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Public Act 91-0053
SB146 Enrolled LRB9100650EGfg
AN ACT in relation to State bonds.
Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
Section 5. The General Obligation Bond Act is amended by
adding Section 1.5 and re-enacting Sections 2, 3, 16, and 20
as follows:
(30 ILCS 330/1.5 new)
Sec. 1.5. Re-enactment; findings; purpose; validation.
(a) The General Assembly finds and declares that:
(1) Article IV of Public Act 85-1135, effective
July 28, 1988, contained provisions amending or creating
Sections 2, 3, 16, and 20 of the General Obligation Bond
Act, Section 5.242 of the State Finance Act, and Section
4 of the Baccalaureate Savings Act, all of which pertain
to State general obligation bonds. These provisions (i)
increased the total authorization for State of Illinois
general obligation bonds and refunding bonds; (ii)
increased the limits on the amount of State general
obligation bond proceeds that may be used for various
purposes; and (iii) created the General Obligation Bond
Rebate Fund, authorized the transfer of money into that
Fund, and provided an irrevocable continuing
appropriation of amounts necessary to preserve the
tax-free status of interest earned by owners of State
general obligation bonds. Article IV also contained
other provisions.
(2) Section 8 of Article III of Public Act 85-1135,
effective September 1, 1988, contained provisions
amending Sections 2, 4, 11, and 13 of the Build Illinois
Bond Act. These provisions (i) increased the total
authorization for Build Illinois bonds; (ii) increased
the limits on the amount of Build Illinois bond proceeds
that may be used for public infrastructure purposes; and
(iii) amended the Build Illinois bond repayment
schedules.
(3) In addition, Public Act 85-1135 contained
provisions relating to tax reform and creating the Water
Pollution Control Revolving Fund loan program.
(4) On August 26, 1998, the Cook County Circuit
Court entered an order in the case of Oak Park Arms
Associates v. Whitley (No. 92 L 51045), in which it found
that Public Act 85-1135 violates the single subject
clause of the Illinois Constitution (Article IV, Section
8(d)). However, on December 7, 1998, the Circuit Court
granted Defendant's motion to reconsider and dismissed
the Plaintiff's Single Subject claim with prejudice.
Nevertheless, the Circuit Court did not vacate its August
26, 1998 order declaring P.A. 85-1135 to be in violation
of the Single Subject clause of the Illinois
Constitution. In addition, the Plaintiffs have appealed
the Circuit Court's dismissal of their Single Subject
claim.
(5) The integrity of the State's contracts and
bonds, the protection of bondholders, and the State's
continued ability to issue bonds and borrow money are of
the greatest importance for the continued health, safety,
and welfare of the people of this State.
(6) The programs and projects funded with the
proceeds of State general obligation bonds and Build
Illinois bonds affect many areas of vital concern to the
people of this State. The disruption of those programs
could constitute a grave threat to the continued health,
safety, and welfare of the people of this State.
(b) It is the purpose of this amendatory Act of 1999 to
prevent or minimize any problems relating to State bonds that
may result from challenges to the constitutional validity of
Public Act 85-1135, by (1) re-enacting the Sections relating
to State bonds that were included in Public Act 85-1135; (2)
validating all Build Illinois bonds, State general obligation
bonds, and refunding bonds issued pursuant to provisions
contained in Public Act 85-1135; (3) affirming the State's
obligations under those bonds and any contracts relating to
them; and (4) validating all actions taken in reliance on the
provisions contained in Public Act 85-1135 that relate to
those bonds or their proceeds.
(c) This amendatory Act of 1999 re-enacts Sections 2, 3,
16, and 20 of the General Obligation Bond Act, Section 5.242
of the State Finance Act, Sections 2, 4, 11, and 13 of the
Build Illinois Bond Act, and Section 4 of the Baccalaureate
Savings Act, as they have been amended. This re-enactment is
intended to remove any question as to the validity or content
of those Sections; it is not intended to supersede any other
Public Act that amends the text of a Section as set forth in
this amendatory Act. The material is shown as existing text
(i.e., without underscoring) because, as of the time this
amendatory Act of 1999 was prepared, the legal challenge to
P.A. 85-1135 under the Single Subject clause of the Illinois
Constitution was dismissed with prejudice.
