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| [ Engrossed ] | [ Enrolled ] | [ Senate Amendment 001 ] |
91_SB1421
LRB9112239JSpc
1 AN ACT to amend the Illinois Banking Act by changing
2 Section 33.
3 Be it enacted by the People of the State of Illinois,
4 represented in the General Assembly:
5 Section 5. The Illinois Banking Act is amended by
6 changing Section 33 as follows:
7 (205 ILCS 5/33) (from Ch. 17, par. 341)
8 Sec. 33. Marketable investment securities limit. Any
9 State bank may purchase for its own account marketable
10 investment securities without regard to any other liability
11 to the bank of the maker, obligor, or guarantor of any
12 marketable investment securities, but the total amount of the
13 marketable investment securities of any one maker or obligor
14 held by the bank or for its account at any one time shall not
15 exceed 20% of its unimpaired capital and unimpaired surplus.
16 As used in this Section the term "marketable investment
17 securities" means marketable obligations evidencing
18 indebtedness of any person in the form of bonds, notes, or
19 debentures commonly known as investment securities;
20 obligations identified by certificates of participation in
21 investments the bank could have invested in directly; and
22 includes certificates of participation in open end investment
23 companies registered with the Securities and Exchange
24 Commission pursuant to the Investment Company Act of 1940 and
25 Securities Act of 1933 commonly referred to as mutual or
26 money market funds, provided the portfolios of those
27 investment companies consist of investments that a bank could
28 invest in directly. At the time of the purchase of a
29 marketable investment security by a State bank, the
30 marketable investment security securities shall be rated in
31 one of the top 4 rating categories by a national rating
-2- LRB9112239JSpc
1 service services and designated as an "investment grade" or
2 "bank quality investment investments" security securities.
3 The rating restriction on marketable investment securities
4 does not apply to securities that are issued by a public
5 agency as defined in Section 1 of the Public Funds Investment
6 Act.
7 (Source: P.A. 88-546; 89-364, eff. 8-18-95.)
8 Section 99. Effective date. This Act takes effect upon
9 becoming law.