Illinois Compiled Statutes
755 ILCS 5/ - Probate Act of 1975.
Article XXI - Investments by Representative

(755 ILCS 5/Art. XXI heading)

(755 ILCS 5/21-1) (from Ch. 110 1/2, par. 21-1)
Sec. 21-1.

Investments - decedent's estate.) In addition to any investments
which a decedent may authorize his executor to make by the terms of his will, the
representative of his estate, in his discretion, may invest money of the estate of a
decedent in any one or more of the investments specified in Sections 21-1.01
through 21-1.07.

(Source: P.A. 84-494.)

(755 ILCS 5/21-1.01) (from Ch. 110 1/2, par. 21-1.01)
Sec. 21-1.01.

Direct obligations of the United States or any instrumentality or agency
thereof or obligations fully guaranteed by the United States, or any instrumentality
or agency thereof, if the maturity date of the obligations is no longer than 5 years
from the date of purchase.

(Source: P.A. 79-328.)

(755 ILCS 5/21-1.02) (from Ch. 110 1/2, par. 21-1.02)
Sec. 21-1.02.

Obligations of a local public agency (as defined in Section
110(h) of the
federal Housing Act of 1949) or of a public housing agency (as defined in the federal
Housing Act of 1937, as amended) which have a maturity of not more than
18 months if such
obligations are secured by an agreement between the obligor agency and the Secretary of
Housing and Urban Development in which the agency agrees to borrow from the Secretary,
and the Secretary agrees to lend to the agency, prior to the maturity of
such obligations,
money in an amount which (together with any other money irrevocably committed to the
payment of interest on such obligations) will suffice to pay the principal of such
obligations with interest to maturity, which money under the terms of the agreement is
required to be used for that purpose.

(Source: P.A. 79-328.)

(755 ILCS 5/21-1.03) (from Ch. 110 1/2, par. 21-1.03)
Sec. 21-1.03.

Savings accounts or certificates of deposit of a state bank
or a national
bank doing business in Illinois to the extent that the deposits are insured by the
United States or any agency thereof, even though the bank of deposit is
the representative
of the estate, but this authority does not affect the power of a representative
to establish a checking account or continue in his or the decedent's
name a decedent's savings deposit, time certificate of deposit or
checking account in any amount.

(Source: P.A. 79-328.)

(755 ILCS 5/21-1.04) (from Ch. 110 1/2, par. 21-1.04)
Sec. 21-1.04.

Withdrawable capital accounts, deposits, investment certificates
or certificates of deposit of a state savings and loan association or a
federal savings and loan association doing business in this State to the
extent that such accounts, deposits or certificates are insured by the United
States or any agency thereof.

(Source: P.A. 81-403.)

(755 ILCS 5/21-1.05) (from Ch. 110 1/2, par. 21-1.05)
Sec. 21-1.05.

Interests in one or more common trust funds, as
defined in and from time to time established, maintained and
administered pursuant to the Common Trust Fund Act, the investments of
which are not restricted to the investments otherwise
authorized for representatives by Sections 21-1.01 through 21-1.04 and 21-1.06
of this Act, provided that the investment in such common trust fund
meets the standard of the prudent person rule for the investment
of trust funds; and provided further that in the case of an administrator,
the approval of the court, by written order, be first obtained.

(Source: P.A. 84-494.)

(755 ILCS 5/21-1.05a) (from Ch. 110 1/2, par. 21-1.05a)
Sec. 21-1.05a.

Interests in any open-end registered investment company
registered under the federal Investment Company Act of 1940, provided that
the portfolio of any such company is limited to securities and investments
authorized for investment by representatives in Sections 21-1.01 through
21-1.06 of this Act and to agreements to repurchase such obligations, which
agreements, with respect to principal and interest are (1) at least 100%
collateralized by such obligations marked to market on a daily basis, and
(2) the investment company takes delivery of such obligations either
directly or through an independent custodian. To the extent that such
investment company engages in when issued or delayed
delivery transactions, it may do so only as a part of its normal security
acquisition practices and not as a means of speculating on interest rates.

(Source: P.A. 85-639.)

(755 ILCS 5/21-1.06) (from Ch. 110 1/2, par. 21-1.06)
Sec. 21-1.06.

Any other investments authorized by a court
of competent jurisdiction or which from time to time have been or may
be expressly declared by the General Assembly to be legal investments by representatives
of decedents' estates.

(Source: P.A. 79-328.)

(755 ILCS 5/21-1.07) (from Ch. 110 1/2, par. 21-1.07)
Sec. 21-1.07.

