Bill Text: IL SB1609 | 2009-2010 | 96th General Assembly | Enrolled
Bill Title: Amends the Design-Build Procurement Act. Eliminates the Act's July 1, 2009 repeal provision. Effective immediately.
Spectrum: Partisan Bill (Democrat 2-0)
Status: (Passed) 2009-06-26 - Public Act . . . . . . . . . 96-0018 [SB1609 Detail]
Download: Illinois-2009-SB1609-Enrolled.html
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1 | AN ACT concerning finance.
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2 | Be it enacted by the People of the State of Illinois,
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3 | represented in the General Assembly:
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4 | Section 5. The General Obligation Bond Act is amended by | ||||||
5 | changing Sections 9, 11, and 16 as follows:
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6 | (30 ILCS 330/9) (from Ch. 127, par. 659)
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7 | Sec. 9. Conditions for Issuance and Sale of Bonds - | ||||||
8 | Requirements for
Bonds. | ||||||
9 | (a) Except as otherwise provided in this subsection, Bonds | ||||||
10 | shall be issued and sold from time to time, in one or
more | ||||||
11 | series, in such amounts and at such prices as may be directed | ||||||
12 | by the
Governor, upon recommendation by the Director of the
| ||||||
13 | Governor's Office of Management and Budget.
Bonds shall be in | ||||||
14 | such form (either coupon, registered or book entry), in
such | ||||||
15 | denominations, payable within 25 years from their date, subject | ||||||
16 | to such
terms of redemption with or without premium, bear | ||||||
17 | interest payable at
such times and at such fixed or variable | ||||||
18 | rate or rates, and be dated
as shall be fixed and determined by | ||||||
19 | the Director of
the
Governor's Office of Management and Budget
| ||||||
20 | in the order authorizing the issuance and sale
of any series of | ||||||
21 | Bonds, which order shall be approved by the Governor
and is | ||||||
22 | herein called a "Bond Sale Order"; provided however, that | ||||||
23 | interest
payable at fixed or variable rates shall not exceed |
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1 | that permitted in the
Bond Authorization Act, as now or | ||||||
2 | hereafter amended. Bonds shall be
payable at such place or | ||||||
3 | places, within or without the State of Illinois, and
may be | ||||||
4 | made registrable as to either principal or as to both principal | ||||||
5 | and
interest, as shall be specified in the Bond Sale Order. | ||||||
6 | Bonds may be callable
or subject to purchase and retirement or | ||||||
7 | tender and remarketing as fixed
and determined in the Bond Sale | ||||||
8 | Order. Bonds (i) except for refunding Bonds satisfying the | ||||||
9 | requirements of Section 16 of this Act and sold during fiscal | ||||||
10 | year 2009, 2010, or 2011, must be issued with principal or | ||||||
11 | mandatory redemption amounts in equal amounts, with the first | ||||||
12 | maturity issued occurring within the fiscal year in which the | ||||||
13 | Bonds are issued or within the next succeeding fiscal year and | ||||||
14 | (ii) must mature or be , with Bonds issued maturing or subject | ||||||
15 | to mandatory redemption each fiscal year thereafter up to 25 | ||||||
16 | years , except for refunding Bonds satisfying the requirements | ||||||
17 | of Section 16 of this Act and sold during fiscal year 2009, | ||||||
18 | 2010, or 2011 which must mature or be subject to mandatory | ||||||
19 | redemption each fiscal year thereafter up to 16 years .
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20 | In the case of any series of Bonds bearing interest at a | ||||||
21 | variable interest
rate ("Variable Rate Bonds"), in lieu of | ||||||
22 | determining the rate or rates at which
such series of Variable | ||||||
23 | Rate Bonds shall bear interest and the price or prices
at which | ||||||
24 | such Variable Rate Bonds shall be initially sold or remarketed | ||||||
25 | (in the
event of purchase and subsequent resale), the Bond Sale | ||||||
26 | Order may provide that
such interest rates and prices may vary |
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1 | from time to time depending on criteria
established in such | ||||||
2 | Bond Sale Order, which criteria may include, without
| ||||||
3 | limitation, references to indices or variations in interest | ||||||
4 | rates as may, in
the judgment of a remarketing agent, be | ||||||
5 | necessary to cause Variable Rate Bonds
of such series to be | ||||||
6 | remarketable from time to time at a price equal to their
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7 | principal amount, and may provide for appointment of a bank, | ||||||
8 | trust company,
investment bank, or other financial institution | ||||||
9 | to serve as remarketing agent
in that connection.
