Illinois State Senate District 16 issued the following announcement on Aug. 5.
The Illinois Treasurer will have more options to invest state money and accept deposit collateral on the state’s behalf under a new law, signed Friday, that State Senator Jacqueline Collins sponsored.
“At a time with anemic interest rates, when we are still recovering from a devastating governor’s administration that harmed finances, taxpayers deserve the assurance that we have every option available to act quickly to make smart, secure investments,” Collins said. “This removes burdensome regulations that require us to deposit money outside our own state, and increases options for those engaged in securities proceedings with the state of Illinois. It’s my belief that this empowers the Treasurer to act in the best interests of taxpayers.”
Senate Bill 1289 authorizes the Illinois Treasurer to hold securities in any bank or a depository trust company in the United States, altering current law that mandates they be held only in institutions based in New York. The legislation also adds to the classes of securities that the State Treasurer may accept as collateral for deposits that are not insured by the federal government. Further, it adds to and modifies the investments the State Treasurer may invest or reinvest in.
The new law is effective immediately.
Original source can be found here.