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| Public Act 096-0828 |
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AN ACT concerning local government.
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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 General Obligation Bond Act is amended by | ||||
changing Sections 8, 9, 14, and 15 as follows:
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(30 ILCS 330/8) (from Ch. 127, par. 658)
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Sec. 8. Bond sale expenses. | ||||
(a)
An amount not to exceed
0.5 percent of the
principal | ||||
amount of the proceeds of sale of each bond sale is authorized
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to be used to pay the reasonable costs of issuance and sale, | ||||
including, without limitation, underwriter's discounts and | ||||
fees, but excluding bond insurance,
of State of
Illinois | ||||
general obligation bonds authorized and sold pursuant to this | ||||
Act, provided that no salaries of State employees or other | ||||
State office operating expenses shall be paid out of | ||||
non-appropriated proceeds, provided further that the percent | ||||
shall be 1.0% for each sale of "Build America Bonds" or | ||||
"Qualified School Construction Bonds" as defined in | ||||
subsections (d) and (e) of Section 9, respectively. The | ||||
Governor's Office of Management and Budget shall compile a | ||||
summary of all costs of issuance on each sale (including both | ||||
costs paid out of proceeds and those paid out of appropriated | ||||
funds) and post that summary on its web site within 20 business | ||||
days after the issuance of
the Bonds. The summary shall | ||
include, as applicable, the respective percentages of | ||
participation and compensation of each underwriter that is a | ||
member of the underwriting syndicate, legal counsel, financial | ||
advisors, and other professionals for the bond issue and an | ||
identification of all costs of issuance paid to minority owned | ||
businesses, female owned businesses, and businesses owned by | ||
persons with disabilities. The terms "minority owned | ||
businesses", "female owned businesses", and "business owned by | ||
a person with a disability" have the meanings given to those | ||
terms in the Business Enterprise for Minorities, Females, and | ||
Persons with Disabilities Act. That posting shall be maintained | ||
on the web site for a period of at least 30 days. In addition, | ||
the Governor's Office of Management and Budget shall provide a | ||
written copy of each summary of costs to the Speaker and | ||
Minority Leader of the House of Representatives, the President | ||
and Minority Leader of the Senate, and the Commission on | ||
Government Forecasting and Accountability within 20 business | ||
days after each issuance of the Bonds. In addition, the | ||
Governor's Office of Management and Budget shall provide copies | ||
of all contracts under which any costs of issuance are paid or | ||
to be paid to the Commission on Government Forecasting and | ||
Accountability within 20 business days after the issuance of | ||
Bonds for which those costs are paid or to be paid. Instead of | ||
filing a second or subsequent copy of the same contract, the | ||
Governor's Office of Management and Budget may file a statement | ||
that specified costs are paid under specified contracts filed | ||
earlier with the Commission. | ||
(b) The Director of the Governor's Office of Management and | ||
Budget shall not, in connection with the issuance of Bonds, | ||
contract with any underwriter, financial advisor, or attorney | ||
unless that underwriter, financial advisor, or attorney | ||
certifies that the underwriter, financial advisor, or attorney | ||
has not and will not pay a contingent fee, whether directly or | ||
indirectly, to a third party for having promoted the selection | ||
of the underwriter, financial advisor, or attorney for that | ||
contract. In the event that the Governor's Office of Management | ||
and Budget determines that an underwriter, financial advisor, | ||
or attorney has filed a false certification with respect to the | ||
payment of contingent fees, the Governor's Office of Management | ||
and Budget shall not contract with that underwriter, financial | ||
advisor, or attorney, or with any firm employing any person who | ||
signed false certifications, for a period of 2 calendar years, | ||
beginning with the date the determination is made. The validity | ||
of Bonds issued under such circumstances of violation pursuant | ||
to this Section shall not be affected.
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(Source: P.A. 93-2, eff. 4-7-03; 93-839, eff. 7-30-04; 93-1067, | ||
eff. 1-15-05.)
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(30 ILCS 330/9) (from Ch. 127, par. 659)
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Sec. 9. Conditions for Issuance and Sale of Bonds - | ||
Requirements for
Bonds. | ||
(a) Except as otherwise provided in this subsection, Bonds | ||
shall be issued and sold from time to time, in one or
more | ||
series, in such amounts and at such prices as may be directed | ||
by the
Governor, upon recommendation by the Director of the
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Governor's Office of Management and Budget.