The Bond Sale | ||||||
10 | Order may provide that alternative interest rates or provisions
| ||||||
11 | for establishing alternative interest rates, different | ||||||
12 | security or claim
priorities, or different call or amortization | ||||||
13 | provisions will apply during
such times as Variable Rate Bonds | ||||||
14 | of any series are held by a person providing
credit or | ||||||
15 | liquidity enhancement arrangements for such Bonds as | ||||||
16 | authorized in
subsection (b) of this Section.
The Bond Sale | ||||||
17 | Order may also provide for such variable interest rates to be
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18 | established pursuant to a process generally known as an auction | ||||||
19 | rate process
and may provide for appointment of one or more | ||||||
20 | financial institutions to serve
as auction agents and | ||||||
21 | broker-dealers in connection with the establishment of
such | ||||||
22 | interest rates and the sale and remarketing of such Bonds.
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23 | (b) In connection with the issuance of any series of Bonds, | ||||||
24 | the State may
enter into arrangements to provide additional | ||||||
25 | security and liquidity for such
Bonds, including, without | ||||||
26 | limitation, bond or interest rate insurance or
letters of |
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1 | credit, lines of credit, bond purchase contracts, or other
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2 | arrangements whereby funds are made available to retire or | ||||||
3 | purchase Bonds,
thereby assuring the ability of owners of the | ||||||
4 | Bonds to sell or redeem their
Bonds. The State may enter into | ||||||
5 | contracts and may agree to pay fees to persons
providing such | ||||||
6 | arrangements, but only under circumstances where the Director | ||||||
7 | of
the
Governor's Office of Management and Budget certifies | ||||||
8 | that he or she reasonably expects the total
interest paid or to | ||||||
9 | be paid on the Bonds, together with the fees for the
| ||||||
10 | arrangements (being treated as if interest), would not, taken | ||||||
11 | together, cause
the Bonds to bear interest, calculated to their | ||||||
12 | stated maturity, at a rate in
excess of the rate that the Bonds | ||||||
13 | would bear in the absence of such
arrangements.
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14 | The State may, with respect to Bonds issued or anticipated | ||||||
15 | to be issued,
participate in and enter into arrangements with | ||||||
16 | respect to interest rate
protection or exchange agreements, | ||||||
17 | guarantees, or financial futures contracts
for the purpose of | ||||||
18 | limiting, reducing, or managing interest rate exposure.
The | ||||||
19 | authority granted under this paragraph, however, shall not | ||||||
20 | increase the principal amount of Bonds authorized to be issued | ||||||
21 | by law. The arrangements may be executed and delivered by the | ||||||
22 | Director
of the
Governor's Office of Management and Budget on | ||||||
23 | behalf of the State. Net payments for such
arrangements shall | ||||||
24 | constitute interest on the Bonds and shall be paid from the
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25 | General Obligation Bond Retirement and Interest Fund. The | ||||||
26 | Director of the
Governor's Office of Management and Budget |
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1 | shall at least annually certify to the Governor and
the
State | ||||||
2 | Comptroller his or her estimate of the amounts of such net | ||||||
3 | payments to
be included in the calculation of interest required | ||||||
4 | to be paid by the State.
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5 | (c) Prior to the issuance of any Variable Rate Bonds | ||||||
6 | pursuant to
subsection (a), the Director of the
Governor's | ||||||
7 | Office of Management and Budget shall adopt an
interest rate | ||||||
8 | risk management policy providing that the amount of the State's
| ||||||
9 | variable rate exposure with respect to Bonds shall not exceed | ||||||
10 | 20%. This policy
shall remain in effect while any Bonds are | ||||||
11 | outstanding and the issuance of
Bonds
shall be subject to the | ||||||
12 | terms of such policy. The terms of this policy may be
amended | ||||||
13 | from time to time by the Director of the
Governor's Office of | ||||||
14 | Management and Budget but in no
event shall any amendment cause | ||||||
15 | the permitted level of the State's variable
rate exposure with | ||||||
16 | respect to Bonds to exceed 20%.
