Sen. Suzi Schmidt

Filed: 4/8/2011

 

 


 

 


 
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1
AMENDMENT TO SENATE BILL 1263

2    AMENDMENT NO. ______. Amend Senate Bill 1263 by replacing
3everything after the enacting clause with the following:
 
4    "Section 5. The Deposit of State Moneys Act is amended by
5changing Section 22.5 as follows:
 
6    (15 ILCS 520/22.5)  (from Ch. 130, par. 41a)
7    (For force and effect of certain provisions, see Section 90
8of P.A. 94-79)
9    Sec. 22.5. Permitted investments. The State Treasurer may,
10with the approval of the Governor, invest and reinvest any
11State money in the treasury which is not needed for current
12expenditures due or about to become due, in obligations of the
13United States government or its agencies or of National
14Mortgage Associations established by or under the National
15Housing Act, 1201 U.S.C. 1701 et seq., or in mortgage
16participation certificates representing undivided interests in

 

 

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1specified, first-lien conventional residential Illinois
2mortgages that are underwritten, insured, guaranteed, or
3purchased by the Federal Home Loan Mortgage Corporation or in
4Affordable Housing Program Trust Fund Bonds or Notes as defined
5in and issued pursuant to the Illinois Housing Development Act.
6All such obligations shall be considered as cash and may be
7delivered over as cash by a State Treasurer to his successor.
8    The State Treasurer may, with the approval of the Governor,
9purchase any state bonds with any money in the State Treasury
10that has been set aside and held for the payment of the
11principal of and interest on the bonds. The bonds shall be
12considered as cash and may be delivered over as cash by the
13State Treasurer to his successor.
14    The State Treasurer may, with the approval of the Governor,
15invest or reinvest any State money in the treasury that is not
16needed for current expenditure due or about to become due, or
17any money in the State Treasury that has been set aside and
18held for the payment of the principal of and the interest on
19any State bonds, in shares, withdrawable accounts, and
20investment certificates of savings and building and loan
21associations, incorporated under the laws of this State or any
22other state or under the laws of the United States; provided,
23however, that investments may be made only in those savings and
24loan or building and loan associations the shares and
25withdrawable accounts or other forms of investment securities
26of which are insured by the Federal Deposit Insurance

 

 

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1Corporation.
2    The State Treasurer may not invest State money in any
3savings and loan or building and loan association unless a
4commitment by the savings and loan (or building and loan)
5association, executed by the president or chief executive
6officer of that association, is submitted in the following
7form:
8        The .................. Savings and Loan (or Building
9    and Loan) Association pledges not to reject arbitrarily
10    mortgage loans for residential properties within any
11    specific part of the community served by the savings and
12    loan (or building and loan) association because of the
13    location of the property. The savings and loan (or building
14    and loan) association also pledges to make loans available
15    on low and moderate income residential property throughout
16    the community within the limits of its legal restrictions
17    and prudent financial practices.
18    The State Treasurer may, with the approval of the Governor,
19invest or reinvest, at a price not to exceed par, any State
20money in the treasury that is not needed for current
21expenditures due or about to become due, or any money in the
22State Treasury that has been set aside and held for the payment
23of the principal of and interest on any State bonds, in bonds
24issued by counties or municipal corporations of the State of
25Illinois.
26    The State Treasurer may, with the approval of the Governor,

 

 

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1invest or reinvest any State money in the Treasury which is not
2needed for current expenditure, due or about to become due, or
3any money in the State Treasury which has been set aside and
4held for the payment of the principal of and the interest on
5any State bonds, in participations in loans, the principal of
6which participation is fully guaranteed by an agency or
7instrumentality of the United States government; provided,
8however, that such loan participations are represented by
9certificates issued only by banks which are incorporated under
10the laws of this State or any other state or under the laws of
11the United States, and such banks, but not the loan
12participation certificates, are insured by the Federal Deposit
13Insurance Corporation.
14    The State Treasurer may, with the approval of the Governor,
15invest or reinvest any State money in the Treasury that is not
16needed for current expenditure, due or about to become due, or
17any money in the State Treasury that has been set aside and
18held for the payment of the principal of and the interest on
19any State bonds, in any of the following:
20        (1) Bonds, notes, certificates of indebtedness,
21    Treasury bills, or other securities now or hereafter issued
22    that are guaranteed by the full faith and credit of the
23    United States of America as to principal and interest.
24        (2) Bonds, notes, debentures, or other similar
25    obligations of the United States of America, its agencies,
26    and instrumentalities.

