State of Illinois
92nd General Assembly
Legislation

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92_HB3030

 
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 1        AN ACT concerning State funds.

 2        Be  it  enacted  by  the People of the State of Illinois,
 3    represented in the General Assembly:

 4        Section 5.  The Deposit of State Moneys Act is amended by
 5    changing Section 22.5 as follows:

 6        (15 ILCS 520/22.5) (from Ch. 130, par. 41a)
 7        Sec. 22.5.  The State Treasurer may, with the approval of
 8    the Governor, invest and reinvest  any  State  money  in  the
 9    treasury which is  not needed for current expenditures due or
10    about  to  become  due,  in obligations of the  United States
11    government  or  its  agencies   or   of   National   Mortgage
12    Associations  established  by  or  under the National Housing
13    Act, 1201 U.S.C. 1701 et seq., or in  mortgage  participation
14    certificates  representing  undivided interests in specified,
15    first-lien conventional residential Illinois  mortgages  that
16    are  underwritten,  insured,  guaranteed, or purchased by the
17    Federal Home  Loan  Mortgage  Corporation  or  in  Affordable
18    Housing  Program  Trust Fund Bonds or Notes as defined in and
19    issued pursuant to the Illinois Housing Development Act.  All
20    such obligations shall be  considered  as  cash  and  may  be
21    delivered over as cash by a State Treasurer to his successor.
22        The  State  Treasurer  may,  with  the  approval  of  the
23    Governor,  purchase  any  state  bonds  with any money in the
24    State Treasury that has been  set  aside  and  held  for  the
25    payment   of  the principal of and interest on the bonds. The
26    bonds shall be considered as cash and may be  delivered  over
27    as cash by the State Treasurer to his successor.
28        The  State  Treasurer  may,  with  the  approval  of  the
29    Governor, invest or reinvest any  State money in the treasury
30    that  is  not  needed for current expenditure due or about to
31    become due, or any money in the State Treasury that has  been
 
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 1    set  aside  and  held for the payment of the principal of and
 2    the interest on any  State  bonds,  in  shares,  withdrawable
 3    accounts, and investment certificates of savings and building
 4    and  loan  associations,  incorporated under the laws of this
 5    State or any other state or under  the  laws  of  the  United
 6    States;  provided, however, that investments may be made only
 7    in those savings and loan or building and  loan  associations
 8    the  shares  and  withdrawable  accounts  or   other forms of
 9    investment securities of which are  insured  by  the  Federal
10    Deposit Insurance Corporation.
11        The  State  Treasurer  may  not invest State money in any
12    savings and loan or building and loan  association  unless  a
13    commitment  by  the  savings  and loan (or building and loan)
14    association, executed by the  president  or  chief  executive
15    officer  of  that association,  is submitted in the following
16    form:
17             The .................. Savings and Loan (or Building
18        and Loan) Association pledges not  to reject  arbitrarily
19        mortgage  loans  for  residential  properties  within any
20        specific part of the community served by the savings  and
21        loan  (or  building and loan) association because  of the
22        location of the  property.   The  savings  and  loan  (or
23        building and loan) association also pledges to make loans
24        available on low and moderate income residential property
25        throughout  the  community within the limits of its legal
26        restrictions and prudent financial practices.
27        The  State  Treasurer  may,  with  the  approval  of  the
28    Governor, invest or reinvest, at a price not to  exceed  par,
29    any  State  money  in  the  treasury  that  is not needed for
30    current expenditures due or about to become due, or any money
31    in the State Treasury  that has been set aside and  held  for
32    the  payment  of  the principal of and interest on  any State
33    bonds, in bonds issued by counties or municipal  corporations
34    of the State of Illinois.
 