(d) The re-enactment by this amendatory Act of 1999 of
certain Sections relating to State bonds that were enacted or
amended by Public Act 85-1135 is not intended, and shall not
be construed, to imply that P.A. 85-1135 is invalid or to
limit or impair any legal argument concerning whether those
provisions were substantially re-enacted by other Public
Acts.
(e) All Build Illinois bonds, State general obligation
bonds, and refunding bonds issued before the effective date
of this amendatory Act of 1999 in reliance on or pursuant to
the Sections re-enacted by this amendatory Act of 1999, as
set forth in Public Act 85-1135 or as subsequently amended,
are hereby validated. All obligations of the State arising
under or in connection with those bonds are hereby affirmed.
(f) All otherwise lawful actions taken before the
effective date of this amendatory Act of 1999 in reliance on
or pursuant to the Sections re-enacted by this amendatory Act
of 1999, as set forth in Public Act 85-1135 or as
subsequently amended, by any officer, employee, or agency of
State government or by any other person or entity, are hereby
validated.
(g) This amendatory Act of 1999 applies, without
limitation, to actions pending on or after the effective date
of this amendatory Act.
(30 ILCS 330/2) (from Ch. 127, par. 652)
Sec. 2. Authorization for Bonds. The State of Illinois
is authorized to issue, sell and provide for the retirement
of General Obligation Bonds of the State of Illinois in the
total amount of $10,895,296,392 herein called "Bonds".
Of the total amount of bonds authorized above, up to
$2,200,000,000 in aggregate original principal amount may be
issued and sold in accordance with the Baccalaureate Savings
Act in the form of General Obligation College Savings Bonds.
Of the total amount of bonds authorized above, up to
$300,000,000 in aggregate original principal amount may be
issued and sold in accordance with the Retirement Savings Act
in the form of General Obligation Retirement Savings Bonds.
The issuance and sale of Bonds pursuant to the General
Obligation Bond Act is an economical and efficient method of
financing the capital needs of the State. This Act will
permit the issuance of a multi-purpose General Obligation
Bond with uniform terms and features. This will not only
lower the cost of registration but also reduce the overall
cost of issuing debt by improving the marketability of
Illinois General Obligation Bonds.
Bonds shall be issued for the categories and specific
purposes expressed in Sections 2 through 8 and Section 16 of
this Act.
(Source: P.A. 90-1, eff. 2-20-97; 90-8, eff. 12-8-97; 90-549,
eff. 12-8-97; 90-586, eff. 6-4-98.)
(30 ILCS 330/3) (from Ch. 127, par. 653)
Sec. 3. Capital Facilities. The amount of $4,335,266,392
is authorized to be used for the acquisition, development,
construction, reconstruction, improvement, financing,
architectural planning and installation of capital facilities
within the State, consisting of buildings, structures,
durable equipment, land, and interests in land for the
following specific purposes:
(a) $1,189,517,246 for educational purposes by State
universities and colleges, the Illinois Community College
Board created by the Public Community College Act and for
grants to public community colleges as authorized by Sections
5-11 and 5-12 of the Public Community College Act;
(b) $1,126,370,168 for correctional purposes at State
prison and correctional centers;
(c) $379,711,786 for open spaces, recreational and
conservation purposes and the protection of land;
(d) $482,280,486 for child care facilities, mental and
public health facilities, and facilities for the care of
disabled veterans and their spouses;
(e) 895,189,341 for use by the State, its departments,
authorities, public corporations, commissions and agencies;
(f) $818,100 for cargo handling facilities at port
districts and for breakwaters, including harbor entrances, at
port districts in conjunction with facilities for small boats
and pleasure crafts;
(g) $147,267,796 for water resource management projects;
(h) $16,940,269 for the provision of facilities for food
production research and related instructional and public
service activities at the State universities and public
community colleges;
(i) $34,000,000 for grants by the Secretary of State, as
State Librarian, for central library facilities authorized by
Section 8 of the Illinois Library System Act and for grants
by the Capital Development Board to units of local government
for public library facilities;
(j) $25,000,000 for the acquisition, development,
construction, reconstruction, improvement, financing,
architectural planning and installation of capital facilities
consisting of buildings, structures, durable equipment and
land for grants to counties, municipalities or public
building commissions with correctional facilities that do not
comply with the minimum standards of the Department of
Corrections under Section 3-15-2 of the Unified Code of
Corrections;
(k) $5,000,000 for grants in fiscal year 1988 by the
Department of Conservation for improvement or expansion of
aquarium facilities located on property owned by a park
district; and
(l) $33,171,200 to State agencies for grants to local
governments for the acquisition, financing, architectural
planning, development, alteration, installation, and
construction of capital facilities consisting of buildings,
structures, durable equipment, and land.
