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90_HB0940
110 ILCS 947/145
Amends the Higher Education Student Assistance Act.
Increases to $2,100,000,000 (from $1,150,000,000) the
aggregate principal amount of bonds (other than refunding
bonds) issued by the Illinois Student Assistance Commission
under the Education Loan Purchase Program Law that may be
outstanding at any one time. Effective immediately.
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1 AN ACT to amend the Higher Education Student Assistance
2 Act by changing Section 145.
3 Be it enacted by the People of the State of Illinois,
4 represented in the General Assembly:
5 Section 5. The Higher Education Student Assistance Act
6 is amended by changing Section 145 as follows:
7 (110 ILCS 947/145)
8 Sec. 145. Issuance of Bonds.
9 (a) The Commission has power, and is authorized from
10 time to time, to issue bonds (1) to make or acquire eligible
11 loans, (2) to refund the bonds of the Commission, or (3) for
12 a combination of such purposes. The Commission shall not have
13 outstanding at any one time bonds in an aggregate principal
14 amount exceeding $2,100,000,000 $1,150,000,000, excluding
15 bonds issued to refund the bonds of the Commission.
16 The Commission is authorized to use the proceeds from the
17 sale of bonds issued pursuant to this Act to fund the
18 reserves created therefor, including a reserve for interest
19 coming due on the bonds for one year following the issuance
20 of the bonds, as provided in the resolution or resolutions
21 authorizing the bonds and to pay the necessary expenses of
22 issuing the bonds, including but not limited to, legal,
23 printing, and consulting fees.
24 (b) The Commission has power, and is authorized from
25 time to time, to issue refunding bonds (1) to refund unpaid
26 matured bonds; (2) to refund unpaid matured coupons
27 evidencing interest upon its unpaid matured bonds; and (3) to
28 refund interest at the coupon rate upon its unpaid matured
29 bonds that has accrued since the maturity of those bonds. The
30 refunding bonds may be exchanged for the bonds to be refunded
31 on a par for par basis of the bonds, interest coupons, and
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1 interest not represented by coupons, if any, or may be sold
2 at not less than par or may be exchanged in part and sold in
3 part; and the proceeds received at any such sale shall be
4 used to pay the bonds, interest coupons, and interest not
5 represented by coupons, if any. Bonds and interest coupons
6 which have been received in exchange or paid shall be
7 cancelled and the obligation for interest, not represented by
8 coupons which have been discharged, shall be evidenced by a
9 written acknowledgement of the exchange or payment thereof.
10 (c) The Commission has power, and is authorized from
11 time to time, to also issue refunding bonds under this
12 Section, to refund bonds at or prior to their maturity or
13 which by their terms are subject to redemption before
14 maturity, or both, in an amount necessary to refund (1) the
15 principal amount of the bonds to be refunded, (2) the
16 interest to accrue up to and including the maturity date or
17 dates thereof, and (3) the applicable redemption premiums, if
18 any. Those refunding bonds may be exchanged for not less than
19 an equal principal amount of bonds to be refunded or may be
20 sold and the proceeds received at the sale thereof (excepting
21 the accrued interest received) used to complete such
22 refunding, including the payment of the costs of issuance
23 thereof.
24 (d) The bonds shall be authorized by resolution of the
25 Commission and may be issued in one or more series, may bear
26 such date or dates, may be in such denomination or
27 denominations, may mature at such time or times not exceeding
28 40 years from the respective dates thereof, may mature in
29 such amount or amounts, may bear interest at such rate or
30 rates, may be in such form either coupon or registered as to
31 principal only or as to both principal and interest, may
32 carry such registration privileges (including the conversion
33 of a fully registered bond to a coupon bond or bonds and the
34 conversion of a coupon bond to a fully registered bond), may
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1 be executed in such manner, may be made payable in such
2 medium of payment, at such place or places within or without
3 the State, and may be subject to such terms of redemption
4 prior to their expressed maturity, with or without premium,
5 as the resolution or other resolutions may provide. Proceeds
6 from the sale of the bonds may be invested as the resolution
7 or resolutions and as the Commission from time to time may
8 provide. All bonds issued under this Act shall be sold in
9 the manner and at such price as the Commission may deem to be
10 in the best interest of the public. The resolution may
11 provide that the bonds be executed with one manual signature
12 and that other signatures may be printed, lithographed or
13 engraved thereon.
14 The Commission shall not be authorized to create and the
15 bonds shall not in any event constitute State debt of the
16 State of Illinois within the meaning of the Constitution or
17 statutes of the State of Illinois, and the same shall be so
18 stated upon the face of each bond. The source of payment for
19 the bonds shall be stated on the face of each bond.
20 The issuance of bonds under this Act is in all respects
21 for the benefit of the People of the State of Illinois, and
22 in consideration thereof the bonds issued pursuant to this
23 Act and the income therefrom shall be free from all taxation
24 by the State or its political subdivisions, except for
25 estate, transfer, and inheritance taxes. For purposes of
26 Section 250 of the Illinois Income Tax Act, the exemption of
27 the income from bonds issued under this Act shall terminate
28 after all of the bonds have been paid. The amount of such
29 income that shall be added and then subtracted on the
30 Illinois income tax return of a taxpayer, pursuant to Section
31 203 of the Illinois Income Tax Act, from federal adjusted
32 gross income or federal taxable income in computing Illinois
33 base income shall be the interest net of any bond premium
34 amortization.
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1 (Source: P.A. 88-282; 89-460, eff. 5-24-96.)
2 Section 99. Effective date. This Act takes effect upon
3 becoming law.