Full Text of HB7173 93rd General Assembly
HB7173sam001 93RD GENERAL ASSEMBLY
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Sen. Christine Radogno
Filed: 5/28/2004
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| AMENDMENT TO HOUSE BILL 7173
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| AMENDMENT NO. ______. Amend House Bill 7173 by replacing | 3 |
| everything after the enacting clause with the following:
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| "Section 5. The Fiscal Note Act is amended by changing | 5 |
| Section 1 as follows:
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| (25 ILCS 50/1) (from Ch. 63, par. 42.31)
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| Sec. 1. Every bill, except those bills making a direct | 8 |
| appropriation,
(1) the purpose or effect of which is (i) to | 9 |
| expend any State funds or
to
increase or decrease the revenues | 10 |
| of the
State, either directly or indirectly, or (ii) to require | 11 |
| the expenditure
of their own funds by, or to increase or
| 12 |
| decrease the revenues of, units
of local government, school | 13 |
| districts or community college districts, or
to revise the | 14 |
| distribution of State funds among units of local government,
| 15 |
| school districts, or community college districts, either | 16 |
| directly or
indirectly, or (2) that amends the Mental Health | 17 |
| and Developmental
Disabilities Code or the Developmental | 18 |
| Disability and Mental Disability
Services Act shall have | 19 |
| prepared for it prior to second reading in the
house of | 20 |
| introduction a brief explanatory statement or note which, for a | 21 |
| bill
under item (1), shall
include a reliable estimate of the | 22 |
| anticipated change in State, local
governmental, school | 23 |
| district, or community college district
expenditures or | 24 |
| revenues under its provisions and, for a bill under item (2),
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| shall include a reliable estimate of the fiscal impact of its | 2 |
| provisions upon
community agencies.
For purposes of this Act,
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| indirect revenues
include, but are not limited to, increased | 4 |
| tax revenues or other increased
revenues resulting from | 5 |
| economic development, job creation, or cost
reduction. The | 6 |
| statement or note shall also include an explanation of the
| 7 |
| methodology used to determine the estimated direct and indirect | 8 |
| costs or
estimated impact on community agencies. Any
notes for | 9 |
| bills having
a fiscal impact on units of local government, | 10 |
| school districts or community
college districts shall include | 11 |
| such cost estimates as may be required under
the State Mandates | 12 |
| Act.
| 13 |
| If a bill authorizes capital expenditures or appropriates | 14 |
| funds for
capital expenditures, a statement shall be prepared | 15 |
| by the
Governor's Office of Management and Budget
Bureau of the
| 16 |
| Budget specifying by year any principal and interest payments | 17 |
| required
to finance such capital expenditures.
| 18 |
| If a bill authorizes the issuance of Bonds, a statement or | 19 |
| note shall be prepared by the Governor's Office of Management | 20 |
| and Budget specifying the estimated total principal and | 21 |
| interest payments (assuming interest is paid at a fixed rate) | 22 |
| if all of the Bonds authorized were issued. The statement or | 23 |
| note shall include the total principal on all other | 24 |
| then-outstanding Bonds of the State.
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| These statements or notes shall be known as "fiscal notes".
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| (Source: P.A. 92-567, eff. 1-1-03; revised 8-23-03.)
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| Section 10. The State Debt Impact Note Act is amended by | 28 |
| changing Section 4 as follows:
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| (25 ILCS 65/4) (from Ch. 63, par. 42.74)
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| Sec. 4. The State Debt Impact Note shall be factual in | 31 |
| nature and as
brief and concise as possible. For bills which | 32 |
| would appropriate from bond
funds, the note shall provide a |
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| reliable estimate of the impact of the bill
on the State's debt | 2 |
| service requirements; a description of the estimated
useful | 3 |
| life and intended use of the project; and maintenance and | 4 |
| operating
costs associated with the project. For bills which | 5 |
| would add new or increase
existing bond authorization levels | 6 |
| the note shall assess current outstanding,
unissued, and | 7 |
| retired bond authorization levels and make reasonable | 8 |
| projections
of the cost associated with the retirement of the | 9 |
| additional bonds. The estimated costs shall specify the | 10 |
| estimated total principal and interest payments (assuming | 11 |
| interest is paid at a fixed rate) if all of the Bonds | 12 |
| authorized were issued. The statement or note shall include the | 13 |
| total principal on all other then-outstanding Bonds of the | 14 |
| State. A brief
summary or work sheet of computations used in | 15 |
| arriving at State Debt Impact
Notes shall be attached.
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| (Source: P.A. 81-615.)
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| Section 15. The General Obligation Bond Act is amended by | 18 |
| changing Sections 2, 8, 9, 11, and 16 and by adding Sections | 19 |
| 2.5 and 21 as follows:
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| (30 ILCS 330/2) (from Ch. 127, par. 652)
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| Sec. 2. Authorization for Bonds. The State of Illinois is | 22 |
| authorized to
issue, sell and provide for the retirement of | 23 |
| General Obligation Bonds of
the State of Illinois for the | 24 |
| categories and specific purposes expressed in
Sections 2 | 25 |
| through 8 of this Act, in the total amount of $27,658,149,369.
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| The bonds authorized in this Section 2 and in Section 16 of | 27 |
| this Act are
herein called "Bonds".
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| Of the total amount of Bonds authorized in this Act, up to | 29 |
| $2,200,000,000
in aggregate original principal amount may be | 30 |
| issued and sold in accordance
with the Baccalaureate Savings | 31 |
| Act in the form of General Obligation
College Savings Bonds.
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| Of the total amount of Bonds authorized in this Act, up to |
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| $300,000,000 in
aggregate original principal amount may be | 2 |
| issued and sold in accordance
with the Retirement Savings Act | 3 |
| in the form of General Obligation
Retirement Savings Bonds.
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| Of the total amount of Bonds authorized in this Act, the | 5 |
| additional
$10,000,000,000 authorized by this amendatory Act | 6 |
| of the 93rd General
Assembly shall be used solely as provided | 7 |
| in Section 7.2.
