|
|
|
|
SB0325 Engrossed |
|
LRB096 08619 NHT 18742 b |
|
|
| 1 |
| AN ACT concerning education.
|
| 2 |
| Be it enacted by the People of the State of Illinois,
|
| 3 |
| represented in the General Assembly:
|
| 4 |
| Section 5. The Higher Education Student Assistance Act is |
| 5 |
| amended by adding Section 152 as follows:
|
| 6 |
| (110 ILCS 947/152 new) |
| 7 |
| Sec. 152. Bonds guaranteed by the State of Illinois. |
| 8 |
| Notwithstanding any other provision of this Act, bonds issued |
| 9 |
| in accordance with the provisions of this Act may be designated |
| 10 |
| by the Commission as guaranteed by the State of Illinois, and |
| 11 |
| any bonds so designated shall so state on the face thereof. |
| 12 |
| This guarantee shall constitute a general obligation of the |
| 13 |
| State of Illinois, and the full faith, credit, and resources of |
| 14 |
| the State of Illinois are hereby irrevocably pledged for the |
| 15 |
| punctual payment of the principal of, interest on, and premium, |
| 16 |
| if any, on any such bond as the same shall become due, whether |
| 17 |
| at maturity or upon any earlier redemption date. The provisions |
| 18 |
| of this Section shall be irrepealable until all such bonds are |
| 19 |
| paid in full as to both principal and interest. Any bonds |
| 20 |
| designated pursuant to this Section shall be issued by the |
| 21 |
| Commission on or prior to December 31, 2009 and shall be |
| 22 |
| limited in aggregate principal issuance amount to not greater |
| 23 |
| than $50,000,000. |
|
|
|
SB0325 Engrossed |
- 2 - |
LRB096 08619 NHT 18742 b |
|
|
| 1 |
| Any bonds designated pursuant to this Section shall mature |
| 2 |
| at such time or times not exceeding 5 years from the date |
| 3 |
| thereof and must be issued with a debt service reserve equal to |
| 4 |
| at least 4% of the principal amount of the bonds, of which 75% |
| 5 |
| of such reserve shall be funded from the proceeds of the bonds, |
| 6 |
| and 25% of such reserve shall be funded by the Commission and |
| 7 |
| not out of proceeds of the bonds. Proceeds of any bonds |
| 8 |
| designated pursuant to this Section may be used only in |
| 9 |
| connection with the rehabilitation loan program, to fund a debt |
| 10 |
| service reserve as herein described, and for costs of issuance |
| 11 |
| of the bonds. |
| 12 |
| Upon written notice to the Governor from the Chairperson of |
| 13 |
| the Commission that the Commission has determined that amounts |
| 14 |
| pledged pursuant to Section 150 of this Act to pay the bonds |
| 15 |
| will not be sufficient for the payment of amounts due with |
| 16 |
| respect to the bonds during the next State of Illinois fiscal |
| 17 |
| year, the Governor shall include an appropriation in the State |
| 18 |
| of Illinois budget for the next fiscal year with respect to the |
| 19 |
| bonds. The appropriation shall be for such amount as determined |
| 20 |
| by the Commission. Amounts included in the appropriation for |
| 21 |
| the payment of interest on variable rate bonds may, at the |
| 22 |
| determination of the Commission, be up to the maximum amount of |
| 23 |
| interest that may be payable for the period covered by the |
| 24 |
| budget; provided that any amounts appropriated for interest on |
| 25 |
| variable rate bonds in excess of amounts necessary to pay the |
| 26 |
| interest shall promptly be reimbursed by the Commission to the |
|
|
|
SB0325 Engrossed |
- 3 - |
LRB096 08619 NHT 18742 b |
|
|
| 1 |
| State of Illinois. |
| 2 |
| If for any reason the General Assembly fails to make |
| 3 |
| appropriations sufficient to pay the principal of, interest on, |
| 4 |
| and premium, if any, on the bonds, as the same by their terms |
| 5 |
| shall become due, this Section shall constitute an irrevocable |
| 6 |
| and continuing appropriation of all amounts necessary for that |
| 7 |
| purpose and the irrevocable and continuing authority for and |
| 8 |
| direction to the State Treasurer and the State Comptroller to |
| 9 |
| make the necessary transfers, as directed by the Governor, out |
| 10 |
| of and disbursements from the revenues and funds of the State |
| 11 |
| of Illinois. |
| 12 |
| The State of Illinois pledges and agrees that it will not |
| 13 |
| limit or alter the rights and powers vested in the Commission |
| 14 |
| in this Section so as to impair the terms of any such |
| 15 |
| irrevocable guarantee of the State of Illinois until each such |
| 16 |
| guarantee is satisfied in full or the bonds shall have |
| 17 |
| otherwise been paid in full. |
| 18 |
| If the State of Illinois fails to honor any guarantee made |
| 19 |
| pursuant to this Section, a civil action to compel payment may |
| 20 |
| be instituted in the Supreme Court of Illinois as a court of |
| 21 |
| original jurisdiction by any holder or holders of the bonds to |
| 22 |
| which such failure relates. Delivery of a summons and a copy of |
| 23 |
| the complaint to the Attorney General shall constitute |
| 24 |
| sufficient service to give the Supreme Court of Illinois |
| 25 |
| jurisdiction of the subject matter of such a suit and |
| 26 |
| jurisdiction over the State of Illinois and its officers named |
|
|
|
SB0325 Engrossed |
- 4 - |
LRB096 08619 NHT 18742 b |
|
|
| 1 |
| as defendants for the purpose of compelling such payment. Any |
| 2 |
| case, controversy, or cause of action concerning the validity |
| 3 |
| of this Section relates to the revenue of the State of |
| 4 |
| Illinois. |
| 5 |
| If the Supreme Court of Illinois denies any holder or |
| 6 |
| holders of bonds leave to file an original action in the |
| 7 |
| Supreme Court, the holder or holders may bring such action in |
| 8 |
| the Circuit Court of Sangamon County.
|
| 9 |
| Section 99. Effective date. This Act takes effect upon |
| 10 |
| becoming law.
|