Full Text of SB1609 96th General Assembly
SB1609ham002 96TH GENERAL ASSEMBLY
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Rep. Jack D. Franks
Filed: 5/30/2009
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| AMENDMENT TO SENATE BILL 1609
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| AMENDMENT NO. ______. Amend Senate Bill 1609, AS AMENDED, | 3 |
| by replacing everything after the enacting clause with the | 4 |
| following:
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| "Section 5. The General Obligation Bond Act is amended by | 6 |
| changing Sections 9, 11, and 16 as follows:
| 7 |
| (30 ILCS 330/9) (from Ch. 127, par. 659)
| 8 |
| Sec. 9. Conditions for Issuance and Sale of Bonds - | 9 |
| Requirements for
Bonds. | 10 |
| (a) Except as otherwise provided in this subsection, Bonds | 11 |
| shall be issued and sold from time to time, in one or
more | 12 |
| series, in such amounts and at such prices as may be directed | 13 |
| by the
Governor, upon recommendation by the Director of the
| 14 |
| Governor's Office of Management and Budget.
Bonds shall be in | 15 |
| such form (either coupon, registered or book entry), in
such | 16 |
| denominations, payable within 25 years from their date, subject |
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| to such
terms of redemption with or without premium, bear | 2 |
| interest payable at
such times and at such fixed or variable | 3 |
| rate or rates, and be dated
as shall be fixed and determined by | 4 |
| the Director of
the
Governor's Office of Management and Budget
| 5 |
| in the order authorizing the issuance and sale
of any series of | 6 |
| Bonds, which order shall be approved by the Governor
and is | 7 |
| herein called a "Bond Sale Order"; provided however, that | 8 |
| interest
payable at fixed or variable rates shall not exceed | 9 |
| that permitted in the
Bond Authorization Act, as now or | 10 |
| hereafter amended. Bonds shall be
payable at such place or | 11 |
| places, within or without the State of Illinois, and
may be | 12 |
| made registrable as to either principal or as to both principal | 13 |
| and
interest, as shall be specified in the Bond Sale Order. | 14 |
| Bonds may be callable
or subject to purchase and retirement or | 15 |
| tender and remarketing as fixed
and determined in the Bond Sale | 16 |
| Order. Bonds (i) except for refunding Bonds satisfying the | 17 |
| requirements of Section 16 of this Act and sold during fiscal | 18 |
| year 2009, 2010, or 2011, must be issued with principal or | 19 |
| mandatory redemption amounts in equal amounts, with the first | 20 |
| maturity issued occurring within the fiscal year in which the | 21 |
| Bonds are issued or within the next succeeding fiscal year and | 22 |
| (ii) must mature or be , with Bonds issued maturing or subject | 23 |
| to mandatory redemption each fiscal year thereafter up to 25 | 24 |
| years , except for refunding Bonds satisfying the requirements | 25 |
| of Section 16 of this Act and sold during fiscal year 2009, | 26 |
| 2010, or 2011 which must mature or be subject to mandatory |
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| redemption each fiscal year thereafter up to 16 years .
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| In the case of any series of Bonds bearing interest at a | 3 |
| variable interest
rate ("Variable Rate Bonds"), in lieu of | 4 |
| determining the rate or rates at which
such series of Variable | 5 |
| Rate Bonds shall bear interest and the price or prices
at which | 6 |
| such Variable Rate Bonds shall be initially sold or remarketed | 7 |
| (in the
event of purchase and subsequent resale), the Bond Sale | 8 |
| Order may provide that
such interest rates and prices may vary | 9 |
| from time to time depending on criteria
established in such | 10 |
| Bond Sale Order, which criteria may include, without
| 11 |
| limitation, references to indices or variations in interest | 12 |
| rates as may, in
the judgment of a remarketing agent, be | 13 |
| necessary to cause Variable Rate Bonds
of such series to be | 14 |
| remarketable from time to time at a price equal to their
| 15 |
| principal amount, and may provide for appointment of a bank, | 16 |
| trust company,
investment bank, or other financial institution | 17 |
| to serve as remarketing agent
in that connection.
