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1    AN ACT concerning State government.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 5. The Deposit of State Moneys Act is amended by
5changing Sections 10, 11, and 22.5 as follows:
 
6    (15 ILCS 520/10)  (from Ch. 130, par. 29)
7    Sec. 10. The State Treasurer may enter into agreement in
8conformity with this Act with any bank or savings and loan
9association relating to the deposit of securities. Such
10agreement may authorize the holding by such bank or savings and
11loan association of such securities in custody and safekeeping
12solely under the instructions of the State Treasurer either (a)
13in the office of such bank or savings and loan association, or
14under the custody and safekeeping of another bank or savings
15and loan association in this State for the depository bank or
16savings and loan association, or (b) in if the securities to be
17deposited are held in custody and safekeeping for such bank or
18savings and loan association by a bank or a depository trust
19company in the United States if the securities to be deposited
20are held in custody and safekeeping for such bank or savings
21and loan association New York City, then in such New York bank
22or depository trust company.
23(Source: P.A. 83-541.)
 

 

 

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1    (15 ILCS 520/11)  (from Ch. 130, par. 30)
2    Sec. 11. Protection of public deposits; eligible
3collateral.
4    (a) For deposits not insured by an agency of the federal
5government, the State Treasurer, in his or her discretion, may
6accept as collateral any of the following classes of
7securities, provided there has been no default in the payment
8of principal or interest thereon:
9        (1) Bonds, notes, or other securities constituting
10    direct and general obligations of the United States, the
11    bonds, notes, or other securities constituting the direct
12    and general obligation of any agency or instrumentality of
13    the United States, the interest and principal of which is
14    unconditionally guaranteed by the United States, and
15    bonds, notes, or other securities or evidence of
16    indebtedness constituting the obligation of a U.S. agency
17    or instrumentality.
18        (2) Direct and general obligation bonds of the State of
19    Illinois or of any other state of the United States.
20        (3) Revenue bonds of this State or any authority,
21    board, commission, or similar agency thereof.
22        (4) Direct and general obligation bonds of any city,
23    town, county, school district, or other taxing body of any
24    state, the debt service of which is payable from general ad
25    valorem taxes.

 

 

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1        (5) Revenue bonds of any city, town, county, or school
2    district of the State of Illinois.
3        (6) Obligations issued, assumed, or guaranteed by the
4    International Finance Corporation, the principal of which
5    is not amortized during the life of the obligation, but no
6    such obligation shall be accepted at more than 90% of its
7    market value.
8        (7) Illinois Affordable Housing Program Trust Fund
9    Bonds or Notes as defined in and issued pursuant to the
10    Illinois Housing Development Act.
11        (8) In an amount equal to at least market value of that
12    amount of funds deposited exceeding the insurance
13    limitation provided by the Federal Deposit Insurance
14    Corporation or the National Credit Union Administration or
15    other approved share insurer: (i) securities, (ii)
16    mortgages, (iii) letters of credit issued by a Federal Home
17    Loan Bank, or (iv) loans covered by a State Guarantee under
18    the Illinois Farm Development Act, if that guarantee has
19    been assumed by the Illinois Finance Authority under
20    Section 845-75 of the Illinois Finance Authority Act, and
21    loans covered by a State Guarantee under Article 830 of the
22    Illinois Finance Authority Act.
23        (9) Obligations of either corporations or limited
24    liability companies organized in the United States with
25    assets exceeding $500,000,000 if: (i) the obligations are
26    rated at the time of purchase at one of the 3 highest

 

 

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1    classifications established by at least 2 standard rating
2    services and mature more than 270 days, but less than 5
3    years, from the date of purchase; and (ii) the corporation
4    or the limited liability company has not been placed on the
5    list of restricted companies by the Illinois Investment
6    Policy Board under Section 1-110.16 of the Illinois Pension
7    Code.
8    (b) The State Treasurer may establish a system to aggregate
9permissible securities received as collateral from financial
10institutions in a collateral pool to secure State deposits of
11the institutions that have pledged securities to the pool.
12    (c) The Treasurer may at any time declare any particular
13security ineligible to qualify as collateral when, in the
14Treasurer's judgment, it is deemed desirable to do so.
15    (d) Notwithstanding any other provision of this Section, as
16security the State Treasurer may, in his discretion, accept a
17bond, executed by a company authorized to transact the kinds of
18business described in clause (g) of Section 4 of the Illinois
19Insurance Code, in an amount not less than the amount of the
20deposits required by this Section to be secured, payable to the
21State Treasurer for the benefit of the People of the State of
22Illinois, in a form that is acceptable to the State Treasurer.
23(Source: P.A. 95-331, eff. 8-21-07.)
 
