S-1344 - 08/14/2012 - FINANCE - Ordinances Supporting DocumentsAGENDA ITEM
Regular Board of Trustees Meeting
of
August 14, 2012
SUBJECT: Village Investment Policy
FROM: Sharon Dangles, Finance Director
BUDGET SOURCE/BUDGET IMPACT: N/A
ITEM 6.17. 1)
I "
ji
RECOMMENDED MOTION: I move that the Village Board adopt Ordinance S -1344, An
Ordinance Amending the Investment Policy for the Village of Oak Brook, Illinois.
Background/History:
The investment of Village funds is controlled by a formal Investment Policy that was first
adopted in 1995 and was last revised in 2007. The types of fixed income investments that are
allowed for non -home rule communities under state statutes are included within the investment
policy. Some recent changes to the Public Funds Investment Act (30 ILCS 235) have included
Section 2(a)(4), the maturity of short -term obligations, which currently is not later than 180 days
from the date of purchase and is now 270 days (Page 2 of State Statute). The other change was
on page 2 of the State Statute (a -1) stating that a municipality is authorized to invest its public
funds in interest bearing bonds of any county, township, city, village, incorporated town,
municipal corporation, or school district, whether the interest earned is taxable or tax- exempt
under federal law. These changes to the State Statute are covered under the Village's current
investment policy as it states that the Village may invest in any type of investment instrument
permitted by Illinois law, as described in Chapter 30 of the Illinois Compiled Statutes, 30 ILCS
235/2.
On page 2 of the Village's Investment Policy, item #7 was deleted, "Short term discount
obligations of the Federal National Mortgage Association" as it's already stated below on item
#8 in the policy.
Recommendation:
I recommend approval of the attached ordinance revising the Investment Policy for the Village of Oak
Brook.
21 11
30 ILCS 235/ Public Funds Investment Act.
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FINANCE
(30 ILCS 235/) Public Funds Investment Act.
(30 ILCS 235/0.01) (from Ch. 85, par. 900)
Sec. 0.01. Short title. This Act may be cited as the
Public Funds Investment Act.
(Source: P.A. 86- 1324.)
(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.
(Source: P.A. 91 -669, eff. 1 -1 -00; 92 -797, eff. 8- 15 -02.)
(30 ILCS 235/2) (from Ch. 85, par. 902)
Sec. 2. Authorized investments.
(a) Any public agency may invest any public funds as
follows:
(1) in-bonds, notes, certificates of indebtedness,
.treasury bills or other securities now or hereafter
issued, which are guaranteed by the full faith and credit
of the United States of America as to principal and
interest;
(2) in bonds, notes, debentures, or other similar
obligations of the United States of America, its agencies,
and its instrumentalities;
(3) in interest - bearing savings accounts,
interest - bearing certificates of deposit or interest -
bearing time deposits or any other investments
constituting direct obligations of any bank as defined by
the.Illincis Banking Act;
(4) in short term obligations of corporations
Qrglnized in the United States with assets exceeding
$500,000,000 if (i) such obligations are rated at the time
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of purchase at one of the 3 highest classifications
established by at least 2 standard rating services and
which mature not later than4& 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
invested in short term obligations of corporations; or
(5) in money market mutual funds registered under the
Investment Company Act of 1940, provided that the
portfolio of any such money market mutual fund is limited
to obligations described in paragraph (1) or (2) of this
subsection and to agreements to repurchase such
obligations.
(a -1),. In addition to any other investments authorized
under this Act, a municipality or a county may invest its
public funds in interest bearing bonds of any county,
' township, city, village, incorporated town, municipal
corporation, or school district, of the State of Illinois, of
any other state, or of any political subdivision or agency of
the State of Illinois or of any other state, whether the
interest earned thereon is taxable or tax - exempt under federal
law. The bonds shall be registered in the name of the
municipality or county or held under a custodial agreement at
a bank. The bonds shall be rated at the time of purchase
within the 4 highest general classifications established by a
rating service of nationally recognized expertise in rating
bonds of states and their political subdivisions.
