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Public Act 101-0206 | ||||
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AN ACT concerning State government.
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Be it enacted by the People of the State of Illinois,
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represented in the General Assembly:
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Section 5. The Deposit of State Moneys Act is amended by | ||||
changing Sections 10, 11, and 22.5 as follows:
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(15 ILCS 520/10) (from Ch. 130, par. 29)
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Sec. 10.
The State Treasurer may enter into agreement in | ||||
conformity
with this Act with any bank or savings and loan | ||||
association
relating to
the deposit of securities. Such | ||||
agreement may authorize the holding
by such bank or savings and | ||||
loan association of such securities in custody
and safekeeping | ||||
solely under the instructions of the State Treasurer either
(a) | ||||
in the office of such bank or savings and loan
association, or | ||||
under the custody and safekeeping of another bank or
savings | ||||
and loan association in this State for the
depository bank or | ||||
savings and loan association, or (b) in if the securities
to be | ||||
deposited are held in custody and safekeeping for such bank or | ||||
savings
and loan association by a bank or a depository trust | ||||
company
in the United States if the securities to be deposited | ||||
are held in custody and safekeeping for such bank or savings | ||||
and loan association New York City, then in such New York bank | ||||
or depository trust company .
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(Source: P.A. 83-541.)
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(15 ILCS 520/11) (from Ch. 130, par. 30)
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Sec. 11. Protection of public deposits; eligible | ||
collateral.
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(a) For deposits not insured by an agency of the federal | ||
government,
the State Treasurer, in his or her discretion, may | ||
accept as collateral any
of the
following classes of | ||
securities, provided there has been no default in the
payment | ||
of principal or interest thereon:
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(1) Bonds, notes, or other securities constituting | ||
direct and general
obligations of the United States, the | ||
bonds, notes, or other securities
constituting the direct | ||
and general obligation of any agency or
instrumentality of | ||
the United States, the interest and principal of which
is | ||
unconditionally guaranteed by the United States, and | ||
bonds, notes, or
other securities or evidence of | ||
indebtedness constituting the obligation of
a U.S. agency | ||
or instrumentality.
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(2) Direct and general obligation bonds of the State of | ||
Illinois or of
any other state of the United States.
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(3) Revenue bonds of this State or any authority, | ||
board, commission,
or similar agency thereof.
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(4) Direct and general obligation bonds of any city, | ||
town, county,
school district, or other taxing body of any | ||
state, the debt service of
which is payable from general ad | ||
valorem taxes.
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(5) Revenue bonds of any city, town, county, or school | ||
district of the
State of Illinois.
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(6) Obligations issued, assumed, or guaranteed by the | ||
International
Finance Corporation, the principal of which | ||
is not amortized during the
life of the obligation, but no | ||
such obligation shall be accepted at more
than 90% of its | ||
market value.
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(7) Illinois Affordable Housing Program Trust Fund | ||
Bonds or Notes as
defined in and issued pursuant to the | ||
Illinois Housing Development Act.
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(8) In an amount equal to at least market value of that | ||
amount of funds
deposited exceeding the insurance | ||
limitation provided by the Federal Deposit
Insurance | ||
Corporation or the National Credit Union Administration or | ||
other
approved share insurer: (i) securities, (ii) | ||
mortgages, (iii) letters of
credit issued by a Federal Home | ||
Loan Bank, or (iv) loans covered by a State
Guarantee under | ||
the Illinois Farm Development Act, if that
guarantee has | ||
been assumed by the Illinois Finance Authority under | ||
Section
845-75 of the Illinois Finance Authority Act, and | ||
loans covered by a State
Guarantee under Article 830 of the | ||
Illinois Finance Authority Act.
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(9) Obligations of either corporations or limited | ||
liability companies organized in the United States with | ||
assets exceeding $500,000,000 if: (i) the obligations are | ||
rated at the time of purchase at one of the 3 highest |
classifications established by at least 2 standard rating | ||
services and mature more than 270 days, but less than 5 | ||
years, from the date of purchase; and (ii) the corporation | ||
or the limited liability company has not been placed on the | ||
list of restricted companies by the Illinois Investment | ||
Policy Board under Section 1-110.16 of the Illinois Pension | ||
Code. | ||
(b) The State Treasurer may establish a system to aggregate | ||
permissible
securities received as collateral from financial | ||
institutions in a
collateral pool to secure State deposits of | ||
the institutions that have
pledged securities to the pool.
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(c) The Treasurer may at any time declare any particular | ||
security
ineligible to qualify as collateral when, in the | ||
Treasurer's judgment, it
is deemed desirable to do so.
