Sen. Christine Radogno
Filed: 5/28/2004
|
|||||||
| |||||||
| |||||||
1 | AMENDMENT TO HOUSE BILL 7173
| ||||||
2 | AMENDMENT NO. ______. Amend House Bill 7173 by replacing | ||||||
3 | everything after the enacting clause with the following:
| ||||||
4 | "Section 5. The Fiscal Note Act is amended by changing | ||||||
5 | Section 1 as follows:
| ||||||
6 | (25 ILCS 50/1) (from Ch. 63, par. 42.31)
| ||||||
7 | Sec. 1. Every bill, except those bills making a direct | ||||||
8 | appropriation,
(1) the purpose or effect of which is (i) to | ||||||
9 | expend any State funds or
to
increase or decrease the revenues | ||||||
10 | of the
State, either directly or indirectly, or (ii) to require | ||||||
11 | the expenditure
of their own funds by, or to increase or
| ||||||
12 | decrease the revenues of, units
of local government, school | ||||||
13 | districts or community college districts, or
to revise the | ||||||
14 | distribution of State funds among units of local government,
| ||||||
15 | school districts, or community college districts, either | ||||||
16 | directly or
indirectly, or (2) that amends the Mental Health | ||||||
17 | and Developmental
Disabilities Code or the Developmental | ||||||
18 | Disability and Mental Disability
Services Act shall have | ||||||
19 | prepared for it prior to second reading in the
house of | ||||||
20 | introduction a brief explanatory statement or note which, for a | ||||||
21 | bill
under item (1), shall
include a reliable estimate of the | ||||||
22 | anticipated change in State, local
governmental, school | ||||||
23 | district, or community college district
expenditures or | ||||||
24 | revenues under its provisions and, for a bill under item (2),
|
| |||||||
| |||||||
1 | shall include a reliable estimate of the fiscal impact of its | ||||||
2 | provisions upon
community agencies.
For purposes of this Act,
| ||||||
3 | indirect revenues
include, but are not limited to, increased | ||||||
4 | tax revenues or other increased
revenues resulting from | ||||||
5 | economic development, job creation, or cost
reduction. The | ||||||
6 | statement or note shall also include an explanation of the
| ||||||
7 | methodology used to determine the estimated direct and indirect | ||||||
8 | costs or
estimated impact on community agencies. Any
notes for | ||||||
9 | bills having
a fiscal impact on units of local government, | ||||||
10 | school districts or community
college districts shall include | ||||||
11 | such cost estimates as may be required under
the State Mandates | ||||||
12 | Act.
| ||||||
13 | If a bill authorizes capital expenditures or appropriates | ||||||
14 | funds for
capital expenditures, a statement shall be prepared | ||||||
15 | by the
Governor's Office of Management and Budget
Bureau of the
| ||||||
16 | Budget specifying by year any principal and interest payments | ||||||
17 | required
to finance such capital expenditures.
| ||||||
18 | If a bill authorizes the issuance of Bonds, a statement or | ||||||
19 | note shall be prepared by the Governor's Office of Management | ||||||
20 | and Budget specifying the estimated total principal and | ||||||
21 | interest payments (assuming interest is paid at a fixed rate) | ||||||
22 | if all of the Bonds authorized were issued. The statement or | ||||||
23 | note shall include the total principal on all other | ||||||
24 | then-outstanding Bonds of the State.
| ||||||
25 | These statements or notes shall be known as "fiscal notes".
| ||||||
26 | (Source: P.A. 92-567, eff. 1-1-03; revised 8-23-03.)
| ||||||
27 | Section 10. The State Debt Impact Note Act is amended by | ||||||
28 | changing Section 4 as follows:
| ||||||
29 | (25 ILCS 65/4) (from Ch. 63, par. 42.74)
| ||||||
30 | Sec. 4. The State Debt Impact Note shall be factual in | ||||||
31 | nature and as
brief and concise as possible. For bills which | ||||||
32 | would appropriate from bond
funds, the note shall provide a |
| |||||||
| |||||||
1 | reliable estimate of the impact of the bill
on the State's debt | ||||||
2 | service requirements; a description of the estimated
useful | ||||||
3 | life and intended use of the project; and maintenance and | ||||||
4 | operating
costs associated with the project. For bills which | ||||||
5 | would add new or increase
existing bond authorization levels | ||||||
6 | the note shall assess current outstanding,
unissued, and | ||||||
7 | retired bond authorization levels and make reasonable | ||||||
8 | projections
of the cost associated with the retirement of the | ||||||
9 | additional bonds. The estimated costs shall specify the | ||||||
10 | estimated total principal and interest payments (assuming | ||||||
11 | interest is paid at a fixed rate) if all of the Bonds | ||||||
12 | authorized were issued. The statement or note shall include the | ||||||
13 | total principal on all other then-outstanding Bonds of the | ||||||
14 | State. A brief
summary or work sheet of computations used in | ||||||
15 | arriving at State Debt Impact
Notes shall be attached.
| ||||||
16 | (Source: P.A. 81-615.)
| ||||||
17 | Section 15. The General Obligation Bond Act is amended by | ||||||
18 | changing Sections 2, 8, 9, 11, and 16 and by adding Sections | ||||||
19 | 2.5 and 21 as follows:
| ||||||
20 | (30 ILCS 330/2) (from Ch. 127, par. 652)
| ||||||
21 | Sec. 2. Authorization for Bonds. The State of Illinois is | ||||||
22 | authorized to
issue, sell and provide for the retirement of | ||||||
23 | General Obligation Bonds of
the State of Illinois for the | ||||||
24 | categories and specific purposes expressed in
Sections 2 | ||||||
25 | through 8 of this Act, in the total amount of $27,658,149,369.
| ||||||
26 | The bonds authorized in this Section 2 and in Section 16 of | ||||||
27 | this Act are
herein called "Bonds".
| ||||||
28 | Of the total amount of Bonds authorized in this Act, up to | ||||||
29 | $2,200,000,000
in aggregate original principal amount may be | ||||||
30 | issued and sold in accordance
with the Baccalaureate Savings | ||||||
31 | Act in the form of General Obligation
College Savings Bonds.
| ||||||
32 | Of the total amount of Bonds authorized in this Act, up to |
| |||||||
| |||||||
1 | $300,000,000 in
aggregate original principal amount may be | ||||||
2 | issued and sold in accordance
with the Retirement Savings Act | ||||||
3 | in the form of General Obligation
Retirement Savings Bonds.
| ||||||
4 | Of the total amount of Bonds authorized in this Act, the | ||||||
5 | additional
$10,000,000,000 authorized by this amendatory Act | ||||||
6 | of the 93rd General
Assembly shall be used solely as provided | ||||||
7 | in Section 7.2.
| ||||||
8 | The issuance and sale of Bonds pursuant to the General | ||||||
9 | Obligation Bond
Act is an economical and efficient method of | ||||||
10 | financing the long-term capital and
general operating needs of
| ||||||
11 | the State. This Act will permit the issuance of a multi-purpose | ||||||
12 | General
Obligation Bond with uniform terms and features. This | ||||||
13 | will not only lower
the cost of registration but also reduce | ||||||
14 | the overall cost of issuing debt
by improving the marketability | ||||||
15 | of Illinois General Obligation Bonds.
| ||||||
16 | (Source: P.A. 92-13, eff. 6-22-01; 92-596, eff. 6-28-02; | ||||||
17 | 92-598, eff.
