2-32-550 Investments in tax warrants.

   In all cases where warrants in anticipation of taxes have been duly authorized and the comptroller shall find it necessary or expedient to sell them, or any portion thereof, the comptroller may turn such tax warrants over to the treasurer. Thereupon the treasurer shall purchase the same out of the aggregate of funds held in the city treasury to the extent that such may be invested without reducing the balance on hand below the amount immediately necessary to meet warrants drawn on the city treasury in the regular course of business.

(Prior code § 7-44)

2-32-570 Custody of securities.

   All securities purchased under the authority herein granted, unless resold or canceled and reissued for purposes of resale as herein provided for, shall be held in the custody of the treasurer until the principal and interest shall have been entirely paid and placed to the credit of the various funds or the particular fund from which the money has been withdrawn as authorized by this chapter.

(Prior code § 7-45)

2-32-575 Lending securities.

   (a)   The comptroller and city treasurer jointly may lend securities in the city treasury to a borrower upon such terms and conditions as may be mutually agreed in writing. Such agreement shall provide that during the period of the loan the city shall retain the right to receive, or collect from the borrower, all dividends, interest rights, or any distributions to which the city would have otherwise been entitled. The transfer of the securities shall be through a lending agent which is an approved municipal depository pursuant to Section 2-32-400.

   (b)   The borrower shall deposit with the city treasurer as collateral for such loan cash or United States government securities equal to 102 percent of the market value of the securities at the time the loan is made, and shall increase the amount of collateral when the comptroller and the city treasurer request an additional amount because of a subsequent increase in the market value of the securities.

   (c)   The period for which the securities may be lent shall not exceed one year, and the loan agreement may specify early termination by either party upon mutually agreed conditions.

   (d)   The lending agent shall have the authority to invest the collateral on behalf of the city. Investment by the lending agent of the collateral shall not be subject to the restrictions of Section 2-32-520; provided however, that investment of the collateral shall be limited to investments approved by the comptroller and city treasurer in accordance with sound and prudent investment policies.

(Added Coun. J. 11-5-03, p. 9539, § 1)

2-32-580 Sale of securities.

   The comptroller and city treasurer may sell a security prior to maturity at such price that the comptroller and city treasurer shall deem advisable including at, above or below the purchase price of the security when in the determination of the comptroller and city treasurer the sale of the security is necessary to: (1) ensure sufficient amount of money on hand when the balance of cash in the city treasury has for any reason become less than the amount necessary for immediate use; (2) enhance the overall portfolio yield; (3) minimize further erosion and loss of investment principal; or (4) minimize the city's exposure to market and credit risks.

   The city treasurer shall cooperate with the comptroller in the cancellation and reissue of tax warrants sold in such a way that no duplication thereof shall take place.

(Prior code § 7-46; Amend Coun. J. 11-7-07, p. 12472, § 1)

2-32-590 Municipal bonds – Comptroller's endorsements.

   By the endorsement of the comptroller upon any bonds of the city payable to bearer, when presented for that purpose by the owner, such bonds shall become payable only to the party named in such endorsement, his assignees or legal representatives, anything on the face of such bonds to the contrary notwithstanding. The affidavit of the party presenting any such bonds, or his authorized agent or attorney, to the effect that he is the owner thereof, shall be sufficient evidence to the comptroller of such ownership.

   The endorsement of the comptroller may be in the following form:

      By virtue of the act of the general assembly of Illinois, the ordinances of the City of Chicago, and the consent of (A. B.) the owner of this bond, this bond is made payable only to said (A. B.), his assignees or legal representatives, anything on the face hereof to the contrary notwithstanding. (C. D.) Comptroller.

(Prior code § 7-47)