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| The issuance and sale of Bonds pursuant to the General | 9 |
| Obligation Bond
Act is an economical and efficient method of | 10 |
| financing the long-term capital and
general operating needs of
| 11 |
| the State. This Act will permit the issuance of a multi-purpose | 12 |
| General
Obligation Bond with uniform terms and features. This | 13 |
| will not only lower
the cost of registration but also reduce | 14 |
| the overall cost of issuing debt
by improving the marketability | 15 |
| of Illinois General Obligation Bonds.
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| (Source: P.A. 92-13, eff. 6-22-01; 92-596, eff. 6-28-02; | 17 |
| 92-598, eff.
6-28-02; 93-2, eff. 4-7-03.)
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| (30 ILCS 330/2.5 new) | 19 |
| Sec. 2.5. Limitation on issuance of Bonds. | 20 |
| (a) Except as provided in subsection (b), no Bonds may be | 21 |
| issued under this Act if, after the issuance, in the next State | 22 |
| fiscal year after the issuance, the amount of debt service | 23 |
| (including principal and interest) on all then-outstanding | 24 |
| Bonds issued under this Act would exceed 7% of the aggregate | 25 |
| appropriations from the general funds (which consist of the | 26 |
| General Revenue Fund, the Common School Fund, the General | 27 |
| Revenue Common School Special Account Fund, and the Education | 28 |
| Assistance Fund) and the Road Fund for the fiscal year | 29 |
| immediately prior to the fiscal year of the issuance. | 30 |
| (b) If the Comptroller and Treasurer each consent in | 31 |
| writing, Bonds may be issued under this Act even if the | 32 |
| issuance does not comply with subsection (a).
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| (30 ILCS 330/8) (from Ch. 127, par. 658)
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| Sec. 8. Bond sale expenses ;
capitalized interest . | 3 |
| (a) All
An amount not to exceed
0.5 percent of the
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| principal amount of the proceeds of sale of each bond sale is | 5 |
| authorized
to be used to pay the reasonable costs of issuance | 6 |
| and sale , including without limitation underwriter's discounts | 7 |
| and fees, of State of
Illinois general obligation bonds | 8 |
| authorized and sold pursuant to this Act shall be paid from | 9 |
| funds appropriated for that purpose . | 10 |
| (b) The Director of the Governor's Office of Management and | 11 |
| Budget shall not contract with any underwriter, bond counsel, | 12 |
| or financial advisor unless that underwriter, bond counsel, or | 13 |
| financial advisor certifies that the underwriter, bond | 14 |
| counsel, or financial advisor has not and will not pay a | 15 |
| contingent fee to any party for having promoted the selection | 16 |
| of the underwriter, bond counsel, or financial advisor for that | 17 |
| contract.
The Bond Sale Order may provide for a portion of the | 18 |
| proceeds of
the bond sale, representing up to 12 months' | 19 |
| interest on the bonds, to be
deposited directly into the | 20 |
| capitalized interest account of the General
Obligation Bond | 21 |
| Retirement and Interest Fund.
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| (Source: P.A. 93-2, eff. 4-7-03.)
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| (30 ILCS 330/9) (from Ch. 127, par. 659)
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| Sec. 9. Conditions for Issuance and Sale of Bonds - | 25 |
| Requirements for
Bonds.
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| (a) Except as otherwise provided in this subsection, bonds
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| Bonds shall be issued and sold from time to time, in one or
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| more series, in such amounts and at such prices as may be | 29 |
| directed by the
Governor, upon recommendation by the Director | 30 |
| of the
Governor's Office of Management and Budget.
Bonds shall | 31 |
| be in such form (either coupon, registered or book entry), in
| 32 |
| such denominations, payable within 25
30 years from their date, | 33 |
| subject to such
terms of redemption with or without premium, |
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| bear interest payable at
such times and at such fixed or | 2 |
| variable rate or rates, and be dated
as shall be fixed and | 3 |
| determined by the Director of
the
Governor's Office of | 4 |
| Management and Budget
in the order authorizing the issuance and | 5 |
| sale
of any series of Bonds, which order shall be approved by | 6 |
| the Governor
and is herein called a "Bond Sale Order"; provided | 7 |
| however, that interest
payable at fixed or variable rates shall | 8 |
| not exceed that permitted in the
Bond Authorization Act, as now | 9 |
| or hereafter amended. Bonds shall be
payable at such place or | 10 |
| places, within or without the State of Illinois, and
may be | 11 |
| made registrable as to either principal or as to both principal | 12 |
| and
interest, as shall be specified in the Bond Sale Order. | 13 |
| Bonds may be callable
or subject to purchase and retirement or | 14 |
| tender and remarketing as fixed
and determined in the Bond Sale | 15 |
| Order. Bonds must be offered for sale with principal or | 16 |
| mandatory redemption amounts in substantially equal amounts, | 17 |
| with the first maturity offered for sale occurring within the | 18 |
| fiscal year in which the Bonds are offered or within the next | 19 |
| succeeding fiscal year, with Bonds offered for sale maturing or | 20 |
| subject to mandatory redemption each fiscal year thereafter up | 21 |
| to 25 years.
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| In the case of any series of Bonds bearing interest at a | 23 |
| variable interest
rate ("Variable Rate Bonds"), in lieu of | 24 |
| determining the rate or rates at which
such series of Variable | 25 |
| Rate Bonds shall bear interest and the price or prices
at which | 26 |
| such Variable Rate Bonds shall be initially sold or remarketed | 27 |
| (in the
event of purchase and subsequent resale), the Bond Sale | 28 |
| Order may provide that
such interest rates and prices may vary | 29 |
| from time to time depending on criteria
established in such | 30 |
| Bond Sale Order, which criteria may include, without
| 31 |
| limitation, references to indices or variations in interest | 32 |
| rates as may, in
the judgment of a remarketing agent, be | 33 |
| necessary to cause Variable Rate Bonds
of such series to be | 34 |
| remarketable from time to time at a price equal to their
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| principal amount, and may provide for appointment of a bank, | 2 |
| trust company,
investment bank, or other financial institution | 3 |
| to serve as remarketing agent
in that connection.