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17 | (Source: P.A. 92-16, eff. 6-28-01; 93-9, eff. 6-3-03; 93-666, | ||||||
18 | eff. 3-5-04; 93-839, eff. 7-30-04.)
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19 | (30 ILCS 330/11) (from Ch. 127, par. 661)
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20 | Sec. 11. Sale of Bonds. Except as otherwise provided in | ||||||
21 | this Section,
Bonds shall be sold from time to time pursuant to
| ||||||
22 | notice of sale and public bid or by negotiated sale
in such | ||||||
23 | amounts and at such
times as is directed by the Governor, upon | ||||||
24 | recommendation by the Director of
the
Governor's Office of | ||||||
25 | Management and Budget. At least 25%, based on total principal |
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1 | amount, of all Bonds issued each fiscal year shall be sold | ||||||
2 | pursuant to notice of sale and public bid. At all times during | ||||||
3 | each fiscal year, no more than 75%, based on total principal | ||||||
4 | amount, of the Bonds issued each fiscal year, shall have been | ||||||
5 | sold by negotiated sale. Failure to satisfy the requirements in | ||||||
6 | the preceding 2 sentences shall not affect the validity of any | ||||||
7 | previously issued Bonds ; and further provided that refunding | ||||||
8 | Bonds satisfying the requirements of Section 16 of this Act and | ||||||
9 | sold during fiscal year 2009, 2010, or 2011 shall not be | ||||||
10 | subject to the requirements in the preceding 2 sentences .
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11 | If
any Bonds, including refunding Bonds, are to be sold by | ||||||
12 | negotiated
sale, the
Director of the
Governor's Office of | ||||||
13 | Management and Budget
shall comply with the
competitive request | ||||||
14 | for proposal process set forth in the Illinois
Procurement Code | ||||||
15 | and all other applicable requirements of that Code.
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16 | If Bonds are to be sold pursuant to notice of sale and | ||||||
17 | public bid, the
Director of the
Governor's Office of Management | ||||||
18 | and Budget shall, from time to time, as Bonds are to be sold, | ||||||
19 | advertise
the sale of the Bonds in at least 2 daily newspapers, | ||||||
20 | one of which is
published in the City of Springfield and one in | ||||||
21 | the City of Chicago. The sale
of the Bonds shall also be
| ||||||
22 | advertised in the volume of the Illinois Procurement Bulletin | ||||||
23 | that is
published by the Department of Central Management | ||||||
24 | Services. Each of
the advertisements for
proposals shall be | ||||||
25 | published once at least
10 days prior to the date fixed
for the | ||||||
26 | opening of the bids. The Director of the
Governor's Office of |
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| |||||||
1 | Management and Budget may
reschedule the date of sale upon the | ||||||
2 | giving of such additional notice as the
Director deems adequate | ||||||
3 | to inform prospective bidders of
such change; provided, | ||||||
4 | however, that all other conditions of the sale shall
continue | ||||||
5 | as originally advertised.
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6 | Executed Bonds shall, upon payment therefor, be delivered | ||||||
7 | to the purchaser,
and the proceeds of Bonds shall be paid into | ||||||
8 | the State Treasury as directed by
Section 12 of this Act.
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9 | (Source: P.A. 93-839, eff. 7-30-04.)
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10 | (30 ILCS 330/16) (from Ch. 127, par. 666)
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11 | Sec. 16. Refunding Bonds. The State of Illinois is | ||||||
12 | authorized to issue,
sell, and provide for the retirement of | ||||||
13 | General Obligation Bonds of the State
of Illinois in the amount | ||||||
14 | of $4,839,025,000 $2,839,025,000 , at any time and
from time to | ||||||
15 | time outstanding, for the purpose of refunding
any State of | ||||||
16 | Illinois general obligation Bonds then outstanding, including
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17 | the payment of any redemption premium thereon, any reasonable | ||||||
18 | expenses of
such refunding, any interest accrued or to accrue | ||||||
19 | to the earliest
or any subsequent date of redemption or | ||||||
20 | maturity of such outstanding
Bonds and any interest to accrue | ||||||
21 | to the first interest payment on the
refunding Bonds; provided | ||||||
22 | that all non-refunding Bonds in an issue that includes
| ||||||
23 | refunding Bonds shall mature no later
than the final maturity | ||||||
24 | date of Bonds being refunded; provided that no refunding Bonds | ||||||
25 | shall be offered for sale unless the net present value of debt |
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1 | service savings to be achieved by the issuance of the refunding | ||||||
2 | Bonds is 3% or more of the principal amount of the refunding | ||||||
3 | Bonds to be issued; and further provided that , except for | ||||||
4 | refunding Bonds sold in fiscal year 2009, 2010, or 2011, the | ||||||
5 | maturities of the refunding Bonds shall not extend beyond the | ||||||
6 | maturities of the Bonds they refund, so that for each fiscal | ||||||
7 | year in the maturity schedule of a particular issue of | ||||||
8 | refunding Bonds, the total amount of refunding principal | ||||||
9 | maturing and redemption amounts due in that fiscal year and all | ||||||
10 | prior fiscal years in that schedule shall be greater than or | ||||||
11 | equal to the total amount of refunded principal and redemption | ||||||
12 | amounts that had been due over that year and all prior fiscal | ||||||
13 | years prior to the refunding.
