Lottery Securities Purchases
Illinois Lottery annuitized prizes are funded through the purchase of U.S. government securities. Any brokerage firms interested in bidding on these transactions may contact the Lottery's Finance Manager at (217) 558-4817 for additional information.
Certain Lottery prizes awarded are payable to the winners in annual installments ranging from 19 years to life of the prize winners, with the first payment being made at the time of the drawing. Effective July 30, 1985, the law provides that the State Treasurer may, with consent of the Director; contract to invest in securities which provide payments corresponding to the Department's obligations to these winners.
Money may be invested only in bonds, notes, certificates of indebtedness, treasury bills, or other securities constituting direct obligations of the United States of America and all securities or obligations the prompt payment of principal and interest of which is guaranteed by a pledge of the full faith and credit of the United States of America.
|September 30, 2016
|Interest Rate Percentages:||Percent|
|Minimum interest rate||1.806%|
|Maximum interest rate||7.741%|
|Investment Income and Average Yield Rate:|
|Investment Income||$ 1,293,561
|Average Yield Rate||3.369%|
Monthly investment income and the average yield rate is an "effective" income amount and yield rate. There is no cash realization of interest income by the Lottery Department. The yield rate is computed by dividing the effective investment income for the month by the average present value of the investments for the month.
|UBS Financial Services|
|HSB Securities, Inc.|
|Bank of America|