State of Illinois
90th General Assembly
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90_HB1640

      35 ILCS 200/18-185
      105 ILCS 5/34A-501.2 new
      105 ILCS 5/34A-502        from Ch. 122, par. 34A-502
          Amends  the  School  Code  and  the  Property  Tax  Code.
      Authorizes the Chicago  School  Finance  Authority  to  incur
      indebtedness  by  the  issuance of bonds for constructing new
      and rehabilitating existing school buildings in an  aggregate
      additional  principal  amount  outstanding  at  any  time not
      exceeding  $1.2  billion.   Defines  the  Authority's   "debt
      service   extension  base"  (as  used  in  the  Property  Tax
      Extension Limitation Law relative  to  a  source  from  which
      limited bonds may be made payable) to mean an amount equal to
      the  portion  of  the  1994  taxes  that  were  levied by the
      Authority  to  pay  debt  service  on  bonds  issued  by  the
      Authority and that had not yet been abated as a result of the
      refunding  of  those  bonds,  without  regard  to  subsequent
      additional abatements by the  Authority  of  that  tax  levy.
      Effective immediately.
                                                     LRB9004005THpk
                                               LRB9004005THpk
 1        AN  ACT  relating  to  the  affairs  of school districts,
 2    amending named Acts.
 3        Be it enacted by the People of  the  State  of  Illinois,
 4    represented in the General Assembly:
 5        Section  5.  The Property Tax Code is amended by changing
 6    Section 18-185 as follows:
 7        (35 ILCS 200/18-185)
 8        Sec. 18-185.  Short title; definitions.  This Section and
 9    Sections 18-190 through 18-245 may be cited as  the  Property
10    Tax  Extension  Limitation  Law.   As used in Sections 18-190
11    through 18-245:
12        "Consumer Price Index" means the Consumer Price Index for
13    All Urban Consumers for all items  published  by  the  United
14    States Department of Labor.
15        "Extension  limitation" means (a) the lesser of 5% or the
16    percentage increase in the Consumer Price  Index  during  the
17    12-month  calendar  year  preceding  the levy year or (b) the
18    rate of increase approved by voters under Section 18-205.
19        "Affected county" means a county  of  3,000,000  or  more
20    inhabitants  or  a county contiguous to a county of 3,000,000
21    or more inhabitants.
22        "Taxing  district"  has  the  same  meaning  provided  in
23    Section 1-150, except as otherwise provided in this  Section.
24    For  the 1991 through 1994 levy years only, "taxing district"
25    includes only each non-home rule taxing district  having  the
26    majority  of  its  1990  equalized  assessed value within any
27    county or counties contiguous to a county with  3,000,000  or
28    more inhabitants.  Beginning with the 1995 levy year, "taxing
29    district"  includes  only  each non-home rule taxing district
30    subject to this Law  before  the  1995  levy  year  and  each
31    non-home  rule taxing district not subject to this Law before
                            -2-                LRB9004005THpk
 1    the 1995 levy year having the majority of its 1994  equalized
 2    assessed  value in an affected county or counties.  Beginning
 3    with the levy year in which this Law becomes applicable to  a
 4    taxing  district  as  provided  in  Section  18-213,  "taxing
 5    district"  also  includes those taxing districts made subject
 6    to this Law as provided in Section 18-213.
