Public Act 101-0206
 
SB1289 EnrolledLRB101 08063 RJF 53125 b

    AN ACT concerning State government.
 
    Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
 
    Section 5. The Deposit of State Moneys Act is amended by
changing Sections 10, 11, and 22.5 as follows:
 
    (15 ILCS 520/10)  (from Ch. 130, par. 29)
    Sec. 10. The State Treasurer may enter into agreement in
conformity with this Act with any bank or savings and loan
association relating to the deposit of securities. Such
agreement may authorize the holding by such bank or savings and
loan association of such securities in custody and safekeeping
solely under the instructions of the State Treasurer either (a)
in the office of such bank or savings and loan association, or
under the custody and safekeeping of another bank or savings
and loan association in this State for the depository bank or
savings and loan association, or (b) in if the securities to be
deposited are held in custody and safekeeping for such bank or
savings and loan association by a bank or a depository trust
company in the United States if the securities to be deposited
are held in custody and safekeeping for such bank or savings
and loan association New York City, then in such New York bank
or depository trust company.
(Source: P.A. 83-541.)
 
    (15 ILCS 520/11)  (from Ch. 130, par. 30)
    Sec. 11. Protection of public deposits; eligible
collateral.
    (a) For deposits not insured by an agency of the federal
government, the State Treasurer, in his or her discretion, may
accept as collateral any of the following classes of
securities, provided there has been no default in the payment
of principal or interest thereon:
        (1) Bonds, notes, or other securities constituting
    direct and general obligations of the United States, the
    bonds, notes, or other securities constituting the direct
    and general obligation of any agency or instrumentality of
    the United States, the interest and principal of which is
    unconditionally guaranteed by the United States, and
    bonds, notes, or other securities or evidence of
    indebtedness constituting the obligation of a U.S. agency
    or instrumentality.
        (2) Direct and general obligation bonds of the State of
    Illinois or of any other state of the United States.
        (3) Revenue bonds of this State or any authority,
    board, commission, or similar agency thereof.
        (4) Direct and general obligation bonds of any city,
    town, county, school district, or other taxing body of any
    state, the debt service of which is payable from general ad
    valorem taxes.
        (5) Revenue bonds of any city, town, county, or school
    district of the State of Illinois.
        (6) Obligations issued, assumed, or guaranteed by the
    International Finance Corporation, the principal of which
    is not amortized during the life of the obligation, but no
    such obligation shall be accepted at more than 90% of its
    market value.
        (7) Illinois Affordable Housing Program Trust Fund
    Bonds or Notes as defined in and issued pursuant to the
    Illinois Housing Development Act.
        (8) In an amount equal to at least market value of that
    amount of funds deposited exceeding the insurance
    limitation provided by the Federal Deposit Insurance
    Corporation or the National Credit Union Administration or
    other approved share insurer: (i) securities, (ii)
    mortgages, (iii) letters of credit issued by a Federal Home
    Loan Bank, or (iv) loans covered by a State Guarantee under
    the Illinois Farm Development Act, if that guarantee has
    been assumed by the Illinois Finance Authority under
    Section 845-75 of the Illinois Finance Authority Act, and
    loans covered by a State Guarantee under Article 830 of the
    Illinois Finance Authority Act.
        (9) Obligations of either corporations or limited
    liability companies organized in the United States with
    assets exceeding $500,000,000 if: (i) the obligations are
    rated at the time of purchase at one of the 3 highest
    classifications established by at least 2 standard rating
    services and mature more than 270 days, but less than 5
    years, from the date of purchase; and (ii) the corporation
    or the limited liability company has not been placed on the
    list of restricted companies by the Illinois Investment
    Policy Board under Section 1-110.16 of the Illinois Pension
    Code.
    (b) The State Treasurer may establish a system to aggregate
permissible securities received as collateral from financial
institutions in a collateral pool to secure State deposits of
the institutions that have pledged securities to the pool.
    (c) The Treasurer may at any time declare any particular
security ineligible to qualify as collateral when, in the
Treasurer's judgment, it is deemed desirable to do so.
    (d) Notwithstanding any other provision of this Section, as
security the State Treasurer may, in his discretion, accept a
bond, executed by a company authorized to transact the kinds of
business described in clause (g) of Section 4 of the Illinois
Insurance Code, in an amount not less than the amount of the
deposits required by this Section to be secured, payable to the
State Treasurer for the benefit of the People of the State of
Illinois, in a form that is acceptable to the State Treasurer.
(Source: P.A. 95-331, eff. 8-21-07.)
 
