Bill > SB1310

This bill amends the Western Illinois University Law to provide the Board of Trustees with expanded borrowing powers. Specifically, the bill allows the Board to borrow up to $2,000,000 for any lawful purpose from the WIU Foundation or any financial institution, with the requirement that the borrowed money be repaid within 5 years. The bill defines "financial institution" broadly to include various types of banks, savings and loan associations, credit unions, and federally chartered financial institutions operating in the state. The bill requires the Board's chairman, comptroller, or treasurer to execute a promissory note or similar debt instrument to document the borrowing. The legislation emphasizes that such borrowing is a lawful obligation of the University, payable from available revenues like tuition or state payments, and explicitly states that this does not constitute a state debt and cannot be enforced against the state. The Board must pass a resolution authorizing the borrowing, which must outline the need for the funds, specify the maximum amount to be borrowed, and establish an interest rate limit consistent with the Bond Authorization Act. This provision gives the University more financial flexibility to manage its short-term funding needs.

Education

https://www.ilga.gov/legislation/BillStatus.asp?DocNum=1310&GAID=18&DocTypeID=SB&SessionID=114&GA=104