Bonds shall be in | ||
such form (either coupon, registered or book entry), in
such | ||
denominations, payable within 25 years from their date, subject | ||
to such
terms of redemption with or without premium, bear | ||
interest payable at
such times and at such fixed or variable | ||
rate or rates, and be dated
as shall be fixed and determined by | ||
the Director of
the
Governor's Office of Management and Budget
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in the order authorizing the issuance and sale
of any series of | ||
Bonds, which order shall be approved by the Governor
and is | ||
herein called a "Bond Sale Order"; provided however, that | ||
interest
payable at fixed or variable rates shall not exceed | ||
that permitted in the
Bond Authorization Act, as now or | ||
hereafter amended. Bonds shall be
payable at such place or | ||
places, within or without the State of Illinois, and
may be | ||
made registrable as to either principal or as to both principal | ||
and
interest, as shall be specified in the Bond Sale Order. | ||
Bonds may be callable
or subject to purchase and retirement or | ||
tender and remarketing as fixed
and determined in the Bond Sale | ||
Order. Bonds, other than Bonds issued under Section 3 of this | ||
Act for the costs associated with the purchase and | ||
implementation of information technology, (i) except for | ||
refunding Bonds satisfying the requirements of Section 16 of | ||
this Act and sold during fiscal year 2009, 2010, or 2011, must | ||
be issued with principal or mandatory redemption amounts in | ||
equal amounts, with the first maturity issued occurring within | ||
the fiscal year in which the Bonds are issued or within the | ||
next succeeding fiscal year and (ii) must mature or be subject | ||
to mandatory redemption each fiscal year thereafter up to 25 | ||
years, except for refunding Bonds satisfying the requirements | ||
of Section 16 of this Act and sold during fiscal year 2009, | ||
2010, or 2011 which must mature or be subject to mandatory | ||
redemption each fiscal year thereafter up to 16 years. Bonds | ||
issued under Section 3 of this Act for the costs associated | ||
with the purchase and implementation of information technology | ||
must be issued with principal or mandatory redemption amounts | ||
in equal amounts, with the first maturity issued occurring with | ||
the fiscal year in which the respective bonds are issued or | ||
with the next succeeding fiscal year, with the respective bonds | ||
issued maturing or subject to mandatory redemption each fiscal | ||
year thereafter up to 10 years. Notwithstanding any provision | ||
of this Act to the contrary, the Bonds authorized by Public Act | ||
96-43 this amendatory Act of the 96th General Assembly shall be | ||
payable within 5 years from their date and must be issued with | ||
principal or mandatory redemption amounts in equal amounts, | ||
with payment of principal or mandatory redemption beginning in | ||
the first fiscal year following the fiscal year in which the | ||
Bonds are issued.
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In the case of any series of Bonds bearing interest at a | ||
variable interest
rate ("Variable Rate Bonds"), in lieu of | ||
determining the rate or rates at which
such series of Variable | ||
Rate Bonds shall bear interest and the price or prices
at which | ||
such Variable Rate Bonds shall be initially sold or remarketed | ||
(in the
event of purchase and subsequent resale), the Bond Sale | ||
Order may provide that
such interest rates and prices may vary | ||
from time to time depending on criteria
established in such | ||
Bond Sale Order, which criteria may include, without
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limitation, references to indices or variations in interest | ||
rates as may, in
the judgment of a remarketing agent, be | ||
necessary to cause Variable Rate Bonds
of such series to be | ||
remarketable from time to time at a price equal to their
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principal amount, and may provide for appointment of a bank, | ||
trust company,
investment bank, or other financial institution | ||
to serve as remarketing agent
in that connection.
The Bond Sale | ||
Order may provide that alternative interest rates or provisions
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for establishing alternative interest rates, different | ||
security or claim
priorities, or different call or amortization | ||
provisions will apply during
such times as Variable Rate Bonds | ||
of any series are held by a person providing
credit or | ||
liquidity enhancement arrangements for such Bonds as | ||
authorized in
subsection (b) of this Section.
The Bond Sale | ||
Order may also provide for such variable interest rates to be
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established pursuant to a process generally known as an auction | ||
rate process
and may provide for appointment of one or more | ||
financial institutions to serve
as auction agents and | ||
broker-dealers in connection with the establishment of
such | ||
interest rates and the sale and remarketing of such Bonds.
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(b) In connection with the issuance of any series of Bonds, | ||
the State may
enter into arrangements to provide additional | ||
security and liquidity for such
Bonds, including, without | ||
limitation, bond or interest rate insurance or
letters of | ||
credit, lines of credit, bond purchase contracts, or other
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arrangements whereby funds are made available to retire or | ||
purchase Bonds,
thereby assuring the ability of owners of the | ||
Bonds to sell or redeem their
Bonds. The State may enter into | ||
contracts and may agree to pay fees to persons
providing such | ||
arrangements, but only under circumstances where the Director | ||
of
the
Governor's Office of Management and Budget certifies | ||
that he or she reasonably expects the total
interest paid or to | ||
be paid on the Bonds, together with the fees for the
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arrangements (being treated as if interest), would not, taken | ||
together, cause
the Bonds to bear interest, calculated to their | ||
stated maturity, at a rate in
excess of the rate that the Bonds | ||
would bear in the absence of such
arrangements.
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The State may, with respect to Bonds issued or anticipated | ||
to be issued,
participate in and enter into arrangements with | ||
respect to interest rate
protection or exchange agreements, | ||
guarantees, or financial futures contracts
for the purpose of | ||
limiting, reducing, or managing interest rate exposure.
The | ||
authority granted under this paragraph, however, shall not | ||
increase the principal amount of Bonds authorized to be issued | ||
by law. The arrangements may be executed and delivered by the | ||
Director
of the
Governor's Office of Management and Budget on | ||
behalf of the State. Net payments for such
arrangements shall | ||
constitute interest on the Bonds and shall be paid from the
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General Obligation Bond Retirement and Interest Fund. The | ||
Director of the
Governor's Office of Management and Budget | ||
shall at least annually certify to the Governor and
the
State | ||
Comptroller his or her estimate of the amounts of such net | ||
payments to
be included in the calculation of interest required | ||
to be paid by the State.