Interests in any open-end or closed-end management type
investment company or investment trust (hereafter referred to as a "mutual
fund") registered under the
Investment Company Act of 1940, the investments of which are not restricted to
the investments otherwise authorized for representatives in
Sections
21-1.01 through 21-1.06 of this Act, including without limitation a mutual
fund that receives services from or pays fees to the representative or its
affiliate, provided that the investment in the mutual fund or funds meets the
standard of the prudent investor rule for the investment of trust funds.
A representative or its affiliate is not required to reduce or waive
its compensation for services provided in connection with the investment and
administration of the estate because the representative invests, reinvests, or
retains estate assets in a mutual fund for which it or its affiliate
provides services and receives compensation, if the total compensation
paid by the estate as fees of the representative and mutual fund fees,
including
any advisory or management fees, is reasonable. However, a
representative may receive fees equal to the amount of those fees
that would be paid to any other party under Securities and Exchange Commission
Rule 12b-1.

(Source: P.A. 89-344, eff. 8-17-95.)

(755 ILCS 5/21-2) (from Ch. 110 1/2, par. 21-2)
Sec. 21-2.
Investments; ward's estate.
(a) It is the duty of the
representative to invest the ward's money. A representative is chargeable
with interest at a rate equal to the rate on 90-day United
States Treasury Bills upon any money that the representative
wrongfully or negligently allows to remain uninvested after it
might have been invested. Reasonable sums of money retained uninvested
by the representative in order to pay for the current or imminent expenses
of the ward shall not be considered wrongfully or negligently uninvested.
(b) Upon receiving the approval of the court, a representative may hold
any investments,
or any increase thereof, received by the representative at the time
of the representative's appointment
or acquired by the ward,
although the investment is not otherwise authorized under this Act, and
the court has power
to direct the representative in connection therewith.
(c) A representative may invest only in the types of
property specified in Sections 21-2.01 through 21-2.15.

(Source: P.A. 90-796, eff. 12-15-98.)

(755 ILCS 5/21-2.01) (from Ch. 110 1/2, par. 21-2.01)
Sec. 21-2.01.
Obligations of the United States.

(Source: P.A. 84-494.)

(755 ILCS 5/21-2.02) (from Ch. 110 1/2, par. 21-2.02)
Sec. 21-2.02.

Obligations of which both the principal and interest are
guaranteed unconditionally by the United States.

(Source: P.A. 84-494.)

(755 ILCS 5/21-2.03) (from Ch. 110 1/2, par. 21-2.03)
Sec. 21-2.03.

Obligations of any corporation wholly owned, directly or
indirectly, by the United States or any agency or instrumentality of the
United States.

(Source: P.A. 84-494.)

(755 ILCS 5/21-2.04) (from Ch. 110 1/2, par. 21-2.04)
Sec. 21-2.04.
Insured accounts, deposits, and certificates.

Withdrawable capital accounts, deposits,
investment certificates or certificates of deposit of state and federal
savings and loan associations but, unless otherwise authorized by a court
of competent jurisdiction, only to the extent that the accounts, deposits
or certificates are insured by the United States or any of its agencies, and
share accounts in federal and state credit unions if the
credit unions are insured by the National Credit Union Administration.
Amounts invested in a savings and loan association in excess of the amount
insured by the United States or any of its agencies shall be
secured by a surety bond taken from a surety authorized to transact
business in this State in such sum, under such conditions, and with such
security sufficient to save the estate from loss.

(Source: P.A. 90-796, eff. 12-15-98.)

(755 ILCS 5/21-2.05) (from Ch. 110 1/2, par. 21-2.05)
Sec. 21-2.05.
Municipal bonds.
Instruments providing for the payment of money executed by or on behalf of any
state of the United States or the District of Columbia or any governmental
entity organized by or under the laws of any state of the United States or the
District of Columbia, to carry out a public governmental or proprietary
function, acting through its corporate authorities, or that any governmental
entity has assumed or agreed to pay and that, at the time of investment, have
been given one of the top 4 rating grades by a nationally recognized rating
service.

(Source: P.A. 90-796, eff. 12-15-98.)

(755 ILCS 5/21-2.06) (from Ch. 110 1/2, par. 21-2.06)
Sec. 21-2.06.

Savings and time deposit certificates of a state bank
or a national bank doing business in this State but, unless otherwise
authorized by a court of competent jurisdiction, only to the extent that such
deposits are insured by the United States or any agency thereof, even
though the bank of deposit is the representative of the ward's estate. Amounts
deposited in savings and time deposit certificates of such bank in excess
of the amount insured by the United States or any agency thereof shall be
secured by a surety bond taken from a surety authorized to transact business
in this State in such sum, under such conditions and with such security
sufficient to save the estate from loss.

(Source: P.A. 83-1445.)

(755 ILCS 5/21-2.07) (from Ch. 110 1/2, par. 21-2.07)
Sec. 21-2.07.
Notes secured by real estate.
All of the notes secured by
a first mortgage or trust deed upon improved or income producing real
estate situated in this State and not exceeding two-thirds of the
value thereof at the time of the investment.

