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| | 97TH GENERAL ASSEMBLY
State of Illinois
2011 and 2012 SB0003 Introduced 1/13/2011, by Sen. John J. Cullerton SYNOPSIS AS INTRODUCED: |
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Amends the State Finance Act. Creates the General Obligation Restructuring Bond Fund and the General Obligation Restructuring Bond Debt Service Fund as special funds in the State treasury. Provides that the Comptroller shall transfer into the General Obligation Restructuring Bond Debt Service Fund certain amounts to service debt due on State General Obligation Restructuring Bonds. Amends the General Obligation Bond Act. Increases total authorized amount of General Obligation Bonds. Provides that the $8,750,000,000 of Bonds authorized by this amendatory Act shall be used to pay vouchers that are at least 60 days past due, medical expenses incurred by the State under its health plans, corporate income tax refunds, and other operating expenses of the State. Provides that the proceeds of these Bonds shall be deposited in the General Obligation Restructuring Bond Fund. Provides for the conditions for issuance and sale of State General Obligation Restructuring Bonds. Makes other changes. Effective immediately.
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| | FISCAL NOTE ACT MAY APPLY | | STATE DEBT IMPACT NOTE ACT MAY APPLY |
| | A BILL FOR |
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1 | | AN ACT concerning finance.
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2 | | Be it enacted by the People of the State of Illinois,
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3 | | represented in the General Assembly:
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4 | | Section 5. The State Finance Act is amended by adding |
5 | | Sections 5.786, 5.787, 6z-85, 6z-86, and 6z-87 as follows: |
6 | | (30 ILCS 105/5.786 new) |
7 | | Sec. 5.786. General Obligation Restructuring Bond Fund. |
8 | | (30 ILCS 105/5.787 new) |
9 | | Sec. 5.787. General Obligation Restructuring Bond Debt |
10 | | Service Fund. |
11 | | (30 ILCS 105/6z-85 new) |
12 | | Sec. 6z-85. State General Obligation Restructuring Bonds. |
13 | | If and when the State issues any State General Obligation |
14 | | Restructuring Bonds defined in Section 7.6 of the General |
15 | | Obligation Bond Act, the Comptroller shall transfer into the |
16 | | State General Obligation Restructuring Bond Debt Service Fund |
17 | | the amounts set forth in this Section 6z-85. The Governor's |
18 | | Office of Management and Budget shall certify to the |
19 | | Comptroller and the Treasurer, on the date of issuance of any |
20 | | State General Obligation Restructuring Bond and thereafter by |
21 | | the last business day of each fiscal year, the amount of funds |
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1 | | sufficient to pay the aggregate of the principal of, interest |
2 | | on, and premium, if any, on State General Obligation |
3 | | Restructuring Bonds payable with respect to the prospective |
4 | | fiscal year (or, in the case of a partial fiscal year, for the |
5 | | remainder of that fiscal year). Interest payable on variable |
6 | | rate bonds shall be calculated at the maximum rate of interest |
7 | | that may be payable for the relevant period, after taking into |
8 | | account any credits permitted in the related indenture or other |
9 | | instrument against the amount of interest required to be |
10 | | appropriated for that period pursuant to subsection (c) of |
11 | | Section 14 of the General Obligation Bond Act. Commencing with |
12 | | the first business day of the fiscal year to which such |
13 | | certification relates (or, in the case of a partial fiscal |
14 | | year, the first business day of the month following the month |
15 | | in which State General Obligation Restructuring Bonds were |
16 | | issued) and continuing on a monthly basis for each successive |
17 | | month thereafter, the Treasurer and the Comptroller shall |
18 | | transfer $129,000,000 into the State General Obligation |
19 | | Restructuring Bond Debt Service Fund. The Comptroller shall |
20 | | continue making monthly transfers into the State General |
21 | | Obligation Restructuring Bond Debt Service Fund until such time |
22 | | as the aggregate amount of funds transferred into the State |
23 | | General Obligation Restructuring Bond Debt Service Fund in a |
24 | | fiscal year (or partial period) equals the amount of funds |
25 | | necessary to service the debt for such fiscal year (or partial |
26 | | period) on the Bonds, as certified by the Governor's Office of |
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1 | | Management and Budget. Such amounts shall be set aside and used |
2 | | for the purpose of paying and discharging the principal and |
3 | | interest on such bonds when due and payable and for no other |
4 | | purpose. Interest on Bonds for which moneys have already been |
5 | | deposited into the capitalized interest account within the |
6 | | General Obligation Bond Retirement and Interest Fund shall not |
7 | | be included in the calculation of the amounts to be transferred |
8 | | under this subsection. |
9 | | (30 ILCS 105/6z-86 new) |
10 | | Sec. 6z-86. General Obligation Restructuring Bond Fund. |
11 | | The General Obligation Restructuring Bond Fund is created as a |
12 | | special fund in the State treasury for the purpose of receiving |
13 | | and disbursing moneys in accordance with Section 7.6 of the |
14 | | General Obligation Bond Act. All money in the General |
15 | | Obligation Restructuring Bond Fund must be used to make the |
16 | | transfers and payments required under that Section. |
17 | | (30 ILCS 105/6z-87 new) |
18 | | Sec. 6z-87. General Obligation Restructuring Bond Debt |
19 | | Service Fund. The General Obligation Restructuring Bond Debt |
20 | | Service Fund is created as a special fund in the State |
21 | | treasury. |
22 | | Section 10. The General Obligation Bond Act is amended by |