The Bond Sale | 18 |
| Order may provide that alternative interest rates or provisions
| 19 |
| for establishing alternative interest rates, different | 20 |
| security or claim
priorities, or different call or amortization | 21 |
| provisions will apply during
such times as Variable Rate Bonds | 22 |
| of any series are held by a person providing
credit or | 23 |
| liquidity enhancement arrangements for such Bonds as | 24 |
| authorized in
subsection (b) of this Section.
The Bond Sale | 25 |
| Order may also provide for such variable interest rates to be
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| established pursuant to a process generally known as an auction |
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| rate process
and may provide for appointment of one or more | 2 |
| financial institutions to serve
as auction agents and | 3 |
| broker-dealers in connection with the establishment of
such | 4 |
| interest rates and the sale and remarketing of such Bonds.
| 5 |
| (b) In connection with the issuance of any series of Bonds, | 6 |
| the State may
enter into arrangements to provide additional | 7 |
| security and liquidity for such
Bonds, including, without | 8 |
| limitation, bond or interest rate insurance or
letters of | 9 |
| credit, lines of credit, bond purchase contracts, or other
| 10 |
| arrangements whereby funds are made available to retire or | 11 |
| purchase Bonds,
thereby assuring the ability of owners of the | 12 |
| Bonds to sell or redeem their
Bonds. The State may enter into | 13 |
| contracts and may agree to pay fees to persons
providing such | 14 |
| arrangements, but only under circumstances where the Director | 15 |
| of
the
Governor's Office of Management and Budget certifies | 16 |
| that he or she reasonably expects the total
interest paid or to | 17 |
| be paid on the Bonds, together with the fees for the
| 18 |
| arrangements (being treated as if interest), would not, taken | 19 |
| together, cause
the Bonds to bear interest, calculated to their | 20 |
| stated maturity, at a rate in
excess of the rate that the Bonds | 21 |
| would bear in the absence of such
arrangements.
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| The State may, with respect to Bonds issued or anticipated | 23 |
| to be issued,
participate in and enter into arrangements with | 24 |
| respect to interest rate
protection or exchange agreements, | 25 |
| guarantees, or financial futures contracts
for the purpose of | 26 |
| limiting, reducing, or managing interest rate exposure.
The |
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| authority granted under this paragraph, however, shall not | 2 |
| increase the principal amount of Bonds authorized to be issued | 3 |
| by law. The arrangements may be executed and delivered by the | 4 |
| Director
of the
Governor's Office of Management and Budget on | 5 |
| behalf of the State. Net payments for such
arrangements shall | 6 |
| constitute interest on the Bonds and shall be paid from the
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| General Obligation Bond Retirement and Interest Fund. The | 8 |
| Director of the
Governor's Office of Management and Budget | 9 |
| shall at least annually certify to the Governor and
the
State | 10 |
| Comptroller his or her estimate of the amounts of such net | 11 |
| payments to
be included in the calculation of interest required | 12 |
| to be paid by the State.
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| (c) Prior to the issuance of any Variable Rate Bonds | 14 |
| pursuant to
subsection (a), the Director of the
Governor's | 15 |
| Office of Management and Budget shall adopt an
interest rate | 16 |
| risk management policy providing that the amount of the State's
| 17 |
| variable rate exposure with respect to Bonds shall not exceed | 18 |
| 20%. This policy
shall remain in effect while any Bonds are | 19 |
| outstanding and the issuance of
Bonds
shall be subject to the | 20 |
| terms of such policy. The terms of this policy may be
amended | 21 |
| from time to time by the Director of the
Governor's Office of | 22 |
| Management and Budget but in no
event shall any amendment cause | 23 |
| the permitted level of the State's variable
rate exposure with | 24 |
| respect to Bonds to exceed 20%.
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| (Source: P.A. 92-16, eff. 6-28-01; 93-9, eff. 6-3-03; 93-666, | 26 |
| eff. 3-5-04; 93-839, eff. 7-30-04.)