6-28-02; 93-2, eff. 4-7-03.)
| ||||||
18 | (30 ILCS 330/2.5 new) | ||||||
19 | Sec. 2.5. Limitation on issuance of Bonds. | ||||||
20 | (a) Except as provided in subsection (b), no Bonds may be | ||||||
21 | issued under this Act if, after the issuance, in the next State | ||||||
22 | fiscal year after the issuance, the amount of debt service | ||||||
23 | (including principal and interest) on all then-outstanding | ||||||
24 | Bonds issued under this Act would exceed 7% of the aggregate | ||||||
25 | appropriations from the general funds (which consist of the | ||||||
26 | General Revenue Fund, the Common School Fund, the General | ||||||
27 | Revenue Common School Special Account Fund, and the Education | ||||||
28 | Assistance Fund) and the Road Fund for the fiscal year | ||||||
29 | immediately prior to the fiscal year of the issuance. | ||||||
30 | (b) If the Comptroller and Treasurer each consent in | ||||||
31 | writing, Bonds may be issued under this Act even if the | ||||||
32 | issuance does not comply with subsection (a).
|
| |||||||
| |||||||
1 | (30 ILCS 330/8) (from Ch. 127, par. 658)
| ||||||
2 | Sec. 8. Bond sale expenses ;
capitalized interest . | ||||||
3 | (a) All
An amount not to exceed
0.5 percent of the
| ||||||
4 | principal amount of the proceeds of sale of each bond sale is | ||||||
5 | authorized
to be used to pay the reasonable costs of issuance | ||||||
6 | and sale , including without limitation underwriter's discounts | ||||||
7 | and fees, of State of
Illinois general obligation bonds | ||||||
8 | authorized and sold pursuant to this Act shall be paid from | ||||||
9 | funds appropriated for that purpose . | ||||||
10 | (b) The Director of the Governor's Office of Management and | ||||||
11 | Budget shall not contract with any underwriter, bond counsel, | ||||||
12 | or financial advisor unless that underwriter, bond counsel, or | ||||||
13 | financial advisor certifies that the underwriter, bond | ||||||
14 | counsel, or financial advisor has not and will not pay a | ||||||
15 | contingent fee to any party for having promoted the selection | ||||||
16 | of the underwriter, bond counsel, or financial advisor for that | ||||||
17 | contract.
The Bond Sale Order may provide for a portion of the | ||||||
18 | proceeds of
the bond sale, representing up to 12 months' | ||||||
19 | interest on the bonds, to be
deposited directly into the | ||||||
20 | capitalized interest account of the General
Obligation Bond | ||||||
21 | Retirement and Interest Fund.
| ||||||
22 | (Source: P.A. 93-2, eff. 4-7-03.)
| ||||||
23 | (30 ILCS 330/9) (from Ch. 127, par. 659)
| ||||||
24 | Sec. 9. Conditions for Issuance and Sale of Bonds - | ||||||
25 | Requirements for
Bonds.
| ||||||
26 | (a) Except as otherwise provided in this subsection, bonds
| ||||||
27 | Bonds shall be issued and sold from time to time, in one or
| ||||||
28 | more series, in such amounts and at such prices as may be | ||||||
29 | directed by the
Governor, upon recommendation by the Director | ||||||
30 | of the
Governor's Office of Management and Budget.
Bonds shall | ||||||
31 | be in such form (either coupon, registered or book entry), in
| ||||||
32 | such denominations, payable within 25
30 years from their date, | ||||||
33 | subject to such
terms of redemption with or without premium, |
| |||||||
| |||||||
1 | bear interest payable at
such times and at such fixed or | ||||||
2 | variable rate or rates, and be dated
as shall be fixed and | ||||||
3 | determined by the Director of
the
Governor's Office of | ||||||
4 | Management and Budget
in the order authorizing the issuance and | ||||||
5 | sale
of any series of Bonds, which order shall be approved by | ||||||
6 | the Governor
and is herein called a "Bond Sale Order"; provided | ||||||
7 | however, that interest
payable at fixed or variable rates shall | ||||||
8 | not exceed that permitted in the
Bond Authorization Act, as now | ||||||
9 | or hereafter amended. Bonds shall be
payable at such place or | ||||||
10 | places, within or without the State of Illinois, and
may be | ||||||
11 | made registrable as to either principal or as to both principal | ||||||
12 | and
interest, as shall be specified in the Bond Sale Order. | ||||||
13 | Bonds may be callable
or subject to purchase and retirement or | ||||||
14 | tender and remarketing as fixed
and determined in the Bond Sale | ||||||
15 | Order. Bonds must be offered for sale with principal or | ||||||
16 | mandatory redemption amounts in substantially equal amounts, | ||||||
17 | with the first maturity offered for sale occurring within the | ||||||
18 | fiscal year in which the Bonds are offered or within the next | ||||||
19 | succeeding fiscal year, with Bonds offered for sale maturing or | ||||||
20 | subject to mandatory redemption each fiscal year thereafter up | ||||||
21 | to 25 years.
| ||||||
22 | In the case of any series of Bonds bearing interest at a | ||||||
23 | variable interest
rate ("Variable Rate Bonds"), in lieu of | ||||||
24 | determining the rate or rates at which
such series of Variable | ||||||
25 | Rate Bonds shall bear interest and the price or prices
at which | ||||||
26 | such Variable Rate Bonds shall be initially sold or remarketed | ||||||
27 | (in the
event of purchase and subsequent resale), the Bond Sale | ||||||
28 | Order may provide that
such interest rates and prices may vary | ||||||
29 | from time to time depending on criteria
established in such | ||||||
30 | Bond Sale Order, which criteria may include, without
| ||||||
31 | limitation, references to indices or variations in interest | ||||||
32 | rates as may, in
the judgment of a remarketing agent, be | ||||||
33 | necessary to cause Variable Rate Bonds
of such series to be | ||||||
34 | remarketable from time to time at a price equal to their
|
| |||||||
| |||||||
1 | principal amount, and may provide for appointment of a bank, | ||||||
2 | trust company,
investment bank, or other financial institution | ||||||
3 | to serve as remarketing agent
in that connection.