 7        "Aggregate extension" for taxing districts to which  this
 8    Law  applied  before  the  1995  levy  year  means the annual
 9    corporate extension for the taxing district and those special
10    purpose extensions that are  made  annually  for  the  taxing
11    district,  excluding special purpose extensions: (a) made for
12    the taxing district to pay interest or principal  on  general
13    obligation  bonds  that were approved by referendum; (b) made
14    for any taxing district  to  pay  interest  or  principal  on
15    general  obligation  bonds issued before October 1, 1991; (c)
16    made for any taxing district to pay interest or principal  on
17    bonds  issued  to  refund  or  continue to refund those bonds
18    issued before October  1,  1991;  (d)  made  for  any  taxing
19    district  to  pay  interest  or  principal on bonds issued to
20    refund or continue to refund bonds issued  after  October  1,
21    1991  that  were  approved  by  referendum;  (e) made for any
22    taxing district to pay interest or principal on revenue bonds
23    issued before October 1, 1991 for payment of which a property
24    tax levy or the full faith and credit of the  unit  of  local
25    government  is  pledged;  however,  a  tax for the payment of
26    interest or principal on those bonds shall be made only after
27    the governing body of the unit of local government finds that
28    all other sources for payment are insufficient to make  those
29    payments;  (f)  made for payments under a building commission
30    lease when the lease payments are for the retirement of bonds
31    issued by the commission before October 1, 1991, to  pay  for
32    the  building  project;  (g)  made  for  payments  due  under
33    installment  contracts  entered  into before October 1, 1991;