    (15 ILCS 520/22.5)  (from Ch. 130, par. 41a)
    (For force and effect of certain provisions, see Section 90
of P.A. 94-79)
    Sec. 22.5. Permitted investments. The State Treasurer may,
with the approval of the Governor, invest and reinvest any
State money in the treasury which is not needed for current
expenditures due or about to become due, in obligations of the
United States government or its agencies or of National
Mortgage Associations established by or under the National
Housing Act, 12 1201 U.S.C. 1701 et seq., or in mortgage
participation certificates representing undivided interests in
specified, first-lien conventional residential Illinois
mortgages that are underwritten, insured, guaranteed, or
purchased by the Federal Home Loan Mortgage Corporation or in
Affordable Housing Program Trust Fund Bonds or Notes as defined
in and issued pursuant to the Illinois Housing Development Act.
All such obligations shall be considered as cash and may be
delivered over as cash by a State Treasurer to his successor.
    The State Treasurer may, with the approval of the Governor,
purchase any state bonds with any money in the State Treasury
that has been set aside and held for the payment of the
principal of and interest on the bonds. The bonds shall be
considered as cash and may be delivered over as cash by the
State Treasurer to his successor.
    The State Treasurer may, with the approval of the Governor,
invest or reinvest any State money in the treasury that is not
needed for current expenditure due or about to become due, or
any money in the State Treasury that has been set aside and
held for the payment of the principal of and the interest on
any State bonds, in shares, withdrawable accounts, and
investment certificates of savings and building and loan
associations, incorporated under the laws of this State or any
other state or under the laws of the United States; provided,
however, that investments may be made only in those savings and
loan or building and loan associations the shares and
withdrawable accounts or other forms of investment securities
of which are insured by the Federal Deposit Insurance
Corporation.
    The State Treasurer may not invest State money in any
savings and loan or building and loan association unless a
commitment by the savings and loan (or building and loan)
association, executed by the president or chief executive
officer of that association, is submitted in the following
form:
        The .................. Savings and Loan (or Building
    and Loan) Association pledges not to reject arbitrarily
    mortgage loans for residential properties within any
    specific part of the community served by the savings and
    loan (or building and loan) association because of the
    location of the property. The savings and loan (or building
    and loan) association also pledges to make loans available
    on low and moderate income residential property throughout
    the community within the limits of its legal restrictions
    and prudent financial practices.
    The State Treasurer may, with the approval of the Governor,
invest or reinvest, at a price not to exceed par, any State
money in the treasury that is not needed for current
expenditures due or about to become due, or any money in the
State Treasury that has been set aside and held for the payment
of the principal of and interest on any State bonds, in bonds
issued by counties or municipal corporations of the State of
Illinois.
    The State Treasurer may invest or reinvest up to 5% of the
College Savings Pool Administrative Trust Fund, the Illinois
Public Treasurer Investment Pool (IPTIP) Administrative Trust
Fund, and the State Treasurer's Administrative Fund that is not
needed for current expenditures due or about to become due, in
common or preferred stocks of publicly traded corporations,
partnerships, or limited liability companies, organized in the
United States, with assets exceeding $500,000,000 if: (i) the
purchases do not exceed 1% of the corporation's or the limited
liability company's outstanding common and preferred stock;
(ii) no more than 10% of the total funds are invested in any
one publicly traded corporation, partnership, or limited
liability company; and (iii) the corporation or the limited
liability company has not been placed on the list of restricted
companies by the Illinois Investment Policy Board under Section
1-110.16 of the Illinois Pension Code.
    The State Treasurer may, with the approval of the Governor,
invest or reinvest any State money in the Treasury which is not
needed for current expenditure, due or about to become due, or
any money in the State Treasury which has been set aside and
held for the payment of the principal of and the interest on
any State bonds, in participations in loans, the principal of
which participation is fully guaranteed by an agency or
instrumentality of the United States government; provided,
