(110 ILCS 945/0.01) (from Ch. 144, par. 1600)
Sec. 0.01.
Short title.
This Act may be cited as the
Higher Education Loan Act.
(Source: P.A. 86-1324.)
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(110 ILCS 945/2) (from Ch. 144, par. 1602)
Sec. 2.
Declaration of Purpose.
It is declared that for the benefit of
the people of the State of Illinois, the conduct and increase of their commerce,
the protection and enhancement of their welfare, the development
of continued prosperity and the improvement of their health and living conditions,
it is essential that this and future generations of youth be given the fullest
opportunity to learn and to develop their intellectual and mental capacities
and skills; that to achieve these ends it is of the utmost importance that
students attending institutions of higher education located in Illinois
have reasonable alternatives to enhance their financial access to such institutions;
that
reasonable financial access to institutions of higher education will assist
such youth in achieving the required levels of learning and development
of their intellectual and mental
capacities and skills; that it is the purpose of this Act to provide a measure
of assistance and an alternative method to enable students and the families
of students attending institutions of higher education located in Illinois
to appropriately and prudently finance the cost or a portion of the cost
of such higher education; and that it is the intent of this Act to supplement
federal guaranteed higher education loan programs, other student loan programs, and
grant or scholarship programs to provide the needed additional options for
the financing of a student's higher education in execution of the public
policy set forth above.
(Source: P.A. 82-658.)
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(110 ILCS 945/3) (from Ch. 144, par. 1603)
Sec. 3. Definitions. In this Act, unless the context otherwise requires,
the terms specified in Sections 3.01 through 3.13 of this Act and the Illinois
Finance
Authority Act have the meanings ascribed to them in
those Acts.
(Source: P.A. 95-331, eff. 8-21-07.)
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(110 ILCS 945/3.01) (from Ch. 144, par. 1603.01)
Sec. 3.01. Authority. "Authority" means the Illinois
Finance
Authority created by the Illinois Finance Authority Act.
(Source: P.A. 95-331, eff. 8-21-07.)
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(110 ILCS 945/3.02) (from Ch. 144, par. 1603.02)
Sec. 3.02.
Authority Loans.
"Authority Loans" means loans by the Authority
to institutions of higher education or education loan corporations for
the purpose of funding Education Loans.
(Source: P.A. 85-1326.)
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(110 ILCS 945/3.03) (from Ch. 144, par. 1603.03)
Sec. 3.03.
(Repealed).
(Source: Repealed by P.A. 88-555, eff. 7-27-94.)
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(110 ILCS 945/3.04) (from Ch. 144, par. 1603.04)
Sec. 3.04.
(Repealed).
(Source: Repealed by P.A. 88-555, eff. 7-27-94.)
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(110 ILCS 945/3.05) (from Ch. 144, par. 1603.05)
Sec. 3.05.
Borrower.
"Borrower" means a student who has received an
Education Loan or any Parent who has received or agreed to pay an Education Loan.
(Source: P.A. 82-658.)
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(110 ILCS 945/3.06) (from Ch. 144, par. 1603.06)
Sec. 3.06.
Default insurance.
"Default insurance" means insurance
insuring Education Loans, Authority Loans or Bonds against default.
(Source: P.A. 82-658.)
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(110 ILCS 945/3.07) (from Ch. 144, par. 1603.07)
Sec. 3.07.
Default reserve fund.
"Default reserve fund" means a fund
established pursuant to a bond ordinance for the purpose of securing Education
Loans, Authority Loans or Bonds.
(Source: P.A. 82-658.)
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(110 ILCS 945/3.08) (from Ch. 144, par. 1603.08)
Sec. 3.08.
Cost of Attendance.
Cost of attendance shall be the amount
defined by the institution for the purpose of the guaranteed student loan
program as defined under Title IV, Part B, of the "Higher Education Act
of 1965" as now or hereafter amended.
(Source: P.A. 82-658.)
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(110 ILCS 945/3.09) (from Ch. 144, par. 1603.09)
Sec. 3.09.
Education Loan.