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14 | The Governor shall notify the State Treasurer and
| ||||||
15 | Comptroller of such refunding. The proceeds received from the | ||||||
16 | sale
of refunding Bonds shall be used for the retirement at | ||||||
17 | maturity or
redemption of such outstanding Bonds on any | ||||||
18 | maturity or redemption date
and, pending such use, shall be | ||||||
19 | placed in escrow, subject to such terms and
conditions as shall | ||||||
20 | be provided for in the Bond Sale Order relating to the
| ||||||
21 | Refunding Bonds. Proceeds not needed for deposit in an escrow | ||||||
22 | account shall
be deposited in the General Obligation Bond | ||||||
23 | Retirement and Interest Fund.
This Act shall constitute an | ||||||
24 | irrevocable and continuing appropriation of all
amounts | ||||||
25 | necessary to establish an escrow account for the purpose of | ||||||
26 | refunding
outstanding general obligation Bonds and to pay the |
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| |||||||
1 | reasonable expenses of such
refunding and of the issuance and | ||||||
2 | sale of the refunding Bonds. Any such
escrowed proceeds may be | ||||||
3 | invested and reinvested
in direct obligations of the United | ||||||
4 | States of America, maturing at such
time or times as shall be | ||||||
5 | appropriate to assure the
prompt payment, when due, of the | ||||||
6 | principal of and interest and redemption
premium, if any,
on | ||||||
7 | the refunded Bonds. After the terms of the escrow have been | ||||||
8 | fully
satisfied, any remaining balance of such proceeds and | ||||||
9 | interest, income and
profits earned or realized on the | ||||||
10 | investments thereof shall be paid into
the General Revenue | ||||||
11 | Fund. The liability of the State upon the Bonds shall
continue, | ||||||
12 | provided that the holders thereof shall thereafter be entitled | ||||||
13 | to
payment only out of the moneys deposited in the escrow | ||||||
14 | account.
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15 | Except as otherwise herein provided in this Section, such | ||||||
16 | refunding Bonds
shall in all other respects be subject to the | ||||||
17 | terms and conditions of this Act.
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18 | (Source: P.A. 93-839, eff. 7-30-04.)
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19 | Section 10. The Build Illinois Bond Act is amended by | ||||||
20 | changing Sections 6, 8, and 15 as follows:
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21 | (30 ILCS 425/6) (from Ch. 127, par. 2806)
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22 | Sec. 6. Conditions for Issuance and Sale of Bonds - | ||||||
23 | Requirements for
Bonds - Master and Supplemental Indentures - | ||||||
24 | Credit and Liquidity
Enhancement. |
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1 | (a) Bonds shall be issued and sold from time to time, in | ||||||
2 | one
or more series, in such amounts and at such prices as | ||||||
3 | directed by the
Governor, upon recommendation by the Director | ||||||
4 | of the
Governor's Office of Management and Budget.