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| (30 ILCS 330/11) (from Ch. 127, par. 661)
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| Sec. 11. Sale of Bonds. Except as otherwise provided in | 3 |
| this Section,
Bonds shall be sold from time to time pursuant to
| 4 |
| notice of sale and public bid or by negotiated sale
in such | 5 |
| amounts and at such
times as is directed by the Governor, upon | 6 |
| recommendation by the Director of
the
Governor's Office of | 7 |
| Management and Budget. At least 25%, based on total principal | 8 |
| amount, of all Bonds issued each fiscal year shall be sold | 9 |
| pursuant to notice of sale and public bid. At all times during | 10 |
| each fiscal year, no more than 75%, based on total principal | 11 |
| amount, of the Bonds issued each fiscal year, shall have been | 12 |
| sold by negotiated sale. Failure to satisfy the requirements in | 13 |
| the preceding 2 sentences shall not affect the validity of any | 14 |
| previously issued Bonds ; and further provided that refunding | 15 |
| Bonds satisfying the requirements of Section 16 of this Act and | 16 |
| sold during fiscal year 2009, 2010, or 2011 shall not be | 17 |
| subject to the requirements in the preceding 2 sentences .
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| If
any Bonds, including refunding Bonds, are to be sold by | 19 |
| negotiated
sale, the
Director of the
Governor's Office of | 20 |
| Management and Budget
shall comply with the
competitive request | 21 |
| for proposal process set forth in the Illinois
Procurement Code | 22 |
| and all other applicable requirements of that Code.
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| If Bonds are to be sold pursuant to notice of sale and | 24 |
| public bid, the
Director of the
Governor's Office of Management | 25 |
| and Budget shall, from time to time, as Bonds are to be sold, |
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| advertise
the sale of the Bonds in at least 2 daily newspapers, | 2 |
| one of which is
published in the City of Springfield and one in | 3 |
| the City of Chicago. The sale
of the Bonds shall also be
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| advertised in the volume of the Illinois Procurement Bulletin | 5 |
| that is
published by the Department of Central Management | 6 |
| Services. Each of
the advertisements for
proposals shall be | 7 |
| published once at least
10 days prior to the date fixed
for the | 8 |
| opening of the bids. The Director of the
Governor's Office of | 9 |
| Management and Budget may
reschedule the date of sale upon the | 10 |
| giving of such additional notice as the
Director deems adequate | 11 |
| to inform prospective bidders of
such change; provided, | 12 |
| however, that all other conditions of the sale shall
continue | 13 |
| as originally advertised.
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| Executed Bonds shall, upon payment therefor, be delivered | 15 |
| to the purchaser,
and the proceeds of Bonds shall be paid into | 16 |
| the State Treasury as directed by
Section 12 of this Act.
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| (Source: P.A. 93-839, eff. 7-30-04.)
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| (30 ILCS 330/16) (from Ch. 127, par. 666)
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| Sec. 16. Refunding Bonds. The State of Illinois is | 20 |
| authorized to issue,
sell, and provide for the retirement of | 21 |
| General Obligation Bonds of the State
of Illinois in the amount | 22 |
| of $4,839,025,000 $2,839,025,000 , at any time and
from time to | 23 |
| time outstanding, for the purpose of refunding
any State of | 24 |
| Illinois general obligation Bonds then outstanding, including
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| the payment of any redemption premium thereon, any reasonable |
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| expenses of
such refunding, any interest accrued or to accrue | 2 |
| to the earliest
or any subsequent date of redemption or | 3 |
| maturity of such outstanding
Bonds and any interest to accrue | 4 |
| to the first interest payment on the
refunding Bonds; provided | 5 |
| that all non-refunding Bonds in an issue that includes
| 6 |
| refunding Bonds shall mature no later
than the final maturity | 7 |
| date of Bonds being refunded; provided that no refunding Bonds | 8 |
| shall be offered for sale unless the net present value of debt | 9 |
| service savings to be achieved by the issuance of the refunding | 10 |
| Bonds is 3% or more of the principal amount of the refunding | 11 |
| Bonds to be issued; and further provided that , except for | 12 |
| refunding Bonds sold in fiscal year 2009, 2010, or 2011, the | 13 |
| maturities of the refunding Bonds shall not extend beyond the | 14 |
| maturities of the Bonds they refund, so that for each fiscal | 15 |
| year in the maturity schedule of a particular issue of | 16 |
| refunding Bonds, the total amount of refunding principal | 17 |
| maturing and redemption amounts due in that fiscal year and all | 18 |
| prior fiscal years in that schedule shall be greater than or | 19 |
| equal to the total amount of refunded principal and redemption | 20 |
| amounts that had been due over that year and all prior fiscal | 21 |
| years prior to the refunding.
