Bill Text: IL SB0653 | 2021-2022 | 102nd General Assembly | Chaptered

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Bill Title: Amends the Deposit of State Moneys Act. Provides requirements and makes changes concerning financial institutions and depositories throughout the Act. Provides that the Act shall govern the deposit of State moneys for all public funds under the custody or control of the State Treasurer. Repeals specified provisions. Amends the Public Funds Investment Act and the Public Funds Deposit Act. Provides that those Acts do not apply to the Illinois State Treasurer, whose investment of State funds shall be governed by the Deposit of State Moneys Act. Defines terms. Makes conforming and other changes. Effective immediately.

Spectrum: Partisan Bill (Democrat 3-0)

Status: (Passed) 2021-08-06 - Public Act . . . . . . . . . 102-0297 [SB0653 Detail]

Download: Illinois-2021-SB0653-Chaptered.html

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Public Act 102-0297
SB0653 Enrolled LRB102 13364 RJF 18708 b
AN ACT concerning State government.
Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
Section 5. The State Treasurer Act is amended by changing
Section 30 as follows:
(15 ILCS 505/30)
Sec. 30. Preferences for veterans, minorities, women, and
persons with disabilities.
(a) As used in this Section:
(1) the terms "minority person", "woman", "person with
a disability", "minority-owned business", "women-owned
business", "business owned by a person with a disability",
and "control" have the meanings provided in Section 2 1 of
the Business Enterprise for Minorities, Women, and Persons
with Disabilities Act; and
(2) the terms "veteran", "qualified veteran-owned
small business", "qualified service-disabled
veteran-owned small business", "qualified
service-disabled veteran", and "armed forces of the United
States" have the meanings provided in Article 45 1 of the
Illinois Procurement Code.
(b) It is hereby declared to be the policy of the State
Treasurer to promote and encourage the use of businesses owned

by or under the control of qualified veterans of the armed
forces of the United States, qualified service-disabled
veterans, minority persons, women, or persons with a
disability in the area of goods and services. Furthermore, the
State Treasurer shall utilize such businesses to the greatest
extent feasible within the bounds of financial and fiduciary
prudence, and take affirmative steps to remove any barriers to
the full participation of such firms in the procurement and
contracting opportunities afforded.
(c) It shall be an aspirational goal of the State
Treasurer to use businesses owned by or under the control of
qualified veterans of the armed forces of the United States,
qualified service-disabled veterans, minority persons, women,
or persons with a disability for not less than 25% of the total
dollar amount of funds under management, purchases of
investment securities, and other contracts, including, but not
limited to, the use of broker-dealers. The State Treasurer is
authorized to establish additional aspirational goals.
(d) When the State Treasurer procures goods and services,
whether through a request for proposal or otherwise, he or she
is authorized to incorporate preferences in the scoring
process for: (1) a minority-owned business, a women-owned
business, a business owned by a person with a disability, a
qualified veteran-owned small business, or a qualified
service-disabled veteran-owned small business; and (2)
businesses having a record of support for increasing diversity

and inclusion in board membership, management, employment,
philanthropy, and supplier diversity, including investment
professionals and investment sourcing.
When the State Treasurer utilizes a financial institution
or determines the eligibility of a financial institution to
participate in a banking contract, investment contract,
investment activity, or other financial program of the State
Treasurer, he or she shall review the financial institution's
Community Reinvestment Act rating, record, and current level
of financial commitment to the community prior to making a
decision to utilize or determine the eligibility of such
financial institution.
(e) Beginning with fiscal year 2019, and at least annually
thereafter, the State Treasurer shall report on his or her
utilization of minority-owned businesses, women-owned
businesses, businesses owned by a person with a disability,
qualified veteran-owned small businesses, or qualified
service-disabled veteran-owned small businesses. The report
shall be published on the State Treasurer's official website.
(f) The provisions of this Section take precedence over
any goals established under the Business Enterprise for
Minorities, Women, and Persons with Disabilities Act.
(Source: P.A. 100-969, eff. 8-19-18.)
Section 10. The Deposit of State Moneys Act is amended by
changing Sections 1, 1.1, 2, 7, 8, 9, 10, 11, 12, 14, 15, 17,