The amounts authorized above for capital facilities may
be used for the acquisition, installation, alteration,
construction, or reconstruction of capital facilities and for
the purchase of equipment for the purpose of major capital
improvements which will reduce energy consumption in State
buildings or facilities.
(Source: P.A. 90-1, eff. 2-20-97; 90-8, eff. 12-8-97; 90-549,
eff. 12-8-97; 90-586, eff. 6-4-98.)
(30 ILCS 330/16) (from Ch. 127, par. 666)
Sec. 16. Refunding Bonds. The amount of $2,339,025,000
is authorized for the purpose of refunding any State of
Illinois general obligation Bonds then outstanding, including
the payment of any redemption premium thereon, any reasonable
expenses of such refunding, any interest accrued or to accrue
to the earliest or any subsequent date of redemption or
maturity of such outstanding Bonds and any interest to accrue
to the first interest payment on the refunding Bonds;
provided that such refunding Bonds shall mature no later than
the final maturity date of Bonds being refunded.
Refunding Bonds may be sold in such amounts and at such
times, as directed by the Governor, upon recommendation by
the Director of the Bureau of the Budget. The Governor shall
notify the State Treasurer and Comptroller of such refunding.
The proceeds received from the sale of refunding Bonds shall
be used for the retirement at maturity or redemption of such
outstanding Bonds on any maturity or redemption date and,
pending such use, shall be placed in escrow. Proceeds not
needed for deposit in an escrow account shall be deposited in
the General Obligation Bond Retirement and Interest Fund.
This Act shall constitute an irrevocable and continuing
appropriation of all amounts necessary to establish an escrow
account for the purpose of refunding outstanding general
obligation Bonds and to pay the reasonable expenses of such
refunding. Any such escrowed proceeds may be invested and
reinvested in direct obligations of the United States of
America, maturing at such time or times as shall be
appropriate to assure the prompt payment of the principal of
and interest and redemption premium, if any, on the refunded
Bonds. After the terms of the escrow have been fully
satisfied, any remaining balance of such proceeds and
interest, income and profits earned or realized on the
investments thereof shall be paid into the general revenue
fund. The liability of the State upon the Bonds shall
continue, provided that the holders thereof shall thereafter
be entitled to payment only out of the moneys deposited in
the escrow account.
Except as otherwise herein provided in this Section, such
refunding Bonds shall in all other respects be subject to the
terms and conditions of this Act.
(Source: P.A. 87-836; 87-873; 88-93; 88-552.)
(30 ILCS 330/20) (from Ch. 127, par. 669a)
Sec. 20. A separate fund in the State treasury called
the "General Obligation Bond Rebate Fund" is hereby created.
The State Treasurer is hereby authorized to create such
separate accounts within the General Obligation Bond Rebate
Fund from time to time in connection with the issuance of
Bonds pursuant to this Act and to transfer moneys to the
General Obligation Bond Rebate Fund from the Funds described
in subsection (a) of Section 19 of this Act at such times and
in such amounts as shall be deemed necessary to preserve the
exclusion of the interest earned by the owners of Bonds
issued under this Act from the federal gross income of such
owners. This Act shall constitute an irrevocable and
continuing appropriation of all amounts necessary for the
purpose described in this Section.
(Source: P.A. 85-1135.)