34    (h) made for payments of  principal  and  interest  on  bonds
                            -3-                LRB9004005THpk
 1    issued  under the Metropolitan Water Reclamation District Act
 2    to finance construction projects initiated before October  1,
 3    1991;  (i)  made  for  payments  of principal and interest on
 4    limited  bonds,  as  defined  in  Section  3  of  the   Local
 5    Government  Debt  Reform  Act, in an amount not to exceed the
 6    debt service extension base less the  amount  in  items  (b),
 7    (c),  (e),  and  (h)  of  this  definition for non-referendum
 8    obligations, except obligations initially issued pursuant  to
 9    referendum;  and  (j)  made  for  payments  of  principal and
10    interest on bonds  issued  under  Section  15  of  the  Local
11    Government Debt Reform Act.
12        "Aggregate  extension"  for the taxing districts to which
13    this Law did not apply before  the  1995  levy  year  (except
14    taxing  districts  subject  to  this  Law  in accordance with
15    Section 18-213) means the annual corporate extension for  the
16    taxing district and those special purpose extensions that are
17    made  annually  for  the  taxing  district, excluding special
18    purpose extensions: (a) made for the taxing district  to  pay
19    interest  or  principal on general obligation bonds that were
20    approved by referendum; (b) made for any taxing  district  to
21    pay  interest or principal on general obligation bonds issued
22    before March 1, 1995; (c) made for any taxing district to pay
23    interest or principal on bonds issued to refund  or  continue
24    to  refund  those bonds issued before March 1, 1995; (d) made
25    for any taxing district to pay interest or principal on bonds
26    issued to refund or continue to  refund  bonds  issued  after
27    March  1, 1995 that were approved by referendum; (e) made for
28    any taxing district to pay interest or principal  on  revenue
29    bonds  issued  before  March  1,  1995 for payment of which a
30    property tax levy or the full faith and credit of the unit of
31    local government is pledged; however, a tax for  the  payment
32    of  interest  or  principal on those bonds shall be made only
33    after the governing body of  the  unit  of  local  government
34    finds  that all other sources for payment are insufficient to
                            -4-                LRB9004005THpk
 1    make those payments; (f) made for payments under  a  building
 2    commission   lease  when  the  lease  payments  are  for  the
 3    retirement of bonds issued by the commission before March  1,
 4    1995  to  pay for the building project; (g) made for payments
 5    due under installment contracts entered into before March  1,
 6    1995;  (h)  made  for  payments  of principal and interest on
 7    bonds  issued  under  the  Metropolitan   Water   Reclamation
 8    District  Act  to  finance  construction  projects  initiated
 9    before  October  1,  1991; (i) made for payments of principal
10    and interest on limited bonds, as defined in Section 3 of the
11    Local Government Debt Reform Act, in an amount not to  exceed
12    the debt service extension base less the amount in items (b),
13    (c),  (e),  and  (h)  of  this  definition for non-referendum
14    obligations, except obligations initially issued pursuant  to
15    referendum;  (j)  made for payments of principal and interest
16    on bonds issued under Section 15 of the Local Government Debt
17    Reform Act; (k) made for payments of principal  and  interest
18    on  bonds  authorized  by  Public Act 88-503 and issued under
19    Section 20a of the Chicago Park District Act for aquarium  or
20    museum  projects;  and (l) made for payments of principal and
21    interest on bonds authorized by Public Act 87-1191 and issued
22    under Section 42 of the Cook County Forest Preserve  District
23    Act for zoological park projects.
24        "Aggregate  extension"  for all taxing districts to which
25    this Law applies in accordance with Section 18-213 means  the
26    annual  corporate extension for the taxing district and those
27    special purpose extensions that are  made  annually  for  the
28    taxing  district,  excluding  special purpose extensions: (a)
29    made for the taxing district to pay interest or principal  on
30    general  obligation  bonds  that were approved by referendum;
31    (b) made for any taxing district to pay interest or principal
32    on general obligation bonds issued before the date  on  which
33    the  referendum  making  this  Law  applicable  to the taxing
34    district is held; (c) made for any  taxing  district  to  pay
                            -5-                LRB9004005THpk
 1    interest  or  principal on bonds issued to refund or continue
 2    to refund those bonds issued before the  date  on  which  the
 3    referendum  making this Law applicable to the taxing district
 4    is held; (d) made for any taxing district to pay interest  or
 5    principal  on  bonds  issued  to refund or continue to refund
 6    bonds issued after the date on which  the  referendum  making
 7    this  Law  applicable  to  the taxing district is held if the
 8    bonds were approved by referendum after the date on which the
 9    referendum making this Law applicable to the taxing  district
10    is  held; (e) made for any taxing district to pay interest or
11    principal on revenue bonds issued before the  date  on  which
12    the  referendum  making  this  Law  applicable  to the taxing
13    district is held for payment of which a property tax levy  or
14    the  full faith and credit of the unit of local government is
15    pledged; however, a  tax  for  the  payment  of  interest  or
16    principal  on  those  bonds  shall  be  made  only  after the
17    governing body of the unit of local government finds that all
18    other sources for payment  are  insufficient  to  make  those
19    payments;  (f)  made for payments under a building commission
20    lease when the lease payments are for the retirement of bonds
21    issued by  the  commission  before  the  date  on  which  the
22    referendum  making this Law applicable to the taxing district
23    is held to  pay  for  the  building  project;  (g)  made  for
24    payments  due under installment contracts entered into before
25    the date on which the referendum making this  Law  applicable
26    to  the  taxing  district  is  held; (h) made for payments of
27    principal and  interest  on  limited  bonds,  as  defined  in
28    Section  3  of  the  Local  Government Debt Reform Act, in an
29    amount not to exceed the debt service extension base less the
30    amount in items (b), (c), and  (e)  of  this  definition  for
31    non-referendum   obligations,  except  obligations  initially
32    issued pursuant to  referendum;  (i)  made  for  payments  of
33    principal  and  interest  on bonds issued under Section 15 of
34    the Local Government Debt Reform Act;  and  (j)  made  for  a
                            -6-                LRB9004005THpk
 1    qualified  airport  authority to pay interest or principal on
 2    general obligation bonds issued for  the  purpose  of  paying
 3    obligations   due  under,  or  financing  airport  facilities
 4    required to be acquired, constructed, installed  or  equipped
 5    pursuant to, contracts entered into before March 1, 1996 (but
 6    not including any amendments to such a contract taking effect
 7    on or after that date).