18, 19, 20, 22, 22.5, 22.8, and 23 as follows:
(15 ILCS 520/1) (from Ch. 130, par. 20)
Sec. 1. The State Treasurer shall deposit all moneys
received by him or her on account of the State within five days
after receiving the same in such financial institutions banks,
savings and loan associations or credit unions of the State as
may be authorized to receive such deposits under the terms of
this Act. The money so deposited shall be placed to the account
of the State Treasurer.
No financial institution bank, savings and loan
association or credit union shall receive public funds as
permitted by this Act Section, unless it has complied with the
requirements established pursuant to this Act Section 6 of "An
Act relating to certain investments of public funds by public
agencies", approved July 23, 1943, as now or hereafter
amended.
For purposes of this Act, the term "financial institution"
"bank" or "savings and loan association" shall be deemed to
include a bank, a savings and loan association, a savings
bank, a credit union, a minority depository institution as
designated by the Federal Deposit Insurance Corporation, or a
community development financial institution certified by the
United States Treasury Community Development Financial
Institutions Fund, which is operating in the State of Illinois
a credit union, and, unless otherwise specifically set forth

in this Act, credit unions shall be subject to all rights,
privileges, remedies, duties, and obligations granted or
imposed by this Act upon banks and savings and loan
associations.
The State Treasurer may require financial institutions to
submit sworn statements of resources and liabilities that are
required to be furnished to any regulatory or licensing
entity, and reports of any examination prepared by or
submitted to any regulatory or licensing entity. All records
submitted by a financial institution pursuant to this Section
shall remain confidential in accordance with applicable laws.
The State Treasurer may accept as security for public
funds deposited in a financial institution any securities or
other eligible collateral authorized by this Act. The State
Treasurer is authorized to enter into an agreement with any
financial institution, or trust company, or with any agency of
the U.S. government relating to the deposit of such assets or
securities. The State Treasurer shall be discharged from
responsibility for any funds for which assets or securities
are so deposited with him or her, and the funds for which
securities are so deposited shall not be subject to any
otherwise applicable limitation as to amount.
This Act shall govern the deposit of State moneys for all
public funds under the custody or control of the State
Treasurer.
(Source: P.A. 85-803.)

(15 ILCS 520/1.1) (from Ch. 130, par. 20.1)
Sec. 1.1. When investing or depositing public funds, each
custodian shall, to the extent permitted by this Act and by the
lawful and reasonable performance of his custodial duties,
invest or deposit such funds with or in minority-owned
financial institutions within this State. For the purposes of
this Section, "minority-owned financial institutions" means a
financial institution with 51% or more of the stock or equity
of the business owned by women, minority persons, military
veterans, qualified service-disabled veteran-owned, or persons
with disabilities as defined in Section 2 of the Business
Enterprise for Minorities, Women, and Persons with
Disabilities Act and Section 45-57 of the Illinois Procurement
Code.
(Source: P.A. 84-754.)
(15 ILCS 520/2) (from Ch. 130, par. 21)
Sec. 2. All financial institutions banks or savings and
loan associations in which any such money is deposited shall
be required to pay interest on time deposit accounts if
members of the Federal Reserve system are permitted to pay
interest on the particular class of deposit. All interest
received or paid on account of money in the State Treasury
treasury belonging to or for the use of the State so deposited
in financial institutions banks or savings and loan

associations, shall be the property of the State of Illinois.
If any moneys held by the State Treasurer shall be deposited in
financial institutions banks or savings and loan associations
pursuant to the provisions of this Act, the interest received
thereon shall be credited as provided in Section 4.1 of the
State Finance Act "An Act in relation to State finance".
(Source: P.A. 84-1378.)
(15 ILCS 520/7) (from Ch. 130, par. 26)
Sec. 7. (a) State depositories. The State Treasurer may,
in his or her discretion, allow a financial institution to
become a State depository. To become an approved State
depository, a financial institution shall submit an
application or proposal, along with all required forms and
documentation, in a manner prescribed by the Treasurer.
Proposals made may either be approved or rejected by the State
Treasurer. A bank or savings and loan association whose
proposal is approved shall be eligible to become a State
depositary for the class or classes of funds covered by its
proposal. A bank or savings and loan association whose
proposal is rejected shall not be so eligible. The State
Treasurer shall seek to have at all times a total of not less
than 20 banks or savings and loan associations which are
approved as State depositaries for time deposits.
In order to receive funds under this Section, a financial
institution must become a State depository. Prior to allowing

