Public Act 096-0828
 
SB1514 Enrolled LRB096 10283 RLJ 20453 b

    AN ACT concerning local government.
 
    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
changing Sections 8, 9, 14, and 15 as follows:
 
    (30 ILCS 330/8)  (from Ch. 127, par. 658)
    Sec. 8. Bond sale expenses.
    (a) An amount not to exceed 0.5 percent of the principal
amount of the proceeds of sale of each bond sale is authorized
to be used to pay the reasonable costs of issuance and sale,
including, without limitation, underwriter's discounts and
fees, but excluding bond insurance, of State of Illinois
general obligation bonds authorized and sold pursuant to this
Act, provided that no salaries of State employees or other
State office operating expenses shall be paid out of
non-appropriated proceeds, provided further that the percent
shall be 1.0% for each sale of "Build America Bonds" or
"Qualified School Construction Bonds" as defined in
subsections (d) and (e) of Section 9, respectively. The
Governor's Office of Management and Budget shall compile a
summary of all costs of issuance on each sale (including both
costs paid out of proceeds and those paid out of appropriated
funds) and post that summary on its web site within 20 business
days after the issuance of the Bonds. The summary shall
include, as applicable, the respective percentages of
participation and compensation of each underwriter that is a
member of the underwriting syndicate, legal counsel, financial
advisors, and other professionals for the bond issue and an
identification of all costs of issuance paid to minority owned
businesses, female owned businesses, and businesses owned by
persons with disabilities. The terms "minority owned
businesses", "female owned businesses", and "business owned by
a person with a disability" have the meanings given to those
terms in the Business Enterprise for Minorities, Females, and
Persons with Disabilities Act. That posting shall be maintained
on the web site for a period of at least 30 days. In addition,
the Governor's Office of Management and Budget shall provide a
written copy of each summary of costs to the Speaker and
Minority Leader of the House of Representatives, the President
and Minority Leader of the Senate, and the Commission on
Government Forecasting and Accountability within 20 business
days after each issuance of the Bonds. In addition, the
Governor's Office of Management and Budget shall provide copies
of all contracts under which any costs of issuance are paid or
to be paid to the Commission on Government Forecasting and
Accountability within 20 business days after the issuance of
Bonds for which those costs are paid or to be paid. Instead of
filing a second or subsequent copy of the same contract, the
Governor's Office of Management and Budget may file a statement
that specified costs are paid under specified contracts filed
earlier with the Commission.
    (b) The Director of the Governor's Office of Management and
Budget shall not, in connection with the issuance of Bonds,
contract with any underwriter, financial advisor, or attorney
unless that underwriter, financial advisor, or attorney
certifies that the underwriter, financial advisor, or attorney
has not and will not pay a contingent fee, whether directly or
indirectly, to a third party for having promoted the selection
of the underwriter, financial advisor, or attorney for that
contract. In the event that the Governor's Office of Management
and Budget determines that an underwriter, financial advisor,
or attorney has filed a false certification with respect to the
payment of contingent fees, the Governor's Office of Management
and Budget shall not contract with that underwriter, financial
advisor, or attorney, or with any firm employing any person who
signed false certifications, for a period of 2 calendar years,
beginning with the date the determination is made. The validity
of Bonds issued under such circumstances of violation pursuant
to this Section shall not be affected.
(Source: P.A. 93-2, eff. 4-7-03; 93-839, eff. 7-30-04; 93-1067,
eff. 1-15-05.)
 
