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.