(40 ILCS 5/17-146.2) (from Ch. 108 1/2, par. 17-146.2)
Sec. 17-146.2.
To lend securities.
The Board may
lend
securities owned by the Fund to a borrower upon such written terms and
conditions as may be mutually agreed. The agreement shall provide that
during the period of the loan the Fund (or the custodian of the Fund, or
agent thereof, as applicable) shall retain the right to receive or collect
from the borrower all dividends, interest and distributions to
which the Fund would have otherwise been entitled. The borrower shall
deposit with the Fund collateral for the loan equal to the market value of
the securities at the time the loan is made, and shall increase the amount
of collateral if the Board requests an additional amount because of
subsequent increased market value of the securities. The Board may accept
from the borrower cash collateral or collateral consisting of assets
described in Section 1-113 of this Act. To the extent that the Fund
participates in a securities lending program established and maintained by
(1) a national or State bank which is authorized to do business in the
State of Illinois, or (2) an investment manager, the Board may accept
collateral consisting of an undivided interest in a pool of commingled
collateral that has been established by the bank or investment
manager for the purpose of pooling collateral
received for the loans of securities owned by substantially all of
the participants in such bank's or investment manager's securities lending
program. Nothing in Sections 1-109, 1-110 or 1-113 of this Act shall be
construed to prohibit the Fund's lending of securities in accordance with this
Section.
(Source: P.A. 90-566, eff. 1-2-98.)
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