The Bond Sale | 4 |
| Order may provide that alternative interest rates or provisions
| 5 |
| for establishing alternative interest rates, different | 6 |
| security or claim
priorities, or different call or amortization | 7 |
| provisions will apply during
such times as Variable Rate Bonds | 8 |
| of any series are held by a person providing
credit or | 9 |
| liquidity enhancement arrangements for such Bonds as | 10 |
| authorized in
subsection (b) of this Section.
The Bond Sale | 11 |
| Order may also provide for such variable interest rates to be
| 12 |
| established pursuant to a process generally known as an auction | 13 |
| rate process
and may provide for appointment of one or more | 14 |
| financial institutions to serve
as auction agents and | 15 |
| broker-dealers in connection with the establishment of
such | 16 |
| interest rates and the sale and remarketing of such Bonds.
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| (b) In connection with the issuance of any series of Bonds, | 18 |
| the State may
enter into arrangements to provide additional | 19 |
| security and liquidity for such
Bonds, including, without | 20 |
| limitation, bond or interest rate insurance or
letters of | 21 |
| credit, lines of credit, bond purchase contracts, or other
| 22 |
| arrangements whereby funds are made available to retire or | 23 |
| purchase Bonds,
thereby assuring the ability of owners of the | 24 |
| Bonds to sell or redeem their
Bonds. The State may enter into | 25 |
| contracts and may agree to pay fees to persons
providing such | 26 |
| arrangements, but only under circumstances where the Director | 27 |
| of
the
Governor's Office of Management and Budget certifies | 28 |
| that he or she reasonably expects the total
interest paid or to | 29 |
| be paid on the Bonds, together with the fees for the
| 30 |
| arrangements (being treated as if interest), would not, taken | 31 |
| together, cause
the Bonds to bear interest, calculated to their | 32 |
| stated maturity, at a rate in
excess of the rate that the Bonds | 33 |
| would bear in the absence of such
arrangements.
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| The State may, with respect to Bonds issued or anticipated |
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| to be issued,
participate in and enter into arrangements with | 2 |
| respect to interest rate
protection or exchange agreements, | 3 |
| guarantees, or financial futures contracts
for the purpose of | 4 |
| limiting, reducing, or managing interest rate exposure.
The | 5 |
| authority granted under this paragraph, however, shall not | 6 |
| increase the principal amount of Bonds authorized to be issued | 7 |
| by law. The arrangements may be executed and delivered by the | 8 |
| Director
of the
Governor's Office of Management and Budget on | 9 |
| behalf of the State. Net payments for such
arrangements shall | 10 |
| constitute interest on the Bonds and shall be paid from the
| 11 |
| General Obligation Bond Retirement and Interest Fund. The | 12 |
| Director of the
Governor's Office of Management and Budget | 13 |
| shall at least annually certify to the Governor and
the
State | 14 |
| Comptroller his or her estimate of the amounts of such net | 15 |
| payments to
be included in the calculation of interest required | 16 |
| to be paid by the State.
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| (c) Prior to the issuance of any Variable Rate Bonds | 18 |
| pursuant to
subsection (a), the Director of the
Governor's | 19 |
| Office of Management and Budget shall adopt an
interest rate | 20 |
| risk management policy providing that the amount of the State's
| 21 |
| variable rate exposure with respect to Bonds shall not exceed | 22 |
| 20%. This policy
shall remain in effect while any Bonds are | 23 |
| outstanding and the issuance of
Bonds
shall be subject to the | 24 |
| terms of such policy. The terms of this policy may be
amended | 25 |
| from time to time by the Director of the
Governor's Office of | 26 |
| Management and Budget but in no
event shall any amendment cause | 27 |
| the permitted level of the State's variable
rate exposure with | 28 |
| respect to Bonds to exceed 20%.
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| (Source: P.A. 92-16, eff. 6-28-01; 93-9, eff. 6-3-03; 93-666, | 30 |
| eff. 3-5-04.)
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| (30 ILCS 330/11) (from Ch. 127, par. 661)
| 32 |
| Sec. 11. Sale of Bonds. Bonds , except as otherwise provided | 33 |
| in this Section, shall be sold from time to time pursuant to
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| notice of sale and public bid or by negotiated sale in such | 2 |
| amounts and at such
times as is directed by the Governor, upon | 3 |
| recommendation by the Director of
the
Governor's Office of | 4 |
| Management and Budget
Bureau of the Budget .
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| If more than half of the proceeds of an issue of Bonds to | 6 |
| be offered for sale is expected to be used for refunding | 7 |
| purposes or if more than half of the principal amount of Bonds | 8 |
| is offered for sale with a variable rate, the entire issue of | 9 |
| the Bonds may be sold pursuant to notice of sale and public bid | 10 |
| or by negotiated sale. The
any Bonds, including refunding | 11 |
| Bonds, are to be sold by negotiated
sale, the Director of the
| 12 |
| Governor's Office of Management and Budget
Bureau of the Budget
| 13 |
| shall comply with the
competitive sealed bidding or competitive | 14 |
| request for proposal process , as applicable, set forth in the | 15 |
| Illinois
Procurement Code and all other applicable | 16 |
| requirements of that Code.
| 17 |
| If Bonds are to be sold pursuant to notice of sale and | 18 |
| public bid, in addition to the requirements of the Illinois | 19 |
| Procurement Code, the
Director of the
Governor's Office of | 20 |
| Management and Budget
Bureau
of the Budget shall, from time to | 21 |
| time, as Bonds are to be sold, advertise
the sale of the Bonds | 22 |
| in at least 2
two daily newspapers, one of which is
published | 23 |
| in the City of Springfield and one in the City of Chicago. The | 24 |
| sale
of the Bonds shall also be
advertised in the volume of the | 25 |
| Illinois Procurement Bulletin that is
published by the | 26 |
| Department of Central Management Services. Each of
the | 27 |
| advertisements for
proposals shall be published once at least | 28 |
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10 days prior to the date fixed
for the opening of the bids. | 29 |
| The Director of the
Governor's Office of Management and Budget
| 30 |
| Bureau of the Budget may
reschedule the date of sale upon the | 31 |
| giving of such additional notice as the
Director deems adequate | 32 |
| to inform prospective bidders of
such change; provided, | 33 |
| however, that all other conditions of the sale shall
continue | 34 |
| as originally advertised.