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| The Governor shall notify the State Treasurer and
| 23 |
| Comptroller of such refunding. The proceeds received from the | 24 |
| sale
of refunding Bonds shall be used for the retirement at | 25 |
| maturity or
redemption of such outstanding Bonds on any | 26 |
| maturity or redemption date
and, pending such use, shall be |
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| placed in escrow, subject to such terms and
conditions as shall | 2 |
| be provided for in the Bond Sale Order relating to the
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| Refunding Bonds. Proceeds not needed for deposit in an escrow | 4 |
| account shall
be deposited in the General Obligation Bond | 5 |
| Retirement and Interest Fund.
This Act shall constitute an | 6 |
| irrevocable and continuing appropriation of all
amounts | 7 |
| necessary to establish an escrow account for the purpose of | 8 |
| refunding
outstanding general obligation Bonds and to pay the | 9 |
| reasonable expenses of such
refunding and of the issuance and | 10 |
| sale of the refunding Bonds. Any such
escrowed proceeds may be | 11 |
| invested and reinvested
in direct obligations of the United | 12 |
| States of America, maturing at such
time or times as shall be | 13 |
| appropriate to assure the
prompt payment, when due, of the | 14 |
| principal of and interest and redemption
premium, if any,
on | 15 |
| the refunded Bonds. After the terms of the escrow have been | 16 |
| fully
satisfied, any remaining balance of such proceeds and | 17 |
| interest, income and
profits earned or realized on the | 18 |
| investments thereof shall be paid into
the General Revenue | 19 |
| Fund. The liability of the State upon the Bonds shall
continue, | 20 |
| provided that the holders thereof shall thereafter be entitled | 21 |
| to
payment only out of the moneys deposited in the escrow | 22 |
| account.
| 23 |
| Except as otherwise herein provided in this Section, such | 24 |
| refunding Bonds
shall in all other respects be subject to the | 25 |
| terms and conditions of this Act.
| 26 |
| (Source: P.A. 93-839, eff. 7-30-04.)
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| Section 10. The Build Illinois Bond Act is amended by | 2 |
| changing Sections 6, 8, and 15 as follows:
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| (30 ILCS 425/6) (from Ch. 127, par. 2806)
| 4 |
| Sec. 6. Conditions for Issuance and Sale of Bonds - | 5 |
| Requirements for
Bonds - Master and Supplemental Indentures - | 6 |
| Credit and Liquidity
Enhancement. | 7 |
| (a) Bonds shall be issued and sold from time to time, in | 8 |
| one
or more series, in such amounts and at such prices as | 9 |
| directed by the
Governor, upon recommendation by the Director | 10 |
| of the
Governor's Office of Management and Budget.