23 | | changing Sections 2, 2.5, 8, 9, 12, 13, 14, and 15 and by |
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1 | | adding Section 7.6 as follows: |
2 | | (30 ILCS 330/2) (from Ch. 127, par. 652) |
3 | | Sec. 2. Authorization for Bonds. The State of Illinois is |
4 | | authorized to
issue, sell and provide for the retirement of |
5 | | General Obligation Bonds of
the State of Illinois for the |
6 | | categories and specific purposes expressed in
Sections 2 |
7 | | through 8 of this Act, in the total amount of $45,967,777,443 |
8 | | $37,217,777,443 $36,967,777,443 . |
9 | | The bonds authorized in this Section 2 and in Section 16 of |
10 | | this Act are
herein called "Bonds". |
11 | | Of the total amount of Bonds authorized in this Act, up to |
12 | | $2,200,000,000
in aggregate original principal amount may be |
13 | | issued and sold in accordance
with the Baccalaureate Savings |
14 | | Act in the form of General Obligation
College Savings Bonds. |
15 | | Of the total amount of Bonds authorized in this Act, up to |
16 | | $300,000,000 in
aggregate original principal amount may be |
17 | | issued and sold in accordance
with the Retirement Savings Act |
18 | | in the form of General Obligation
Retirement Savings Bonds. |
19 | | Of the total amount of Bonds authorized in this Act, the |
20 | | additional
$10,000,000,000 authorized by Public Act 93-2 and |
21 | | the $3,466,000,000 authorized by Public Act 96-43 shall be used |
22 | | solely as provided in Section 7.2. |
23 | | Of the total amount of Bonds authorized in this Act, |
24 | | $8,750,000,000 of the additional amount of Bonds authorized by |
25 | | this amendatory Act of the 97th General Assembly shall be used |
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1 | | solely as provided in Section 7.6 and shall be issued by July |
2 | | 1, 2012. |
3 | | The issuance and sale of Bonds pursuant to the General |
4 | | Obligation Bond
Act is an economical and efficient method of |
5 | | financing the long-term capital needs of
the State. This Act |
6 | | will permit the issuance of a multi-purpose General
Obligation |
7 | | Bond with uniform terms and features. This will not only lower
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8 | | the cost of registration but also reduce the overall cost of |
9 | | issuing debt
by improving the marketability of Illinois General |
10 | | Obligation Bonds. |
11 | | (Source: P.A. 95-1026, eff. 1-12-09; 96-5, eff. 4-3-09; 96-36, |
12 | | eff. 7-13-09; 96-43, eff. 7-15-09; 96-885, eff. 3-11-10; |
13 | | 96-1000, eff. 7-2-10; revised 9-3-10.) |
14 | | (30 ILCS 330/2.5) |
15 | | Sec. 2.5. Limitation on issuance of Bonds. |
16 | | (a) Except as provided in subsections subsection (b) and |
17 | | (c) , no Bonds may be issued if, after the issuance, in the next |
18 | | State fiscal year after the issuance of the Bonds, the amount |
19 | | of debt service (including principal, whether payable at |
20 | | maturity or pursuant to mandatory sinking fund installments, |
21 | | and interest) on all then-outstanding Bonds, other than Bonds |
22 | | authorized by this amendatory Act of the 96th General Assembly, |
23 | | would exceed 7% of the aggregate appropriations from the |
24 | | general funds (which consist of the General Revenue Fund, the |
25 | | Common School Fund, the General Revenue Common School Special |
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1 | | Account Fund, and the Education Assistance Fund) and the Road |
2 | | Fund for the fiscal year immediately prior to the fiscal year |
3 | | of the issuance. |
4 | | (b) If the Comptroller and Treasurer each consent in |
5 | | writing, Bonds may be issued even if the issuance does not |
6 | | comply with subsection (a). |
7 | | (c) Subsection (a) shall not apply to bonds authorized in |
8 | | Section 7.6, and the debt service, including principal, whether |
9 | | payable at maturity or pursuant to mandatory sinking fund |
10 | | installments, and interest, on Bonds authorized in Section 7.6 |
11 | | shall be excluded from the calculation set forth in subsection |
12 | | (a).
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13 | | (Source: P.A. 96-43, eff. 7-15-09.) |
14 | | (30 ILCS 330/7.6 new) |
15 | | Sec. 7.6. State General Obligation Restructuring Bonds. |
16 | | (a) The amount of $8,750,000,000 of Bonds authorized by |
17 | | this amendatory Act of the 97th General Assembly is authorized |
18 | | to be used for the purposes of (i) paying, from time to time, |
19 | | vouchers that are at least 60 days past due; (ii) paying |
20 | | medical expenses and other obligations incurred by the State |
21 | | under its health plans and programs; (iii) paying corporate |
22 | | income tax refunds; and (iv) paying other unfunded liabilities |
23 | | of the State as incurred from time to time. |
24 | | (b) As used in this Act, "State General Obligation |
25 | | Restructuring Bonds" means Bonds authorized by this amendatory |
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1 | | Act of the 97th General Assembly and issued under this Act for |
2 | | the purposes authorized in this Section. References to Bonds |
3 | | authorized under this Section 7.6 mean Bonds, the proceeds of |
4 | | which are to be used as authorized in subsection (a). |
5 | | (c) The proceeds of State General Obligation Restructuring |
6 | | Bonds, less the amounts authorized in the Bond Sale Order to be |
7 | | deposited directly into the capitalized interest account of the |
8 | | General Obligation Bond Retirement and Interest Fund or |
9 | | otherwise directly paid out for bond sale expenses under |
10 | | Section 8, shall be deposited into the General Obligation |
11 | | Restructuring Bond Fund, and the Comptroller and the Treasurer |
12 | | shall, as soon as practical, (i) make transfers from the |
13 | | General Obligation Restructuring Bond Fund to the General |
14 | | Revenue Fund for the purpose of making the payments |
15 | | contemplated by this Section and (ii) make such payments.
