(15 ILCS 520/7) (from Ch. 130, par. 26)
Sec. 7.
(a) 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.
(b) The State Treasurer may, in his
discretion, accept a proposal from an eligible institution which provides
for a reduced rate of interest provided that such institution documents the
use of deposited funds for community development projects.
(b‑5) 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) 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.
(c) The State Treasurer may, in his or her discretion, accept a proposal
from an eligible institution that provides for interest earnings on deposits
of State moneys to be held by the 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 a home in Illinois in situations where the participating
financial institution would not offer the borrower a home loan under the
institution's prevailing credit standards without the incentive of 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 50% of the conforming loan size
limit for a single‑family dwelling 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. 92‑482, eff. 8‑23‑01; 92‑531, eff. 2‑8‑02; 92‑625, eff.
7‑11‑02; 93‑246, eff. 7‑22‑03.)
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(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,
the State Treasurer, in his or her discretion, may accept as collateral any
of the
following classes of securities, provided there has been no default in the
payment of principal or interest thereon:
(1) Bonds, notes, or other securities constituting |
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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.
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(2) Direct and general obligation bonds of the State
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of Illinois or of any other state of the United States.
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(3) Revenue bonds of this State or any authority,
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board, commission, or similar agency thereof.
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(4) Direct and general obligation bonds of any city,
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town, county, school district, or other taxing body of any state, the debt service of which is payable from general ad valorem taxes.
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(5) Revenue bonds of any city, town, county, or
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school district of the State of Illinois.
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(6) Obligations issued, assumed, or guaranteed by
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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.
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(7) Illinois Affordable Housing Program Trust Fund
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Bonds or Notes as defined in and issued pursuant to the Illinois Housing Development Act.
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(8) In an amount equal to at least market value of
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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 Guaranty under the Illinois Farm Development Act.
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(b) The State Treasurer may establish a system to aggregate permissible
securities received as collateral from financial institutions in a
collateral pool to secure State deposits of the institutions that have
pledged securities to the pool.
(c) The Treasurer may at any time declare any particular 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. 93‑561, eff. 1‑1‑04.)
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(15 ILCS 520/11.1) (from Ch. 130, par. 30.1)
Sec. 11.1.
The State Treasurer may, in his or her discretion, accept as
security for State deposits insured certificates of deposit or share
certificates issued to the depository institution pledging them as security
and may require security in the amount of 125% of the value of the State
deposit. Such certificate of deposit or share certificate shall:
(1) be fully insured by the Federal Deposit |
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Insurance Corporation, the Federal Savings and Loan Insurance Corporation or the National Credit Union Share Insurance Fund or issued by a depository institution which is rated within the 3 highest classifications established by at least one of the 2 standard rating services;
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(2) be issued by a financial institution having
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assets of $15,000,000 or more; and
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(3) be issued by either a savings and loan
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association having a capital to asset ratio of at least 2%, by a bank having a capital to asset ratio of at least 6% or by a credit union having a capital to asset ratio of at least 4%.
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The depository institution shall effect the assignment of the certificate
of deposit or share certificate to the State Treasurer and shall agree,
that in the event the issuer of the certificate fails to maintain the
capital to asset ratio required by this Section, such certificate of deposit
or share certificate shall be replaced by additional suitable security.
(Source: P.A. 93‑561, eff. 1‑1‑04.)
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(15 ILCS 520/15) (from Ch. 130, par. 34)
Sec. 15.
(a) A bank or savings and loan association approved as a
depositary shall cease to be an approved bank or savings and loan
association, and shall be disqualified by the State Treasurer:
(1) Upon its failure to post a suitable bond or |
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deposit securities with the State Treasurer;
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(2) Upon its failure or refusal to pay over public
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moneys or any part thereof;
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(3) Upon its becoming insolvent or bankrupt, or
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being placed in the hands of a receiver;
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(4) Upon a showing of unsatisfactory financial
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condition through a report made to, or an examination made by, the Comptroller of the Currency, the Commissioner of Banks and Real Estate, or the Federal Home Loan Bank or its successors.
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(b) No approved depositary shall be disqualified by the State
Treasurer solely by reason of its acquisition by another institution.
(Source: P.A. 89‑508, eff. 7‑3‑96.)