Bonds shall | 11 |
| be payable only from the specific sources and secured in the
| 12 |
| manner provided in this Act. Bonds shall be in such form, in | 13 |
| such
denominations, mature on such dates within 25 years from | 14 |
| their date of
issuance, be subject to optional or mandatory | 15 |
| redemption, bear interest
payable at such times and at such | 16 |
| rate or rates, fixed or variable, and be
dated as shall be | 17 |
| fixed and determined by the Director of the
Governor's Office | 18 |
| of Management and Budget
in an order authorizing the
issuance | 19 |
| and sale of any series of
Bonds, which order shall be approved | 20 |
| by the Governor and is herein called a
"Bond Sale Order"; | 21 |
| provided, however, that interest payable at fixed rates
shall | 22 |
| not exceed that permitted in "An Act to authorize public | 23 |
| corporations
to issue bonds, other evidences of indebtedness | 24 |
| and tax anticipation
warrants subject to interest rate |
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| limitations set forth therein", approved
May 26, 1970, as now | 2 |
| or hereafter amended, and interest payable at variable
rates | 3 |
| shall not exceed the maximum rate permitted in the Bond Sale | 4 |
| Order.
Said Bonds shall be payable at such place or places, | 5 |
| within or without the
State of Illinois,
and may be made | 6 |
| registrable
as to either principal only or as to both principal | 7 |
| and interest, as shall
be specified in the Bond Sale
Order. | 8 |
| Bonds may be callable or subject to purchase and retirement or
| 9 |
| remarketing as fixed and determined in the Bond Sale Order. | 10 |
| Bonds (i) except for refunding Bonds satisfying the | 11 |
| requirements of Section 15 of this Act and sold during fiscal | 12 |
| year 2009, 2010, or 2011, must be issued with principal or | 13 |
| mandatory redemption amounts in equal amounts, with the first | 14 |
| maturity issued occurring within the fiscal year in which the | 15 |
| Bonds are issued or within the next succeeding fiscal year and | 16 |
| (ii) must mature or be , with Bonds issued maturing or subject | 17 |
| to mandatory redemption each fiscal year thereafter up to 25 | 18 |
| years , except for refunding Bonds satisfying the requirements | 19 |
| of Section 16 of this Act and sold during fiscal year 2009, | 20 |
| 2010, or 2011 which must mature or be subject to mandatory | 21 |
| redemption each fiscal year thereafter up to 16 years .
| 22 |
| All Bonds authorized under this Act shall be issued | 23 |
| pursuant
to a master trust indenture ("Master Indenture") | 24 |
| executed and delivered on
behalf of the State by the Director | 25 |
| of the
Governor's Office of Management and Budget, such
Master | 26 |
| Indenture to be in substantially the form approved in the Bond |
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| Sale
Order authorizing the issuance and sale of the initial | 2 |
| series of Bonds
issued under this Act. Such initial series of | 3 |
| Bonds may, and each
subsequent series of Bonds shall, also be | 4 |
| issued pursuant to a supplemental
trust indenture | 5 |
| ("Supplemental Indenture") executed and delivered on behalf
of | 6 |
| the State by the Director of the
Governor's Office of | 7 |
| Management and Budget, each such
Supplemental
Indenture to be | 8 |
| in substantially the form approved in the Bond Sale Order
| 9 |
| relating to such series. The Master Indenture and any | 10 |
| Supplemental
Indenture shall be entered into with a bank or | 11 |
| trust company in the State
of Illinois having trust powers and | 12 |
| possessing capital and surplus of not
less than $100,000,000. | 13 |
| Such indentures shall set forth the terms and
conditions of the | 14 |
| Bonds and provide for payment of and security for the
Bonds, | 15 |
| including the establishment and maintenance of debt service and
| 16 |
| reserve funds, and for other protections for holders of the | 17 |
| Bonds.
The term "reserve funds" as used in this Act shall | 18 |
| include funds and
accounts established under indentures to | 19 |
| provide for the payment of
principal of and premium and | 20 |
| interest on Bonds, to provide for the purchase,
retirement or | 21 |
| defeasance of Bonds, to provide for fees of
trustees, | 22 |
| registrars, paying agents and other fiduciaries and to provide
| 23 |
| for payment of costs of and debt service payable in respect of | 24 |
| credit or
liquidity enhancement arrangements, interest rate | 25 |
| swaps or guarantees or
financial futures contracts and
indexing | 26 |
| and remarketing agents' services.