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(c) Prior to the issuance of any Variable Rate Bonds | ||
pursuant to
subsection (a), the Director of the
Governor's | ||
Office of Management and Budget shall adopt an
interest rate | ||
risk management policy providing that the amount of the State's
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variable rate exposure with respect to Bonds shall not exceed | ||
20%. This policy
shall remain in effect while any Bonds are | ||
outstanding and the issuance of
Bonds
shall be subject to the | ||
terms of such policy. The terms of this policy may be
amended | ||
from time to time by the Director of the
Governor's Office of | ||
Management and Budget but in no
event shall any amendment cause | ||
the permitted level of the State's variable
rate exposure with | ||
respect to Bonds to exceed 20%.
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(d) "Build America Bonds" in this Section means Bonds | ||
authorized by Section 54AA of the Internal Revenue Code of | ||
1986, as amended ("Internal Revenue Code"), and bonds issued | ||
from time to time to refund or continue to refund "Build | ||
America Bonds". | ||
(e) Notwithstanding any other provision of this Section, | ||
Qualified School Construction Bonds shall be issued and sold | ||
from time to time, in one or more series, in such amounts and | ||
at such prices as may be directed by the Governor, upon | ||
recommendation by the Director of the Governor's Office of | ||
Management and Budget. Qualified School Construction Bonds | ||
shall be in such form (either coupon, registered or book | ||
entry), in such denominations, payable within 25 years from | ||
their date, subject to such terms of redemption with or without | ||
premium, and if the Qualified School Construction Bonds are | ||
issued with a supplemental coupon, bear interest payable at | ||
such times and at such fixed or variable rate or rates, and be | ||
dated as shall be fixed and determined by the Director of the | ||
Governor's Office of Management and Budget in the order | ||
authorizing the issuance and sale of any series of Qualified | ||
School Construction Bonds, which order shall be approved by the | ||
Governor and is herein called a "Bond Sale Order"; except that | ||
interest payable at fixed or variable rates, if any, shall not | ||
exceed that permitted in the Bond Authorization Act, as now or | ||
hereafter amended. Qualified School Construction Bonds shall | ||
be payable at such place or places, within or without the State | ||
of Illinois, and may be made registrable as to either principal | ||
or as to both principal and interest, as shall be specified in | ||
the Bond Sale Order. Qualified School Construction Bonds may be | ||
callable or subject to purchase and retirement or tender and | ||
remarketing as fixed and determined in the Bond Sale Order. | ||
Qualified School Construction Bonds must be issued with | ||
principal or mandatory redemption amounts or sinking fund | ||
payments into the General Obligation Bond Retirement and | ||
Interest Fund (or subaccount therefor) in equal amounts, with | ||
the first maturity issued, mandatory redemption payment or | ||
sinking fund payment occurring within the fiscal year in which | ||
the Qualified School Construction Bonds are issued or within | ||
the next succeeding fiscal year, with Qualified School | ||
Construction Bonds issued maturing or subject to mandatory | ||
redemption or with sinking fund payments thereof deposited each | ||
fiscal year thereafter up to 25 years. Sinking fund payments | ||
set forth in this subsection shall be permitted only to the | ||
extent authorized in Section 54F of the Internal Revenue Code | ||
or as otherwise determined by the Director of the Governor's | ||
Office of Management and Budget. "Qualified School | ||
Construction Bonds" in this subsection means Bonds authorized | ||
by Section 54F of the Internal Revenue Code and for bonds | ||
issued from time to time to refund or continue to refund such | ||
"Qualified School Construction Bonds". | ||
(Source: P.A. 96-18, eff. 6-26-09; 96-37, eff. 7-13-09; 96-43, | ||
eff. 7-15-09; revised 8-20-09.)
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(30 ILCS 330/14) (from Ch. 127, par. 664)
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Sec. 14. Repayment.
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(a) To provide for the manner of repayment of Bonds, the | ||
Governor shall
include an appropriation in each annual State | ||
Budget of monies in such amount
as shall be necessary and | ||
sufficient, for the period covered by such budget,
to pay the | ||
interest, as it shall accrue, on all Bonds issued under this | ||
Act,
to pay and discharge the principal of such Bonds as shall, | ||
by their terms,
fall due during such period, and to pay a | ||
premium, if any, on Bonds to be
redeemed prior to the maturity | ||
date, and to pay sinking fund payments in connection with | ||
Qualified School Construction Bonds authorized by subsection | ||
(e) of Section 9. Amounts included in such appropriations
for | ||
the payment of interest on variable rate bonds shall be the | ||
maximum amounts
of interest that may be payable for the period | ||
covered by the budget, after
taking into account any credits | ||
permitted in the related indenture or other
instrument against | ||
the amount of such interest required to be appropriated for
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such period. Amounts included in such appropriations for the | ||
payment of
interest shall include the amounts certified by the | ||
Director of the
Governor's Office of Management and Budget | ||
under subsection (b) of Section 9 of this Act.
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(b) A separate fund in the State Treasury called the | ||
"General Obligation
Bond Retirement and Interest Fund" is | ||
hereby created.
