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92_HB2110eng HB2110 Engrossed LRB9200944NTsbA 1 AN ACT concerning higher education student assistance. 2 Be it enacted by the People of the State of Illinois, 3 represented in the General Assembly: 4 Section 5. The Higher Education Student Assistance Act 5 is amended by changing Section 145 as follows: 6 (110 ILCS 947/145) 7 Sec. 145. Issuance of Bonds. 8 (a) The Commission has power, and is authorized from 9 time to time, to issue bonds (1) to make or acquire eligible 10 loans, (2) to refund the bonds of the Commission, or (3) for 11 a combination of such purposes. The Commission shall not have 12 outstanding at any one time bonds in an aggregate principal 13 amount exceeding $4,000,000,000$2,100,000,000, excluding 14 bonds issued to refund the bonds of the Commission. 15 The Commission is authorized to use the proceeds from the 16 sale of bonds issued pursuant to this Act to fund the 17 reserves created therefor, including a reserve for interest 18 coming due on the bonds for one year following the issuance 19 of the bonds, as provided in the resolution or resolutions 20 authorizing the bonds and to pay the necessary expenses of 21 issuing the bonds, including but not limited to, legal, 22 printing, and consulting fees. 23 (b) The Commission has power, and is authorized from 24 time to time, to issue refunding bonds (1) to refund unpaid 25 matured bonds; (2) to refund unpaid matured coupons 26 evidencing interest upon its unpaid matured bonds; and (3) to 27 refund interest at the coupon rate upon its unpaid matured 28 bonds that has accrued since the maturity of those bonds. The 29 refunding bonds may be exchanged for the bonds to be refunded 30 on a par for par basis of the bonds, interest coupons, and 31 interest not represented by coupons, if any, or may be sold HB2110 Engrossed -2- LRB9200944NTsbA 1 at not less than par or may be exchanged in part and sold in 2 part; and the proceeds received at any such sale shall be 3 used to pay the bonds, interest coupons, and interest not 4 represented by coupons, if any. Bonds and interest coupons 5 which have been received in exchange or paid shall be 6 cancelled and the obligation for interest, not represented by 7 coupons which have been discharged, shall be evidenced by a 8 written acknowledgement of the exchange or payment thereof. 9 (c) The Commission has power, and is authorized from 10 time to time, to also issue refunding bonds under this 11 Section, to refund bonds at or prior to their maturity or 12 which by their terms are subject to redemption before 13 maturity, or both, in an amount necessary to refund (1) the 14 principal amount of the bonds to be refunded, (2) the 15 interest to accrue up to and including the maturity date or 16 dates thereof, and (3) the applicable redemption premiums, if 17 any. Those refunding bonds may be exchanged for not less than 18 an equal principal amount of bonds to be refunded or may be 19 sold and the proceeds received at the sale thereof (excepting 20 the accrued interest received) used to complete such 21 refunding, including the payment of the costs of issuance 22 thereof. 23 (d) The bonds shall be authorized by resolution of the 24 Commission and may be issued in one or more series, may bear 25 such date or dates, may be in such denomination or 26 denominations, may mature at such time or times not exceeding 27 40 years from the respective dates thereof, may mature in 28 such amount or amounts, may bear interest at such rate or 29 rates, may be in such form either coupon or registered as to 30 principal only or as to both principal and interest, may 31 carry such registration privileges (including the conversion 32 of a fully registered bond to a coupon bond or bonds and the 33 conversion of a coupon bond to a fully registered bond), may 34 be executed in such manner, may be made payable in such HB2110 Engrossed -3- LRB9200944NTsbA 1 medium of payment, at such place or places within or without 2 the State, and may be subject to such terms of redemption 3 prior to their expressed maturity, with or without premium, 4 as the resolution or other resolutions may provide. Proceeds 5 from the sale of the bonds may be invested as the resolution 6 or resolutions and as the Commission from time to time may 7 provide. All bonds issued under this Act shall be sold in 8 the manner and at such price as the Commission may deem to be 9 in the best interest of the public. The resolution may 10 provide that the bonds be executed with one manual signature 11 and that other signatures may be printed, lithographed or 12 engraved thereon. 13 The Commission shall not be authorized to create and the 14 bonds shall not in any event constitute State debt of the 15 State of Illinois within the meaning of the Constitution or 16 statutes of the State of Illinois, and the same shall be so 17 stated upon the face of each bond. The source of payment for 18 the bonds shall be stated on the face of each bond. 19 The issuance of bonds under this Act is in all respects 20 for the benefit of the People of the State of Illinois, and 21 in consideration thereof the bonds issued pursuant to this 22 Act and the income therefrom shall be free from all taxation 23 by the State or its political subdivisions, except for 24 estate, transfer, and inheritance taxes. For purposes of 25 Section 250 of the Illinois Income Tax Act, the exemption of 26 the income from bonds issued under this Act shall terminate 27 after all of the bonds have been paid. The amount of such 28 income that shall be added and then subtracted on the 29 Illinois income tax return of a taxpayer, pursuant to Section 30 203 of the Illinois Income Tax Act, from federal adjusted 31 gross income or federal taxable income in computing Illinois 32 base income shall be the interest net of any bond premium 33 amortization. 34 (Source: P.A. 89-460, eff. 5-24-96; 90-281, eff. 7-31-97.) HB2110 Engrossed -4- LRB9200944NTsbA 1 Section 99. Effective date. This Act takes effect upon 2 becoming law.