(30 ILCS 425/12) (from Ch. 127, par. 2812)
Sec. 12.
Bonds as Limited Obligations of the State.
The Governor, on
behalf of the State, is authorized to direct the trustee under the Master
Indenture securing the outstanding Bonds to pay to the General Revenue Fund
on June 15, 1994, and each June 15th thereafter, all of the moneys on deposit
in the General Reserve Fund held under the Master Indenture for the purpose of
making distributive school aid payments in accordance with Section 18-11 of the
School Code; provided that such direction shall be in compliance with the
Master Indenture. All Bonds issued in accordance with this Act shall be
direct, limited obligations of the State of Illinois payable solely from and
secured by an irrevocable, first priority pledge of and lien on moneys on
deposit in (a) the Build Illinois Bond Retirement and Interest Fund and (b) any
fund or account maintained pursuant to any trust indenture securing any Bonds
to the extent so provided in such indenture; provided, however, that Bonds of
any series may be secured on a parity basis with, or on a senior or junior
basis with respect to, any other series of Bonds as provided in the Bond Sale
Order and trust indenture relating to such series. The State of Illinois
hereby pledges the tax revenues and other moneys from whatever source which by
law are required to be deposited into the Build Illinois Fund for the purposes
of making transfers to and payments from the Build Illinois Bond Retirement and
Interest Fund as required by Sections 6z-9 and 8.25 of the Finance Act, such
pledge constituting a first and prior claim against and charge on such tax
revenues and other moneys. The Bonds are not general obligations of the State
and are not secured by a pledge of the full faith and credit of the State and,
except as specifically provided in this Act and Sections 6z-9 and 8.25 of the
Finance Act, the holders of Bonds may not require the levy or imposition of any
taxes or the application of other State revenues or funds to the payment of
Bonds. Each Bond shall describe the limited nature of the State's obligation
on the face thereof. The Bonds shall be securities appropriate and acceptable
for collateral as described in Section 6 of "An Act relating to certain
investments of public funds by public agencies", approved July 23, 1943, as
amended, or in any similar act providing for the collateralization of public
funds.
The Bonds are hereby made securities in which all public officers and
bodies of the State and all political subdivisions of the State and other
persons carrying on an insurance business, all banks, bankers, trust
companies, saving banks and savings associations, including savings and
loan associations, building and loan associations, investment companies and
other persons carrying on a banking business, all credit unions, pension
funds, administrators, and guardians who are now or may hereafter be
authorized to invest in bonds or in other obligations of the State, may
properly and legally invest funds, including capital, in their control or
belonging to them. The Bonds are also hereby made securities which may be
deposited with and may be received by all public officers and bodies of the
State and all political subdivisions of the State and public corporations
for any purpose for which the deposit of bonds or other obligations of the
State is now or may hereafter be authorized.
(Source: P.A. 87-14; 87-860; 88-85.)
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