(A) Investment types. The Board may invest the funds of the Board only in investments authorized by ILCS Ch. 30, Act 235, § 2, as it may be amended from time to time, and as authorized by other applicable law.
(B) As of the date of adoption of this Policy permitted investments are:
(1) In bonds, notes, certificates of indebtedness. Treasury bills or other securities now or hereinafter issued, which are guaranteed by the full faith and credit of the United States of America as to principal and interest.
(2) In bonds, notes, debentures, or other similar obligations of the United States of America or its agencies.
(3) In interest-bearing accounts, interest-bearing certificates of deposit, or interest-bearing time deposits, or any other investments constitution direct obligations of any bank as defined by the Illinois Banking Act.
(4) In obligations of corporations, organized in the United States, with assets exceeding $500,000,000 if such obligations are rated at the time of purchase at one of the three highest classifications established by at least two standard rating services, and which mature not later than three years from the date of purchase, such purchases do not exceed 10% of the corporation's outstanding obligations, and no more than one-third of the Board's fund may be invested in short-term obligations of corporations.
(5) Interest bearing bonds of any county, township, city, village, incorporated town, municipal corporation or school district, of the State of Illinois, or of any other state or of any political subdivision or agency of the State of Illinois or of any other state. The bonds must be rated "A" (or the equivalent) or higher by a rating service of nationally recognized expertise at the time of purchase.
(6) In money market mutual funds registered under the Investment Company Act of 1940, provided that the portfolio of any such money market mutual fund is limited to obligations described in divisions (B)(1) and (B)(2) of this section, and to agreements to repurchase such obligations.
(7) Investments may be made only in banks that are insured by the Federal Deposit Insurance Corporation. The Board may invest public funds in short-term discount obligations of the Federal National Mortgage Association or in shares or other forms of securities legally issuable by savings banks or saving and loan associations incorporated under the laws of Illinois or any other state or under the laws of the United States. Investments may be made only in those savings banks or savings and loan associations, the shares, or investment certificates of which are insured by the Federal Deposit Insurance Corporation.
(8) The Board may invest public funds in dividend-bearing share accounts, share certificate accounts, or class of share accounts of a credit union chartered under the laws of Illinois or the laws of the United States: provided, however, the principal office of such credit union must be located within the State of Illinois. Investments may be made only in those credit unions the accounts of which are insured by applicable law.
(9) The Board may invest public funds in the Public Treasurer's Investment Pool created under Section 17 of the State Treasurer's Act.
(10) Any monies invested in interest bearing cash accounts and/or a savings and loan association, banks, or credit unions must be insured by federal law or collateralized with the securities listed below in an amount equal to 102% of the amount in any cash account that exceeds current FDIC limits. The Board will accept any of the following assets as collateral:
(a) U.S. Government Securities.
(b) Obligations of Federal Agencies.
(c) Obligations of the State of Illinois.
(d) General Obligation municipal bonds rated "A" or better issued by a governing body in the State of Illinois.
(11) Any other security authorized by law and pre-approved by the Board of Trustees.
(C) Prohibited transactions and investments. Prohibited transactions and investments shall include, but are not limited to:
(1) Short selling;
(2) Margin transactions;
(3) Transactions involving futures or options contracts;
(4) Reverse repurchase agreements;
(5) CATS - Zero Coupon;
(6) TIGERRS - Zero Coupon;
(7) TR - Treasury Receipt Zero Obligation;
(8) CMO - Collateralized Mortgage Obligation;
(9) Sallie-Mae - Student Loan Marketing Association.
(Ord. 2710-99, passed 10-20-99; Am. Ord. 21-1696, passed 4-7-21)