093_SB0396

 
                                     LRB093 09285 JAM 09518 b

 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.  Permitted investments.  The  State  Treasurer
 8    may,  with  the approval of the Governor, invest and reinvest
 9    any State money in the treasury  which  is   not  needed  for
10    current   expenditures   due  or  about  to  become  due,  in
11    obligations of the United States government or  its  agencies
12    or  of National Mortgage Associations established by or under
13    the National Housing Act, 1201 U.S.C. 1701  et  seq.,  or  in
14    mortgage  participation  certificates  representing undivided
15    interests in specified, first-lien  conventional  residential
16    Illinois    mortgages   that   are   underwritten,   insured,
17    guaranteed, or purchased by the Federal  Home  Loan  Mortgage
18    Corporation or in Affordable Housing Program Trust Fund Bonds
19    or  Notes  as  defined in and issued pursuant to the Illinois
20    Housing Development  Act.   All  such  obligations  shall  be
21    considered  as  cash  and  may be delivered over as cash by a
22    State Treasurer to his successor.
23        The  State  Treasurer  may,  with  the  approval  of  the
24    Governor, purchase any state bonds  with  any  money  in  the
25    State  Treasury  that  has  been  set  aside and held for the
26    payment  of the principal of and interest on the  bonds.  The
27    bonds  shall  be considered as cash and may be delivered over
28    as cash by the State Treasurer to his successor.
29        The  State  Treasurer  may,  with  the  approval  of  the
30    Governor, invest or reinvest any  State money in the treasury
31    that is not needed for current expenditure due  or  about  to
 
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 1    become  due, or any money in the State Treasury that has been
 2    set aside and held for the payment of the  principal  of  and
 3    the  interest  on  any  State  bonds, in shares, withdrawable
 4    accounts, and investment certificates of savings and building
 5    and loan associations,  incorporated under the laws  of  this
 6    State  or  any  other  state  or under the laws of the United
 7    States; provided, however, that investments may be made  only
 8    in  those  savings and loan or building and loan associations
 9    the shares and  withdrawable  accounts  or   other  forms  of
10    investment  securities  of  which  are insured by the Federal
11    Deposit Insurance Corporation.
12        The State Treasurer may not invest  State  money  in  any
13    savings  and  loan  or building and loan association unless a
14    commitment by the savings and loan  (or  building  and  loan)
15    association,  executed  by  the  president or chief executive
16    officer of that association,  is submitted in  the  following
17    form:
18             The .................. Savings and Loan (or Building
19        and  Loan) Association pledges not  to reject arbitrarily
20        mortgage loans  for  residential  properties  within  any
21        specific  part of the community served by the savings and
22        loan (or building and loan) association because   of  the
23        location  of  the  property.   The  savings  and loan (or
24        building and loan) association also pledges to make loans
25        available on low and moderate income residential property
26        throughout the community within the limits of  its  legal
27        restrictions and prudent financial practices.
28        The  State  Treasurer  may,  with  the  approval  of  the
29    Governor,  invest  or reinvest, at a price not to exceed par,
30    any State money in  the  treasury  that  is  not  needed  for
31    current expenditures due or about to become due, or any money
32    in  the  State Treasury  that has been set aside and held for
33    the payment of the principal of and interest  on   any  State
34    bonds,  in bonds issued by counties or municipal corporations
 
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 1    of the State of Illinois.
 2        The State Treasurer  may  deposit  at  reduced  rates  of
 3    interest  any  State  money in the State treasury that is not
 4    needed for any current expenditure, due or  about  to  become
 5    due,  in any financial institution in Illinois that agrees to
 6    lend such money to units of local government in Illinois  for
 7    infrastructure  projects  concerning  waste  water  treatment
 8    facilities, sewer and water line improvements, and electrical
 9    systems.
10        The  State  Treasurer  may,  with  the  approval  of  the
11    Governor,  invest or reinvest any State money in the Treasury
12    which is not needed for current expenditure, due or about  to
13    become due, or any money in the State Treasury which has been
14    set  aside  and  held for the payment of the principal of and
15    the interest on any State bonds, in participations in  loans,
16    the  principal  of which participation is fully guaranteed by
17    an agency or instrumentality of the United States government;
18    provided,  however,  that  such   loan   participations   are
19    represented  by  certificates  issued only by banks which are
20    incorporated under the laws of this State or any other  state
21    or  under  the laws of the United States, and such banks, but
22    not the loan participation certificates, are insured  by  the
23    Federal Deposit Insurance Corporation.
24        The  State  Treasurer  may,  with  the  approval  of  the
25    Governor,  invest or reinvest any State money in the Treasury
26    that is not needed for current expenditure, due or  about  to
27    become  due, or any money in the State Treasury that has been
28    set aside and held for the payment of the  principal  of  and
29    the interest on any State bonds, in any of the following:
30             (1)  Bonds,  notes,  certificates  of  indebtedness,
31        Treasury  bills,  or  other  securities  now or hereafter
32        issued that are guaranteed by the full faith  and  credit
33        of  the  United  States  of  America  as to principal and
34        interest.
 