Section 10. The State Finance Act is amended by
re-enacting Section 5.242 as follows:
(30 ILCS 105/5.242) (from Ch. 127, par. 141.242)
Sec. 5.242. The General Obligation Bond Rebate Fund.
(Source: P.A. 85-1135.)
Section 15. The Build Illinois Bond Act is amended by
re-enacting Sections 2, 4, 11, and 13 as follows:
(30 ILCS 425/2) (from Ch. 127, par. 2802)
Sec. 2. Authorization for Bonds. The State of Illinois
is authorized to issue, sell and provide for the retirement
of limited obligation bonds, notes and other evidences of
indebtedness of the State of Illinois in the total principal
amount of $2,036,500,000 herein called "Bonds". Such
authorized amount of Bonds shall be reduced from time to time
by amounts, if any, which are equal to the moneys received by
the Department of Revenue in any fiscal year pursuant to
Section 3-1001 of the "Illinois Vehicle Code", as amended, in
excess of the Annual Specified Amount (as defined in Section
3 of the "Retailers' Occupation Tax Act", as amended) and
transferred at the end of such fiscal year from the General
Revenue Fund to the Build Illinois Purposes Fund as provided
in Section 3-1001 of said Code; provided, however, that no
such reduction shall affect the validity or enforceability of
any Bonds issued prior to such reduction. Such amount of
authorized Bonds shall be exclusive of any refunding Bonds
issued pursuant to Section 15 of this Act and exclusive of
any Bonds issued pursuant to this Section which are redeemed,
purchased, advance refunded, or defeased in accordance with
paragraph (f) of Section 4 of this Act. Bonds shall be
issued for the categories and specific purposes expressed in
Section 4 of this Act.
(Source: P.A. 86-44; 86-78; 86-1473.)
(30 ILCS 425/4) (from Ch. 127, par. 2804)
Sec. 4. Purposes of Bonds. Bonds shall be issued for the
following purposes and in the approximate amounts as set
forth below:
(a) $1,470,419,000 for the expenses of issuance and sale
of Bonds, including bond discounts, and for planning,
engineering, acquisition, construction, reconstruction,
development, improvement and extension of the public
infrastructure in the State of Illinois, including: the
making of loans or grants to local governments for waste
disposal systems, water and sewer line extensions and water
distribution and purification facilities, rail or air or
water port improvements, gas and electric utility extensions,
publicly owned industrial and commercial sites, buildings
used for public administration purposes and other public
infrastructure capital improvements; the making of loans or
grants to units of local government for financing and
construction of wastewater facilities; refinancing or
retiring bonds issued between January 1, 1987 and January 1,
1990 by home rule municipalities, debt service on which is
provided from a tax imposed by home rule municipalities prior
to January 1, 1990 on the sale of food and drugs pursuant to
Section 8-11-1 of the Home Rule Municipal Retailers'
Occupation Tax Act or Section 8-11-5 of the Home Rule
Municipal Service Occupation Tax Act; the making of deposits
not to exceed $70,000,000 in the aggregate into the Water
Pollution Control Revolving Fund to provide assistance in
accordance with the provisions of Title IV-A of the
Environmental Protection Act; the planning, engineering,
acquisition, construction, reconstruction, alteration,
expansion, extension and improvement of highways, bridges,
structures separating highways and railroads, rest areas,
interchanges, access roads to and from any State or local
highway and other transportation improvement projects which
are related to economic development activities; the making of
loans or grants for planning, engineering, rehabilitation,
improvement or construction of rail and transit facilities;
the planning, engineering, acquisition, construction,
reconstruction and improvement of watershed, drainage, flood
control, recreation and related improvements and facilities,
including expenses related to land and easement acquisition,
relocation, control structures, channel work and clearing and
appurtenant work; the making of grants for improvement and
development of zoos and park district field houses and
related structures; and the making of grants for improvement
and development of Navy Pier and related structures.
