Sen. Don Harmon

Filed: 3/27/2012

 

 


 

 


 
09700SB0551sam001LRB097 04362 PJG 67783 a

1
AMENDMENT TO SENATE BILL 551

2    AMENDMENT NO. ______. Amend Senate Bill 551 by replacing
3everything after the enacting clause with the following:
 
4    "Section 5. The Local Government Debt Reform Act is amended
5by changing Section 11 as follows:
 
6    (30 ILCS 350/11)  (from Ch. 17, par. 6911)
7    Sec. 11. Refundings and redemption premiums. Bonds may be
8refunded or advance refunded upon such terms as the governing
9body may set in accordance with this Act, for such term of
10years, not in excess of the maximum term of years permitted by
11applicable law for the bonds to be refunded, and in such
12principal amount, all as may be deemed necessary by the
13governing body. Revenue bonds may be issued to refund general
14obligation bonds or alternate bonds issued under this Act.
15General obligation bonds shall not be issued to refund revenue
16bonds or alternate bonds except as expressly permitted by

 

 

09700SB0551sam001- 2 -LRB097 04362 PJG 67783 a

1applicable law. Any redemption premium payable upon the
2redemption of bonds may be payable from the proceeds of
3refunding bonds which may be issued for the purpose of
4refunding such bonds, from any other lawfully available source
5or from both proceeds and such other sources.
6    Bonds that have been refunded shall not be considered to be
7indebtedness for the purposes of any statutory or other debt
8limitation if such refunded bonds are secured by and to be paid
9as to principal, interest, and premium, if any, from an escrow
10account that is (i) invested in (a) obligations of the United
11States of America; (b) obligations that are guaranteed by the
12full faith and credit of the United States of America as to the
13timely payment of principal and interest; or (c) bonds of any
14State or governmental unit that are rated at the time of
15purchase within the 3 highest general classifications
16established by a rating service of nationally recognized
17expertise in rating bonds of states and their political
18subdivisions; and (ii) determined by an independent certified
19public accountant or nationally recognized feasibility analyst
20to be sufficient to provide for the timely payment of principal
21of and interest on the refunded bonds when due or upon
22redemption.
23    Any governmental unit may deposit cash into an escrow
24account to be held uninvested for the purpose of refunding or
25providing for the payment of principal, interest, and premium,
26if any, on its bonds, and bonds that have been so refunded or

 

 

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1provided for shall not be considered to be indebtedness for the
2purposes of any statutory or other debt limitation.
3(Source: P.A. 90-306, eff. 8-1-97.)
 
4    Section 99. Effective date. This Act takes effect upon
5becoming law.".