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16 | | (30 ILCS 330/8) (from Ch. 127, par. 658)
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17 | | Sec. 8. Bond sale expenses. |
18 | | (a)
An amount not to exceed
0.5 percent of the
principal |
19 | | amount of the proceeds of sale of each bond sale is authorized
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20 | | to be used to pay the reasonable costs of issuance and sale, |
21 | | including, without limitation, underwriter's discounts and |
22 | | fees, but excluding bond insurance,
of State of
Illinois |
23 | | general obligation bonds authorized and sold pursuant to this |
24 | | Act, provided that no salaries of State employees or other |
25 | | State office operating expenses shall be paid out of |
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1 | | non-appropriated proceeds, provided further that the percent |
2 | | shall be 1.0% for each sale of "Build America Bonds" or |
3 | | "Qualified School Construction Bonds" as defined in |
4 | | subsections (d) and (e) of Section 9, respectively , and for |
5 | | each sale of Bonds authorized by Section 7.6 . The Governor's |
6 | | Office of Management and Budget shall compile a summary of all |
7 | | costs of issuance on each sale (including both costs paid out |
8 | | of proceeds and those paid out of appropriated funds) and post |
9 | | that summary on its web site within 20 business days after the |
10 | | issuance of
the Bonds. The summary shall include, as |
11 | | applicable, the respective percentages of participation and |
12 | | compensation of each underwriter that is a member of the |
13 | | underwriting syndicate, legal counsel, financial advisors, and |
14 | | other professionals for the bond issue and an identification of |
15 | | all costs of issuance paid to minority owned businesses, female |
16 | | owned businesses, and businesses owned by persons with |
17 | | disabilities. The terms "minority owned businesses", "female |
18 | | owned businesses", and "business owned by a person with a |
19 | | disability" have the meanings given to those terms in the |
20 | | Business Enterprise for Minorities, Females, and Persons with |
21 | | Disabilities Act. That posting shall be maintained on the web |
22 | | site for a period of at least 30 days. In addition, the |
23 | | Governor's Office of Management and Budget shall provide a |
24 | | written copy of each summary of costs to the Speaker and |
25 | | Minority Leader of the House of Representatives, the President |
26 | | and Minority Leader of the Senate, and the Commission on |
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1 | | Government Forecasting and Accountability within 20 business |
2 | | days after each issuance of the Bonds. In addition, the |
3 | | Governor's Office of Management and Budget shall provide copies |
4 | | of all contracts under which any costs of issuance are paid or |
5 | | to be paid to the Commission on Government Forecasting and |
6 | | Accountability within 20 business days after the issuance of |
7 | | Bonds for which those costs are paid or to be paid. Instead of |
8 | | filing a second or subsequent copy of the same contract, the |
9 | | Governor's Office of Management and Budget may file a statement |
10 | | that specified costs are paid under specified contracts filed |
11 | | earlier with the Commission. |
12 | | (b) The Director of the Governor's Office of Management and |
13 | | Budget shall not, in connection with the issuance of Bonds, |
14 | | contract with any underwriter, financial advisor, or attorney |
15 | | unless that underwriter, financial advisor, or attorney |
16 | | certifies that the underwriter, financial advisor, or attorney |
17 | | has not and will not pay a contingent fee, whether directly or |
18 | | indirectly, to a third party for having promoted the selection |
19 | | of the underwriter, financial advisor, or attorney for that |
20 | | contract. In the event that the Governor's Office of Management |
21 | | and Budget determines that an underwriter, financial advisor, |
22 | | or attorney has filed a false certification with respect to the |
23 | | payment of contingent fees, the Governor's Office of Management |
24 | | and Budget shall not contract with that underwriter, financial |
25 | | advisor, or attorney, or with any firm employing any person who |
26 | | signed false certifications, for a period of 2 calendar years, |
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1 | | beginning with the date the determination is made. The validity |
2 | | of Bonds issued under such circumstances of violation pursuant |
3 | | to this Section shall not be affected.
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4 | | (Source: P.A. 96-828, eff. 12-2-09.)
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5 | | (30 ILCS 330/9) (from Ch. 127, par. 659)
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6 | | Sec. 9. Conditions for Issuance and Sale of Bonds - |
7 | | Requirements for
Bonds. |
8 | | (a) Except as otherwise provided in this subsection and as |
9 | | provided for in subsection (f) , Bonds shall be issued and sold |
10 | | from time to time, in one or
more series, in such amounts and |
11 | | at such prices as may be directed by the
Governor, upon |
12 | | recommendation by the Director of the
Governor's Office of |
13 | | Management and Budget.
Bonds shall be in such form (either |
14 | | coupon, registered or book entry), in
such denominations, |
15 | | payable within 25 years from their date, subject to such
terms |
16 | | of redemption with or without premium, bear interest payable at
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17 | | such times and at such fixed or variable rate or rates, and be |
18 | | dated
as shall be fixed and determined by the Director of
the
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19 | | Governor's Office of Management and Budget
in the order |
20 | | authorizing the issuance and sale
of any series of Bonds, which |
21 | | order shall be approved by the Governor
and is herein called a |
22 | | "Bond Sale Order"; provided however, that interest
payable at |
23 | | fixed or variable rates shall not exceed that permitted in the
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24 | | Bond Authorization Act, as now or hereafter amended. Bonds |
25 | | shall be
payable at such place or places, within or without the |
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1 | | State of Illinois, and
may be made registrable as to either |
2 | | principal or as to both principal and
interest, as shall be |
3 | | specified in the Bond Sale Order. Bonds may be callable
or |
4 | | subject to purchase and retirement or tender and remarketing as |
5 | | fixed
and determined in the Bond Sale Order. Bonds, other than |
6 | | Bonds issued under Section 3 of this Act for the costs |
7 | | associated with the purchase and implementation of information |
8 | | technology, (i) except for refunding Bonds satisfying the |
9 | | requirements of Section 16 of this Act and sold during fiscal |
10 | | year 2009, 2010, or 2011, must be issued with principal or |
11 | | mandatory redemption amounts in equal amounts, with the first |
12 | | maturity issued occurring within the fiscal year in which the |
13 | | Bonds are issued or within the next succeeding fiscal year and |
14 | | (ii) must mature or be subject to mandatory redemption each |
15 | | fiscal year thereafter up to 25 years, except for refunding |
16 | | Bonds satisfying the requirements of Section 16 of this Act and |
17 | | sold during fiscal year 2009, 2010, or 2011 which must mature |
18 | | or be subject to mandatory redemption each fiscal year |
19 | | thereafter up to 16 years. Bonds issued under Section 3 of this |
20 | | Act for the costs associated with the purchase and |
21 | | implementation of information technology must be issued with |
22 | | principal or mandatory redemption amounts in equal amounts, |
23 | | with the first maturity issued occurring with the fiscal year |
24 | | in which the respective bonds are issued or with the next |
25 | | succeeding fiscal year, with the respective bonds issued |
26 | | maturing or subject to mandatory redemption each fiscal year |
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1 | | thereafter up to 10 years. Notwithstanding any provision of |
2 | | this Act to the contrary, the Bonds authorized by Public Act |
3 | | 96-43 shall be payable within 5 years from their date and must |
4 | | be issued with principal or mandatory redemption amounts in |
5 | | equal amounts, with payment of principal or mandatory |
6 | | redemption beginning in the first fiscal year following the |
7 | | fiscal year in which the Bonds are issued.
