Full Text of SB0051 96th General Assembly
SB0051eng 96TH GENERAL ASSEMBLY
|
|
|
SB0051 Engrossed |
|
LRB096 03607 RCE 13635 b |
|
| 1 |
| AN ACT concerning State government.
| 2 |
| Be it enacted by the People of the State of Illinois,
| 3 |
| represented in the General Assembly:
| 4 |
| Section 5. The Deposit of State Moneys Act is amended by | 5 |
| changing 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 | 8 |
| of P.A. 94-79) | 9 |
| Sec. 22.5. Permitted investments. The State Treasurer may, | 10 |
| with the
approval of the Governor, invest and reinvest any | 11 |
| State money in the treasury
which is not needed for current | 12 |
| expenditures due or about to become due, in
obligations of the | 13 |
| United States government or its agencies or of National
| 14 |
| Mortgage Associations established by or under the National | 15 |
| Housing Act, 1201
U.S.C. 1701 et seq., or
in mortgage | 16 |
| participation certificates representing undivided interests in
| 17 |
| specified, first-lien conventional residential Illinois | 18 |
| mortgages that are
underwritten, insured, guaranteed, or | 19 |
| purchased by the Federal Home Loan
Mortgage Corporation or in | 20 |
| Affordable Housing Program Trust Fund Bonds or
Notes as defined | 21 |
| in and issued pursuant to the Illinois Housing Development
Act. | 22 |
| All such obligations shall be considered as cash and may
be | 23 |
| delivered over as cash by a State Treasurer to his successor.
|
|
|
|
SB0051 Engrossed |
- 2 - |
LRB096 03607 RCE 13635 b |
|
| 1 |
| The State Treasurer may, with the approval of the Governor, | 2 |
| purchase
any state bonds with any money in the State Treasury | 3 |
| that has been set
aside and held for the payment of the | 4 |
| principal of and interest on the
bonds. The bonds shall be | 5 |
| considered as cash and may be delivered over
as cash by the | 6 |
| State Treasurer to his successor.
| 7 |
| The State Treasurer may, with the approval of the Governor, | 8 |
| invest or
reinvest any State money in the treasury that is not | 9 |
| needed for
current expenditure due or about to become due, or | 10 |
| any money in the
State Treasury that has been set aside and | 11 |
| held for the payment of the
principal of and the interest on | 12 |
| any State bonds, in shares,
withdrawable accounts, and | 13 |
| investment certificates of savings and
building and loan | 14 |
| associations, incorporated under the laws of this
State or any | 15 |
| other state or under the laws of the United States;
provided, | 16 |
| however, that investments may be made only in those savings
and | 17 |
| loan or building and loan associations the shares and | 18 |
| withdrawable
accounts or other forms of investment securities | 19 |
| of which are insured
by the Federal Deposit Insurance | 20 |
| Corporation.
| 21 |
| The State Treasurer may not invest State money in any | 22 |
| savings and
loan or building and loan association unless a | 23 |
| commitment by the savings
and loan (or building and loan) | 24 |
| association, executed by the president
or chief executive | 25 |
| officer of that association, is submitted in the
following | 26 |
| form:
|
|
|
|
SB0051 Engrossed |
- 3 - |
LRB096 03607 RCE 13635 b |
|
| 1 |
| The .................. Savings and Loan (or Building | 2 |
| and Loan)
Association pledges not to reject arbitrarily | 3 |
| mortgage loans for
residential properties within any | 4 |
| specific part of the community served
by the savings and | 5 |
| loan (or building and loan) association because of
the | 6 |
| location of the property. The savings and loan (or building | 7 |
| and
loan) association also pledges to make loans available | 8 |
| on low and
moderate income residential property throughout | 9 |
| the community within
the limits of its legal restrictions | 10 |
| and prudent financial practices.
| 11 |
| The State Treasurer may, with the approval of the Governor, | 12 |
| invest or
reinvest, at a price not to exceed par, any State | 13 |
| money in the treasury
that is not needed for current | 14 |
| expenditures due or about to become
due, or any money in the | 15 |
| State Treasury that has been set aside and
held for the payment | 16 |
| of the principal of and interest on any State
bonds, in bonds | 17 |
| issued by counties or municipal corporations of the
State of | 18 |
| Illinois.
| 19 |
| The State Treasurer may, with the approval of the Governor, | 20 |
| invest or
reinvest any State money in the Treasury which is not | 21 |
| needed for current
expenditure, due or about to become due, or | 22 |
| any money in the State Treasury
which has been set aside and | 23 |
| held for the payment of the principal of and
the interest on | 24 |
| any State bonds, in participations in loans, the principal
of | 25 |
| which participation is fully guaranteed by an agency or | 26 |
| instrumentality
of the United States government; provided, |
|
|
|
SB0051 Engrossed |
- 4 - |
LRB096 03607 RCE 13635 b |
|
| 1 |
| however, that such loan
participations are represented by | 2 |
| certificates issued only by banks which
are incorporated under | 3 |
| the laws of this State or any other state
or under the laws of | 4 |
| the United States, and such banks, but not
the loan | 5 |
| participation certificates, are insured by the Federal Deposit
| 6 |
| Insurance Corporation.
| 7 |
| The State Treasurer may, with the approval of the Governor, | 8 |
| invest or
reinvest any State money in the Treasury that is not | 9 |
| needed for current
expenditure, due or about to become due, or | 10 |
| any money in the State Treasury
that has been set aside and | 11 |
| held for the payment of the principal of and
the interest on | 12 |
| any State bonds, in any of the following:
| 13 |
| (1) Bonds, notes, certificates of indebtedness, | 14 |
| Treasury bills, or other
securities now or hereafter issued | 15 |
| that are guaranteed by the full faith
and credit of the | 16 |
| United States of America as to principal and interest.
