SB2486 Summary

• Removes the "short term" designation from corporate obligations investments, allowing public agencies to invest in corporate bonds with maturities up to 3 years instead of the previous 270-day limit.

• Requires corporate obligations to be rated in the top 3 classifications by at least 2 rating services and limits such purchases to 10% of a corporation's outstanding obligations and one-third of a public agency's funds.

• Authorizes municipalities, park districts, forest preserve districts, conservation districts, counties, and other governmental units to invest in interest-bearing bonds of Illinois and other state political subdivisions rated in the 4 highest classifications.

• Allows community college districts to invest in mutual funds focusing on corporate investment-grade bonds and global government short-term bonds, subject to board approval and portfolio limits.

• Takes effect upon becoming law.