.;w (b) Investments may be made only in banks which are
insured by the Federal Deposit Insurance Corporation. Any
public agency may invest any public funds in short term
discount obligations of the Federal National Mortgage
Association or in shares or other forms of securities legally
issuable by savings banks or savings and loan associations
incorporated under the laws of this State or any other state
or under the laws of the United States. Investments may be
made only in those savings banks or savings and loan
associations the shares, or investment certificates of which
are insured by the Federal Deposit Insurance Corporation. Any
such securities may be purchased at the offering or market
price thereof at the time of such purchase. All such
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. The expressed judgment of any such
governing authority as to the time when any public funds will
be required for expenditure or be redeemable is final and
conclusive. Any public agency may invest any public funds in
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 any such credit union must be
located within the State of Illinois. Investments may be made
only in those credit unions the accounts of which are insured
by applicable law.
(c) For purposes of this Section, the term "agencies of
the United States of America" includes: (i) the federal land
banks, federal intermediate credit banks, banks for
cooperative, 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
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mortgage corporation; and (iii) any other agency created by
Act of Congress.
(d) Except for pecuniary interests permitted under
subsection (f) of Section 3 -14 -4 of the Illinois Municipal
Code or under Section 3.2 of the Public Officer Prohibited
Practices Act, no person acting as treasurer or financial
officer or who is employed in any similar capacity by or for a
public agency may do any of the following:
(1) have any interest, directly or indirectly, in any
investments in which the agency is authorized to invest.
(2) have any interest, directly or indirectly, in the
sellers, sponsors, or managers of those investments.
(3) receive, in any manner, compensation of any kind
from any investments in which the agency is authorized to
invest.
(e) Any public agency may also invest any public funds in
a Public Treasurers' Investment Pool created under Section 17
of the State Treasurer Act. Any public agency may also invest
any public funds in a fund managed, operated, and administered
by a bank, subsidiary of a bank, or subsidiary of a bank
holding company or use the services of such an entity to hold
and invest or advise regarding the investment of any public
funds.
(f) To the extent a public agency has custody of funds not
owned by it or another public agency and does not otherwise
have authority to invest such funds, the public agency may
invest such funds as if they were its own. Such funds must be
released to the appropriate person at the earliest reasonable
time, but in no case exceeding 31 days, after the private
person becomes entitled to the receipt of them. All earnings
accruing on any investments or deposits made pursuant to the
provisions of this Act shall be credited to the public agency
by or for which such investments or deposits were made, except
as provided otherwise in Section 4.1 of the State Finance Act
or the Local Governmental Tax Collection Act, and except where
by specific statutory provisions such earnings are directed to
be credited to and paid to a particular fund.
(g) A public agency may purchase or invest in 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 said Act
and the regulations issued thereunder. 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 State of Illinois.
(h) Except for repurchase agreements of government
securities which are subject to the Government Securities Act
of 1986, as now or hereafter amended or succeeded, no public
i..
agency may purchase or invest in instruments which constitute
repurchase agreements, and no financial institution may enter
into such an agreement with or on behalf of any public agency
unless the instrument and the transaction meet the following
requirements:
(1) The securities, unless registered or inscribed in
the name of the public agency, are purchased through banks
. or trust companies authorized to do business in the State
of Illinois.
(2) An authorized public officer after ascertaining
which -firm will give the most favorable rate of interest,
directs the custodial bank to "purchase" specified
securities from a designated institution. The "custodial
bank" is the bank or trust company, or agency of
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government, which acts for the public agency in connection
with repurchase agreements involving the investment of
funds by the public agency. The State Treasurer may act as
custodial bank for public agencies executing repurchase
_ agreements. To the extent the Treasurer acts in this
capacity, he is hereby authorized to pass through to such
public agencies any charges assessed by the Federal
Reserve Bank.
(3) A custodial bank must be a member bank of the
Federal Reserve System or maintain accounts with member
banks. All transfers of book -entry securities must be
accomplished on a Reserve Bank's computer records through
a member bank of the Federal Reserve System. These
securities must be credited to the public agency on the
records of the custodial bank and the transaction must be
confirmed in writing to the public agency by the custodial
bank.
(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.