"Education Loan" means a loan which is made
by an institution of higher education or education loan corporation to
a student or parents of a student,
or both, in amounts not in excess of the maximum amounts specified in this
Section to finance the student's attendance at an institution
of higher education. The maximum
loan amount shall not exceed
(a) in the case of a borrower who is a student, the student's cost of
attendance for the period of time for which the loan is made minus the
following
amounts applicable to such period of time:
(1) the amount of grant which the student receives under the federal Pell
Grant program authorized under Title IV, part A, of the "Higher Education
Act of 1965", as now or hereafter amended, whether or not the student has
made application for such grant;
(2) the maximum net guaranteed student loan proceeds which the student
receives pursuant to Title IV, part B, of the "Higher Education Act of 1965",
as now or hereafter amended, whether or not the student has made application
for such loan;
(3) the amount of scholarships, grants or other nonrepayable assistance
received from government agencies, educational institutions or private
institutions or organizations;
(4) the expected family contribution computed pursuant to Section 482
of the "Higher Education Act of 1965", as now or hereafter amended; and
(5) an amount equal to the "self-help" component of the needs analysis
formula used by the Illinois State Scholarship Commission to determine student
eligibility for the grant program it administers under Sections 30-15 through
30-15.7a of the "Higher Education Student Assistance Law".
(b) (1) In the case of a borrower who is a parent of an eligible student,
the student's cost of attendance minus:
(i) the amounts determined pursuant to subparagraphs 1, 2, and 3 of subsection
(a) of this Section; and
(ii) the amount of loan which the student receives pursuant to subsection
(a) of this Section.
(2) The combined maximum loan amount of both parents shall not exceed
the maximum amount as determined under subsection (b) of this Section.
(Source: P.A. 85-1326.)
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(110 ILCS 945/3.09a) (from Ch. 144, par. 1603.09a)
Sec. 3.09a.
Education Loan Corporation.
"Education loan corporation"
means a not for profit corporation organized under the laws of this State
which is not owned or controlled by the State or any political subdivision,
agency, instrumentality, district or municipality thereof, which is
organized for the purpose of, or is otherwise authorized to, receive
Authority loans from the Authority and conduct an education loan financing
program in accordance with the provisions of this Act.
(Source: P.A. 85-1326.)
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(110 ILCS 945/3.10) (from Ch. 144, par. 1603.10)
Sec. 3.10.
Loan funding deposit.
"Loan funding deposit" means monies
or other property deposited
by an institution of higher education or education loan corporation
with the Authority or a trustee for
the purpose of (a) providing security for Bonds, (b) funding a default reserve
fund, (c) acquiring default insurance, or (d) defraying costs of the Authority,
such monies or properties to be in such amounts as deemed necessary by the
Authority as a condition for such institution's or education loan
corporation's participation in the Authority's
programs.
(Source: P.A. 85-1326.)
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(110 ILCS 945/3.11) (from Ch. 144, par. 1603.11)
Sec. 3.11.
(Repealed).
(Source: Repealed by P.A. 88-555, eff. 7-27-94.)
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(110 ILCS 945/3.12) (from Ch. 144, par. 1603.12)
Sec. 3.12.
Parent.
"Parent" means any parent or guardian of a student
at an institution of higher education.
(Source: P.A. 82-658.)
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(110 ILCS 945/3.13) (from Ch. 144, par. 1603.13)
Sec. 3.13.
Education loan series portfolio.
"Education Loan series
portfolio" means all Education Loans made by an institution of higher
education or education loan corporation which are funded from the
proceeds of an Authority Loan to such
institution or education loan corporation out of the proceeds of a
related specific Bond issue through the Authority.
(Source: P.A. 85-1326.)
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(110 ILCS 945/4) (from Ch. 144, par. 1604)
Sec. 4.
(Repealed).
(Source: Repealed by P.A. 88-555, eff. 7-27-94.)
