Signed by Governor Pat Quinn

Vote Smart's Synopsis:

Vote to concur with House amendments and pass a bill that allows public universities to borrow anticipated monies from the state.

Highlights:

-Authorizes the Board of Trustees at every Illinois public university to borrow money in anticipation of receiving tuition, payment from the state of Illinois or other anticipated monies (Sec. 5). -Specifies that the amount to be borrowed cannot be more than 100 percent of the university's total payroll and other expense vouchers submitted and payable to the university for fiscal year 2010, but unpaid at the State Comptroller's Office (Sec. 5). -Requires that prior to borrowing money, universities request from the State Comptroller's office a verification of the borrowing limit and include in the request an estimated date of when the university expects to borrow the money (Sec. 5). -Specifies that the principal amount to be borrowed cannot be more than 75 percent of the total borrowing limit, as determined by the State Comptroller's Office (Sec. 5). -Requires universities to, when borrowing money, submit an Emergency Short Term Cash Management Plan outlining the amount borrowed, the terms for repayment, the amount of outstanding vouchers as verified by the State Comptroller's Office, and the university's plan for expenditure of any borrowed funds (Sec. 5). -Requires any borrowing that takes place to be finalized within 90 days of the passage of the act (Sec. 5). -Requires the borrowed money to go to paying salaries and other expenses lawfully authorized in the University's state appropriation and unpaid by the State Comptroller (Sec. 5). -Requires any line of credit established by a university to be repaid in full either one year after the borrowing date or 10 days after the university receives reimbursement from the state for all fiscal year 2010 vouchers, whichever is earlier (Sec. 5). -Requires any line of credit or promissory note established in order to borrow funds for a university to first be authorized by a resolution passed by the Board of Trustees (Sec. 5). -Requires that the resolution needed for any university to borrow money include the facts demonstrating the need to borrow, an amount that the amount to be borrowed will not exceed, and a maximum interest rate limit not to exceed the amount authorized by the Bond Authorization Act or 9 percent, whichever is less (Sec. 5). -Authorizes the resolution to direct the Treasurer of the Board to make partial payments of the borrowing as the anticipated moneys become available and to contain any other terms, restrictions or limitations as long as they are consistent with the powers of the Board (Sec. 5).

Full Bill Text

Vote Smart's Synopsis:

Vote to pass a bill that allows public universities to borrow anticipated monies from the state.

Highlights:

-Authorizes the Board of Trustees at every Illinois public university to borrow money in anticipation of receiving tuition, payment from the state of Illinois or other anticipated monies (Sec. 5). -Specifies that the amount to be borrowed cannot be more than 100 percent of the university's total payroll and other expense vouchers submitted and payable to the university for fiscal year 2010, but unpaid at the State Comptroller's Office (Sec. 5). -Requires that prior to borrowing money, universities request from the State Comptroller's office a verification of the borrowing limit and include in the request an estimated date of when the university expects to borrow the money (Sec. 5). -Specifies that the principal amount to be borrowed cannot be more than 75 percent of the total borrowing limit, as determined by the State Comptroller's Office (Sec. 5). -Requires universities to, when borrowing money, submit an Emergency Short Term Cash Management Plan outlining the amount borrowed, the terms for repayment, the amount of outstanding vouchers as verified by the State Comptroller's Office, and the university's plan for expenditure of any borrowed funds (Sec. 5). -Requires any borrowing that takes place to be finalized within 90 days of the passage of the act (Sec. 5). -Requires the borrowed money to go to paying salaries and other expenses lawfully authorized in the University's state appropriation and unpaid by the State Comptroller (Sec. 5). -Requires any line of credit established by a university to be repaid in full either one year after the borrowing date or 10 days after the university receives reimbursement from the state for all fiscal year 2010 vouchers, whichever is earlier (Sec. 5). -Requires any line of credit or promissory note established in order to borrow funds for a university to first be authorized by a resolution passed by the Board of Trustees (Sec. 5). -Requires that the resolution needed for any university to borrow money include the facts demonstrating the need to borrow, an amount that the amount to be borrowed will not exceed, and a maximum interest rate limit not to exceed the amount authorized by the Bond Authorization Act or 9 percent, whichever is less (Sec. 5). -Authorizes the resolution to direct the Treasurer of the Board to make partial payments of the borrowing as the anticipated moneys become available and to contain any other terms, restrictions or limitations as long as they are consistent with the powers of the Board (Sec. 5).

Full Bill Text