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90_HB0290
30 ILCS 330/2 from Ch. 127, par. 652
110 ILCS 920/4 from Ch. 144, par. 2404
Amends the General Obligation Bond Act and the
Baccalaureate Savings Act. Authorizes the amount of
$2,200,000,000 (now $1,700,000,000) for College Savings
Bonds. Effective immediately.
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1 AN ACT concerning bonds, amending named Acts.
2 Be it enacted by the People of the State of Illinois,
3 represented in the General Assembly:
4 Section 5. The General Obligation Bond Act is amended by
5 changing Section 2 as follows:
6 (30 ILCS 330/2) (from Ch. 127, par. 652)
7 Sec. 2. Authorization for Bonds. The State of Illinois
8 is authorized to issue, sell and provide for the retirement
9 of General Obligation Bonds of the State of Illinois in the
10 total amount of $8,646,008,392 $8,146,008,392 herein called
11 "Bonds".
12 Of the total amount of bonds authorized above, up to
13 $2,200,000,000 $1,700,000,000 in aggregate original principal
14 amount may be issued and sold in accordance with the
15 Baccalaureate Savings Act in the form of General Obligation
16 College Savings Bonds.
17 Of the total amount of bonds authorized above, up to
18 $300,000,000 in aggregate original principal amount may be
19 issued and sold in accordance with the Retirement Savings Act
20 in the form of General Obligation Retirement Savings Bonds.
21 The issuance and sale of Bonds pursuant to the General
22 Obligation Bond Act is an economical and efficient method of
23 financing the capital needs of the State. This Act will
24 permit the issuance of a multi-purpose General Obligation
25 Bond with uniform terms and features. This will not only
26 lower the cost of registration but also reduce the overall
27 cost of issuing debt by improving the marketability of
28 Illinois General Obligation Bonds.
29 Bonds shall be issued for the categories and specific
30 purposes expressed in Sections 2 through 8 and Section 16 of
31 this Act.
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1 (Source: P.A. 87-144; 87-173; 87-836; 87-873; 88-93; 88-472;
2 88-552, eff. 7-14-94; 88-670, eff. 12-2-94.)
3 Section 10. The Baccalaureate Savings Act is amended by
4 changing Section 4 as follows:
5 (110 ILCS 920/4) (from Ch. 144, par. 2404)
6 Sec. 4. Issuance and Sale of College Savings Bonds. In
7 order to provide investors with investment alternatives to
8 enhance their financial access to Institutions of Higher
9 Education located in the State of Illinois, and in
10 furtherance of the public policy of this Act, bonds
11 authorized by the provisions of the General Obligation Bond
12 Act, in a total aggregate original principal amount not to
13 exceed $2,200,000,000 $1,700,000,000 may be issued and sold
14 from time to time, and as often as practicable, as College
15 Savings Bonds in such amounts as directed by the Governor,
16 upon recommendation by the Director of the Bureau of the
17 Budget. Bonds to be issued and sold as College Savings Bonds
18 shall be designated by the Governor and the Director of the
19 Bureau of the Budget as "General Obligation College Savings
20 Bonds" in the proceedings authorizing the issuance of such
21 Bonds, and shall be subject to all of the terms and
22 provisions of the General Obligation Bond Act, except that
23 College Savings Bonds may bear interest payable at such time
24 or times and may be sold at such prices and in such manner as
25 may be determined by the Governor and the Director of the
26 Bureau of the Budget and except as otherwise provided in this
27 Act. If College Savings Bonds are sold at public sale, the
28 public sale procedures shall be as set forth in Section 11 of
29 the General Obligation Bond Act. College Savings Bonds may
30 be sold at negotiated sale if the Director of the Bureau of
31 the Budget determines that a negotiated sale will result in
32 either a more efficient and economic sale of such Bonds or
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1 greater access to such Bonds by investors who are residents
2 of the State of Illinois. If any College Savings Bonds are
3 sold at a negotiated sale, the underwriter or underwriters to
4 which such Bonds are sold shall (a) be organized,
5 incorporated or have their principal place of business in the
6 State of Illinois, or (b) in the judgment of the Director of
7 the Bureau of the Budget, have sufficient capability to make
8 a broad distribution of such Bonds to investors resident in
9 the State of Illinois. In determining the aggregate
10 principal amount of College Savings Bonds that has been
11 issued pursuant to this Act, the aggregate original principal
12 amount of such Bonds issued and sold shall be taken into
13 account. Any bond issued under this Act shall be payable in
14 one payment on a fixed date, unless the Governor and the
15 Director of the Bureau of the Budget determine otherwise.
16 (Source: P.A. 87-144; 88-93.)
17 Section 99. This Act takes effect upon becoming law.