OFFICE OF THE MAYOR
CITY OF CHICAGO
RAHM EMANUEL
MAYOR
December 11, 2013
TO THE HONORABLE, THE CITY COUNCIL OF THE CITY OF CHICAGO
Ladies and Gentlemen:
At the request of the City Treasurer, I transmit herewith an ordinance amending Chapter 2-32 of the Municipal Code regarding investment policy.
Your favorable consideration of this ordinance will be appreciated.
Very truly yours,
Mayor
ORDINANCE
BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF CHICAGO:
SECTION 1. Section 2-32-520 of the Municipal Code of Chicago is hereby amended by deleting the language struck through and by adding the language underscored, as follows:
2-32-520 Authorized classes of securities.
The comptroller and treasurer jointly shall have authority to use any and all funds in the city treasury which are set aside for use for particular purposes and not immediately necessary for.such purposes, for the purchase of the following classes of securities:
(Omitted text is unaffected by this ordinance)
(b) United States treasury bills and other non-interest bearing general obligations of the United States or United States government agencies when offered for sale in the open market at a price below the face value of same, so as to afford the city a return on such investment in lieu of interest;
(Omitted text is unaffected by this ordinance)
(d) Short-term discount obligations of the United States government or United States government agencies; Commercial paper which: (1) at the time of purchase, is rated in the highest classification by at least two accredited ratings agencies; and (2) matures not more than 270 days after the date of purchase;
(Omitted text is unaffected by this ordinance)
(f) Certificates of deposit of banks or savings and loan associations designated as municipal depositories which are insured by federal deposit insurance; provided that any amount of the deposit in excess of the federal deposit insurance shall be either: (1) fully collateralized at least 102 percent by: (i) marketable United States government securities marked to market at least monthly; (ii) bonds, notes, or other securities constituting the direct and general obligation of any agency or instrumentality of the United States; or (iii) bonds, notes or other securities constituting a direct and general obligation of any county, township, city, village, incorporated town, municipal corporation, or school district, ofthe State of Illinois, of any other state, or of any political subdivision or agency of the State of Illinois or of any other state which are rated in either the AAA or AA rating categories by at least two accredited ratings agencies and maintaining such rating during the term of such investment; er (2) secured by a corporate surety bond issued by an insurance company licensed to do business in Illinois and having a claims-paying rating in the top rating category as rated by a nationally recognized statistical rating organization and maintaining such rating during the term of such investment; or (3) fully collateralized at least 102 percent by an irrevocable letter of credit issued in favor of the City of Chicago by the Federal Home Loan Bank, provided that the Federal Home Loan Bank's short-term debt obligations are rated in the highest rating category by at least one accredited ratings agency throughout the term of the certificate of deposit;
(Omitted text is unaffected by this ordinance) l
SECTION 2. This ordinance shall be in full force and effect after its passage and publication.
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