Public Act 096-0469
 		





HB3670 Enrolled
LRB096 02024 RCE 12037 b






    AN ACT concerning finance.

 
    Be it enacted by the People of the State of Illinois,
 
represented in the General Assembly:


 
    Section 5. The Deposit of State Moneys Act is amended  by 
changing Section 22.5 as follows:
 


    (15 ILCS 520/22.5)  (from Ch. 130, par. 41a)


    (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

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

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.

    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.

    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.

    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:


        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.

    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.

    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

Insurance Corporation.

    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:


        (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.


        (2) Bonds, notes, debentures, or other similar 
    obligations of the United
States of America, its agencies, 
    and instrumentalities.


        (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.


        (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

    Banking Act.


        (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.


        (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.


        (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.


        (7) Short-term obligations of corporations 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
180 days from the date of purchase, (ii) the purchases 
    do not exceed 10% of
the corporation's outstanding 
    obligations, (iii) no more than one-third of
the public 
    agency's funds are invested in short-term obligations of

    corporations, and (iv) the corporation has not been 
    identified as a forbidden entity, as that term is defined 
    in Section 1-110.6 of the Illinois Pension Code, by an 
    independent researching firm that specializes in global 
    security risk that has been engaged by the State Treasurer.


        (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.


        (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.


        (10) Repurchase agreements of government securities 
    having the meaning
set out in the Government Securities Act 
    of 1986 subject to the provisions
of that Act and the 
    regulations issued thereunder.


        (11) Investments made in accordance with the 
    Technology Development
Act.

    For purposes of this Section, "agencies" of the United 
States
Government includes:


        (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;


        (ii) the federal home loan banks and the federal home 
    loan
mortgage corporation;


        (iii) the Commodity Credit Corporation; and


        (iv) any other agency created by Act of Congress.

    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.

(Source: P.A. 94-79, eff. 1-27-06; for force and effect of 
certain provisions, see Section 90 of P.A. 94-79; 95-521, eff. 
8-28-07.)

 

    Section 99. Effective date. This Act takes effect upon 
becoming law.