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8 | | In the case of any series of Bonds bearing interest at a |
9 | | variable interest
rate ("Variable Rate Bonds"), in lieu of |
10 | | determining the rate or rates at which
such series of Variable |
11 | | Rate Bonds shall bear interest and the price or prices
at which |
12 | | such Variable Rate Bonds shall be initially sold or remarketed |
13 | | (in the
event of purchase and subsequent resale), the Bond Sale |
14 | | Order may provide that
such interest rates and prices may vary |
15 | | from time to time depending on criteria
established in such |
16 | | Bond Sale Order, which criteria may include, without
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17 | | limitation, references to indices or variations in interest |
18 | | rates as may, in
the judgment of a remarketing agent, be |
19 | | necessary to cause Variable Rate Bonds
of such series to be |
20 | | remarketable from time to time at a price equal to their
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21 | | principal amount, and may provide for appointment of a bank, |
22 | | trust company,
investment bank, or other financial institution |
23 | | to serve as remarketing agent
in that connection.
The Bond Sale |
24 | | Order may provide that alternative interest rates or provisions
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25 | | for establishing alternative interest rates, different |
26 | | security or claim
priorities, or different call or amortization |
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1 | | provisions will apply during
such times as Variable Rate Bonds |
2 | | of any series are held by a person providing
credit or |
3 | | liquidity enhancement arrangements for such Bonds as |
4 | | authorized in
subsection (b) of this Section.
The Bond Sale |
5 | | Order may also provide for such variable interest rates to be
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6 | | established pursuant to a process generally known as an auction |
7 | | rate process
and may provide for appointment of one or more |
8 | | financial institutions to serve
as auction agents and |
9 | | broker-dealers in connection with the establishment of
such |
10 | | interest rates and the sale and remarketing of such Bonds.
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11 | | (b) In connection with the issuance of any series of Bonds, |
12 | | the State may
enter into arrangements to provide additional |
13 | | security and liquidity for such
Bonds, including, without |
14 | | limitation, bond or interest rate insurance or
letters of |
15 | | credit, lines of credit, bond purchase contracts, or other
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16 | | arrangements whereby funds are made available to retire or |
17 | | purchase Bonds,
thereby assuring the ability of owners of the |
18 | | Bonds to sell or redeem their
Bonds. The State may enter into |
19 | | contracts and may agree to pay fees to persons
providing such |
20 | | arrangements, but only under circumstances where the Director |
21 | | of
the
Governor's Office of Management and Budget certifies |
22 | | that he or she reasonably expects the total
interest paid or to |
23 | | be paid on the Bonds, together with the fees for the
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24 | | arrangements (being treated as if interest), would not, taken |
25 | | together, cause
the Bonds to bear interest, calculated to their |
26 | | stated maturity, at a rate in
excess of the rate that the Bonds |
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1 | | would bear in the absence of such
arrangements.
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2 | | The State may, with respect to Bonds issued or anticipated |
3 | | to be issued,
participate in and enter into arrangements with |
4 | | respect to interest rate
protection or exchange agreements, |
5 | | guarantees, or financial futures contracts
for the purpose of |
6 | | limiting, reducing, or managing interest rate exposure.
The |
7 | | authority granted under this paragraph, however, shall not |
8 | | increase the principal amount of Bonds authorized to be issued |
9 | | by law. The arrangements may be executed and delivered by the |
10 | | Director
of the
Governor's Office of Management and Budget on |
11 | | behalf of the State. Net payments for such
arrangements shall |
12 | | constitute interest on the Bonds and shall be paid from the
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13 | | General Obligation Bond Retirement and Interest Fund. The |
14 | | Director of the
Governor's Office of Management and Budget |
15 | | shall at least annually certify to the Governor and
the
State |
16 | | Comptroller his or her estimate of the amounts of such net |
17 | | payments to
be included in the calculation of interest required |
18 | | to be paid by the State.
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19 | | (c) Prior to the issuance of any Variable Rate Bonds |
20 | | pursuant to
subsection (a), the Director of the
Governor's |
21 | | Office of Management and Budget shall adopt an
interest rate |
22 | | risk management policy providing that the amount of the State's
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23 | | variable rate exposure with respect to Bonds shall not exceed |
24 | | 20%. This policy
shall remain in effect while any Bonds are |
25 | | outstanding and the issuance of
Bonds
shall be subject to the |
26 | | terms of such policy. The terms of this policy may be
amended |
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1 | | from time to time by the Director of the
Governor's Office of |
2 | | Management and Budget but in no
event shall any amendment cause |
3 | | the permitted level of the State's variable
rate exposure with |
4 | | respect to Bonds to exceed 20%.
