HB 273 — MUNICIPALITY-BOND INVESTMENT

HB0273 EngrossedEnrolled LRB093 04311 MKM 04358 b AN ACT concerning bonds.

(4) in short term obligations of corporations organized in the United States with assets exceeding $500,000,000 if (i) such obligations are rated at the time of purchase at one of the 3 highest classifications established by at least 2 standard rating services and which mature not later than 180 days from the date of purchase, (ii) such purchases do not exceed 10% of the corporation's outstanding obligations and (iii) no more than one-third of the public agency's funds may be HB0273 EngrossedEnrolled -2- LRB093 04311 MKM 04358 b invested in short term obligations of corporations;

All such HB0273 EngrossedEnrolled -3- LRB093 04311 MKM 04358 b securities so purchased shall mature or be redeemable on a date or dates prior to the time when, in the judgment of such governing authority, the public funds so invested will be required for expenditure by such public agency or its governing authority.

(2) have any interest, directly or indirectly, in HB0273 EngrossedEnrolled -4- LRB093 04311 MKM 04358 b the sellers, sponsors, or managers of those investments.

The government securities, unless registered or inscribed in the name of the public agency, shall be purchased through banks or trust companies authorized to do business in the HB0273 EngrossedEnrolled -5- LRB093 04311 MKM 04358 b State of Illinois.

HB0273 EngrossedEnrolled -6- LRB093 04311 MKM 04358 b (4) Trading partners shall be limited to banks or trust companies authorized to do business in the State of Illinois or to registered primary reporting dealers.

(i) Notwithstanding the foregoing restrictions on investment in instruments constituting repurchase agreements HB0273 EngrossedEnrolled -7- LRB093 04311 MKM 04358 b the Illinois Housing Development Authority may invest in, and any financial institution with capital of at least $250,000,000 may act as custodian for, instruments that constitute repurchase agreements, provided that the Illinois Housing Development Authority, in making each such investment, complies with the safety and soundness guidelines for engaging in repurchase transactions applicable to federally insured banks, savings banks, savings and loan associations or other depository institutions as set forth in the Federal Financial Institutions Examination Council Policy Statement Regarding Repurchase Agreements and any regulations issued, or which may be issued by the supervisory federal authority pertaining thereto and any amendments thereto;

Purchases of mutual funds that invest primarily in global government short term bonds shall be limited to funds with assets of at least $100 million and that are rated at the time of purchase as one of the 10 highest classifications HB0273 EngrossedEnrolled -8- LRB093 04311 MKM 04358 b established by a recognized rating service.

Likewise, every county, park district, sanitary district, or other municipal corporation, by __s___________ ordinance may use the money in the specified HB0273 EngrossedEnrolled -9- LRB093 04311 MKM 04358 b funds in the purchase of municipal bonds issued by the county, park district, sanitary district, or other municipal corporation, possessing the funds and representing an obligation and pledging the credit of that county, park district, sanitary district, or other municipal corporation, or bonds and other interest bearing obligations of the United States,_ -- of the State of Illinois,_____________t_____________ _____n_____________________i_______________________t____________ _____o_____________________t______________________e_____________ _____o_____________________e______________________a___ including savings accounts and savings certificates of deposit of any State or National Bank if such accounts and certificates are fully insured by the Federal Deposit Insurance Corporation, withdrawable capital accounts or deposits of State or federal chartered savings and loan associations which are fully insured by the Federal Savings and Loan Insurance Corporation, or treasury notes and other securities issued by agencies of the United States.

This Act takes effect upon HB0273 EngrossedEnrolled -10- LRB093 04311 MKM 04358 b becoming law.