The Bond Sale | ||||||
4 | Order may provide that alternative interest rates or provisions
| ||||||
5 | for establishing alternative interest rates, different | ||||||
6 | security or claim
priorities, or different call or amortization | ||||||
7 | provisions will apply during
such times as Variable Rate Bonds | ||||||
8 | of any series are held by a person providing
credit or | ||||||
9 | liquidity enhancement arrangements for such Bonds as | ||||||
10 | authorized in
subsection (b) of this Section.
The Bond Sale | ||||||
11 | Order may also provide for such variable interest rates to be
| ||||||
12 | established pursuant to a process generally known as an auction | ||||||
13 | rate process
and may provide for appointment of one or more | ||||||
14 | financial institutions to serve
as auction agents and | ||||||
15 | broker-dealers in connection with the establishment of
such | ||||||
16 | interest rates and the sale and remarketing of such Bonds.
| ||||||
17 | (b) In connection with the issuance of any series of Bonds, | ||||||
18 | the State may
enter into arrangements to provide additional | ||||||
19 | security and liquidity for such
Bonds, including, without | ||||||
20 | limitation, bond or interest rate insurance or
letters of | ||||||
21 | credit, lines of credit, bond purchase contracts, or other
| ||||||
22 | arrangements whereby funds are made available to retire or | ||||||
23 | purchase Bonds,
thereby assuring the ability of owners of the | ||||||
24 | Bonds to sell or redeem their
Bonds. The State may enter into | ||||||
25 | contracts and may agree to pay fees to persons
providing such | ||||||
26 | arrangements, but only under circumstances where the Director | ||||||
27 | of
the
Governor's Office of Management and Budget certifies | ||||||
28 | that he or she reasonably expects the total
interest paid or to | ||||||
29 | be paid on the Bonds, together with the fees for the
| ||||||
30 | arrangements (being treated as if interest), would not, taken | ||||||
31 | together, cause
the Bonds to bear interest, calculated to their | ||||||
32 | stated maturity, at a rate in
excess of the rate that the Bonds | ||||||
33 | would bear in the absence of such
arrangements.
| ||||||
34 | The State may, with respect to Bonds issued or anticipated |
| |||||||
| |||||||
1 | to be issued,
participate in and enter into arrangements with | ||||||
2 | respect to interest rate
protection or exchange agreements, | ||||||
3 | guarantees, or financial futures contracts
for the purpose of | ||||||
4 | limiting, reducing, or managing interest rate exposure.
The | ||||||
5 | authority granted under this paragraph, however, shall not | ||||||
6 | increase the principal amount of Bonds authorized to be issued | ||||||
7 | by law. The arrangements may be executed and delivered by the | ||||||
8 | Director
of the
Governor's Office of Management and Budget on | ||||||
9 | behalf of the State. Net payments for such
arrangements shall | ||||||
10 | constitute interest on the Bonds and shall be paid from the
| ||||||
11 | General Obligation Bond Retirement and Interest Fund. The | ||||||
12 | Director of the
Governor's Office of Management and Budget | ||||||
13 | shall at least annually certify to the Governor and
the
State | ||||||
14 | Comptroller his or her estimate of the amounts of such net | ||||||
15 | payments to
be included in the calculation of interest required | ||||||
16 | to be paid by the State.
| ||||||
17 | (c) Prior to the issuance of any Variable Rate Bonds | ||||||
18 | pursuant to
subsection (a), the Director of the
Governor's | ||||||
19 | Office of Management and Budget shall adopt an
interest rate | ||||||
20 | risk management policy providing that the amount of the State's
| ||||||
21 | variable rate exposure with respect to Bonds shall not exceed | ||||||
22 | 20%. This policy
shall remain in effect while any Bonds are | ||||||
23 | outstanding and the issuance of
Bonds
shall be subject to the | ||||||
24 | terms of such policy. The terms of this policy may be
amended | ||||||
25 | from time to time by the Director of the
Governor's Office of | ||||||
26 | Management and Budget but in no
event shall any amendment cause | ||||||
27 | the permitted level of the State's variable
rate exposure with | ||||||
28 | respect to Bonds to exceed 20%.
| ||||||
29 | (Source: P.A. 92-16, eff. 6-28-01; 93-9, eff. 6-3-03; 93-666, | ||||||
30 | eff. 3-5-04.)
| ||||||
31 | (30 ILCS 330/11) (from Ch. 127, par. 661)
| ||||||
32 | Sec. 11. Sale of Bonds. Bonds , except as otherwise provided | ||||||
33 | in this Section, shall be sold from time to time pursuant to
|
| |||||||
| |||||||
1 | notice of sale and public bid or by negotiated sale in such | ||||||
2 | amounts and at such
times as is directed by the Governor, upon | ||||||
3 | recommendation by the Director of
the
Governor's Office of | ||||||
4 | Management and Budget
Bureau of the Budget .
| ||||||
5 | If more than half of the proceeds of an issue of Bonds to | ||||||
6 | be offered for sale is expected to be used for refunding | ||||||
7 | purposes or if more than half of the principal amount of Bonds | ||||||
8 | is offered for sale with a variable rate, the entire issue of | ||||||
9 | the Bonds may be sold pursuant to notice of sale and public bid | ||||||
10 | or by negotiated sale. The
any Bonds, including refunding | ||||||
11 | Bonds, are to be sold by negotiated
sale, the Director of the
| ||||||
12 | Governor's Office of Management and Budget
Bureau of the Budget
| ||||||
13 | shall comply with the
competitive sealed bidding or competitive | ||||||
14 | request for proposal process , as applicable, set forth in the | ||||||
15 | Illinois
Procurement Code and all other applicable | ||||||
16 | requirements of that Code.
| ||||||
17 | If Bonds are to be sold pursuant to notice of sale and | ||||||
18 | public bid, in addition to the requirements of the Illinois | ||||||
19 | Procurement Code, the
Director of the
Governor's Office of | ||||||
20 | Management and Budget
Bureau
of the Budget shall, from time to | ||||||
21 | time, as Bonds are to be sold, advertise
the sale of the Bonds | ||||||
22 | in at least 2
two daily newspapers, one of which is
published | ||||||
23 | in the City of Springfield and one in the City of Chicago. The | ||||||
24 | sale
of the Bonds shall also be
advertised in the volume of the | ||||||
25 | Illinois Procurement Bulletin that is
published by the | ||||||
26 | Department of Central Management Services. Each of
the | ||||||
27 | advertisements for
proposals shall be published once at least | ||||||
28 | 14
10 days prior to the date fixed
for the opening of the bids. | ||||||
29 | The Director of the
Governor's Office of Management and Budget
| ||||||
30 | Bureau of the Budget may
reschedule the date of sale upon the | ||||||
31 | giving of such additional notice as the
Director deems adequate | ||||||
32 | to inform prospective bidders of
such change; provided, | ||||||
33 | however, that all other conditions of the sale shall
continue | ||||||
34 | as originally advertised.