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(d) Notwithstanding any other provision of this Section, as | ||
security the
State Treasurer may, in his discretion, accept a | ||
bond, executed by a company
authorized to transact the kinds of | ||
business described in clause (g) of
Section 4 of the Illinois | ||
Insurance Code, in an amount not less than the
amount of the | ||
deposits required by this Section to be secured, payable to the
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State Treasurer for the benefit of the People of the State of | ||
Illinois, in
a form that is acceptable to the State Treasurer.
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(Source: P.A. 95-331, eff. 8-21-07.)
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(15 ILCS 520/22.5) (from Ch. 130, par. 41a)
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(For force and effect of certain provisions, see Section 90 |
of P.A. 94-79) | ||
Sec. 22.5. Permitted investments. The State Treasurer may, | ||
with the
approval of the Governor, invest and reinvest any | ||
State money in the treasury
which is not needed for current | ||
expenditures due or about to become due, in
obligations of the | ||
United States government or its agencies or of National
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Mortgage Associations established by or under the National | ||
Housing Act, 12 1201
U.S.C. 1701 et seq., or
in mortgage | ||
participation certificates representing undivided interests in
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specified, first-lien conventional residential Illinois | ||
mortgages that are
underwritten, insured, guaranteed, or | ||
purchased by the Federal Home Loan
Mortgage Corporation or in | ||
Affordable Housing Program Trust Fund Bonds or
Notes as defined | ||
in and issued pursuant to the Illinois Housing Development
Act. | ||
All such obligations shall be considered as cash and may
be | ||
delivered over as cash by a State Treasurer to his successor.
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The State Treasurer may, with the approval of the Governor, | ||
purchase
any state bonds with any money in the State Treasury | ||
that has been set
aside and held for the payment of the | ||
principal of and interest on the
bonds. The bonds shall be | ||
considered as cash and may be delivered over
as cash by the | ||
State Treasurer to his successor.
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The State Treasurer may, with the approval of the Governor, | ||
invest or
reinvest any State money in the treasury that is not | ||
needed for
current expenditure due or about to become due, or | ||
any money in the
State Treasury that has been set aside and |
held for the payment of the
principal of and the interest on | ||
any State bonds, in shares,
withdrawable accounts, and | ||
investment certificates of savings and
building and loan | ||
associations, incorporated under the laws of this
State or any | ||
other state or under the laws of the United States;
provided, | ||
however, that investments may be made only in those savings
and | ||
loan or building and loan associations the shares and | ||
withdrawable
accounts or other forms of investment securities | ||
of which are insured
by the Federal Deposit Insurance | ||
Corporation.
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The State Treasurer may not invest State money in any | ||
savings and
loan or building and loan association unless a | ||
commitment by the savings
and loan (or building and loan) | ||
association, executed by the president
or chief executive | ||
officer of that association, is submitted in the
following | ||
form:
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The .................. Savings and Loan (or Building | ||
and Loan)
Association pledges not to reject arbitrarily | ||
mortgage loans for
residential properties within any | ||
specific part of the community served
by the savings and | ||
loan (or building and loan) association because of
the | ||
location of the property. The savings and loan (or building | ||
and
loan) association also pledges to make loans available | ||
on low and
moderate income residential property throughout | ||
the community within
the limits of its legal restrictions | ||
and prudent financial practices.
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The State Treasurer may, with the approval of the Governor, | ||
invest or
reinvest , at a price not to exceed par, any State | ||
money in the treasury
that is not needed for current | ||
expenditures due or about to become
due, or any money in the | ||
State Treasury that has been set aside and
held for the payment | ||
of the principal of and interest on any State
bonds, in bonds | ||
issued by counties or municipal corporations of the
State of | ||
Illinois.
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The State Treasurer may invest or reinvest up to 5% of the | ||
College Savings Pool Administrative Trust Fund, the Illinois | ||
Public Treasurer Investment Pool (IPTIP) Administrative Trust | ||
Fund, and the State Treasurer's Administrative Fund that is not | ||
needed for current expenditures due or about to become due, in | ||
common or preferred stocks of publicly traded corporations, | ||
partnerships, or limited liability companies, organized in the | ||
United States, with assets exceeding $500,000,000 if: (i) the | ||
purchases do not exceed 1% of the corporation's or the limited | ||
liability company's outstanding common and preferred stock; | ||
(ii) no more than 10% of the total funds are invested in any | ||
one publicly traded corporation, partnership, or limited | ||
liability company; and (iii) the corporation or the limited | ||
liability company has not been placed on the list of restricted | ||
companies by the Illinois Investment Policy Board under Section | ||
1-110.16 of the Illinois Pension Code. | ||
The State Treasurer may, with the approval of the Governor, | ||
invest or
reinvest any State money in the Treasury which is not |
needed for current
expenditure, due or about to become due, or | ||
any money in the State Treasury
which has been set aside and | ||
held for the payment of the principal of and
the interest on | ||
any State bonds, in participations in loans, the principal
of | ||
which participation is fully guaranteed by an agency or | ||
instrumentality
of the United States government; provided, | ||
however, that such loan
participations are represented by | ||
certificates issued only by banks which
are incorporated under | ||
the laws of this State or any other state
or under the laws of | ||
the United States, and such banks, but not
the loan | ||
participation certificates, are insured by the Federal Deposit
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Insurance Corporation.
