Illinois Compiled Statutes
Information maintained by the Legislative Reference Bureau
Updating the database of the Illinois Compiled Statutes (ILCS) is an ongoing process. Recent laws may not yet be included in the ILCS database, but they are found on this site as Public Acts
soon after they become law. For information concerning the relationship between statutes and Public Acts, refer to the Guide
Because the statute database is maintained primarily for legislative drafting purposes, statutory changes are sometimes included in the statute database before they take effect. If the source note at the end of a Section of the statutes includes a Public Act that has not yet taken effect, the version of the law that is currently in effect may have already been removed from the database and you should refer to that Public Act to see the changes made to the current law.
FINANCE30 ILCS 235/0.01
(30 ILCS 235/) Public Funds Investment Act.
(30 ILCS 235/0.01)
(from Ch. 85, par. 900)
This Act may be cited as the
Public Funds Investment Act.
(Source: P.A. 86-1324.)
30 ILCS 235/1
(30 ILCS 235/1)
(from Ch. 85, par. 901)
The words "public funds", as used in this Act, mean current
operating funds, special funds, interest and sinking funds, and funds of
any kind or character belonging to or in the custody of any public agency.
The words "public agency", as used in this Act, mean the State of
Illinois, the various counties, townships, cities, towns, villages, school
districts, educational service regions, special road districts, public
water supply districts, fire protection districts, drainage districts, levee
districts, sewer districts, housing authorities, the Illinois Bank Examiners'
Education Foundation, the Chicago Park District, and all other political
corporations or subdivisions of the State of Illinois, now or hereafter
created, whether herein specifically mentioned or not.
This Act does not apply to the Illinois Prepaid Tuition Trust Fund,
private funds collected by the Illinois Conservation Foundation, or
funds or retirement systems established
under the Illinois Pension Code, except as otherwise provided in that Code.
The words "governmental unit", as used in this Act, have the same meaning as in the Local Government Debt Reform Act.
(Source: P.A. 98-297, eff. 1-1-14.)
30 ILCS 235/2
(30 ILCS 235/2)
(from Ch. 85, par. 902)
(a) Any public agency may invest any public funds as follows:
(1) in bonds, notes, certificates of indebtedness,
treasury bills or other securities now or hereafter issued, which are guaranteed by the full faith and credit of the United States of America as to principal and interest;
(2) in bonds, notes, debentures, or other similar
obligations of the United States of America, its agencies, and its instrumentalities;
(3) in interest-bearing savings accounts,
interest-bearing certificates of deposit or interest-bearing time deposits or any other investments constituting direct obligations of any bank as defined by the Illinois Banking Act;
(4) in obligations of corporations organized in the
United States with assets exceeding $500,000,000 if (i) such obligations are rated at the time of purchase at one of the 3 highest classifications established by at least 2 standard rating services and which mature not later than 3 years from the date of purchase, (ii) such purchases do not exceed 10% of the corporation's outstanding obligations and (iii) no more than one-third of the public agency's funds may be invested in short term obligations of corporations; or
(5) in money market mutual funds registered under the
Investment Company Act of 1940, provided that the portfolio of any such money market mutual fund is limited to obligations described in paragraph (1) or (2) of this subsection and to agreements to repurchase such obligations.
(a-1) In addition to any other investments authorized under this Act, a
municipality, park district, forest preserve district, conservation district, county, or other governmental unit may invest its public funds in interest bearing bonds of any
county, township, city, village, incorporated town, municipal corporation, or
school district, of the State of Illinois, of any other state, or of
any political subdivision or
agency of the State of Illinois or of any other state, whether the interest
earned thereon is taxable or tax-exempt under federal law. The bonds shall
be registered in the name of the municipality, park district, forest preserve district, conservation district, county, or other governmental unit, or held under a custodial agreement at a bank. The bonds shall be rated at the
time of purchase within the 4 highest general classifications established by a
rating service of nationally recognized expertise in rating bonds of states and
their political subdivisions.