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 1        The  State  Treasurer  may  deposit  at  reduced rates of
 2    interest any State money in the State treasury  that  is  not
 3    needed  for  any  current expenditure, due or about to become
 4    due, in any financial institution in Illinois that agrees  to
 5    lend  such money to units of local government in Illinois for
 6    infrastructure  projects  concerning  waste  water  treatment
 7    facilities, sewer and water line improvements, and electrical
 8    systems.
 9        The  State  Treasurer  may,  with  the  approval  of  the
10    Governor, invest or reinvest any State money in the  Treasury
11    which  is not needed for current expenditure, due or about to
12    become due, or any money in the State Treasury which has been
13    set aside and held for the payment of the  principal  of  and
14    the  interest on any State bonds, in participations in loans,
15    the principal of which participation is fully  guaranteed  by
16    an agency or instrumentality of the United States government;
17    provided,   however,   that   such  loan  participations  are
18    represented by certificates issued only by  banks  which  are
19    incorporated  under the laws of this State or any other state
20    or under the laws of the United States, and such  banks,  but
21    not  the  loan participation certificates, are insured by the
22    Federal Deposit Insurance Corporation.
23        The  State  Treasurer  may,  with  the  approval  of  the
24    Governor, invest or reinvest any State money in the  Treasury
25    that  is  not needed for current expenditure, due or about to
26    become due, or any money in the State Treasury that has  been
27    set  aside  and  held for the payment of the principal of and
28    the interest on any State bonds, in any of the following:
29             (1)  Bonds,  notes,  certificates  of  indebtedness,
30        Treasury bills, or  other  securities  now  or  hereafter
31        issued  that  are guaranteed by the full faith and credit
32        of the United States  of  America  as  to  principal  and
33        interest.
34             (2)  Bonds,  notes,  debentures,  or  other  similar
 
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 1        obligations   of   the  United  States  of  America,  its
 2        agencies, and instrumentalities.
 3             (3)  Interest-bearing       savings        accounts,
 4        interest-bearing       certificates      of      deposit,
 5        interest-bearing time deposits, or any other  investments
 6        constituting direct obligations of any bank as defined by
 7        the Illinois Banking Act.
 8             (4)  Interest-bearing   accounts,   certificates  of
 9        deposit, or any  other  investments  constituting  direct
10        obligations   of   any   savings  and  loan  associations
11        incorporated under the laws of this State  or  any  other
12        state or under the laws of the United States.
13             (5)  Dividend-bearing    share    accounts,    share
14        certificate  accounts,  or  class  of share accounts of a
15        credit union chartered under the laws of  this  State  or
16        the  laws  of  the  United States; provided, however, the
17        principal office of the  credit  union  must  be  located
18        within the State of Illinois.
19             (6)  Bankers'  acceptances  of  banks  whose  senior
20        obligations are rated in the top 2 rating categories by 2
21        national  rating agencies and maintain that rating during
22        the term of the investment.
23             (7)  Short-term    obligations    of    corporations
24        organized in the  United  States  with  assets  exceeding
25        $500,000,000 if (i) the obligations are rated at the time
26        of  purchase  at  one  of  the  3 highest classifications
27        established by at least 2 standard  rating  services  and
28        mature not later than 180 days from the date of purchase,
29        (ii) the purchases do not exceed 10% of the corporation's
30        outstanding obligations, and (iii) no more than one-third
31        of  the  public agency's funds are invested in short-term
32        obligations of corporations.
33             (8)  Money market mutual funds registered under  the
34        Investment   Company  Act  of  1940,  provided  that  the
 
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 1        portfolio of the money market mutual fund is  limited  to
 2        obligations  described  in this Section and to agreements
 3        to repurchase such obligations.
 4             (9)  The Public Treasurers' Investment Pool  created
 5        under  Section 17 of the State Treasurer Act or in a fund
 6        managed, operated, and administered by a bank.
 7             (10)  Repurchase agreements of government securities
 8        having the meaning set out in the  Government  Securities
 9        Act of 1986 subject to the provisions of that Act and the
10        regulations issued thereunder.
11        For  purposes  of  this Section, "agencies" of the United
12    States Government includes:
13             (i)  the federal land  banks,  federal  intermediate
14        credit banks, banks for cooperatives, federal farm credit
15        banks,  or  any  other  entity  authorized  to issue debt
16        obligations under the Farm Credit Act of 1971 (12  U.S.C.
17        2001 et seq.) and Acts amendatory thereto;
18             (ii)  the  federal  home  loan banks and the federal
19        home loan mortgage corporation;
20             (iii)  the Commodity Credit Corporation; and
21             (iv)  any other agency created by Act of Congress.
22        The Treasurer may, with the  approval  of  the  Governor,
23    lend  any  securities  acquired  under  this  Act.   However,
24    securities  may be lent under this Section only in accordance
25    with  Federal  Financial  Institution   Examination   Council
26    guidelines and only if the securities are collateralized at a
27    level  sufficient  to  assure  the  safety of the securities,
28    taking into account market value fluctuation.  The securities
29    may be collateralized by cash or collateral acceptable  under
30    Sections 11 and 11.1.
31    (Source: P.A. 90-655, eff. 7-30-98.)

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