|
| |||||||
| |||||||
1 | Executed Bonds shall, upon payment therefor, be delivered | ||||||
2 | to the purchaser,
and the proceeds of Bonds shall be paid into | ||||||
3 | the State Treasury as directed by
Section 12 of this Act.
| ||||||
4 | (Source: P.A. 91-39, eff. 6-15-99; revised 8-23-03.)
| ||||||
5 | (30 ILCS 330/16) (from Ch. 127, par. 666)
| ||||||
6 | Sec. 16. Refunding Bonds. The State of Illinois is | ||||||
7 | authorized to issue,
sell, and provide for the retirement of | ||||||
8 | General Obligation Bonds of the State
of Illinois in the amount | ||||||
9 | of $2,839,025,000, at any time and
from time to time | ||||||
10 | outstanding, for the purpose of refunding
any State of Illinois | ||||||
11 | general obligation Bonds then outstanding, including
the | ||||||
12 | payment of any redemption premium thereon, any reasonable | ||||||
13 | expenses of
such refunding, any interest accrued or to accrue | ||||||
14 | to the earliest
or any subsequent date of redemption or | ||||||
15 | maturity of such outstanding
Bonds and any interest to accrue | ||||||
16 | to the first interest payment on the
refunding Bonds; provided | ||||||
17 | that all Bonds in an issue that includes
such refunding Bonds | ||||||
18 | shall mature no later
than the final maturity date of Bonds | ||||||
19 | being refunded ; provided that no refunding Bonds shall be | ||||||
20 | offered for sale unless the net present value of savings to be | ||||||
21 | achieved by the issuance of the refunding Bonds is 3% or more | ||||||
22 | of the amount of the refunding Bonds to be issued; and further | ||||||
23 | provided that no refunding Bonds shall be offered for sale that | ||||||
24 | are expected to refund Bonds under a refunding plan that would | ||||||
25 | have the effect of decreasing the State's principal payments on | ||||||
26 | all Bonds in the fiscal year in which the refunding Bonds are | ||||||
27 | offered or in the next succeeding fiscal year by a total of | ||||||
28 | more than 5% of the principal or redemption amounts due on all | ||||||
29 | then-outstanding Bonds in the fiscal year next succeeding the | ||||||
30 | fiscal year in which the refunding Bonds are offered .
| ||||||
31 | If more than half of the proceeds of an issue of Bonds to | ||||||
32 | be offered for sale are expected to be used for refunding | ||||||
33 | purposes, those
Refunding Bonds may be sold from time to time |
| |||||||
| |||||||
1 | pursuant to notice of sale
and public bid or by negotiated sale
| ||||||
2 | in such amounts and at such times, as
directed by the Governor, | ||||||
3 | upon recommendation by the Director of the
Governor's Office of | ||||||
4 | Management and Budget
Bureau
of the Budget . The Governor shall | ||||||
5 | notify the State Treasurer and
Comptroller of such refunding. | ||||||
6 | The proceeds received from the sale
of refunding Bonds shall be | ||||||
7 | used for the retirement at maturity or
redemption of such | ||||||
8 | outstanding Bonds on any maturity or redemption date
and, | ||||||
9 | pending such use, shall be placed in escrow, subject to such | ||||||
10 | terms and
conditions as shall be provided for in the Bond Sale | ||||||
11 | Order relating to the
Refunding Bonds. Proceeds not needed for | ||||||
12 | deposit in an escrow account shall
be deposited in the General | ||||||
13 | Obligation Bond Retirement and Interest Fund.
This Act shall | ||||||
14 | constitute an irrevocable and continuing appropriation of all
| ||||||
15 | amounts necessary to establish an escrow account for the | ||||||
16 | purpose of refunding
outstanding general obligation Bonds and | ||||||
17 | to pay the reasonable expenses of such
refunding and of the | ||||||
18 | issuance and sale of the refunding Bonds. Any such
escrowed | ||||||
19 | proceeds may be invested and reinvested
in direct obligations | ||||||
20 | of the United States of America, maturing at such
time or times | ||||||
21 | as shall be appropriate to assure the
prompt payment, when due, | ||||||
22 | of the principal of and interest and redemption
premium, if | ||||||
23 | any,
on the refunded Bonds. After the terms of the escrow have | ||||||
24 | been fully
satisfied, any remaining balance of such proceeds | ||||||
25 | and interest, income and
profits earned or realized on the | ||||||
26 | investments thereof shall be paid into
the General Revenue | ||||||
27 | Fund. The liability of the State upon the Bonds shall
continue, | ||||||
28 | provided that the holders thereof shall thereafter be entitled | ||||||
29 | to
payment only out of the moneys deposited in the escrow | ||||||
30 | account.
| ||||||
31 | Except as otherwise herein provided in this Section, such | ||||||
32 | refunding Bonds
shall in all other respects be subject to the | ||||||
33 | terms and conditions of this Act.
| ||||||
34 | (Source: P.A. 91-39, eff. 6-15-99; 91-53, eff. 6-30-99; 91-710, |
| |||||||
| |||||||
1 | eff.
5-17-00; revised 8-23-03.)
| ||||||
2 | (30 ILCS 330/21 new) | ||||||
3 | Sec. 21. Truth in borrowing disclosures. | ||||||
4 | (a) Within 10 days after the issuance of any Bonds under | ||||||
5 | this Act, the Director of the Governor's Office of Management | ||||||
6 | and Budget shall publish a truth in borrowing disclosure that | ||||||
7 | discloses the total principal and interest payments to be paid | ||||||
8 | on the Bonds over the full stated term of the Bonds. The | ||||||
9 | disclosure also shall include principal and interest payments | ||||||
10 | to be made by each fiscal year over the full stated term of the | ||||||
11 | Bonds and total principal and interest payments to be made by | ||||||
12 | each fiscal year on all other outstanding Bonds issued under | ||||||
13 | this Act over the full stated terms of those Bonds. | ||||||
14 | (b) Within 10 days after the issuance of any refunding | ||||||
15 | bonds under Section 16 of this Act, the Director of the | ||||||
16 | Governor's Office of Management and Budget shall publish a | ||||||
17 | truth in borrowing disclosure that discloses the estimated | ||||||
18 | present-valued savings to be obtained through the refunding, in | ||||||
19 | total and by each fiscal year that the refunding Bonds may be | ||||||
20 | outstanding.