(b) Investments may be made only in banks which are insured by the
Federal Deposit Insurance Corporation. Any public agency may invest any
public funds in short term discount obligations of the Federal National
Mortgage Association or in shares or other forms of securities legally
issuable by savings banks or savings and loan associations incorporated under
the laws of this State or any other state or under the laws of the United
States. Investments may be made only in those savings banks or savings and
loan associations the shares, or investment certificates of which are insured
by the Federal Deposit Insurance Corporation. Any such securities may be
purchased at the offering or market price thereof at the time of such
purchase. All such securities so purchased shall mature or be redeemable on
a date or dates prior to the time when, in the judgment of
such governing authority, the public funds so invested will be required
for expenditure by such public agency or its governing authority. The
expressed judgment of any such governing authority as to the time when
any public funds will be required for expenditure or be redeemable is
final and conclusive. Any public agency may invest any public funds in
dividend-bearing share accounts, share 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 any such credit union must be located within the State of Illinois.
Investments may be made only in those credit unions the accounts of which
are insured by applicable law.
(c) For purposes of this Section, the term "agencies of the United States
of America" includes: (i) the federal land banks, federal intermediate
credit banks, banks for cooperative, 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; (ii) the federal
home loan banks and the federal home loan mortgage corporation; and (iii)
any other agency created by Act of Congress.
(d) Except for pecuniary interests permitted under subsection (f) of
Section 3-14-4 of the Illinois Municipal Code or under Section 3.2 of
the Public Officer Prohibited Practices Act, no person acting as treasurer
or financial officer or who is employed in any similar capacity by or for a
public agency may do any of the following:
(1) have any interest, directly or indirectly, in any
investments in which the agency is authorized to invest.
(2) have any interest, directly or indirectly, in the
sellers, sponsors, or managers of those investments.
(3) receive, in any manner, compensation of any kind
from any investments in which the agency is authorized to invest.
(e) Any public agency may also invest any public funds in a Public
Treasurers' Investment Pool created under Section 17 of the State Treasurer
Act. Any public agency may also invest any public funds in a fund managed,
operated, and administered by a bank, subsidiary of a bank, or
subsidiary of a bank holding company or use the services of such an entity to
hold and invest or advise regarding the investment of any public funds.
(f) To the extent a public agency has custody of funds not owned by it or
another public agency and does not otherwise have authority to invest
such funds, the public agency may invest such funds as if they were its
own. Such funds must be released to the appropriate person at the
earliest reasonable time, but in no case exceeding 31 days, after the
private person becomes entitled to the receipt of them. All earnings
accruing on any investments or deposits made pursuant to the provisions
of this Act shall be credited to the public agency by or for which such
investments or deposits were made, except as provided otherwise in Section
4.1 of the State Finance Act or the Local Governmental Tax Collection Act,
and except where by specific statutory provisions such earnings are
directed to be credited to and paid to a particular fund.
(g) A public agency may purchase or invest in repurchase agreements of
government securities having the meaning set out in the Government
Securities Act of 1986, as now or hereafter amended or succeeded, subject to the provisions of said Act and the
regulations issued thereunder. The government securities, unless
registered or inscribed in the name of the public agency, shall be
purchased through banks or trust companies authorized to do business in the
State of Illinois.
(h) Except for repurchase agreements of government securities which are
subject to the Government Securities Act of 1986, as now or hereafter amended or succeeded, no public agency may
purchase or invest in instruments which constitute repurchase agreements,
and no financial institution may enter into such an agreement with or on
behalf of any public agency unless the instrument and the transaction meet
the following requirements:
(1) The securities, unless registered or inscribed in
the name of the public agency, are purchased through banks or trust companies authorized to do business in the State of Illinois.
(2) An authorized public officer after ascertaining
which firm will give the most favorable rate of interest, directs the custodial bank to "purchase" specified securities from a designated institution. The "custodial bank" is the bank or trust company, or agency of government, which acts for the public agency in connection with repurchase agreements involving the investment of funds by the public agency. The State Treasurer may act as custodial bank for public agencies executing repurchase agreements. To the extent the Treasurer acts in this capacity, he is hereby authorized to pass through to such public agencies any charges assessed by the Federal Reserve Bank.
(3) A custodial bank must be a member bank of the
Federal Reserve System or maintain accounts with member banks. All transfers of book-entry securities must be accomplished on a Reserve Bank's computer records through a member bank of the Federal Reserve System. These securities must be credited to the public agency on the records of the custodial bank and the transaction must be confirmed in writing to the public agency by the custodial bank.
(4) Trading partners shall be limited to banks or
trust companies authorized to do business in the State of Illinois or to registered primary reporting dealers.
(5) The security interest must be perfected.
(6) The public agency enters into a written master
repurchase agreement which outlines the basic responsibilities and liabilities of both buyer and seller.