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5 | | (d) "Build America Bonds" in this Section means Bonds |
6 | | authorized by Section 54AA of the Internal Revenue Code of |
7 | | 1986, as amended ("Internal Revenue Code"), and bonds issued |
8 | | from time to time to refund or continue to refund "Build |
9 | | America Bonds". |
10 | | (e) Notwithstanding any other provision of this Section, |
11 | | Qualified School Construction Bonds shall be issued and sold |
12 | | from time to time, in one or more series, in such amounts and |
13 | | at such prices as may be directed by the Governor, upon |
14 | | recommendation by the Director of the Governor's Office of |
15 | | Management and Budget. Qualified School Construction Bonds |
16 | | shall be in such form (either coupon, registered or book |
17 | | entry), in such denominations, payable within 25 years from |
18 | | their date, subject to such terms of redemption with or without |
19 | | premium, and if the Qualified School Construction Bonds are |
20 | | issued with a supplemental coupon, bear interest payable at |
21 | | such times and at such fixed or variable rate or rates, and be |
22 | | dated as shall be fixed and determined by the Director of the |
23 | | Governor's Office of Management and Budget in the order |
24 | | authorizing the issuance and sale of any series of Qualified |
25 | | School Construction Bonds, which order shall be approved by the |
26 | | Governor and is herein called a "Bond Sale Order"; except that |
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1 | | interest payable at fixed or variable rates, if any, shall not |
2 | | exceed that permitted in the Bond Authorization Act, as now or |
3 | | hereafter amended. Qualified School Construction Bonds shall |
4 | | be payable at such place or places, within or without the State |
5 | | of Illinois, and may be made registrable as to either principal |
6 | | or as to both principal and interest, as shall be specified in |
7 | | the Bond Sale Order. Qualified School Construction Bonds may be |
8 | | callable or subject to purchase and retirement or tender and |
9 | | remarketing as fixed and determined in the Bond Sale Order. |
10 | | Qualified School Construction Bonds must be issued with |
11 | | principal or mandatory redemption amounts or sinking fund |
12 | | payments into the General Obligation Bond Retirement and |
13 | | Interest Fund (or subaccount therefor) in equal amounts, with |
14 | | the first maturity issued, mandatory redemption payment or |
15 | | sinking fund payment occurring within the fiscal year in which |
16 | | the Qualified School Construction Bonds are issued or within |
17 | | the next succeeding fiscal year, with Qualified School |
18 | | Construction Bonds issued maturing or subject to mandatory |
19 | | redemption or with sinking fund payments thereof deposited each |
20 | | fiscal year thereafter up to 25 years. Sinking fund payments |
21 | | set forth in this subsection shall be permitted only to the |
22 | | extent authorized in Section 54F of the Internal Revenue Code |
23 | | or as otherwise determined by the Director of the Governor's |
24 | | Office of Management and Budget. "Qualified School |
25 | | Construction Bonds" in this subsection means Bonds authorized |
26 | | by Section 54F of the Internal Revenue Code and for bonds |
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1 | | issued from time to time to refund or continue to refund such |
2 | | "Qualified School Construction Bonds". |
3 | | (f) Notwithstanding any other provision of this Section, |
4 | | State General Obligation Restructuring Bonds shall be issued |
5 | | and sold from time to time, in one or more series, in such |
6 | | amounts and at such prices as may be directed by the Governor, |
7 | | upon recommendation by the Director of the Governor's Office of |
8 | | Management and Budget. State General Obligation Restructuring |
9 | | Bonds shall be in such form, either coupon, registered or book |
10 | | entry, in such denominations, payable within 15 years from |
11 | | their date, subject to the following terms of redemption with |
12 | | or without premium and in accordance with the following |
13 | | schedule, except the following amounts shall be prorated if |
14 | | less than the total additional amount of State General |
15 | | Obligation Restructuring Bonds authorized by this amendatory |
16 | | Act of the 97th General Assembly are issued: |
17 | | For fiscal year 2012, $100,000,000; |
18 | | For fiscal year 2013, $100,000,000; |
19 | | For fiscal year 2014, $200,000,000; |
20 | | For fiscal year 2015, $450,000,000; |
21 | | For fiscal years 2016 through 2025, $765,000,000; and |
22 | | For fiscal year 2026, $250,000,000. |
23 | | The State General Obligation Restructuring Bonds shall bear |
24 | | interest payable at such times and at such fixed or variable |
25 | | rate or rates, and be dated as shall be fixed and determined by |
26 | | the Director of the Governor's Office of Management and Budget |
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1 | | in the order authorizing the issuance and sale of any series of |
2 | | State General Obligation Restructuring Bonds, which order |
3 | | shall be approved by the Governor and is herein called a "Bond |
4 | | Sale Order"; provided however, that interest payable at fixed |
5 | | or variable rates shall not exceed that permitted in the Bond |
6 | | Authorization Act, as now or hereafter amended. State General |
7 | | Obligation Restructuring Bonds shall be payable at such place |
8 | | or places, within or without the State of Illinois, and may be |
9 | | made registrable as to either principal or as to both principal |
10 | | and interest, as shall be specified in the Bond Sale Order. |
11 | | State General Obligation Restructuring Bonds may be callable or |
12 | | subject to purchase and retirement or tender and remarketing as |
13 | | fixed and determined in the Bond Sale Order. |
14 | | (Source: P.A. 96-18, eff. 6-26-09; 96-37, eff. 7-13-09; 96-43, |
15 | | eff. 7-15-09; 96-828, eff. 12-2-09.)
|
16 | | (30 ILCS 330/12) (from Ch. 127, par. 662)
|
17 | | Sec. 12. Allocation of Proceeds from Sale of Bonds.
|
18 | | (a) Proceeds from the sale of Bonds, authorized by Section |
19 | | 3 of this Act,
shall be deposited in the separate fund known as |
20 | | the Capital Development Fund.