(b) $46,301,500 for fostering economic development and
increased employment and the well being of the citizens of
Illinois, including: the making of grants for improvement and
development of McCormick Place and related structures; the
planning and construction of a microelectronics research
center, including the planning, engineering, construction,
improvement, renovation and acquisition of buildings,
equipment and related utility support systems; the making of
loans to businesses and investments in small businesses;
acquiring real properties for industrial or commercial site
development; acquiring, rehabilitating and reconveying
industrial and commercial properties for the purpose of
expanding employment and encouraging private and other public
sector investment in the economy of Illinois; the payment of
expenses associated with siting the Superconducting Super
Collider Particle Accelerator in Illinois and with its
acquisition, construction, maintenance, operation, promotion
and support; the making of loans for the planning,
engineering, acquisition, construction, improvement and
conversion of facilities and equipment which will foster the
use of Illinois coal; the payment of expenses associated with
the promotion, establishment, acquisition and operation of
small business incubator facilities and agribusiness research
facilities, including the lease, purchase, renovation,
planning, engineering, construction and maintenance of
buildings, utility support systems and equipment designated
for such purposes and the establishment and maintenance of
centralized support services within such facilities; and the
making of grants or loans to units of local government for
Urban Development Action Grant and Housing Partnership
programs.
(c) $461,128,600 for the development and improvement of
educational, scientific, technical and vocational programs
and facilities and the expansion of health and human services
for all citizens of Illinois, including: the making of
construction and improvement grants and loans to public
libraries and library systems; the making of grants and loans
for planning, engineering, acquisition and construction of a
new State central library in Springfield; the planning,
engineering, acquisition and construction of an animal and
dairy sciences facility; the planning, engineering,
acquisition and construction of a campus and all related
buildings, facilities, equipment and materials for Richland
Community College; the acquisition, rehabilitation and
installation of equipment and materials for scientific and
historical surveys; the making of grants or loans for
distribution to eligible vocational education instructional
programs for the upgrading of vocational education programs,
school shops and laboratories, including the acquisition,
rehabilitation and installation of technical equipment and
materials; the making of grants or loans for distribution to
eligible local educational agencies for the upgrading of math
and science instructional programs, including the acquisition
of instructional equipment and materials; miscellaneous
capital improvements for universities and community colleges
including the planning, engineering, construction,
reconstruction, remodeling, improvement, repair and
installation of capital facilities and costs of planning,
supplies, equipment, materials, services, and all other
required expenses; the making of grants or loans for repair,
renovation and miscellaneous capital improvements for
privately operated colleges and universities and community
colleges, including the planning, engineering, acquisition,
construction, reconstruction, remodeling, improvement, repair
and installation of capital facilities and costs of planning,
supplies, equipment, materials, services, and all other
required expenses; and the making of grants or loans for
distribution to local governments for hospital and other
health care facilities including the planning, engineering,
acquisition, construction, reconstruction, remodeling,
improvement, repair and installation of capital facilities
and costs of planning, supplies, equipment, materials,
services and all other required expenses.
(d) $58,650,900 for protection, preservation,
restoration and conservation of environmental and natural
resources, including: the making of grants to soil and water
conservation districts for the planning and implementation of
conservation practices and for funding contracts with the
Soil Conservation Service for watershed planning; the making
of grants to units of local government for the capital
development and improvement of recreation areas, including
planning and engineering costs, sewer projects, including
planning and engineering costs and water projects, including
planning and engineering costs, and for the acquisition of
open space lands, including the acquisition of easements and
other property interests of less than fee simple ownership;
the acquisition and related costs and development and
management of natural heritage lands, including natural areas
and areas providing habitat for endangered species and
nongame wildlife, and buffer area lands; the acquisition and
related costs and development and management of habitat
lands, including forest, wildlife habitat and wetlands; and
the removal and disposition of hazardous substances,
including the cost of project management, equipment,
laboratory analysis, and contractual services necessary for
preventative and corrective actions related to the
preservation, restoration and conservation of the
environment.
(e) The amount specified in paragraph (a) above shall
include an amount necessary to pay reasonable expenses of
each issuance and sale of the Bonds, as specified in the
related Bond Sale Order (hereinafter defined).
(f) Any unexpended proceeds from any sale of Bonds which
are held in the Build Illinois Bond Fund may be used to
redeem, purchase, advance refund, or defease any Bonds
outstanding.