(7) Agreements shall be for periods of 330 days or
(8) The authorized public officer of the public
agency informs the custodial bank in writing of the maturity details of the repurchase agreement.
(9) The custodial bank must take delivery of and
maintain the securities in its custody for the account of the public agency and confirm the transaction in writing to the public agency. The Custodial Undertaking shall provide that the custodian takes possession of the securities exclusively for the public agency; that the securities are free of any claims against the trading partner; and any claims by the custodian are subordinate to the public agency's claims to rights to those securities.
(10) The obligations purchased by a public agency may
only be sold or presented for redemption or payment by the fiscal agent bank or trust company holding the obligations upon the written instruction of the public agency or officer authorized to make such investments.
(11) The custodial bank shall be liable to the public
agency for any monetary loss suffered by the public agency due to the failure of the custodial bank to take and maintain possession of such securities.
(i) Notwithstanding the foregoing restrictions on investment in
instruments constituting repurchase agreements the Illinois Housing
Development Authority may invest in, and any financial institution with
capital of at least $250,000,000 may act as custodian for, instruments
that constitute repurchase agreements, provided that the Illinois Housing
Development Authority, in making each such investment, complies with the
safety and soundness guidelines for engaging in repurchase transactions
applicable to federally insured banks, savings banks, savings and loan
associations or other depository institutions as set forth in the Federal
Financial Institutions Examination Council Policy Statement Regarding
Repurchase Agreements and any regulations issued, or which may be issued by the
supervisory federal authority pertaining thereto and any amendments thereto;
provided further that the securities shall be either (i) direct general
obligations of, or obligations the payment of the principal of and/or interest
on which are unconditionally guaranteed by, the United States of America or
(ii) any obligations of any agency, corporation or subsidiary thereof
controlled or supervised by and acting as an instrumentality of the United
States Government pursuant to authority granted by the Congress of the United
States and provided further that the security interest must be perfected by
either the Illinois Housing Development Authority, its custodian or its agent
receiving possession of the securities either physically or transferred through
a nationally recognized book entry system.
(j) In addition to all other investments authorized
under this Section, a community college district may
invest public funds in any mutual funds that
invest primarily in corporate investment grade or global government short term
Purchases of mutual funds that invest primarily in global government short
term bonds shall be limited to funds with assets of at least $100 million and
that are rated at the time of purchase as one of the 10 highest classifications
established by a recognized rating service. The investments shall be subject
to approval by the local community college board of trustees. Each community
college board of trustees shall develop a policy regarding the percentage of
the college's investment portfolio that can be invested in such funds.
Nothing in this Section shall be construed to authorize an
intergovernmental risk management entity to accept the deposit of public funds
except for risk management purposes.
(Source: P.A. 100-752, eff. 8-10-18.)
30 ILCS 235/2.5
(30 ILCS 235/2.5)
(a) Investment of public funds by a public
agency shall be
governed by a written investment policy adopted by the
agency. The level of detail and complexity of the investment policy shall be
appropriate to the
nature of the funds, the purpose for the funds, and the amount of the public
funds within the
investment portfolio. The policy shall address safety of principal, liquidity
of funds, and return
on investment and shall require that the investment portfolio be structured in
such manner as to
provide sufficient liquidity to pay obligations as they come due. In addition,
policy shall include or address the following:
(1) a listing of authorized investments;
(2) a rule, such as the "prudent person rule",
establishing the standard of care that must be maintained by the persons investing the public funds;
(3) investment guidelines that are appropriate to the
nature of the funds, the purpose for the funds, and the amount of the public funds within the investment portfolio;
(4) a policy regarding diversification of the
investment portfolio that is appropriate to the nature of the funds, the purpose for the funds, and the amount of the public funds within the investment portfolio;
(5) guidelines regarding collateral requirements, if
any, for the deposit of public funds in a financial institution made pursuant to this Act, and, if applicable, guidelines for contractual arrangements for the custody and safekeeping of that collateral;
(6) a policy regarding the establishment of a system
of internal controls and written operational procedures designed to prevent losses of funds that might arise from fraud, employee error, misrepresentation by third parties, or imprudent actions by employees of the entity;
(7) identification of the chief investment officer
who is responsible for establishing the internal controls and written procedures for the operation of the investment program;
(8) performance measures that are appropriate to the
nature of the funds, the purpose for the funds, and the amount of the public funds within the investment portfolio;
(9) a policy regarding appropriate periodic review of
the investment portfolio, its effectiveness in meeting the public agency's needs for safety, liquidity, rate of return, and diversification, and its general performance;
(10) a policy establishing at least quarterly written
reports of investment activities by the public agency's chief financial officer for submission to the governing body and chief executive officer of the public agency. The reports shall include information regarding securities in the portfolio by class or type, book value, income earned, and market value as of the report date;
(11) a policy regarding the selection of investment
advisors, money managers, and financial institutions; and
(12) a policy regarding ethics and conflicts of
(a-5) The investment policy shall include a statement that material, relevant, and decision-useful sustainability factors have been or are regularly considered by the agency, within the bounds of financial and fiduciary prudence, in evaluating investment decisions. Such factors include, but are not limited to: (i) corporate governance and leadership factors; (ii) environmental factors; (iii) social capital factors; (iv) human capital factors; and (v) business model and innovation factors, as provided under the Illinois Sustainable Investing Act.