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| Executed Bonds shall, upon payment therefor, be delivered | 2 |
| to the purchaser,
and the proceeds of Bonds shall be paid into | 3 |
| the State Treasury as directed by
Section 12 of this Act.
| 4 |
| (Source: P.A. 91-39, eff. 6-15-99; revised 8-23-03.)
| 5 |
| (30 ILCS 330/16) (from Ch. 127, par. 666)
| 6 |
| Sec. 16. Refunding Bonds. The State of Illinois is | 7 |
| authorized to issue,
sell, and provide for the retirement of | 8 |
| General Obligation Bonds of the State
of Illinois in the amount | 9 |
| of $2,839,025,000, at any time and
from time to time | 10 |
| outstanding, for the purpose of refunding
any State of Illinois | 11 |
| general obligation Bonds then outstanding, including
the | 12 |
| payment of any redemption premium thereon, any reasonable | 13 |
| expenses of
such refunding, any interest accrued or to accrue | 14 |
| to the earliest
or any subsequent date of redemption or | 15 |
| maturity of such outstanding
Bonds and any interest to accrue | 16 |
| to the first interest payment on the
refunding Bonds; provided | 17 |
| that all Bonds in an issue that includes
such refunding Bonds | 18 |
| shall mature no later
than the final maturity date of Bonds | 19 |
| being refunded ; provided that no refunding Bonds shall be | 20 |
| offered for sale unless the net present value of savings to be | 21 |
| achieved by the issuance of the refunding Bonds is 3% or more | 22 |
| of the amount of the refunding Bonds to be issued; and further | 23 |
| provided that no refunding Bonds shall be offered for sale that | 24 |
| are expected to refund Bonds under a refunding plan that would | 25 |
| have the effect of decreasing the State's principal payments on | 26 |
| all Bonds in the fiscal year in which the refunding Bonds are | 27 |
| offered or in the next succeeding fiscal year by a total of | 28 |
| more than 5% of the principal or redemption amounts due on all | 29 |
| then-outstanding Bonds in the fiscal year next succeeding the | 30 |
| fiscal year in which the refunding Bonds are offered .
| 31 |
| If more than half of the proceeds of an issue of Bonds to | 32 |
| be offered for sale are expected to be used for refunding | 33 |
| purposes, those
Refunding Bonds may be sold from time to time |
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| pursuant to notice of sale
and public bid or by negotiated sale
| 2 |
| in such amounts and at such times, as
directed by the Governor, | 3 |
| upon recommendation by the Director of the
Governor's Office of | 4 |
| Management and Budget
Bureau
of the Budget . The Governor shall | 5 |
| notify the State Treasurer and
Comptroller of such refunding. | 6 |
| The proceeds received from the sale
of refunding Bonds shall be | 7 |
| used for the retirement at maturity or
redemption of such | 8 |
| outstanding Bonds on any maturity or redemption date
and, | 9 |
| pending such use, shall be placed in escrow, subject to such | 10 |
| terms and
conditions as shall be provided for in the Bond Sale | 11 |
| Order relating to the
Refunding Bonds. Proceeds not needed for | 12 |
| deposit in an escrow account shall
be deposited in the General | 13 |
| Obligation Bond Retirement and Interest Fund.
This Act shall | 14 |
| constitute an irrevocable and continuing appropriation of all
| 15 |
| amounts necessary to establish an escrow account for the | 16 |
| purpose of refunding
outstanding general obligation Bonds and | 17 |
| to pay the reasonable expenses of such
refunding and of the | 18 |
| issuance and sale of the refunding Bonds. Any such
escrowed | 19 |
| proceeds may be invested and reinvested
in direct obligations | 20 |
| of the United States of America, maturing at such
time or times | 21 |
| as shall be appropriate to assure the
prompt payment, when due, | 22 |
| of the principal of and interest and redemption
premium, if | 23 |
| any,
on the refunded Bonds. After the terms of the escrow have | 24 |
| been fully
satisfied, any remaining balance of such proceeds | 25 |
| and interest, income and
profits earned or realized on the | 26 |
| investments thereof shall be paid into
the General Revenue | 27 |
| Fund. The liability of the State upon the Bonds shall
continue, | 28 |
| provided that the holders thereof shall thereafter be entitled | 29 |
| to
payment only out of the moneys deposited in the escrow | 30 |
| account.
| 31 |
| Except as otherwise herein provided in this Section, such | 32 |
| refunding Bonds
shall in all other respects be subject to the | 33 |
| terms and conditions of this Act.
| 34 |
| (Source: P.A. 91-39, eff. 6-15-99; 91-53, eff. 6-30-99; 91-710, |
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| eff.
5-17-00; revised 8-23-03.)
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| (30 ILCS 330/21 new) | 3 |
| Sec. 21. Truth in borrowing disclosures. | 4 |
| (a) Within 10 days after the issuance of any Bonds under | 5 |
| this Act, the Director of the Governor's Office of Management | 6 |
| and Budget shall publish a truth in borrowing disclosure that | 7 |
| discloses the total principal and interest payments to be paid | 8 |
| on the Bonds over the full stated term of the Bonds. The | 9 |
| disclosure also shall include principal and interest payments | 10 |
| to be made by each fiscal year over the full stated term of the | 11 |
| Bonds and total principal and interest payments to be made by | 12 |
| each fiscal year on all other outstanding Bonds issued under | 13 |
| this Act over the full stated terms of those Bonds. | 14 |
| (b) Within 10 days after the issuance of any refunding | 15 |
| bonds under Section 16 of this Act, the Director of the | 16 |
| Governor's Office of Management and Budget shall publish a | 17 |
| truth in borrowing disclosure that discloses the estimated | 18 |
| present-valued savings to be obtained through the refunding, in | 19 |
| total and by each fiscal year that the refunding Bonds may be | 20 |
| outstanding.