 8        "Debt  service  extension  base" means an amount equal to
 9    that portion of the extension for a taxing district  for  the
10    1994 levy year, or for those taxing districts subject to this
11    Law  in  accordance  with Section 18-213 for the levy year in
12    which the referendum making this Law applicable to the taxing
13    district is held, constituting an extension  for  payment  of
14    principal and interest on bonds issued by the taxing district
15    without referendum, but not including (i) bonds authorized by
16    Public Act 88-503 and issued under Section 20a of the Chicago
17    Park  District  Act  for  aquarium  and museum projects; (ii)
18    bonds issued under Section 15 of the  Local  Government  Debt
19    Reform  Act;  or (iii) refunding obligations issued to refund
20    or  to  continue  to  refund  obligations  initially   issued
21    pursuant  to  referendum.  However,  with respect to a School
22    Finance Authority established pursuant to Article 34A of  the
23    School  Code,  "debt  service  extension  base" shall mean an
24    amount equal to that portion of  the  taxes  levied  by  such
25    Authority for the 1994 levy year for the payment of principal
26    and  interest  on bonds issued by such Authority that had not
27    been abated as a result  of  the  refunding  of  such  bonds,
28    without  regard  to  subsequent additional abatements by such
29    Authority of such levy of taxes. The debt  service  extension
30    base  may  be  established  or  increased  as  provided under
31    Section 18-212.
32        "Special purpose extensions" include, but are not limited
33    to, extensions  for  levies  made  on  an  annual  basis  for
34    unemployment   and   workers'  compensation,  self-insurance,
                            -7-                LRB9004005THpk
 1    contributions to pension plans, and extensions made  pursuant
 2    to  Section  6-601  of  the  Illinois Highway Code for a road
 3    district's permanent road fund  whether  levied  annually  or
 4    not.   The  extension  for  a  special  service  area  is not
 5    included in the aggregate extension.
 6        "Aggregate extension base" means  the  taxing  district's
 7    last preceding aggregate extension as adjusted under Sections
 8    18-215 through 18-230.
 9        "Levy  year" has the same meaning as "year" under Section
10    1-155.
11        "New property" means (i) the assessed value, after  final
12    board   of   review  or  board  of  appeals  action,  of  new
13    improvements or additions to  existing  improvements  on  any
14    parcel  of  real property that increase the assessed value of
15    that real property during the levy  year  multiplied  by  the
16    equalization  factor  issued  by the Department under Section
17    17-30 and (ii) the  assessed  value,  after  final  board  of
18    review  or  board  of  appeals  action,  of real property not
19    exempt from real estate taxation,  which  real  property  was
20    exempt  from  real  estate  taxation  for  any portion of the
21    immediately  preceding   levy   year,   multiplied   by   the
22    equalization  factor  issued  by the Department under Section
23    17-30.
24        "Qualified airport authority" means an airport  authority
25    organized  under the Airport Authorities Act and located in a
26    county bordering on the  State  of  Wisconsin  and  having  a
27    population in excess of 200,000 and not greater than 500,000.
28        "Recovered  tax  increment value" means the amount of the
29    current year's equalized assessed value, in  the  first  year
30    after a municipality terminates the designation of an area as
31    a redevelopment project area previously established under the
32    Tax  Increment  Allocation  Development  Act  in the Illinois
33    Municipal Code, previously established under  the  Industrial
34    Jobs   Recovery  Law  in  the  Illinois  Municipal  Code,  or
                            -8-                LRB9004005THpk
 1    previously established under the  Economic  Development  Area
 2    Tax  Increment  Allocation  Act,  of each taxable lot, block,
 3    tract, or  parcel  of  real  property  in  the  redevelopment
 4    project  area  over  and above the initial equalized assessed
 5    value of each property in the redevelopment project area.
 6        Except as otherwise provided in this  Section,  "limiting
 7    rate"  means  a  fraction  the numerator of which is the last
 8    preceding aggregate extension base times an amount  equal  to
 9    one plus the extension limitation defined in this Section and
10    the  denominator  of  which  is  the current year's equalized
11    assessed value of all real property in  the  territory  under
12    the jurisdiction of the taxing district during the prior levy
13    year.    For   those  taxing  districts  that  reduced  their
14    aggregate extension for the last  preceding  levy  year,  the
15    highest  aggregate  extension  in any of the last 3 preceding
16    levy years shall be used for the  purpose  of  computing  the
17    limiting   rate.   The  denominator  shall  not  include  new
18    property.  The denominator shall not  include  the  recovered
19    tax increment value.