Bonds shall | ||||||
5 | be payable only from the specific sources and secured in the
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6 | manner provided in this Act. Bonds shall be in such form, in | ||||||
7 | such
denominations, mature on such dates within 25 years from | ||||||
8 | their date of
issuance, be subject to optional or mandatory | ||||||
9 | redemption, bear interest
payable at such times and at such | ||||||
10 | rate or rates, fixed or variable, and be
dated as shall be | ||||||
11 | fixed and determined by the Director of the
Governor's Office | ||||||
12 | of Management and Budget
in an order authorizing the
issuance | ||||||
13 | and sale of any series of
Bonds, which order shall be approved | ||||||
14 | by the Governor and is herein called a
"Bond Sale Order"; | ||||||
15 | provided, however, that interest payable at fixed rates
shall | ||||||
16 | not exceed that permitted in "An Act to authorize public | ||||||
17 | corporations
to issue bonds, other evidences of indebtedness | ||||||
18 | and tax anticipation
warrants subject to interest rate | ||||||
19 | limitations set forth therein", approved
May 26, 1970, as now | ||||||
20 | or hereafter amended, and interest payable at variable
rates | ||||||
21 | shall not exceed the maximum rate permitted in the Bond Sale | ||||||
22 | Order.
Said Bonds shall be payable at such place or places, | ||||||
23 | within or without the
State of Illinois,
and may be made | ||||||
24 | registrable
as to either principal only or as to both principal | ||||||
25 | and interest, as shall
be specified in the Bond Sale
Order. | ||||||
26 | Bonds may be callable or subject to purchase and retirement or
|
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| |||||||
1 | remarketing as fixed and determined in the Bond Sale Order. | ||||||
2 | Bonds (i) except for refunding Bonds satisfying the | ||||||
3 | requirements of Section 15 of this Act and sold during fiscal | ||||||
4 | year 2009, 2010, or 2011, must be issued with principal or | ||||||
5 | mandatory redemption amounts in equal amounts, with the first | ||||||
6 | maturity issued occurring within the fiscal year in which the | ||||||
7 | Bonds are issued or within the next succeeding fiscal year and | ||||||
8 | (ii) must mature or be , with Bonds issued maturing or subject | ||||||
9 | to mandatory redemption each fiscal year thereafter up to 25 | ||||||
10 | years , except for refunding Bonds satisfying the requirements | ||||||
11 | of Section 16 of this Act and sold during fiscal year 2009, | ||||||
12 | 2010, or 2011 which must mature or be subject to mandatory | ||||||
13 | redemption each fiscal year thereafter up to 16 years .
| ||||||
14 | All Bonds authorized under this Act shall be issued | ||||||
15 | pursuant
to a master trust indenture ("Master Indenture") | ||||||
16 | executed and delivered on
behalf of the State by the Director | ||||||
17 | of the
Governor's Office of Management and Budget, such
Master | ||||||
18 | Indenture to be in substantially the form approved in the Bond | ||||||
19 | Sale
Order authorizing the issuance and sale of the initial | ||||||
20 | series of Bonds
issued under this Act. Such initial series of | ||||||
21 | Bonds may, and each
subsequent series of Bonds shall, also be | ||||||
22 | issued pursuant to a supplemental
trust indenture | ||||||
23 | ("Supplemental Indenture") executed and delivered on behalf
of | ||||||
24 | the State by the Director of the
Governor's Office of | ||||||
25 | Management and Budget, each such
Supplemental
Indenture to be | ||||||
26 | in substantially the form approved in the Bond Sale Order
|
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1 | relating to such series. The Master Indenture and any | ||||||
2 | Supplemental
Indenture shall be entered into with a bank or | ||||||
3 | trust company in the State
of Illinois having trust powers and | ||||||
4 | possessing capital and surplus of not
less than $100,000,000. | ||||||
5 | Such indentures shall set forth the terms and
conditions of the | ||||||
6 | Bonds and provide for payment of and security for the
Bonds, | ||||||
7 | including the establishment and maintenance of debt service and
| ||||||
8 | reserve funds, and for other protections for holders of the | ||||||
9 | Bonds.
The term "reserve funds" as used in this Act shall | ||||||
10 | include funds and
accounts established under indentures to | ||||||
11 | provide for the payment of
principal of and premium and | ||||||
12 | interest on Bonds, to provide for the purchase,
retirement or | ||||||
13 | defeasance of Bonds, to provide for fees of
trustees, | ||||||
14 | registrars, paying agents and other fiduciaries and to provide
| ||||||
15 | for payment of costs of and debt service payable in respect of | ||||||
16 | credit or
liquidity enhancement arrangements, interest rate | ||||||
17 | swaps or guarantees or
financial futures contracts and
indexing | ||||||
18 | and remarketing agents' services.