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(c) The General Assembly shall annually make | ||
appropriations to pay the
principal of, interest on, and | ||
premium, if any, on Bonds sold under this
Act from the General | ||
Obligation Bond Retirement and Interest Fund.
Amounts included | ||
in such appropriations for the payment of interest on
variable | ||
rate bonds shall be the maximum amounts of interest that may be
| ||
payable during the fiscal year, after taking into account any | ||
credits
permitted in the related indenture or other instrument | ||
against the amount
of such interest required to be appropriated | ||
for such period. Amounts included
in such appropriations for | ||
the payment of interest shall include the amounts
certified by | ||
the Director of the
Governor's Office of Management and Budget | ||
under subsection (b) of
Section 9 of this Act.
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If for any reason there are insufficient funds in either | ||
the General
Revenue Fund or the Road Fund to make
transfers to | ||
the General Obligation Bond Retirement and Interest Fund as
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required by Section 15 of this Act, or 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 Act | ||
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 Comptroller to make
the necessary transfers, | ||
as directed by the Governor, out of and disbursements
from the | ||
revenues and funds of the
State.
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(d) If, because of insufficient funds in either the General | ||
Revenue Fund
or the Road Fund, monies have been transferred to | ||
the General Obligation
Bond Retirement and Interest Fund, as | ||
required by subsection (c) of this
Section, this Act shall | ||
constitute the irrevocable and continuing authority
for and | ||
direction to the State Treasurer and Comptroller to reimburse | ||
these
funds of the State from the General Revenue Fund or the | ||
Road Fund, as
appropriate, by transferring, at such times and | ||
in such amounts, as directed by
the Governor, an amount to | ||
these funds equal to that transferred from them.
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(Source: P.A. 93-9, eff. 6-3-03; 94-793, eff. 5-19-06.)
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(30 ILCS 330/15) (from Ch. 127, par. 665)
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Sec. 15. Computation of Principal and Interest; transfers.
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(a) Upon each delivery of Bonds authorized to be issued | ||
under this Act,
the Comptroller shall compute and certify to | ||
the Treasurer the total amount
of principal of, interest on, | ||
and premium, if any, on Bonds issued that will
be payable in | ||
order to retire such Bonds, and the amount of principal of,
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interest on and premium, if any, on such Bonds that will be | ||
payable on each
payment date according to the tenor of such | ||
Bonds during the then current and
each succeeding fiscal year, | ||
and the amount of sinking fund payments needed to be deposited | ||
in connection with Qualified School Construction Bonds | ||
authorized by subsection (e) of Section 9.
With respect to the | ||
interest payable on variable rate bonds, such
certifications | ||
shall be calculated at the maximum rate of interest that
may be | ||
payable during the fiscal year, after taking into account any | ||
credits
permitted in the related indenture or other instrument | ||
against the amount
of such interest required to be appropriated | ||
for such period pursuant to
subsection (c) of Section 14 of | ||
this Act. With respect to the interest
payable, such | ||
certifications shall include the amounts certified by the
| ||
Director of the
Governor's Office of Management and Budget | ||
under subsection (b) of Section 9 of
this Act.
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On or before the last day of each month the State Treasurer | ||
and Comptroller
shall transfer from (1) the Road Fund with | ||
respect to Bonds issued under
paragraph (a) of Section 4 of | ||
this Act or Bonds issued for the purpose of
refunding such | ||
bonds, and from (2) the General
Revenue Fund, with respect to | ||
all other Bonds issued under this Act, to the
General | ||
Obligation Bond Retirement and Interest Fund an amount | ||
sufficient to
pay the aggregate of the principal of, interest | ||
on, and premium, if any, on
Bonds payable, by their terms on | ||
the next payment date divided by the number of
full calendar | ||
months between the date of such Bonds and the first such | ||
payment
date, and thereafter, divided by the number of months | ||
between each succeeding
payment date after the first. Such | ||
computations and transfers shall be
made for each series of | ||
Bonds issued and delivered. Interest payable on
variable rate | ||
bonds shall be calculated at the maximum rate of interest that
| ||
may be payable for the relevant period, after taking into | ||
account any credits
permitted in the related indenture or other | ||
instrument against the amount of
such interest required to be | ||
appropriated for such period pursuant to
subsection (c) of | ||
Section 14 of this Act. Computations of interest shall
include | ||
the amounts certified by the Director of the
Governor's Office | ||
of Management and Budget
under subsection (b) of Section 9 of | ||
this Act. Interest for which moneys
have already been deposited | ||
into the capitalized interest account within the
General | ||
Obligation Bond Retirement and Interest Fund shall not be | ||
included
in the calculation of the amounts to be transferred | ||
under this subsection. Notwithstanding any other provision in | ||
this Section, the transfer provisions provided in this | ||
paragraph shall not apply to transfers made in fiscal year 2010 | ||
with respect to Bonds issued in fiscal year 2010 pursuant to | ||
Section 7.2 of this Act. In the case of transfers made in | ||
fiscal year 2010 with respect to the Bonds issued in fiscal | ||
year 2010 pursuant to Section 7.2 of this Act, on or before the | ||
15th day of the month prior to the required debt service | ||
payment, the State Treasurer and Comptroller shall transfer | ||
from the General Revenue Fund to the General Obligation Bond | ||
Retirement and Interest Fund an amount sufficient to pay the | ||
aggregate of the principal of, interest on, and premium, if | ||
any, on the Bonds payable in that next month.