a financial institution to become a State depository, the
State Treasurer shall consider the financial institution's
financial condition and community and economic development
efforts.
All applications submitted pursuant to this Section will
be reviewed in accordance with the terms defined by the
program documents and in the respective application and
related documents.
(b) Linked deposits. The State Treasurer may, in his or
her discretion, accept a proposal or application from a
financial an eligible institution which provides for a reduced
rate of interest provided that the financial such institution
uses the documents the use of deposited funds for the purpose
of economic and community development in the State of
Illinois, which may include, but not be limited to loans for
the following: agriculture, business, individuals, and
community development. Financial institutions, and, in some
cases borrowers, that utilize linked deposit funds shall
provide documentation regarding the use of such funds in a
manner prescribed by the Treasurer projects.
(b-5) (Blank). The State Treasurer may, in his or her
discretion, accept a proposal from an eligible institution
that provides for a reduced rate of interest, provided that
such institution agrees to expend an amount of money equal to
the amount of the reduction for the preservation of Cahokia
Mounds.

(b-10) (Blank). The State Treasurer may, in his or her
discretion, accept a proposal from an eligible institution
that provides for a reduced rate of interest, provided that
the institution agrees to expend an amount of money equal to
the amount of the reduction for senior centers.
(b-15) Access to capital. The State Treasurer may, in his
or her discretion, accept a proposal or application from a
financial institution for access to capital at market rate to
provide added liquidity or administer lending activities in
the State of Illinois.
(c) Home loans. The State Treasurer may, in his or her
discretion, accept a proposal or application from a financial
an eligible institution that provides for interest earnings on
deposits of State moneys to be held by the financial
institution in a separate account that the State Treasurer may
use to secure up to 10% of any (i) home loans to Illinois
citizens purchasing or refinancing a home in Illinois in
situations where the participating financial institution would
not offer the borrower a home loan under the financial
institution's prevailing credit standards without the
incentive of the 10% guarantee for the first 5 years of the
loan a reduced rate of interest on deposits of State moneys,
(ii) existing home loans of Illinois citizens who have failed
to make payments on a home loan as a result of a financial
hardship due to circumstances beyond the control of the
borrower where there is a reasonable prospect that the

borrower will be able to resume full mortgage payments, and
(iii) loans in amounts that do not exceed the amount of
arrearage on a mortgage and that are extended to enable a
borrower to become current on his or her mortgage obligation.
The following factors shall be considered by the
participating financial institution to determine whether the
financial hardship is due to circumstances beyond the control
of the borrower: (i) loss, reduction, or delay in the receipt
of income because of the death or disability of a person who
contributed to the household income, (ii) expenses actually
incurred related to the uninsured damage or costly repairs to
the mortgaged premises affecting its habitability, (iii)
expenses related to the death or illness in the borrower's
household or of family members living outside the household
that reduce the amount of household income, (iv) loss of
income or a substantial increase in total housing expenses
because of divorce, abandonment, separation from a spouse, or
failure to support a spouse or child, (v) unemployment or
underemployment, (vi) loss, reduction, or delay in the receipt
of federal, State, or other government benefits, and (vii)
participation by the homeowner in a recognized labor action
such as a strike. In determining whether there is a reasonable
prospect that the borrower will be able to resume full
mortgage payments, the participating financial institution
shall consider factors including, but not necessarily limited
to the following: (i) a favorable work and credit history,

