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92_HB3030 LRB9204791JMmb 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 -2- LRB9204791JMmb 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. -3- LRB9204791JMmb 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 -4- LRB9204791JMmb 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 -5- LRB9204791JMmb 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.)