    (30 ILCS 330/9)  (from Ch. 127, par. 659)
    Sec. 9. Conditions for Issuance and Sale of Bonds -
Requirements for Bonds.
    (a) Except as otherwise provided in this subsection, Bonds
shall be issued and sold from time to time, in one or more
series, in such amounts and at such prices as may be directed
by the Governor, upon recommendation by the Director of the
Governor's Office of Management and Budget. Bonds shall be in
such form (either coupon, registered or book entry), in such
denominations, payable within 25 years from their date, subject
to such terms of redemption with or without premium, bear
interest payable at such times and at such fixed or variable
rate or rates, and be dated as shall be fixed and determined by
the Director of the Governor's Office of Management and Budget
in the order authorizing the issuance and sale of any series of
Bonds, which order shall be approved by the Governor and is
herein called a "Bond Sale Order"; provided however, that
interest payable at fixed or variable rates shall not exceed
that permitted in the Bond Authorization Act, as now or
hereafter amended. Bonds shall be payable at such place or
places, within or without the State of Illinois, and may be
made registrable as to either principal or as to both principal
and interest, as shall be specified in the Bond Sale Order.
Bonds may be callable or subject to purchase and retirement or
tender and remarketing as fixed and determined in the Bond Sale
Order. Bonds, other than Bonds issued under Section 3 of this
Act for the costs associated with the purchase and
implementation of information technology, (i) except for
refunding Bonds satisfying the requirements of Section 16 of
this Act and sold during fiscal year 2009, 2010, or 2011, must
be issued with principal or mandatory redemption amounts in
equal amounts, with the first maturity issued occurring within
the fiscal year in which the Bonds are issued or within the
next succeeding fiscal year and (ii) must mature or be subject
to mandatory redemption each fiscal year thereafter up to 25
years, except for refunding Bonds satisfying the requirements
of Section 16 of this Act and sold during fiscal year 2009,
2010, or 2011 which must mature or be subject to mandatory
redemption each fiscal year thereafter up to 16 years. Bonds
issued under Section 3 of this Act for the costs associated
with the purchase and implementation of information technology
must be issued with principal or mandatory redemption amounts
in equal amounts, with the first maturity issued occurring with
the fiscal year in which the respective bonds are issued or
with the next succeeding fiscal year, with the respective bonds
issued maturing or subject to mandatory redemption each fiscal
year thereafter up to 10 years. Notwithstanding any provision
of this Act to the contrary, the Bonds authorized by Public Act
96-43 this amendatory Act of the 96th General Assembly shall be
payable within 5 years from their date and must be issued with
principal or mandatory redemption amounts in equal amounts,
with payment of principal or mandatory redemption beginning in
the first fiscal year following the fiscal year in which the
Bonds are issued.
    In the case of any series of Bonds bearing interest at a
variable interest rate ("Variable Rate Bonds"), in lieu of
determining the rate or rates at which such series of Variable
Rate Bonds shall bear interest and the price or prices at which
such Variable Rate Bonds shall be initially sold or remarketed
(in the event of purchase and subsequent resale), the Bond Sale
Order may provide that such interest rates and prices may vary
from time to time depending on criteria established in such
Bond Sale Order, which criteria may include, without
limitation, references to indices or variations in interest
rates as may, in the judgment of a remarketing agent, be
necessary to cause Variable Rate Bonds of such series to be
remarketable from time to time at a price equal to their
principal amount, and may provide for appointment of a bank,
trust company, investment bank, or other financial institution
to serve as remarketing agent in that connection. The Bond Sale
Order may provide that alternative interest rates or provisions
for establishing alternative interest rates, different
security or claim priorities, or different call or amortization
provisions will apply during such times as Variable Rate Bonds
of any series are held by a person providing credit or
liquidity enhancement arrangements for such Bonds as
authorized in subsection (b) of this Section. The Bond Sale
Order may also provide for such variable interest rates to be
established pursuant to a process generally known as an auction
rate process and may provide for appointment of one or more
financial institutions to serve as auction agents and
broker-dealers in connection with the establishment of such
interest rates and the sale and remarketing of such Bonds.
    (b) In connection with the issuance of any series of Bonds,
the State may enter into arrangements to provide additional
security and liquidity for such Bonds, including, without
limitation, bond or interest rate insurance or letters of
credit, lines of credit, bond purchase contracts, or other
arrangements whereby funds are made available to retire or
purchase Bonds, thereby assuring the ability of owners of the