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(110 ILCS 945/5) (from Ch. 144, par. 1605)
Sec. 5. Transfer of functions from the Illinois Educational Facilities
Authority to the Illinois Finance Authority. The Illinois Finance Authority
created by the Illinois Finance Authority Act shall succeed to, assume and
exercise all rights, powers, duties and responsibilities formerly exercised by
the Illinois Educational Facilities Authority prior to the abolition of that
Authority by this amendatory Act of the 93rd General Assembly. All books,
records, papers, documents and pending business in any way pertaining to the
former Illinois Educational Facilities Authority are transferred to the
Illinois Finance Authority, but any rights or obligations of
any person under any contract made by, or under any rules, regulations,
uniform standards, criteria and guidelines established or approved by, such
former Illinois Educational Facilities Authority shall be unaffected thereby.
All bonds, notes or other evidences of indebtedness outstanding on the
effective date of this amendatory Act of the 93rd General Assembly shall be
unaffected by the transfer of functions to the Illinois Finance Authority.
No rule, regulation, standard, criteria or guideline promulgated, established
or approved by the former Illinois Educational Facilities Authority pursuant
to an exercise of any right, power, duty or responsibility assumed by and
transferred to the Illinois Finance Authority shall be affected by this
amendatory Act of the 93rd General Assembly, and all such rules, regulations,
standards, criteria and guidelines shall become those of the Illinois Finance
Authority until such time as they are amended or repealed by the Authority.
(Source: P.A. 95-331, eff. 8-21-07.)
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(110 ILCS 945/6) (from Ch. 144, par. 1606)
Sec. 6.
Functions and powers of Authority.
In addition to the functions
and powers enumerated in the Illinois Educational Facilities Act, the
Authority has the functions
and powers set forth in Sections 6.05 through 6.18.
(Source: P.A. 88-555, eff. 7-27-94.)
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(110 ILCS 945/6.05) (from Ch. 144, par. 1606.05)
Sec. 6.05.
Determination of qualified financings and establishment
of financing programs. To establish criteria for and guidelines encompassing
the types of and qualifications for Education Loan financing programs.
In this regard, the Authority shall be empowered to issue Bonds for the
purpose of making Authority Loans to institutions of higher education and
education loan corporations participating
in a program of the Authority for the express purpose of providing Education
Loans. The criteria and guidelines established by the Authority for its
Education Loan financing programs shall include such eligibility standards
for Borrowers as the Authority shall determine are necessary or desirable
in order to effectuate the purposes of the Act, including the following:
(a) each student shall have a certificate of admission or enrollment at
a specific institution of higher education, (b) each student
or his or her parents shall satisfy such financial qualifications as the
Authority shall establish to effectuate the purposes of the Act, (c) each
student and his or her Parents shall submit such information as may be required
by the Authority to his or her institution of higher education or to the
education loan corporation providing an education loan to such student or parents.
The Authority is authorized to contract with financial institutions and
other qualified loan origination and servicing organizations, which shall
assist in pre-qualifying Borrowers for Education
Loans and which shall service and administer each Education Loan and each
institution's and education loan corporation's respective loan series
portfolio. Each Education Loan's fees
shall include a portion, if necessary, to cover the applicable pro rata
cost of such a servicing organization.
The Authority is authorized to establish specific criteria governing the
eligibility of institutions of higher education and education loan
corporations to participate in its programs,
the making of Authority Loans and Education Loans, provisions for default,
the establishment of default reserve funds, the purchase of default insurance,
the provision of prudent debt service reserves, and the furnishing by participating
institutions of higher education and education loan corporations of such additional
guarantees of the Education Loans, Authority Loans or the Bonds as the Authority
shall determine, all of such criteria to be established to assure the marketability
of the Bonds and the adequacy of the security for the Bonds.
The Authority shall establish
limitations upon the principal amounts and the terms of Education Loans,
criteria regarding the qualifications and characteristics of Borrowers and
procedures for allocating Authority Loans among institutions of higher
education and education loan corporations
eligible for its program in order to effectuate the purposes of the Act.
(Source: P.A. 85-1326.)
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(110 ILCS 945/6.06) (from Ch. 144, par. 1606.06)
Sec. 6.06.
(Repealed).
(Source: Repealed by P.A. 88-555, eff. 7-27-94.)
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(110 ILCS 945/6.07) (from Ch. 144, par. 1606.07)
Sec. 6.07.
(Repealed).
(Source: Repealed by P.A. 88-555, eff. 7-27-94.)
