SB1289 Summary

• Amends the Deposit of State Moneys Act to allow the State Treasurer to hold securities in custody with banks or depository trust companies located anywhere in the United States, rather than restricting custody to New York City institutions.

• Adds a new category of eligible collateral for state deposits: obligations of corporations or limited liability companies organized in the United States with assets exceeding $500 million, if rated in the top 3 rating classifications by at least 2 rating services and not on the Illinois Investment Policy Board's restricted list.

• Removes the price restriction ("at a price not to exceed par") on state investments in bonds issued by counties or municipal corporations of Illinois.

• Allows the State Treasurer to invest up to 5% of the College Savings Pool Administrative Trust Fund, Illinois Public Treasurer Investment Pool Administrative Trust Fund, and State Treasurer's Administrative Fund in publicly traded stocks, with limitations on portfolio concentration and restrictions on companies on the Illinois Investment Policy Board's restricted list.

• Extends the maturity timeline for long-term corporate obligations from 5 years to 10 years maximum and increases the investment limitation from 5% to one-third of public agency funds for certain corporate debt obligations.