however, that such loan participations are represented by
certificates issued only by banks which are incorporated under
the laws of this State or any other state or under the laws of
the United States, and such banks, but not the loan
participation certificates, are insured by the Federal Deposit
Insurance Corporation.
    Whenever the total amount of vouchers presented to the
Comptroller under Section 9 of the State Comptroller Act
exceeds the funds available in the General Revenue Fund by
$1,000,000,000 or more, then the State Treasurer may invest any
State money in the Treasury, other than money in the General
Revenue Fund, Health Insurance Reserve Fund, Attorney General
Court Ordered and Voluntary Compliance Payment Projects Fund,
Attorney General Whistleblower Reward and Protection Fund, and
Attorney General's State Projects and Court Ordered
Distribution Fund, which is not needed for current
expenditures, due or about to become due, or any money in the
State Treasury which has been set aside and held for the
payment of the principal of and the interest on any State bonds
with the Office of the Comptroller in order to enable the
Comptroller to pay outstanding vouchers. At any time, and from
time to time outstanding, such investment shall not be greater
than $2,000,000,000. Such investment shall be deposited into
the General Revenue Fund or Health Insurance Reserve Fund as
determined by the Comptroller. Such investment shall be repaid
by the Comptroller with an interest rate tied to the London
Interbank Offered Rate (LIBOR) or the Federal Funds Rate or an
equivalent market established variable rate, but in no case
shall such interest rate exceed the lesser of the penalty rate
established under the State Prompt Payment Act or the timely
pay interest rate under Section 368a of the Illinois Insurance
Code. The State Treasurer and the Comptroller shall enter into
an intergovernmental agreement to establish procedures for
such investments, which market established variable rate to
which the interest rate for the investments should be tied, and
other terms which the State Treasurer and Comptroller
reasonably believe to be mutually beneficial concerning these
investments by the State Treasurer. The State Treasurer and
Comptroller shall also enter into a written agreement for each
such investment that specifies the period of the investment,
the payment interval, the interest rate to be paid, the funds
in the Treasury from which the Treasurer will draw the
investment, and other terms upon which the State Treasurer and
Comptroller mutually agree. Such investment agreements shall
be public records and the State Treasurer shall post the terms
of all such investment agreements on the State Treasurer's
official website. In compliance with the intergovernmental
agreement, the Comptroller shall order and the State Treasurer
shall transfer amounts sufficient for the payment of principal
and interest invested by the State Treasurer with the Office of
the Comptroller under this paragraph from the General Revenue
Fund or the Health Insurance Reserve Fund to the respective
funds in the Treasury from which the State Treasurer drew the
investment. Public Act 100-1107 This amendatory Act of the
100th General Assembly shall constitute an irrevocable and
continuing authority for all amounts necessary for the payment
of principal and interest on the investments made with the
Office of the Comptroller by the State Treasurer under this
paragraph, and the irrevocable and continuing authority for and
direction to the Comptroller and Treasurer to make the
necessary transfers.
    The State Treasurer may, with the approval of the Governor,
invest or reinvest any State money in the Treasury that is not
needed for current expenditure, due or about to become due, or
any money in the State Treasury that has been set aside and
held for the payment of the principal of and the interest on
any State bonds, in any of the following:
        (1) Bonds, notes, certificates of indebtedness,
    Treasury bills, or other securities now or hereafter issued
    that are guaranteed by the full faith and credit of the
    United States of America as to principal and interest.
        (2) Bonds, notes, debentures, or other similar
    obligations of the United States of America, its agencies,
    and instrumentalities.
        (2.5) Bonds, notes, debentures, or other similar
    obligations of a foreign government, other than the
    Republic of the Sudan, that are guaranteed by the full
    faith and credit of that government as to principal and
    interest, but only if the foreign government has not
    defaulted and has met its payment obligations in a timely
    manner on all similar obligations for a period of at least
    25 years immediately before the time of acquiring those
    obligations.
        (3) Interest-bearing savings accounts,
    interest-bearing certificates of deposit, interest-bearing
