Full Text of HB0806 94th General Assembly
HB0806sam002 94TH GENERAL ASSEMBLY
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Sen. Edward D. Maloney
Filed: 5/30/2005
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| AMENDMENT TO HOUSE BILL 806
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| AMENDMENT NO. ______. Amend House Bill 806 by replacing | 3 |
| everything after the enacting clause with the following:
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| "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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| (20 ILCS 3005/2) (from Ch. 127, par. 412)
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| 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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| 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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| (Source: P.A. 93-25, eff. 6-20-03.)
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| (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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| (110 ILCS 947/140)
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| 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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| (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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| (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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| (c) To sue and be sued in the name of the Commission.
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| (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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| 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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| loans which, if made by the Commission, would constitute | 2 |
| eligible loans under this Act.
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| (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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| (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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| by the Commission from any authorized investment.
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| (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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| (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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| (Source: P.A. 87-997.)
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| (110 ILCS 947/160)
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| 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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| the holder or holders thereof shall be deposited by the
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| 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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| 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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| 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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| (Source: P.A. 87-997.)
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| Section 99. Effective date. This Act takes effect July 1, | 7 |
| 2005.".
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