20    (Source:  P.A.  88-455;  89-1,  eff.  2-12-95;  89-138,  eff.
21    7-14-95;  89-385,  eff. 8-18-95; 89-436, eff. 1-1-96; 89-449,
22    eff. 6-1-96; 89-510, eff. 7-11-96.)
23        Section 10.  The  School  Code  is  amended  by  changing
24    Section 34A-502 and adding Section 34A-501.2 as follows:
25        (105 ILCS 5/34A-501.2 new)
26        Sec.    34A-501.2.  Authority    to   issue   Bonds   for
27    construction and rehabilitation.
28        (a)  In addition to  the  authority  granted  by  Section
29    34A-501 of this Article, the Authority may incur indebtedness
30    by the issuance of its Bonds (as defined in subsection (a) of
31    Section  34A-501) in an aggregate additional principal amount
32    outstanding  at  any  time  not  to   exceed   the   sum   of
                            -9-                LRB9004005THpk
 1    $1,200,000,000  (provided  that Bonds may be issued in excess
 2    of such limitation to refund outstanding Bonds  issued  under
 3    this  Section)  for  the  purpose of providing the Board with
 4    moneys   for   constructing   new   school   buildings    and
 5    rehabilitating  existing school buildings, including, without
 6    limitation, all necessary  site  acquisition  and  repairing,
 7    modernizing,   providing  additions  to  and  facilities  in,
 8    altering, reconstructing, and acquiring school buildings  and
 9    equipment.    Bonds issued pursuant to this authorization may
10    be issued in excess of any statutory limitation  as  to  debt
11    applicable  to  the  Authority or the Board and may be issued
12    without referendum.
13        (b)  In order to provide additional  security  for  Bonds
14    issued  by  the Authority pursuant to this Section, the Board
15    may pledge as such additional security any moneys paid to, or
16    to be paid to, or held by the Board in any of its funds  that
17    are  not  legally  or  contractually  prohibited  from  being
18    applied  to  such purpose.  Any such pledge made by the Board
19    shall be valid and binding from the time such pledge is made.
20    The moneys and other funds so pledged and thereafter received
21    by the Board shall immediately be subject to the lien of such
22    pledge without any physical delivery thereof or further  act;
23    and,  subject only to the provisions of prior agreements, the
24    lien of such pledge shall be valid and binding as against all
25    parties having claims of  any  kind  in  tort,  contract,  or
26    otherwise  against  the  Board,  irrespective of whether such
27    parties have notice thereof.  Pursuant to  any  such  pledge,
28    the  Board  may  bind  itself  to  impose  or provide for the
29    collection of rates, charges, or taxes to the fullest  extent
30    permitted by applicable law.  No resolution, trust agreement,
31    or  other  instrument by which such pledge is created need be
32    filed or recorded except in the records of the Board.
33        (c)  Any taxes levied for the payment of  any  series  of
34    Bonds   issued  pursuant  to  this  Section,  whether  levied
                            -10-               LRB9004005THpk
 1    pursuant to Section 34A-503 of  this  Article  or  otherwise,
 2    shall  be  for the sole benefit of the holders of such series
 3    of Bonds and shall be deposited  in  the  debt  service  fund
 4    established  in  connection  with the series of Bonds for the
 5    payment of which the taxes were levied.
 6        (d)  The  Authority  may  create  and  establish  a  debt
 7    service reserve fund with respect to Bonds issued pursuant to
 8    this Section as  authorized  by  the  provisions  of  Section
 9    34A-505 of this Article.