    time deposits, or any other investments constituting
    direct obligations of any bank as defined by the Illinois
    Banking Act.
        (4) Interest-bearing accounts, certificates of
    deposit, or any other investments constituting direct
    obligations of any savings and loan associations
    incorporated under the laws of this State or any other
    state or under the laws of the United States.
        (5) Dividend-bearing share accounts, share certificate
    accounts, or class of share accounts of a credit union
    chartered under the laws of this State or the laws of the
    United States; provided, however, the principal office of
    the credit union must be located within the State of
    Illinois.
        (6) Bankers' acceptances of banks whose senior
    obligations are rated in the top 2 rating categories by 2
    national rating agencies and maintain that rating during
    the term of the investment.
        (7) Short-term obligations of either corporations or
    limited liability companies organized in the United States
    with assets exceeding $500,000,000 if (i) the obligations
    are rated at the time of purchase at one of the 3 highest
    classifications established by at least 2 standard rating
    services and mature not later than 270 days from the date
    of purchase, (ii) the purchases do not exceed 10% of the
    corporation's or the limited liability company's
    outstanding obligations, (iii) no more than one-third of
    the public agency's funds are invested in short-term
    obligations of either corporations or limited liability
    companies, and (iv) the corporation or the limited
    liability company has not been placed on the list of
    restricted companies by the Illinois Investment Policy
    Board under Section 1-110.16 of the Illinois Pension Code.
        (7.5) Obligations of either corporations or limited
    liability companies organized in the United States, that
    have a significant presence in this State, with assets
    exceeding $500,000,000 if: (i) the obligations are rated at
    the time of purchase at one of the 3 highest
    classifications established by at least 2 standard rating
    services and mature more than 270 days, but less than 10 5
    years, from the date of purchase; (ii) the purchases do not
    exceed 10% of the corporation's or the limited liability
    company's outstanding obligations; (iii) no more than
    one-third 5% of the public agency's funds are invested in
    such obligations of corporations or limited liability
    companies; and (iv) the corporation or the limited
    liability company has not been placed on the list of
    restricted companies by the Illinois Investment Policy
    Board under Section 1-110.16 of the Illinois Pension Code.
    The authorization of the Treasurer to invest in new
    obligations under this paragraph shall expire on June 30,
    2019.
        (8) Money market mutual funds registered under the
    Investment Company Act of 1940, provided that the portfolio
    of the money market mutual fund is limited to obligations
    described in this Section and to agreements to repurchase
    such obligations.
        (9) The Public Treasurers' Investment Pool created
    under Section 17 of the State Treasurer Act or in a fund
    managed, operated, and administered by a bank.
        (10) Repurchase agreements of government securities
    having the meaning set out in the Government Securities Act
    of 1986, as now or hereafter amended or succeeded, subject
    to the provisions of that Act and the regulations issued
    thereunder.
        (11) Investments made in accordance with the
    Technology Development Act.
    For purposes of this Section, "agencies" of the United
States Government includes:
        (i) the federal land banks, federal intermediate
    credit banks, banks for cooperatives, federal farm credit
    banks, or any other entity authorized to issue debt
    obligations under the Farm Credit Act of 1971 (12 U.S.C.
    2001 et seq.) and Acts amendatory thereto;
        (ii) the federal home loan banks and the federal home
    loan mortgage corporation;
        (iii) the Commodity Credit Corporation; and
        (iv) any other agency created by Act of Congress.
    The Treasurer may, with the approval of the Governor, lend
any securities acquired under this Act. However, securities may
be lent under this Section only in accordance with Federal
Financial Institution Examination Council guidelines and only
if the securities are collateralized at a level sufficient to
assure the safety of the securities, taking into account market
value fluctuation. The securities may be collateralized by cash
or collateral acceptable under Sections 11 and 11.1.
(Source: P.A. 99-856, eff. 8-19-16; 100-1107, eff. 8-27-18;
revised 9-27-18.)
 
    Section 99. Effective date. This Act takes effect upon
becoming law.