| 21 |
| (c) The disclosures required in subsections (a) and (b) | 22 |
| shall be published by posting the disclosures for no less than | 23 |
| 30 days on the web site of the Governor's Office of Management | 24 |
| and Budget and by providing the disclosures in written form to | 25 |
| the Illinois Economic and Fiscal Commission. These disclosures | 26 |
| shall be calculated assuming Bonds are not redeemed or refunded | 27 |
| prior to their stated maturities. Amounts included in these | 28 |
| disclosures as payment of interest on variable rate Bonds shall | 29 |
| be the maximum amounts of interest that may be payable during | 30 |
| each fiscal year, after taking into account any credits | 31 |
| permitted in the related indenture or other instrument against | 32 |
| the amount of such interest for each fiscal year. Amounts | 33 |
| included in these disclosures as payment of interest on |
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| variable rate Bonds shall include the amounts certified by the | 2 |
| Director of the Governor's Office of Management and Budget | 3 |
| under subsection (b) of Section 9 of this Act.
| 4 |
| Section 20. The Build Illinois Bond Act is amended by | 5 |
| changing Sections 3, 5, 6, 8, and 15 and by adding Section 8.5 | 6 |
| as follows:
| 7 |
| (30 ILCS 425/3) (from Ch. 127, par. 2803)
| 8 |
| Sec. 3. Findings. The General Assembly hereby makes the | 9 |
| following
findings and determinations:
| 10 |
| (a) The issuance and sale of Bonds pursuant to this
Act is | 11 |
| an economical and efficient method of financing long-term | 12 |
| capital needs, including certain of the purposes
of the State, | 13 |
| as set forth in Section 4 hereof.
| 14 |
| (b) This Act will permit the issuance of Bonds, from time | 15 |
| to time, for
various purposes and with varying terms, features | 16 |
| and conditions in order
to enhance marketability and lower | 17 |
| interest costs incurred by the State.
Subsection (a) of Section | 18 |
| 6 of this Act authorizes the issuance, from time to
time, of
| 19 |
| Bonds in one or more series, in such principal amounts, bearing | 20 |
| interest at
such fixed rates or variable rates and having such | 21 |
| other terms and
provisions as designated State officers may fix | 22 |
| and determine pursuant to
the authority delegated under this | 23 |
| Act. Subsection (b) of Section 6 of this
Act
authorizes, in | 24 |
| connection with the issuance of and as security for any
series | 25 |
| of Bonds, the purchase of bond or interest rate insurance, the
| 26 |
| establishment of credit and liquidity enhancement arrangements | 27 |
| with
financial institutions, and participation in interest | 28 |
| rate swaps or
guarantee agreements or other arrangements to | 29 |
| limit interest rate risk.
| 30 |
| (c) The financing of the facilities and other purposes | 31 |
| described in
Section 4 of this Act through the issuance of | 32 |
| Bonds will involve numerous
expenditures over extended periods |
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| of time, all of which expenditures shall
be made only pursuant | 2 |
| to and in conformity with appropriations from Bond
proceeds by | 3 |
| the General Assembly prior to the making of such expenditures.
| 4 |
| (d) Determinations with respect to (i) advantageous timing | 5 |
| and amounts
of such expenditures for particular approved | 6 |
| facilities or purposes, (ii)
establishing an advantageous mix | 7 |
| of short-term and long-term
debt instruments under bond market | 8 |
| conditions prevailing from time to time,
and (iii) specific | 9 |
| allocations of Bond proceeds to particular facilities
and | 10 |
| purposes should be based upon financial, engineering and | 11 |
| construction
management judgments made from time to time.
| 12 |
| (e) The State's ability to issue Bonds from time to time, | 13 |
| without
further action by the General Assembly, in separate | 14 |
| series, in various
principal amounts and with various interest | 15 |
| rates, maturities, redemption
provisions and other terms will | 16 |
| enhance the State's opportunities to obtain
such financing as | 17 |
| needed, upon favorable terms.
| 18 |
| In order to provide for flexibility in meeting the | 19 |
| financial, engineering
and construction needs of the State and | 20 |
| its agencies and departments and in
order to provide continuing | 21 |
| and adequate financing for the aforesaid
purposes on favorable | 22 |
| terms, the delegations of authority to the Governor,
the | 23 |
| Director of the
Governor's Office of Management and Budget
| 24 |
| Bureau of the Budget , the State Comptroller, the State
| 25 |
| Treasurer and other officers
of the State which are contained | 26 |
| in this Act are necessary and desirable
because this General | 27 |
| Assembly cannot itself as understandingly,
advantageously, | 28 |
| expeditiously or conveniently exercise such authority and
make | 29 |
| such specific determinations.
| 30 |
| (Source: P.A. 84-111; revised 8-23-03.)
| 31 |
| (30 ILCS 425/5) (from Ch. 127, par. 2805)
| 32 |
| Sec. 5. Bond Sale Expenses. | 33 |
| (a) An amount necessary to pay the
reasonable costs of each |
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| issuance and sale of Bonds authorized and sold
pursuant to this | 2 |
| Act, including , without limitation, underwriter's discounts | 3 |
| and fees, advertising, printing, bond rating, travel,
| 4 |
| security, delivery, legal and financial advisory services, | 5 |
| insurance, initial fees
of trustees, registrars, paying agents | 6 |
| and other fiduciaries, initial costs
of credit or liquidity | 7 |
| enhancement arrangements, initial fees of indexing
and | 8 |
| remarketing agents, and initial costs of interest rate swaps,
| 9 |
| guarantees or arrangements to limit interest rate risk, as | 10 |
| determined in
the related Bond Sale Order, shall
is hereby | 11 |
| authorized to be paid from funds appropriated for that purpose
| 12 |
| the proceeds of each Bond sale .
| 13 |
| (b) The Director of the Governor's Office of Management and | 14 |
| Budget shall not contract with any underwriter, bond counsel, | 15 |
| or financial advisor unless that underwriter, bond counsel, or | 16 |
| financial advisor certifies that the underwriter, bond | 17 |
| counsel, or financial advisor has not and will not pay a | 18 |
| contingent fee to any party for having promoted the selection | 19 |
| of the underwriter, bond counsel, or financial advisor for that | 20 |
| contract. | 21 |
| (Source: P.A. 84-111.)
| 22 |
| (30 ILCS 425/6) (from Ch. 127, par. 2806)
| 23 |
| Sec. 6. Conditions for Issuance and Sale of Bonds - | 24 |
| Requirements for
Bonds - Master and Supplemental Indentures - | 25 |
| Credit and Liquidity
Enhancement. (a) Bonds shall be issued and | 26 |
| sold from time to time, in one
or more series, in such amounts | 27 |
| and at such prices as directed by the
Governor, upon | 28 |
| recommendation by the Director of the
Governor's Office of | 29 |
| Management and Budget
Bureau of the Budget .