Bonds to sell or redeem their Bonds. The State may enter into
contracts and may agree to pay fees to persons providing such
arrangements, but only under circumstances where the Director
of the Governor's Office of Management and Budget certifies
that he or she reasonably expects the total interest paid or to
be paid on the Bonds, together with the fees for the
arrangements (being treated as if interest), would not, taken
together, cause the Bonds to bear interest, calculated to their
stated maturity, at a rate in excess of the rate that the Bonds
would bear in the absence of such arrangements.
    The State may, with respect to Bonds issued or anticipated
to be issued, participate in and enter into arrangements with
respect to interest rate protection or exchange agreements,
guarantees, or financial futures contracts for the purpose of
limiting, reducing, or managing interest rate exposure. The
authority granted under this paragraph, however, shall not
increase the principal amount of Bonds authorized to be issued
by law. The arrangements may be executed and delivered by the
Director of the Governor's Office of Management and Budget on
behalf of the State. Net payments for such arrangements shall
constitute interest on the Bonds and shall be paid from the
General Obligation Bond Retirement and Interest Fund. The
Director of the Governor's Office of Management and Budget
shall at least annually certify to the Governor and the State
Comptroller his or her estimate of the amounts of such net
payments to be included in the calculation of interest required
to be paid by the State.
    (c) Prior to the issuance of any Variable Rate Bonds
pursuant to subsection (a), the Director of the Governor's
Office of Management and Budget shall adopt an interest rate
risk management policy providing that the amount of the State's
variable rate exposure with respect to Bonds shall not exceed
20%. This policy shall remain in effect while any Bonds are
outstanding and the issuance of Bonds shall be subject to the
terms of such policy. The terms of this policy may be amended
from time to time by the Director of the Governor's Office of
Management and Budget but in no event shall any amendment cause
the permitted level of the State's variable rate exposure with
respect to Bonds to exceed 20%.
    (d) "Build America Bonds" in this Section means Bonds
authorized by Section 54AA of the Internal Revenue Code of
1986, as amended ("Internal Revenue Code"), and bonds issued
from time to time to refund or continue to refund "Build
America Bonds".
    (e) Notwithstanding any other provision of this Section,
Qualified School Construction Bonds shall be issued and sold
from time to time, in one or more series, in such amounts and
at such prices as may be directed by the Governor, upon
recommendation by the Director of the Governor's Office of
Management and Budget. Qualified School Construction Bonds
shall be in such form (either coupon, registered or book
entry), in such denominations, payable within 25 years from
their date, subject to such terms of redemption with or without
premium, and if the Qualified School Construction Bonds are
issued with a supplemental coupon, bear interest payable at
such times and at such fixed or variable rate or rates, and be
dated as shall be fixed and determined by the Director of the
Governor's Office of Management and Budget in the order
authorizing the issuance and sale of any series of Qualified
School Construction Bonds, which order shall be approved by the
Governor and is herein called a "Bond Sale Order"; except that
interest payable at fixed or variable rates, if any, shall not
exceed that permitted in the Bond Authorization Act, as now or
hereafter amended. Qualified School Construction Bonds shall
be payable at such place or places, within or without the State
of Illinois, and may be made registrable as to either principal
or as to both principal and interest, as shall be specified in
the Bond Sale Order. Qualified School Construction Bonds may be
callable or subject to purchase and retirement or tender and
remarketing as fixed and determined in the Bond Sale Order.
Qualified School Construction Bonds must be issued with
principal or mandatory redemption amounts or sinking fund
payments into the General Obligation Bond Retirement and
Interest Fund (or subaccount therefor) in equal amounts, with
the first maturity issued, mandatory redemption payment or
sinking fund payment occurring within the fiscal year in which
the Qualified School Construction Bonds are issued or within
the next succeeding fiscal year, with Qualified School
Construction Bonds issued maturing or subject to mandatory
redemption or with sinking fund payments thereof deposited each
fiscal year thereafter up to 25 years. Sinking fund payments
set forth in this subsection shall be permitted only to the
extent authorized in Section 54F of the Internal Revenue Code
or as otherwise determined by the Director of the Governor's
Office of Management and Budget. "Qualified School
Construction Bonds" in this subsection means Bonds authorized
by Section 54F of the Internal Revenue Code and for bonds
issued from time to time to refund or continue to refund such
"Qualified School Construction Bonds".
(Source: P.A. 96-18, eff. 6-26-09; 96-37, eff. 7-13-09; 96-43,
eff. 7-15-09; revised 8-20-09.)
 