| ||||||
21 | (c) The disclosures required in subsections (a) and (b) | ||||||
22 | shall be published by posting the disclosures for no less than | ||||||
23 | 30 days on the web site of the Governor's Office of Management | ||||||
24 | and Budget and by providing the disclosures in written form to | ||||||
25 | the Illinois Economic and Fiscal Commission. These disclosures | ||||||
26 | shall be calculated assuming Bonds are not redeemed or refunded | ||||||
27 | prior to their stated maturities. Amounts included in these | ||||||
28 | disclosures as payment of interest on variable rate Bonds shall | ||||||
29 | be the maximum amounts of interest that may be payable during | ||||||
30 | each fiscal year, after taking into account any credits | ||||||
31 | permitted in the related indenture or other instrument against | ||||||
32 | the amount of such interest for each fiscal year. Amounts | ||||||
33 | included in these disclosures as payment of interest on |
| |||||||
| |||||||
1 | variable rate Bonds shall include the amounts certified by the | ||||||
2 | Director of the Governor's Office of Management and Budget | ||||||
3 | under subsection (b) of Section 9 of this Act.
| ||||||
4 | Section 20. The Build Illinois Bond Act is amended by | ||||||
5 | changing Sections 3, 5, 6, 8, and 15 and by adding Section 8.5 | ||||||
6 | as follows:
| ||||||
7 | (30 ILCS 425/3) (from Ch. 127, par. 2803)
| ||||||
8 | Sec. 3. Findings. The General Assembly hereby makes the | ||||||
9 | following
findings and determinations:
| ||||||
10 | (a) The issuance and sale of Bonds pursuant to this
Act is | ||||||
11 | an economical and efficient method of financing long-term | ||||||
12 | capital needs, including certain of the purposes
of the State, | ||||||
13 | as set forth in Section 4 hereof.
| ||||||
14 | (b) This Act will permit the issuance of Bonds, from time | ||||||
15 | to time, for
various purposes and with varying terms, features | ||||||
16 | and conditions in order
to enhance marketability and lower | ||||||
17 | interest costs incurred by the State.
Subsection (a) of Section | ||||||
18 | 6 of this Act authorizes the issuance, from time to
time, of
| ||||||
19 | Bonds in one or more series, in such principal amounts, bearing | ||||||
20 | interest at
such fixed rates or variable rates and having such | ||||||
21 | other terms and
provisions as designated State officers may fix | ||||||
22 | and determine pursuant to
the authority delegated under this | ||||||
23 | Act. Subsection (b) of Section 6 of this
Act
authorizes, in | ||||||
24 | connection with the issuance of and as security for any
series | ||||||
25 | of Bonds, the purchase of bond or interest rate insurance, the
| ||||||
26 | establishment of credit and liquidity enhancement arrangements | ||||||
27 | with
financial institutions, and participation in interest | ||||||
28 | rate swaps or
guarantee agreements or other arrangements to | ||||||
29 | limit interest rate risk.
| ||||||
30 | (c) The financing of the facilities and other purposes | ||||||
31 | described in
Section 4 of this Act through the issuance of | ||||||
32 | Bonds will involve numerous
expenditures over extended periods |
| |||||||
| |||||||
1 | of time, all of which expenditures shall
be made only pursuant | ||||||
2 | to and in conformity with appropriations from Bond
proceeds by | ||||||
3 | the General Assembly prior to the making of such expenditures.
| ||||||
4 | (d) Determinations with respect to (i) advantageous timing | ||||||
5 | and amounts
of such expenditures for particular approved | ||||||
6 | facilities or purposes, (ii)
establishing an advantageous mix | ||||||
7 | of short-term and long-term
debt instruments under bond market | ||||||
8 | conditions prevailing from time to time,
and (iii) specific | ||||||
9 | allocations of Bond proceeds to particular facilities
and | ||||||
10 | purposes should be based upon financial, engineering and | ||||||
11 | construction
management judgments made from time to time.
| ||||||
12 | (e) The State's ability to issue Bonds from time to time, | ||||||
13 | without
further action by the General Assembly, in separate | ||||||
14 | series, in various
principal amounts and with various interest | ||||||
15 | rates, maturities, redemption
provisions and other terms will | ||||||
16 | enhance the State's opportunities to obtain
such financing as | ||||||
17 | needed, upon favorable terms.
| ||||||
18 | In order to provide for flexibility in meeting the | ||||||
19 | financial, engineering
and construction needs of the State and | ||||||
20 | its agencies and departments and in
order to provide continuing | ||||||
21 | and adequate financing for the aforesaid
purposes on favorable | ||||||
22 | terms, the delegations of authority to the Governor,
the | ||||||
23 | Director of the
Governor's Office of Management and Budget
| ||||||
24 | Bureau of the Budget , the State Comptroller, the State
| ||||||
25 | Treasurer and other officers
of the State which are contained | ||||||
26 | in this Act are necessary and desirable
because this General | ||||||
27 | Assembly cannot itself as understandingly,
advantageously, | ||||||
28 | expeditiously or conveniently exercise such authority and
make | ||||||
29 | such specific determinations.
| ||||||
30 | (Source: P.A. 84-111; revised 8-23-03.)
| ||||||
31 | (30 ILCS 425/5) (from Ch. 127, par. 2805)
| ||||||
32 | Sec. 5. Bond Sale Expenses. | ||||||
33 | (a) An amount necessary to pay the
reasonable costs of each |
| |||||||
| |||||||
1 | issuance and sale of Bonds authorized and sold
pursuant to this | ||||||
2 | Act, including , without limitation, underwriter's discounts | ||||||
3 | and fees, advertising, printing, bond rating, travel,
| ||||||
4 | security, delivery, legal and financial advisory services, | ||||||
5 | insurance, initial fees
of trustees, registrars, paying agents | ||||||
6 | and other fiduciaries, initial costs
of credit or liquidity | ||||||
7 | enhancement arrangements, initial fees of indexing
and | ||||||
8 | remarketing agents, and initial costs of interest rate swaps,
| ||||||
9 | guarantees or arrangements to limit interest rate risk, as | ||||||
10 | determined in
the related Bond Sale Order, shall
is hereby | ||||||
11 | authorized to be paid from funds appropriated for that purpose
| ||||||
12 | the proceeds of each Bond sale .
| ||||||
13 | (b) The Director of the Governor's Office of Management and | ||||||
14 | Budget shall not contract with any underwriter, bond counsel, | ||||||
15 | or financial advisor unless that underwriter, bond counsel, or | ||||||
16 | financial advisor certifies that the underwriter, bond | ||||||
17 | counsel, or financial advisor has not and will not pay a | ||||||
18 | contingent fee to any party for having promoted the selection | ||||||
19 | of the underwriter, bond counsel, or financial advisor for that | ||||||
20 | contract. | ||||||
21 | (Source: P.A. 84-111.)
| ||||||
22 | (30 ILCS 425/6) (from Ch. 127, par. 2806)
| ||||||
23 | Sec. 6. Conditions for Issuance and Sale of Bonds - | ||||||
24 | Requirements for
Bonds - Master and Supplemental Indentures - | ||||||
25 | Credit and Liquidity
Enhancement. (a) Bonds shall be issued and | ||||||
26 | sold from time to time, in one
or more series, in such amounts | ||||||
27 | and at such prices as directed by the
Governor, upon | ||||||
28 | recommendation by the Director of the
Governor's Office of | ||||||
29 | Management and Budget
Bureau of the Budget .