| ||||||
19 | In the case of any series of Bonds bearing interest at a | ||||||
20 | variable
interest rate ("Variable Rate Bonds"), in lieu of | ||||||
21 | determining the rate or
rates at which such series of Variable | ||||||
22 | Rate Bonds shall bear interest and
the price or prices
at which | ||||||
23 | such Variable Rate Bonds shall be initially sold or remarketed | ||||||
24 | (in
the event of purchase and subsequent resale), the Bond
Sale | ||||||
25 | Order may provide that such interest rates and prices may vary | ||||||
26 | from time to time
depending on criteria established in such |
| |||||||
| |||||||
1 | Bond Sale Order, which criteria
may include, without | ||||||
2 | limitation, references to indices or variations in
interest | ||||||
3 | rates as may, in the judgment of a remarketing agent, be
| ||||||
4 | necessary to cause Bonds of such series to be remarketable from | ||||||
5 | time to
time at a price equal to their principal amount (or | ||||||
6 | compound accreted
value in the case of original issue discount | ||||||
7 | Bonds), and may provide for
appointment of indexing agents and | ||||||
8 | a bank, trust company,
investment bank or other financial | ||||||
9 | institution to serve as remarketing
agent in that connection. | ||||||
10 | The Bond Sale Order may provide that alternative
interest rates | ||||||
11 | or provisions for establishing alternative interest rates,
| ||||||
12 | different security or claim priorities or different call or | ||||||
13 | amortization provisions
will apply during such times as Bonds | ||||||
14 | of any series are held by a person
providing credit or | ||||||
15 | liquidity enhancement arrangements for such Bonds as
| ||||||
16 | authorized in subsection (b) of Section 6 of this Act.
| ||||||
17 | (b) In connection with the issuance of any series of Bonds, | ||||||
18 | the State
may enter into arrangements to provide additional | ||||||
19 | security and liquidity
for such Bonds, including, without | ||||||
20 | limitation, bond or interest rate
insurance or letters of | ||||||
21 | credit, lines of credit, bond purchase contracts or
other | ||||||
22 | arrangements whereby funds are made
available to retire or | ||||||
23 | purchase Bonds, thereby assuring the ability of
owners of the | ||||||
24 | Bonds to sell or redeem their Bonds.
The State may enter into | ||||||
25 | contracts and may agree to pay fees to persons
providing such | ||||||
26 | arrangements, but only under circumstances where the
Director |
| |||||||
| |||||||
1 | of the Bureau of the Budget
(now Governor's Office of | ||||||
2 | Management and Budget)
certifies that he reasonably expects
the | ||||||
3 | total interest paid or to be paid on the Bonds, together with | ||||||
4 | the fees
for the arrangements (being treated as if interest), | ||||||
5 | would not, taken
together, cause the Bonds to bear interest, | ||||||
6 | calculated to their stated
maturity, at a rate in excess of the | ||||||
7 | rate which the Bonds would bear in the
absence of such | ||||||
8 | arrangements. Any bonds, notes or other evidences of
| ||||||
9 | indebtedness issued pursuant to any such arrangements for the | ||||||
10 | purpose of
retiring and discharging outstanding Bonds
shall | ||||||
11 | constitute refunding Bonds
under Section 15 of this Act. The | ||||||
12 | State may participate in and enter
into arrangements with | ||||||
13 | respect to interest rate swaps or guarantees or
financial | ||||||
14 | futures contracts for the
purpose of limiting or restricting | ||||||
15 | interest rate risk; provided
that such arrangements shall be | ||||||
16 | made with or executed through banks
having capital and surplus | ||||||
17 | of not less than $100,000,000 or insurance
companies holding | ||||||
18 | the
highest policyholder rating accorded insurers by A.M. Best & | ||||||
19 | Co. or any
comparable rating service or government bond | ||||||
20 | dealers reporting to, trading
with, and recognized as primary | ||||||
21 | dealers by a Federal Reserve Bank and
having capital and | ||||||
22 | surplus of not less than $100,000,000,
or other persons whose
| ||||||
23 | debt securities are rated in the highest long-term categories | ||||||
24 | by both
Moody's Investors' Services, Inc. and Standard & Poor's | ||||||
25 | Corporation.