    (30 ILCS 330/14)  (from Ch. 127, par. 664)
    Sec. 14. Repayment.
    (a) To provide for the manner of repayment of Bonds, the
Governor shall include an appropriation in each annual State
Budget of monies 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 as shall,
by their terms, fall due during such period, and to pay a
premium, if any, on Bonds to be redeemed prior to the maturity
date, and to pay sinking fund payments in connection with
Qualified School Construction Bonds authorized by subsection
(e) of Section 9. Amounts included in such appropriations for
the payment of interest on variable rate bonds shall be the
maximum amounts of interest that may be payable for the period
covered by the budget, after taking into account any credits
permitted in the related indenture or other instrument against
the amount of such interest required to be appropriated for
such period. Amounts included in such appropriations for the
payment of interest shall include the amounts certified by the
Director of the Governor's Office of Management and Budget
under subsection (b) of Section 9 of this Act.
    (b) A separate fund in the State Treasury called the
"General Obligation Bond Retirement and Interest Fund" is
hereby created.
    (c) The General Assembly shall annually make
appropriations to pay the principal of, interest on, and
premium, if any, on Bonds sold under this Act from the General
Obligation Bond Retirement and Interest Fund. Amounts included
in such appropriations for the payment of interest on variable
rate bonds shall be the maximum amounts of interest that may be
payable during the fiscal year, after taking into account any
credits permitted in the related indenture or other instrument
against the amount of such interest required to be appropriated
for such period. Amounts included in such appropriations for
the payment of interest shall include the amounts certified by
the Director of the Governor's Office of Management and Budget
under subsection (b) of Section 9 of this Act.
    If for any reason there are insufficient funds in either
the General Revenue Fund or the Road Fund to make transfers to
the General Obligation Bond Retirement and Interest Fund as
required by Section 15 of this Act, or if for any reason the
General Assembly fails to make appropriations sufficient to pay
the principal of, interest on, and premium, if any, on the
Bonds, as the same by their terms shall become due, this Act
shall constitute an irrevocable and continuing appropriation
of all amounts necessary for that purpose, and the irrevocable
and continuing authority for and direction to the State
Treasurer and the Comptroller to make the necessary transfers,
as directed by the Governor, out of and disbursements from the
revenues and funds of the State.
    (d) If, because of insufficient funds in either the General
Revenue Fund or the Road Fund, monies have been transferred to
the General Obligation Bond Retirement and Interest Fund, as
required by subsection (c) of this Section, this Act shall
constitute the irrevocable and continuing authority for and
direction to the State Treasurer and Comptroller to reimburse
these funds of the State from the General Revenue Fund or the
Road Fund, as appropriate, by transferring, at such times and
in such amounts, as directed by the Governor, an amount to
these funds equal to that transferred from them.
(Source: P.A. 93-9, eff. 6-3-03; 94-793, eff. 5-19-06.)
 
