Illinois Compiled Statutes
Chapter 30 - FINANCE
30 ILCS 440/ - Illinois Unemployment Insurance Trust Fund Financing Act.

(30 ILCS 440/1)
Sec. 1. Short title. This Act may be cited as the Illinois
Unemployment Insurance
Trust Fund Financing Act.


(Source: P.A. 93-634, eff. 1-1-04.)
 
(30 ILCS 440/2)
Sec. 2. Findings and Declaration of Policy. It is hereby found and
declared that:
(Source: P.A. 93-634, eff. 1-1-04.)
 
(30 ILCS 440/3)
Sec. 3. Definitions. For purposes of this Act:
A. "Act" shall mean the Illinois Unemployment Insurance Trust Fund
Financing Act.
B. "Benefits" shall have the meaning provided in the Unemployment
Insurance Act.
C. "Bond" means any type of revenue obligation, including, without
limitation, fixed
rate, variable rate, auction rate or similar bond, note, certificate, or other
instrument, including,
without limitation, an interest rate exchange agreement, an interest rate lock
agreement, a
currency exchange agreement, a forward payment conversion agreement, an
agreement to
provide payments based on levels of or changes in interest rates or currency
exchange rates, an
agreement to exchange cash flows or a series of payments, an option, put, or
call to hedge
payment, currency, interest rate, or other exposure, payable from and secured
by
a pledge of
Fund Building Receipts collected pursuant to the Unemployment Insurance Act,
and
all interest
and other earnings upon such amounts held in the Master Bond Fund, to the
extent
provided in
the proceedings authorizing the obligation.
D. "Bond Administrative Expenses" means expenses and fees incurred to
administer
and issue, upon a conversion of any of the Bonds from one mode to another and
from taxable to
tax-exempt, the Bonds issued pursuant to this Act, including fees for paying
agents, trustees,
financial advisors, underwriters, remarketing agents, attorneys and for other
professional services
necessary to ensure compliance with applicable state or federal law.
E. "Bond Obligations" means the principal of a Bond and any premium and
interest
on a Bond issued pursuant to this Act, together with any amount owed under a
related Credit
Agreement.
F. "Credit Agreement" means, without limitation, a loan agreement, a
revolving
credit agreement, an agreement establishing a line of credit, a letter of
credit, notes, municipal
bond insurance, standby bond purchase agreements, surety bonds, remarketing
agreements and
the like, by which the Department may borrow funds to pay or redeem or purchase
and hold its
bonds, agreements for the purchase or remarketing of bonds or any other
agreement that
enhances the marketability, security, or creditworthiness of a Bond issued
under
this Act.
G. "Department" means the Illinois Department of
Employment Security.
H. "Director" means the Director of the Illinois Department of
Employment
Security.
I. "Fund Building Rates" are those rates imposed pursuant to Section
1506.3 of the
Unemployment Insurance Act.
J. "Fund Building Receipts" shall have the meaning provided in the
Unemployment
Insurance Act and includes earnings on such receipts.
K. "Master Bond Fund" shall mean, for any particular issuance of Bonds
under this
Act, the fund established for the deposit of Fund Building Receipts upon or
prior to the issuance
of Bonds under this Act, and during the time that any Bonds are outstanding
under this Act and from
which the
payment of Bond Obligations and the related Bond Administrative Expenses
incurred in
connection with such Bonds shall be made. That portion of the Master Bond
Fund
containing the Required Fund Building Receipts Amount shall be irrevocably
pledged to the
timely payment of Bond Obligations and Bond Administrative Expenses due on any
Bonds
issued pursuant to this Act and any Credit Agreement entered in connection with
the Bonds.
The Master Bond Fund shall be held separate and apart from all other
State funds.
Moneys in the Master Bond Fund shall not be commingled with other State
funds, but they
shall be deposited as required by law and maintained in a separate account on
the books of a
savings and loan association, bank or other qualified financial institution.
All interest earnings on amounts within
the Master Bond
Fund shall accrue to the Master Bond Fund.
The Master Bond Fund may include such funds and accounts as are necessary
for the
deposit of bond proceeds, Fund Building Receipts, payment of principal,
interest, administrative
expenses, costs of issuance, in the case of bonds which are exempt from Federal
taxation, rebate
payments, and such other funds and accounts which may be necessary for the
implementation
and administration of this Act.
The Director shall be liable on her or his general official bond for the
faithful
performance of her or his duties as custodian of the Master Bond Fund. Such
liability on
her or his official bond shall exist in addition to the liability upon any
separate
bond given by
her or him. All sums recovered for losses sustained by the Master Bond Fund
shall
be deposited into
the Fund.
The Director shall report quarterly in writing to the Employment Security
Advisory Board concerning the
actual and
anticipated deposits into and expenditures and transfers made from the Master
Bond Fund.
Notwithstanding any other provision to the contrary, no report is required under this subsection K if (i) the Master Bond Fund held a net balance of zero as of the close of the immediately preceding calendar quarter, (ii) there have been no deposits into the Master Bond Fund within any of the immediately preceding 4 calendar quarters, and (iii) there have been no expenditures or transfers from the Master Bond Fund within any of the immediately preceding 4 calendar quarters.
L. "Required Fund Building Receipts Amount" means the aggregate amount of
Fund
Building Receipts required to be maintained in the Master Bond Fund as set
forth
in Section 4I
of this Act.