| 17 |
| (2) Bonds, notes, debentures, or other similar | 18 |
| obligations of the United
States of America, its agencies, | 19 |
| and instrumentalities.
| 20 |
| (2.5) Bonds, notes, debentures, or other similar | 21 |
| obligations of a
foreign government, other than the | 22 |
| Republic of the Sudan, that are guaranteed by the full | 23 |
| faith and credit of that
government as to principal and | 24 |
| interest, but only if the foreign government
has not | 25 |
| defaulted and has met its payment obligations in a timely | 26 |
| manner on
all similar obligations for a period of at least |
|
|
|
SB0051 Engrossed |
- 5 - |
LRB096 03607 RCE 13635 b |
|
| 1 |
| 25 years immediately before
the time of acquiring those | 2 |
| obligations.
| 3 |
| (3) Interest-bearing savings accounts, | 4 |
| interest-bearing certificates of
deposit, interest-bearing | 5 |
| time deposits, or any other investments
constituting | 6 |
| direct obligations of any bank as defined by the Illinois
| 7 |
| Banking Act.
| 8 |
| (4) Interest-bearing accounts, certificates of | 9 |
| deposit, or any other
investments constituting direct | 10 |
| obligations of any savings and loan
associations | 11 |
| incorporated under the laws of this State or any other | 12 |
| state or
under the laws of the United States.
| 13 |
| (5) Dividend-bearing share accounts, share certificate | 14 |
| accounts, or
class of share accounts of a credit union | 15 |
| chartered under the laws of this
State or the laws of the | 16 |
| United States; provided, however, the principal
office of | 17 |
| the credit union must be located within the State of | 18 |
| Illinois.
| 19 |
| (6) Bankers' acceptances of banks whose senior | 20 |
| obligations are rated in
the top 2 rating categories by 2 | 21 |
| national rating agencies and maintain that
rating during | 22 |
| the term of the investment.
| 23 |
| (7) Short-term obligations of corporations organized | 24 |
| in the United
States with assets exceeding $500,000,000 if | 25 |
| (i) the obligations are rated
at the time of purchase at | 26 |
| one of the 3 highest classifications established
by at |
|
|
|
SB0051 Engrossed |
- 6 - |
LRB096 03607 RCE 13635 b |
|
| 1 |
| least 2 standard rating services and mature not later than
| 2 |
| 180 days from the date of purchase, (ii) the purchases do | 3 |
| not exceed 10% of
the corporation's outstanding | 4 |
| obligations, (iii) no more than one-third of
the public | 5 |
| agency's funds are invested in short-term obligations of
| 6 |
| corporations, and (iv) the corporation has not been | 7 |
| identified as a forbidden entity, as that term is defined | 8 |
| in Section 1-110.6 of the Illinois Pension Code, by an | 9 |
| independent researching firm that specializes in global | 10 |
| security risk that has been engaged by the State Treasurer.
| 11 |
| (8) Money market mutual funds registered under the | 12 |
| Investment Company
Act of 1940, provided that the portfolio | 13 |
| of the money market mutual fund is
limited to obligations | 14 |
| described in this Section and to agreements to
repurchase | 15 |
| such obligations.
| 16 |
| (9) The Public Treasurers' Investment Pool created | 17 |
| under Section 17 of
the State Treasurer Act or in a fund | 18 |
| managed, operated, and administered by
a bank.
| 19 |
| (10) Repurchase agreements of government securities | 20 |
| having the meaning
set out in the Government Securities Act | 21 |
| of 1986 , as now or hereafter amended or succeeded, subject | 22 |
| to the provisions
of that Act and the regulations issued | 23 |
| thereunder.
| 24 |
| (11) Investments made in accordance with the | 25 |
| Technology Development
Act.
| 26 |
| For purposes of this Section, "agencies" of the United |
|
|
|
SB0051 Engrossed |
- 7 - |
LRB096 03607 RCE 13635 b |
|
| 1 |
| States
Government includes:
| 2 |
| (i) the federal land banks, federal intermediate | 3 |
| credit banks, banks for
cooperatives, federal farm credit | 4 |
| banks, or any other entity authorized
to issue debt | 5 |
| obligations under the Farm Credit Act of 1971 (12 U.S.C. | 6 |
| 2001
et seq.) and Acts amendatory thereto;
| 7 |
| (ii) the federal home loan banks and the federal home | 8 |
| loan
mortgage corporation;
| 9 |
| (iii) the Commodity Credit Corporation; and
| 10 |
| (iv) any other agency created by Act of Congress.
| 11 |
| The Treasurer may, with the approval of the Governor, lend | 12 |
| any securities
acquired under this Act. However, securities may | 13 |
| be lent under this Section
only in accordance with Federal | 14 |
| Financial Institution Examination Council
guidelines and only | 15 |
| if the securities are collateralized at a level sufficient
to | 16 |
| assure the safety of the securities, taking into account market | 17 |
| value
fluctuation. The securities may be collateralized by cash | 18 |
| or collateral
acceptable under Sections 11 and 11.1.
| 19 |
| (Source: P.A. 94-79, eff. 1-27-06; for force and effect of | 20 |
| certain provisions, see Section 90 of P.A. 94-79; 95-521, eff. | 21 |
| 8-28-07.)
| 22 |
| Section 99. Effective date. This Act takes effect upon | 23 |
| becoming law.
|
|