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Whenever the total amount of vouchers presented to the | ||
Comptroller under Section 9 of the State Comptroller Act | ||
exceeds the funds available in the General Revenue Fund by | ||
$1,000,000,000 or more, then the State Treasurer may invest any | ||
State money in the Treasury, other than money in the General | ||
Revenue Fund, Health Insurance Reserve Fund, Attorney General | ||
Court Ordered and Voluntary Compliance Payment Projects Fund, | ||
Attorney General Whistleblower Reward and Protection Fund, and | ||
Attorney General's State Projects and Court Ordered | ||
Distribution Fund, which is not needed for current | ||
expenditures, due or about to become due, or any money in the | ||
State Treasury which has been set aside and held for the | ||
payment of the principal of and the interest on any State bonds | ||
with the Office of the Comptroller in order to enable the |
Comptroller to pay outstanding vouchers. At any time, and from | ||
time to time outstanding, such investment shall not be greater | ||
than $2,000,000,000. Such investment shall be deposited into | ||
the General Revenue Fund or Health Insurance Reserve Fund as | ||
determined by the Comptroller. Such investment shall be repaid | ||
by the Comptroller with an interest rate tied to the London | ||
Interbank Offered Rate (LIBOR) or the Federal Funds Rate or an | ||
equivalent market established variable rate, but in no case | ||
shall such interest rate exceed the lesser of the penalty rate | ||
established under the State Prompt Payment Act or the timely | ||
pay interest rate under Section 368a of the Illinois Insurance | ||
Code. The State Treasurer and the Comptroller shall enter into | ||
an intergovernmental agreement to establish procedures for | ||
such investments, which market established variable rate to | ||
which the interest rate for the investments should be tied, and | ||
other terms which the State Treasurer and Comptroller | ||
reasonably believe to be mutually beneficial concerning these | ||
investments by the State Treasurer. The State Treasurer and | ||
Comptroller shall also enter into a written agreement for each | ||
such investment that specifies the period of the investment, | ||
the payment interval, the interest rate to be paid, the funds | ||
in the Treasury from which the Treasurer will draw the | ||
investment, and other terms upon which the State Treasurer and | ||
Comptroller mutually agree. Such investment agreements shall | ||
be public records and the State Treasurer shall post the terms | ||
of all such investment agreements on the State Treasurer's |
official website. In compliance with the intergovernmental | ||
agreement, the Comptroller shall order and the State Treasurer | ||
shall transfer amounts sufficient for the payment of principal | ||
and interest invested by the State Treasurer with the Office of | ||
the Comptroller under this paragraph from the General Revenue | ||
Fund or the Health Insurance Reserve Fund to the respective | ||
funds in the Treasury from which the State Treasurer drew the | ||
investment. Public Act 100-1107 This amendatory Act of the | ||
100th General Assembly shall constitute an irrevocable and | ||
continuing authority for all amounts necessary for the payment | ||
of principal and interest on the investments made with the | ||
Office of the Comptroller by the State Treasurer under this | ||
paragraph, and the irrevocable and continuing authority for and | ||
direction to the Comptroller and Treasurer to make the | ||
necessary transfers. | ||
The State Treasurer may, with the approval of the Governor, | ||
invest or
reinvest any State money in the Treasury that is not | ||
needed for current
expenditure, due or about to become due, or | ||
any money in the State Treasury
that has been set aside and | ||
held for the payment of the principal of and
the interest on | ||
any State bonds, in any of the following:
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(1) Bonds, notes, certificates of indebtedness, | ||
Treasury bills, or other
securities now or hereafter issued | ||
that are guaranteed by the full faith
and credit of the | ||
United States of America as to principal and interest.
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(2) Bonds, notes, debentures, or other similar |
obligations of the United
States of America, its agencies, | ||
and instrumentalities.
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(2.5) Bonds, notes, debentures, or other similar | ||
obligations of a
foreign government, other than the | ||
Republic of the Sudan, that are guaranteed by the full | ||
faith and credit of that
government as to principal and | ||
interest, but only if the foreign government
has not | ||
defaulted and has met its payment obligations in a timely | ||
manner on
all similar obligations for a period of at least | ||
25 years immediately before
the time of acquiring those | ||
obligations.
