SB 2263 — GO BOND ACT-REDUCTION-TECH

Cash flow borrowing.

Whenever significant timing variations occur between disbursement and receipt of budgeted funds within a fiscal year, making it necessary to borrow in anticipation of revenues to be collected in a fiscal year, in order to meet the same, the Governor, Comptroller and Treasurer may contract debts, in an amount not exceeding 5% of the State’s appropriations for that fiscal year, and moneys thus borrowed shall be applied to the purpose for which they were obtained, or to pay the debts thus created, and to no other purpose.

All moneys so borrowed shall be repaid by the close of SB2263 Enrolled - 3 - LRB093 15838 RCE 41455 b the fiscal year in which borrowed.

(Source:

P.A.

88-669, eff.

11-29-94.) (30 ILCS 340/1.1) Sec.

1.1.

Borrowing upon failures in revenue.

Whenever failures in revenues of the State occur, in order to meet those failures, the Governor, Comptroller, and Treasurer may contract debts in an amount not exceeding 15% of the State’s appropriations for that fiscal year.

The moneys thus borrowed shall be applied to the purposes for which they were obtained, or to pay the debts thus created by the borrowing, and to no other purpose.

Before incurring debt under this Section, the Governor shall give written notice to the Clerk of the House of Representatives, the Secretary of the Senate, and the Secretary of State setting forth the reasons for the proposed borrowing and the corrective measures recommended to restore the State’s fiscal soundness.

The notice shall be a public record and open for inspection at the offices of the Secretary of State during normal business hours.

No debt may be incurred under this Section until 30 days after the notice is served.

All moneys so borrowed shall be borrowed for no longer time than one year.

(Source:

P.A.

88-669, eff.

11-29-94.) (30 ILCS 340/2) (from Ch.

120, par.

407) Sec.

AuthorizationSale forof Bonds.certificates.

TheFor Stateborrowing of Illinois is authorized tounder issue,Sections sell1 and provide1.1 forof thethis retirementAct, ofcertificates Generalmay Obligationbe Bondsissued ofand thesold Statefrom oftime Illinoisto fortime, thein categoriesone andor specificmore purposesseries, expressed in Sectionsamounts, 2at throughprices 8and ofat thisinterest Act,rates, inall theas totaldirected amountby ofthe $27,658,149,368Governor, $27,658,149,369.Comptroller, and Treasurer.

TheBidders bondsshall authorizedsubmit insealed thisbids Sectionto 2the Director of the Governor’s Office of Management and inBudget SectionBureau 16of the Budget upon such terms as shall be approved by the Governor, Comptroller, and Treasurer after such notice as shall be determined to be reasonable by the Director of thisthe ActGovernor’s areOffice hereinof calledManagement "Bonds".and Budget Bureau of the Budget.

OfThe loan shall be awarded to the totalbidder amountoffering ofthe Bondslowest authorizedeffective inrate thisof Act,interest upnot toexceeding $2,200,000,000SB2263 inEnrolled aggregate- original4 principal- amountLRB093 may15838 beRCE issued41455 andb soldthe inmaximum accordancerate withauthorized by the BaccalaureateBond SavingsAuthorization Act inas amended at the formtime of Generalthe Obligationmaking Collegeof Savingsthe Bonds.contract.

OfWith therespect totalto amountinstruments for the payment of Bondsmoney authorizedissued inunder this Act,Section upeither tobefore, $300,000,000on, inor aggregateafter originalthe principaleffective amountdate mayof bethis issuedamendatory Act of 1989, it is and soldalways has been the intention of the General Assembly (i) that the Omnibus Bond Acts are and always have been supplementary grants of power to issue instruments in accordance with the RetirementOmnibus SavingsBond Acts, regardless of any provision of this Act inthat may appear to be or to have been more restrictive than those Acts, (ii) that the formprovisions of Generalthis ObligationSection Retirementare Savingsnot Bonds.a limitation on the supplementary authority granted by the Omnibus Bond Acts, and (iii) that instruments issued under this Section within the supplementary authority granted by the Omnibus Bond Acts are not invalid because of any provision of this Act that may appear to be or to have been more restrictive than those Acts.

Of the total amount of Bonds authorized in this Act, the additional $10,000,000,000 authorized by this amendatory Act of the 93rd General Assembly shall be used solely as provided in Section 7.2.

The issuance and sale of Bonds pursuant to the General Obligation Bond Act is an economical and efficient method of financing the capital and general operating needs of the State.

This Act will permit the issuance of a multi-purpose General Obligation Bond with uniform terms and features.

This will not only lower the cost of registration but also reduce the overall SB2263 Engrossed - 2 - LRB093 15838 RCE 41455 b cost of issuing debt by improving the marketability of Illinois General Obligation Bonds.

92-13,88-669, eff.

6-22-01;11-29-94;

92-596,revised eff.8-23-03.) (30 ILCS 340/3) (from Ch.

6-28-02;120, par.

92-598,408) eff.Sec.

6-28-02;3.

93-2,There eff.shall be prepared under the direction of the officers named in this Act such form of bonds or certificates as they shall deem advisable, which, when issued, shall be signed by the Governor, Comptroller and Treasurer, and shall be recorded by the Comptroller in a book to be kept by him or her for that purpose.

4-7-03.)The Sectioninterest 99.and principal of such loan shall be paid by the treasurer out of the General Obligation Bond Retirement and Interest Fund.

There is hereby appropriated out of any money in the Treasury a sum sufficient for the payment of the interest and principal of any debts contracted under this Act.

The Governor, Comptroller, and Treasurer are authorized to order pursuant to the proceedings authorizing those debts the transfer of any moneys on deposit in the treasury into the General Obligation Bond Retirement and Interest Fund at times and in amounts they deem necessary to provide for the payment of that interest and principal.

SB2263 Enrolled - 5 - LRB093 15838 RCE 41455 b The Comptroller is hereby authorized and directed to draw his warrant on the State Treasurer for the amount of all such payments.

The directive authorizing borrowing under Section 1 or 1.1 of this Act shall set forth a pro forma cash flow statement that identifies estimated monthly receipts and expenditures with identification of sources for repaying the borrowed funds.

All proceeds from any borrowing under this Act received by the State on or after June 10, 2004 the effective date of this amendatory Act of the 93rd General Assembly and before July 1, 2004 shall be deposited into the Medicaid Provider Relief Fund.

(Source:

P.A.

88-669, eff.

11-29-94;

93-674, eff.

6-10-04.) Section 99.

This Act takes effect Julyupon 1,becoming 2004.law.