(b) For purposes of the State or a county, the investment policy shall be
adopted by the elected treasurer and presented to the chief executive officer
and the governing body. For purposes of any other public agency, the
investment policy shall be adopted by the governing body of the public agency.
(c) The investment policy shall be made available to the public at the main
administrative office of the public agency.
(d) The written investment policy required under this Section shall be
developed and implemented by
January 1, 2000.
(Source: P.A. 101-473, eff. 1-1-20
30 ILCS 235/2.10
(30 ILCS 235/2.10)
Unit of local government; deposit at reduced rate of interest.
The treasurer of a unit of
government may, in his or her discretion, deposit public moneys of that unit of
government in a financial institution pursuant to an agreement that provides
for a reduced
rate of interest, provided that the institution agrees to expend an amount of
to the amount of the reduction for senior centers.
(Source: P.A. 93-246, eff. 7-22-03.)
30 ILCS 235/3
(30 ILCS 235/3)
(from Ch. 85, par. 903)
If any securities, purchased under authority of Section 2 hereof,
are issuable to a designated payee or to the order of a designated payee,
then the public agency shall be so designated, and further, if such
securities are purchased with money taken from a particular fund of a
public agency, the name of such fund shall be added to that of such public
agency. If any such securities are registerable, either as to principal or
interest, or both, then such securities shall be so registered in the name
of the public agency, and in the name of the fund to which they are to be
(Source: Laws 1943, vol. 1, p. 951.)
30 ILCS 235/4
(30 ILCS 235/4)
(from Ch. 85, par. 904)
All securities purchased under the authority of this Act shall be
held for the benefit of the public agency which purchased them, and if
purchased with money taken from a particular fund, such securities shall be
credited to and deemed to be a part of such fund, and shall be held for the
benefit thereof. All securities so purchased shall be deposited and held in
a safe place by the person or persons having custody of the fund to which
they are credited, and such person or persons are responsible upon his or
their official bond or bonds for the safekeeping of all such securities.
Any securities purchased by any such public agency under authority of this
Act, may be sold at any time, at the then current market price thereof, by
the governing authority of such public agency. Except as provided in
Section 4.1 of "An Act in relation to State finance", all payments received as
principal or interest, or otherwise, derived from any such securities shall
be credited to the public agency and to the fund by or for which such
securities were purchased.
(Source: P.A. 84-1378.)
30 ILCS 235/5
(30 ILCS 235/5)
(from Ch. 85, par. 905)
This Act, without reference to any other statute, shall be deemed
full and complete authority for the investment of public funds, as
hereinabove provided, and shall be construed as an additional and
alternative method therefor.
(Source: Laws 1943, vol. 1, p. 951.)
30 ILCS 235/6
(30 ILCS 235/6)
(from Ch. 85, par. 906)
Report of financial institutions.
(a) No bank shall receive any public funds unless it has furnished
the corporate authorities of a public agency submitting a deposit with copies
of the last two sworn statements of resources and liabilities which the
bank is required to furnish to the Commissioner of Banks and Real Estate or to
the Comptroller of the Currency. Each bank
designated as a depository for public funds shall, while acting as such
depository, furnish the corporate authorities of a public agency with a copy of
all statements of resources and liabilities which it is required to furnish to
the Commissioner of Banks and Real Estate or to the
Comptroller of the Currency; provided, that if such funds or moneys are
deposited in a bank, the amount of all such deposits not collateralized or
insured by an agency of the federal government shall not exceed 75% of the
capital stock and surplus of such bank, and the corporate authorities of a
public agency submitting a deposit shall not be discharged from responsibility
for any funds or moneys deposited in any bank in excess of such limitation.