(5) The security interest must be perfected.
(6) The public agency enters into a written master
repurchase agreement which outlines the basic
responsibilities and liabilities of both buyer and seller.
(7) Agreements shall be for periods of 330 days or
less.
(8) The authorized public officer of the public
agency informs the custodial bank in writing of the
maturity details of the repurchase agreement.
(9) The custodial bank must take delivery of and
maintain the securities in its custody for the account of
the public agency and confirm the transaction in writing
to the public agency. The Custodial Undertaking shall
provide that the custodian takes possession of the
securities exclusively for the public agency; that the
securities are free of any claims against the trading
partner; and any claims by the custodian are subordinate
to the public agency's claims to rights to those
securities.
(10) The obligations purchased by a public agency may
only be sold or presented for redemption or payment by the
fiscal agent bank or trust company holding the obligations
upon the written instruction of the public agency or
officer authorized to make such investments.
(11) The custodial bank shall be liable to the public
agency for any monetary loss suffered by the public agency
due to the failure of the custodial bank to take and
.maintain possession of such securities.
• (i) Notwithstanding the foregoing restrictions on
investment in instruments constituting repurchase agreements
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
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thereto and any amendments thereto; provided further that the
securities shall be either (i) direct general obligations of,
or obligations the payment of the principal of and /or interest
on which are unconditionally guaranteed by, the United States
of America or (ii) any obligations of any agency, corporation
or subsidiary thereof controlled or supervised by and acting
as an instrumentality of the United States Government pursuant
to authority granted by the Congress of the United States and
provided further that the security interest must be perfected
by either the Illinois Housing Development Authority, its
custodian or its agent receiving possession of the securities
either physically or transferred through a nationally
recognized book entry system.
(j) In addition to all other investments authorized under
this Section, a community college district may invest public
funds in any mutual funds that invest primarily in corporate
investment grade or global government short term bonds.
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
established by a recognized rating service. The investments
shall be subject to approval by the local community college
board of trustees. Each community college board of trustees
shall develop a policy regarding the percentage of the
college's investment portfolio that can be invested in such
funds.
Nothing in this Section shall be construed to authorize an
intergovernmental risk management entity to accept the deposit
of public funds except for risk management purposes.
(Source: P.A. 96 -741, eff. 5- 25 -09; 97 -129, eff. 7- 14 -11.)
(30 ILCS 235/2.5)
Sec. 2.5. Investment policy.
(a) Investment of public funds by a public agency shall be
governed by a written investment policy adopted by the public
agency. The level of detail and complexity of the investment
policy shall be appropriate to the nature of the funds, the
purpose for the funds, and the amount of the public funds
within the investment portfolio. The policy shall address
safety of principal, liquidity of funds, and return on
investment and shall require that the investment portfolio be
structured in such manner as to provide sufficient liquidity
to pay obligations as they come due. In addition, the
investment policy shall include or address the following:
(1) a listing of authorized investments;
(2) a rule, such as the "prudent person rule ",
establishing the standard of care that must be maintained
by the persons investing the public funds;
(3) investment guidelines 'that are appropriate to the
nature of the funds, the purpose for the funds, and the
amount of the public funds within the investment
portfolio;
(4) a policy regarding diversification of the
investment portfolio that is appropriate to the nature of
the funds, the purpose for the funds, and the amount of
the public funds within the investment portfolio;
(5) guidelines regarding collateral requirements, if
any, for the deposit of public funds in a financial
institution made pursuant to this Act, and, if applicable,
guidelines for contractual arrangements for the custody
and safekeeping of that collateral;
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(6) a policy regarding the establishment of a system
of internal controls and written operational procedures
designed to prevent losses of funds that might arise from
fraud, employee error, misrepresentation by third parties,
or imprudent actions by employees of the entity;
(7) identification of the chief investment officer
who is responsible for establishing the internal controls
and written procedures for the operation of the investment
program;
(8) performance measures that are appropriate to the
nature of the funds, the purpose for the funds, and the
amount of the public funds within the investment
portfolio;
(9) a policy regarding appropriate periodic review of
the investment portfolio, its effectiveness in meeting the
public agency's needs for safety, liquidity, rate of
return, and diversification, and its general performance;
(10) a policy establishing at least quarterly written
reports of investment activities by the public agency's
chief financial officer for submission to the governing
body and chief executive officer of the public agency. The
reports shall include information regarding securities in
the portfolio by class or type, book value, income earned,
and market value as of the report date;
(11) a policy regarding the selection of investment
advisors, money managers, and financial institutions; and
(12) a policy regarding ethics and conflicts of
interest.
