093_SB1075ham001

 










                                     LRB093 08352 JAM 15633 a

 1                    AMENDMENT TO SENATE BILL 1075

 2        AMENDMENT NO.     .  Amend Senate Bill 1075 by  replacing
 3    everything after the enacting clause with the following:

 4        "Section  5.   The  Rural  Bond  Bank  Act  is amended by
 5    changing Section 1-2 as follows:

 6        (30 ILCS 360/1-2) (from Ch. 17, par. 7201-2)
 7        Sec. 1-2. Declaration of purpose. (a) It is  declared  to
 8    be  in  the  public interest and to be the policy of Illinois
 9    this State:
10        (1)  To foster and promote by all  reasonable  means  the
11    provision  of  adequate  capital  markets  and facilities for
12    borrowing money by rural units of local government,  and  for
13    the  financing  of  their  respective public improvements and
14    other governmental purposes within the State from proceeds of
15    bonds or notes issued by those governmental units;
16        (2)  To assist rural  governmental  units  in  fulfilling
17    their  needs  for  those  purposes  by  use  of  creation  of
18    indebtedness;
19        (3)  To  the  extent  possible,  to  reduce  the costs of
20    indebtedness to taxpayers and residents of this State and  to
21    encourage  continued  investor  interest  in  the purchase of
22    bonds or notes of  rural  governmental  units  as  sound  and
 
                            -2-      LRB093 08352 JAM 15633 a
 1    preferred securities for investment; and
 2        (4)  To  encourage  rural  governmental units to continue
 3    their independent undertakings  of  public  improvements  and
 4    other governmental purposes and the financing thereof, and to
 5    assist  them in those activities by making funds available at
 6    reduced  interest  costs  for  orderly  financing  of   those
 7    purposes,  especially  during periods of restricted credit or
 8    money supply, and particularly for those  rural  governmental
 9    units not otherwise able to borrow for those purposes.
10        (b)  It  is  further  declared  that  current  credit and
11    municipal bond market  conditions  require  the  exercise  of
12    State  powers  in the interest of rural governmental units to
13    further and implement these policies by:
14        (1)  Authorizing a State instrumentality to be created as
15    a body corporate and politic to have full  powers  to  borrow
16    money  and  to  issue  its  bonds  and  notes  to  make funds
17    available through the facilities of  the  instrumentality  at
18    reduced  rates  and  on more favorable terms for borrowing by
19    rural  governmental  units  through   the   instrumentality's
20    purchase  of  the bonds or notes of the governmental units in
21    fully marketable form; and
22        (2)  Granting broad  powers  to  the  instrumentality  to
23    accomplish and to carry out these policies of the State which
24    are  in the public interest of the State and of its taxpayers
25    and residents.
26    (Source: P.A. 86-927.)".