(b) No savings bank or savings and loan association shall receive
public funds unless it has furnished the corporate authorities of a public
agency submitting a deposit with copies of the last 2 sworn statements of
resources and liabilities which the savings bank or savings and loan
association is required to furnish to the Commissioner of Banks and Real
Estate or the Federal Deposit Insurance
Corporation. Each savings bank or savings and loan association designated as a
depository for public funds shall, while acting as such depository, furnish the
corporate authorities of a public agency with a copy of all statements of
resources and liabilities which it is required to furnish to the Commissioner
of Banks and Real Estate or the Federal
Deposit Insurance Corporation; provided, that if such
funds or moneys are deposited in a savings bank or savings and loan
association, the amount of all such deposits not collateralized or insured
by an agency of the federal government shall not exceed 75% of the net
worth of such savings bank or savings and loan association as defined by the
Federal Deposit Insurance Corporation, and the corporate authorities of a
public agency submitting a deposit shall not be discharged from responsibility
for any funds or moneys deposited in any savings bank or savings and loan
association in excess of such limitation.
(c) No credit union shall receive public funds unless it has furnished
the corporate authorities of a public agency submitting a share deposit
with copies of the last two reports of examination prepared by or submitted
to the Illinois Department of Financial Institutions or the National Credit
Union Administration. Each credit union designated as a depository for
public funds shall, while acting as such depository, furnish the corporate
authorities of a public agency with a copy of all reports of examination
prepared by or furnished to the Illinois Department of Financial Institutions
or the National Credit Union Administration; provided that if such funds
or moneys are invested in a credit union account, the amount of all such
investments not collateralized or insured by an agency of the federal
government or other approved share insurer shall not exceed 50% of the
unimpaired capital and surplus of such credit union, which shall include
shares, reserves and undivided earnings and the corporate authorities of a
public agency making an investment shall not be discharged from
responsibility for any funds or moneys invested in a credit union in excess of
(d) Whenever a public agency deposits any public funds in a financial
institution, the public agency may enter into an agreement with the financial
institution requiring any funds not insured by the Federal Deposit Insurance
Corporation or the National Credit Union Administration or other approved share
insurer to be collateralized by
any of the following classes of securities, provided there
has been no default in the payment of principal or interest
(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.
(2) Direct and general obligation bonds of the State
of Illinois or of any other state of the United States.
(3) Revenue bonds of this State or any authority,
board, commission, or similar agency thereof.
(4) Direct and general obligation bonds of any city,
town, county, school district, or other taxing body of any state, the debt service of which is payable from general ad valorem taxes.
(5) Revenue bonds of any city, town, county, or
school district of the State of Illinois.
(6) Obligations issued, assumed, or guaranteed by the
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.
(7) Illinois Affordable Housing Program Trust Fund
Bonds or Notes as defined in and issued pursuant to the Illinois Housing Development Act.
(8) In an amount equal to at least market value of
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.
(9) Certificates of deposit or share certificates
issued to the depository institution pledging them as security. The public agency may require security in the amount of 125% of the value of the public agency deposit. Such certificate of deposit or share certificate shall:
(i) be fully insured by the Federal Deposit
Insurance Corporation, the Federal Savings and Loan Insurance Corporation, or the National Credit Union Share Insurance Fund or issued by a depository institution which is rated within the 3 highest classifications established by at least one of the 2 standard rating services;
(ii) be issued by a financial institution having
assets of $15,000,000 or more; and
(iii) be issued by either a savings and loan
association having a capital to asset ratio of at least 2%, by a bank having a capital to asset ratio of at least 6% or by a credit union having a capital to asset ratio of at least 4%.
The depository institution shall effect the assignment of the
certificate of deposit or share certificate to the public agency
and shall agree that, in the event the issuer of the certificate
fails to maintain the capital to asset ratio required by this
Section, such certificate of deposit or share certificate shall
be replaced by additional suitable security.
(e) The public agency may accept a system established by the State
Treasurer to aggregate permissible securities received as collateral
from financial institutions in a collateral pool to secure public
deposits of the institutions that have pledged securities to the pool.