(b) For purposes of the State or a county, the investment
policy shall be adopted by the elected treasurer and presented
to the chief executive officer and the governing body. For
purposes of any other public agency, the investment policy
shall be adopted by the governing body of the public agency.
(c) The investment policy shall be made available to the
public at the main administrative office of the public agency.
(d) The written investment policy required under this
Section shall be developed and implemented by January 1, 2000.
(Source: P.A. 90 -688, eff. 7- 31 -98.)
(30 ILCS 235/2.10)
Sec. 2.10. Unit of local government; deposit at reduced
rate of interest. The treasurer of a unit of local government
may, in his or her discretion, deposit public moneys of that
unit of local government in a financial institution pursuant
to an agreement 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.
(Source: P.A. 93 -246, eff. 7- 22 -03.)
(30 ILCS 235/3) (from Ch. 85, par. 903)
Sec. 3. If any securities, purchased under authority of
Section 2 hereof, are issuable to a designated payee or to the
order of a designated payee, then the public agency shall be
so designated, and further, if such securities are purchased
with money taken from a particular fund of a public agency,
the name of such fund shall be added to that of such public
agency. If any such securities are registerable, either as to
principal or interest, or both, then such securities shall be
so registered in the name of the public agency, and in the
name of the fund to which they are to be credited.
(Source: Laws 1943, vol. 1, p. 951.)
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(30 ILCS 235/4) (from Ch. 85, par. 904)
Sec. 4. All securities purchased under the authority of
this Act shall be held for the benefit of the public agency
which purchased them, and if purchased with money taken from a
particular fund, such securities shall be credited to and
deemed to be a part of such fund, and shall be held for the
benefit thereof. All securities so purchased shall be
deposited and held in a safe place by the person or persons
having custody of the fund to which they are credited, and
such person or persons are responsible upon his or their
official bond or bonds for the safekeeping of all such
securities. Any securities purchased by any such public agency
under authority of this Act, may be sold at any time, at the
then current market price thereof, by the governing authority
of such public agency. Except as provided in Section 4.1 of
"An Act in relation to State finance ", all payments received
as principal or interest, or otherwise, derived from any such
securities shall be credited to the public agency and to the
fund by or for which such securities were purchased.
(Source: P.A. 84- 1378.)
(30 ILCS 235/5) (from Ch. 85, par. 905)
Sec. 5. This Act, without reference to any other statute,
shall be deemed full and complete authority for the investment
of public funds, as hereinabove provided, and shall be
construed as an additional and alternative method therefor.
(Source: Laws 1943, vol. 1, p. 951.)
(30 ILCS 235/6) (from Ch. 85, par. 906)
Sec. 6. Report of financial institutions.
(a) No bank shall receive any public funds unless it has
furnished the corporate authorities of a public agency
submitting a deposit with copies of the last two sworn
statements of resources and liabilities which the bank is
required to furnish to the Commissioner of Banks and Real
Estate or to the Comptroller of the Currency. Each bank
designated as a depository for public funds shall, while
acting as such depository, furnish the corporate authorities
of a public agency with a copy of all statements of resources
and liabilities which it is required to furnish to the
Commissioner of Banks and Real Estate or to the Comptroller of
the Currency; provided, that if such funds or moneys are
deposited in a bank, the amount of all such deposits not
collateralized or insured by an agency of the federal
government shall not exceed 75$ of the capital stock and
surplus of such bank, and the corporate authorities of a
public agency submitting a deposit shall not be discharged
from responsibility for any funds or moneys deposited in any
bank in excess of such limitation.
