(40 ILCS 5/5-187.1)
(from Ch. 108 1/2, par. 5-187.1)
To lend securities.
The Board may lend securities owned
by the Fund to a borrower upon such terms and conditions as may be mutually
agreed in writing. Such agreement shall provide that during the period
of such loan the Fund shall retain the right to receive, or collect from
the borrower, all dividends, interest rights, or any distributions to which
the Fund would have otherwise been entitled. The borrower shall deposit
with the Fund as collateral for such loan cash equal to the market value
of the securities at the time the loan is made and shall increase the amount
of collateral if and when the Fund shall request an additional amount because
of subsequent increased market value of the securities.
The period for which the securities may be loaned shall not exceed one
year, and the loan agreement may specify earlier termination by either party
upon mutually agreed conditions.
(Source: P.A. 83-823.)