Bonds shall be | 30 |
| payable only from the specific sources and secured in the
| 31 |
| manner provided in this Act. Bonds shall be in such form, in | 32 |
| such
denominations, mature on such dates within 25
30 years | 33 |
| from their date of
issuance, be subject to optional or |
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| mandatory redemption, bear interest
payable at such times and | 2 |
| at such rate or rates, fixed or variable, and be
dated as shall | 3 |
| be fixed and determined by the Director of the
Governor's | 4 |
| Office of Management and Budget
Bureau of the
Budget
in an | 5 |
| order authorizing the
issuance and sale of any series of
Bonds, | 6 |
| which order shall be approved by the Governor and is herein | 7 |
| called a
"Bond Sale Order"; provided, however, that interest | 8 |
| payable at fixed rates
shall not exceed that permitted in "An | 9 |
| Act to authorize public corporations
to issue bonds, other | 10 |
| evidences of indebtedness and tax anticipation
warrants | 11 |
| subject to interest rate limitations set forth therein", | 12 |
| approved
May 26, 1970, as now or hereafter amended, and | 13 |
| interest payable at variable
rates shall not exceed the maximum | 14 |
| rate permitted in the Bond Sale Order.
Said Bonds shall be | 15 |
| payable at such place or places, within or without the
State of | 16 |
| Illinois,
and may be made registrable
as to either principal | 17 |
| only or as to both principal and interest, as shall
be | 18 |
| specified in the Bond Sale
Order. Bonds may be callable or | 19 |
| subject to purchase and retirement or
remarketing as fixed and | 20 |
| determined in the Bond Sale Order. Bonds must be offered for | 21 |
| sale with principal or mandatory redemption amounts in | 22 |
| substantially equal amounts, with the first maturity offered | 23 |
| for sale occurring within the fiscal year in which the Bonds | 24 |
| are offered or within the next succeeding fiscal year, with | 25 |
| Bonds offered for sale maturing or subject to mandatory | 26 |
| redemption each fiscal year thereafter up to 25 years.
| 27 |
| All Bonds authorized under this Act shall be issued | 28 |
| pursuant
to a master trust indenture ("Master Indenture") | 29 |
| executed and delivered on
behalf of the State by the Director | 30 |
| of the
Governor's Office of Management and Budget
Bureau of the | 31 |
| Budget , such
Master Indenture to be in substantially the form | 32 |
| approved in the Bond Sale
Order authorizing the issuance and | 33 |
| sale of the initial series of Bonds
issued under this Act. Such | 34 |
| initial series of Bonds may, and each
subsequent series of |
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| Bonds shall, also be issued pursuant to a supplemental
trust | 2 |
| indenture ("Supplemental Indenture") executed and delivered on | 3 |
| behalf
of the State by the Director of the
Governor's Office of | 4 |
| Management and Budget
Bureau of the Budget , each such
| 5 |
| Supplemental
Indenture to be in substantially the form approved | 6 |
| in the Bond Sale Order
relating to such series. The Master | 7 |
| Indenture and any Supplemental
Indenture shall be entered into | 8 |
| with a bank or trust company in the State
of Illinois having | 9 |
| trust powers and possessing capital and surplus of not
less | 10 |
| than $100,000,000. Such indentures shall set forth the terms | 11 |
| and
conditions of the Bonds and provide for payment of and | 12 |
| security for the
Bonds, including the establishment and | 13 |
| maintenance of debt service and
reserve funds, and for other | 14 |
| protections for holders of the Bonds.
The term "reserve funds" | 15 |
| as used in this Act shall include funds and
accounts | 16 |
| established under indentures to provide for the payment of
| 17 |
| principal of and premium and interest on Bonds, to provide for | 18 |
| the purchase,
retirement or defeasance of Bonds, to provide for | 19 |
| fees of
trustees, registrars, paying agents and other | 20 |
| fiduciaries and to provide
for payment of costs of and debt | 21 |
| service payable in respect of credit or
liquidity enhancement | 22 |
| arrangements, interest rate swaps or guarantees or
financial | 23 |
| futures contracts and
indexing and remarketing agents' | 24 |
| services.
| 25 |
| In the case of any series of Bonds bearing interest at a | 26 |
| variable
interest rate ("Variable Rate Bonds"), in lieu of | 27 |
| determining the rate or
rates at which such series of Variable | 28 |
| Rate Bonds shall bear interest and
the price or prices
at which | 29 |
| such Variable Rate Bonds shall be initially sold or remarketed | 30 |
| (in
the event of purchase and subsequent resale), the Bond
Sale | 31 |
| Order may provide that such interest rates and prices may vary | 32 |
| from time to time
depending on criteria established in such | 33 |
| Bond Sale Order, which criteria
may include, without | 34 |
| limitation, references to indices or variations in
interest |
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| rates as may, in the judgment of a remarketing agent, be
| 2 |
| necessary to cause Bonds of such series to be remarketable from | 3 |
| time to
time at a price equal to their principal amount (or | 4 |
| compound accreted
value in the case of original issue discount | 5 |
| Bonds), and may provide for
appointment of indexing agents and | 6 |
| a bank, trust company,
investment bank or other financial | 7 |
| institution to serve as remarketing
agent in that connection. | 8 |
| The Bond Sale Order may provide that alternative
interest rates | 9 |
| or provisions for establishing alternative interest rates,
| 10 |
| different security or claim priorities or different call or | 11 |
| amortization provisions
will apply during such times as Bonds | 12 |
| of any series are held by a person
providing credit or | 13 |
| liquidity enhancement arrangements for such Bonds as
| 14 |
| authorized in subsection (b) of Section 6 of this Act.
| 15 |
| (b) In connection with the issuance of any series of Bonds, | 16 |
| the State
may enter into arrangements to provide additional | 17 |
| security and liquidity
for such Bonds, including, without | 18 |
| limitation, bond or interest rate
insurance or letters of | 19 |
| credit, lines of credit, bond purchase contracts or
other | 20 |
| arrangements whereby funds are made
available to retire or | 21 |
| purchase Bonds, thereby assuring the ability of
owners of the | 22 |
| Bonds to sell or redeem their Bonds.