|
21 | | (b) Proceeds from the sale of Bonds, authorized by |
22 | | paragraph (a) of Section
4 of this Act, shall be deposited in |
23 | | the separate fund known as the
Transportation Bond, Series A |
24 | | Fund.
|
25 | | (c) Proceeds from the sale of Bonds, authorized by |
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1 | | paragraphs (b) and (c)
of Section 4 of this Act, shall be |
2 | | deposited in the separate fund known
as the Transportation |
3 | | Bond, Series B Fund.
|
4 | | (c-1) Proceeds from the sale of Bonds, authorized by |
5 | | paragraph (d) of Section 4 of this Act, shall be deposited into |
6 | | the Transportation Bond Series D Fund, which is hereby created. |
7 | | (d) Proceeds from the sale of Bonds, authorized by Section |
8 | | 5 of this
Act, shall be deposited in the separate fund known as |
9 | | the School Construction
Fund.
|
10 | | (e) Proceeds from the sale of Bonds, authorized by Section |
11 | | 6 of this Act,
shall be deposited in the separate fund known as |
12 | | the Anti-Pollution Fund.
|
13 | | (f) Proceeds from the sale of Bonds, authorized by Section |
14 | | 7 of this Act,
shall be deposited in the separate fund known as |
15 | | the Coal Development Fund.
|
16 | | (f-2) Proceeds from the sale of Bonds, authorized by |
17 | | Section 7.2 of this
Act, shall be deposited as set forth in |
18 | | Section 7.2.
|
19 | | (f-5) Proceeds from the sale of Bonds, authorized by |
20 | | Section 7.5 of this
Act, shall be deposited as set forth in |
21 | | Section 7.5. |
22 | | (f-6) Proceeds from the sale of Bonds, authorized by |
23 | | Section 7.6 of this Act, shall be deposited as set forth in |
24 | | Section 7.6.
|
25 | | (g) Proceeds from the sale of Bonds, authorized by Section |
26 | | 8 of this Act,
shall be deposited in
the Capital Development |
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1 | | Fund.
|
2 | | (h) Subsequent to the issuance of any Bonds for the |
3 | | purposes described
in Sections 2 through 8 of this Act, the |
4 | | Governor and the Director of the
Governor's Office of |
5 | | Management and Budget may provide for the reallocation of |
6 | | unspent proceeds
of such Bonds to any other purposes authorized |
7 | | under said Sections of this
Act, subject to the limitations on |
8 | | aggregate principal amounts contained
therein. Upon any such |
9 | | reallocation, such unspent proceeds shall be
transferred to the |
10 | | appropriate funds as determined by reference to
paragraphs (a) |
11 | | through (g) of this Section.
|
12 | | (Source: P.A. 96-36, eff. 7-13-09.)
|
13 | | (30 ILCS 330/13) (from Ch. 127, par. 663)
|
14 | | Sec. 13. Appropriation of Proceeds from Sale of Bonds.
|
15 | | (a) At all times, the proceeds from the sale of Bonds |
16 | | issued pursuant
to this Act are subject to appropriation by the |
17 | | General Assembly and,
except as provided in Sections Section |
18 | | 7.2 and 7.6 , may be obligated or expended only
with the written |
19 | | approval of the Governor, in such amounts, at such times,
and |
20 | | for such purposes as the respective
State agencies, as defined |
21 | | in Section 1-7 of the Illinois State Auditing
Act, as amended, |
22 | | deem necessary or desirable for the specific purposes
|
23 | | contemplated in Sections 2 through 8 of this Act.
|
24 | | (b) Proceeds from the sale of Bonds for the purpose of |
25 | | development of
coal and alternative forms of energy shall be |
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1 | | expended in such amounts and
at such times as the Department of |
2 | | Commerce and Economic Opportunity, with the
advice and |
3 | | recommendation of the Illinois Coal Development Board for coal
|
4 | | development projects, may deem necessary and desirable for the |
5 | | specific
purpose contemplated by Section 7 of this Act. In |
6 | | considering the approval
of projects to be funded, the |
7 | | Department of Commerce and
Economic Opportunity shall give
|
8 | | special
consideration to projects designed to remove sulfur and |
9 | | other pollutants in
the preparation and utilization of coal, |
10 | | and in the use and operation of
electric utility generating |
11 | | plants and industrial facilities which utilize
Illinois coal as |
12 | | their primary source of fuel.
|
13 | | (c) Except as directed in subsection (c-1) or (c-2), any |
14 | | monies received by any officer or employee of the state
|
15 | | representing a reimbursement of expenditures previously paid |
16 | | from general
obligation bond proceeds shall be deposited into |
17 | | the General Obligation
Bond Retirement and Interest Fund |
18 | | authorized in Section 14 of this Act.
|
19 | | (c-1) Any money received by the Department of |
20 | | Transportation as reimbursement for expenditures for high |
21 | | speed rail purposes pursuant to appropriations from the |
22 | | Transportation Bond, Series B Fund for (i) CREATE (Chicago |
23 | | Region Environmental and Transportation Efficiency), (ii) High |
24 | | Speed Rail, or (iii) AMTRAK projects authorized by the federal |
25 | | government under the provisions of the American Recovery and |
26 | | Reinvestment Act of 2009 or the Safe Accountable Flexible |
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1 | | Efficient Transportation Equity Act—A Legacy for Users |
2 | | (SAFETEA-LU), or any successor federal transportation |
3 | | authorization Act, shall be deposited into the Federal High |
4 | | Speed Rail Trust Fund. |
5 | | (c-2) Any money received by the Department of |
6 | | Transportation as reimbursement for expenditures for transit |
7 | | capital purposes pursuant to appropriations from the |
8 | | Transportation Bond, Series B Fund for projects authorized by |
9 | | the federal government under the provisions of the American |
10 | | Recovery and Reinvestment Act of 2009 or the Safe Accountable |
11 | | Flexible Efficient Transportation Equity Act—A Legacy for |
12 | | Users (SAFETEA-LU), or any successor federal transportation |
13 | | authorization Act, shall be deposited into the Federal Mass |
14 | | Transit Trust Fund. |
15 | | (Source: P.A. 96-1488, eff. 12-30-10.)