(Source: P.A. 86-44; 86-78; 86-1028; 86-1473; 87-873.)
(30 ILCS 425/11) (from Ch. 127, par. 2811)
Sec. 11. Repayment. (a) To provide for the repayment of
Bonds and required deposits into reserve funds required to be
maintained as security for the Bonds, the Governor shall
include an appropriation in each annual State Budget of
moneys in the following amounts for the following fiscal
years 1986 through 1993:
Fiscal Year Amount Appropriated
1986 $15,000,000
1987 $25,000,000
1988 $40,000,000
1989 $54,000,000
1990 $ 85,400,000
1991 $133,600,000
1992 $164,400,000
1993 $188,900,000
To provide for the repayment of Bonds in fiscal years
1994 and thereafter, the Governor shall include an
appropriation in each annual State Budget of moneys in such
amount as shall be necessary and sufficient, for the period
covered by such Budget, to pay the interest, as it shall
accrue, on all Bonds issued under this Act, to pay and
discharge the principal of such Bonds, including any sinking
fund redemptions, as shall fall due during such period, to
pay the premium, if any, on Bonds to be redeemed prior to
maturity and to make required deposits to any reserve funds
required to be maintained as security for Bonds or for the
purpose of retiring or defeasing Bonds, including any
replenishments in the event of deficiencies in any reserve
funds; provided, however, that amounts included in such
appropriations for payment of interest on Variable Rate Bonds
shall be the maximum amounts of interest which may be payable
for the period covered by such Budget after taking into
account any credits permitted in the related indenture
against the amount of such interest required to be
appropriated for such period; and, further provided that such
appropriated amount shall not be less than the Annual
Specified Amount (as defined in Section 3 of the "Retailers'
Occupation Tax Act", as amended) for any such fiscal year.
(b) A separate fund in the State Treasury called the
"Build Illinois Bond Retirement and Interest Fund" is hereby
created.
(c) The General Assembly shall annually make
appropriations to pay the principal of and interest and
premium, if any, on the Bonds sold under this Act and to make
required deposits into reserve funds required to be
maintained as security for the Bonds from the Build Illinois
Bond Retirement and Interest Fund in the following amounts
for the following fiscal years 1986 through 1993:
Fiscal Year Amount Appropriated
1986 $15,000,000
1987 $25,000,000
1988 $40,000,000
1989 $54,000,000
1990 $ 85,400,000
1991 $133,600,000
1992 $164,400,000
1993 $188,900,000
To provide for the repayment of the Bonds and required
reserve fund deposits in fiscal years 1994 and thereafter the
General Assembly shall annually make appropriations from the
Build Illinois Bond Retirement and Interest Fund in such
amounts as shall be necessary and sufficient to pay the
principal of, premium, if any, and interest on the Bonds
coming due in each such fiscal year, including any sinking
fund redemptions, and to make required deposits to reserve
funds for the purpose of securing Bonds or retiring or
defeasing Bonds, including replenishment of any deficiencies
therein; provided, however, that amounts included in such
appropriations for payment of interest on Variable Rate Bonds
shall be the maximum amounts of interest which may be payable
during such fiscal year after taking into account any credits
permitted in the related indenture against the amount of such
interest required to be appropriated for such period; and,
further provided, that such appropriated amount shall not be
less than the Annual Specified Amount for any such fiscal
year. If for any reason the State Treasurer and Comptroller
fail to (i) credit amounts to the Build Illinois Bond Account
(the "Build Illinois Bond Account") in the Build Illinois
Fund in the State Treasury created under Section 6z-9 of "An
Act in relation to State finance", approved June 10, 1919, as
amended, (the "Finance Act") as required by Sections 6z-9 and
8.25 of the Finance Act or (ii) make transfers to the Build
Illinois Bond Retirement and Interest Fund from the Build
Illinois Bond Account as required by Section 8.25 of the
Finance Act or (iii) make payments from the Build Illinois
Bond Retirement and Interest Fund to the trustee under the
Master Indenture as required by Section 13 of this Act, or if
for any reason the General Assembly fails to make
appropriations from the Build Illinois Bond Retirement and
Interest Fund sufficient to pay the principal of and interest
and premium, if any, on the Bonds, as the same by their terms
shall become due, and to make required deposits into reserve
funds required to be maintained as security for the Bonds or
to retire or defease Bonds, including replenishment of any
deficiencies, this Act shall constitute an irrevocable and
continuing appropriation of all amounts necessary for all of
the above purposes, and the irrevocable and continuing
authority for and direction to the State Treasurer and the
Comptroller to make the necessary transfers and deposits, as
directed by the Governor, from the sources specified in
Sections 6z-9 and 8.25 of the Finance Act to the Build
Illinois Bond Account and from the Build Illinois Bond
Account to the Build Illinois Bond Retirement and Interest
Fund and to make the necessary payments from the Build
Illinois Bond Retirement and Interest Fund to the trustee
under the Master Indenture.
