SB2864 EngrossedLRB099 20194 RJF 44652 b

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 18 and 22.5 as follows:
 
6    (15 ILCS 520/18)  (from Ch. 130, par. 37)
7    Sec. 18. The State Treasurer shall make a monthly report to
8the Governor giving a detailed statement of the balances on
9deposit in the several banks or savings and loan associations,
10and the amount paid by each such bank or savings and loan
11association as interest on moneys so deposited. Such statement
12shall contain the name of each bank or savings and loan
13association, and the amount in such bank or savings and loan
14association subject to draft at the close of business on the
15last day of the month for which the report is made, and on the
16last day of the month next preceding. A copy of such report
17shall be retained by the Treasurer and shall be made available
18for inspection by the public at any reasonable time. The
19Treasurer may satisfy the requirements of this Section by
20posting the monthly report on the Treasurer's official Internet
21website.
22(Source: P.A. 83-541.)
 

 

 

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1    (15 ILCS 520/22.5)  (from Ch. 130, par. 41a)
2    (For force and effect of certain provisions, see Section 90
3of P.A. 94-79)
4    Sec. 22.5. Permitted investments. The State Treasurer may,
5with the approval of the Governor, invest and reinvest any
6State money in the treasury which is not needed for current
7expenditures due or about to become due, in obligations of the
8United States government or its agencies or of National
9Mortgage Associations established by or under the National
10Housing Act, 1201 U.S.C. 1701 et seq., or in mortgage
11participation certificates representing undivided interests in
12specified, first-lien conventional residential Illinois
13mortgages that are underwritten, insured, guaranteed, or
14purchased by the Federal Home Loan Mortgage Corporation or in
15Affordable Housing Program Trust Fund Bonds or Notes as defined
16in and issued pursuant to the Illinois Housing Development Act.
17All such obligations shall be considered as cash and may be
18delivered over as cash by a State Treasurer to his successor.
19    The State Treasurer may, with the approval of the Governor,
20purchase any state bonds with any money in the State Treasury
21that has been set aside and held for the payment of the
22principal of and interest on the bonds. The bonds shall be
23considered as cash and may be delivered over as cash by the
24State Treasurer to his successor.
25    The State Treasurer may, with the approval of the Governor,
26invest or reinvest any State money in the treasury that is not

 

 

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

 

 

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1    the community within the limits of its legal restrictions
2    and prudent financial practices.
3    The State Treasurer may, with the approval of the Governor,
4invest or reinvest, at a price not to exceed par, any State
5money in the treasury that is not needed for current
6expenditures due or about to become due, or any money in the
7State Treasury that has been set aside and held for the payment
8of the principal of and interest on any State bonds, in bonds
9issued by counties or municipal corporations of the State of
10Illinois.
11    The State Treasurer may, with the approval of the Governor,
12invest or reinvest any State money in the Treasury which is not
13needed for current expenditure, due or about to become due, or
14any money in the State Treasury which has been set aside and
15held for the payment of the principal of and the interest on
16any State bonds, in participations in loans, the principal of
17which participation is fully guaranteed by an agency or
18instrumentality of the United States government; provided,
19however, that such loan participations are represented by
20certificates issued only by banks which are incorporated under
21the laws of this State or any other state or under the laws of
22the United States, and such banks, but not the loan
23participation certificates, are insured by the Federal Deposit
24Insurance Corporation.
25    The State Treasurer may, with the approval of the Governor,
26invest or reinvest any State money in the Treasury that is not

 

 