Bonds shall be | ||||||
30 | payable only from the specific sources and secured in the
| ||||||
31 | manner provided in this Act. Bonds shall be in such form, in | ||||||
32 | such
denominations, mature on such dates within 25
30 years | ||||||
33 | from their date of
issuance, be subject to optional or |
| |||||||
| |||||||
1 | mandatory redemption, bear interest
payable at such times and | ||||||
2 | at such rate or rates, fixed or variable, and be
dated as shall | ||||||
3 | be fixed and determined by the Director of the
Governor's | ||||||
4 | Office of Management and Budget
Bureau of the
Budget
in an | ||||||
5 | order authorizing the
issuance and sale of any series of
Bonds, | ||||||
6 | which order shall be approved by the Governor and is herein | ||||||
7 | called a
"Bond Sale Order"; provided, however, that interest | ||||||
8 | payable at fixed rates
shall not exceed that permitted in "An | ||||||
9 | Act to authorize public corporations
to issue bonds, other | ||||||
10 | evidences of indebtedness and tax anticipation
warrants | ||||||
11 | subject to interest rate limitations set forth therein", | ||||||
12 | approved
May 26, 1970, as now or hereafter amended, and | ||||||
13 | interest payable at variable
rates shall not exceed the maximum | ||||||
14 | rate permitted in the Bond Sale Order.
Said Bonds shall be | ||||||
15 | payable at such place or places, within or without the
State of | ||||||
16 | Illinois,
and may be made registrable
as to either principal | ||||||
17 | only or as to both principal and interest, as shall
be | ||||||
18 | specified in the Bond Sale
Order. Bonds may be callable or | ||||||
19 | subject to purchase and retirement or
remarketing as fixed and | ||||||
20 | determined in the Bond Sale Order. Bonds must be offered for | ||||||
21 | sale with principal or mandatory redemption amounts in | ||||||
22 | substantially equal amounts, with the first maturity offered | ||||||
23 | for sale occurring within the fiscal year in which the Bonds | ||||||
24 | are offered or within the next succeeding fiscal year, with | ||||||
25 | Bonds offered for sale maturing or subject to mandatory | ||||||
26 | redemption each fiscal year thereafter up to 25 years.
| ||||||
27 | All Bonds authorized under this Act shall be issued | ||||||
28 | pursuant
to a master trust indenture ("Master Indenture") | ||||||
29 | executed and delivered on
behalf of the State by the Director | ||||||
30 | of the
Governor's Office of Management and Budget
Bureau of the | ||||||
31 | Budget , such
Master Indenture to be in substantially the form | ||||||
32 | approved in the Bond Sale
Order authorizing the issuance and | ||||||
33 | sale of the initial series of Bonds
issued under this Act. Such | ||||||
34 | initial series of Bonds may, and each
subsequent series of |
| |||||||
| |||||||
1 | Bonds shall, also be issued pursuant to a supplemental
trust | ||||||
2 | indenture ("Supplemental Indenture") executed and delivered on | ||||||
3 | behalf
of the State by the Director of the
Governor's Office of | ||||||
4 | Management and Budget
Bureau of the Budget , each such
| ||||||
5 | Supplemental
Indenture to be in substantially the form approved | ||||||
6 | in the Bond Sale Order
relating to such series. The Master | ||||||
7 | Indenture and any Supplemental
Indenture shall be entered into | ||||||
8 | with a bank or trust company in the State
of Illinois having | ||||||
9 | trust powers and possessing capital and surplus of not
less | ||||||
10 | than $100,000,000. Such indentures shall set forth the terms | ||||||
11 | and
conditions of the Bonds and provide for payment of and | ||||||
12 | security for the
Bonds, including the establishment and | ||||||
13 | maintenance of debt service and
reserve funds, and for other | ||||||
14 | protections for holders of the Bonds.
The term "reserve funds" | ||||||
15 | as used in this Act shall include funds and
accounts | ||||||
16 | established under indentures to provide for the payment of
| ||||||
17 | principal of and premium and interest on Bonds, to provide for | ||||||
18 | the purchase,
retirement or defeasance of Bonds, to provide for | ||||||
19 | fees of
trustees, registrars, paying agents and other | ||||||
20 | fiduciaries and to provide
for payment of costs of and debt | ||||||
21 | service payable in respect of credit or
liquidity enhancement | ||||||
22 | arrangements, interest rate swaps or guarantees or
financial | ||||||
23 | futures contracts and
indexing and remarketing agents' | ||||||
24 | services.
| ||||||
25 | In the case of any series of Bonds bearing interest at a | ||||||
26 | variable
interest rate ("Variable Rate Bonds"), in lieu of | ||||||
27 | determining the rate or
rates at which such series of Variable | ||||||
28 | Rate Bonds shall bear interest and
the price or prices
at which | ||||||
29 | such Variable Rate Bonds shall be initially sold or remarketed | ||||||
30 | (in
the event of purchase and subsequent resale), the Bond
Sale | ||||||
31 | Order may provide that such interest rates and prices may vary | ||||||
32 | from time to time
depending on criteria established in such | ||||||
33 | Bond Sale Order, which criteria
may include, without | ||||||
34 | limitation, references to indices or variations in
interest |
| |||||||
| |||||||
1 | rates as may, in the judgment of a remarketing agent, be
| ||||||
2 | necessary to cause Bonds of such series to be remarketable from | ||||||
3 | time to
time at a price equal to their principal amount (or | ||||||
4 | compound accreted
value in the case of original issue discount | ||||||
5 | Bonds), and may provide for
appointment of indexing agents and | ||||||
6 | a bank, trust company,
investment bank or other financial | ||||||
7 | institution to serve as remarketing
agent in that connection. | ||||||
8 | The Bond Sale Order may provide that alternative
interest rates | ||||||
9 | or provisions for establishing alternative interest rates,
| ||||||
10 | different security or claim priorities or different call or | ||||||
11 | amortization provisions
will apply during such times as Bonds | ||||||
12 | of any series are held by a person
providing credit or | ||||||
13 | liquidity enhancement arrangements for such Bonds as
| ||||||
14 | authorized in subsection (b) of Section 6 of this Act.
| ||||||
15 | (b) In connection with the issuance of any series of Bonds, | ||||||
16 | the State
may enter into arrangements to provide additional | ||||||
17 | security and liquidity
for such Bonds, including, without | ||||||
18 | limitation, bond or interest rate
insurance or letters of | ||||||
19 | credit, lines of credit, bond purchase contracts or
other | ||||||
20 | arrangements whereby funds are made
available to retire or | ||||||
21 | purchase Bonds, thereby assuring the ability of
owners of the | ||||||
22 | Bonds to sell or redeem their Bonds.
