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Full Text of SB2858  100th General Assembly

SB2858enr 100TH GENERAL ASSEMBLY

  
  
  

 


 
SB2858 EnrolledLRB100 18839 RJF 34081 b

1    AN ACT concerning State government.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
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
17specified, first-lien conventional residential Illinois
18mortgages that are underwritten, insured, guaranteed, or
19purchased by the Federal Home Loan Mortgage Corporation or in
20Affordable Housing Program Trust Fund Bonds or Notes as defined
21in and issued pursuant to the Illinois Housing Development Act.
22All such obligations shall be considered as cash and may be
23delivered over as cash by a State Treasurer to his successor.

 

 

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1    The State Treasurer may, with the approval of the Governor,
2purchase any state bonds with any money in the State Treasury
3that has been set aside and held for the payment of the
4principal of and interest on the bonds. The bonds shall be
5considered as cash and may be delivered over as cash by the
6State Treasurer to his successor.
7    The State Treasurer may, with the approval of the Governor,
8invest or reinvest any State money in the treasury that is not
9needed for current expenditure due or about to become due, or
10any money in the State Treasury that has been set aside and
11held for the payment of the principal of and the interest on
12any State bonds, in shares, withdrawable accounts, and
13investment certificates of savings and building and loan
14associations, incorporated under the laws of this State or any
15other state or under the laws of the United States; provided,
16however, that investments may be made only in those savings and
17loan or building and loan associations the shares and
18withdrawable accounts or other forms of investment securities
19of which are insured by the Federal Deposit Insurance
20Corporation.
21    The State Treasurer may not invest State money in any
22savings and loan or building and loan association unless a
23commitment by the savings and loan (or building and loan)
24association, executed by the president or chief executive
25officer of that association, is submitted in the following
26form:

 

 

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

 

 

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1however, that such loan participations are represented by
2certificates issued only by banks which are incorporated under
3the laws of this State or any other state or under the laws of
4the United States, and such banks, but not the loan
5participation certificates, are insured by the Federal Deposit
6Insurance Corporation.
7    Whenever the total amount of vouchers presented to the
8Comptroller under Section 9 of the State Comptroller Act
9exceeds the funds available in the General Revenue Fund by
10$1,000,000,000 or more, then the State Treasurer may invest any
11State money in the Treasury, other than money in the General
12Revenue Fund, Health Insurance Reserve Fund, Attorney General
13Court Ordered and Voluntary Compliance Payment Projects Fund,
14Attorney General Whistleblower Reward and Protection Fund, and
15Attorney General's State Projects and Court Ordered
16Distribution Fund, which is not needed for current
17expenditures, due or about to become due, or any money in the
18State Treasury which has been set aside and held for the
19payment of the principal of and the interest on any State bonds
20with the Office of the Comptroller in order to enable the
21Comptroller to pay outstanding vouchers. At any time, and from
22time to time outstanding, such investment shall not be greater
23than $2,000,000,000. Such investment shall be deposited into
24the General Revenue Fund or Health Insurance Reserve Fund as
25determined by the Comptroller. Such investment shall be repaid
26by the Comptroller with an interest rate tied to the London

 

 

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1Interbank Offered Rate (LIBOR) or the Federal Funds Rate or an
2equivalent market established variable rate, but in no case
3shall such interest rate exceed the lesser of the penalty rate
4established under the State Prompt Payment Act or the timely
5pay interest rate under Section 368a of the Illinois Insurance
6Code. The State Treasurer and the Comptroller shall enter into
7an intergovernmental agreement to establish procedures for
8such investments, which market established variable rate to
9which the interest rate for the investments should be tied, and
10other terms which the State Treasurer and Comptroller
11reasonably believe to be mutually beneficial concerning these
12investments by the State Treasurer. The State Treasurer and
13Comptroller shall also enter into a written agreement for each
14such investment that specifies the period of the investment,
15the payment interval, the interest rate to be paid, the funds
16in the Treasury from which the Treasurer will draw the
17investment, and other terms upon which the State Treasurer and
18Comptroller mutually agree. Such investment agreements shall
19be public records and the State Treasurer shall post the terms
20of all such investment agreements on the State Treasurer's
21official website. In compliance with the intergovernmental
22agreement, the Comptroller shall order and the State Treasurer
23shall transfer amounts sufficient for the payment of principal
24and interest invested by the State Treasurer with the Office of
25the Comptroller under this paragraph from the General Revenue
26Fund or the Health Insurance Reserve Fund to the respective

 

 

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1funds in the Treasury from which the State Treasurer drew the
2investment. This amendatory Act of the 100th General Assembly
3shall constitute an irrevocable and continuing authority for
4all amounts necessary for the payment of principal and interest
5on the investments made with the Office of the Comptroller by
6the State Treasurer under this paragraph, and the irrevocable
7and continuing authority for and direction to the Comptroller
8and Treasurer to make the necessary transfers.
9    The State Treasurer may, with the approval of the Governor,
10invest or reinvest any State money in the Treasury that is not
11needed for current expenditure, due or about to become due, or
12any money in the State Treasury that has been set aside and
13held for the payment of the principal of and the interest on
14any State bonds, in any of the following:
15        (1) Bonds, notes, certificates of indebtedness,
16    Treasury bills, or other securities now or hereafter issued
17    that are guaranteed by the full faith and credit of the
18    United States of America as to principal and interest.
19        (2) Bonds, notes, debentures, or other similar
20    obligations of the United States of America, its agencies,
21    and instrumentalities.
22        (2.5) Bonds, notes, debentures, or other similar
23    obligations of a foreign government, other than the
24    Republic of the Sudan, that are guaranteed by the full
25    faith and credit of that government as to principal and
26    interest, but only if the foreign government has not