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(110 ILCS 945/6.08) (from Ch. 144, par. 1606.08)
Sec. 6.08.
Establishment of rules and regulations.
To establish rules
and regulations with respect to Authority Loans, Education Loans and Education
loan series portfolios.
(Source: P.A. 82-658.)
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(110 ILCS 945/6.09) (from Ch. 144, par. 1606.09)
Sec. 6.09.
(Repealed).
(Source: Repealed by P.A. 88-555, eff. 7-27-94.)
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(110 ILCS 945/6.10) (from Ch. 144, par. 1605.10)
Sec. 6.10.
Receipt and acceptance of loans, contributions or grants.
To receive and accept from any source, loans, contributions or grants for
or in aid of an Authority Education Loan financing program or any portion
thereof and, when required, to use such funds, property or labor only for
the purposes for which it was loaned, contributed or granted.
(Source: P.A. 82-658.)
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(110 ILCS 945/6.11) (from Ch. 144, par. 1606.11)
Sec. 6.11.
Making Authority Loans to institutions of higher education
and education loan corporations.
To make Authority Loans to institutions of higher education and education
loan corporations and require
that the proceeds thereof be used for making Education Loans and paying
costs and fees in connection therewith.
(Source: P.A. 85-1326.)
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(110 ILCS 945/6.12) (from Ch. 144, par. 1606.12)
Sec. 6.12.
Apportionment of administrative costs and expenses among
participating institutions of higher education and education loan
corporations. To charge to and apportion
among participating institutions of higher education and education loan
corporations its administrative
and operating costs and expenses incurred in the exercise of the powers
and duties conferred by this Act.
(Source: P.A. 85-1326.)
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(110 ILCS 945/6.13) (from Ch. 144, par. 1606.13)
Sec. 6.13.
Borrowing funds for operations.
To borrow working capital
funds and other funds as may be necessary for start-up and continuing operations,
as long as such funds are borrowed in the name of the Authority only.
Such borrowings shall be limited obligations of the character described
in Section 12 of this Act and shall be payable solely from revenues of the
Authority or the proceeds of Bonds pledged for that purpose.
(Source: P.A. 82-658.)
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(110 ILCS 945/6.14) (from Ch. 144, par. 1606.14)
Sec. 6.14.
Combining Education Loan series portfolios for financing
purposes. Notwithstanding any other provision contained in this Act, to
comingle and pledge as security for a series or issue of Bonds, with the
consent of all of the institutions of higher education and education loan
corporations which are participating
in such series or issue, (a) the Education loan series portfolios and some
or all future Education loan series portfolios of such institutions of higher
education and education loan corporations, and (b) the loan funding
deposits of such institutions and education loan corporations provided
that Education loan series portfolios and other security and
monies set aside in any fund or funds pledged for any series of Bonds or
issue of Bonds shall be held for the sole benefit of such series or issue
separate and apart from Education loan series portfolios and other security
and monies pledged for any other series or issue of Bonds of the Authority.
Bonds may be issued in series under one or more resolutions or trust agreements
in the discretion of the Authority.
(Source: P.A. 85-1326.)
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(110 ILCS 945/6.15) (from Ch. 144, par. 1606.15)
Sec. 6.15.
Examining records.
To examine records and financial reports
of participating institutions of higher education and education loan
corporations, and to examine records
and financial reports of any contractor organization or institution retained
under Section 6.05 of this Act.
(Source: P.A. 88-555, eff. 7-27-94.)
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(110 ILCS 945/6.16) (from Ch. 144, par. 1606.16)
Sec. 6.16.
Use of Education Loan proceeds.
The Authority shall require
that Authority Loans be used solely to make Education Loans. The Authority
shall require that institutions of higher education and education loan
corporations shall require that each
Borrower under an Education Loan shall use the proceeds solely for the cost
of attendance and that each such Borrower shall so certify.
(Source: P.A. 85-1326.)
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(110 ILCS 945/6.17) (from Ch. 144, par. 1606.17)
Sec. 6.17.
Refunding Bonds and reduction of debt.
