Sen. Edward D. Maloney
Filed: 5/30/2005
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| 1 | AMENDMENT TO HOUSE BILL 806
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| 2 | AMENDMENT NO. ______. Amend House Bill 806 by replacing | ||||||
| 3 | everything after the enacting clause with the following:
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| 4 | "Section 5. The Governor's Office of Management and Budget | ||||||
| 5 | Act is amended by changing Section 2 and by adding Section 2.8 | ||||||
| 6 | as follows:
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| 7 | (20 ILCS 3005/2) (from Ch. 127, par. 412)
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| 8 | Sec. 2. There is created in the executive office of the | ||||||
| 9 | Governor an Office
to
be known as the Governor's Office of | ||||||
| 10 | Management and
Budget. The Office shall be headed by a
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| 11 | Director, who shall be appointed by the Governor. The functions | ||||||
| 12 | of the
Office shall be as prescribed in the following Sections | ||||||
| 13 | preceding Section 3
Sections 2.1 through 2.7 of
this
Act.
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| 14 | (Source: P.A. 93-25, eff. 6-20-03.)
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| 15 | (20 ILCS 3005/2.8 new) | ||||||
| 16 | Sec. 2.8. Undertaking of transactions involving the sale or | ||||||
| 17 | transfer of eligible student loans and origination and | ||||||
| 18 | servicing rights. To undertake the sale of eligible student | ||||||
| 19 | loans and origination and servicing rights under Section 140 of | ||||||
| 20 | the Higher Education Student Assistance Act. | ||||||
| 21 | Section 10. The Higher Education Student Assistance Act is | ||||||
| 22 | amended by changing Sections 140 and 160 as follows:
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| 1 | (110 ILCS 947/140)
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| 2 | Sec. 140. Powers and duties. The Commission shall have the | ||||||
| 3 | following
powers in furtherance of the programs authorized by | ||||||
| 4 | this Act:
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| 5 | (a) To adopt rules and regulations governing the | ||||||
| 6 | purchasing, servicing,
and selling of eligible loans and any | ||||||
| 7 | other matters relating to the activities
of the guaranteed loan | ||||||
| 8 | programs.
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| 9 | (b) To perform such other acts as may be necessary or | ||||||
| 10 | appropriate in
connection with the making, purchasing, | ||||||
| 11 | servicing, and selling of eligible
loans.
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| 12 | (c) To sue and be sued in the name of the Commission.
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| 13 | (d) To make, purchase, service, sell, or otherwise deal
in, | ||||||
| 14 | at prices and on terms and conditions determined by the | ||||||
| 15 | Governor's Office of Management and Budget
Commission,
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| 16 | eligible loans, including loans guaranteed by the Commission. | ||||||
| 17 | The Governor's Office of Management and Budget is authorized, | ||||||
| 18 | with the assistance of the Commission, to undertake the sale of | ||||||
| 19 | the Commission's outstanding eligible loans and attendant loan | ||||||
| 20 | origination and servicing rights in an "Eligible Loan Portfolio | ||||||
| 21 | Sale", in the following manner: Any such Eligible Loan | ||||||
| 22 | Portfolio Sale shall be at such prices and upon such terms and | ||||||
| 23 | conditions, including, without limitation, the duties and | ||||||
| 24 | responsibilities with respect to the servicing of outstanding | ||||||
| 25 | eligible loans, all as determined by the Governor's Office of | ||||||
| 26 | Management and Budget, with the assistance of the Commission, | ||||||
| 27 | pursuant to a procurement conducted in accordance with Section | ||||||
| 28 | 20-15 of the Illinois Procurement Code with the assistance of | ||||||
| 29 | the Commission. In connection with an Eligible Loan Portfolio | ||||||
| 30 | Sale: (i) the Commission may agree not to exercise, for a | ||||||
| 31 | specified number of years, any or all of the powers and duties | ||||||
| 32 | specified in the Education Loan Purchase Program Law and (ii) | ||||||
| 33 | the purchasers thereof may be authorized to make and service | ||||||
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| 1 | loans which, if made by the Commission, would constitute | ||||||
| 2 | eligible loans under this Act.
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| 3 | (e) To issue bonds to make or acquire eligible loans or to | ||||||
| 4 | refund the
bonds of the Commission and to provide for the | ||||||
| 5 | security and payment of those
bonds and for the rights of the | ||||||
| 6 | holders thereof.
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| 7 | (f) To retain in accounts designated in the resolution or | ||||||
| 8 | resolutions
authorizing the bonds of the Commission and to | ||||||
| 9 | disburse therefrom all proceeds
from the sale of the bonds of | ||||||
| 10 | the Commission issued pursuant to this Act, all
eligible loans | ||||||
| 11 | receipts received by the Commission, and all earnings received
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| 12 | by the Commission from any authorized investment.