The State may enter into | 23 |
| contracts and may agree to pay fees to persons
providing such | 24 |
| arrangements, but only under circumstances where the
Director | 25 |
| of the Bureau of the Budget
(now Governor's Office of | 26 |
| Management and Budget)
certifies that he reasonably expects
the | 27 |
| total interest paid or to be paid on the Bonds, together with | 28 |
| the fees
for the arrangements (being treated as if interest), | 29 |
| would not, taken
together, cause the Bonds to bear interest, | 30 |
| calculated to their stated
maturity, at a rate in excess of the | 31 |
| rate which the Bonds would bear in the
absence of such | 32 |
| arrangements. Any bonds, notes or other evidences of
| 33 |
| indebtedness issued pursuant to any such arrangements for the | 34 |
| purpose of
retiring and discharging outstanding Bonds
shall |
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| constitute refunding Bonds
under Section 15 of this Act. The | 2 |
| State may participate in and enter
into arrangements with | 3 |
| respect to interest rate swaps or guarantees or
financial | 4 |
| futures contracts for the
purpose of limiting or restricting | 5 |
| interest rate risk; provided
that such arrangements shall be | 6 |
| made with or executed through banks
having capital and surplus | 7 |
| of not less than $100,000,000 or insurance
companies holding | 8 |
| the
highest policyholder rating accorded insurers by A.M. Best & | 9 |
| Co. or any
comparable rating service or government bond | 10 |
| dealers reporting to, trading
with, and recognized as primary | 11 |
| dealers by a Federal Reserve Bank and
having capital and | 12 |
| surplus of not less than $100,000,000,
or other persons whose
| 13 |
| debt securities are rated in the highest long-term categories | 14 |
| by both
Moody's Investors' Services, Inc. and Standard & Poor's | 15 |
| Corporation.
Agreements incorporating any of the foregoing | 16 |
| arrangements may be executed
and delivered by the Director of | 17 |
| the
Governor's Office of Management and Budget
Bureau of the | 18 |
| Budget on behalf of the
State in substantially the form | 19 |
| approved in the Bond Sale Order relating to
such Bonds.
| 20 |
| (Source: P.A. 84-111; revised 8-23-03.)
| 21 |
| (30 ILCS 425/8) (from Ch. 127, par. 2808)
| 22 |
| Sec. 8. Sale of Bonds. Bonds, except as otherwise provided | 23 |
| in this Section, shall be sold from time to time pursuant to
| 24 |
| notice of sale and public bid in such amounts and at such
times | 25 |
| as are directed by the Governor, upon recommendation by the | 26 |
| Director of
the Governor's Office of Management and Budget. | 27 |
| If more than half of the proceeds of an issue of Bonds to | 28 |
| be offered for sale is expected to be used for refunding | 29 |
| purposes or if more than half of the principal amount of Bonds | 30 |
| is offered for sale with a variable rate, the entire issue of | 31 |
| the Bonds may be sold pursuant to notice of sale and public bid | 32 |
| or by negotiated sale. The Director of the
Governor's Office of | 33 |
| Management and Budget shall comply with the
competitive sealed |
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| bidding or competitive request for proposal process, as | 2 |
| applicable, set forth in the Illinois
Procurement Code and all | 3 |
| other applicable requirements of that Code. | 4 |
| If Bonds are to be sold pursuant to notice of sale and | 5 |
| public bid, in addition to the requirements of the Illinois | 6 |
| Procurement Code, the
Director of the
Governor's Office of | 7 |
| Management and Budget shall, from time to time, as Bonds are to | 8 |
| be sold, advertise
the sale of the Bonds in at least 2 daily | 9 |
| newspapers, one of which is
published in the City of | 10 |
| Springfield and one in the City of Chicago. The sale
of the | 11 |
| Bonds shall also be
advertised in the volume of the Illinois | 12 |
| Procurement Bulletin that is
published by the Department of | 13 |
| Central Management Services. Each of
the advertisements for
| 14 |
| proposals shall be published once at least 14 days prior to the | 15 |
| date fixed
for the opening of the bids. The Director of the
| 16 |
| Governor's Office of Management and Budget may
reschedule the | 17 |
| date of sale upon the giving of such additional notice as the
| 18 |
| Director deems adequate to inform prospective bidders of
the | 19 |
| change; provided, however, that all other conditions of the | 20 |
| sale shall
continue as originally advertised.
Bonds shall be | 21 |
| sold from time to time
pursuant to advertised notice of sale
| 22 |
| and public bid or by negotiated sale as the Director of the
| 23 |
| Bureau of the
Budget shall, in his sole discretion, determine | 24 |
| in order to market the
Bonds in an economic, effective manner.
| 25 |
| Executed Bonds shall, upon payment
therefor, be delivered to | 26 |
| the purchaser, and the proceeds of Bonds shall be
paid into the | 27 |
| State Treasury as
directed by Section 9 of this Act.
The
| 28 |
| Governor or the Director of the
Governor's Office of Management | 29 |
| and Budget
Bureau of the Budget is hereby authorized
and | 30 |
| directed to execute and
deliver contracts of sale with | 31 |
| underwriters and to execute and deliver such
certificates, | 32 |
| indentures, agreements and documents, including any
| 33 |
| supplements or amendments thereto, and to take such actions and | 34 |
| do such
things as shall be necessary or desirable to carry out |
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| the purposes of this
Act.
