Bill Text: IL SB1263 | 2011-2012 | 97th General Assembly | Amended

NOTE: There are more recent revisions of this legislation. Read Latest Draft

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Bill Title: Amends the Deposit of State Moneys Act. Makes a technical change in a Section concerning interest on deposits.

Spectrum: Partisan Bill (Republican 3-0)

Status: (Passed) 2011-08-08 - Public Act . . . . . . . . . 97-0277 [SB1263 Detail]

Download: Illinois-2011-SB1263-Amended.html

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Sen. Suzi Schmidt

Filed: 4/8/2011

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AMENDMENT TO SENATE BILL 1263
AMENDMENT NO. ______. Amend Senate Bill 1263 by replacing
everything after the enacting clause with the following:
"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

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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.
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

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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,

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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.

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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
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

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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 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 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

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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.
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

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value fluctuation. The securities may be collateralized by cash
or collateral acceptable under Sections 11 and 11.1.
(Source: P.A. 95-521, eff. 8-28-07; 96-469, eff. 8-14-09;
96-795, eff. 7-1-10 (see Section 5 of P.A. 96-793 for the
effective date of changes made by P.A. 96-795); 96-870, eff.
1-21-10.)
Section 99. Effective date. This Act takes effect upon
becoming law.".