(Source: P.A. 97-621, eff. 11-18-11.)
 
(30 ILCS 440/4)
Sec. 4. Authority to Issue Revenue Bonds.
A. The Department shall have the continuing power to borrow money for
the purpose
of carrying out the following:
Paragraphs 1, 2 and 4 are inoperative on and after January 1, 2022.
B. As evidence of the obligation of the Department to repay money
borrowed for the
purposes set forth in Section 4A above, the Department may issue and dispose of
its interest
bearing revenue Bonds and may also, from time-to-time, issue and dispose of its
interest bearing
revenue Bonds to purchase, redeem, refund, advance refund or defease
(including,
any
combination of the foregoing) any Bonds at maturity or pursuant to redemption
provisions or at
any time before maturity. The Director, in consultation with the Department's
Employment
Security Advisory Board, shall have the power to direct that the Bonds be
issued. Bonds may be
issued in one or more series and under terms and conditions as needed in
furtherance of the
purposes of this Act. The Illinois Finance Authority shall provide any
technical, legal, or
administrative services if and when requested by the Director and the
Employment
Security
Advisory Board with regard to the issuance of Bonds. The Governor's Office of Management and Budget may, upon the written request of the Director, issue the bonds authorized pursuant to this Act on behalf of the Department and, for that purpose, may retain such underwriters, financial advisors, and counsel as may be appropriate from the Office's then-existing roster of prequalified vendors. Such
Bonds shall be
issued in the name of the State of Illinois for the benefit of the Department
and shall be executed
by the Director. In case any Director whose signature appears on any Bond
ceases (after
attaching his or her signature) to hold that office, her or his signature shall
nevertheless be valid
and effective for all purposes.
C. No Bonds shall be issued without the Director's written
certification that, based
upon a reasonable financial analysis, the issuance of Bonds is reasonably
expected to:
D. All such Bonds shall be payable from Fund Building Receipts. Bonds
may also
be paid from (i) to the extent allowable by law, from monies in the State's
account
in the
Unemployment Trust Fund of the United States Treasury; and (ii) to the extent
allowable by law, a
federal advance under Section 1201, et seq., of the Social Security Act (42
U.S.C. Section 1321);
and (iii) proceeds of Bonds and receipts from related credit and exchange
agreements to the extent allowed by this Act and applicable
legal requirements.
E. The maximum principal amount of the Bonds, when combined with the
outstanding principal of all other Bonds issued pursuant to this Act, shall not
at any time exceed
$2,400,000,000, excluding all of the outstanding principal of any other Bonds
issued pursuant to
this Act
for which payment
has been irrevocably provided by refunding or other manner of defeasance. It is
the intent of this
Act that the outstanding Bond authorization limits provided for in this Section
4E shall be
revolving in nature, such that the amount of Bonds outstanding that are not
refunded or otherwise
defeased shall be included in determining the maximum amount of Bonds
authorized
to be issued
pursuant to the Act.
F. Such Bonds and refunding Bonds issued pursuant to this Act may bear
such date
or dates, may mature at such time or times not exceeding 10 years from their
respective dates of
issuance, and may bear interest at such rate or rates not exceeding the maximum
rate authorized