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(3) Interest-bearing savings accounts, | ||
interest-bearing certificates of
deposit, interest-bearing | ||
time deposits, or any other investments
constituting | ||
direct obligations of any bank as defined by the Illinois
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Banking Act.
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(4) Interest-bearing accounts, certificates of | ||
deposit, or any other
investments constituting direct | ||
obligations of any savings and loan
associations | ||
incorporated under the laws of this State or any other | ||
state or
under the laws of the United States.
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(5) Dividend-bearing share accounts, share certificate | ||
accounts, or
class of share accounts of a credit union | ||
chartered under the laws of this
State or the laws of the | ||
United States; provided, however, the principal
office of | ||
the credit union must be located within the State of |
Illinois.
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(6) Bankers' acceptances of banks whose senior | ||
obligations are rated in
the top 2 rating categories by 2 | ||
national rating agencies and maintain that
rating during | ||
the term of the investment.
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(7) Short-term obligations of either corporations or | ||
limited liability companies organized in the United
States | ||
with assets exceeding $500,000,000 if (i) the obligations | ||
are rated
at the time of purchase at one of the 3 highest | ||
classifications established
by at least 2 standard rating | ||
services and mature not later than 270
days from the date | ||
of purchase, (ii) the purchases do not exceed 10% of
the | ||
corporation's or the limited liability company's | ||
outstanding obligations, (iii) no more than one-third of
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the public agency's funds are invested in short-term | ||
obligations of
either corporations or limited liability | ||
companies, and (iv) the corporation or the limited | ||
liability company has not been placed on the list of | ||
restricted companies by the Illinois Investment Policy | ||
Board under Section 1-110.16 of the Illinois Pension Code.
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(7.5) Obligations of either corporations or limited | ||
liability companies organized in the United States, that | ||
have a significant presence in this State, with assets | ||
exceeding $500,000,000 if: (i) the obligations are rated at | ||
the time of purchase at one of the 3 highest | ||
classifications established by at least 2 standard rating |
services and mature more than 270 days, but less than 10 5 | ||
years, from the date of purchase; (ii) the purchases do not | ||
exceed 10% of the corporation's or the limited liability | ||
company's outstanding obligations; (iii) no more than | ||
one-third 5% of the public agency's funds are invested in | ||
such obligations of corporations or limited liability | ||
companies; and (iv) the corporation or the limited | ||
liability company has not been placed on the list of | ||
restricted companies by the Illinois Investment Policy | ||
Board under Section 1-110.16 of the Illinois Pension Code. | ||
The authorization of the Treasurer to invest in new | ||
obligations under this paragraph shall expire on June 30, | ||
2019. | ||
(8) Money market mutual funds registered under the | ||
Investment Company
Act of 1940 , provided that the portfolio | ||
of the money market mutual fund is
limited to obligations | ||
described in this Section and to agreements to
repurchase | ||
such obligations .
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(9) The Public Treasurers' Investment Pool created | ||
under Section 17 of
the State Treasurer Act or in a fund | ||
managed, operated, and administered by
a bank.
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(10) Repurchase agreements of government securities | ||
having the meaning
set out in the Government Securities Act | ||
of 1986, as now or hereafter amended or succeeded, subject | ||
to the provisions
of that Act and the regulations issued | ||
thereunder.
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(11) Investments made in accordance with the | ||
Technology Development
Act.
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For purposes of this Section, "agencies" of the United | ||
States
Government includes:
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(i) the federal land banks, federal intermediate | ||
credit banks, banks for
cooperatives, federal farm credit | ||
banks, or any other entity authorized
to issue debt | ||
obligations under the Farm Credit Act of 1971 (12 U.S.C. | ||
2001
et seq.) and Acts amendatory thereto;
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(ii) the federal home loan banks and the federal home | ||
loan
mortgage corporation;
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(iii) the Commodity Credit Corporation; and
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(iv) any other agency created by Act of Congress.
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The Treasurer may, with the approval of the Governor, lend | ||
any securities
acquired under this Act. However, securities may | ||
be lent under this Section
only in accordance with Federal | ||
Financial Institution Examination Council
guidelines and only | ||
if the securities are collateralized at a level sufficient
to | ||
assure the safety of the securities, taking into account market | ||
value
fluctuation. The securities may be collateralized by cash | ||
or collateral
acceptable under Sections 11 and 11.1.
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(Source: P.A. 99-856, eff. 8-19-16; 100-1107, eff. 8-27-18; | ||
revised 9-27-18.)
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Section 99. Effective date. This Act takes effect upon | ||
becoming law.
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