 

 

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1    defaulted and has met its payment obligations in a timely
2    manner on all similar obligations for a period of at least
3    25 years immediately before the time of acquiring those
4    obligations.
5        (3) Interest-bearing savings accounts,
6    interest-bearing certificates of deposit, interest-bearing
7    time deposits, or any other investments constituting
8    direct obligations of any bank as defined by the Illinois
9    Banking Act.
10        (4) Interest-bearing accounts, certificates of
11    deposit, or any other investments constituting direct
12    obligations of any savings and loan associations
13    incorporated under the laws of this State or any other
14    state or under the laws of the United States.
15        (5) Dividend-bearing share accounts, share certificate
16    accounts, or class of share accounts of a credit union
17    chartered under the laws of this State or the laws of the
18    United States; provided, however, the principal office of
19    the credit union must be located within the State of
20    Illinois.
21        (6) Bankers' acceptances of banks whose senior
22    obligations are rated in the top 2 rating categories by 2
23    national rating agencies and maintain that rating during
24    the term of the investment.
25        (7) Short-term obligations of either corporations or
26    limited liability companies organized in the United States

 

 

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1    with assets exceeding $500,000,000 if (i) the obligations
2    are rated at the time of purchase at one of the 3 highest
3    classifications established by at least 2 standard rating
4    services and mature not later than 270 days from the date
5    of purchase, (ii) the purchases do not exceed 10% of the
6    corporation's or the limited liability company's
7    outstanding obligations, (iii) no more than one-third of
8    the public agency's funds are invested in short-term
9    obligations of either corporations or limited liability
10    companies, and (iv) the corporation or the limited
11    liability company has not been placed on the list of
12    restricted companies by the Illinois Investment Policy
13    Board under Section 1-110.16 of the Illinois Pension Code.
14        (7.5) Obligations of either corporations or limited
15    liability companies organized in the United States, that
16    have a significant presence in this State, with assets
17    exceeding $500,000,000 if: (i) the obligations are rated at
18    the time of purchase at one of the 3 highest
19    classifications established by at least 2 standard rating
20    services and mature more than 270 days, but less than 5
21    years, from the date of purchase; (ii) the purchases do not
22    exceed 10% of the corporation's or the limited liability
23    company's outstanding obligations; (iii) no more than 5% of
24    the public agency's funds are invested in such obligations
25    of corporations or limited liability companies; and (iv)
26    the corporation or the limited liability company has not

 

 

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1    been placed on the list of restricted companies by the
2    Illinois Investment Policy Board under Section 1-110.16 of
3    the Illinois Pension Code. The authorization of the
4    Treasurer to invest in new obligations under this paragraph
5    shall expire on June 30, 2019.
6        (8) Money market mutual funds registered under the
7    Investment Company Act of 1940, provided that the portfolio
8    of the money market mutual fund is limited to obligations
9    described in this Section and to agreements to repurchase
10    such obligations.
11        (9) The Public Treasurers' Investment Pool created
12    under Section 17 of the State Treasurer Act or in a fund
13    managed, operated, and administered by a bank.
14        (10) Repurchase agreements of government securities
15    having the meaning set out in the Government Securities Act
16    of 1986, as now or hereafter amended or succeeded, subject
17    to the provisions of that Act and the regulations issued
18    thereunder.
19        (11) Investments made in accordance with the
20    Technology Development Act.
21    For purposes of this Section, "agencies" of the United
22States Government includes:
23        (i) the federal land banks, federal intermediate
24    credit banks, banks for cooperatives, federal farm credit
25    banks, or any other entity authorized to issue debt
26    obligations under the Farm Credit Act of 1971 (12 U.S.C.

 

 

SB2858 Enrolled- 10 -LRB100 18839 RJF 34081 b

1    2001 et seq.) and Acts amendatory thereto;
2        (ii) the federal home loan banks and the federal home
3    loan mortgage corporation;
4        (iii) the Commodity Credit Corporation; and
5        (iv) any other agency created by Act of Congress.
6    The Treasurer may, with the approval of the Governor, lend
7any securities acquired under this Act. However, securities may
8be lent under this Section only in accordance with Federal
9Financial Institution Examination Council guidelines and only
10if the securities are collateralized at a level sufficient to
11assure the safety of the securities, taking into account market
12value fluctuation. The securities may be collateralized by cash
13or collateral acceptable under Sections 11 and 11.1.
14(Source: P.A. 99-856, eff. 8-19-16.)
 
15    Section 99. Effective date. This Act takes effect upon
16becoming law.