093_SB0875

 
                                     LRB093 11012 NHT 11673 b

 1        AN ACT concerning higher education student assistance.

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

 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 such purposes. The Commission shall not have
12    outstanding  at  any one time bonds in an aggregate principal
13    amount  exceeding  $5,000,000,000  $3,500,000,000,  excluding
14    bonds 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.
23        (b)  The Commission has power,  and  is  authorized  from
24    time  to  time, to issue refunding bonds (1) to refund unpaid
25    matured  bonds;  (2)  to  refund   unpaid   matured   coupons
26    evidencing interest upon its unpaid matured bonds; and (3) to
27    refund  interest  at  the coupon rate upon its unpaid matured
28    bonds that has accrued since the maturity of those bonds. The
29    refunding bonds may be exchanged for the bonds to be refunded
30    on a par for par basis of the bonds,  interest  coupons,  and
31    interest  not  represented by coupons, if any, or may be sold
 
                            -2-      LRB093 11012 NHT 11673 b
 1    at not less than par or may be exchanged in part and sold  in
 2    part;  and  the  proceeds  received at any such sale shall be
 3    used to pay the bonds, interest  coupons,  and  interest  not
 4    represented  by  coupons,  if any. Bonds and interest coupons
 5    which have  been  received  in  exchange  or  paid  shall  be
 6    cancelled and the obligation for interest, not represented by
 7    coupons  which  have been discharged, shall be evidenced by a
 8    written acknowledgement of the exchange or payment thereof.
 9        (c)  The Commission has power,  and  is  authorized  from
10    time  to  time,  to  also  issue  refunding  bonds under this
11    Section, to refund bonds at or prior  to  their  maturity  or
12    which  by  their  terms  are  subject  to  redemption  before
13    maturity,  or  both, in an amount necessary to refund (1) the
14    principal amount  of  the  bonds  to  be  refunded,  (2)  the
15    interest  to  accrue up to and including the maturity date or
16    dates thereof, and (3) the applicable redemption premiums, if
17    any. Those refunding bonds may be exchanged for not less than
18    an equal principal amount of bonds to be refunded or  may  be
19    sold and the proceeds received at the sale thereof (excepting
20    the   accrued  interest  received)   used  to  complete  such
21    refunding, including the payment of  the  costs  of  issuance
22    thereof.
23        (d)  The  bonds  shall be authorized by resolution of the
24    Commission and may be issued in one or more series, may  bear
25    such   date   or  dates,  may  be  in  such  denomination  or
26    denominations, may mature at such time or times not exceeding
27    40 years from the respective dates  thereof,  may  mature  in
28    such  amount  or  amounts,  may bear interest at such rate or
29    rates, may be in such form either coupon or registered as  to
30    principal  only  or  as  to  both principal and interest, may
31    carry such registration privileges (including the  conversion
32    of  a fully registered bond to a coupon bond or bonds and the
33    conversion of a coupon bond to a fully registered bond),  may
34    be  executed  in  such  manner,  may  be made payable in such
 
                            -3-      LRB093 11012 NHT 11673 b
 1    medium of payment, at such place or places within or  without
 2    the  State,  and  may  be subject to such terms of redemption
 3    prior to their expressed maturity, with or  without  premium,
 4    as the resolution or other resolutions may provide.  Proceeds
 5    from  the sale of the bonds may be invested as the resolution
 6    or resolutions and as the Commission from time  to  time  may
 7    provide.   All  bonds  issued under this Act shall be sold in
 8    the manner and at such price as the Commission may deem to be
 9    in the best interest  of  the  public.   The  resolution  may
10    provide  that the bonds be executed with one manual signature
11    and that other signatures may  be  printed,  lithographed  or
12    engraved thereon.
13        The  Commission shall not be authorized to create and the
14    bonds shall not in any event constitute  State  debt  of  the
15    State  of  Illinois within the meaning of the Constitution or
16    statutes of the State of Illinois, and the same shall  be  so
17    stated upon the face of each bond.  The source of payment for
18    the bonds shall be stated on the face of each bond.
19        The  issuance  of bonds under this Act is in all respects
20    for the benefit of the People of the State of  Illinois,  and
21    in  consideration  thereof  the bonds issued pursuant to this
22    Act and the income therefrom shall be free from all  taxation
23    by  the  State  or  its  political  subdivisions,  except for
24    estate, transfer, and  inheritance  taxes.  For  purposes  of
25    Section  250 of the Illinois Income Tax Act, the exemption of
26    the income from bonds issued under this Act  shall  terminate
27    after  all  of  the  bonds have been paid. The amount of such
28    income that  shall  be  added  and  then  subtracted  on  the
29    Illinois income tax return of a taxpayer, pursuant to Section
30    203  of  the  Illinois  Income Tax Act, from federal adjusted
31    gross income or federal taxable income in computing  Illinois
32    base  income  shall  be  the interest net of any bond premium
33    amortization.
34    (Source: P.A. 92-45, eff. 6-29-01.)
 
                            -4-      LRB093 11012 NHT 11673 b
 1        Section 99.  Effective date.  This Act takes effect  upon
 2    becoming law.