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Public Act 92-0546
HB4159 Enrolled LRB9215222EGfg
AN ACT in relation to the investment of public funds.
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)
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 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 180 days from the date of purchase,
(ii) the purchases do not exceed 10% of the corporation's
outstanding obligations, and (iii) no more than one-third
of the public agency's funds are invested in short-term
obligations of corporations.
(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.
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. 90-655, eff. 7-30-98.)
Passed in the General Assembly May 08, 2002.
Approved June 13, 2002.
Effective January 01, 2003.
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