Any action authorized or permitted to | 2 |
| be taken by the Director of the
Governor's Office of Management | 3 |
| and Budget
Bureau of the Budget pursuant to this Act is hereby | 4 |
| authorized to be taken
by any person specifically designated by | 5 |
| the Governor to take such action
in a certificate signed by the | 6 |
| Governor and filed with the Secretary of State.
| 7 |
| (Source: P.A. 84-111; revised 8-23-03.)
| 8 |
| (30 ILCS 425/8.5 new) | 9 |
| Sec. 8.5. Truth in borrowing disclosures. | 10 |
| (a) Within 10 days after the issuance of any Bonds under | 11 |
| this Act, the Director of the Governor's Office of Management | 12 |
| and Budget shall publish a truth in borrowing disclosure that | 13 |
| discloses the total principal and interest payments to be paid | 14 |
| on the Bonds over the full stated term of the Bonds. The | 15 |
| disclosure also shall include principal and interest payments | 16 |
| to be made by each fiscal year over the full stated term of the | 17 |
| Bonds and total principal and interest payments to be made by | 18 |
| each fiscal year on all other outstanding Bonds issued under | 19 |
| this Act over the full stated terms of those Bonds. | 20 |
| (b) Within 10 days after the issuance of any refunding | 21 |
| bonds under Section 15 of this Act, the Director of the | 22 |
| Governor's Office of Management and Budget shall publish a | 23 |
| truth in borrowing disclosure that discloses the estimated | 24 |
| present-valued savings to be obtained through the refunding, in | 25 |
| total and by each fiscal year that the refunding Bonds may be | 26 |
| outstanding.
| 27 |
| (c) The disclosures required in subsections (a) and (b) | 28 |
| shall be published by posting the disclosures for no less than | 29 |
| 30 days on the web site of the Governor's Office of Management | 30 |
| and Budget and by providing the disclosures in written form to | 31 |
| the Illinois Economic and Fiscal Commission. These disclosures | 32 |
| shall be calculated assuming Bonds are not redeemed or refunded | 33 |
| prior to their stated maturities. Amounts included in these |
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| disclosures as payment of interest on variable rate Bonds shall | 2 |
| be the maximum amounts of interest that may be payable during | 3 |
| each fiscal year, after taking into account any credits | 4 |
| permitted in the related indenture or other instrument against | 5 |
| the amount of such interest for each fiscal year.
| 6 |
| (30 ILCS 425/15) (from Ch. 127, par. 2815)
| 7 |
| Sec. 15. Refunding Bonds. Refunding Bonds are hereby | 8 |
| authorized for
the purpose of refunding any outstanding Bonds, | 9 |
| including the payment of
any redemption premium thereon, any | 10 |
| reasonable expenses of such refunding,
and any interest accrued | 11 |
| or to accrue to the earliest or any subsequent
date of | 12 |
| redemption or maturity of outstanding Bonds; provided that all | 13 |
| Bonds in an issue that includes
such
refunding Bonds shall | 14 |
| mature no later than the final maturity date of Bonds
being | 15 |
| refunded ; provided that no refunding Bonds shall be offered for | 16 |
| sale unless the net present value of savings to be achieved by | 17 |
| the issuance of the refunding Bonds is 3% or more of the amount | 18 |
| of the refunding Bonds to be issued; and further provided that | 19 |
| no refunding Bonds shall be offered for sale that are expected | 20 |
| to refund Bonds under a refunding plan that would have the | 21 |
| effect of decreasing the State's principal payments on all | 22 |
| Bonds in the fiscal year in which the refunding Bonds are | 23 |
| offered or in the next succeeding fiscal year by a total of | 24 |
| more than 5% of the principal or redemption amounts due on all | 25 |
| then-outstanding Bonds in the fiscal year next succeeding the | 26 |
| fiscal year in which the refunding Bonds are offered .
| 27 |
| Refunding Bonds may be sold in such amounts and at such | 28 |
| times, as
directed by the Governor upon
recommendation by the | 29 |
| Director of the
Governor's Office of Management and Budget
| 30 |
| Bureau
of the Budget . The Governor
shall notify the State | 31 |
| Treasurer and
Comptroller of such refunding. The proceeds | 32 |
| received from the sale of
refunding Bonds shall be used
for the | 33 |
| retirement at maturity or redemption of such outstanding Bonds |
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| on
any maturity or redemption date and, pending such use, shall | 2 |
| be placed in
escrow, subject to such terms and conditions as | 3 |
| shall be provided for in
the Bond Sale Order relating to the | 4 |
| refunding Bonds. This Act shall
constitute an irrevocable and | 5 |
| continuing
appropriation of all amounts necessary to establish | 6 |
| an escrow account for
the purpose of refunding outstanding | 7 |
| Bonds and to pay the reasonable
expenses of such refunding and | 8 |
| of the issuance and sale of the refunding
Bonds. Any such | 9 |
| escrowed proceeds may be invested and
reinvested in direct | 10 |
| obligations of the United States of America, maturing
at such | 11 |
| time or times as shall be appropriate to assure the prompt | 12 |
| payment,
when due,
of the principal of and interest and | 13 |
| redemption premium, if any, on the
refunded Bonds. After the | 14 |
| terms of the escrow have been fully satisfied,
any remaining | 15 |
| balance of such proceeds and interest, income and profits
| 16 |
| earned or realized on the investments thereof shall be paid | 17 |
| into the
General Revenue Fund. The liability of the State upon | 18 |
| the refunded Bonds
shall continue, provided that the holders | 19 |
| thereof shall thereafter be
entitled to payment only out of the | 20 |
| moneys deposited in the escrow account
and the refunded Bonds | 21 |
| shall be deemed paid, discharged and no longer to be
| 22 |
| outstanding.
| 23 |
| Except as otherwise herein provided in this Section, such | 24 |
| refunding Bonds
shall in all other respects be issued pursuant | 25 |
| to and subject to the terms
and conditions of this Act and | 26 |
| shall be secured by and payable from only the
funds and sources | 27 |
| which are provided under this Act.
| 28 |
| (Source: P.A. 84-111; revised 8-23-03.)
| 29 |
| Section 999. Effective date. This Act takes effect upon | 30 |
| becoming law.".
|
|