24    (15 ILCS 520/22.5)  (from Ch. 130, par. 41a)
25    (For force and effect of certain provisions, see Section 90

 

 

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1of P.A. 94-79)
2    Sec. 22.5. Permitted investments. The State Treasurer may,
3with the approval of the Governor, invest and reinvest any
4State money in the treasury which is not needed for current
5expenditures due or about to become due, in obligations of the
6United States government or its agencies or of National
7Mortgage Associations established by or under the National
8Housing Act, 12 1201 U.S.C. 1701 et seq., or in mortgage
9participation certificates representing undivided interests in
10specified, first-lien conventional residential Illinois
11mortgages that are underwritten, insured, guaranteed, or
12purchased by the Federal Home Loan Mortgage Corporation or in
13Affordable Housing Program Trust Fund Bonds or Notes as defined
14in and issued pursuant to the Illinois Housing Development Act.
15All such obligations shall be considered as cash and may be
16delivered over as cash by a State Treasurer to his successor.
17    The State Treasurer may, with the approval of the Governor,
18purchase any state bonds with any money in the State Treasury
19that has been set aside and held for the payment of the
20principal of and interest on the bonds. The bonds shall be
21considered as cash and may be delivered over as cash by the
22State Treasurer to his successor.
23    The State Treasurer may, with the approval of the Governor,
24invest or reinvest any State money in the treasury that is not
25needed for current expenditure due or about to become due, or
26any money in the State Treasury that has been set aside and

 

 

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1held for the payment of the principal of and the interest on
2any State bonds, in shares, withdrawable accounts, and
3investment certificates of savings and building and loan
4associations, incorporated under the laws of this State or any
5other state or under the laws of the United States; provided,
6however, that investments may be made only in those savings and
7loan or building and loan associations the shares and
8withdrawable accounts or other forms of investment securities
9of which are insured by the Federal Deposit Insurance
10Corporation.
11    The State Treasurer may not invest State money in any
12savings and loan or building and loan association unless a
13commitment by the savings and loan (or building and loan)
14association, executed by the president or chief executive
15officer of that association, is submitted in the following
16form:
17        The .................. Savings and Loan (or Building
18    and Loan) Association pledges not to reject arbitrarily
19    mortgage loans for residential properties within any
20    specific part of the community served by the savings and
21    loan (or building and loan) association because of the
22    location of the property. The savings and loan (or building
23    and loan) association also pledges to make loans available
24    on low and moderate income residential property throughout
25    the community within the limits of its legal restrictions
26    and prudent financial practices.

 

 

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1    The State Treasurer may, with the approval of the Governor,
2invest or reinvest, at a price not to exceed par, any State
3money in the treasury that is not needed for current
4expenditures due or about to become due, or any money in the
5State Treasury that has been set aside and held for the payment
6of the principal of and interest on any State bonds, in bonds
7issued by counties or municipal corporations of the State of
8Illinois.
9    The State Treasurer may invest or reinvest up to 5% of the
10College Savings Pool Administrative Trust Fund, the Illinois
11Public Treasurer Investment Pool (IPTIP) Administrative Trust
12Fund, and the State Treasurer's Administrative Fund that is not
13needed for current expenditures due or about to become due, in
14common or preferred stocks of publicly traded corporations,
15partnerships, or limited liability companies, organized in the
16United States, with assets exceeding $500,000,000 if: (i) the
17purchases do not exceed 1% of the corporation's or the limited
18liability company's outstanding common and preferred stock;
19(ii) no more than 10% of the total funds are invested in any
20one publicly traded corporation, partnership, or limited
21liability company; and (iii) the corporation or the limited
22liability company has not been placed on the list of restricted
23companies by the Illinois Investment Policy Board under Section
241-110.16 of the Illinois Pension Code.
25    The State Treasurer may, with the approval of the Governor,
26invest or reinvest any State money in the Treasury which is not

