[ Search ] [ Legislation ] [ Bill Summary ]
[ Home ] [ Back ] [ Bottom ]
|[ Introduced ]|
90_HB0201eng 5 ILCS 220/15 Amends the Intergovernmental Cooperation Act. Provides that risk management entities may invest up to 50% of the aggregate book value of all of their investments as measured at the time the investments are made. Authorizes the entities to invest in any combination of common and preferred stocks, convertible debt securities, and investment grade corporate bonds authorized for investment of trust funds provided that the stock or convertible debt meets certain requirements, commercial grade real estate located in Illinois if the real estate is necessary to provide offices for the day-to-day business operations of the intergovernmental risk management entity, and mutual funds or commingled funds that meet certain requirements. Removes the authorization for other types of investments. Provides that a risk management entity may not accept the deposit of public funds except for risk management purposes. Effective immediately. LRB9000726DNmb HB0201 Engrossed LRB9000726DNmb 1 AN ACT to amend the Intergovernmental Cooperation Act by 2 changing Section 15. 3 Be it enacted by the People of the State of Illinois, 4 represented in the General Assembly: 5 Section 5. The Intergovernmental Cooperation Act is 6 amended by changing Section 15 as follows: 7 (5 ILCS 220/15) 8 Sec. 15. Authorized investments. In addition to other 9 investments authorized by law, an intergovernmental risk 10 management entity created under Section 6 of this Act with 11 assets of at least $5,000,000 and adopting an investment 12 policy under Section 16 of this Act may invest up to 50% of 13 the aggregate book value of all of its investments as 14 measured at the time the investments are made in any 15 combination of the following: 16 (1) common and preferred stocks and convertible 17 debt securities and investment grade corporate bonds 18 authorized for investment of trust funds under the laws 19 of the State of Illinois, provided: 20 (i) the common stocks, except as provided in 21 subparagraph (vi), are listed on a national 22 securities exchange as defined in the federal 23 Securities Exchange Act, or quoted in the National 24 Association of Securities Dealers Automated 25 Quotation System (NASDAQ) or other recognized 26 exchange or market as defined in the investment 27 policy adopted pursuant to Section 16 of this Act; 28 (ii) the securities are of a corporation 29 created or existing under the laws of the United 30 States or any state, district, or territory of the 31 United States; HB0201 Engrossed -2- LRB9000726DNmb 1 (iii) the corporation is not in arrears on 2 payment of dividends on its preferred stock; 3 (iv) the book value of stock and convertible 4 debt investments in any one corporation shall not 5 exceed 5% of the total investment account at book 6 value in which the securities are held, determined 7 as of the date of the investment, and the 8 investments in the stock of any one corporation 9 shall not exceed 5% of the total outstanding stock 10 of that corporation, and the investments in the 11 convertible debt of any one corporation shall not 12 exceed 5% of the total amount of the debt that may 13 be outstanding; 14 (v) the straight preferred stocks or 15 convertible preferred stocks and convertible debt 16 securities are issued or guaranteed by a corporation 17 whose common stock qualifies for investment by the 18 intergovernmental risk management entity under 19 subparagraph (i) or (vi); and 20 (vi) any common stocks not listed or quoted as 21 provided in subparagraph (i) above shall be limited 22 to the following types of institutions: any bank 23 that is a member of the Federal Deposit Insurance 24 Corporation having capital funds represented by 25 capital stock, surplus and undivided profits of at 26 least $20,000,000; any life insurance company having 27 capital funds represented by capital stock, special 28 surplus funds, and unassigned surplus totalling at 29 least $50,000,000; and any fire or casualty 30 insurance company, or a combination of those 31 companies, having capital funds represented by 32 capital stock, net surplus, and voluntary reserves 33 of at least $50,000,000;
the common stocks listed on34 a recognized exchange or market;HB0201 Engrossed -3- LRB9000726DNmb 1 (2) stock and convertible debt investments, or2 investment grade corporate bonds, in or issued by any3 corporation the book value of which shall not exceed 5%4 of the total intergovernmental risk management entity's5 investment account at book value in which those6 securities are held, determined as of the date of the7 investment, provided that investments in the stock of any8 one corporation shall not exceed 5% of the total9 outstanding stock of the corporation and that the10 investments in the convertible debt of any one11 corporation shall not exceed 5% of the total amount of12 such debt that may be outstanding;13 (3) the straight preferred stocks or convertible14 preferred stocks and convertible debt securities issued15 or guaranteed by a corporation whose common stock is16 listed on a recognized exchange or market;17 (2) (4)mutual funds or commingled funds that meet 18 the following requirements: 19 (i) the mutual fund or commingled fund is 20 managed by an investment company as defined and 21 registered under the federal Investment Company Act 22 of 1940 and registered under the Illinois Securities 23 Law of 1953 or an investment adviser as defined and 24 registered under the federal Investment Advisers Act 25 of 1940 and registered under the Illinois Securities 26 Law of 1953; 27 (ii) the mutual fund has been in operation for 28 at least 5 years; and29 (iii) the mutual fund has total net assets of 30 $250,000,000 or more; and 31 (iv) the fund is comprised solely of common or 32 preferred stocks, bonds, money market instruments, 33 or other types of investments that the 34 intergovernmental risk management entity is HB0201 Engrossed -4- LRB9000726DNmb 1 authorized to invest in directly; and 2 (3) commercial grade real estate located in the 3 State of Illinois necessary to provide offices for the 4 day-to-day business operations of the intergovernmental 5 risk management entity. 6 (5) commercial grade real estate located in the7 State of Illinois.8 Any investment advisor retained by the board of the 9 intergovernmental risk management entity must be a fiduciary, 10 who has the power to manage, acquire, or dispose of any asset 11 of the intergovernmental risk management entity, has 12 acknowledged in writing that he or she is a fiduciary with 13 respect to the intergovernmental risk management entity and 14 that he or she has read and understands the intergovernmental 15 risk management entity's investment policy and will adhere to 16 all of the principles and standards set forth in that policy, 17 and is one or more of the following: 18 (i) registered as an investment adviser under the 19 federal Investment Adviser Act of 1940; 20 (ii) registered as an investment adviser under the 21 Illinois Securities Law of 1953; 22 (iii) a bank, as defined in the federal Investment 23 Adviser Act of 1940; 24 (iv) an insurance company authorized to transact 25 business in this State. 26 Nothing in this Section shall be construed to authorize 27 an intergovernmental risk management entity to accept the 28 deposit of public funds except for risk management purposes. 29 (Source: P.A. 89-592, eff. 8-1-96.) 30 Section 99. Effective date. This Act takes effect upon 31 becoming law.
[ Top ]