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| In the case of any series of Bonds bearing interest at a | 2 |
| variable
interest rate ("Variable Rate Bonds"), in lieu of | 3 |
| determining the rate or
rates at which such series of Variable | 4 |
| Rate Bonds shall bear interest and
the price or prices
at which | 5 |
| such Variable Rate Bonds shall be initially sold or remarketed | 6 |
| (in
the event of purchase and subsequent resale), the Bond
Sale | 7 |
| Order may provide that such interest rates and prices may vary | 8 |
| from time to time
depending on criteria established in such | 9 |
| Bond Sale Order, which criteria
may include, without | 10 |
| limitation, references to indices or variations in
interest | 11 |
| rates as may, in the judgment of a remarketing agent, be
| 12 |
| necessary to cause Bonds of such series to be remarketable from | 13 |
| time to
time at a price equal to their principal amount (or | 14 |
| compound accreted
value in the case of original issue discount | 15 |
| Bonds), and may provide for
appointment of indexing agents and | 16 |
| a bank, trust company,
investment bank or other financial | 17 |
| institution to serve as remarketing
agent in that connection. | 18 |
| The Bond Sale Order may provide that alternative
interest rates | 19 |
| or provisions for establishing alternative interest rates,
| 20 |
| different security or claim priorities or different call or | 21 |
| amortization provisions
will apply during such times as Bonds | 22 |
| of any series are held by a person
providing credit or | 23 |
| liquidity enhancement arrangements for such Bonds as
| 24 |
| authorized in subsection (b) of Section 6 of this Act.
| 25 |
| (b) In connection with the issuance of any series of Bonds, | 26 |
| the State
may enter into arrangements to provide additional |
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| security and liquidity
for such Bonds, including, without | 2 |
| limitation, bond or interest rate
insurance or letters of | 3 |
| credit, lines of credit, bond purchase contracts or
other | 4 |
| arrangements whereby funds are made
available to retire or | 5 |
| purchase Bonds, thereby assuring the ability of
owners of the | 6 |
| Bonds to sell or redeem their Bonds.
The State may enter into | 7 |
| contracts and may agree to pay fees to persons
providing such | 8 |
| arrangements, but only under circumstances where the
Director | 9 |
| of the Bureau of the Budget
(now Governor's Office of | 10 |
| Management and Budget)
certifies that he reasonably expects
the | 11 |
| total interest paid or to be paid on the Bonds, together with | 12 |
| the fees
for the arrangements (being treated as if interest), | 13 |
| would not, taken
together, cause the Bonds to bear interest, | 14 |
| calculated to their stated
maturity, at a rate in excess of the | 15 |
| rate which the Bonds would bear in the
absence of such | 16 |
| arrangements. Any bonds, notes or other evidences of
| 17 |
| indebtedness issued pursuant to any such arrangements for the | 18 |
| purpose of
retiring and discharging outstanding Bonds
shall | 19 |
| constitute refunding Bonds
under Section 15 of this Act. The | 20 |
| State may participate in and enter
into arrangements with | 21 |
| respect to interest rate swaps or guarantees or
financial | 22 |
| futures contracts for the
purpose of limiting or restricting | 23 |
| interest rate risk; provided
that such arrangements shall be | 24 |
| made with or executed through banks
having capital and surplus | 25 |
| of not less than $100,000,000 or insurance
companies holding | 26 |
| the
highest policyholder rating accorded insurers by A.M. Best & |
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| Co. or any
comparable rating service or government bond | 2 |
| dealers reporting to, trading
with, and recognized as primary | 3 |
| dealers by a Federal Reserve Bank and
having capital and | 4 |
| surplus of not less than $100,000,000,
or other persons whose
| 5 |
| debt securities are rated in the highest long-term categories | 6 |
| by both
Moody's Investors' Services, Inc. and Standard & Poor's | 7 |
| Corporation.