(b) No savings bank or savings and loan association shall
receive public funds unless it has furnished the corporate
authorities of a public agency submitting a deposit with
copies of the last 2 sworn statements of resources and
liabilities which the savings bank or savings and loan
association is required to furnish to the Commissioner of
Banks and Real Estate or the Federal Deposit Insurance
Corporation. Each savings bank or savings and loan association
designated as a depository for public funds shall, while
acting as such depository, furnish the corporate authorities
of a public agency with a copy of all statements of resources
and liabilities which it is required to furnish to the
Commissioner of Banks and Real Estate or the Federal Deposit
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Insurance Corporation; provided, that if such funds or moneys
are deposited in a savings bank or savings and loan
association, the amount of all such deposits not
collateralized or insured by an agency of the federal
government shall not exceed 75% of the net worth of such
savings bank or savings and loan association as defined by the
Federal Deposit Insurance Corporation, and the corporate
authorities of a public agency submitting a deposit shall not
be discharged from responsibility for any funds or moneys
deposited in any savings bank or savings and loan association
in excess of such limitation.
(c) No credit union shall receive public funds unless it
has furnished the corporate authorities of a public agency
submitting a share deposit with copies of the last two reports
of examination prepared by or submitted to the Illinois
Department of Financial Institutions or the National Credit
Union Administration. Each credit union designated as a
depository for public funds shall, while acting as such
depository, furnish the corporate authorities of a public
agency with a copy of all reports of examination prepared by
or furnished to the Illinois Department of Financial
Institutions or the National Credit Union Administration;
provided that if such funds or moneys are invested in a credit
union account, the amount of all such investments not
collateralized or insured by an agency of the federal
government or other approved share insurer shall not exceed
50% of the unimpaired capital and surplus of such credit
union, which shall include shares, reserves and undivided
earnings and the corporate authorities of a public agency
making an investment shall not be discharged from
responsibility for any funds or moneys invested in a credit
union in excess of such limitation.
(d) Whenever a public agency deposits any public funds in
a financial institution, the public agency may enter into an
agreement with the financial institution requiring any funds
not insured by the Federal Deposit Insurance Corporation or
the National Credit Union Administration or other approved
share insurer to be collateralized by 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
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
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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) Certificates of deposit or share certificates
issued to the depository institution pledging them as
security. The public agency may require security in the
amount of 125% of the value of the public agency deposit.
Such certificate of deposit or share certificate shall:
(i) be fully insured by the Federal Deposit
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;
(ii) be issued by a financial institution having
assets of $15,000,000 or more; and
(iii) be issued by either a savings and loan
association having a capital to asset ratio of at
least 2W, 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%.
The depository institution shall effect the assignment of
the certificate of deposit or share certificate to the public
agency 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.
(e) The public agency may accept a system established by
the State Treasurer to aggregate permissible securities
received as collateral from financial institutions in a
collateral pool to secure public deposits of the institutions
that have pledged securities to the pool.
(f) The public agency may at any time declare any
particular security ineligible to qualify as collateral when,
in the public agency's judgment, it is deemed desirable to do
SO.
(g) Notwithstanding any other provision of this Section,
as security a public agency may, at its 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 public agency for the benefit of the People of
the unit of government, in a form that is acceptable to the
public agency.
(h) Paragraphs (a), (b), (c), (d), (e), (f), and (g) of
this Section do not apply to the University of Illinois,
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Southern Illinois University, Chicago State University,
Eastern Illinois University, Governors State University,
Illinois State University, Northeastern Illinois University,
Northern Illinois University, Western Illinois University, the
Cooperative Computer Center and public community colleges.
(Source: P.A. 95 -331, eff. 8- 21 -07.)
(30 ILCS 235/6.5)
Sec. 6.5. Federally insured deposits at Illinois financial
institutions.
(a) Notwithstanding any other provision of this Act or any
other statute, whenever a public agency invests public funds
in an interest - bearing savings account, interest - bearing
certificate of deposit, or interest - bearing time deposit under
Section 2 of this Act, the provisions of Section 6 of this Act
and any other statutory requirements pertaining to the
eligibility of a bank to receive or hold public deposits or to
the pledging of collateral by a bank to secure public deposits
do not apply to any bank receiving or holding all or part of
the invested public funds if (i) the public agency initiates
the investment at or through a bank located in Illinois and
(ii) the invested public funds are at all time fully insured
by an agency or instrumentality of the federal government.