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| 13 | (g) To hire and retain such attorneys, accountants, | ||||||
| 14 | financial advisors,
and other employees as may be required by | ||||||
| 15 | the Commission, to determine their
qualifications, to define | ||||||
| 16 | their duties, to fix their compensation, and to pay
that | ||||||
| 17 | compensation from the proceeds from the sale of the bonds of | ||||||
| 18 | the
Commission issued pursuant to this Act and from the | ||||||
| 19 | earnings received by the
Commission from any authorized | ||||||
| 20 | investment as provided in the resolution or
resolutions | ||||||
| 21 | authorizing the bonds, all notwithstanding any other | ||||||
| 22 | provisions of
this Act or any other law.
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| 23 | (h) To enter into contracts, to execute instruments, to | ||||||
| 24 | invest and to
accumulate assets, to incur liabilities, and to | ||||||
| 25 | do all things necessary or
incidental to the proper management | ||||||
| 26 | of such affairs and the proper conduct of
such business as are | ||||||
| 27 | authorized under this Act.
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| 28 | (Source: P.A. 87-997.)
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| 29 | (110 ILCS 947/160)
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| 30 | Sec. 160. Moneys of the Commission. Notwithstanding the | ||||||
| 31 | provisions of this
Act or of any other law, all proceeds from | ||||||
| 32 | the sale of the bonds of the
Commission issued pursuant to this | ||||||
| 33 | Act or pledged or assigned to or in trust
for the benefit of | ||||||
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| 1 | the holder or holders thereof shall be deposited by the
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| 2 | Chairman of the Commission in such bank or banks or trust | ||||||
| 3 | company or trust
companies as may be designated by the | ||||||
| 4 | Commission, and all deposits of such
moneys shall, if required | ||||||
| 5 | by the Commission, be secured by direct or fully
guaranteed | ||||||
| 6 | obligations of the United States of America, of a market value | ||||||
| 7 | equal
at all times to the amount of the moneys on deposit. Such | ||||||
| 8 | moneys shall be
disbursed as may be directed by the Commission | ||||||
| 9 | and in accordance with the terms
of any agreements with the | ||||||
| 10 | holder or holders of any bonds. This Section shall
not be | ||||||
| 11 | construed as limiting the power of the Commission to agree in | ||||||
| 12 | connection
with the issuance of any of its bonds as to the | ||||||
| 13 | custody and disposition of the
moneys received from the sale of | ||||||
| 14 | the bonds or from the income and revenues
pledged or assigned | ||||||
| 15 | to or in trust for the benefit of the holder or holders
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| 16 | thereof. In addition to the authority otherwise available to | ||||||
| 17 | invest funds, the
Commission may invest any of its funds in | ||||||
| 18 | obligations the interest upon which
is tax-exempt under the | ||||||
| 19 | provision of Section 103 of the Internal Revenue Code
of 1986, | ||||||
| 20 | or any successor code or provision. When all of the bonds of | ||||||
| 21 | the
Commission have been paid or provision has been made for | ||||||
| 22 | the payment thereof
and when the Commission has determined that | ||||||
| 23 | it has accumulated more funds than
are necessary therefor, | ||||||
| 24 | those surplus funds shall be paid into the Student Loan | ||||||
| 25 | Operating Fund established under Section 113 of this Act; and | ||||||
| 26 | provided that in connection with an Eligible Loan Portfolio | ||||||
| 27 | Sale under Section 140 of this Act, after all bonds have been | ||||||
| 28 | paid or defeased or provision has been otherwise made for the | ||||||
| 29 | payment thereof and all costs and expenses incurred in | ||||||
| 30 | connection with such Sale have been paid or provided for, all | ||||||
| 31 | remaining funds derived from such Sale shall be paid one-third | ||||||
| 32 | into the Student Loan Operating Fund, for the sole purpose of | ||||||
| 33 | making grants under Section 35 of this Act, and two-thirds into | ||||||
| 34 | the General Revenue Fund
Student Loan
Fund established under | ||||||
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| 1 | Section 110. No more than 25% of the amounts deposited into the | ||||||
| 2 | Student Loan Operating Fund in any fiscal year pursuant to this | ||||||
| 3 | Section may be expended in each of that and the 3 immediately | ||||||
| 4 | following fiscal years.
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| 5 | (Source: P.A. 87-997.)
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| 6 | Section 99. Effective date. This Act takes effect July 1, | ||||||
| 7 | 2005.".
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