Agreements incorporating any of the foregoing | 8 |
| arrangements may be executed
and delivered by the Director of | 9 |
| the
Governor's Office of Management and Budget on behalf of the
| 10 |
| State in substantially the form approved in the Bond Sale Order | 11 |
| relating to
such Bonds.
| 12 |
| (Source: P.A. 93-839, eff. 7-30-04.)
| 13 |
| (30 ILCS 425/8) (from Ch. 127, par. 2808)
| 14 |
| Sec. 8. Sale of Bonds. Bonds, except as otherwise provided | 15 |
| in this Section, shall be sold from time to time pursuant to
| 16 |
| notice of sale and public bid or by negotiated sale in such | 17 |
| amounts and at such
times as are directed by the Governor, upon | 18 |
| recommendation by the Director of
the Governor's Office of | 19 |
| Management and Budget. At least 25%, based on total principal | 20 |
| amount, of all Bonds issued each fiscal year shall be sold | 21 |
| pursuant to notice of sale and public bid. At all times during | 22 |
| each fiscal year, no more than 75%, based on total principal | 23 |
| amount, of the Bonds issued each fiscal year shall have been | 24 |
| sold by negotiated sale. Failure to satisfy the requirements in | 25 |
| the preceding 2 sentences shall not affect the validity of any |
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| 1 |
| previously issued Bonds ; and further provided that refunding | 2 |
| Bonds satisfying the requirements of Section 15 of this Act and | 3 |
| sold during fiscal year 2009, 2010, or 2011 shall not be | 4 |
| subject to the requirements in the preceding 2 sentences . | 5 |
| If any Bonds are to be sold pursuant to notice of sale and | 6 |
| public bid, the Director of the
Governor's Office of Management | 7 |
| and Budget shall comply with the
competitive request for | 8 |
| proposal process set forth in the Illinois
Procurement Code and | 9 |
| all other applicable requirements of that Code. | 10 |
| If Bonds are to be sold pursuant to notice of sale and | 11 |
| public bid, the
Director of the
Governor's Office of Management | 12 |
| and Budget shall, from time to time, as Bonds are to be sold, | 13 |
| advertise
the sale of the Bonds in at least 2 daily newspapers, | 14 |
| one of which is
published in the City of Springfield and one in | 15 |
| the City of Chicago. The sale
of the Bonds shall also be
| 16 |
| advertised in the volume of the Illinois Procurement Bulletin | 17 |
| that is
published by the Department of Central Management | 18 |
| Services. Each of
the advertisements for
proposals shall be | 19 |
| published once at least 10 days prior to the date fixed
for the | 20 |
| opening of the bids. The Director of the
Governor's Office of | 21 |
| Management and Budget may
reschedule the date of sale upon the | 22 |
| giving of such additional notice as the
Director deems adequate | 23 |
| to inform prospective bidders of
the change; provided, however, | 24 |
| that all other conditions of the sale shall
continue as | 25 |
| originally advertised.
Executed Bonds shall, upon payment
| 26 |
| therefor, be delivered to the purchaser, and the proceeds of |
|
|
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| 1 |
| Bonds shall be
paid into the State Treasury as
directed by | 2 |
| Section 9 of this Act.
The
Governor or the Director of the
| 3 |
| Governor's Office of Management and Budget is hereby authorized
| 4 |
| and directed to execute and
deliver contracts of sale with | 5 |
| underwriters and to execute and deliver such
certificates, | 6 |
| indentures, agreements and documents, including any
| 7 |
| supplements or amendments thereto, and to take such actions and | 8 |
| do such
things as shall be necessary or desirable to carry out | 9 |
| the purposes of this
Act.
