SB2864ham001 99TH GENERAL ASSEMBLY

Rep. Al Riley

Filed: 4/18/2016

 

 


 

 


 
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1
AMENDMENT TO SENATE BILL 2864

2    AMENDMENT NO. ______. Amend Senate Bill 2864 by replacing
3everything after the enacting clause with the following:
 
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

 

 

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1shall be retained by the Treasurer and shall be made available
2for inspection by the public at any reasonable time. The
3Treasurer may satisfy the requirements of this Section by
4posting the monthly report on the Treasurer's official Internet
5website.
6(Source: P.A. 83-541.)
 
7    (15 ILCS 520/22.5)  (from Ch. 130, par. 41a)
8    (For force and effect of certain provisions, see Section 90
9of P.A. 94-79)
10    Sec. 22.5. Permitted investments. The State Treasurer may,
11with the approval of the Governor, invest and reinvest any
12State money in the treasury which is not needed for current
13expenditures due or about to become due, in obligations of the
14United States government or its agencies or of National
15Mortgage Associations established by or under the National
16Housing Act, 1201 U.S.C. 1701 et seq., or in mortgage
17participation certificates representing undivided interests in
18specified, first-lien conventional residential Illinois
19mortgages that are underwritten, insured, guaranteed, or
20purchased by the Federal Home Loan Mortgage Corporation or in
21Affordable Housing Program Trust Fund Bonds or Notes as defined
22in and issued pursuant to the Illinois Housing Development Act.
23All such obligations shall be considered as cash and may be
24delivered over as cash by a State Treasurer to his successor.
25    The State Treasurer may, with the approval of the Governor,

 

 

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1purchase any state bonds with any money in the State Treasury
2that has been set aside and held for the payment of the
3principal of and interest on the bonds. The bonds shall be
4considered as cash and may be delivered over as cash by the
5State Treasurer to his successor.
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 shares, withdrawable accounts, and
12investment certificates of savings and building and loan
13associations, incorporated under the laws of this State or any
14other state or under the laws of the United States; provided,
15however, that investments may be made only in those savings and
16loan or building and loan associations the shares and
17withdrawable accounts or other forms of investment securities
18of which are insured by the Federal Deposit Insurance
19Corporation.
20    The State Treasurer may not invest State money in any
21savings and loan or building and loan association unless a
22commitment by the savings and loan (or building and loan)
23association, executed by the president or chief executive
24officer of that association, is submitted in the following
25form:
26        The .................. Savings and Loan (or Building

 

 

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1    and Loan) Association pledges not to reject arbitrarily
2    mortgage loans for residential properties within any
3    specific part of the community served by the savings and
4    loan (or building and loan) association because of the
5    location of the property. The savings and loan (or building
6    and loan) association also pledges to make loans available
7    on low and moderate income residential property throughout
8    the community within the limits of its legal restrictions
9    and prudent financial practices.
10    The State Treasurer may, with the approval of the Governor,
11invest or reinvest, at a price not to exceed par, any State
12money in the treasury that is not needed for current
13expenditures due or about to become due, or any money in the
14State Treasury that has been set aside and held for the payment
15of the principal of and interest on any State bonds, in bonds
16issued by counties or municipal corporations of the State of
17Illinois.
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 identified as a forbidden
11    entity, as that term is defined in Section 1-110.6 of the
12    Illinois Pension Code, by an independent researching firm
13    that specializes in global security risk that has been
14    engaged by the State Treasurer.
15        (7.5) Obligations of either corporations or limited
16    liability companies organized in the United States, that
17    have a significant presence in this State, with assets
18    exceeding $500,000,000 if: (i) the obligations are rated at
19    the time of purchase at one of the 3 highest
20    classifications established by at least 2 standard rating
21    services and mature more than 270 days, but less than 5
22    years, from the date of purchase; (ii) the purchases do not
23    exceed 10% of the corporation's or the limited liability
24    company's outstanding obligations; (iii) no more than 5% of
25    the public agency's funds are invested in such obligations
26    of corporations or limited liability companies; and (iv)

 

 

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1    the corporation or the limited liability company has not
2    been placed on the list of restricted companies by the
3    Illinois Investment Policy Board under Section 1-110.16 of
4    the Illinois Pension Code. The authorization of the
5    Treasurer to invest in new obligations under this paragraph
6    shall expire on June 30, 2019.
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.".