(Source: P.A. 86-17; 86-44.)
(30 ILCS 425/13) (from Ch. 127, par. 2813)
Sec. 13. Computation of Principal and Interest; Transfer
from Build Illinois Bond Account; Payment from Build Illinois
Bond Retirement and Interest Fund. Upon each delivery of
Bonds authorized to be issued under this Act, the trustee
under the Master Indenture shall compute and certify to the
Director of the Bureau of the Budget, the Comptroller and the
Treasurer (a) the total amount of the principal of and the
interest and the premium, if any, on the Bonds then being
issued and on Bonds previously issued and outstanding that
will be payable in order to retire such Bonds at their stated
maturities or mandatory sinking fund payment dates and (b)
the amount of principal of and interest and premium, if any,
on such Bonds that will be payable on each principal,
interest and mandatory sinking fund payment date according to
the tenor of such Bonds during the then current and each
succeeding fiscal year. Such certifications shall include
with respect to interest payable on Variable Rate Bonds the
maximum amount of interest which may be payable for the
relevant period after taking into account any credits
permitted in the related indenture against the amount of such
interest required to be appropriated for such period pursuant
to subsection (c) of Section 11 of this Act.
On or before June 20, 1993 and on or before each June 20
thereafter so long as Bonds remain outstanding, the trustee
under the Master Indenture shall deliver to the Director of
the Bureau of the Budget, the Comptroller and the Treasurer a
certificate setting forth the "Certified Annual Debt Service
Requirement" (hereinafter defined) for the next succeeding
fiscal year. If Bonds are issued subsequent to the delivery
of any such certificate, upon the issuance of such Bonds the
trustee under the Master Indenture shall deliver a
supplemental certificate setting forth the revisions, if any,
in the Certified Annual Debt Service Requirement resulting
from the issuance of such Bonds. The "Certified Annual Debt
Service Requirement" for any fiscal year shall be an amount
equal to (a) the aggregate amount of principal, interest and
premium, if any, payable on outstanding Bonds during such
fiscal year plus (b) the amount required to be deposited into
any reserve fund securing such Bonds or for the purpose of
retiring or defeasing such Bonds plus (c) the amount of any
deficiencies in required transfers of amounts described in
clauses (a) and (b) for any prior fiscal year, minus (d) the
amount, if any, of such interest to be paid from Bond
proceeds on deposit under any indenture; provided, however,
that interest payable on Variable Rate Bonds shall be
calculated at the maximum rate of interest which may be
payable during such fiscal year after taking into account any
credits permitted in the related indenture against the amount
of such interest required to be appropriated for such period
pursuant to subsection (c) of Section 11 of this Act.