10        (e)  Any   interest   or  other  investment  earnings  on
11    proceeds of Bonds issued under this Section shall be  applied
12    as  provided  in the resolution authorizing such Bonds, which
13    resolution shall require those earnings to be  used  for  the
14    same  purpose  as  the  proceeds  of  those  Bonds or for the
15    payment of principal of or interest or redemption premium  on
16    such Bonds, either at maturity or an earlier redemption date.
17    Application  by the Authority of any proceeds of Bonds issued
18    under this Section, or interest or other investment  earnings
19    thereon,  shall be in the sole judgment and discretion of the
20    Authority, but no such moneys shall be so provided unless the
21    Authority shall  have  found  and  determined,  in  its  sole
22    judgment  and discretion, that such moneys are to be used for
23    those purposes and not for providing the  Board  with  moneys
24    for  its  ordinary and necessary expenditures for educational
25    purposes,  maintenance  of  school   facilities,   or   other
26    operational needs.  The Authority may, in making its findings
27    and  determinations,  rely upon information provided by or on
28    behalf of the Board.  The Authority may  from  time  to  time
29    make  and amend regulations and issue directives with respect
30    to the use and application of such moneys.
31        (f)  The Authority may, at any time, in its sole judgment
32    and discretion, deposit unexpended proceeds of  Bonds  issued
33    under  this  Section or interest or other investment earnings
34    thereon solely in the debt service fund established for  such
                            -11-               LRB9004005THpk
 1    Bonds and shall apply such moneys to the payment of principal
 2    of  or  interest  or  redemption  premium  on  such Bonds, at
 3    maturity or an earlier redemption date.   In  the  resolution
 4    authorizing  Bonds  being  issued  under  this  Section,  the
 5    Authority  may  make  commitments  or covenants to holders of
 6    such Bonds with  respect  to  such  use  of  such  unexpended
 7    proceeds and interest or other investment earnings.
 8        (105 ILCS 5/34A-502) (from Ch. 122, par. 34A-502)
 9        Sec. 34A-502.  Terms of Bonds.
10        (a)  Whenever  the  Authority  desires  or is required to
11    issue Bonds as provided in this Article,  it  shall  adopt  a
12    resolution  designating the amount of the Bonds to be issued,
13    the purposes for which the proceeds of the Bonds  are  to  be
14    used  and  the  manner  in  which such proceeds shall be held
15    pending the application thereof.  The Bonds shall  be  issued
16    in  the corporate name of the Authority, shall bear such date
17    or dates,  and  shall  mature  at  such  time  or  times  not
18    exceeding  30  years  from  their date as such resolution may
19    provide; provided, however, that,  except  for  Bonds  issued
20    pursuant  to  subsection  (b)  of Section 34A-501 and Section
21    34A-501.2 of this Article, Bonds issued on or after  July  1,
22    1993  shall  mature on or before June 1, 2009.  The Bonds may
23    be issued as serial bonds payable in installments or as  term
24    bonds  with  sinking  fund  installments  or as a combination
25    thereof as the Authority may determine  in  such  resolution.
26    The  Bonds  shall  be  in  such  denominations  of  $1,000 or
27    integral multiples thereof.  The Bonds shall be in such form,
28    either  coupon  or  registered,   carry   such   registration
29    privileges,  be  executed  in such manner, be payable at such
30    place or places and be subject to such terms of redemption at
31    such redemption prices, including premium, as such resolution
32    may provide.  The Bonds shall be sold  by  the  Authority  at
33    public sale.  The Bonds shall be sold to the highest and best
                            -12-               LRB9004005THpk
 1    bidders  upon sealed bids.  The Authority shall, from time to
 2    time as Bonds are to be sold, advertise in at least  2  daily
 3    newspapers,  one  of  which  is  published  in  the  City  of
 4    Springfield  and one in the City of Chicago, for proposals to
 5    purchase Bonds.  Each of such  advertisements  for  proposals
 6    shall be published at least ten days prior to the date of the
 7    opening  of the bids.  The Authority may reserve the right to
 8    reject any and all bids.
