(c) The issuance of refunding bonds, the maturities and other details
thereof, the rights of the holders thereof and the rights, duties and
obligations of the Authority in respect of the same shall be governed by
the provisions of this Act, insofar as the same may be applicable, and may
in harmony therewith be augmented or supplemented by resolution or
ordinance to conform to the facts and circumstances prevailing in each
instance of issuance of such refunding bonds; provided that, with respect
to refunding or advance refunding bonds issued before January 1, 1991, the
Authority shall consult with the Illinois
Governor's Office of Management and Budget (formerly
Bureau of the Budget)
to develop
the structure of the proposed transaction.
After the adoption by the Board of an ordinance authorizing the issuance
of such refunding bonds before January 1, 1991, and the execution of any
proposal or contract relating to the sale thereof, the Authority shall
prepare and deliver a report as soon as practical to the Director of the
Governor's Office of Management and Budget (formerly
Bureau of the Budget), the President of the Senate, the Minority Leader of
the Senate, the Speaker of the House of Representatives and the Minority
Leader of the House of Representatives setting forth the amount of
refunding bonds, the interest rate or rates, a schedule of estimated debt
service requirements, the projected cost savings to the State, the method
or manner of the sale and any participants therein, including underwriters,
financial advisors, attorneys, accountants, trustees, printers, registrars
and paying agents.
(d) With reference to the investment of the proceeds of any such
refunding bonds, the interest on which is exempt from tax under federal
law, the Authority shall not authorize or anticipate investment
earnings exceeding such as are authorized or permitted under prevailing
federal laws, regulations and administrative rulings relating to arbitrage
bonds.
(e) The proceeds of any such refunding bonds (together with any other
funds available for application to refunding purposes, if so provided or
permitted by ordinance authorizing the issuance of such refunding bonds or
in a trust agreement securing the same) may be placed in trust to be
applied to the purchase, retirement at maturity or redemption of the bonds
to be refunded on such dates as may be determined by the Authority.
Pending application thereof, the proceeds of such refunding bonds and such
other available funds, if any, may be invested in direct obligations of, or
obligations the principal thereof and the interest on which are
unconditionally guaranteed by, the United States of America which shall
mature, or which shall be subject to redemption by the holder thereof at
its option not later than the respective date or dates when such proceeds
and other available funds, if any, (either together with the interest
accruing thereon or without considering the interest accruing thereon) will
be required for the refunding purpose intended or authorized.
(f) Upon the deposit of the proceeds of the refunding bonds (together
with any other funds available for application to refunding purposes, if so
provided or permitted by ordinance authorizing the issuance of such
refunding bonds or in a trust agreement securing the same) in an
irrevocable trust pursuant to a trust agreement with a
trustee requiring the trustee to satisfy the obligations of the
Authority to timely redeem and retire the outstanding bonds for which the
proceeds and other funds, if any, are deposited, in an amount sufficient to
satisfy the obligation of the Authority to timely redeem and retire such
outstanding bonds or upon the deposit in such irrevocable trust of direct
obligations which, or obligations the principal and interest of which, are
unconditionally guaranteed by the United States of America, in an amount
sufficient to pay all principal and all interest accrued and to be accrued
in respect of the bonds to be refunded from the reinvestment of such
principal and interest, or in such amounts so that upon maturity (or
upon optional redemption by the trustee) of such obligations amounts will be
produced, taking into account investment earnings, on a timely basis
sufficient to satisfy the obligations of the Authority to timely redeem and
retire such outstanding bonds, and notwithstanding any provision of any
ordinance or trust agreement authorizing the issuance of such outstanding
bonds to the contrary, such outstanding bonds shall be deemed paid and no
longer be deemed to be outstanding for purposes of such ordinance or trust
agreement, and all rights and obligations of the
bond holders and the Authority under such prior ordinance or trust agreement
shall be deemed discharged, provided, however, that the holders of such
outstanding bonds shall have an irrevocable and unconditional right to
payment in full of all principal of and premium if any and interest on such
outstanding bonds when due from the amounts on deposit in such trust. The
trustee shall be any trust company or bank in the State of Illinois having
the power of a trust company possessing capital and surplus of not less than $100,000,000.
(g) Bond proceeds on deposit in the construction fund, are authorized to be
used to pay principal or interest on the refunded bonds and the Authority
is authorized to issue bonds for the purpose of reimbursing its
construction fund in the amount of the bond proceeds used in connection with
the refunding issuance. That portion of the bond proceeds used to
reimburse the construction fund shall be deemed refunding bonds for the
purposes of this Act.
(Source: P.A. 94-793, eff. 5-19-06.)
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