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| Public Act 096-0009 |
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AN ACT concerning education.
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Be it enacted by the People of the State of Illinois,
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represented in the General Assembly:
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Section 5. The Higher Education Student Assistance Act is | ||||
amended by adding Section 152 as follows: | ||||
(110 ILCS 947/152 new) | ||||
Sec. 152. Bonds guaranteed by the State of Illinois. | ||||
Notwithstanding any other provision of this Act, bonds issued | ||||
in accordance with the provisions of this Act may be designated | ||||
by the Commission as guaranteed by the State of Illinois, and | ||||
any bonds so designated shall so state on the face thereof. | ||||
This guarantee shall constitute a general obligation of the | ||||
State of Illinois, and the full faith, credit, and resources of | ||||
the State of Illinois are hereby irrevocably pledged for the | ||||
punctual payment of the principal of, interest on, and premium, | ||||
if any, on any such bond as the same shall become due, whether | ||||
at maturity or upon any earlier redemption date. The provisions | ||||
of this Section shall be irrepealable until all such bonds are | ||||
paid in full as to both principal and interest. Any bonds | ||||
designated pursuant to this Section shall be issued by the | ||||
Commission on or prior to December 31, 2009 and shall be | ||||
limited in aggregate principal issuance amount to not greater | ||||
than $50,000,000. | ||||
Any bonds designated pursuant to this Section shall mature | ||
at such time or times not exceeding 5 years from the date | ||
thereof and must be issued with a debt service reserve equal to | ||
at least 4% of the principal amount of the bonds, of which 75% | ||
of such reserve shall be funded from the proceeds of the bonds, | ||
and 25% of such reserve shall be funded by the Commission and | ||
not out of proceeds of the bonds. Proceeds of any bonds | ||
designated pursuant to this Section may be used only in | ||
connection with the rehabilitation loan program, to fund a debt | ||
service reserve as herein described, and for costs of issuance | ||
of the bonds. | ||
Upon written notice to the Governor from the Chairperson of | ||
the Commission that the Commission has determined that amounts | ||
pledged pursuant to Section 150 of this Act to pay the bonds | ||
will not be sufficient for the payment of amounts due with | ||
respect to the bonds during the next State of Illinois fiscal | ||
year, the Governor shall include an appropriation in the State | ||
of Illinois budget for the next fiscal year with respect to the | ||
bonds. The appropriation shall be for such amount as determined | ||
by the Commission. Amounts included in the appropriation for | ||
the payment of interest on variable rate bonds may, at the | ||
determination of the Commission, be up to the maximum amount of | ||
interest that may be payable for the period covered by the | ||
budget; provided that any amounts appropriated for interest on | ||
variable rate bonds in excess of amounts necessary to pay the | ||
interest shall promptly be reimbursed by the Commission to the | ||
State of Illinois. | ||
If for any reason the General Assembly fails to make | ||
appropriations sufficient to pay the principal of, interest on, | ||
and premium, if any, on the bonds, as the same by their terms | ||
shall become due, this Section shall constitute an irrevocable | ||
and continuing appropriation of all amounts necessary for that | ||
purpose and the irrevocable and continuing authority for and | ||
direction to the State Treasurer and the State Comptroller to | ||
make the necessary transfers, as directed by the Governor, out | ||
of and disbursements from the revenues and funds of the State | ||
of Illinois. | ||
The State of Illinois pledges and agrees that it will not | ||
limit or alter the rights and powers vested in the Commission | ||
in this Section so as to impair the terms of any such | ||
irrevocable guarantee of the State of Illinois until each such | ||
guarantee is satisfied in full or the bonds shall have | ||
otherwise been paid in full. | ||
If the State of Illinois fails to honor any guarantee made | ||
pursuant to this Section, a civil action to compel payment may | ||
be instituted in the Supreme Court of Illinois as a court of | ||
original jurisdiction by any holder or holders of the bonds to | ||
which such failure relates. Delivery of a summons and a copy of | ||
the complaint to the Attorney General shall constitute | ||
sufficient service to give the Supreme Court of Illinois | ||
jurisdiction of the subject matter of such a suit and | ||
jurisdiction over the State of Illinois and its officers named | ||
as defendants for the purpose of compelling such payment. Any | ||
case, controversy, or cause of action concerning the validity | ||
of this Section relates to the revenue of the State of | ||
Illinois. | ||
If the Supreme Court of Illinois denies any holder or | ||
holders of bonds leave to file an original action in the | ||
Supreme Court, the holder or holders may bring such action in | ||
the Circuit Court of Sangamon County.
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Section 99. Effective date. This Act takes effect upon | ||
becoming law.
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