SB0551sam001 97TH GENERAL ASSEMBLY

Sen. Don Harmon

Filed: 3/27/2012

09700SB0551sam001 LRB097 04362 PJG 67783 a

AMENDMENT TO SENATE BILL 551

AMENDMENT NO. ______. Amend Senate Bill 551 by replacing everything after the enacting clause with the following:

"Section 5. The Local Government Debt Reform Act is amended by changing Section 11 as follows:

(30 ILCS 350/11) (from Ch. 17, par. 6911)

Sec. 11. Refundings and redemption premiums. Bonds may be refunded or advance refunded upon such terms as the governing body may set in accordance with this Act, for such term of years, not in excess of the maximum term of years permitted by applicable law for the bonds to be refunded, and in such principal amount, all as may be deemed necessary by the governing body. Revenue bonds may be issued to refund general obligation bonds or alternate bonds issued under this Act. General obligation bonds shall not be issued to refund revenue bonds or alternate bonds except as expressly permitted by applicable law. Any redemption premium payable upon the redemption of bonds may be payable from the proceeds of refunding bonds which may be issued for the purpose of refunding such bonds, from any other lawfully available source or from both proceeds and such other sources.

Bonds that have been refunded shall not be considered to be indebtedness for the purposes of any statutory or other debt limitation if such refunded bonds are secured by and to be paid as to principal, interest, and premium, if any, from an escrow account that is (i) invested in (a) obligations of the United States of America; (b) obligations that are guaranteed by the full faith and credit of the United States of America as to the timely payment of principal and interest; or (c) bonds of any State or governmental unit that are rated at the time of purchase within the 3 highest general classifications established by a rating service of nationally recognized expertise in rating bonds of states and their political subdivisions; and (ii) determined by an independent certified public accountant or nationally recognized feasibility analyst to be sufficient to provide for the timely payment of principal of and interest on the refunded bonds when due or upon redemption.

Any governmental unit may deposit cash into an escrow account to be held uninvested for the purpose of refunding or providing for the payment of principal, interest, and premium, if any, on its bonds, and bonds that have been so refunded or provided for shall not be considered to be indebtedness for the purposes of any statutory or other debt limitation.

(Source: P.A. 90-306, eff. 8-1-97.)

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