(ii) the borrower's ability to and history of paying the
mortgage when employed, (iii) the lack of an impediment or
disability that prevents reemployment, (iv) new education and
training opportunities, (v) non-cash benefits that may reduce
household expenses, and (vi) other debts.
For the purposes of this Section, "home loan" means a
loan, other than an open-end credit plan or a reverse mortgage
transaction, for which (i) the principal amount of the loan
does not exceed the conforming loan size limit as established
from time to time by the Federal National Mortgage
Association, (ii) the borrower is a natural person, (iii) the
debt is incurred by the borrower primarily for personal,
family, or household purposes, and (iv) the loan is secured by
a mortgage or deed of trust on real estate upon which there is
located or there is to be located a structure designed
principally for the occupancy of no more than 4 families and
that is or will be occupied by the borrower as the borrower's
principal dwelling.
(d) If there is an agreement between the State Treasurer
and an eligible institution that details the use of deposited
funds, the agreement may not require the gift of money, goods,
or services to a third party; this provision does not restrict
the eligible institution from contracting with third parties
in order to carry out the intent of the agreement or restrict
the State Treasurer from placing requirements upon third-party
contracts entered into by the eligible institution.

(Source: P.A. 95-834, eff. 8-15-08.)
(15 ILCS 520/8) (from Ch. 130, par. 27)
Sec. 8. All proposals and applications shall be retained
by be filed in the office of the State Treasurer in accordance
with the State Treasurer's approved record retention policy,
and shall be open at all reasonable hours to public
inspection. The State Treasurer shall maintain a current list
of the financial institutions banks or savings and loan
associations serving as State depositories depositaries of
public moneys, with a statement of the rate of interest paid by
each and the maturity date of such deposits, which list shall
likewise be open to public inspection and shall be updated and
posted on the State Treasurer's official website. A copy of
each revision of the current list shall be supplied to the
Governor.
(Source: P.A. 83-541.)
(15 ILCS 520/9) (from Ch. 130, par. 28)
Sec. 9. The approval of any proposal or application shall
confer no right upon any financial institution bank or savings
and loan association to receive deposits of public money.
(Source: P.A. 83-541.)
(15 ILCS 520/10) (from Ch. 130, par. 29)
Sec. 10. The State Treasurer may enter into an agreement

in conformity with this Act with any financial institution
bank or savings and loan association relating to the deposit
of securities. Such agreement may authorize the holding by
such financial institution 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 financial institution bank or
savings and loan association, or under the custody and
safekeeping of another financial institution bank or savings
and loan association in this State for the depository
financial institution bank or savings and loan association, or
(b) in 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 financial institution bank or savings
and loan association.
(Source: P.A. 101-206, eff. 8-2-19; revised 9-12-19.)
(15 ILCS 520/11) (from Ch. 130, par. 30)
Sec. 11. Protection of public deposits; eligible
collateral.
(a) For deposits not insured by an agency of the federal
government, or above the applicable insured limits, the State
Treasurer, in his or her discretion, may accept as collateral
any of the following assets or classes of securities, provided
there has been no default in the payment of principal or
interest thereon:

(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.
(2) Direct and general obligation bonds of the State
of Illinois or of any other state of the United States.
(3) Revenue bonds of this State or any authority,
board, commission, or similar agency thereof.
(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.
(5) Revenue bonds of any city, town, county, or school
district of the State of Illinois.
(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.
(7) Illinois Affordable Housing Program Trust Fund
Bonds or Notes as defined in and issued pursuant to the

Illinois Housing Development Act.
(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.
(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
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.
(10) Share certificates issued to the depository
institution pledging them as security.

(b) The State Treasurer may establish a system to
aggregate permissible assets or securities received as
collateral from financial institutions in a collateral pool to
secure State deposits of the institutions that have pledged
assets or securities to the pool.
(c) The State Treasurer may at any time declare any
particular asset or security ineligible to qualify as
collateral when, in the Treasurer's judgment, it is deemed
desirable to do so.
(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 State Treasurer for the benefit of the People of
the State of Illinois, in a form that is acceptable to the
State Treasurer.
(Source: P.A. 101-206, eff. 8-2-19.)
(15 ILCS 520/12) (from Ch. 130, par. 31)
Sec. 12. All assets or securities deposited by financial
institutions approved banks or savings and loan associations
under the provisions of this Act shall remain the property of
the financial institutions banks or savings and loan
associations depositing such securities. Should the depository

