(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 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 § 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.
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Terms Used In Illinois Compiled Statutes 15 ILCS 520/11

  • Assets: (1) The property comprising the estate of a deceased person, or (2) the property in a trust account.
  • Corporation: A legal entity owned by the holders of shares of stock that have been issued, and that can own, receive, and transfer property, and carry on business in its own name.
  • Evidence: Information presented in testimony or in documents that is used to persuade the fact finder (judge or jury) to decide the case for one side or the other.
  • Federal Deposit Insurance Corporation: A government corporation that insures the deposits of all national and state banks that are members of the Federal Reserve System. Source: OCC
  • National Credit Union Administration: The federal regulatory agency that charters and supervises federal credit unions. (NCUA also administers the National Credit Union Share Insurance Fund, which insures the deposits of federal credit unions.) Source: OCC
  • Obligation: An order placed, contract awarded, service received, or similar transaction during a given period that will require payments during the same or a future period.
  • State: when applied to different parts of the United States, may be construed to include the District of Columbia and the several territories, and the words "United States" may be construed to include the said district and territories. See Illinois Compiled Statutes 5 ILCS 70/1.14
  • United States: may be construed to include the said district and territories. See Illinois Compiled Statutes 5 ILCS 70/1.14

     (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 § 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.
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