 

 

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1needed for current expenditure, due or about to become due, or
2any money in the State Treasury which has been set aside and
3held for the payment of the principal of and the interest on
4any State bonds, in participations in loans, the principal of
5which participation is fully guaranteed by an agency or
6instrumentality of the United States government; provided,
7however, that such loan participations are represented by
8certificates issued only by banks which are incorporated under
9the laws of this State or any other state or under the laws of
10the United States, and such banks, but not the loan
11participation certificates, are insured by the Federal Deposit
12Insurance Corporation.
13    Whenever the total amount of vouchers presented to the
14Comptroller under Section 9 of the State Comptroller Act
15exceeds the funds available in the General Revenue Fund by
16$1,000,000,000 or more, then the State Treasurer may invest any
17State money in the Treasury, other than money in the General
18Revenue Fund, Health Insurance Reserve Fund, Attorney General
19Court Ordered and Voluntary Compliance Payment Projects Fund,
20Attorney General Whistleblower Reward and Protection Fund, and
21Attorney General's State Projects and Court Ordered
22Distribution Fund, which is not needed for current
23expenditures, due or about to become due, or any money in the
24State Treasury which has been set aside and held for the
25payment of the principal of and the interest on any State bonds
26with the Office of the Comptroller in order to enable the

 

 

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1Comptroller to pay outstanding vouchers. At any time, and from
2time to time outstanding, such investment shall not be greater
3than $2,000,000,000. Such investment shall be deposited into
4the General Revenue Fund or Health Insurance Reserve Fund as
5determined by the Comptroller. Such investment shall be repaid
6by the Comptroller with an interest rate tied to the London
7Interbank Offered Rate (LIBOR) or the Federal Funds Rate or an
8equivalent market established variable rate, but in no case
9shall such interest rate exceed the lesser of the penalty rate
10established under the State Prompt Payment Act or the timely
11pay interest rate under Section 368a of the Illinois Insurance
12Code. The State Treasurer and the Comptroller shall enter into
13an intergovernmental agreement to establish procedures for
14such investments, which market established variable rate to
15which the interest rate for the investments should be tied, and
16other terms which the State Treasurer and Comptroller
17reasonably believe to be mutually beneficial concerning these
18investments by the State Treasurer. The State Treasurer and
19Comptroller shall also enter into a written agreement for each
20such investment that specifies the period of the investment,
21the payment interval, the interest rate to be paid, the funds
22in the Treasury from which the Treasurer will draw the
23investment, and other terms upon which the State Treasurer and
24Comptroller mutually agree. Such investment agreements shall
25be public records and the State Treasurer shall post the terms
26of all such investment agreements on the State Treasurer's

 

 

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1official website. In compliance with the intergovernmental
2agreement, the Comptroller shall order and the State Treasurer
3shall transfer amounts sufficient for the payment of principal
4and interest invested by the State Treasurer with the Office of
5the Comptroller under this paragraph from the General Revenue
6Fund or the Health Insurance Reserve Fund to the respective
7funds in the Treasury from which the State Treasurer drew the
8investment. Public Act 100-1107 This amendatory Act of the
9100th General Assembly shall constitute an irrevocable and
10continuing authority for all amounts necessary for the payment
11of principal and interest on the investments made with the
12Office of the Comptroller by the State Treasurer under this
13paragraph, and the irrevocable and continuing authority for and
14direction to the Comptroller and Treasurer to make the
15necessary transfers.
16    The State Treasurer may, with the approval of the Governor,
17invest or reinvest any State money in the Treasury that is not
18needed for current expenditure, due or about to become due, or
19any money in the State Treasury that has been set aside and
20held for the payment of the principal of and the interest on
21any State bonds, in any of the following:
22        (1) Bonds, notes, certificates of indebtedness,
23    Treasury bills, or other securities now or hereafter issued
24    that are guaranteed by the full faith and credit of the
25    United States of America as to principal and interest.
26        (2) Bonds, notes, debentures, or other similar

 

 