depositary refuse or fail to pay over the moneys, or any part
thereof, deposited with it when due and payable, the State
Treasurer may sell such securities in accordance with the
terms of any agreement between the State Treasurer and the
depository financial institution depositary bank or savings
and loan association or, if applicable, institute suit on the
bond. If a depository depositary fails or suspends active
operations, the deposit in such depository depositary shall
become due and payable immediately, any agreement or contract
to the contrary notwithstanding. Such sale shall transfer
absolute ownership of the securities so sold to the vendee
thereof. The surplus, if any, over the amount due to the State
and the expenses of the sale shall be paid to the depository
depositary. Actions may be brought in the name of the People of
the State of Illinois to enforce the claims of the State with
respect to any assets or securities deposited by an approved
financial institution bank or savings and loan association.
(Source: P.A. 85-233.)
(15 ILCS 520/14) (from Ch. 130, par. 33)
Sec. 14. Interest. The State Treasurer shall enter into
deposit agreements with financial institutions specifying the
manner of interest calculation and compounding and the
frequency of interest collection regarding moneys deposited
under this Act.
(Source: P.A. 89-153, eff. 7-14-95.)

(15 ILCS 520/15) (from Ch. 130, par. 34)
Sec. 15. (a) A financial institution bank or savings and
loan association approved as a State depository depositary
shall cease to be an approved depository financial institution
bank or savings and loan association, and shall be
disqualified by the State Treasurer:
(1) Upon its failure to post a suitable bond or
deposit assets or securities with the State Treasurer;
(2) Upon its failure or refusal to pay over public
moneys or any part thereof;
(3) Upon its becoming insolvent or bankrupt, or being
placed in the hands of a receiver; or
(4) Upon a showing of unsatisfactory financial
condition through a report made to, or an examination made
by any regulatory or licensing body , the Comptroller of
the Currency, the Commissioner of Banks and Real Estate,
or the Federal Home Loan Bank or its successors.
(b) No approved depository depositary shall be
disqualified by the State Treasurer solely by reason of its
acquisition by another institution, unless the acquiring
institution does not meet the criteria established by the
State Treasurer.
(c) An approved depository may be disqualified by the
State Treasurer, in his or her sole discretion, for violating
the terms of the deposit agreement or any contract or

agreement with the State Treasurer.
(Source: P.A. 89-508, eff. 7-3-96.)
(15 ILCS 520/17) (from Ch. 130, par. 36)
Sec. 17. The State Treasurer shall keep in his or her
office a record showing his or her account with each financial
institution bank or savings and loan association, with entries
therein showing the dates and amounts of each deposit, rate of
interest, withdrawals and date of each, and balance on
deposit. Each account shall show the date and amount of
interest received during each interest paying period. Such
record shall at all times be open to public inspection.
(Source: P.A. 83-541.)
(15 ILCS 520/18) (from Ch. 130, par. 37)
Sec. 18. The State Treasurer shall make a monthly report
to the Governor giving a detailed statement of the balances on
deposit in the financial institutions several banks or savings
and loan associations, and the amount paid by each such
financial institution bank or savings and loan association as
interest on moneys so deposited. Such statement shall contain
the name of each financial institution bank or savings and
loan association, and the amount in such financial institution
bank or savings and loan association subject to draft at the
close of business on the last day of the month for which the
report is made, and on the last day of the month next

preceding. A copy of such report shall be retained by the State
Treasurer and shall be made available for inspection by the
public at any reasonable time. The State Treasurer may satisfy
the requirements of this Section by posting the monthly report
on the State Treasurer's official Internet website.
(Source: P.A. 99-856, eff. 8-19-16.)
(15 ILCS 520/19) (from Ch. 130, par. 38)
Sec. 19. Nothing in this Act contained shall be held to
prevent the State Treasurer from withdrawing any, or all, of
the moneys so deposited, for the purpose of paying the
appropriations and obligations of the State, nor to prevent
his or her transferring moneys from one financial institution
bank or savings and loan association to another, and nothing
herein contained shall in any way affect the duty of the State
Treasurer to keep a correct and accurate account of all moneys
received and to pay out same only on authority of law; but the
State Treasurer shall, as heretofore, be personally
responsible for the faithful accounting of all moneys paid to
him or her as State Treasurer.
(Source: P.A. 83-541.)
(15 ILCS 520/20) (from Ch. 130, par. 39)
Sec. 20. No financial institution bank or savings and loan
association holding moneys deposited therewith by the State
Treasurer, in accordance with the provisions of this Act, or

