Rep. Al Riley

Filed: 3/14/2017

 

 


 

 


 
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1
AMENDMENT TO HOUSE BILL 3005

2    AMENDMENT NO. ______. Amend House Bill 3005 by replacing
3everything after the enacting clause with the following:
 
4    "Section 5. The Deposit of State Moneys Act is amended by
5changing Section 22.5 as follows:
 
6    (15 ILCS 520/22.5)  (from Ch. 130, par. 41a)
7    (For force and effect of certain provisions, see Section 90
8of P.A. 94-79)
9    Sec. 22.5. Permitted investments. The State Treasurer may,
10with the approval of the Governor, invest and reinvest any
11State money in the treasury which is not needed for current
12expenditures due or about to become due, in obligations of the
13United States government or its agencies or of National
14Mortgage Associations established by or under the National
15Housing Act, 1201 U.S.C. 1701 et seq., or in mortgage
16participation certificates representing undivided interests in

 

 

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1specified, first-lien conventional residential Illinois
2mortgages that are underwritten, insured, guaranteed, or
3purchased by the Federal Home Loan Mortgage Corporation or in
4Affordable Housing Program Trust Fund Bonds or Notes as defined
5in and issued pursuant to the Illinois Housing Development Act.
6All such obligations shall be considered as cash and may be
7delivered over as cash by a State Treasurer to his successor.
8    The State Treasurer may, with the approval of the Governor,
9purchase any state bonds with any money in the State Treasury
10that has been set aside and held for the payment of the
11principal of and interest on the bonds. The bonds shall be
12considered as cash and may be delivered over as cash by the
13State Treasurer to his successor.
14    The State Treasurer may, with the approval of the Governor,
15invest or reinvest any State money in the treasury that is not
16needed for current expenditure due or about to become due, or
17any money in the State Treasury that has been set aside and
18held for the payment of the principal of and the interest on
19any State bonds, in shares, withdrawable accounts, and
20investment certificates of savings and building and loan
21associations, incorporated under the laws of this State or any
22other state or under the laws of the United States; provided,
23however, that investments may be made only in those savings and
24loan or building and loan associations the shares and
25withdrawable accounts or other forms of investment securities
26of which are insured by the Federal Deposit Insurance

 

 

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1Corporation.
2    The State Treasurer may not invest State money in any
3savings and loan or building and loan association unless a
4commitment by the savings and loan (or building and loan)
5association, executed by the president or chief executive
6officer of that association, is submitted in the following
7form:
8        The .................. Savings and Loan (or Building
9    and Loan) Association pledges not to reject arbitrarily
10    mortgage loans for residential properties within any
11    specific part of the community served by the savings and
12    loan (or building and loan) association because of the
13    location of the property. The savings and loan (or building
14    and loan) association also pledges to make loans available
15    on low and moderate income residential property throughout
16    the community within the limits of its legal restrictions
17    and prudent financial practices.
18    The State Treasurer may, with the approval of the Governor,
19invest or reinvest, at a price not to exceed par, any State
20money in the treasury that is not needed for current
21expenditures due or about to become due, or any money in the
22State Treasury that has been set aside and held for the payment
23of the principal of and interest on any State bonds, in bonds
24issued by counties or municipal corporations of the State of
25Illinois. In the case of a default on a bond issued by a
26municipal corporation or county of the State of Illinois with

 

 

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1which State money in the Treasury was invested, the Treasurer
2may, after giving notice to the municipal corporation or
3county, certify to the Comptroller the amounts of the defaulted
4bonds, and the Comptroller must deduct and deposit into the
5Treasury the certified amounts or a portion of those amounts
6from the following proportions of grants of State funds to the
7municipality or county:
8        (1) in the first year after default, one-third of the
9    total amount of any grants of State funds to the municipal
10    corporation or county;
11        (2) in the second year after default, two-thirds of the
12    total amount of any grants of State funds to the municipal
13    corporation or county; and
14        (3) in the third year after default and for each year
15    thereafter until the total invested amount is repaid, the
16    total amount of any grants of State funds to the municipal
17    corporation or county.
18    The State Treasurer may, with the approval of the Governor,
19invest or reinvest any State money in the Treasury which is not
20needed for current expenditure, due or about to become due, or
21any money in the State Treasury which has been set aside and
22held for the payment of the principal of and the interest on
23any State bonds, in participations in loans, the principal of
24which participation is fully guaranteed by an agency or
25instrumentality of the United States government; provided,
26however, that such loan participations are represented by

 

 