Whenever refunding
Bonds are issued to refund Bonds, the proceeds of which were used to make
Authority loans, the Authority may reduce the amount it is owed by the institutions
of higher education or education loan corporations which had received
Authority Loans from the proceeds
of the refunded Bonds. Such institutions of higher education and
education loan corporations may use this
reduced amount to reduce the amount of interest being paid on Education
Loans which the institutions and education loan corporations had made
pursuant to the Authority Loans from
the proceeds of the refunded Bonds.
(Source: P.A. 85-1326.)
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(110 ILCS 945/6.18) (from Ch. 144, par. 1606.18)
Sec. 6.18.
Necessary and proper actions.
The Authority shall have
the power to authorize its officers, agents and employees to take such action
and do such things as shall be necessary or desirable in order to carry
out and effectuate the purposes of the Act.
(Source: P.A. 82-658.)
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(110 ILCS 945/7) (from Ch. 144, par. 1607)
Sec. 7.
Expenses of Authority - Limitation of liability for expense.
All expenses incurred in carrying out the provisions of this Act shall be
payable solely from funds provided under the authority of this Act and,
except as authorized under Section 6.13, no liability shall be incurred
by the Authority beyond the extent to which monies shall have been provided
under this Act.
(Source: P.A. 82-658.)
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(110 ILCS 945/8) (from Ch. 144, par. 1608)
Sec. 8.
Acquisition of certain monies, endowments, and properties and
guarantees thereto. The Authority is authorized to establish specific guidelines
relating to the deposits of certain monies, endowments, or properties by
institutions of higher education and education loan corporations which
would provide prudent security for
Education Loans funding programs, Authority Loans, Education Loans or for
Bonds and to establish guidelines relating to guarantees of or contracts to purchase
Education Loans or Bonds by such institutions and education loan corporations
or by financial institutions or others.
A default reserve fund may be established for each series or issue of Bonds.
In this regard, the Authority is empowered
to receive such monies, endowments, properties, and guarantees as it deems
appropriate and, if necessary, to take title in the name of the Authority
or in the name of a participating institution of higher education,
education loan corporation or a trustee.
(Source: P.A. 85-1326.)
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(110 ILCS 945/9) (from Ch. 144, par. 1609)
Sec. 9.
Conveyance of loan funding deposit after payment of principal
and interest. When the principal of and interest on Bonds of the Authority issued
to finance the cost of an Education Loan financing program or programs,
including any refunding Bonds issued to refund and refinance such Bonds,
have been fully paid and retired or when adequate provision has been made
to fully pay and retire the same, and all other
conditions of the Bond resolution authorizing the same have been satisfied
and the lien created by such Bond resolution has been released in accordance
with the provisions thereof, the Authority shall promptly do such things
and execute such deeds and conveyances as are necessary and required to
convey any remaining monies, properties and other assets comprising loan
funding deposits to the institutions of higher education and education
loan corporations which furnished
the same in proportion to the amounts furnished by the respective institutions
of higher education and education loan corporations.
(Source: P.A. 85-1326.)
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(110 ILCS 945/10) (from Ch. 144, par. 1610)
Sec. 10.
Bonds.
(a) The Authority may from time to time issue Bonds
for any corporate purpose and all such Bonds or other obligations of the
Authority issued pursuant to this Act shall be and are hereby declared to
be negotiable for all purposes notwithstanding their payment from limited
source and without regard to any other law or laws.
(b) The Authority shall not have outstanding at any one time Bonds
issued pursuant to this Act in
an aggregate principal amount exceeding $200,000,000, excluding Bonds issued
to refund the Bonds of the Authority issued pursuant to this Act.
(c) The Bonds of each issue shall be payable solely out of revenues of
the Authority pertaining to the program relating to such Bond issue, including
principal and interest on Authority Loans and Education Loans, payments
by institutions of higher education, education loan corporations,
banks, insurance companies or others
pursuant to letters of credit or purchase agreements, investment earnings
from funds or accounts maintained pursuant to the Bond resolution, insurance
proceeds, loan funding deposits, proceeds of sales of Education Loans, proceeds
of refunding Bonds and fees, charges and other revenues of the Authority
from such program.