The State may enter into | ||||||
23 | contracts and may agree to pay fees to persons
providing such | ||||||
24 | arrangements, but only under circumstances where the
Director | ||||||
25 | of the Bureau of the Budget
(now Governor's Office of | ||||||
26 | Management and Budget)
certifies that he reasonably expects
the | ||||||
27 | total interest paid or to be paid on the Bonds, together with | ||||||
28 | the fees
for the arrangements (being treated as if interest), | ||||||
29 | would not, taken
together, cause the Bonds to bear interest, | ||||||
30 | calculated to their stated
maturity, at a rate in excess of the | ||||||
31 | rate which the Bonds would bear in the
absence of such | ||||||
32 | arrangements. Any bonds, notes or other evidences of
| ||||||
33 | indebtedness issued pursuant to any such arrangements for the | ||||||
34 | purpose of
retiring and discharging outstanding Bonds
shall |
| |||||||
| |||||||
1 | constitute refunding Bonds
under Section 15 of this Act. The | ||||||
2 | State may participate in and enter
into arrangements with | ||||||
3 | respect to interest rate swaps or guarantees or
financial | ||||||
4 | futures contracts for the
purpose of limiting or restricting | ||||||
5 | interest rate risk; provided
that such arrangements shall be | ||||||
6 | made with or executed through banks
having capital and surplus | ||||||
7 | of not less than $100,000,000 or insurance
companies holding | ||||||
8 | the
highest policyholder rating accorded insurers by A.M. Best & | ||||||
9 | Co. or any
comparable rating service or government bond | ||||||
10 | dealers reporting to, trading
with, and recognized as primary | ||||||
11 | dealers by a Federal Reserve Bank and
having capital and | ||||||
12 | surplus of not less than $100,000,000,
or other persons whose
| ||||||
13 | debt securities are rated in the highest long-term categories | ||||||
14 | by both
Moody's Investors' Services, Inc. and Standard & Poor's | ||||||
15 | Corporation.
Agreements incorporating any of the foregoing | ||||||
16 | arrangements may be executed
and delivered by the Director of | ||||||
17 | the
Governor's Office of Management and Budget
Bureau of the | ||||||
18 | Budget on behalf of the
State in substantially the form | ||||||
19 | approved in the Bond Sale Order relating to
such Bonds.
| ||||||
20 | (Source: P.A. 84-111; revised 8-23-03.)
| ||||||
21 | (30 ILCS 425/8) (from Ch. 127, par. 2808)
| ||||||
22 | Sec. 8. Sale of Bonds. Bonds, except as otherwise provided | ||||||
23 | in this Section, shall be sold from time to time pursuant to
| ||||||
24 | notice of sale and public bid in such amounts and at such
times | ||||||
25 | as are directed by the Governor, upon recommendation by the | ||||||
26 | Director of
the Governor's Office of Management and Budget. | ||||||
27 | If more than half of the proceeds of an issue of Bonds to | ||||||
28 | be offered for sale is expected to be used for refunding | ||||||
29 | purposes or if more than half of the principal amount of Bonds | ||||||
30 | is offered for sale with a variable rate, the entire issue of | ||||||
31 | the Bonds may be sold pursuant to notice of sale and public bid | ||||||
32 | or by negotiated sale. The Director of the
Governor's Office of | ||||||
33 | Management and Budget shall comply with the
competitive sealed |
| |||||||
| |||||||
1 | bidding or competitive request for proposal process, as | ||||||
2 | applicable, set forth in the Illinois
Procurement Code and all | ||||||
3 | other applicable requirements of that Code. | ||||||
4 | If Bonds are to be sold pursuant to notice of sale and | ||||||
5 | public bid, in addition to the requirements of the Illinois | ||||||
6 | Procurement Code, the
Director of the
Governor's Office of | ||||||
7 | Management and Budget shall, from time to time, as Bonds are to | ||||||
8 | be sold, advertise
the sale of the Bonds in at least 2 daily | ||||||
9 | newspapers, one of which is
published in the City of | ||||||
10 | Springfield and one in the City of Chicago. The sale
of the | ||||||
11 | Bonds shall also be
advertised in the volume of the Illinois | ||||||
12 | Procurement Bulletin that is
published by the Department of | ||||||
13 | Central Management Services. Each of
the advertisements for
| ||||||
14 | proposals shall be published once at least 14 days prior to the | ||||||
15 | date fixed
for the opening of the bids. The Director of the
| ||||||
16 | Governor's Office of Management and Budget may
reschedule the | ||||||
17 | date of sale upon the giving of such additional notice as the
| ||||||
18 | Director deems adequate to inform prospective bidders of
the | ||||||
19 | change; provided, however, that all other conditions of the | ||||||
20 | sale shall
continue as originally advertised.
Bonds shall be | ||||||
21 | sold from time to time
pursuant to advertised notice of sale
| ||||||
22 | and public bid or by negotiated sale as the Director of the
| ||||||
23 | Bureau of the
Budget shall, in his sole discretion, determine | ||||||
24 | in order to market the
Bonds in an economic, effective manner.
| ||||||
25 | Executed Bonds shall, upon payment
therefor, be delivered to | ||||||
26 | the purchaser, and the proceeds of Bonds shall be
paid into the | ||||||
27 | State Treasury as
directed by Section 9 of this Act.
The
| ||||||
28 | Governor or the Director of the
Governor's Office of Management | ||||||
29 | and Budget
Bureau of the Budget is hereby authorized
and | ||||||
30 | directed to execute and
deliver contracts of sale with | ||||||
31 | underwriters and to execute and deliver such
certificates, | ||||||
32 | indentures, agreements and documents, including any
| ||||||
33 | supplements or amendments thereto, and to take such actions and | ||||||
34 | do such
things as shall be necessary or desirable to carry out |
| |||||||
| |||||||
1 | the purposes of this
Act.