otherwise, and no officer of any such financial institution
bank or savings and loan association, or other person, shall
pay to, withhold for the benefit of, or contract in any manner
for the payment to such State Treasurer, or to any other person
for him or her, of any interest, or other fee, perquisite, or
emolument, on account of the deposit of such moneys, except
such interest as shall be paid to such State Treasurer for the
benefit of the State.
(Source: P.A. 83-541.)
(15 ILCS 520/22) (from Ch. 130, par. 41)
Sec. 22. No securities, deposited with the State
Treasurer, shall be removed from the State Treasury treasury
except under the terms of this Act. The misappropriation or
use of such securities, otherwise than as prescribed in this
Act, shall be deemed a Class 3 felony. The State Treasurer
shall be liable upon his official bond for any loss or
misappropriation of securities so deposited.
(Source: P.A. 77-2610.)
(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 State Treasury 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, 12 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 any State money in the State
Treasury 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 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 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.
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 State 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
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 State Treasury from which the State 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 funds in the State
Treasury from which the State Treasurer drew the investment.
Public Act 100-1107 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 State Treasurer to make
the necessary transfers.
The State Treasurer may, with the approval of the
Governor, invest or reinvest any State money in the State
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, or other obligations that are

issued or guaranteed by supranational entities; provided,
that at the time of investment, the entity has the United
States government as a shareholder.
(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 and the bank 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.
(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
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.
(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 10
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 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.
(8) Money market mutual funds registered under the
Investment Company Act of 1940.
(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, as now or hereafter amended or succeeded,
subject to the provisions of that Act and the regulations
issued thereunder.
(11) Investments made in accordance with the
Technology Development Act.

(12) Investments made in accordance with the Student
Investment Account Act.
(13) Investments made in accordance with any other law
that authorizes the State Treasurer to invest or deposit
funds.
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 State 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. 100-1107, eff. 8-27-18; 101-81, eff. 7-12-19;

101-206, eff. 8-2-19; 101-586, eff. 8-26-19; revised 9-25-19.)
(15 ILCS 520/22.8)
Sec. 22.8. The State Treasurer shall develop, publish, and
implement an investment policy covering the management of all
State funds under his or her control. The investment policy
shall be published each year in the State Treasurers' annual
report as prescribed in Section 15 of the State Treasurer Act
(15 ILCS 505/15). The policy shall also be published at least
once each year in at least one newspaper of general
circulation in both Springfield and Chicago and published on
the State Treasurer's official website. Any such investment
policy adopted by the State Treasurer shall be reviewed, and
updated if necessary, within 90 days following the
installation of a new State Treasurer.
The investment policy shall include material, relevant,
and decision-useful sustainability factors to be considered by
the State Treasurer in evaluating investment decisions,
including, but not limited to: (1) corporate governance and
leadership factors; (2) environmental factors; (3) social
capital factors; (4) human capital factors; and (5) business
model and innovation factors, as provided under the Illinois
Sustainable Investing.
(Source: P.A. 101-473, eff. 1-1-20.)
(15 ILCS 520/23) (from Ch. 130, par. 42)