|
16 | | (30 ILCS 330/14) (from Ch. 127, par. 664)
|
17 | | Sec. 14. Repayment.
|
18 | | (a) To provide for the manner of repayment of Bonds, the |
19 | | Governor shall
include an appropriation in each annual State |
20 | | Budget of monies in such amount
as shall be necessary and |
21 | | sufficient, for the period covered by such budget,
to pay the |
22 | | interest, as it shall accrue, on all Bonds issued under this |
23 | | Act,
to pay and discharge the principal of such Bonds as shall, |
24 | | by their terms,
fall due during such period, to pay a premium, |
25 | | if any, on Bonds to be
redeemed prior to the maturity date, and |
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1 | | to pay sinking fund payments in connection with Qualified |
2 | | School Construction Bonds authorized by subsection (e) of |
3 | | Section 9. Amounts included in such appropriations
for the |
4 | | payment of interest on variable rate bonds shall be the maximum |
5 | | amounts
of interest that may be payable for the period covered |
6 | | by the budget, after
taking into account any credits permitted |
7 | | in the related indenture or other
instrument against the amount |
8 | | of such interest required to be appropriated for
such period. |
9 | | Amounts included in such appropriations for the payment of
|
10 | | interest shall include the amounts certified by the Director of |
11 | | the
Governor's Office of Management and Budget under subsection |
12 | | (b) of Section 9 of this Act.
|
13 | | (b) A separate fund in the State Treasury called the |
14 | | "General Obligation
Bond Retirement and Interest Fund" is |
15 | | hereby created.
|
16 | | (c) The General Assembly shall annually make |
17 | | appropriations to pay the
principal of, interest on, and |
18 | | premium, if any, on Bonds sold under this
Act from the General |
19 | | Obligation Bond Retirement and Interest Fund.
Amounts included |
20 | | in such appropriations for the payment of interest on
variable |
21 | | rate bonds shall be the maximum amounts of interest that may be
|
22 | | payable during the fiscal year, after taking into account any |
23 | | credits
permitted in the related indenture or other instrument |
24 | | against the amount
of such interest required to be appropriated |
25 | | for such period. Amounts included
in such appropriations for |
26 | | the payment of interest shall include the amounts
certified by |
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1 | | the Director of the
Governor's Office of Management and Budget |
2 | | under subsection (b) of
Section 9 of this Act.
|
3 | | If for any reason there are insufficient funds in either |
4 | | the General
Revenue Fund , or the Road Fund , or the State |
5 | | General Obligation Restructuring Bond Debt Service Fund to make
|
6 | | transfers to the General Obligation Bond Retirement and |
7 | | Interest Fund as
required by Section 15 of this Act, or if for |
8 | | any reason the General Assembly
fails to make appropriations |
9 | | sufficient to pay the principal of, interest on,
and premium, |
10 | | if any, on the Bonds, as the same by their terms shall become |
11 | | due,
this Act shall constitute an irrevocable and continuing |
12 | | appropriation of all
amounts necessary for that purpose, and |
13 | | the irrevocable and continuing
authority for and direction to |
14 | | the State Treasurer and the Comptroller to make
the necessary |
15 | | transfers, as directed by the Governor, out of and |
16 | | disbursements
from the revenues and funds of the
State.
|
17 | | (d) If, because of insufficient funds in either the General |
18 | | Revenue Fund , or the Road Fund, or the State General Obligation |
19 | | Restructuring Bond Debt Service Fund, monies have been |
20 | | transferred to the General Obligation
Bond Retirement and |
21 | | Interest Fund, as required by subsection (c) of this
Section, |
22 | | this Act shall constitute the irrevocable and continuing |
23 | | authority
for and direction to the State Treasurer and |
24 | | Comptroller to reimburse these
funds of the State from the |
25 | | General Revenue Fund , or the Road Fund, or the State General |
26 | | Obligation Restructuring Bond Debt Service Fund, as
|
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1 | | appropriate, by transferring, at such times and in such |
2 | | amounts, as directed by
the Governor, an amount to these funds |
3 | | equal to that transferred from them.
|
4 | | (Source: P.A. 96-828, eff. 12-2-09.)
|
5 | | (30 ILCS 330/15) (from Ch. 127, par. 665)
|
6 | | Sec. 15. Computation of Principal and Interest; transfers.
|
7 | | (a) Upon each delivery of Bonds authorized to be issued |
8 | | under this Act,
the Comptroller shall compute and certify to |
9 | | the Treasurer the total amount
of principal of, interest on, |
10 | | and premium, if any, on Bonds issued that will
be payable in |
11 | | order to retire such Bonds, the amount of principal of,
|
12 | | interest on and premium, if any, on such Bonds that will be |
13 | | payable on each
payment date according to the tenor of such |
14 | | Bonds during the then current and
each succeeding fiscal year, |
15 | | and the amount of sinking fund payments needed to be deposited |
16 | | in connection with Qualified School Construction Bonds |
17 | | authorized by subsection (e) of Section 9.