| ||
The transfer of monies herein and above directed is not | ||
required if monies
in the General Obligation Bond Retirement | ||
and Interest Fund are more than
the amount otherwise to be | ||
transferred as herein above provided, and if the
Governor or | ||
his authorized representative notifies the State Treasurer and
| ||
Comptroller of such fact in writing.
| ||
(b) After the effective date of this Act, the balance of, | ||
and monies
directed to be included in the Capital Development | ||
Bond Retirement and
Interest Fund, Anti-Pollution Bond | ||
Retirement and Interest Fund,
Transportation Bond, Series A | ||
Retirement and Interest Fund, Transportation
Bond, Series B | ||
Retirement and Interest Fund, and Coal Development Bond
| ||
Retirement and Interest Fund shall be transferred to and | ||
deposited in the
General Obligation Bond Retirement and | ||
Interest Fund. This Fund shall be
used to make debt service | ||
payments on the State's general obligation Bonds
heretofore | ||
issued which are now outstanding and payable from the Funds | ||
herein
listed as well as on Bonds issued under this Act.
| ||
(c) The unused portion of federal funds received for a | ||
capital
facilities project, as authorized by Section 3 of this | ||
Act, for which
monies from the Capital Development Fund have | ||
been expended shall be
deposited upon completion of the project | ||
in the General Obligation Bond
Retirement and Interest Fund. | ||
Any federal funds received as reimbursement
for the completed | ||
construction of a capital facilities project, as
authorized by | ||
Section 3 of this Act, for which monies from the Capital
| ||
Development Fund have been expended shall be deposited in the | ||
General
Obligation Bond Retirement and Interest Fund.
| ||
(Source: P.A. 96-43, eff. 7-15-09.)
| ||
Section 10. The Build Illinois Bond Act is amended by | ||
changing Sections 5 and 6 as follows:
| ||
(30 ILCS 425/5) (from Ch. 127, par. 2805)
| ||
Sec. 5. Bond Sale Expenses. | ||
(a) An amount not to exceed 0.5% of the principal amount of | ||
the proceeds of the sale of each bond sale is authorized to be | ||
used to pay
reasonable costs of each issuance and sale of Bonds | ||
authorized and sold
pursuant to this Act, including, without | ||
limitation, underwriter's discounts and fees, but excluding | ||
bond insurance, advertising, printing, bond rating, travel of | ||
outside vendors,
security, delivery, legal and financial | ||
advisory services, initial fees
of trustees, registrars, | ||
paying agents and other fiduciaries, initial costs
of credit or | ||
liquidity enhancement arrangements, initial fees of indexing
| ||
and remarketing agents, and initial costs of interest rate | ||
swaps,
guarantees or arrangements to limit interest rate risk, | ||
as determined in
the related Bond Sale Order,
from
the proceeds | ||
of each Bond sale, provided that no salaries of State employees | ||
or other State office operating expenses shall be paid out of | ||
non-appropriated proceeds, and provided further that the | ||
percent shall be 1.0% for each sale of “Build America Bonds” as | ||
defined in subsection (c) of Section 6. The Governor's Office | ||
of Management and Budget shall compile a summary of all costs | ||
of issuance on each sale (including both costs paid out of | ||
proceeds and those paid out of appropriated funds) and post | ||
that summary on its web site within 20 business days after the | ||
issuance of the bonds. That posting shall be maintained on the | ||
web site for a period of at least 30 days. In addition, the | ||
Governor's Office of Management and Budget shall provide a | ||
written copy of each summary of costs to the Speaker and | ||
Minority Leader of the House of Representatives, the President | ||
and Minority Leader of the Senate, and the Commission on | ||
Government Forecasting and Accountability within 20 business | ||
days after each issuance of the bonds. This summary shall | ||
include, as applicable, the respective percentage of | ||
participation and compensation of each underwriter that is a | ||
member of the underwriting syndicate, legal counsel, financial | ||
advisors, and other professionals for the Bond issue, and an | ||
identification of all costs of issuance paid to minority owned | ||
businesses, female owned businesses, and businesses owned by | ||
persons with disabilities. The terms "minority owned | ||
businesses", "female owned businesses", and "business owned by | ||
a person with a disability" have the meanings given to those | ||
terms in the Business Enterprise for Minorities, Females, and | ||
Persons with Disabilities Act. In addition, the Governor's | ||
Office of Management and Budget shall provide copies of all | ||
contracts under which any costs of issuance are paid or to be | ||
paid to the Commission on Government Forecasting and | ||
Accountability within 20 business days after the issuance of | ||
Bonds for which those costs are paid or to be paid. Instead of | ||
filing a second or subsequent copy of the same contract, the | ||
Governor's Office of Management and Budget may file a statement | ||
that specified costs are paid under specified contracts filed | ||
earlier with the Commission.