(Source: P.A. 90-796, eff. 12-15-98.)

(755 ILCS 5/21-2.08) (from Ch. 110 1/2, par. 21-2.08)
Sec. 21-2.08.
Corporate obligations.
Obligations of any company
incorporated under the
laws of the United States or of any state of the United States or the
District of Columbia that, at the time of investment, have been given one
of the top 4 rating grades by a nationally recognized rating service.

(Source: P.A. 90-796, eff. 12-15-98.)

(755 ILCS 5/21-2.09) (from Ch. 110 1/2, par. 21-2.09)
Sec. 21-2.09.
(Repealed).

(Source: P.A. 79-328. Repealed by P.A. 90-796, eff. 12-15-98.)

(755 ILCS 5/21-2.10) (from Ch. 110 1/2, par. 21-2.10)
Sec. 21-2.10.

Real estate located in any state of the United
States or the District of Columbia.

(Source: P.A. 79-328.)

(755 ILCS 5/21-2.11) (from Ch. 110 1/2, par. 21-2.11)
Sec. 21-2.11.
Life, endowment, or annuity policies.
Life, endowment, or
annuity policies on the life of the ward, or on the life of any person in whose
life the ward has an insurable interest, if the ward is the beneficiary, when
the policies are issued by companies, associations or fraternal organizations
that, at the time of investment, have been given one of the top 4 rating grades
by a nationally recognized rating service. The order may authorize the
payment of annual premiums without further application to the court.

(Source: P.A. 90-796, eff. 12-15-98; 91-357, eff. 7-29-99.)

(755 ILCS 5/21-2.12) (from Ch. 110 1/2, par. 21-2.12)
Sec. 21-2.12.
Stock.
Shares of any corporation
with a market capitalization of over $200,000,000 if the shares are listed and
registered on an exchange registered with the Securities and Exchange
Commission as a national securities exchange or an electronic securities
quotation system regulated by the Securities and Exchange Commission.
No investment in shares of a corporation may be made under this Section
that, at the time such investment is made, would cause the market
value of all stock held in the ward's estate to exceed two-thirds of the
market value of the estate then held by the representative.

(Source: P.A. 90-796, eff. 12-15-98.)

(755 ILCS 5/21-2.13) (from Ch. 110 1/2, par. 21-2.13)
Sec. 21-2.13.
Common trust funds.
Interests in one or more common trust
funds, as defined in and from time to time established, maintained and
administered pursuant to the Common Trust Fund Act, the investments of which
are not restricted to the investments otherwise authorized for representatives
by Sections 21-2.01 through 21-2.12 and 21-2.14 of this Act, provided that the
investment in such common trust fund meets the standard of the prudent investor
rule for the investment of trust funds.

(Source: P.A. 90-796, eff. 12-15-98.)

(755 ILCS 5/21-2.13a) (from Ch. 110 1/2, par. 21-2.13a)
Sec. 21-2.13a.
(Repealed).

(Source: P.A. 85-639. Repealed by P.A. 90-796, eff. 12-15-98.)

(755 ILCS 5/21-2.14) (from Ch. 110 1/2, par. 21-2.14)
Sec. 21-2.14.
Mutual funds.
Interests in any open-end management type
investment company or investment trust (hereafter referred to as a "mutual
fund") registered under the
Investment Company Act of 1940, the investments of which are not restricted to
the investments otherwise authorized for
representatives in Sections 21-2.01 through 21-2.13 and 21-2.15, including
without limitation a mutual fund that receives services from or pays fees
to the representative or its affiliate, provided that the investment in
the mutual fund or funds meets the standard of the prudent investor rule for
the investment of trust funds. A representative or its affiliate is
not required to reduce or waive its compensation for services provided in
connection with the investment and administration of the estate because the
representative invests, reinvests, or retains estate assets in a mutual fund
for
which it or its affiliate provides services and receives compensation
if the total compensation paid by the estate as fees of the representative
and mutual fund fees, including any advisory or management fees, is reasonable.
However, a representative may receive fees equal to
the amount of those fees that would be paid to any other party under Securities
and Exchange Commission Rule 12b-1.

(Source: P.A. 89-344, eff. 8-17-95.)

(755 ILCS 5/21-2.14a)
Sec. 21-2.14a.
Illinois prepaid tuition contract.
An Illinois prepaid
tuition contract, as defined under the Illinois Prepaid Tuition Act.

(Source: P.A. 91-867, eff. 6-22-00.)

(755 ILCS 5/21-2.15) (from Ch. 110 1/2, par. 21-2.15)
Sec. 21-2.15.

Any other investments which from time to time
have been or may be expressly declared by the General Assembly to be
legal investments for representatives of wards' estates.

(Source: P.A. 84-494.)