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92nd General Assembly

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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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