by the Bond Authorization Act, as amended and in effect at the time of the
issuance of the
Bonds.
G. The Department may enter into a Credit Agreement pertaining to the
issuance of
the Bonds, upon terms which are not inconsistent with this Act and any other
laws, provided that
the term of such Credit Agreement shall not exceed the term of the Bonds, plus
any time period
necessary to cure any defaults under such Credit Agreement.
H. Interest earnings paid to holders of the Bonds shall not be exempt
from income
taxes imposed by the State.
I. While any Bond Obligations are outstanding or anticipated to come
due as a result
of Bonds expected to be issued in either or both of the 2 immediately
succeeding calendar quarters, the
Department shall
collect and deposit Fund Building Receipts into the Master Bond Fund in an
amount necessary to
satisfy the Required Fund Building Receipts Amount prior to expending Fund
Building Receipts
for any other purpose. The Required Fund Building Receipts Amount shall be that
amount
necessary to ensure the marketability of the Bonds, which shall be specified in
the Bond Sale
Order executed by the Director in connection with the issuance of the Bonds.
J. Holders of the Bonds shall have a first and priority claim on all
Fund Building
Receipts in the Master Bond Fund in parity with all other holders of the Bonds,
provided that
such claim may be subordinated to the provider of any Credit Agreement for any
of the Bonds.
K. To the extent that Fund Building Receipts in
the Master
Bond Fund are not otherwise needed to satisfy the requirements of this Act and
the instruments
authorizing the issuance of the Bonds, such monies shall be used by the
Department, in such
amounts as determined by the Director to do any one or a combination of the following:
L. The Director shall determine the method of sale, type of bond, bond
form,
redemption provisions and other terms of the Bonds that, in the Director's
judgment, best achieve
the purposes of this Act and effect the borrowing at the lowest practicable
cost, provided that
those determinations are not inconsistent with this Act or other applicable
legal requirements.
Those determinations shall be set forth in a document entitled "Bond Sale
Order"
acceptable, in
form and substance, to the attorney or attorneys acting as bond counsel for the
Bonds in
connection with the rendering of opinions necessary for the issuance of the
Bonds and executed
by the Director.


(Source: P.A. 96-30, eff. 6-30-09; 97-621, eff. 11-18-11.)
 
(30 ILCS 440/5)
Sec. 5. Bond Proceeds.
A. The proceeds of any Bonds issued pursuant to this Act, including
investment
income thereon, shall be held in trust in the Master Bond Fund for the
following
purpose and in
such amounts as determined by the Director:
B. Excess Bond proceeds remaining available after the payments and
deposits
required pursuant to Section 5A1 through 5A5 above have been made, may be used
in the
following manner as determined by the Director:
(Source: P.A. 93-634, eff. 1-1-04.)
 
(30 ILCS 440/6)
Sec. 6. Bonds Not A Pledge of the State.
A. Any Bonds issued under this Act, and any related Credit Agreement,
are not a
pledge of the faith and credit or moral obligation of the State or any State
agency or political
subdivision of the State. All Bonds, Bond Obligations and payment obligations
deriving from
any Credit Agreement are payable solely as provided in Section 4D.
B. Any Bonds and any related Credit Agreement issued under this Act
must contain
a conspicuous statement to the effect that:
(Source: P.A. 93-634, eff. 1-1-04.)
 