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 1             (2)  Bonds,  notes,  debentures,  or  other  similar
 2        obligations  of  the  United  States  of   America,   its
 3        agencies, and instrumentalities.
 4             (2.5)  Bonds,  notes,  debentures,  or other similar
 5        obligations of a foreign government that  are  guaranteed
 6        by  the  full  faith  and credit of that government as to
 7        principal  and  interest,  but  only   if   the   foreign
 8        government  has  not  defaulted  and  has met its payment
 9        obligations in a timely manner on all similar obligations
10        for a period of at least 25 years immediately before  the
11        time of acquiring those obligations.
12             (3)  Interest-bearing        savings       accounts,
13        interest-bearing      certificates      of       deposit,
14        interest-bearing  time deposits, or any other investments
15        constituting direct obligations of any bank as defined by
16        the Illinois Banking Act.
17             (4)  Interest-bearing  accounts,   certificates   of
18        deposit,  or  any  other  investments constituting direct
19        obligations  of  any  savings   and   loan   associations
20        incorporated  under  the  laws of this State or any other
21        state or under the laws of the United States.
22             (5)  Dividend-bearing    share    accounts,    share
23        certificate accounts, or class of  share  accounts  of  a
24        credit  union  chartered  under the laws of this State or
25        the laws of the United  States;  provided,  however,  the
26        principal  office  of  the  credit  union must be located
27        within the State of Illinois.
28             (6)  Bankers'  acceptances  of  banks  whose  senior
29        obligations are rated in the top 2 rating categories by 2
30        national rating agencies and maintain that rating  during
31        the term of the investment.
32             (7)  Short-term    obligations    of    corporations
33        organized  in  the  United  States  with assets exceeding
34        $500,000,000 if (i) the obligations are rated at the time
 
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 1        of purchase at  one  of  the  3  highest  classifications
 2        established  by  at  least 2 standard rating services and
 3        mature not later than 180 days from the date of purchase,
 4        (ii) the purchases do not exceed 10% of the corporation's
 5        outstanding obligations, and (iii) no more than one-third
 6        of the public agency's funds are invested  in  short-term
 7        obligations of corporations.
 8             (8)  Money  market mutual funds registered under the
 9        Investment  Company  Act  of  1940,  provided  that   the
10        portfolio  of  the money market mutual fund is limited to
11        obligations described in this Section and  to  agreements
12        to repurchase such obligations.
13             (9)  The  Public Treasurers' Investment Pool created
14        under Section 17 of the State Treasurer Act or in a  fund
15        managed, operated, and administered by a bank.
16             (10)  Repurchase agreements of government securities
17        having  the  meaning set out in the Government Securities
18        Act of 1986 subject to the provisions of that Act and the
19        regulations issued thereunder.
20             (11)  Investments  made  in  accordance   with   the
21        Technology Development Act.
22        For  purposes  of  this Section, "agencies" of the United
23    States Government includes:
24             (i)  the federal land  banks,  federal  intermediate
25        credit banks, banks for cooperatives, federal farm credit
26        banks,  or  any  other  entity  authorized  to issue debt
27        obligations under the Farm Credit Act of 1971 (12  U.S.C.
28        2001 et seq.) and Acts amendatory thereto;
29             (ii)  the  federal  home  loan banks and the federal
30        home loan mortgage corporation;
31             (iii)  the Commodity Credit Corporation; and
32             (iv)  any other agency created by Act of Congress.
33        The Treasurer may, with the  approval  of  the  Governor,
34    lend  any  securities  acquired  under  this  Act.   However,
 
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 1    securities  may be lent under this Section only in accordance
 2    with  Federal  Financial  Institution   Examination   Council
 3    guidelines and only if the securities are collateralized at a
 4    level  sufficient  to  assure  the  safety of the securities,
 5    taking into account market value fluctuation.  The securities
 6    may be collateralized by cash or collateral acceptable  under
 7    Sections 11 and 11.1.
 8    (Source: P.A.  92-546,  eff.  1-1-03;  92-851,  eff. 8-26-02;
 9    revised 9-19-02.)