Agreements incorporating any of the foregoing | ||||||
26 | arrangements may be executed
and delivered by the Director of |
| |||||||
| |||||||
1 | the
Governor's Office of Management and Budget on behalf of the
| ||||||
2 | State in substantially the form approved in the Bond Sale Order | ||||||
3 | relating to
such Bonds.
| ||||||
4 | (Source: P.A. 93-839, eff. 7-30-04.)
| ||||||
5 | (30 ILCS 425/8) (from Ch. 127, par. 2808)
| ||||||
6 | Sec. 8. Sale of Bonds. Bonds, except as otherwise provided | ||||||
7 | in this Section, shall be sold from time to time pursuant to
| ||||||
8 | notice of sale and public bid or by negotiated sale in such | ||||||
9 | amounts and at such
times as are directed by the Governor, upon | ||||||
10 | recommendation by the Director of
the Governor's Office of | ||||||
11 | Management and Budget. At least 25%, based on total principal | ||||||
12 | amount, of all Bonds issued each fiscal year shall be sold | ||||||
13 | pursuant to notice of sale and public bid. At all times during | ||||||
14 | each fiscal year, no more than 75%, based on total principal | ||||||
15 | amount, of the Bonds issued each fiscal year shall have been | ||||||
16 | sold by negotiated sale. Failure to satisfy the requirements in | ||||||
17 | the preceding 2 sentences shall not affect the validity of any | ||||||
18 | previously issued Bonds ; and further provided that refunding | ||||||
19 | Bonds satisfying the requirements of Section 15 of this Act and | ||||||
20 | sold during fiscal year 2009, 2010, or 2011 shall not be | ||||||
21 | subject to the requirements in the preceding 2 sentences . | ||||||
22 | If any Bonds are to be sold pursuant to notice of sale and | ||||||
23 | public bid, the Director of the
Governor's Office of Management | ||||||
24 | and Budget shall comply with the
competitive request for | ||||||
25 | proposal process set forth in the Illinois
Procurement Code and |
| |||||||
| |||||||
1 | all other applicable requirements of that Code. | ||||||
2 | If Bonds are to be sold pursuant to notice of sale and | ||||||
3 | public bid, the
Director of the
Governor's Office of Management | ||||||
4 | and Budget shall, from time to time, as Bonds are to be sold, | ||||||
5 | advertise
the sale of the Bonds in at least 2 daily newspapers, | ||||||
6 | one of which is
published in the City of Springfield and one in | ||||||
7 | the City of Chicago. The sale
of the Bonds shall also be
| ||||||
8 | advertised in the volume of the Illinois Procurement Bulletin | ||||||
9 | that is
published by the Department of Central Management | ||||||
10 | Services. Each of
the advertisements for
proposals shall be | ||||||
11 | published once at least 10 days prior to the date fixed
for the | ||||||
12 | opening of the bids. The Director of the
Governor's Office of | ||||||
13 | Management and Budget may
reschedule the date of sale upon the | ||||||
14 | giving of such additional notice as the
Director deems adequate | ||||||
15 | to inform prospective bidders of
the change; provided, however, | ||||||
16 | that all other conditions of the sale shall
continue as | ||||||
17 | originally advertised.
Executed Bonds shall, upon payment
| ||||||
18 | therefor, be delivered to the purchaser, and the proceeds of | ||||||
19 | Bonds shall be
paid into the State Treasury as
directed by | ||||||
20 | Section 9 of this Act.
The
Governor or the Director of the
| ||||||
21 | Governor's Office of Management and Budget is hereby authorized
| ||||||
22 | and directed to execute and
deliver contracts of sale with | ||||||
23 | underwriters and to execute and deliver such
certificates, | ||||||
24 | indentures, agreements and documents, including any
| ||||||
25 | supplements or amendments thereto, and to take such actions and | ||||||
26 | do such
things as shall be necessary or desirable to carry out |
| |||||||
| |||||||
1 | the purposes of this
Act.
