093_HB2257ham001

 










                                     LRB093 02472 NHT 12468 a

 1                    AMENDMENT TO HOUSE BILL 2257

 2        AMENDMENT NO.     .  Amend House Bill 2257  by  replacing
 3    everything after the enacting clause with the following:

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

 6        (110 ILCS 947/145)
 7        Sec. 145. Issuance of Bonds.
 8        (a)  The Commission has power,  and  is  authorized  from
 9    time  to time, to issue bonds (1) to make or acquire eligible
10    loans, (2) to refund the bonds of the Commission, or (3)  for
11    a  combination  of  these such purposes. The Commission shall
12    not have outstanding at any one time bonds  in  an  aggregate
13    principal  amount  exceeding  $3,500,000,000, excluding bonds
14    issued to refund the bonds of the Commission.
15        The Commission is authorized to use the proceeds from the
16    sale of bonds  issued  pursuant  to  this  Act  to  fund  the
17    reserves  created  therefor, including a reserve for interest
18    coming due on the bonds for one year following  the  issuance
19    of  the  bonds,  as provided in the resolution or resolutions
20    authorizing the bonds and to pay the  necessary  expenses  of
21    issuing  the  bonds,  including  but  not  limited to, legal,
22    printing, and consulting fees.
 
                            -2-      LRB093 02472 NHT 12468 a
 1        (b)  The Commission has power,  and  is  authorized  from
 2    time  to  time, to issue refunding bonds (1) to refund unpaid
 3    matured  bonds;  (2)  to  refund   unpaid   matured   coupons
 4    evidencing interest upon its unpaid matured bonds; and (3) to
 5    refund  interest  at  the coupon rate upon its unpaid matured
 6    bonds that has accrued since the maturity of those bonds. The
 7    refunding bonds may be exchanged for the bonds to be refunded
 8    on a par for par basis of the bonds,  interest  coupons,  and
 9    interest  not  represented by coupons, if any, or may be sold
10    at not less than par or may be exchanged in part and sold  in
11    part;  and  the  proceeds  received at any such sale shall be
12    used to pay the bonds, interest  coupons,  and  interest  not
13    represented  by  coupons,  if any. Bonds and interest coupons
14    which have  been  received  in  exchange  or  paid  shall  be
15    cancelled and the obligation for interest, not represented by
16    coupons  which  have been discharged, shall be evidenced by a
17    written acknowledgement of the exchange or payment thereof.
18        (c)  The Commission has power,  and  is  authorized  from
19    time  to  time,  to  also  issue  refunding  bonds under this
20    Section, to refund bonds at or prior  to  their  maturity  or
21    which  by  their  terms  are  subject  to  redemption  before
22    maturity,  or  both, in an amount necessary to refund (1) the
23    principal amount  of  the  bonds  to  be  refunded,  (2)  the
24    interest  to  accrue up to and including the maturity date or
25    dates thereof, and (3) the applicable redemption premiums, if
26    any. Those refunding bonds may be exchanged for not less than
27    an equal principal amount of bonds to be refunded or  may  be
28    sold and the proceeds received at the sale thereof (excepting
29    the   accrued  interest  received)   used  to  complete  such
30    refunding, including the payment of  the  costs  of  issuance
31    thereof.
32        (d)  The  bonds  shall be authorized by resolution of the
33    Commission and may be issued in one or more series, may  bear
34    such   date   or  dates,  may  be  in  such  denomination  or
 
                            -3-      LRB093 02472 NHT 12468 a
 1    denominations, may mature at such time or times not exceeding
 2    40 years from the respective dates  thereof,  may  mature  in
 3    such  amount  or  amounts,  may bear interest at such rate or
 4    rates, may be in such form either coupon or registered as  to
 5    principal  only  or  as  to  both principal and interest, may
 6    carry such registration privileges (including the  conversion
 7    of  a fully registered bond to a coupon bond or bonds and the
 8    conversion of a coupon bond to a fully registered bond),  may
 9    be  executed  in  such  manner,  may  be made payable in such
10    medium of payment, at such place or places within or  without
11    the  State,  and  may  be subject to such terms of redemption
12    prior to their expressed maturity, with or  without  premium,
13    as the resolution or other resolutions may provide.  Proceeds
14    from  the sale of the bonds may be invested as the resolution
15    or resolutions and as the Commission from time  to  time  may
16    provide.   All  bonds  issued under this Act shall be sold in
17    the manner and at such price as the Commission may deem to be
18    in the best interest  of  the  public.   The  resolution  may
19    provide  that the bonds be executed with one manual signature
20    and that other signatures may  be  printed,  lithographed  or
21    engraved thereon.
22        The  Commission shall not be authorized to create and the
23    bonds shall not in any event constitute  State  debt  of  the
24    State  of  Illinois within the meaning of the Constitution or
25    statutes of the State of Illinois, and the same shall  be  so
26    stated upon the face of each bond.  The source of payment for
27    the bonds shall be stated on the face of each bond.
28        The  issuance  of bonds under this Act is in all respects
29    for the benefit of the People of the State of  Illinois,  and
30    in  consideration  thereof  the bonds issued pursuant to this
31    Act and the income therefrom shall be free from all  taxation
32    by  the  State  or  its  political  subdivisions,  except for
33    estate, transfer, and  inheritance  taxes.  For  purposes  of
34    Section  250 of the Illinois Income Tax Act, the exemption of
 
                            -4-      LRB093 02472 NHT 12468 a
 1    the income from bonds issued under this Act  shall  terminate
 2    after  all  of  the  bonds have been paid. The amount of such
 3    income that  shall  be  added  and  then  subtracted  on  the
 4    Illinois income tax return of a taxpayer, pursuant to Section
 5    203  of  the  Illinois  Income Tax Act, from federal adjusted
 6    gross income or federal taxable income in computing  Illinois
 7    base  income  shall  be  the interest net of any bond premium
 8    amortization.
 9    (Source: P.A. 92-45, eff. 6-29-01.)".