Sen. Edward D. Maloney
Filed: 5/30/2005
 
 

 




 

 		












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AMENDMENT TO HOUSE BILL 806




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    AMENDMENT NO. ______. Amend House Bill 806 by replacing 
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everything after the enacting clause with the following:

 
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    "Section 5. The Governor's Office of Management and Budget 
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Act is amended  by changing Section 2 and by adding Section 2.8 
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as follows:
 



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    (20 ILCS 3005/2)  (from Ch. 127, par. 412)


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    Sec. 2. There is created in the executive office of the 
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Governor an Office
to
be known as the Governor's Office of 
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Management and
Budget. The Office shall be headed by a

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Director, who shall be appointed by the Governor. The functions 
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of the
Office shall be as prescribed in the following Sections 
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preceding Section 3
Sections 2.1 through 2.7 of
this
Act.

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(Source: P.A. 93-25, eff. 6-20-03.)


 
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    (20 ILCS 3005/2.8  new)
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    Sec. 2.8. Undertaking of transactions involving the sale or 
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transfer of eligible student loans and origination and 
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servicing rights. To undertake the sale of eligible student 
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loans and origination and servicing rights under Section 140 of 
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the Higher Education Student Assistance Act.
 
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    Section 10. The Higher Education Student Assistance Act is 
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amended  by changing Sections 140 and 160 as follows:
 



 


 






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    (110 ILCS 947/140)



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    Sec. 140. Powers and duties. The Commission shall have the 
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following
powers in furtherance of the programs authorized by 
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this Act:

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    (a) To adopt rules and regulations governing the 
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purchasing, servicing,
and selling of eligible loans and any 
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other matters relating to the activities
of the guaranteed loan 
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programs.

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    (b) To perform such other acts as may be necessary or 
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appropriate in
connection with the making, purchasing, 
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servicing, and selling of eligible
loans.

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    (c) To sue and be sued in the name of the Commission.

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    (d) To make, purchase, service, sell, or otherwise deal
in, 
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at prices and on terms and conditions determined by the 
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Governor's Office of Management and Budget
Commission,

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eligible loans, including loans guaranteed by the Commission. 
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The Governor's Office of Management and Budget is authorized, 
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with the assistance of the Commission, to undertake the sale of 
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the Commission's outstanding eligible loans and attendant loan 
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origination and servicing rights in an "Eligible Loan Portfolio 
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Sale", in the following manner: Any such Eligible Loan 
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Portfolio Sale shall be at such prices and upon such terms and 
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conditions, including, without limitation, the duties and 
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responsibilities with respect to the servicing of outstanding 
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eligible loans, all as determined by the Governor's Office of 
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Management and Budget, with the assistance of the Commission, 
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pursuant to a procurement conducted in accordance with Section 
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20-15 of the Illinois Procurement Code with the assistance of 
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the Commission.  In connection with an Eligible Loan Portfolio 
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Sale: (i) the Commission may agree not to exercise, for a 
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specified number of years, any or all of the powers and duties 
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specified in the Education Loan Purchase Program Law and (ii) 
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the purchasers thereof may be authorized to make and service 
 


 






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loans which, if made by the Commission, would constitute 
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eligible loans under this Act.

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    (e) To issue bonds to make or acquire eligible loans or to 
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refund the
bonds of the Commission and to provide for the 
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security and payment of those
bonds and for the rights of the 
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holders thereof.

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    (f) To retain in accounts designated in the resolution or 
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resolutions
authorizing the bonds of the Commission and to 
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disburse therefrom all proceeds
from the sale of the bonds of 
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the Commission issued pursuant to this Act, all
eligible loans 
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receipts received by the Commission, and all earnings received

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by the Commission from any authorized investment.

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    (g) To hire and retain such attorneys, accountants, 
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financial advisors,
and other employees as may be required by 
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the Commission, to determine their
qualifications, to define 
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their duties, to fix their compensation, and to pay
that 
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compensation from the proceeds from the sale of the bonds of 
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the
Commission issued pursuant to this Act and from the 
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earnings received by the
Commission from any authorized 
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investment as provided in the resolution or
resolutions 
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authorizing the bonds, all notwithstanding any other 
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provisions of
this Act or any other law.

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    (h) To enter into contracts, to execute instruments, to 
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invest and to
accumulate assets, to incur liabilities, and to 
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do all things necessary or
incidental to the proper management 
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of such affairs and the proper conduct of
such business as are 
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authorized under this Act.

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(Source: P.A. 87-997.)

 



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    (110 ILCS 947/160)


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    Sec. 160. Moneys of the Commission. Notwithstanding the 
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provisions of this
Act or of any other law, all proceeds from 
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the sale of the bonds of the
Commission issued pursuant to this 
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Act or pledged or assigned to or in trust
for the benefit of 
 


 






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the holder or holders thereof shall be deposited by the

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Chairman of the Commission in such bank or banks or trust 
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company or trust
companies as may be designated by the 
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Commission, and all deposits of such
moneys shall, if required 
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by the Commission, be secured by direct or fully
guaranteed 
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obligations of the United States of America, of a market value 
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equal
at all times to the amount of the moneys on deposit.  Such 
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moneys shall be
disbursed as may be directed by the Commission 
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and in accordance with the terms
of any agreements with the 
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holder or holders of any bonds.  This Section shall
not be 
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construed as limiting the power of the Commission to agree in 
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connection
with the issuance of any of its bonds as to the 
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custody and disposition of the
moneys received from the sale of 
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the bonds or from the income and revenues
pledged or assigned 
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to or in trust for the benefit of the holder or holders

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thereof. In addition to the authority otherwise available to 
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invest funds, the
Commission may invest any of its funds in 
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obligations the interest upon which
is tax-exempt under the 
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provision of Section 103 of the Internal Revenue Code
of 1986, 
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or any successor code or provision. When all of the bonds of 
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the
Commission have been paid or provision has been made for 
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the payment thereof
and when the Commission has determined that 
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it has accumulated more funds than
are necessary therefor, 
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those surplus funds shall be paid into the Student Loan 
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Operating Fund established under Section 113 of this Act; and 
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provided that in connection with an Eligible Loan Portfolio 
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Sale under Section 140 of this Act, after all bonds have been 
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paid or defeased or provision has been otherwise made for the 
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payment thereof and all costs and expenses incurred in 
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connection with such Sale have been paid or provided for, all 
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remaining funds derived from such Sale shall be paid one-third 
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into the Student Loan Operating Fund, for the sole purpose of 
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making grants under Section 35 of this Act, and two-thirds into 
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the General Revenue Fund
Student Loan
Fund established under 
 


 






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Section 110. No more than 25% of the amounts deposited into the 
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Student Loan Operating Fund in any fiscal year pursuant to this 
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Section may be expended in each of that and the 3 immediately 
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following fiscal years.


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(Source: P.A. 87-997.)


 
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    Section 99. Effective date. This Act takes effect July 1, 
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2005.".