(f) The public agency may at any time declare any particular
security ineligible to qualify as collateral when, in the public
agency's judgment, it is deemed desirable to do so.
(g) Notwithstanding any other provision of this Section, as
security a public agency may, at its 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 public agency for the
benefit of the People of the unit of government, in a form that is
acceptable to the public agency.
(h) Paragraphs (a), (b), (c), (d), (e), (f), and
(g) of this Section
do not apply to the University of Illinois, Southern Illinois University,
Chicago State University, Eastern Illinois University, Governors State
University, Illinois State University, Northeastern Illinois University,
Northern Illinois University, Western Illinois University, the Cooperative
and public community colleges.
(Source: P.A. 95-331, eff. 8-21-07.)
30 ILCS 235/6.5
(30 ILCS 235/6.5)
Federally insured deposits at Illinois financial institutions.
(a) Notwithstanding any other provision of this Act or any other statute, whenever a public agency invests public funds in an interest-bearing savings account, demand deposit account, interest-bearing certificate of deposit, or interest-bearing time deposit under Section 2 of this Act, the provisions of Section 6 of this Act and any other statutory requirements pertaining to the eligibility of a bank to receive or hold public deposits or to the pledging of collateral by a bank to secure public deposits do not apply to any bank receiving or holding all or part of the invested public funds if (i) the public agency initiates the investment at or through a bank located in Illinois and (ii) the invested public funds are at all times fully insured by an agency or instrumentality of the federal government.
(b) Nothing in this Section is intended to:
(1) prohibit a public agency from requiring the bank
at or through which the investment of public funds is initiated to provide the public agency with the information otherwise required by subsection (a), (b), or (c) of Section 6 of this Act as a condition of investing the public funds at or through that bank; or
(2) permit a bank to receive or hold public deposits
if that bank is prohibited from doing so by any rule, sanction, or order issued by a regulatory agency or by a court.
(c) For purposes of this Section, the term "bank" includes any person doing a banking business whether subject to the laws of this or any other jurisdiction.
(Source: P.A. 98-703, eff. 7-7-14; 98-756, eff. 7-16-14; 99-78, eff. 7-20-15.)
30 ILCS 235/7
(30 ILCS 235/7)
(from Ch. 85, par. 907)
When investing or depositing public funds, each custodian
shall, to the extent permitted by this Act and by the lawful and reasonable
performance of his custodial duties, invest or deposit such funds with or
in minority-owned financial institutions within this State.
(Source: P.A. 84-754.)
30 ILCS 235/8
(30 ILCS 235/8)
Consideration of financial institution's commitment to its
(a) In addition to any
other requirements of this Act, a public agency is authorized to consider the
financial institution's record and current level of financial commitment to its
local community when deciding whether to deposit public funds in that
financial institution. The public agency may consider factors including, but
not necessarily limited to:
(1) for financial institutions subject to the federal
Community Reinvestment Act of 1977, the current and historical ratings that the financial institution has received, to the extent that those ratings are publicly available, under the federal Community Reinvestment Act of 1977;
(2) any changes in ownership, management, policies,
or practices of the financial institution that may affect the level of the financial institution's commitment to its community;
(3) the financial impact that the withdrawal or
denial of deposits of public funds might have on the financial institution;
(4) the financial impact to the public agency as a
result of withdrawing public funds or refusing to deposit additional public funds in the financial institution; and
(5) any additional burden on the resources of the
public agency that might result from ceasing to maintain deposits of public funds at the financial institution under consideration.
(b) Nothing in this Section shall be construed as authorizing the public
agency to conduct an examination or investigation of a financial institution or
to receive information that is not publicly available and the disclosure of
which is otherwise prohibited by law.
(Source: P.A. 93-251, eff. 7-1-04
30 ILCS 235/9
(30 ILCS 235/9)
Municipal and county investment in not-for-profit community development financial institutions.
Municipalities and counties may invest up to $250,000 per year in public funds in not-for-profit community development financial institutions across all institutions. These financial institutions must have at least $5,000,000 in net assets and have earned at least an "A" rating by an investment rating organization that primarily provides services for community development financial institutions. Investments made under this Section shall be made for a term and at a rate acceptable to the municipality or county and the municipality or county may set benchmarks in order to continue investing in the not-for-profit community development financial institution.
(Source: P.A. 99-676, eff. 7-29-16.)