 9        (b)  Bonds issued prior to December 31, 1980  shall  bear
10    interest at such rate or rates and at such price or prices as
11    the  Authority  may approve in the resolution authorizing the
12    issuance of Bonds.  Bonds  issued  after  December  31,  1980
13    shall  bear  interest  at  a  rate or rates not to exceed the
14    maximum annual rate provided for in Section 2 of "An  Act  to
15    authorize public corporations to issue bonds, other evidences
16    of  indebtedness  and  tax  anticipation  warrants subject to
17    interest rate limitations set forth  therein",  approved  May
18    26,  1970,  as  amended, and if issued at such maximum annual
19    rate shall  be  sold  for  not  less  than  par  and  accrued
20    interest.  If any of the Bonds are issued to bear interest at
21    a rate of less than such  maximum  annual  rate  the  minimum
22    price  at  which  they  may  be  sold  shall be such that the
23    interest cost to the Authority on the proceeds of  the  Bonds
24    shall  not exceed such maximum annual rate computed to stated
25    maturity according to standard tables of bond values.
26        (c)  In connection with the issuance of  its  Bonds,  the
27    Authority  may  enter into arrangements to provide additional
28    security and liquidity for the  Bonds.   These  may  include,
29    without  limitation,  municipal  bond  insurance,  letters of
30    credit, lines of credit by which  the  Authority  may  borrow
31    funds  to pay or redeem its Bonds and purchase or remarketing
32    arrangements for  assuring  the  ability  of  owners  of  the
33    Authority's  Bonds  to  sell or to have redeemed their Bonds.
34    The Authority may enter into contracts and may agree  to  pay
                            -13-               LRB9004005THpk
 1    fees  to  persons providing such arrangements, including from
 2    Bond proceeds but only under circumstances in which the total
 3    interest paid or to be paid on the Bonds, together  with  the
 4    fees  for  the  arrangements  (being treated as if interest),
 5    would not, taken together, cause the Bonds to bear  interest,
 6    calculated to their absolute maturity, at a rate in excess of
 7    the maximum rate allowed by law.
 8        The  resolution of the Authority authorizing the issuance
 9    of its Bonds may provide that interest rates  may  vary  from
10    time  to  time  depending  upon  criteria  established by the
11    Authority, which may include, without limitation, a variation
12    in interest rates as may be necessary to cause  Bonds  to  be
13    remarketable  from  time  to  time  at a price equal to their
14    principal amount,  and  may  provide  for  appointment  of  a
15    national banking association, bank, trust company, investment
16    banker   or   other  financial  institution  to  serve  as  a
17    remarketing agent in that connection.  The resolution of  the
18    Authority  authorizing  the issuance of its Bonds may provide
19    that alternative interest  rates  or  provisions  will  apply
20    during such times as the Bonds are held by a person providing
21    a  letter  of  credit or other credit enhancement arrangement
22    for those Bonds.
23        (d)  With respect to instruments for the payment of money
24    issued under this Article, it is the intention of the General
25    Assembly (i) that the Omnibus  Bond  Acts  are  supplementary
26    grants  of  power to issue instruments in accordance with the
27    Omnibus Bond  Acts,  regardless  of  any  provision  of  this
28    Article  that  may  appear  to be more restrictive than those
29    Acts, (ii) that the provisions of  this  Section  are  not  a
30    limitation  on  the  supplementary  authority  granted by the
31    Omnibus Bond Acts, and (iii) that  instruments  issued  under
32    this  Section  within  the supplementary authority granted by
33    the  Omnibus  Bond  Acts  are  not  invalid  because  of  any
34    provision of this Act that may appear to be more  restrictive
                            -14-               LRB9004005THpk
 1    than those Acts.
 2    (Source: P.A. 88-511.)
 3        Section  99.  Effective date.  This Act takes effect upon
 4    becoming a law.

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