(d) The Bonds may be issued as serial Bonds or as term Bonds, or
both. The Bonds shall be authorized by a Bond resolution of the Authority
and shall bear such date or dates, mature at such time or times not exceeding
the year following the last year in which the final payments in an Education
loan series portfolio are due, or 30 years, whichever is sooner, from their
respective dates of issue, bear interest at such rate or rates,
be payable at such time or times, be in such denominations, be in such form,
either coupon or fully registered, carry such registration and conversion
privileges, be payable in lawful money of the United
States of America at such places, and be subject to such terms of redemption
as such Bond resolution may provide. The Bonds shall be executed by the
manual or facsimile signatures of such officers of the Authority as shall
be designated by the Authority. The Bonds shall be sold in such manner
and at such prices
as the Authority shall determine. Pending preparation of the definitive
Bonds, the Authority may issue interim receipts or certificates which shall
be exchanged for such definitive Bonds.
(e) Any Bond resolution may contain provisions, which shall be a part
of the contract with the holders of the Bonds to be authorized, as to:
(i) pledging or assigning the revenues derived from the Authority Loans
and Education Loans with respect to which such Bonds are to be issued; (ii)
the fees and other amounts to be charged, and the sums to be raised in each
year thereby, and the use, investment and disposition of such sums; (iii)
the setting aside of loan funding deposits, debt service reserves, capitalized
interest accounts, cost of issuance accounts and sinking funds, and the
regulation, investment and disposition thereof; (iv) limitations on the
use of the Education Loans; (v) limitations on the purpose to which or the
investments in which the proceeds of sale of any issue of Bonds then or
thereafter to be issued may be applied; (vi) limitations on the issuance
of additional Bonds,
the terms upon which additional Bonds may be issued and secured, the terms
upon which additional Bonds may rank on a parity with, or be subordinate
or superior to, other Bonds; (vii) the refunding of outstanding Bonds; (viii)
the procedure, if any, by which the terms of any contract with Bondholders
may be amended, or abrogated, the amount of Bonds the holders of which must
consent thereto, and the manner in which such consent may be given; (ix)
defining the acts or omissions to act which shall constitute a default in
the duties of the Authority to holders of its obligations and providing the
rights or remedies of such holders in the event of a default; (x) providing
for guarantees, pledges of endowments, letters of credit, property or other security
for the benefit of the holders of such Bonds; and (xi) any other matters
relating to the Bonds which the Authority deems desirable.
(f) Neither the members of the Authority nor any person executing the
Bonds shall be liable personally on the Bonds or be subject to any personal
liability or accountability by reason of the issuance thereof.
(g) The Authority shall have power to purchase its Bonds out of any funds
available therefor.
The Authority may hold, pledge, cancel or resell
such Bonds subject to and in accordance with agreements with Bondholders.
(h) The Authority shall have the power to refund any of its Bonds. Such
refunding Bonds shall be issued in the same manner as other Bonds of the Authority.
(Source: P.A. 85-1326.)
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(110 ILCS 945/11) (from Ch. 144, par. 1611)
Sec. 11.
Trust agreement to secure Bonds.
In the discretion of the Authority
any Bonds issued under the provisions of this Act may be secured by a trust
agreement by and between the Authority and a corporate trustee or trustees,
which may be any trust company or bank in the State of Illinois having the
powers of a trust company. The Bond resolution providing for
the issuance of Bonds so secured shall pledge the revenues to be received
by the Authority, including any or all of the revenues specified in Section
10(c) of this Act, may contain such provisions for
protecting and enforcing
the rights and remedies of the Bondholders as may be reasonable and proper
and not in violation of law, including particularly such provisions as have
hereinabove been specifically authorized to be included in any Bond resolution
of the Authority, and may restrict the individual
right of action by Bondholders. In addition to the foregoing, any trust agreement
may contain such other provisions as the Authority may deem reasonable
and proper for the security of the Bondholders. All expenses incurred in
carrying out the provisions of the trust agreement may be treated as a part
of the cost of the operation of an Education Loan program.
(Source: P.A. 85-1326.)
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(110 ILCS 945/12) (from Ch. 144, par. 1612)
Sec. 12.
Bonds as obligation of Authority only.