 

 

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1        (2.5) Bonds, notes, debentures, or other similar
2    obligations of a foreign government, other than the
3    Republic of the Sudan, that are guaranteed by the full
4    faith and credit of that government as to principal and
5    interest, but only if the foreign government has not
6    defaulted and has met its payment obligations in a timely
7    manner on all similar obligations for a period of at least
8    25 years immediately before the time of acquiring those
9    obligations.
10        (3) Interest-bearing savings accounts,
11    interest-bearing certificates of deposit, interest-bearing
12    time deposits, or any other investments constituting
13    direct obligations of any bank as defined by the Illinois
14    Banking Act.
15        (4) Interest-bearing accounts, certificates of
16    deposit, or any other investments constituting direct
17    obligations of any savings and loan associations
18    incorporated under the laws of this State or any other
19    state or under the laws of the United States.
20        (5) Dividend-bearing share accounts, share certificate
21    accounts, or class of share accounts of a credit union
22    chartered under the laws of this State or the laws of the
23    United States; provided, however, the principal office of
24    the credit union must be located within the State of
25    Illinois.
26        (6) Bankers' acceptances of banks whose senior

 

 

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1    obligations are rated in the top 2 rating categories by 2
2    national rating agencies and maintain that rating during
3    the term of the investment.
4        (7) Short-term obligations of either corporations or
5    limited liability companies organized in the United States
6    with assets exceeding $500,000,000 if (i) the obligations
7    are rated at the time of purchase at one of the 3 highest
8    classifications established by at least 2 standard rating
9    services and mature not later than 270 days from the date
10    of purchase, (ii) the purchases do not exceed 10% of the
11    corporation's or the limited liability company's
12    outstanding obligations, (iii) no more than one-third of
13    the public agency's funds are invested in short-term
14    obligations of either corporations or limited liability
15    companies, and (iv) the corporation or the limited
16    liability company has not been identified as a forbidden
17    entity, as that term is defined in Section 1-110.6 of the
18    Illinois Pension Code, by an independent researching firm
19    that specializes in global security risk that has been
20    engaged by the State Treasurer.
21        (8) Money market mutual funds registered under the
22    Investment Company Act of 1940, provided that the portfolio
23    of the money market mutual fund is limited to obligations
24    described in this Section and to agreements to repurchase
25    such obligations.
26        (9) The Public Treasurers' Investment Pool created

 

 

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1    under Section 17 of the State Treasurer Act or in a fund
2    managed, operated, and administered by a bank.
3        (10) Repurchase agreements of government securities
4    having the meaning set out in the Government Securities Act
5    of 1986, as now or hereafter amended or succeeded, subject
6    to the provisions of that Act and the regulations issued
7    thereunder.
8        (11) Investments made in accordance with the
9    Technology Development Act.
10    For purposes of this Section, "agencies" of the United
11States Government includes:
12        (i) the federal land banks, federal intermediate
13    credit banks, banks for cooperatives, federal farm credit
14    banks, or any other entity authorized to issue debt
15    obligations under the Farm Credit Act of 1971 (12 U.S.C.
16    2001 et seq.) and Acts amendatory thereto;
17        (ii) the federal home loan banks and the federal home
18    loan mortgage corporation;
19        (iii) the Commodity Credit Corporation; and
20        (iv) any other agency created by Act of Congress.
21    The Treasurer may, with the approval of the Governor, lend
22any securities acquired under this Act. However, securities may
23be lent under this Section only in accordance with Federal
24Financial Institution Examination Council guidelines and only
25if the securities are collateralized at a level sufficient to
26assure the safety of the securities, taking into account market

 

 

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1value fluctuation. The securities may be collateralized by cash
2or collateral acceptable under Sections 11 and 11.1.
3(Source: P.A. 95-521, eff. 8-28-07; 96-469, eff. 8-14-09;
496-795, eff. 7-1-10 (see Section 5 of P.A. 96-793 for the
5effective date of changes made by P.A. 96-795); 96-870, eff.
61-21-10.)
 
7    Section 99. Effective date. This Act takes effect upon
8becoming law.".