Public Act 93-0623

SB875 Enrolled                       LRB093 11012 NHT 11673 b

    AN ACT concerning higher education student assistance.

    Be it enacted by the People of  the  State  of  Illinois,
represented in the General Assembly:

    Section  5.  The  Higher Education Student Assistance Act
is amended by changing Section 145 as follows:

    (110 ILCS 947/145)
    Sec. 145. Issuance of Bonds.
    (a)  The Commission has power,  and  is  authorized  from
time  to time, to issue bonds (1) to make or acquire eligible
loans, (2) to refund the bonds of the Commission, or (3)  for
a combination of such purposes. The Commission shall not have
outstanding  at  any one time bonds in an aggregate principal
amount  exceeding  $5,000,000,000  $3,500,000,000,  excluding
bonds issued to refund the bonds of the Commission.
    The Commission is authorized to use the proceeds from the
sale of bonds  issued  pursuant  to  this  Act  to  fund  the
reserves  created  therefor, including a reserve for interest
coming due on the bonds for one year following  the  issuance
of  the  bonds,  as provided in the resolution or resolutions
authorizing the bonds and to pay the  necessary  expenses  of
issuing  the  bonds,  including  but  not  limited to, legal,
printing, and consulting fees.
    (b)  The Commission has power,  and  is  authorized  from
time  to  time, to issue refunding bonds (1) to refund unpaid
matured  bonds;  (2)  to  refund   unpaid   matured   coupons
evidencing interest upon its unpaid matured bonds; and (3) to
refund  interest  at  the coupon rate upon its unpaid matured
bonds that has accrued since the maturity of those bonds. The
refunding bonds may be exchanged for the bonds to be refunded
on a par for par basis of the bonds,  interest  coupons,  and
interest  not  represented by coupons, if any, or may be sold
at not less than par or may be exchanged in part and sold  in
part;  and  the  proceeds  received at any such sale shall be
used to pay the bonds, interest  coupons,  and  interest  not
represented  by  coupons,  if any. Bonds and interest coupons
which have  been  received  in  exchange  or  paid  shall  be
cancelled and the obligation for interest, not represented by
coupons  which  have been discharged, shall be evidenced by a
written acknowledgement of the exchange or payment thereof.
    (c)  The Commission has power,  and  is  authorized  from
time  to  time,  to  also  issue  refunding  bonds under this
Section, to refund bonds at or prior  to  their  maturity  or
which  by  their  terms  are  subject  to  redemption  before
maturity,  or  both, in an amount necessary to refund (1) the
principal amount  of  the  bonds  to  be  refunded,  (2)  the
interest  to  accrue up to and including the maturity date or
dates thereof, and (3) the applicable redemption premiums, if
any. Those refunding bonds may be exchanged for not less than
an equal principal amount of bonds to be refunded or  may  be
sold and the proceeds received at the sale thereof (excepting
the   accrued  interest  received)   used  to  complete  such
refunding, including the payment of  the  costs  of  issuance
thereof.
    (d)  The  bonds  shall be authorized by resolution of the
Commission and may be issued in one or more series, may  bear
such   date   or  dates,  may  be  in  such  denomination  or
denominations, may mature at such time or times not exceeding
40 years from the respective dates  thereof,  may  mature  in
such  amount  or  amounts,  may bear interest at such rate or
rates, may be in such form either coupon or registered as  to
principal  only  or  as  to  both principal and interest, may
carry such registration privileges (including the  conversion
of  a fully registered bond to a coupon bond or bonds and the
conversion of a coupon bond to a fully registered bond),  may
be  executed  in  such  manner,  may  be made payable in such
medium of payment, at such place or places within or  without
the  State,  and  may  be subject to such terms of redemption
prior to their expressed maturity, with or  without  premium,
as the resolution or other resolutions may provide.  Proceeds
from  the sale of the bonds may be invested as the resolution
or resolutions and as the Commission from time  to  time  may
provide.   All  bonds  issued under this Act shall be sold in
the manner and at such price as the Commission may deem to be
in the best interest  of  the  public.   The  resolution  may
provide  that the bonds be executed with one manual signature
and that other signatures may  be  printed,  lithographed  or
engraved thereon.
    The  Commission shall not be authorized to create and the
bonds shall not in any event constitute  State  debt  of  the
State  of  Illinois within the meaning of the Constitution or
statutes of the State of Illinois, and the same shall  be  so
stated upon the face of each bond.  The source of payment for
the bonds shall be stated on the face of each bond.
    The  issuance  of bonds under this Act is in all respects
for the benefit of the People of the State of  Illinois,  and
in  consideration  thereof  the bonds issued pursuant to this
Act and the income therefrom shall be free from all  taxation
by  the  State  or  its  political  subdivisions,  except for
estate, transfer, and  inheritance  taxes.  For  purposes  of
Section  250 of the Illinois Income Tax Act, the exemption of
the income from bonds issued under this Act  shall  terminate
after  all  of  the  bonds have been paid. The amount of such
income that  shall  be  added  and  then  subtracted  on  the
Illinois income tax return of a taxpayer, pursuant to Section
203  of  the  Illinois  Income Tax Act, from federal adjusted
gross income or federal taxable income in computing  Illinois
base  income  shall  be  the interest net of any bond premium
amortization.
(Source: P.A. 92-45, eff. 6-29-01.)
    Section 99.  Effective date.  This Act takes effect  upon
becoming law.