Illinois Administrative Code › Title 71 - PUBLIC BUILDINGS, FACILITIES AND REAL PROPERTY › Part 30 - TRUST AGREEMENTS - USING EDUCATIONAL AGENCIES › Section 30.110 - Trust Agreements - Using Educational Agencies

Current through Register Vol. 48, No. 28, July 12, 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)).