    (30 ILCS 330/15)  (from Ch. 127, par. 665)
    Sec. 15. Computation of Principal and Interest; transfers.
    (a) Upon each delivery of Bonds authorized to be issued
under this Act, the Comptroller shall compute and certify to
the Treasurer the total amount of principal of, interest on,
and premium, if any, on Bonds issued that will be payable in
order to retire such Bonds, and the amount of principal of,
interest on and premium, if any, on such Bonds that will be
payable on each payment date according to the tenor of such
Bonds during the then current and each succeeding fiscal year,
and the amount of sinking fund payments needed to be deposited
in connection with Qualified School Construction Bonds
authorized by subsection (e) of Section 9. With respect to the
interest payable on variable rate bonds, such certifications
shall be calculated at the maximum rate of interest that may be
payable during the fiscal year, after taking into account any
credits permitted in the related indenture or other instrument
against the amount of such interest required to be appropriated
for such period pursuant to subsection (c) of Section 14 of
this Act. With respect to the interest payable, such
certifications shall include the amounts certified by the
Director of the Governor's Office of Management and Budget
under subsection (b) of Section 9 of this Act.
    On or before the last day of each month the State Treasurer
and Comptroller shall transfer from (1) the Road Fund with
respect to Bonds issued under paragraph (a) of Section 4 of
this Act or Bonds issued for the purpose of refunding such
bonds, and from (2) the General Revenue Fund, with respect to
all other Bonds issued under this Act, to the General
Obligation Bond Retirement and Interest Fund an amount
sufficient to pay the aggregate of the principal of, interest
on, and premium, if any, on Bonds payable, by their terms on
the next payment date divided by the number of full calendar
months between the date of such Bonds and the first such
payment date, and thereafter, divided by the number of months
between each succeeding payment date after the first. Such
computations and transfers shall be made for each series of
Bonds issued and delivered. Interest payable on variable rate
bonds shall be calculated at the maximum rate of interest that
may be payable for the relevant period, after taking into
account any credits permitted in the related indenture or other
instrument against the amount of such interest required to be
appropriated for such period pursuant to subsection (c) of
Section 14 of this Act. Computations of interest shall include
the amounts certified by the Director of the Governor's Office
of Management and Budget under subsection (b) of Section 9 of
this Act. Interest for which moneys have already been deposited
into the capitalized interest account within the General
Obligation Bond Retirement and Interest Fund shall not be
included in the calculation of the amounts to be transferred
under this subsection. Notwithstanding any other provision in
this Section, the transfer provisions provided in this
paragraph shall not apply to transfers made in fiscal year 2010
with respect to Bonds issued in fiscal year 2010 pursuant to
Section 7.2 of this Act. In the case of transfers made in
fiscal year 2010 with respect to the Bonds issued in fiscal
year 2010 pursuant to Section 7.2 of this Act, on or before the
15th day of the month prior to the required debt service
payment, the State Treasurer and Comptroller shall transfer
from the General Revenue Fund to the General Obligation Bond
Retirement and Interest Fund an amount sufficient to pay the
aggregate of the principal of, interest on, and premium, if
any, on the Bonds payable in that next month.
    The transfer of monies herein and above directed is not
required if monies in the General Obligation Bond Retirement
and Interest Fund are more than the amount otherwise to be
transferred as herein above provided, and if the Governor or
his authorized representative notifies the State Treasurer and
Comptroller of such fact in writing.
    (b) After the effective date of this Act, the balance of,
and monies directed to be included in the Capital Development
Bond Retirement and Interest Fund, Anti-Pollution Bond
Retirement and Interest Fund, Transportation Bond, Series A
Retirement and Interest Fund, Transportation Bond, Series B
Retirement and Interest Fund, and Coal Development Bond
Retirement and Interest Fund shall be transferred to and
deposited in the General Obligation Bond Retirement and
Interest Fund. This Fund shall be used to make debt service
payments on the State's general obligation Bonds heretofore
issued which are now outstanding and payable from the Funds
herein listed as well as on Bonds issued under this Act.
    (c) The unused portion of federal funds received for a
capital facilities project, as authorized by Section 3 of this
Act, for which monies from the Capital Development Fund have
been expended shall be deposited upon completion of the project
in the General Obligation Bond Retirement and Interest Fund.
Any federal funds received as reimbursement for the completed
construction of a capital facilities project, as authorized by
Section 3 of this Act, for which monies from the Capital
Development Fund have been expended shall be deposited in the
General Obligation Bond Retirement and Interest Fund.
(Source: P.A. 96-43, eff. 7-15-09.)
 