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(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
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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.
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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,
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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.
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(2) Bonds, notes, debentures, or other similar
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obligations of the United States of America, its agencies, and instrumentalities.
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(2.5) Bonds, notes, debentures, or other similar
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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.
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(3) Interest‑bearing savings accounts,
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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.
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(4) Interest‑bearing accounts, certificates of
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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.
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(5) Dividend‑bearing share accounts, share
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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.
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(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.
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(7) Short‑term obligations of corporations organized
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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, (iii) no more than one‑third of the public agency's funds are invested in short‑term obligations of corporations, and (iv) the corporation is not a forbidden entity, as defined in Section 22.6 of the Deposit of State Moneys Act.
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(8) Money market mutual funds registered under the
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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.
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(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.
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(10) Repurchase agreements of government securities
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having the meaning set out in the Government Securities Act of 1986 subject to the provisions of that Act and the regulations issued thereunder.
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(11) Investments made in accordance with the
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Technology Development Act.
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For purposes of this Section, "agencies" of the United States
Government includes:
(i) the federal land banks, federal intermediate
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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;
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(ii) the federal home loan banks and the federal
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home loan mortgage corporation;
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(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.)
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(15 ILCS 520/22.6)
(For force and effect of certain provisions, see Section 90 of P.A. 94‑79)
Sec. 22.6. Prohibited deposits.
(a) Notwithstanding any other provision of law, the State Treasurer shall not deposit any funds into or otherwise contract with any financial institution unless an expressly authorized officer of that financial institution annually certifies, in the manner and form established by the Treasurer, that the financial institution has implemented policies and practices that require loan applicants to certify that they are not forbidden entities.
(b) For the purposes of this Section:
"Company" is any entity capable of affecting commerce, including but not limited to (i) a government, government agency, natural person, legal person, sole proprietorship, partnership, firm, corporation, subsidiary, affiliate, franchisor, franchisee, joint venture, trade association, financial institution, utility, public franchise, provider of financial services, trust, or enterprise; and (ii) any association thereof.
"Forbidden entity" means any of the following:
(1) The government of the Republic of the Sudan and
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any of its agencies, including but not limited to political units and subdivisions;
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(2) Any company that is wholly or partially managed
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or controlled by the government of the Republic of the Sudan and any of its agencies, including but not limited to political units and subdivisions;
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(3) Any company (i) that is established or organized
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under the laws of the Republic of the Sudan; or (ii) whose principal place of business is in the Republic of the Sudan;
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(4) Any company (i) identified by the Office of
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Foreign Assets Control in the United States Department of the Treasury as sponsoring terrorist activities; or (ii) fined, penalized, or sanctioned by the Office of Foreign Assets Control in the United States Department of the Treasury for any violation of any United States rules and restrictions relating to the Republic of the Sudan that occurred at any time following the effective date of this Act; and
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(5) Any company who has failed to certify under oath
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that it does not own or control any property or asset located in, have employees or facilities located in, provide goods or services to, obtain goods or services from, have distribution agreements with, issue credits or loans to, purchase bonds or commercial paper issued by, or invest in (i) the Republic of the Sudan; or (ii) any company domiciled in the Republic of the Sudan.
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Notwithstanding the foregoing, the term "forbidden
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entity" shall exclude companies, except agencies of the Republic of the Sudan, who are certified as Non‑Government Organizations by the United Nations, or who engage solely in (i) the provision of goods and services intended to relieve human suffering or to promote welfare, health, religious and spiritual activities, and education for humanitarian purposes or otherwise; or (ii) journalistic activities.
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(c) In addition to any other penalties and remedies
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available under the law of Illinois and the United States, any transaction between a financial institution and a company that violates the provisions of this Act shall be void or voidable, at the joint discretion of the Treasurer and the financial institution.
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(d) This Section does not apply to (a) linked deposits
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made by the Treasurer into financial institutions in return for that institution's commitment to provide, through loans or other financial support, agreed benefits in projects undertaken in the community; and (b) the purchase of depository, custodial, processing, and advisory services that are necessary to fulfill the Treasurer's obligations and responsibilities.
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(Source: P.A. 94‑79, eff. 1‑27‑06; for force and effect of certain provisions, see Section 90 of P.A. 94‑79.)
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