(30 ILCS 440/7)
Sec. 7. State Not to Impair Bond Obligations. While Bonds under this
Act are
outstanding, the State irrevocably pledges and covenants that it shall not:
A. Take action to limit or restrict the rights of the Department to
fulfill its
responsibilities to pay Bond Obligations, Bond Administrative Expenses or
otherwise
comply with instruments entered by the Department pertaining to the issuance of
the
Bonds;
B. In any way impair the rights and remedies of the holders of the
Bonds
until the Bonds are fully discharged; or
C. Reduce:
(Source: P.A. 97-621, eff. 11-18-11.)
 
(30 ILCS 440/8)
Sec. 8. Continuing appropriation. This Act shall constitute an
irrevocable and continuing appropriation of all amounts necessary in respect to
use of Fund Building Receipts and Bond Proceeds for purposes specified in this
Act, including, without limitation, for the provision for payment of principal
and interest on the Bonds and other amounts due in connection with the issuance
of the Bonds pursuant to this Act, to the fullest extent such appropriation is
required.


(Source: P.A. 95-331, eff. 8-21-07.)
 
(30 ILCS 440/9)
Sec. 9. Director's Supplemental Authority. The Director, on behalf
of the
Department, is authorized to enter into the covenants and agreements required
by
this Act, make
any determinations, calculations, rules or other promulgations required by this
Act and engage or
hire the necessary attorneys, financial advisors, consultants, verification
agents, trustees,
underwriters, remarketing agents and other professionals necessary to carry out
the purposes and
intent of this Act, unless otherwise expressly specified or required under this
Act.



(Source: P.A. 93-634, eff. 1-1-04.)
 
(30 ILCS 440/10)
Sec. 10. No Personal Liability. No director, officer
or employee of the
Department or the State shall be personally liable as a result of
exercising
the rights and
responsibilities granted under this Act.



(Source: P.A. 93-634, eff. 1-1-04.)
 
(30 ILCS 440/11)
Sec. 11. Omnibus Bonds Acts. With respect to instruments for the
payment of
money issued under this Act, 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 Omnibus Bond
Acts, (ii) that
the provisions of this Act are not a limitation on the supplementary authority
granted by the
Omnibus Bond Acts, and (iii) that instruments issued under this Act 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 Omnibus Bond
Acts.



(Source: P.A. 93-634, eff. 1-1-04.)
 
(30 ILCS 440/12)
Sec. 12. Mandatory Provisions. The provisions of this Act are
mandatory and not
directory.



(Source: P.A. 93-634, eff. 1-1-04.)
 
(30 ILCS 440/13)
Sec. 13. Severability and inseverability. If any provision of this
Act or its application
to any person or circumstance is held invalid, the invalidity of that provision
or application does
not affect other provisions or applications of the Act that can be given effect
without the invalid
provision or application, except that this Act is inseverable to the extent
that
if all or any
substantial and material part of Sections 1 through 12 are held invalid, then
the entire Act
(including both new and amendatory provisions) is invalid.



(Source: P.A. 93-634, eff. 1-1-04.)
 
(30 ILCS 440/13.1)
Sec. 13.1.
(Amendatory provisions; text omitted).



(Source: P.A. 93-634, eff. 1-1-04.)
 
(30 ILCS 440/13.2)
Sec. 13.2.
(Amendatory provisions; text omitted).



(Source: P.A. 93-634, eff. 1-1-04.)
 
(30 ILCS 440/13.3)
Sec. 13.3.
(Amendatory provisions; text omitted).



(Source: P.A. 93-634, eff. 1-1-04.)
 
(30 ILCS 440/13.4)
Sec. 13.4. The Unemployment Insurance Act is amended by
repealing Sections 1506.4 and 2104.



(Source: P.A. 93-634, eff. 1-1-04.)
 
(30 ILCS 440/14)
Sec. 14. Effective Date. This Act takes effect on January 1, 2004.


(Source: P.A. 93-634, eff. 1-1-04.)

Structure Illinois Compiled Statutes