    Section 10. The Build Illinois Bond Act is amended by
changing Sections 5 and 6 as follows:
 
    (30 ILCS 425/5)  (from Ch. 127, par. 2805)
    Sec. 5. Bond Sale Expenses.
    (a) An amount not to exceed 0.5% of the principal amount of
the proceeds of the sale of each bond sale is authorized to be
used to pay reasonable costs of each issuance and sale of Bonds
authorized and sold pursuant to this Act, including, without
limitation, underwriter's discounts and fees, but excluding
bond insurance, advertising, printing, bond rating, travel of
outside vendors, security, delivery, legal and financial
advisory services, initial fees of trustees, registrars,
paying agents and other fiduciaries, initial costs of credit or
liquidity enhancement arrangements, initial fees of indexing
and remarketing agents, and initial costs of interest rate
swaps, guarantees or arrangements to limit interest rate risk,
as determined in the related Bond Sale Order, from the proceeds
of each Bond sale, provided that no salaries of State employees
or other State office operating expenses shall be paid out of
non-appropriated proceeds, and provided further that the
percent shall be 1.0% for each sale of “Build America Bonds” as
defined in subsection (c) of Section 6. The Governor's Office
of Management and Budget shall compile a summary of all costs
of issuance on each sale (including both costs paid out of
proceeds and those paid out of appropriated funds) and post
that summary on its web site within 20 business days after the
issuance of the bonds. That posting shall be maintained on the
web site for a period of at least 30 days. In addition, the
Governor's Office of Management and Budget shall provide a
written copy of each summary of costs to the Speaker and
Minority Leader of the House of Representatives, the President
and Minority Leader of the Senate, and the Commission on
Government Forecasting and Accountability within 20 business
days after each issuance of the bonds. This summary shall
include, as applicable, the respective percentage of
participation and compensation of each underwriter that is a
member of the underwriting syndicate, legal counsel, financial
advisors, and other professionals for the Bond issue, and an
identification of all costs of issuance paid to minority owned
businesses, female owned businesses, and businesses owned by
persons with disabilities. The terms "minority owned
businesses", "female owned businesses", and "business owned by
a person with a disability" have the meanings given to those
terms in the Business Enterprise for Minorities, Females, and
Persons with Disabilities Act. In addition, the Governor's
Office of Management and Budget shall provide copies of all
contracts under which any costs of issuance are paid or to be
paid to the Commission on Government Forecasting and
Accountability within 20 business days after the issuance of
Bonds for which those costs are paid or to be paid. Instead of
filing a second or subsequent copy of the same contract, the
Governor's Office of Management and Budget may file a statement
that specified costs are paid under specified contracts filed
earlier with the Commission.
    (b) The Director of the Governor's Office of Management and
Budget shall not, in connection with the issuance of Bonds,
contract with any underwriter, financial advisor, or attorney
unless that underwriter, financial advisor, or attorney
certifies that the underwriter, financial advisor, or attorney
has not and will not pay a contingent fee, whether directly or
indirectly, to any third party for having promoted the
selection of the underwriter, financial advisor, or attorney
for that contract. In the event that the Governor's Office of
Management and Budget determines that an underwriter,
financial advisor, or attorney has filed a false certification
with respect to the payment of contingent fees, the Governor's
Office of Management and Budget shall not contract with that
underwriter, financial advisor, or attorney, or with any firm
employing any person who signed false certifications, for a
period of 2 calendar years, beginning with the date the
determination is made. The validity of Bonds issued under such
circumstances of violation pursuant to this Section shall not
be affected.
(Source: P.A. 93-839, eff. 7-30-04; 93-1067, eff. 1-15-05.)
 
