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| Public Act 101-0206
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| SB1289 Enrolled | LRB101 08063 RJF 53125 b |
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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 |
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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 |
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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 |
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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 |
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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 |
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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 |
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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 |
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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 |
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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 |
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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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