Any action authorized or permitted to | ||||||
2 | be taken by the Director of the
Governor's Office of Management | ||||||
3 | and Budget
pursuant to this Act is hereby authorized to be | ||||||
4 | taken
by any person specifically designated by the Governor to | ||||||
5 | take such action
in a certificate signed by the Governor and | ||||||
6 | filed with the Secretary of State.
| ||||||
7 | (Source: P.A. 93-839, eff. 7-30-04.)
| ||||||
8 | (30 ILCS 425/15) (from Ch. 127, par. 2815)
| ||||||
9 | Sec. 15. Refunding Bonds. Refunding Bonds are hereby | ||||||
10 | authorized for
the purpose of refunding any outstanding Bonds, | ||||||
11 | including the payment of
any redemption premium thereon, any | ||||||
12 | reasonable expenses of such refunding,
and any interest accrued | ||||||
13 | or to accrue to the earliest or any subsequent
date of | ||||||
14 | redemption or maturity of outstanding Bonds; provided that all | ||||||
15 | non-refunding Bonds in an issue that includes
refunding Bonds | ||||||
16 | shall mature no later than the final maturity date of Bonds
| ||||||
17 | being refunded; provided that no refunding Bonds shall be | ||||||
18 | offered for sale unless the net present value of debt service | ||||||
19 | savings to be achieved by the issuance of the refunding Bonds | ||||||
20 | is 3% or more of the principal amount of the refunding Bonds to | ||||||
21 | be issued; and further provided that , except for refunding | ||||||
22 | Bonds sold in fiscal year 2009, 2010, or 2011, the maturities | ||||||
23 | of the refunding Bonds shall not extend beyond the maturities | ||||||
24 | of the Bonds they refund, so that for each fiscal year in the | ||||||
25 | maturity schedule of a particular issue of refunding Bonds, the |
| |||||||
| |||||||
1 | total amount of refunding principal maturing and redemption | ||||||
2 | amounts due in that fiscal year and all prior fiscal years in | ||||||
3 | that schedule shall be greater than or equal to the total | ||||||
4 | amount of refunded principal and redemption amounts that had | ||||||
5 | been due over that year and all prior fiscal years prior to the | ||||||
6 | refunding.
| ||||||
7 | Refunding Bonds may be sold in such amounts and at such | ||||||
8 | times, as
directed by the Governor upon
recommendation by the | ||||||
9 | Director of the
Governor's Office of Management and Budget. The | ||||||
10 | Governor
shall notify the State Treasurer and
Comptroller of | ||||||
11 | such refunding. The proceeds received from the sale of
| ||||||
12 | refunding Bonds shall be used
for the retirement at maturity or | ||||||
13 | redemption of such outstanding Bonds on
any maturity or | ||||||
14 | redemption date and, pending such use, shall be placed in
| ||||||
15 | escrow, subject to such terms and conditions as shall be | ||||||
16 | provided for in
the Bond Sale Order relating to the refunding | ||||||
17 | Bonds. This Act shall
constitute an irrevocable and continuing
| ||||||
18 | appropriation of all amounts necessary to establish an escrow | ||||||
19 | account for
the purpose of refunding outstanding Bonds and to | ||||||
20 | pay the reasonable
expenses of such refunding and of the | ||||||
21 | issuance and sale of the refunding
Bonds. Any such escrowed | ||||||
22 | proceeds may be invested and
reinvested in direct obligations | ||||||
23 | of the United States of America, maturing
at such time or times | ||||||
24 | as shall be appropriate to assure the prompt payment,
when due,
| ||||||
25 | of the principal of and interest and redemption premium, if | ||||||
26 | any, on the
refunded Bonds. After the terms of the escrow have |
| |||||||
| |||||||
1 | been fully satisfied,
any remaining balance of such proceeds | ||||||
2 | and interest, income and profits
earned or realized on the | ||||||
3 | investments thereof shall be paid into the
General Revenue | ||||||
4 | Fund. The liability of the State upon the refunded Bonds
shall | ||||||
5 | continue, provided that the holders thereof shall thereafter be
| ||||||
6 | entitled to payment only out of the moneys deposited in the | ||||||
7 | escrow account
and the refunded Bonds shall be deemed paid, | ||||||
8 | discharged and no longer to be
outstanding.
| ||||||
9 | Except as otherwise herein provided in this Section, such | ||||||
10 | refunding Bonds
shall in all other respects be issued pursuant | ||||||
11 | to and subject to the terms
and conditions of this Act and | ||||||
12 | shall be secured by and payable from only the
funds and sources | ||||||
13 | which are provided under this Act.
| ||||||
14 | (Source: P.A. 93-839, eff. 7-30-04.)
| ||||||
15 | Section 99. Effective date. This Act takes effect upon | ||||||
16 | becoming law.
|