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| Public Act 100-1107
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| SB2858 Enrolled | LRB100 18839 RJF 34081 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 Section 22.5 as follows:
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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, 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, 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, |
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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 |
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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 |
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funds in the Treasury from which the State Treasurer drew the |
investment. 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 |
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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 |
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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 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 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 |
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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. |
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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.)
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Section 99. Effective date. This Act takes effect upon |
becoming law.
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