Bill Text: IL HB0689 | 2009-2010 | 96th General Assembly | Engrossed

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Bill Title: Amends the Higher Education Student Assistance Act. Provides that bonds issued in accordance with the Act may be designated by the Illinois Student Assistance Commission as guaranteed by the State of Illinois. Provides that this guarantee shall constitute a general obligation of the State of Illinois, with the full faith, credit, and resources of the State of Illinois irrevocably pledged for the punctual payment of the principal of, interest on, and premium, if any, on any such bond. Provides that these provisions are irrepealable until all such bonds are paid in full as to both principal and interest. Provides that any bonds designated pursuant to these provisions shall be issued by the Commission on or prior to December 31, 2009 and shall be limited in aggregate principal issuance amount to not greater than $50,000,000. Sets forth provisions concerning appropriations for insufficient amounts, a continuing appropriation for insufficient appropriations, the rights and powers of the Commission not being impaired, and allowing a civil action to compel payment. Effective immediately.

Spectrum: Bipartisan Bill

Status: (Introduced - Dead) 2009-04-03 - Rule 19(a) / Re-referred to Rules Committee [HB0689 Detail]

Download: Illinois-2009-HB0689-Engrossed.html

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AN ACT concerning education.
Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
Section 5. The Higher Education Student Assistance Act is
amended by adding Section 152 as follows:
(110 ILCS 947/152 new)
Sec. 152. Bonds guaranteed by the State of Illinois.
Notwithstanding any other provision of this Act, bonds issued
in accordance with the provisions of this Act may be designated
by the Commission as guaranteed by the State of Illinois, and
any bonds so designated shall so state on the face thereof.
This guarantee shall constitute a general obligation of the
State of Illinois, and the full faith, credit, and resources of
the State of Illinois are hereby irrevocably pledged for the
punctual payment of the principal of, interest on, and premium,
if any, on any such bond as the same shall become due, whether
at maturity or upon any earlier redemption date. The provisions
of this Section shall be irrepealable until all such bonds are
paid in full as to both principal and interest. Any bonds
designated pursuant to this Section shall be issued by the
Commission on or prior to December 31, 2009 and shall be
limited in aggregate principal issuance amount to not greater
than $50,000,000.

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Upon written notice to the Governor from the Chairperson of
the Commission that the Commission has determined that amounts
pledged pursuant to Section 150 of this Act to pay the bonds
will not be sufficient for the payment of amounts due with
respect to the bonds during the next State of Illinois fiscal
year, the Governor shall include an appropriation in the State
of Illinois budget for the next fiscal year with respect to the
bonds. The appropriation shall be for such amount as determined
by the Commission. Amounts included in the appropriation for
the payment of interest on variable rate bonds may, at the
determination of the Commission, be up to the maximum amount of
interest that may be payable for the period covered by the
budget; provided that any amounts appropriated for interest on
variable rate bonds in excess of amounts necessary to pay the
interest shall promptly be reimbursed by the Commission to the
State of Illinois.
If for any reason the General Assembly fails to make
appropriations sufficient to pay the principal of, interest on,
and premium, if any, on the bonds, as the same by their terms
shall become due, this Section shall constitute an irrevocable
and continuing appropriation of all amounts necessary for that
purpose and the irrevocable and continuing authority for and
direction to the State Treasurer and the State Comptroller to
make the necessary transfers, as directed by the Governor, out
of and disbursements from the revenues and funds of the State
of Illinois.

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The State of Illinois pledges and agrees that it will not
limit or alter the rights and powers vested in the Commission
in this Section so as to impair the terms of any such
irrevocable guarantee of the State of Illinois until each such
guarantee is satisfied in full or the bonds shall have
otherwise been paid in full.
If the State of Illinois fails to honor any guarantee made
pursuant to this Section, a civil action to compel payment may
be instituted in the Supreme Court of Illinois as a court of
original jurisdiction by any holder or holders of the bonds to
which such failure relates. Delivery of a summons and a copy of
the complaint to the Attorney General shall constitute
sufficient service to give the Supreme Court of Illinois
jurisdiction of the subject matter of such a suit and
jurisdiction over the State of Illinois and its officers named
as defendants for the purpose of compelling such payment. Any
case, controversy, or cause of action concerning the validity
of this Section relates to the revenue of the State of
Illinois.
If the Supreme Court of Illinois denies any holder or
holders of bonds leave to file an original action in the
Supreme Court, the holder or holders may bring such action in
the Circuit Court of Sangamon County.
Section 99. Effective date. This Act takes effect upon
becoming law.