With respect to the |
18 | | interest payable on variable rate bonds, such
certifications |
19 | | shall be calculated at the maximum rate of interest that
may be |
20 | | payable during the fiscal year, after taking into account any |
21 | | credits
permitted in the related indenture or other instrument |
22 | | against the amount
of such interest required to be appropriated |
23 | | for such period pursuant to
subsection (c) of Section 14 of |
24 | | this Act. With respect to the interest
payable, such |
25 | | certifications shall include the amounts certified by the
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1 | | Director of the
Governor's Office of Management and Budget |
2 | | under subsection (b) of Section 9 of
this Act.
|
3 | | On or before the last day of each month the State Treasurer |
4 | | and Comptroller
shall transfer from (1) the Road Fund with |
5 | | respect to Bonds issued under
paragraph (a) of Section 4 of |
6 | | this Act or Bonds issued for the purpose of
refunding such |
7 | | bonds, (2) the State General Obligation Restructuring Bond Debt |
8 | | Service Fund with respect to Bonds issued under Section 7.6 of |
9 | | this Act or Bonds issued for the purpose of refunding such |
10 | | bonds, and (3) from (2) the General
Revenue Fund, with respect |
11 | | to all other Bonds issued under this Act, to the
General |
12 | | Obligation Bond Retirement and Interest Fund an amount |
13 | | sufficient to
pay the aggregate of the principal of, interest |
14 | | on, and premium, if any, on
Bonds payable, by their terms on |
15 | | the next payment date divided by the number of
full calendar |
16 | | months between the date of such Bonds and the first such |
17 | | payment
date, and thereafter, divided by the number of months |
18 | | between each succeeding
payment date after the first. Such |
19 | | computations and transfers shall be
made for each series of |
20 | | Bonds issued and delivered. Interest payable on
variable rate |
21 | | bonds shall be calculated at the maximum rate of interest that
|
22 | | may be payable for the relevant period, after taking into |
23 | | account any credits
permitted in the related indenture or other |
24 | | instrument against the amount of
such interest required to be |
25 | | appropriated for such period pursuant to
subsection (c) of |
26 | | Section 14 of this Act. Computations of interest shall
include |
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1 | | the amounts certified by the Director of the
Governor's Office |
2 | | of Management and Budget
under subsection (b) of Section 9 of |
3 | | this Act. Interest for which moneys
have already been deposited |
4 | | into the capitalized interest account within the
General |
5 | | Obligation Bond Retirement and Interest Fund shall not be |
6 | | included
in the calculation of the amounts to be transferred |
7 | | under this subsection. Notwithstanding any other provision in |
8 | | this Section, the transfer provisions provided in this |
9 | | paragraph shall not apply to transfers made in fiscal year 2010 |
10 | | with respect to Bonds issued in fiscal year 2010 pursuant to |
11 | | Section 7.2 of this Act. In the case of transfers made in |
12 | | fiscal year 2010 with respect to the Bonds issued in fiscal |
13 | | year 2010 pursuant to Section 7.2 of this Act, on or before the |
14 | | 15th day of the month prior to the required debt service |
15 | | payment, the State Treasurer and Comptroller shall transfer |
16 | | from the General Revenue Fund to the General Obligation Bond |
17 | | Retirement and Interest Fund an amount sufficient to pay the |
18 | | aggregate of the principal of, interest on, and premium, if |
19 | | any, on the Bonds payable in that next month.
|
20 | | The transfer of monies herein and above directed is not |
21 | | required if monies
in the General Obligation Bond Retirement |
22 | | and Interest Fund are more than
the amount otherwise to be |
23 | | transferred as herein above provided, and if the
Governor or |
24 | | his authorized representative notifies the State Treasurer and
|
25 | | Comptroller of such fact in writing.
|
26 | | (b) After the effective date of this Act, the balance of, |
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1 | | and monies
directed to be included in the Capital Development |
2 | | Bond Retirement and
Interest Fund, Anti-Pollution Bond |
3 | | Retirement and Interest Fund,
Transportation Bond, Series A |
4 | | Retirement and Interest Fund, Transportation
Bond, Series B |
5 | | Retirement and Interest Fund, and Coal Development Bond
|
6 | | Retirement and Interest Fund shall be transferred to and |
7 | | deposited in the
General Obligation Bond Retirement and |
8 | | Interest Fund. This Fund shall be
used to make debt service |
9 | | payments on the State's general obligation Bonds
heretofore |
10 | | issued which are now outstanding and payable from the Funds |
11 | | herein
listed as well as on Bonds issued under this Act.
|
12 | | (c) The unused portion of federal funds received for a |
13 | | capital
facilities project, as authorized by Section 3 of this |
14 | | Act, for which
monies from the Capital Development Fund have |
15 | | been expended shall be
deposited upon completion of the project |
16 | | in the General Obligation Bond
Retirement and Interest Fund. |
17 | | Any federal funds received as reimbursement
for the completed |
18 | | construction of a capital facilities project, as
authorized by |
19 | | Section 3 of this Act, for which monies from the Capital
|
20 | | Development Fund have been expended shall be deposited in the |
21 | | General
Obligation Bond Retirement and Interest Fund.
|
22 | | (Source: P.A. 96-43, eff. 7-15-09; 96-828, eff. 12-2-09.)
|
23 | | Section 99. Effective date. This Act takes effect upon |
24 | | becoming law.
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| 1 | |
INDEX
| 2 | |
Statutes amended in order of appearance
| | 3 | | 30 ILCS 105/5.786 new | | | 4 | | 30 ILCS 105/5.787 new | | | 5 | | 30 ILCS 105/6z-85 new | | | 6 | | 30 ILCS 105/6z-86 new | | | 7 | | 30 ILCS 105/6z-87 new | | | 8 | | 30 ILCS 330/2 | from Ch. 127, par. 652 | | 9 | | 30 ILCS 330/2.5 | | | 10 | | 30 ILCS 330/7.6 new | | | 11 | | 30 ILCS 330/8 | from Ch. 127, par. 658 | | 12 | | 30 ILCS 330/9 | from Ch. 127, par. 659 | | 13 | | 30 ILCS 330/12 | from Ch. 127, par. 662 | | 14 | | 30 ILCS 330/13 | from Ch. 127, par. 663 | | 15 | | 30 ILCS 330/14 | from Ch. 127, par. 664 | | 16 | | 30 ILCS 330/15 | from Ch. 127, par. 665 |
|
|