Bonds issued under authority
of this Act shall be obligations of the Authority only, and not of the State
of Illinois. Bonds issued under authority of this Act shall state upon the
face of each Bond
that they represent and constitute a debt of the Authority, but not of the
State of Illinois within the meaning of the provisions of the Constitution
or Statutes of the State of Illinois; and they do not constitute a pledge
of the full faith and credit
of the Authority or of the State of Illinois. The bonds shall not grant
to the owners or holders
thereof any right to have the Authority or the General Assembly levy any
taxes or appropriate any funds for the payment of the principal thereof or
interest thereon. Such Bonds are payable, and shall state that they are
payable, solely from the revenues pledged for their payment in accordance
with the Bond resolution.
Nothing in this Act shall be construed to authorize the Authority or any
department, board, commission or other agency to create an obligation of
the State of Illinois within the meaning of the Constitution or Statutes of Illinois.
(Source: P.A. 82-658.)
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(110 ILCS 945/13) (from Ch. 144, par. 1613)
Sec. 13.
Pledge of Revenues.
The Authority shall fix, revise, charge
and collect fees and is empowered to contract with any person, partnership,
association or corporation, or other body, public or private, in respect
thereof. Each agreement entered into by the Authority with an institution
of higher education or education loan corporation
shall provide that the fees and other amounts payable by the institution
of higher education or education loan corporation with respect to any
program of the Authority shall be
sufficient at all times, (a) to pay its share of the administrative
costs and expenses of such program, (b) to pay the principal of, the premium,
if any, and the interest on outstanding Bonds of the Authority, issued in
respect of such program to the extent that other revenues of the Authority
pledged for the payment of the Bonds
are insufficient to pay the Bonds as they become due and payable, (c) to
create and maintain
reserves which may but need not be required or provided for in the Bond resolution
relating to such Bonds of the Authority, and (d) to establish and maintain
whatever Education Loan servicing, control, or audit procedures are deemed
to be necessary to the prudent operations of the Authority. The Authority
shall pledge the revenues from each program, as described in Section 10(c)
of this Act, as security for the issue of Bonds relating to such program.
Such pledge shall be valid and binding from the time when the pledge is
made; the revenues so pledged by the Authority shall immediately be subject
to the lien of such pledge without any physical delivery thereof or further
act, and the lien of any such pledge shall be valid and binding against
all parties having claims of any kind in tort, contract or otherwise against
the Authority or any participating institution of higher education or
education loan corporation, irrespective
of whether such parties have notice thereof. Neither the Bond resolution
nor any financing statement, continuation statement or other instrument
by which a pledge is created or by which the Authority's interest in revenues
is assigned need be filed or recorded in any public records in order to
perfect the lien thereof as against third parties except that a copy thereof
shall be filed in the records
of the Authority and with the State Treasurer.
(Source: P.A. 85-1326.)
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(110 ILCS 945/14) (from Ch. 144, par. 1614)
Sec. 14.
Funds from sale of Bonds as trust funds - Application of funds.
All monies received by or on behalf of the Authority pursuant to the authority
of this Act, whether as proceeds from the sale of Bonds or as revenues,
shall be deemed to be trust funds
to be held and applied solely as provided in this Act. Any officer with
whom, or any bank or trust company with which, such monies shall be deposited
shall act as trustee of such monies and shall hold and apply the same for
the purposes hereof, subject to such regulations as this Act and the Bond
resolution authorizing the Bonds of any issue may provide.
(Source: P.A. 82-658.)
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(110 ILCS 945/15) (from Ch. 144, par. 1615)
Sec. 15.
Rights of Bond holders.
Any holder of Bonds issued pursuant
to this Act or a trustee under a trust agreement entered into pursuant to
this Act, except to the extent that their rights are restricted by any Bond
resolution, may, by any suitable form of legal proceedings, protect and
enforce any rights under the laws of this State or granted by the Bond resolution.
