99TH GENERAL ASSEMBLY
State of Illinois
2015 and 2016
SB2820

 

Introduced 2/17/2016, by Sen. John G. Mulroe

 

SYNOPSIS AS INTRODUCED:
 
40 ILCS 5/6-183.1 new

    Amends the Chicago Firefighter Article of the Illinois Pension Code. Authorizes the Board of Trustees of the Fund to lend securities owned by the Fund to a borrower upon such terms and conditions as may be mutually agreed upon. Requires the agreement to provide that during the period of the loan the Fund shall retain the right to receive, or collect from the borrower, all dividends, interest rights, or any distributions to which the Fund would have otherwise been entitled. Provides that the borrower shall deposit with the Fund, as collateral, cash equal to the market value of the securities at the time the loan is made and shall increase the amount of collateral if and when the Fund requests an additional amount because of subsequent increased market value of the securities. Provides that the period for which the securities may be loaned shall not exceed one year, and the loan agreement may specify earlier termination by either party upon mutually agreed conditions. Effective immediately.


LRB099 19813 RPS 44212 b

PENSION IMPACT NOTE ACT MAY APPLY

 

 

A BILL FOR

 

SB2820LRB099 19813 RPS 44212 b

1    AN ACT concerning public employee benefits.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 5. The Illinois Pension Code is amended by adding
5Section 6-183.1 as follows:
 
6    (40 ILCS 5/6-183.1 new)
7    Sec. 6-183.1. To lend securities. The board may lend
8securities owned by the Fund to a borrower upon such terms and
9conditions as may be mutually agreed in writing. Such agreement
10shall provide that during the period of such loan the Fund
11shall retain the right to receive, or collect from the
12borrower, all dividends, interest rights, or any distributions
13to which the Fund would have otherwise been entitled. The
14borrower shall deposit with the Fund, as collateral for such
15loan, cash equal to the market value of the securities at the
16time the loan is made and shall increase the amount of
17collateral if and when the Fund requests an additional amount
18because of subsequent increased market value of the securities.
19    The period for which the securities may be loaned shall not
20exceed one year, and the loan agreement may specify earlier
21termination by either party upon mutually agreed conditions.
 
22    Section 99. Effective date. This Act takes effect upon

 

 

SB2820- 2 -LRB099 19813 RPS 44212 b

1becoming law.