2023 Illinois Compiled Statutes › Chapter 30 - FINANCE › 30 ILCS 340/ - Short Term Borrowing Act.

(30 ILCS 340/0.01) (from Ch. 120, par. 405H)
Sec. 0.01. Short title. This Act may be cited as the
Short Term Borrowing Act.
(Source: P.A. 88-669, eff. 11-29-94; 93-1046, eff. 10-15-04.)
(30 ILCS 340/1) (from Ch. 120, par. 406)
Sec. 1. 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 costs of borrowing and the
debts thus created, and to no other purpose. All moneys so borrowed shall be
repaid by the close of the fiscal year in which borrowed.
(Source: P.A. 101-630, eff. 5-29-20.)
(30 ILCS 340/1.1)
Sec. 1.1. Borrowing upon emergencies or failures in revenue. Whenever emergencies or failures in
revenues of the State occur, in order to meet deficits caused by those emergencies or 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 costs of borrowing and 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 7 days after the
notice is served.  All moneys so borrowed shall be borrowed for no longer time
than one year.
(Source: P.A. 101-630, eff. 5-29-20.)
(30 ILCS 340/2) (from Ch. 120, par. 407)
Sec. 2. Sale of certificates. For borrowing authorized under Sections 1
and 1.1 of this Act, certificates may be issued and sold from time to time, in
one or more series, in amounts, at prices and at interest rates, all as
directed by the Governor, Comptroller, and Treasurer.  Bidders shall submit
sealed bids to the
Director of the
Governor's Office of Management and 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 the
Governor's Office of Management and Budget.  The
loan shall be awarded to the bidder offering the lowest effective rate of
interest not exceeding the maximum rate authorized by the Bond Authorization
Act as amended at the time of the making of the contract.
However, for borrowing authorized under Sections 1 and 1.1 of this Act during fiscal years 2020 and 2021 only, certificates may be issued and sold on a negotiated basis rather than by sealed bid from time to time, in one or more series, in amounts, at prices and at interest rates, and in such manner, all as directed by the Governor, Comptroller, and Treasurer. The rate of interest must not exceed the maximum rate authorized by the Bond Authorization Act as amended at the time of the making of the contract. The requirements of the Illinois Procurement Code shall not apply to the selection of the purchaser of any certificates sold in accordance with the provisions of this paragraph.
With respect to instruments for the payment of money issued under this
Section either before, on, or after the effective date of this amendatory
Act of 1989, it is and always 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
Omnibus Bond Acts, regardless of any provision of this Act that may appear
to be or to have been more restrictive than those Acts, (ii) that the
provisions of this Section are not 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.
(Source: P.A. 101-630, eff. 5-29-20.)
(30 ILCS 340/3) (from Ch. 120, par. 408)
Sec. 3. There shall be prepared under the direction of the officers
named in this Act such form of 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.  The interest and principal
of such certificates 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.
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.
(Source: P.A. 101-275, eff. 8-9-19; 101-630, eff. 5-29-20.)