    (30 ILCS 425/6)  (from Ch. 127, par. 2806)
    Sec. 6. Conditions for Issuance and Sale of Bonds -
Requirements for Bonds - Master and Supplemental Indentures -
Credit and Liquidity Enhancement.
    (a) Bonds shall be issued and sold from time to time, in
one or more series, in such amounts and at such prices as
directed by the Governor, upon recommendation by the Director
of the Governor's Office of Management and Budget. Bonds shall
be payable only from the specific sources and secured in the
manner provided in this Act. Bonds shall be in such form, in
such denominations, mature on such dates within 25 years from
their date of issuance, be subject to optional or mandatory
redemption, bear interest payable at such times and at such
rate or rates, fixed or variable, and be dated as shall be
fixed and determined by the Director of the Governor's Office
of Management and Budget in an order authorizing the issuance
and sale of any series of Bonds, which order shall be approved
by the Governor and is herein called a "Bond Sale Order";
provided, however, that interest payable at fixed rates shall
not exceed that permitted in "An Act to authorize public
corporations to issue bonds, other evidences of indebtedness
and tax anticipation warrants subject to interest rate
limitations set forth therein", approved May 26, 1970, as now
or hereafter amended, and interest payable at variable rates
shall not exceed the maximum rate permitted in the Bond Sale
Order. Said Bonds shall be payable at such place or places,
within or without the State of Illinois, and may be made
registrable as to either principal only or as to both principal
and interest, as shall be specified in the Bond Sale Order.
Bonds may be callable or subject to purchase and retirement or
remarketing as fixed and determined in the Bond Sale Order.
Bonds (i) except for refunding Bonds satisfying the
requirements of Section 15 of this Act and sold during fiscal
year 2009, 2010, or 2011, must be issued with principal or
mandatory redemption amounts in equal amounts, with the first
maturity issued occurring within the fiscal year in which the
Bonds are issued or within the next succeeding fiscal year and
(ii) must mature or be subject to mandatory redemption each
fiscal year thereafter up to 25 years, except for refunding
Bonds satisfying the requirements of Section 16 of this Act and
sold during fiscal year 2009, 2010, or 2011 which must mature
or be subject to mandatory redemption each fiscal year
thereafter up to 16 years.
    All Bonds authorized under this Act shall be issued
pursuant to a master trust indenture ("Master Indenture")
executed and delivered on behalf of the State by the Director
of the Governor's Office of Management and Budget, such Master
Indenture to be in substantially the form approved in the Bond
Sale Order authorizing the issuance and sale of the initial
series of Bonds issued under this Act. Such initial series of
Bonds may, and each subsequent series of Bonds shall, also be
issued pursuant to a supplemental trust indenture
("Supplemental Indenture") executed and delivered on behalf of
the State by the Director of the Governor's Office of
Management and Budget, each such Supplemental Indenture to be
in substantially the form approved in the Bond Sale Order
relating to such series. The Master Indenture and any
Supplemental Indenture shall be entered into with a bank or
trust company in the State of Illinois having trust powers and
possessing capital and surplus of not less than $100,000,000.
Such indentures shall set forth the terms and conditions of the
Bonds and provide for payment of and security for the Bonds,
including the establishment and maintenance of debt service and
reserve funds, and for other protections for holders of the
Bonds. The term "reserve funds" as used in this Act shall
include funds and accounts established under indentures to
provide for the payment of principal of and premium and
interest on Bonds, to provide for the purchase, retirement or
defeasance of Bonds, to provide for fees of trustees,
registrars, paying agents and other fiduciaries and to provide
for payment of costs of and debt service payable in respect of
credit or liquidity enhancement arrangements, interest rate
swaps or guarantees or financial futures contracts and indexing
and remarketing agents' services.
    In the case of any series of Bonds bearing interest at a
variable interest rate ("Variable Rate Bonds"), in lieu of
determining the rate or rates at which such series of Variable
Rate Bonds shall bear interest and the price or prices at which
such Variable Rate Bonds shall be initially sold or remarketed
(in the event of purchase and subsequent resale), the Bond Sale
Order may provide that such interest rates and prices may vary
from time to time depending on criteria established in such
Bond Sale Order, which criteria may include, without
limitation, references to indices or variations in interest
rates as may, in the judgment of a remarketing agent, be
necessary to cause Bonds of such series to be remarketable from
time to time at a price equal to their principal amount (or
compound accreted value in the case of original issue discount
Bonds), and may provide for appointment of indexing agents and
a bank, trust company, investment bank or other financial
institution to serve as remarketing agent in that connection.
The Bond Sale Order may provide that alternative interest rates
or provisions for establishing alternative interest rates,
different security or claim priorities or different call or
amortization provisions will apply during such times as Bonds
of any series are held by a person providing credit or
liquidity enhancement arrangements for such Bonds as
authorized in subsection (b) of Section 6 of this Act.
    (b) In connection with the issuance of any series of Bonds,
the State may enter into arrangements to provide additional
security and liquidity for such Bonds, including, without
limitation, bond or interest rate insurance or letters of
credit, lines of credit, bond purchase contracts or other
arrangements whereby funds are made available to retire or
purchase Bonds, thereby assuring the ability of owners of the
Bonds to sell or redeem their Bonds. The State may enter into
contracts and may agree to pay fees to persons providing such
arrangements, but only under circumstances where the Director
of the Bureau of the Budget (now Governor's Office of
Management and Budget) certifies that he reasonably expects the
total interest paid or to be paid on the Bonds, together with
the fees for the arrangements (being treated as if interest),
would not, taken together, cause the Bonds to bear interest,
calculated to their stated maturity, at a rate in excess of the
rate which the Bonds would bear in the absence of such
arrangements. Any bonds, notes or other evidences of
indebtedness issued pursuant to any such arrangements for the
purpose of retiring and discharging outstanding Bonds shall
constitute refunding Bonds under Section 15 of this Act. The
State may participate in and enter into arrangements with
respect to interest rate swaps or guarantees or financial
futures contracts for the purpose of limiting or restricting
interest rate risk; provided that such arrangements shall be
made with or executed through banks having capital and surplus
of not less than $100,000,000 or insurance companies holding
the highest policyholder rating accorded insurers by A.M. Best &
Co. or any comparable rating service or government bond
dealers reporting to, trading with, and recognized as primary
dealers by a Federal Reserve Bank and having capital and
surplus of not less than $100,000,000, or other persons whose
debt securities are rated in the highest long-term categories
by both Moody's Investors' Services, Inc. and Standard & Poor's
Corporation. Agreements incorporating any of the foregoing
arrangements may be executed and delivered by the Director of
the Governor's Office of Management and Budget on behalf of the
State in substantially the form approved in the Bond Sale Order
relating to such Bonds.
    (c) "Build America Bonds" in this Section means Bonds
authorized by Section 54AA of the Internal Revenue Code of
1986, as amended ("Internal Revenue Code"), and bonds issued
from time to time to refund or continue to refund "Build
America Bonds".
(Source: P.A. 96-18, eff. 6-26-09.)
 