(b) Nothing in this Section is intended to:
(1) prohibit a public agency from requiring the bank
at or through which the investment of public funds is
initiated to provide the public agency with the
information otherwise required by subsections (a), (b), or
(c) of Section 6 of this Act as a condition of investing
the public funds at or through that bank; or
(2) permit a bank to receive or hold public deposits
if that bank is prohibited from doing so by any rule,
sanction, or order issued by a regulatory agency or by a
court.
(c) For purposes of this Section, the term "bank" includes
any person doing a banking business whether subject to the
laws of this or any other jurisdiction.
(Source: P.A. 93 -756, eff. 7- 16 -04.)
(30 ILCS 235/7) (from Ch. 85, par. 907)
Sec. 7. 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.
(Source: P.A. 84 -754.)
(30 ILCS 235/8)
Sec. B. Consideration of financial institution's
commitment to its community.
(a) In addition to any other requirements of this Act, a
public agency is authorized to consider the financial
institution's record and current level of financial commitment
to its local community when deciding whether to deposit public
funds in that financial institution. The public agency may
consider factors including, but not necessarily limited to:
(1) for financial institutions subject to the federal
Community Reinvestment Act of 1977, the current and
historical ratings that the financial institution has
received, to the extent that those ratings are publicly
available, under the federal Community Reinvestment Act of
1977;
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30 ILCS 235/ Public Funds Investment Act.
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(2) any changes in ownership, management, policies,
or practices of the financial institution that may affect
the level of the financial institution's commitment to its
community;
(3) the financial impact that the withdrawal or
denial of deposits of public funds might have on the
financial institution;
(4) the financial impact to the public agency as a
result of withdrawing public funds or refusing to deposit
additional public funds in the financial institution; and
(5) any additional burden on the resources of the
public agency that might result from ceasing to maintain
deposits of public funds at the financial institution
under consideration.
(b) Nothing in this Section shall be construed as
authorizing the public agency to conduct an examination or
investigation of a financial institution or to receive
information that is not publicly available and the disclosure
of which is otherwise prohibited by law.
(Source: P.A. 93 -251, eff. 7- 1 -04.)
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ORDINANCE 2012- FI -EXI -S -1344
AN ORDINANCE AMENDING THE INVESTMENT POLICY
FOR THE VILLAGE OF OAK BROOK, ILLINOIS
WHEREAS, on January 24, 1995, the Board of Trustees of the Village of Oak Brook adopted a
uniform and comprehensive investment policy encompassing funds governed by it; and
WHEREAS, the Village Board last amended said investment policy with the passage of
Ordinance S -1185 on February 27, 2007; and
WHEREAS, it is in the best interests of the Village of Oak Brook that the attached Fourth
Amended Investment Policy be adopted.
NOW, THEREFORE, BE IT ORDAINED BY THE PRESIDENT AND BOARD OF TRUSTEES OF
THE VILLAGE OF OAK BROOK, DU PAGE AND COOK COUNTIES, ILLINOIS as follows:
Section 1: That the provisions of the preamble hereinabove set forth are hereby adopted as
though fully set forth herein.
Section 2: That the Fourth Amended Investment Policy, a copy of which is attached hereto and
incorporated herein as Exhibit A, is hereby approved and adopted in its entirety and supercedes all prior
editions of the Investment Policy.
Section 3: That the Village Clerk is hereby authorized and directed to publish this ordinance in
pamphlet form in the manner provided by law.
Section 4: That all ordinances or parts thereof in conflict with the provisions of this ordinance be
and the same are hereby repealed to the extent of such conflict.
Section 5: That this ordinance shall be in full force and effect from and after passage and
approval pursuant to law.
APPROVED THIS 14th day of August, 2012.
PASSED THIS 14th day of August, 2012.
Nays:
Gopal G. Lalmalani
Village President
ATTEST:
Charlotte K. Pruss
Village Clerk