Any action authorized or permitted to | 10 |
| be taken by the Director of the
Governor's Office of Management | 11 |
| and Budget
pursuant to this Act is hereby authorized to be | 12 |
| taken
by any person specifically designated by the Governor to | 13 |
| take such action
in a certificate signed by the Governor and | 14 |
| filed with the Secretary of State.
| 15 |
| (Source: P.A. 93-839, eff. 7-30-04.)
| 16 |
| (30 ILCS 425/15) (from Ch. 127, par. 2815)
| 17 |
| Sec. 15. Refunding Bonds. Refunding Bonds are hereby | 18 |
| authorized for
the purpose of refunding any outstanding Bonds, | 19 |
| including the payment of
any redemption premium thereon, any | 20 |
| reasonable expenses of such refunding,
and any interest accrued | 21 |
| or to accrue to the earliest or any subsequent
date of | 22 |
| redemption or maturity of outstanding Bonds; provided that all | 23 |
| non-refunding Bonds in an issue that includes
refunding Bonds | 24 |
| shall mature no later than the final maturity date of Bonds
| 25 |
| being refunded; provided that no refunding Bonds shall be |
|
|
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| 1 |
| offered for sale unless the net present value of debt service | 2 |
| savings to be achieved by the issuance of the refunding Bonds | 3 |
| is 3% or more of the principal amount of the refunding Bonds to | 4 |
| be issued; and further provided that , except for refunding | 5 |
| Bonds sold in fiscal year 2009, 2010, or 2011, the maturities | 6 |
| of the refunding Bonds shall not extend beyond the maturities | 7 |
| of the Bonds they refund, so that for each fiscal year in the | 8 |
| maturity schedule of a particular issue of refunding Bonds, the | 9 |
| total amount of refunding principal maturing and redemption | 10 |
| amounts due in that fiscal year and all prior fiscal years in | 11 |
| that schedule shall be greater than or equal to the total | 12 |
| amount of refunded principal and redemption amounts that had | 13 |
| been due over that year and all prior fiscal years prior to the | 14 |
| refunding.
| 15 |
| Refunding Bonds may be sold in such amounts and at such | 16 |
| times, as
directed by the Governor upon
recommendation by the | 17 |
| Director of the
Governor's Office of Management and Budget. The | 18 |
| Governor
shall notify the State Treasurer and
Comptroller of | 19 |
| such refunding. The proceeds received from the sale of
| 20 |
| refunding Bonds shall be used
for the retirement at maturity or | 21 |
| redemption of such outstanding Bonds on
any maturity or | 22 |
| redemption date and, pending such use, shall be placed in
| 23 |
| escrow, subject to such terms and conditions as shall be | 24 |
| provided for in
the Bond Sale Order relating to the refunding | 25 |
| Bonds. This Act shall
constitute an irrevocable and continuing
| 26 |
| appropriation of all amounts necessary to establish an escrow |
|
|
|
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LRB096 08932 RCE 27802 a |
|
| 1 |
| account for
the purpose of refunding outstanding Bonds and to | 2 |
| pay the reasonable
expenses of such refunding and of the | 3 |
| issuance and sale of the refunding
Bonds. Any such escrowed | 4 |
| proceeds may be invested and
reinvested in direct obligations | 5 |
| of the United States of America, maturing
at such time or times | 6 |
| as shall be appropriate to assure the prompt payment,
when due,
| 7 |
| of the principal of and interest and redemption premium, if | 8 |
| any, on the
refunded Bonds. After the terms of the escrow have | 9 |
| been fully satisfied,
any remaining balance of such proceeds | 10 |
| and interest, income and profits
earned or realized on the | 11 |
| investments thereof shall be paid into the
General Revenue | 12 |
| Fund. The liability of the State upon the refunded Bonds
shall | 13 |
| continue, provided that the holders thereof shall thereafter be
| 14 |
| entitled to payment only out of the moneys deposited in the | 15 |
| escrow account
and the refunded Bonds shall be deemed paid, | 16 |
| discharged and no longer to be
outstanding.
| 17 |
| Except as otherwise herein provided in this Section, such | 18 |
| refunding Bonds
shall in all other respects be issued pursuant | 19 |
| to and subject to the terms
and conditions of this Act and | 20 |
| shall be secured by and payable from only the
funds and sources | 21 |
| which are provided under this Act.
| 22 |
| (Source: P.A. 93-839, eff. 7-30-04.)
| 23 |
| Section 99. Effective date. This Act takes effect upon | 24 |
| becoming law.".
|
|