| ||
(b) The Director of the Governor's Office of Management and | ||
Budget shall not, in connection with the issuance of Bonds, | ||
contract with any underwriter, financial advisor, or attorney | ||
unless that underwriter, financial advisor, or attorney | ||
certifies that the underwriter, financial advisor, or attorney | ||
has not and will not pay a contingent fee, whether directly or | ||
indirectly, to any third party for having promoted the | ||
selection of the underwriter, financial advisor, or attorney | ||
for that contract. In the event that the Governor's Office of | ||
Management and Budget determines that an underwriter, | ||
financial advisor, or attorney has filed a false certification | ||
with respect to the payment of contingent fees, the Governor's | ||
Office of Management and Budget shall not contract with that | ||
underwriter, financial advisor, or attorney, or with any firm | ||
employing any person who signed false certifications, for a | ||
period of 2 calendar years, beginning with the date the | ||
determination is made. The validity of Bonds issued under such | ||
circumstances of violation pursuant to this Section shall not | ||
be affected. | ||
(Source: P.A. 93-839, eff. 7-30-04; 93-1067, eff. 1-15-05.)
| ||
(30 ILCS 425/6) (from Ch. 127, par. 2806)
| ||
Sec. 6. Conditions for Issuance and Sale of Bonds - | ||
Requirements for
Bonds - Master and Supplemental Indentures - | ||
Credit and Liquidity
Enhancement. | ||
(a) Bonds shall be issued and sold from time to time, in | ||
one
or more series, in such amounts and at such prices as | ||
directed by the
Governor, upon recommendation by the Director | ||
of the
Governor's Office of Management and Budget.
Bonds shall | ||
be payable only from the specific sources and secured in the
| ||
manner provided in this Act. Bonds shall be in such form, in | ||
such
denominations, mature on such dates within 25 years from | ||
their date of
issuance, be subject to optional or mandatory | ||
redemption, bear interest
payable at such times and at such | ||
rate or rates, fixed or variable, and be
dated as shall be | ||
fixed and determined by the Director of the
Governor's Office | ||
of Management and Budget
in an order authorizing the
issuance | ||
and sale of any series of
Bonds, which order shall be approved | ||
by the Governor and is herein called a
"Bond Sale Order"; | ||
provided, however, that interest payable at fixed rates
shall | ||
not exceed that permitted in "An Act to authorize public | ||
corporations
to issue bonds, other evidences of indebtedness | ||
and tax anticipation
warrants subject to interest rate | ||
limitations set forth therein", approved
May 26, 1970, as now | ||
or hereafter amended, and interest payable at variable
rates | ||
shall not exceed the maximum rate permitted in the Bond Sale | ||
Order.
Said Bonds shall be payable at such place or places, | ||
within or without the
State of Illinois,
and may be made | ||
registrable
as to either principal only or as to both principal | ||
and interest, as shall
be specified in the Bond Sale
Order. | ||
Bonds may be callable or subject to purchase and retirement or
| ||
remarketing as fixed and determined in the Bond Sale Order. | ||
Bonds (i) except for refunding Bonds satisfying the | ||
requirements of Section 15 of this Act and sold during fiscal | ||
year 2009, 2010, or 2011, must be issued with principal or | ||
mandatory redemption amounts in equal amounts, with the first | ||
maturity issued occurring within the fiscal year in which the | ||
Bonds are issued or within the next succeeding fiscal year and | ||
(ii) must mature or be subject to mandatory redemption each | ||
fiscal year thereafter up to 25 years, except for refunding | ||
Bonds satisfying the requirements of Section 16 of this Act and | ||
sold during fiscal year 2009, 2010, or 2011 which must mature | ||
or be subject to mandatory redemption each fiscal year | ||
thereafter up to 16 years.
| ||
All Bonds authorized under this Act shall be issued | ||
pursuant
to a master trust indenture ("Master Indenture") | ||
executed and delivered on
behalf of the State by the Director | ||
of the
Governor's Office of Management and Budget, such
Master | ||
Indenture to be in substantially the form approved in the Bond | ||
Sale
Order authorizing the issuance and sale of the initial | ||
series of Bonds
issued under this Act. Such initial series of | ||
Bonds may, and each
subsequent series of Bonds shall, also be | ||
issued pursuant to a supplemental
trust indenture | ||
("Supplemental Indenture") executed and delivered on behalf
of | ||
the State by the Director of the
Governor's Office of | ||
Management and Budget, each such
Supplemental
Indenture to be | ||
in substantially the form approved in the Bond Sale Order
| ||
relating to such series. The Master Indenture and any | ||
Supplemental
Indenture shall be entered into with a bank or | ||
trust company in the State
of Illinois having trust powers and | ||
possessing capital and surplus of not
less than $100,000,000. | ||
Such indentures shall set forth the terms and
conditions of the | ||
Bonds and provide for payment of and security for the
Bonds, | ||
including the establishment and maintenance of debt service and
| ||
reserve funds, and for other protections for holders of the | ||
Bonds.