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1certificates issued only by banks which are incorporated under
2the laws of this State or any other state or under the laws of
3the United States, and such banks, but not the loan
4participation certificates, are insured by the Federal Deposit
5Insurance Corporation.
6    The State Treasurer may, with the approval of the Governor,
7invest or reinvest any State money in the Treasury that is not
8needed for current expenditure, due or about to become due, or
9any money in the State Treasury that has been set aside and
10held for the payment of the principal of and the interest on
11any State bonds, in any of the following:
12        (1) Bonds, notes, certificates of indebtedness,
13    Treasury bills, or other securities now or hereafter issued
14    that are guaranteed by the full faith and credit of the
15    United States of America as to principal and interest.
16        (2) Bonds, notes, debentures, or other similar
17    obligations of the United States of America, its agencies,
18    and instrumentalities.
19        (2.5) Bonds, notes, debentures, or other similar
20    obligations of a foreign government, other than the
21    Republic of the Sudan, that are guaranteed by the full
22    faith and credit of that government as to principal and
23    interest, but only if the foreign government has not
24    defaulted and has met its payment obligations in a timely
25    manner on all similar obligations for a period of at least
26    25 years immediately before the time of acquiring those

 

 

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1    obligations.
2        (3) Interest-bearing savings accounts,
3    interest-bearing certificates of deposit, interest-bearing
4    time deposits, or any other investments constituting
5    direct obligations of any bank as defined by the Illinois
6    Banking Act.
7        (4) Interest-bearing accounts, certificates of
8    deposit, or any other investments constituting direct
9    obligations of any savings and loan associations
10    incorporated under the laws of this State or any other
11    state or under the laws of the United States.
12        (5) Dividend-bearing share accounts, share certificate
13    accounts, or class of share accounts of a credit union
14    chartered under the laws of this State or the laws of the
15    United States; provided, however, the principal office of
16    the credit union must be located within the State of
17    Illinois.
18        (6) Bankers' acceptances of banks whose senior
19    obligations are rated in the top 2 rating categories by 2
20    national rating agencies and maintain that rating during
21    the term of the investment.
22        (7) Short-term obligations of either corporations or
23    limited liability companies organized in the United States
24    with assets exceeding $500,000,000 if (i) the obligations
25    are rated at the time of purchase at one of the 3 highest
26    classifications established by at least 2 standard rating

 

 

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1    services and mature not later than 270 days from the date
2    of purchase, (ii) the purchases do not exceed 10% of the
3    corporation's or the limited liability company's
4    outstanding obligations, (iii) no more than one-third of
5    the public agency's funds are invested in short-term
6    obligations of either corporations or limited liability
7    companies, and (iv) the corporation or the limited
8    liability company has not been placed on the list of
9    restricted companies by the Illinois Investment Policy
10    Board under Section 1-110.16 of the Illinois Pension Code.
11        (7.5) Obligations of either corporations or limited
12    liability companies organized in the United States, that
13    have a significant presence in this State, with assets
14    exceeding $500,000,000 if: (i) the obligations are rated at
15    the time of purchase at one of the 3 highest
16    classifications established by at least 2 standard rating
17    services and mature more than 270 days, but less than 5
18    years, from the date of purchase; (ii) the purchases do not
19    exceed 10% of the corporation's or the limited liability
20    company's outstanding obligations; (iii) no more than 5% of
21    the public agency's funds are invested in such obligations
22    of corporations or limited liability companies; and (iv)
23    the corporation or the limited liability company has not
24    been placed on the list of restricted companies by the
25    Illinois Investment Policy Board under Section 1-110.16 of
26    the Illinois Pension Code. The authorization of the

 

 

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1    Treasurer to invest in new obligations under this paragraph
2    shall expire on June 30, 2019.
3        (8) Money market mutual funds registered under the
4    Investment Company Act of 1940, provided that the portfolio
5    of the money market mutual fund is limited to obligations
6    described in this Section and to agreements to repurchase
7    such obligations.
8        (9) The Public Treasurers' Investment Pool created
9    under Section 17 of the State Treasurer Act or in a fund
10    managed, operated, and administered by a bank.
11        (10) Repurchase agreements of government securities
12    having the meaning set out in the Government Securities Act
13    of 1986, as now or hereafter amended or succeeded, subject
14    to the provisions of that Act and the regulations issued
15    thereunder.
16        (11) Investments made in accordance with the
17    Technology Development Act.
18    For purposes of this Section, "agencies" of the United
19States Government includes:
20        (i) the federal land banks, federal intermediate
21    credit banks, banks for cooperatives, federal farm credit
22    banks, or any other entity authorized to issue debt
23    obligations under the Farm Credit Act of 1971 (12 U.S.C.
24    2001 et seq.) and Acts amendatory thereto;
25        (ii) the federal home loan banks and the federal home
26    loan mortgage corporation;

 

 

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1        (iii) the Commodity Credit Corporation; and
2        (iv) any other agency created by Act of Congress.
3    The Treasurer may, with the approval of the Governor, lend
4any securities acquired under this Act. However, securities may
5be lent under this Section only in accordance with Federal
6Financial Institution Examination Council guidelines and only
7if the securities are collateralized at a level sufficient to
8assure the safety of the securities, taking into account market
9value fluctuation. The securities may be collateralized by cash
10or collateral acceptable under Sections 11 and 11.1.
11(Source: P.A. 99-856, eff. 8-19-16.)
 
12    Section 99. Effective date. This Act takes effect upon
13becoming law.".