96TH GENERAL ASSEMBLY
State of Illinois
2009 and 2010
SB0325


 
Introduced 2/6/2009, by Sen. Edward D. Maloney
 
SYNOPSIS AS INTRODUCED:
 		













110 ILCS 947/152 new










    Amends the Higher Education Student Assistance Act.  Provides that bonds issued in accordance with the Act may be designated by the Illinois Student Assistance Commission as guaranteed by the State of Illinois.  Provides that this guarantee shall constitute a general obligation of the State of Illinois, with the full faith, credit, and resources of the State of Illinois irrevocably pledged for the punctual payment of the principal of, interest on, and premium, if any, on any such bond.  Provides that these provisions are irrepealable until all such bonds are paid in full as to both principal and interest.  Provides that any bonds designated pursuant to these provisions shall be issued by the Commission on or prior to December 31, 2009 and shall be limited in aggregate principal issuance amount to not greater than $50,000,000.  Sets forth provisions concerning appropriations for insufficient amounts, a continuing appropriation for insufficient appropriations, the rights and powers of the Commission not being impaired, and allowing a civil action to compel payment.  Effective immediately.
















LRB096 08619 NHT 18742 b

















FISCAL NOTE ACT MAY APPLY


STATE DEBT IMPACT NOTE ACT MAY APPLY
















 


 


A BILL FOR









 











SB0325

LRB096 08619 NHT 18742 b






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    AN ACT concerning education.

 
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    Be it enacted by the People of the State of Illinois,
 
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represented in the General Assembly:


 
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    Section 5. The Higher Education Student Assistance Act is 
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amended  by adding Section 152 as follows:
 
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    (110 ILCS 947/152  new)
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    Sec. 152. Bonds guaranteed by the State of Illinois.  
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Notwithstanding any other provision of this Act, bonds issued 
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in accordance with the provisions of this Act may be designated 
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by the Commission as guaranteed by the State of Illinois, and 
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any bonds so designated shall so state on the face thereof.  
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This guarantee shall constitute a general obligation of the 
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State of Illinois, and the full faith, credit, and resources of 
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the State of Illinois are hereby irrevocably pledged for the 
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punctual payment of the principal of, interest on, and premium, 
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if any, on any such bond as the same shall become due, whether 
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at maturity or upon any earlier redemption date.  The provisions 
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of this Section shall be irrepealable until all such bonds are 
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paid in full as to both principal and interest.  Any bonds 
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designated pursuant to this Section shall be issued by the 
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Commission on or prior to December 31, 2009 and shall be 
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limited in aggregate principal issuance amount to not greater 
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than $50,000,000.
 


 






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    Upon written notice to the Governor from the Chairperson of 
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the Commission that the Commission has determined that amounts 
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pledged pursuant to Section 150 of this Act to pay the bonds 
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will not be sufficient for the payment of amounts due with 
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respect to the bonds during the next State of Illinois fiscal 
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year, the Governor shall include an appropriation in the State 
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of Illinois budget for the next fiscal year with respect to the 
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bonds.  The appropriation shall be for such amount as determined 
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by the Commission.  Amounts included in the appropriation for 
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the payment of interest on variable rate bonds may, at the 
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determination of the Commission, be up to the maximum amount of 
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interest that may be payable for the period covered by the 
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budget; provided that any amounts appropriated for interest on 
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variable rate bonds in excess of amounts necessary to pay the 
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interest shall promptly be reimbursed by the Commission to the 
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State of Illinois.
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    If for any reason the General Assembly fails to make 
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appropriations sufficient to pay the principal of, interest on, 
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and premium, if any, on the bonds, as the same by their terms 
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shall become due, this Section shall constitute an irrevocable 
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and continuing appropriation of all amounts necessary for that 
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purpose and the irrevocable and continuing authority for and 
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direction to the State Treasurer and the State Comptroller to 
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make the necessary transfers, as directed by the Governor, out 
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of and disbursements from the revenues and funds of the State 
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of Illinois.
 


 






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    The State of Illinois pledges and agrees that it will not 
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limit or alter the rights and powers vested in the Commission 
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in this Section so as to impair the terms of any such 
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irrevocable guarantee of the State of Illinois until each such 
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guarantee is satisfied in full or the bonds shall have 
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otherwise been paid in full.
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    If the State of Illinois fails to honor any guarantee made 
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pursuant to this Section, a civil action to compel payment may 
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be instituted in the Supreme Court of Illinois as a court of 
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original jurisdiction by any holder or holders of the bonds to 
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which such failure relates.  Delivery of a summons and a copy of 
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the complaint to the Attorney General shall constitute 
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sufficient service to give the Supreme Court of Illinois 
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jurisdiction of the subject matter of such a suit and 
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jurisdiction over the State of Illinois and its officers named 
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as defendants for the purpose of compelling such payment.  Any 
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case, controversy, or cause of action concerning the validity 
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of this Section relates to the revenue of the State of 
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Illinois.
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    If the Supreme Court of Illinois denies any holder or 
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holders of bonds leave to file an original action in the 
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Supreme Court, the holder or holders may bring such action in 
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the Circuit Court of Sangamon County.
 

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    Section 99. Effective date. This Act takes effect upon 
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becoming law.