The term "reserve funds" as used in this Act shall | ||
include funds and
accounts established under indentures to | ||
provide for the payment of
principal of and premium and | ||
interest on Bonds, to provide for the purchase,
retirement or | ||
defeasance of Bonds, to provide for fees of
trustees, | ||
registrars, paying agents and other fiduciaries and to provide
| ||
for payment of costs of and debt service payable in respect of | ||
credit or
liquidity enhancement arrangements, interest rate | ||
swaps or guarantees or
financial futures contracts and
indexing | ||
and remarketing agents' services.
| ||
In the case of any series of Bonds bearing interest at a | ||
variable
interest rate ("Variable Rate Bonds"), in lieu of | ||
determining the rate or
rates at which such series of Variable | ||
Rate Bonds shall bear interest and
the price or prices
at which | ||
such Variable Rate Bonds shall be initially sold or remarketed | ||
(in
the event of purchase and subsequent resale), the Bond
Sale | ||
Order may provide that such interest rates and prices may vary | ||
from time to time
depending on criteria established in such | ||
Bond Sale Order, which criteria
may include, without | ||
limitation, references to indices or variations in
interest | ||
rates as may, in the judgment of a remarketing agent, be
| ||
necessary to cause Bonds of such series to be remarketable from | ||
time to
time at a price equal to their principal amount (or | ||
compound accreted
value in the case of original issue discount | ||
Bonds), and may provide for
appointment of indexing agents and | ||
a bank, trust company,
investment bank or other financial | ||
institution to serve as remarketing
agent in that connection. | ||
The Bond Sale Order may provide that alternative
interest rates | ||
or provisions for establishing alternative interest rates,
| ||
different security or claim priorities or different call or | ||
amortization provisions
will apply during such times as Bonds | ||
of any series are held by a person
providing credit or | ||
liquidity enhancement arrangements for such Bonds as
| ||
authorized in subsection (b) of Section 6 of this Act.
| ||
(b) In connection with the issuance of any series of Bonds, | ||
the State
may enter into arrangements to provide additional | ||
security and liquidity
for such Bonds, including, without | ||
limitation, bond or interest rate
insurance or letters of | ||
credit, lines of credit, bond purchase contracts or
other | ||
arrangements whereby funds are made
available to retire or | ||
purchase Bonds, thereby assuring the ability of
owners of the | ||
Bonds to sell or redeem their Bonds.
The State may enter into | ||
contracts and may agree to pay fees to persons
providing such | ||
arrangements, but only under circumstances where the
Director | ||
of the Bureau of the Budget
(now Governor's Office of | ||
Management and Budget)
certifies that he reasonably expects
the | ||
total interest paid or to be paid on the Bonds, together with | ||
the fees
for the arrangements (being treated as if interest), | ||
would not, taken
together, cause the Bonds to bear interest, | ||
calculated to their stated
maturity, at a rate in excess of the | ||
rate which the Bonds would bear in the
absence of such | ||
arrangements. Any bonds, notes or other evidences of
| ||
indebtedness issued pursuant to any such arrangements for the | ||
purpose of
retiring and discharging outstanding Bonds
shall | ||
constitute refunding Bonds
under Section 15 of this Act. The | ||
State may participate in and enter
into arrangements with | ||
respect to interest rate swaps or guarantees or
financial | ||
futures contracts for the
purpose of limiting or restricting | ||
interest rate risk; provided
that such arrangements shall be | ||
made with or executed through banks
having capital and surplus | ||
of not less than $100,000,000 or insurance
companies holding | ||
the
highest policyholder rating accorded insurers by A.M. Best & | ||
Co. or any
comparable rating service or government bond | ||
dealers reporting to, trading
with, and recognized as primary | ||
dealers by a Federal Reserve Bank and
having capital and | ||
surplus of not less than $100,000,000,
or other persons whose
| ||
debt securities are rated in the highest long-term categories | ||
by both
Moody's Investors' Services, Inc. and Standard & Poor's | ||
Corporation.
Agreements incorporating any of the foregoing | ||
arrangements may be executed
and delivered by the Director of | ||
the
Governor's Office of Management and Budget on behalf of the
| ||
State in substantially the form approved in the Bond Sale Order | ||
relating to
such Bonds.
| ||
(c) "Build America Bonds" in this Section means Bonds | ||
authorized by Section 54AA of the Internal Revenue Code of | ||
1986, as amended ("Internal Revenue Code"), and bonds issued | ||
from time to time to refund or continue to refund "Build | ||
America Bonds". | ||
(Source: P.A. 96-18, eff. 6-26-09.)
| ||
Section 15. The Downstate Forest Preserve District Act is | ||
amended by changing Section 13 as follows:
| ||
(70 ILCS 805/13) (from Ch. 96 1/2, par. 6323)
| ||
Sec. 13. Bonds; limitation on indebtedness.