Such rights include the right to compel the performance of all duties of
the Authority required by this Act or the Bond resolution; to enjoin unlawful
activities; and in the event of default with respect to the payment of any
principal of, premium, if any,
and interest on any Bond or in the performance of any covenant or agreement
on the part of the Authority in the Bond resolution, to apply to the circuit
court to appoint a receiver to administer and operate the Education Loan program
or programs, the revenues of which are pledged to the payment of principal
of, premium, if any, and interest on such Bonds, with full power to pay,
and to provide for payment of, principal of, premium, if any, and interest
on such Bonds, and with such powers, subject to the direction of the court,
as are permitted by law and are accorded receivers, excluding any power
to pledge additional revenues of the Authority to the payment of such principal,
premium and interest.
(Source: P.A. 82-658.)
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(110 ILCS 945/16) (from Ch. 144, par. 1616)
Sec. 16.
(Repealed).
(Source: Repealed by P.A. 88-555, eff. 7-27-94.)
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(110 ILCS 945/17) (from Ch. 144, par. 1617)
Sec. 17.
(Repealed).
(Source: Repealed by P.A. 88-555, eff. 7-27-94.)
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(110 ILCS 945/18) (from Ch. 144, par. 1618)
Sec. 18.
Bonds as legal investments.
All banks, bankers, trust companies,
savings banks and institutions, building and loan associations, savings
and loan associations, investment companies, insurance companies and associations,
and all executors, administrators, guardians, trustees and other fiduciaries
may legally invest any sinking funds, monies or other funds belonging to
them or within their control in any Bonds issued pursuant to this Act.
(Source: P.A. 82-658.)
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(110 ILCS 945/19) (from Ch. 144, par. 1619)
Sec. 19.
(Repealed).
(Source: Repealed by P.A. 88-555, eff. 7-27-94.)
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(110 ILCS 945/20) (from Ch. 144, par. 1620)
Sec. 20.
Waiver of competitive bidding.
Competitive bidding requirements
of the Illinois Revised Statutes or any other similar requirements that
may be lawfully waived are waived by this Section and any requirement of
competitive bidding or other restriction imposed on the procedure for award
of contracts is not applicable to any action taken under authority of this Act.
(Source: P.A. 82-658.)
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(110 ILCS 945/21) (from Ch. 144, par. 1621)
Sec. 21.
(Repealed).
(Source: Repealed by P.A. 88-555, eff. 7-27-94.)
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(110 ILCS 945/22) (from Ch. 144, par. 1622)
Sec. 22.
Powers - Interest rates.
Notwithstanding any other
provision of law, institutions and education loan corporations shall
have the power to borrow money from
the Authority, make Education Loans and take all other actions and do such
things as are necessary or convenient to consummate the transactions contemplated
under this Act. It shall be lawful for the Authority to establish, charge,
contract for and receive any amount or rate of interest or compensation
with respect to Authority Loans and for participating institutions and
education loan corporations to charge,
contract for and receive any amount or rate of interest or compensation
with respect to Education Loans.
(Source: P.A. 85-1326.)
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(110 ILCS 945/23) (from Ch. 144, par. 1623)
Sec. 23.
Act as alternative method - Application of Bond law - Powers
not subject to supervision or regulation by other element or government. The
foregoing Sections of this Act shall be deemed to provide a complete, additional and
alternative method for the doing of the things authorized thereby and shall
be regarded as supplemental and additional to, and the limitations imposed
by this Act shall not limit or otherwise affect powers or rights conferred
by other laws, and the issuance of Bonds and refunding Bonds under this
Act need not comply with the requirements of any other law applicable to
the issuance of Bonds. Except as otherwise expressly provided in this Act,
none of the powers granted to the Authority under this Act shall be subject
to the supervision or regulation or require the approval or consent of any
municipality or political subdivision or any department, division, commission,
board, body, bureau, official or agency thereof or of the State.
(Source: P.A. 82-658.)
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(110 ILCS 945/24) (from Ch. 144, par. 1624)
Sec. 24.
Liberal construction of Act.
This Act, being necessary for
the welfare of the State and its inhabitants, shall be liberally construed
to effect its purpose.
(Source: P.A. 82-658.)
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(110 ILCS 945/25) (from Ch. 144, par. 1625)
Sec. 25.
(Repealed).
(Source: Repealed by P.A. 88-555, eff. 7-27-94.)
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