Current through Register Vol. 48, No. 52, December 27, 2024
a) The term "using educational agencies"
means "community colleges" as defined in the Public Community College Act [ 110
ILCS 805 ].
b) If the use of a
trust is requested by the chief executive officer of any using educational
agency and approved by the Executive Director, those monies required to be paid
by law by any using educational agency to the Board for that agency's
contribution to a construction project may be deposited under a trust agreement
with an Illinois bank of the agency's choice. The using educational agency
shall receive any interest on the deposited contribution.
c) Pursuant to application by the using
educational agency, a trust agreement by the bank and the using educational
agency shall contain as a minimum the following provisions:
1) The amount to be deposited subject to the
trust;
2) That earnings on the
trust corpus be paid by the trustee to the using educational agency not less
frequently than quarterly;
3) That
the Executive Director or alternate for this purpose designated by the Board,
acting in his or her official capacity, is the only person authorized to direct
the trustee to make payment out of the trust;
4) That the right of the Executive Director,
or alternate for this purpose designated by the Board, to direct payment is
restricted in that any funds so directed shall be made payable only to: "The
Order of State Treasurer of Illinois, Capital Development Board, Contributory
Trust Fund";
5) That the Bank shall
pay the funds within 2 working days after receipt of the written directions of
the Executive Director or alternate for this purpose designated by the Board,
and that any agreement between the bank and the using educational agency shall
in no way affect the duty of the bank to pay upon demand;
6) That the bank, as trustee, shall invest in
securities of the type utilized to collateralize deposits by the Treasurer of
the State of Illinois; invest in time deposits, open accounts, certificates of
deposit, or savings accounts; or enter into a repurchase agreement.
A) However, all time deposits, open accounts,
certificates of deposit, or savings accounts shall be covered by a pledge of
securities of the type utilized to collateralize deposits by the Treasurer of
the State of Illinois (see subsection (e)) to cover the difference between the
Federal Deposit Insurance Corporation insurance and the total unsecured amount
on deposit with the depositor bank of the trustee bank.
B) A safekeeping receipt for those deposits
shall be submitted to the using educational agency covering the securities
pledged, and a certified statement to the effect that all monies invested have
been adequately protected, shall be submitted to the Board by the
bank.
C) Should the repurchase
agreement cover securities other than those described in subsection (e), those
agreements shall also be subject to the pledge of securities provision (see
subsection (c)(6)(A)).
d) The using educational agency shall be
responsible for obtaining the written consent of the bank trustee. Any costs or
service fees shall be borne by the using educational agency.
e) For the purpose of this Part, the term
"securities of the type utilized to collateralize deposits by the Treasurer of
the State of Illinois" means the classes of acceptable securities for public
funds to be used by the State Treasurer (see Section 11(a) of the Deposit of
State Moneys Act [ 15 ILCS 520 ]).
