(110 ILCS 525/4) (from Ch. 144, par. 674)
Sec. 4.
Issuance of
bonds.
(A) The Board shall have power, and is hereby authorized from time to
time, to issue negotiable bonds (i) to acquire any one project, or more
than one, or any combination thereof, for the University, or (ii) to refund
bonds heretofore and hereafter issued as hereinafter provided for, or (iii)
for either or both of said purposes. The bonds shall be authorized by
resolution of the Board. The bonds may be issued in one or more series, may
bear such date or dates, may be in such denomination or denominations, may
mature at such time or times not exceeding forty years from the respective
dates thereof, may mature in such amount or amounts, may bear interest at
such rate or rates
as authorized by the
Bond Authorization Act, as amended at the
time of the making of the contract, which rates may be fixed or variable,
payable at any intervals, may be
in such form, either coupon or registered or book entry, may carry such
conversion and registration
privileges, may be executed in such manner, may be made payable in such
medium of payment, at such place or places within or without the state, may
be subject to such terms of redemption prior to their expressed maturity,
with or without premium, as such resolution or other resolutions may
provide. All bonds issued under this Act shall be sold at such price as the Board shall
determine except refunding bonds exchanged on a par
for par basis as hereinafter provided for. Such resolution may provide that
one of the officers shall sign such bonds manually and that the other
signatures may be printed, lithographed or engraved thereon. The bonds
shall be countersigned by the Treasurer of the State of Illinois. The bonds
shall be fully negotiable within the meaning of the Uniform Commercial
Code, approved July 31, 1961, effective July 1, 1962, as amended.
(B) The Board shall have power, and is hereby authorized from time to
time, to issue negotiable refunding bonds (a) to refund unpaid matured
bonds; (b) to refund unpaid interest upon its
unpaid matured bonds; and (c) to refund interest upon
its unpaid matured bonds that has accrued since the maturity of those
bonds. Said refunding bonds may be exchanged for the bonds to be refunded
on a par for par basis of the bonds and interest,
if any, or may be sold at such price as the Board may determine,
or may
be exchanged in part and sold in part, and the proceeds received at any
such sale shall be used to pay the bonds and interest thereon, if any. Bonds
and interest coupons which have been
received in exchange or paid shall be cancelled and the obligation for
interest, not represented by coupons, which has been discharged, shall be
evidenced by a written acknowledgment of the exchange or payment thereof.
(C) The Board shall have power, and is hereby authorized from time to
time, to also issue negotiable refunding bonds hereunder to refund bonds at
or prior to their maturity or which by their terms are subject to
redemption before maturity, or both, in an amount necessary to refund (a)
the principal amount of the bonds to be refunded, (b) the interest to
accrue up to and including the maturity date or dates, or to the next
succeeding redemption date, thereof, and (c) the applicable redemption
premiums, if any. Said refunding bonds may be exchanged for not less than
an equal principal amount of bonds to be refunded or may be sold at such
price as the Board may determine or may be exchanged in part and sold in
part. All proceeds
received at the sale thereof (excepting the accrued interest received)
shall be used:
(i) if the bonds to be refunded are then due, for the payment thereof;
(ii) if the bonds to be refunded are voluntarily surrendered with the
consent of the holder or holders thereof, for the payment thereof;
(iii) if the bonds to be refunded are then subject to prior redemption
by their terms, for the redemption thereof;
(iv) if the bonds to be refunded are not then subject to payment or
redemption, to purchase direct obligations of the United States of America
so long as such obligations will mature at such time or times, with
interest thereon or the proceeds received therefrom, to provide funds
adequate to pay when due or called for redemption prior to maturity the
bonds to be refunded, together with the interest accrued thereon and any
redemption premium due thereon, and such proceeds or obligations of the
United States of America shall, with all other funds legally available for
such purpose, be deposited in escrow with a banking corporation, or
national banking association, located in and doing business in the State of
Illinois, with power to accept and execute trusts, or any successor
thereto, which is also a member of the Federal Deposit Insurance
Corporation and of the Federal Reserve System, to be held in an irrevocable
trust solely for and until the payment and redemption of the bonds so to be
refunded, and any balance remaining in said escrow after the payment and
retirement of the bonds to be refunded shall be returned to said Board to
be used and held for use as revenues pledged for the payment of said
refunding bonds; or
(v) for any combination thereof.
(D) Whenever bonds issued under this Act are sold at a price less than
par, they shall be sold at such price and bear interest at such rate or
rates such that the net interest rate received upon the sale of such bonds
does not exceed the maximum rate determined under Section 2 of the Bond
Authorization Act, as now or hereafter amended.
With respect to instruments for the payment of money issued under this
Section either before, on, or after the effective date of this amendatory
Act of 1989, it is and always has been the intention of the General
Assembly (i) that the Omnibus Bond Acts are and always have been
supplementary grants of power to issue instruments in accordance with the
Omnibus Bond Acts, regardless of any provision of this Act that may appear
to be or to have been more restrictive than those Acts, (ii) that the
provisions of this Section are not a limitation on the supplementary
authority granted by the Omnibus Bond Acts, and (iii) that instruments
issued under this Section within the supplementary authority granted
by the Omnibus Bond Acts are not invalid because of any provision of
this Act that may appear to be or to have been more restrictive than
those Acts.
(Source: P.A. 86-4; 86-517; 86-1028.)
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