In each month during fiscal years 1986 through 1993, the
State Treasurer and Comptroller shall transfer, on the last
day of such month, from the Build Illinois Bond Account to
the Build Illinois Bond Retirement and Interest Fund and
shall make payment from the Build Illinois Bond Retirement
and Interest Fund to the trustee under the Master Indenture
of an amount equal to 1/12 of 150% of the amount set forth
below for each such fiscal year, plus any cumulative
deficiency in such transfers and payments for prior months;
provided that such transfers shall commence in October, 1985
and such amounts for fiscal year 1986 shall equal 1/9 of 150%
of the amount set forth below for such fiscal year:
Fiscal Year Amount
1986 $15,000,000
1987 $25,000,000
1988 $40,000,000
1989 $54,000,000
1990 $85,400,000
1991 $133,600,000
1992 $164,400,000
1993 $188,900,000
provided that payments of such amounts from the Build
Illinois Bond Retirement and Interest Fund to the trustee
under the Master Indenture shall commence on the last day of
the month in which Bonds are initially issued under this Act;
and, further provided, that the first such payment to said
trustee shall equal the entire amount then on deposit in the
Build Illinois Bond Retirement and Interest Fund; and,
further provided, that the aggregate amount of transfers and
payments for any such fiscal year shall not exceed the amount
set forth above for such fiscal year.
In each month in which Bonds are outstanding during
fiscal year 1994 and each fiscal year thereafter, the State
Treasurer and Comptroller shall transfer, on the last day of
such month, from the Build Illinois Bond Account to the Build
Illinois Bond Retirement and Interest Fund and shall make
payment from the Build Illinois Bond Retirement and Interest
Fund to the trustee under the Master Indenture of an amount
equal to the greater of (a) 1/12th of 150% of the Certified
Annual Debt Service Requirement or (b) the Tax Act Amount (as
defined in Section 3 of the "Retailers' Occupation Tax Act",
as amended) deposited in the Build Illinois Bond Account
during such month, plus any cumulative deficiency in such
transfers and payments for prior months; provided that such
transfers and payments for any such fiscal year shall not
exceed the greater of (a) the Certified Annual Debt Service
Requirement or (b) the Tax Act Amount.
(Source: P.A. 86-17; 86-44; 86-1028.)
Section 20. The Baccalaureate Savings Act is amended by
re-enacting Section 4 as follows:
(110 ILCS 920/4) (from Ch. 144, par. 2404)
Sec. 4. Issuance and Sale of College Savings Bonds. In
order to provide investors with investment alternatives to
enhance their financial access to Institutions of Higher
Education located in the State of Illinois, and in
furtherance of the public policy of this Act, bonds
authorized by the provisions of the General Obligation Bond
Act, in a total aggregate original principal amount not to
exceed $2,200,000,000 may be issued and sold from time to
time, and as often as practicable, as College Savings Bonds
in such amounts as directed by the Governor, upon
recommendation by the Director of the Bureau of the Budget.
Bonds to be issued and sold as College Savings Bonds shall be
designated by the Governor and the Director of the Bureau of
the Budget as "General Obligation College Savings Bonds" in
the proceedings authorizing the issuance of such Bonds, and
shall be subject to all of the terms and provisions of the
General Obligation Bond Act, except that College Savings
Bonds may bear interest payable at such time or times and may
be sold at such prices and in such manner as may be
determined by the Governor and the Director of the Bureau of
the Budget and except as otherwise provided in this Act. If
College Savings Bonds are sold at public sale, the public
sale procedures shall be as set forth in Section 11 of the
General Obligation Bond Act. College Savings Bonds may be
sold at negotiated sale if the Director of the Bureau of the
Budget determines that a negotiated sale will result in
either a more efficient and economic sale of such Bonds or
greater access to such Bonds by investors who are residents
of the State of Illinois. If any College Savings Bonds are
sold at a negotiated sale, the underwriter or underwriters to
which such Bonds are sold shall (a) be organized,
incorporated or have their principal place of business in the
State of Illinois, or (b) in the judgment of the Director of
the Bureau of the Budget, have sufficient capability to make
a broad distribution of such Bonds to investors resident in
the State of Illinois. In determining the aggregate
principal amount of College Savings Bonds that has been
issued pursuant to this Act, the aggregate original principal
amount of such Bonds issued and sold shall be taken into
account. Any bond issued under this Act shall be payable in
one payment on a fixed date, unless the Governor and the
Director of the Bureau of the Budget determine otherwise.
(Source: P.A. 90-1, eff. 2-20-97.)
Section 99. Effective date. This Act takes effect upon
becoming law.
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