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1needed for current expenditure, due or about to become due, or
2any money in the State Treasury that has been set aside and
3held for the payment of the principal of and the interest on
4any State bonds, in any of the following:
5        (1) Bonds, notes, certificates of indebtedness,
6    Treasury bills, or other securities now or hereafter issued
7    that are guaranteed by the full faith and credit of the
8    United States of America as to principal and interest.
9        (2) Bonds, notes, debentures, or other similar
10    obligations of the United States of America, its agencies,
11    and instrumentalities.
12        (2.5) Bonds, notes, debentures, or other similar
13    obligations of a foreign government, other than the
14    Republic of the Sudan, that are guaranteed by the full
15    faith and credit of that government as to principal and
16    interest, but only if the foreign government has not
17    defaulted and has met its payment obligations in a timely
18    manner on all similar obligations for a period of at least
19    25 years immediately before the time of acquiring those
20    obligations.
21        (3) Interest-bearing savings accounts,
22    interest-bearing certificates of deposit, interest-bearing
23    time deposits, or any other investments constituting
24    direct obligations of any bank as defined by the Illinois
25    Banking Act.
26        (4) Interest-bearing accounts, certificates of

 

 

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1    deposit, or any other investments constituting direct
2    obligations of any savings and loan associations
3    incorporated under the laws of this State or any other
4    state or under the laws of the United States.
5        (5) Dividend-bearing share accounts, share certificate
6    accounts, or class of share accounts of a credit union
7    chartered under the laws of this State or the laws of the
8    United States; provided, however, the principal office of
9    the credit union must be located within the State of
10    Illinois.
11        (6) Bankers' acceptances of banks whose senior
12    obligations are rated in the top 2 rating categories by 2
13    national rating agencies and maintain that rating during
14    the term of the investment.
15        (7) Obligations Short-term obligations of either
16    corporations or limited liability companies organized in
17    the United States, that have a significant presence in this
18    State, with assets exceeding $500,000,000 if (i) the
19    obligations are rated at the time of purchase at one of the
20    3 highest classifications established by at least 2
21    standard rating services and mature not later than 5 years
22    270 days from the date of purchase, (ii) the purchases do
23    not exceed 10% of the corporation's or the limited
24    liability company's outstanding obligations, (iii) no more
25    than one-third of the public agency's funds are invested in
26    short-term obligations of either corporations or limited

 

 

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1    liability companies, and (iv) the corporation or the
2    limited liability company has not been identified as a
3    forbidden entity, as that term is defined in Section
4    1-110.6 of the Illinois Pension Code, by an independent
5    researching firm that specializes in global security risk
6    that has been engaged by the State Treasurer.
7        (8) Money market mutual funds registered under the
8    Investment Company Act of 1940, provided that the portfolio
9    of the money market mutual fund is limited to obligations
10    described in this Section and to agreements to repurchase
11    such obligations.
12        (9) The Public Treasurers' Investment Pool created
13    under Section 17 of the State Treasurer Act or in a fund
14    managed, operated, and administered by a bank.
15        (10) Repurchase agreements of government securities
16    having the meaning set out in the Government Securities Act
17    of 1986, as now or hereafter amended or succeeded, subject
18    to the provisions of that Act and the regulations issued
19    thereunder.
20        (11) Investments made in accordance with the
21    Technology Development Act.
22    For purposes of this Section, "agencies" of the United
23States Government includes:
24        (i) the federal land banks, federal intermediate
25    credit banks, banks for cooperatives, federal farm credit
26    banks, or any other entity authorized to issue debt

 

 

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1    obligations under the Farm Credit Act of 1971 (12 U.S.C.
2    2001 et seq.) and Acts amendatory thereto;
3        (ii) the federal home loan banks and the federal home
4    loan mortgage corporation;
5        (iii) the Commodity Credit Corporation; and
6        (iv) any other agency created by Act of Congress.
7    The Treasurer may, with the approval of the Governor, lend
8any securities acquired under this Act. However, securities may
9be lent under this Section only in accordance with Federal
10Financial Institution Examination Council guidelines and only
11if the securities are collateralized at a level sufficient to
12assure the safety of the securities, taking into account market
13value fluctuation. The securities may be collateralized by cash
14or collateral acceptable under Sections 11 and 11.1.
15(Source: P.A. 96-469, eff. 8-14-09; 96-795, eff. 7-1-10 (see
16Section 5 of P.A. 96-793 for the effective date of changes made
17by P.A. 96-795); 96-870, eff. 1-21-10; 97-277, eff. 8-8-11.)
 
18    Section 99. Effective date. This Act takes effect upon
19becoming law.