Sec. 23. Any State official or other person who willfully
wilfully violates any provision of this Act, for which a
penalty is not otherwise prescribed, or who willfully wilfully
neglects or refuses to perform any duty imposed upon such
person by the terms of this Act, shall be guilty of a Class 4
felony.
(Source: P.A. 77-2830.)
(15 ILCS 520/1.2 rep.)
(15 ILCS 520/3 rep.)
(15 ILCS 520/4 rep.)
(15 ILCS 520/5 rep.)
(15 ILCS 520/6 rep.)
(15 ILCS 520/13 rep.)
(15 ILCS 520/16 rep.)
Section 15. The Deposit of State Moneys Act is amended by
repealing Sections 1.2, 3, 4, 5, 6, 13, and 16.
Section 20. The Public Funds Deposit Act is amended by
changing Sections 1 and 2 as follows:
(30 ILCS 225/1) (from Ch. 102, par. 34)
Sec. 1. Deposits. Any treasurer or other custodian of
public funds may deposit such funds in a savings and loan
association, savings bank, or State or national bank in this
State, or deposit those funds into demand deposit accounts in

accordance with Section 6.5 of the Public Funds Investment
Act. When such deposits become collected funds and are not
needed for immediate disbursement, they shall be invested
within 2 working days at prevailing rates or better. The
treasurer or other custodian of public funds may require such
bank, savings bank, or savings and loan association to deposit
with him or her securities guaranteed by agencies and
instrumentalities of the federal government equal in market
value to the amount by which the funds deposited exceed the
federally insured amount. Any treasurer or other custodian of
public funds may accept as security for public funds deposited
in such bank, savings bank, or savings and loan association
any securities or other eligible collateral authorized by
Sections 11 and 11.1 of the Deposit of State Moneys Act (15
ILCS 520/11 and 11.1) or Section 6 of the Public Funds
Investment Act (30 ILCS 235/6). Such treasurer or other
custodian is authorized to enter into an agreement with any
such bank, savings bank, or savings and loan association, with
any federally insured financial institution or trust company,
or with any agency of the U.S. government relating to the
deposit of such securities. Any such treasurer or other
custodian shall be discharged from responsibility for any
funds for which securities are so deposited with him or her,
and the funds for which securities are so deposited shall not
be subject to any otherwise applicable limitation as to
amount.

No bank, savings bank, or savings and loan association
shall receive public funds as permitted by this Section,
unless it has complied with the requirements established
pursuant to Section 6 of the Public Funds Investment Act or is
otherwise exempt from compliance as authorized by Section 6.5
of that Act.
(Source: P.A. 98-703, eff. 7-7-14.)
(30 ILCS 225/2) (from Ch. 102, par. 35)
Sec. 2. Nothing in this Act shall be construed to preclude
the deposit of public funds in accordance with any other Act
applicable thereto or to subject any treasurer or other
custodian to any liability to which he would not be subject in
the absence of this Act. This Act does not apply to the
Illinois State Treasurer. Deposit of State money by the
Illinois State Treasurer shall be governed by the Deposit of
State Moneys Act.
(Source: Laws 1963, p. 1797.)
Section 25. The Public Funds Investment Act is amended by
changing Section 1 as follows:
(30 ILCS 235/1) (from Ch. 85, par. 901)
Sec. 1. The words "public funds", as used in this Act, mean
current operating funds, special funds, interest and sinking
funds, and funds of any kind or character belonging to or in

the custody of any public agency.
The words "public agency", as used in this Act, mean the
State of Illinois, the various counties, townships, cities,
towns, villages, school districts, educational service
regions, special road districts, public water supply
districts, fire protection districts, drainage districts,
levee districts, sewer districts, housing authorities, the
Illinois Bank Examiners' Education Foundation, the Chicago
Park District, and all other political corporations or
subdivisions of the State of Illinois, now or hereafter
created, whether herein specifically mentioned or not. This
Act does not apply to the Illinois Prepaid Tuition Trust Fund,
private funds collected by the Illinois Conservation
Foundation, or pension funds or retirement systems established
under the Illinois Pension Code, except as otherwise provided
in that Code. This Act does not apply to the Illinois State
Treasurer, whose investment of State funds shall be governed
by the Deposit of State Moneys Act.
The words "governmental unit", as used in this Act, have
the same meaning as in the Local Government Debt Reform Act.
(Source: P.A. 98-297, eff. 1-1-14.)
Section 99. Effective date. This Act takes effect upon
becoming law.
INDEX
Statutes amended in order of appearance