Any action authorized or permitted to | ||||||
2 | be taken by the Director of the
Governor's Office of Management | ||||||
3 | and Budget
Bureau of the Budget pursuant to this Act is hereby | ||||||
4 | authorized to be taken
by any person specifically designated by | ||||||
5 | the Governor to take such action
in a certificate signed by the | ||||||
6 | Governor and filed with the Secretary of State.
| ||||||
7 | (Source: P.A. 84-111; revised 8-23-03.)
| ||||||
8 | (30 ILCS 425/8.5 new) | ||||||
9 | Sec. 8.5. Truth in borrowing disclosures. | ||||||
10 | (a) Within 10 days after the issuance of any Bonds under | ||||||
11 | this Act, the Director of the Governor's Office of Management | ||||||
12 | and Budget shall publish a truth in borrowing disclosure that | ||||||
13 | discloses the total principal and interest payments to be paid | ||||||
14 | on the Bonds over the full stated term of the Bonds. The | ||||||
15 | disclosure also shall include principal and interest payments | ||||||
16 | to be made by each fiscal year over the full stated term of the | ||||||
17 | Bonds and total principal and interest payments to be made by | ||||||
18 | each fiscal year on all other outstanding Bonds issued under | ||||||
19 | this Act over the full stated terms of those Bonds. | ||||||
20 | (b) Within 10 days after the issuance of any refunding | ||||||
21 | bonds under Section 15 of this Act, the Director of the | ||||||
22 | Governor's Office of Management and Budget shall publish a | ||||||
23 | truth in borrowing disclosure that discloses the estimated | ||||||
24 | present-valued savings to be obtained through the refunding, in | ||||||
25 | total and by each fiscal year that the refunding Bonds may be | ||||||
26 | outstanding.
| ||||||
27 | (c) The disclosures required in subsections (a) and (b) | ||||||
28 | shall be published by posting the disclosures for no less than | ||||||
29 | 30 days on the web site of the Governor's Office of Management | ||||||
30 | and Budget and by providing the disclosures in written form to | ||||||
31 | the Illinois Economic and Fiscal Commission. These disclosures | ||||||
32 | shall be calculated assuming Bonds are not redeemed or refunded | ||||||
33 | prior to their stated maturities. Amounts included in these |
| |||||||
| |||||||
1 | disclosures as payment of interest on variable rate Bonds shall | ||||||
2 | be the maximum amounts of interest that may be payable during | ||||||
3 | each fiscal year, after taking into account any credits | ||||||
4 | permitted in the related indenture or other instrument against | ||||||
5 | the amount of such interest for each fiscal year.
| ||||||
6 | (30 ILCS 425/15) (from Ch. 127, par. 2815)
| ||||||
7 | Sec. 15. Refunding Bonds. Refunding Bonds are hereby | ||||||
8 | authorized for
the purpose of refunding any outstanding Bonds, | ||||||
9 | including the payment of
any redemption premium thereon, any | ||||||
10 | reasonable expenses of such refunding,
and any interest accrued | ||||||
11 | or to accrue to the earliest or any subsequent
date of | ||||||
12 | redemption or maturity of outstanding Bonds; provided that all | ||||||
13 | Bonds in an issue that includes
such
refunding Bonds shall | ||||||
14 | mature no later than the final maturity date of Bonds
being | ||||||
15 | refunded ; provided that no refunding Bonds shall be offered for | ||||||
16 | sale unless the net present value of savings to be achieved by | ||||||
17 | the issuance of the refunding Bonds is 3% or more of the amount | ||||||
18 | of the refunding Bonds to be issued; and further provided that | ||||||
19 | no refunding Bonds shall be offered for sale that are expected | ||||||
20 | to refund Bonds under a refunding plan that would have the | ||||||
21 | effect of decreasing the State's principal payments on all | ||||||
22 | Bonds in the fiscal year in which the refunding Bonds are | ||||||
23 | offered or in the next succeeding fiscal year by a total of | ||||||
24 | more than 5% of the principal or redemption amounts due on all | ||||||
25 | then-outstanding Bonds in the fiscal year next succeeding the | ||||||
26 | fiscal year in which the refunding Bonds are offered .
| ||||||
27 | Refunding Bonds may be sold in such amounts and at such | ||||||
28 | times, as
directed by the Governor upon
recommendation by the | ||||||
29 | Director of the
Governor's Office of Management and Budget
| ||||||
30 | Bureau
of the Budget . The Governor
shall notify the State | ||||||
31 | Treasurer and
Comptroller of such refunding. The proceeds | ||||||
32 | received from the sale of
refunding Bonds shall be used
for the | ||||||
33 | retirement at maturity or redemption of such outstanding Bonds |
| |||||||
| |||||||
1 | on
any maturity or redemption date and, pending such use, shall | ||||||
2 | be placed in
escrow, subject to such terms and conditions as | ||||||
3 | shall be provided for in
the Bond Sale Order relating to the | ||||||
4 | refunding Bonds. This Act shall
constitute an irrevocable and | ||||||
5 | continuing
appropriation of all amounts necessary to establish | ||||||
6 | an escrow account for
the purpose of refunding outstanding | ||||||
7 | Bonds and to pay the reasonable
expenses of such refunding and | ||||||
8 | of the issuance and sale of the refunding
Bonds. Any such | ||||||
9 | escrowed proceeds may be invested and
reinvested in direct | ||||||
10 | obligations of the United States of America, maturing
at such | ||||||
11 | time or times as shall be appropriate to assure the prompt | ||||||
12 | payment,
when due,
of the principal of and interest and | ||||||
13 | redemption premium, if any, on the
refunded Bonds. After the | ||||||
14 | terms of the escrow have been fully satisfied,
any remaining | ||||||
15 | balance of such proceeds and interest, income and profits
| ||||||
16 | earned or realized on the investments thereof shall be paid | ||||||
17 | into the
General Revenue Fund. The liability of the State upon | ||||||
18 | the refunded Bonds
shall continue, provided that the holders | ||||||
19 | thereof shall thereafter be
entitled to payment only out of the | ||||||
20 | moneys deposited in the escrow account
and the refunded Bonds | ||||||
21 | shall be deemed paid, discharged and no longer to be
| ||||||
22 | outstanding.
| ||||||
23 | Except as otherwise herein provided in this Section, such | ||||||
24 | refunding Bonds
shall in all other respects be issued pursuant | ||||||
25 | to and subject to the terms
and conditions of this Act and | ||||||
26 | shall be secured by and payable from only the
funds and sources | ||||||
27 | which are provided under this Act.
| ||||||
28 | (Source: P.A. 84-111; revised 8-23-03.)
| ||||||
29 | Section 999. Effective date. This Act takes effect upon | ||||||
30 | becoming law.".
|