject to the provisions of that Act and the regulations issued thereunder.
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(11) Investments made in accordance with the
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| Technology Development Act.
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(12) Investments made in accordance with the
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| Student Investment Account Act.
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(13) Investments constituting direct obligations of a
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| community development financial institution, which is certified by the United States Treasury Community Development Financial Institutions Fund and is operating in the State of Illinois.
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(14) Investments constituting direct obligations of a
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| minority depository institution, as designated by the Federal Deposit Insurance Corporation, that is operating in the State of Illinois.
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(15) Investments made in accordance with any other
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| law that authorizes the State Treasurer to invest or deposit funds.
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For purposes of this Section, "agencies" of the United States
Government includes:
(i) the federal land banks, federal intermediate
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| credit banks, banks for cooperatives, federal farm credit banks, or any other entity authorized to issue debt obligations under the Farm Credit Act of 1971 (12 U.S.C. 2001 et seq.) and Acts amendatory thereto;
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(ii) the federal home loan banks and the federal home
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| loan mortgage corporation;
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(iii) the Commodity Credit Corporation; and
(iv) any other agency created by Act of Congress.
The State Treasurer may lend any securities
acquired under this Act. However, securities may be lent under this Section
only in accordance with Federal Financial Institution Examination Council
guidelines and only if the securities are collateralized at a level sufficient
to assure the safety of the securities, taking into account market value
fluctuation. The securities may be collateralized by cash or collateral
acceptable under Sections 11 and 11.1.
(Source: P.A. 101-81, eff. 7-12-19; 101-206, eff. 8-2-19; 101-586, eff. 8-26-19; 101-657, eff. 3-23-21; 102-297, eff. 8-6-21; 102-558, eff. 8-20-21; 102-813, eff. 5-13-22.)
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