SB2968 Summary

• Expands State Treasurer authority to allow any eligible financial institution (not just banks or savings and loans) to become a State depository with proposals subject to approval or rejection.

• Permits State Treasurer to accept reduced interest rates from financial institutions that document use of deposited funds for economic development projects, including agricultural, business, and community development projects.

• Eliminates Governor approval requirement for State Treasurer's investment decisions; authorizes investments in supranational entities' obligations (where U.S. is a shareholder), foreign government bonds meeting 25-year payment history standards, and corporate obligations of entities with significant Illinois presence.

• Modifies home loan guarantee program to clarify the 10% State-secured guarantee applies for first 5 years of loans and expands eligible loan types for borrowers in financial hardship.

• Removes provisions requiring interest reductions for specific purposes (Cahokia Mounds preservation and senior centers); blanks out those subsections.