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1    obligations of the United States of America, its agencies,
2    and instrumentalities.
3        (2.5) Bonds, notes, debentures, or other similar
4    obligations of a foreign government, other than the
5    Republic of the Sudan, that are guaranteed by the full
6    faith and credit of that government as to principal and
7    interest, but only if the foreign government has not
8    defaulted and has met its payment obligations in a timely
9    manner on all similar obligations for a period of at least
10    25 years immediately before the time of acquiring those
11    obligations.
12        (3) Interest-bearing savings accounts,
13    interest-bearing certificates of deposit, interest-bearing
14    time deposits, or any other investments constituting
15    direct obligations of any bank as defined by the Illinois
16    Banking Act.
17        (4) Interest-bearing accounts, certificates of
18    deposit, or any other investments constituting direct
19    obligations of any savings and loan associations
20    incorporated under the laws of this State or any other
21    state or under the laws of the United States.
22        (5) Dividend-bearing share accounts, share certificate
23    accounts, or class of share accounts of a credit union
24    chartered under the laws of this State or the laws of the
25    United States; provided, however, the principal office of
26    the credit union must be located within the State of

 

 

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1    Illinois.
2        (6) Bankers' acceptances of banks whose senior
3    obligations are rated in the top 2 rating categories by 2
4    national rating agencies and maintain that rating during
5    the term of the investment.
6        (7) Short-term obligations of either corporations or
7    limited liability companies organized in the United States
8    with assets exceeding $500,000,000 if (i) the obligations
9    are rated at the time of purchase at one of the 3 highest
10    classifications established by at least 2 standard rating
11    services and mature not later than 270 days from the date
12    of purchase, (ii) the purchases do not exceed 10% of the
13    corporation's or the limited liability company's
14    outstanding obligations, (iii) no more than one-third of
15    the public agency's funds are invested in short-term
16    obligations of either corporations or limited liability
17    companies, and (iv) the corporation or the limited
18    liability company has not been placed on the list of
19    restricted companies by the Illinois Investment Policy
20    Board under Section 1-110.16 of the Illinois Pension Code.
21        (7.5) Obligations of either corporations or limited
22    liability companies organized in the United States, that
23    have a significant presence in this State, with assets
24    exceeding $500,000,000 if: (i) the obligations are rated at
25    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 more than 270 days, but less than 10 5
2    years, from the date of purchase; (ii) the purchases do not
3    exceed 10% of the corporation's or the limited liability
4    company's outstanding obligations; (iii) no more than
5    one-third 5% of the public agency's funds are invested in
6    such obligations of 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    The authorization of the Treasurer to invest in new
12    obligations under this paragraph shall expire on June 30,
13    2019.
14        (8) Money market mutual funds registered under the
15    Investment Company Act of 1940, provided that the portfolio
16    of the money market mutual fund is limited to obligations
17    described in this Section and to agreements to repurchase
18    such obligations.
19        (9) The Public Treasurers' Investment Pool created
20    under Section 17 of the State Treasurer Act or in a fund
21    managed, operated, and administered by a bank.
22        (10) Repurchase agreements of government securities
23    having the meaning set out in the Government Securities Act
24    of 1986, as now or hereafter amended or succeeded, subject
25    to the provisions of that Act and the regulations issued
26    thereunder.

 

 

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1        (11) Investments made in accordance with the
2    Technology Development Act.
3    For purposes of this Section, "agencies" of the United
4States Government includes:
5        (i) the federal land banks, federal intermediate
6    credit banks, banks for cooperatives, federal farm credit
7    banks, or any other entity authorized to issue debt
8    obligations under the Farm Credit Act of 1971 (12 U.S.C.
9    2001 et seq.) and Acts amendatory thereto;
10        (ii) the federal home loan banks and the federal home
11    loan mortgage corporation;
12        (iii) the Commodity Credit Corporation; and
13        (iv) any other agency created by Act of Congress.
14    The Treasurer may, with the approval of the Governor, lend
15any securities acquired under this Act. However, securities may
16be lent under this Section only in accordance with Federal
17Financial Institution Examination Council guidelines and only
18if the securities are collateralized at a level sufficient to
19assure the safety of the securities, taking into account market
20value fluctuation. The securities may be collateralized by cash
21or collateral acceptable under Sections 11 and 11.1.
22(Source: P.A. 99-856, eff. 8-19-16; 100-1107, eff. 8-27-18;
23revised 9-27-18.)
 
24    Section 99. Effective date. This Act takes effect upon
25becoming law.