    Section 15. The Downstate Forest Preserve District Act is
amended by changing Section 13 as follows:
 
    (70 ILCS 805/13)  (from Ch. 96 1/2, par. 6323)
    Sec. 13. Bonds; limitation on indebtedness. The board of
any forest preserve district organized hereunder may, for any
of the purposes enumerated in this Act, borrow money upon the
faith and credit of such district, and may issue bonds
therefor. However, a district with a population of less than
3,000,000 may not become indebted in any manner or for any
purpose to an amount including existing indebtedness in the
aggregate exceeding 2.3% of the assessed value of the taxable
property therein, as ascertained by the last equalized
assessment for State and county purposes. No district may incur
(i) indebtedness in excess of .3% of the assessed value of
taxable property in the district, as ascertained by the last
equalized assessment for State and county purposes, for the
development of forest preserve lands held by the district, or
(ii) indebtedness for any other purpose except the acquisition
of land including acquiring lands in fee simple along or
enclosing water courses, drainage ways, lakes, ponds, planned
impoundments or elsewhere which are required to store flood
waters or control other drainage and water conditions necessary
for the preservation and management of the water resources of
the District, unless the proposition to issue bonds or
otherwise incur indebtedness is certified by the board to the
proper election officials who shall submit the proposition at
an election in accordance with the general election law, and
approved by a majority of those voting upon the proposition. No
district containing fewer than 3,000,000 inhabitants may incur
indebtedness for the acquisition of land or lands for any
purpose in excess of 55,000 acres, including all lands
theretofore acquired, unless the proposition to issue bonds or
otherwise incur indebtedness is first submitted to the voters
of the district at a referendum in accordance with the general
election law and approved by a majority of those voting upon
the proposition. Before or at the time of issuing bonds, the
board shall provide by ordinance for the collection of an
annual tax sufficient to pay the interest on the bonds as it
falls due, and to pay the bonds as they mature. All bonds
issued by any forest preserve district must be divided into
series, the first of which matures not later than 5 years after
the date of issue and the last of which matures not later than
20 years after the date of issue, or for bonds issued prior to
January 1, 2011, commonly known as "Build America Bonds" as
authorized by Section 54AA of the Internal Revenue Code of
1986, as amended, and for bonds issued from time to time to
refund "Build America Bonds", not later than 25 years after the
date of issue.
    This Section does not apply to a forest preserve district
created under Section 18.5 of the Conservation District Act.
(Source: P.A. 94-617, eff. 8-18-05.)
 
    Section 20. The Metropolitan Water Reclamation District
Act is amended by changing Section 9.6a as follows:
 
    (70 ILCS 2605/9.6a)  (from Ch. 42, par. 328.6a)
    Sec. 9.6a. The corporate authorities of a sanitary
district, in order to provide funds required for the replacing,
remodeling, completing, altering, constructing and enlarging
of sewage treatment works, water quality improvement projects,
or flood control facilities, and additions therefor, pumping
stations, tunnels, conduits, intercepting sewers and outlet
sewers, together with the equipment, including air pollution
equipment, and appurtenances thereto, to acquire property,
real, personal or mixed, necessary for said purposes, for costs
and expenses for the acquisition of the sites and rights-of-way
necessary thereto, and for engineering expenses for designing
and supervising the construction of such works, may issue on or
before December 31, 2016, in addition to all other obligations
heretofore or herein authorized, bonds, notes or other
evidences of indebtedness for such purposes in an aggregate
amount at any one time outstanding not to exceed 3.35% of the
equalized assessed valuation of all taxable property within the
sanitary district, to be ascertained by the last assessment for
State and local taxes previous to the issuance of any such
obligations. Such obligations shall be issued without
submitting the question of such issuance to the legal voters of
such sanitary district for approval.
    The corporate authorities may sell such obligations at
private or public sale and enter into any contract or agreement
necessary, appropriate or incidental to the exercise of the
powers granted by this Act, including, without limitation,
contracts or agreements for the sale and purchase of such
obligations and the payment of costs and expenses incident
thereto. The corporate authorities may pay such costs and
expenses, in whole or in part, from the corporate fund.
    Such obligations shall be issued from time to time only in
amounts as may be required for such purposes but the amount of
such obligations issued during any one budget year shall not
exceed $150,000,000 plus the amount of any obligations
authorized by this Act to be issued during the 3 budget years
next preceding the year of issuance but which were not issued,
provided, however, that this limitation shall not be applicable
(i) to the issuance of obligations to refund bonds, notes or
other evidences of indebtedness, (ii) nor to obligations issued
to provide for the repayment of money received from the Water
Pollution Control Revolving Fund for the construction or repair
of wastewater treatment works, and (iii) to obligations issued
as part of the American Recovery and Reinvestment Act of 2009,
issued prior to January 1, 2011, that are commonly known as
"Build America Bonds" as authorized by Section 54AA of the
Internal Revenue Code of 1986, as amended. Each ordinance
authorizing the issuance of the obligations shall state the
general purpose or purposes for which they are to be issued,
and the corporate authorities may at any time thereafter pass
supplemental appropriations ordinances appropriating the
proceeds from the sale of such obligations for such purposes.
    The corporate authorities may issue bonds, notes or other
evidences of indebtedness in an amount necessary to provide
funds to refund outstanding obligations issued pursuant to this
Section, including interest accrued or to accrue thereon.
(Source: P.A. 95-125, eff. 8-13-07; 95-412, eff. 8-24-07.)
 
    Section 99. Effective date. This Act takes effect upon
becoming law.