The board of | ||
any forest preserve district organized
hereunder may, for any | ||
of the purposes enumerated in this Act, borrow
money upon the | ||
faith and credit of such district, and may issue bonds
| ||
therefor. However, a district with a population of less than | ||
3,000,000
may not become indebted in any manner or for any | ||
purpose to an amount
including existing indebtedness in the | ||
aggregate exceeding 2.3% of the
assessed value of the taxable | ||
property therein, as ascertained by the
last equalized | ||
assessment for State and county purposes. No district
may incur | ||
(i) indebtedness
in excess of .3% of the assessed value of | ||
taxable property in the district,
as ascertained by the last | ||
equalized assessment for State and county purposes,
for the | ||
development of forest preserve lands held by the district, or | ||
(ii)
indebtedness for any other purpose except the acquisition | ||
of land
including acquiring lands in fee simple along or | ||
enclosing water
courses, drainage ways, lakes, ponds, planned | ||
impoundments or elsewhere
which are required to store flood | ||
waters or control other drainage and
water conditions necessary | ||
for the preservation and management of the
water resources of | ||
the District, unless the proposition to issue bonds
or | ||
otherwise incur indebtedness is certified by the board to the | ||
proper
election officials who shall submit the proposition at | ||
an election in accordance
with the general election law, and | ||
approved by a majority of those voting upon the
proposition. No | ||
district containing fewer than 3,000,000 inhabitants may
incur | ||
indebtedness for the acquisition of land or lands for any | ||
purpose
in excess of 55,000 acres, including all lands | ||
theretofore acquired,
unless the proposition to issue bonds or | ||
otherwise incur indebtedness is
first submitted to the voters | ||
of the district at a referendum in accordance
with the general | ||
election law and approved by a
majority of those voting upon | ||
the proposition. Before or at the time of
issuing bonds, the | ||
board shall provide by ordinance for the collection
of an | ||
annual tax sufficient to pay the interest on the bonds as it | ||
falls
due, and to pay the bonds as they mature. All bonds | ||
issued by any forest
preserve district must be divided into | ||
series, the first of which
matures not later than 5 years after | ||
the date of issue and the last of
which matures not later than | ||
20 years after the date of issue, or for bonds issued prior to | ||
January 1, 2011, commonly known as "Build America Bonds" as | ||
authorized by Section 54AA of the Internal Revenue Code of | ||
1986, as amended, and for bonds issued from time to time to | ||
refund "Build America Bonds", not later than 25 years after the | ||
date of issue.
| ||
This Section does not apply to a forest preserve district | ||
created under Section 18.5 of the Conservation District Act.
| ||
(Source: P.A. 94-617, eff. 8-18-05.)
| ||
Section 20. The Metropolitan Water Reclamation District | ||
Act is amended by changing Section 9.6a as follows:
| ||
(70 ILCS 2605/9.6a) (from Ch. 42, par. 328.6a)
| ||
Sec. 9.6a. The corporate authorities of a sanitary | ||
district, in
order to provide funds required for the replacing, | ||
remodeling,
completing, altering, constructing and enlarging | ||
of sewage treatment
works, water quality improvement projects, | ||
or flood control facilities, and additions therefor, pumping
| ||
stations, tunnels, conduits, intercepting sewers and outlet | ||
sewers,
together with the equipment, including air pollution | ||
equipment, and
appurtenances thereto, to acquire property, | ||
real, personal or mixed,
necessary for said purposes, for costs | ||
and expenses for the acquisition
of the sites and rights-of-way | ||
necessary thereto, and for engineering
expenses for designing | ||
and supervising the construction of such works,
may issue on or | ||
before December 31, 2016, in addition to all
other obligations | ||
heretofore or herein authorized, bonds, notes or
other | ||
evidences of indebtedness for such purposes in an aggregate
| ||
amount at any one time outstanding not to exceed 3.35% of the | ||
equalized
assessed valuation of all taxable property within the | ||
sanitary district,
to be ascertained by the last assessment for | ||
State and local taxes
previous to the issuance of any such | ||
obligations. Such obligations shall be
issued without | ||
submitting the question of such issuance to the legal voters
of | ||
such sanitary district for approval.
| ||
The corporate authorities may sell such obligations at | ||
private or
public sale and enter into any contract or agreement | ||
necessary, appropriate
or incidental to the exercise of the | ||
powers granted by this Act, including,
without limitation, | ||
contracts or agreements for the sale and purchase of
such | ||
obligations and the payment of costs and expenses incident | ||
thereto.
The corporate authorities may pay such costs and | ||
expenses, in whole or in
part, from the corporate fund.
| ||
Such obligations shall be issued from time to time only in | ||
amounts as may
be required for such purposes but the amount of | ||
such obligations issued during
any one budget year shall not | ||
exceed $150,000,000 plus
the amount of any obligations | ||
authorized by this Act to be issued during the 3
budget years | ||
next preceding the year of issuance but which were not issued,
| ||
provided, however, that this limitation shall not be applicable | ||
(i) to the issuance
of obligations to refund bonds, notes or | ||
other evidences of indebtedness,
(ii) nor to obligations issued | ||
to provide for the repayment of money received
from the Water | ||
Pollution Control Revolving Fund for the construction or
repair | ||
of wastewater treatment works, and (iii) to obligations issued | ||
as part of the American Recovery and Reinvestment Act of 2009, | ||
issued prior to January 1, 2011, that are commonly known as | ||
"Build America Bonds" as authorized by Section 54AA of the | ||
Internal Revenue Code of 1986, as amended. Each ordinance | ||
authorizing the
issuance of the obligations shall state the | ||
general purpose or purposes for
which they are to be issued, | ||
and the corporate authorities may at any time
thereafter pass | ||
supplemental appropriations ordinances appropriating the
| ||
proceeds from the sale of such obligations for such purposes.
| ||
The corporate authorities may issue bonds, notes or other | ||
evidences of
indebtedness in an amount necessary to provide | ||
funds to refund outstanding
obligations issued pursuant to this | ||
Section, including interest accrued or
to accrue thereon.
| ||
(Source: P.A. 95-125, eff. 8-13-07; 95-412, eff. 8-24-07.)
| ||
Section 99. Effective date. This Act takes effect upon | ||
becoming law.
| ||