Illinois General Assembly - Full Text of HB3407
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Full Text of HB3407  100th General Assembly

HB3407ham002 100TH GENERAL ASSEMBLY

Rep. Joe Sosnowski

Filed: 4/21/2017

 

 


 

 


 
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1
AMENDMENT TO HOUSE BILL 3407

2    AMENDMENT NO. ______. Amend House Bill 3407 on page 5, line
39, by replacing "interest" with ""interest"; and
 
4on page 5, by replacing line 10 with "derivative agreements",
5"forward payment conversion agreements","; and
 
6on page 6, line 23, by replacing "and" with "and"; and
 
7on page 8, line 15, by replacing "30 25" with "25"; and
 
8by replacing line 16 on page 26 through line 18 on page 27 with
9the following:
10    "The resolution of the governing board authorizing the
11issuance of the bonds may provide that interest rates may vary
12from time to time depending upon criteria established by the
13governing board, which may include, without limitation, a
14variation in interest rates as may be necessary to cause bonds

 

 

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1to be remarketable from time to time at a price equal to their
2principal amount, and may provide for appointment of a national
3banking association, bank, trust company, investment banker,
4or other financial institution to serve as a remarketing agent
5in that connection. The resolution of the governing board
6authorizing the issuance of the bonds may provide that
7alternative interest rates or provisions will apply during such
8times as the bonds are held by a person providing a letter of
9credit or other credit enhancement arrangement for those bonds.
10Without limiting the terms which may be included in any such
11credit agreements or remarketing agreements, the ordinance may
12or, if hereinafter so required, shall provide as follows:
13    (a) Interest rates on the bonds may vary from time to time
14depending upon criteria established by the governing body,
15which may include, without limitation: (i) a variation in
16interest rates as may be necessary to cause bonds to be
17remarketed from time to time at a price equal to their
18principal amount plus any accrued interest; (ii) rates set by
19auctions; or (iii) rates set by formula.
20    (b) A national banking association, bank, trust company,
21investment banker or other financial institution may be
22appointed to serve as a remarketing agent in that connection,
23and such remarketing agent may be delegated authority by the
24governing body to determine interest rates in accordance with
25criteria established by the governing body.
26    (c) Alternative interest rates or provisions may apply

 

 

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1during such times as the bonds are held by the person or
2persons (financial providers) providing a credit agreement or
3remarketing agreement for those bonds and during such times,
4the interest on the bonds may be deemed not exempt from income
5taxation under the Internal Revenue Code for purposes of State
6law, as contained in the Bond Authorization Act, relating to
7the permissible rate of interest to be borne thereon.".