Full Text of SB0388 96th General Assembly
SB0388sam001 96TH GENERAL ASSEMBLY
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Sen. A. J. Wilhelmi
Filed: 3/15/2010
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| AMENDMENT TO SENATE BILL 388
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| AMENDMENT NO. ______. Amend Senate Bill 388 by replacing | 3 |
| everything after the enacting clause with the following:
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| "Section 5. The Illinois Finance Authority Act is amended | 5 |
| by changing Section 825-90 as follows: | 6 |
| (20 ILCS 3501/825-90) | 7 |
| Sec. 825-90. Illinois Power Agency Bonds.
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| (a) In this Section:
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| "Agency" means the Illinois Power Agency. | 10 |
| "Agency loan agreement" means any agreement pursuant to | 11 |
| which the Illinois Finance Authority agrees to loan the | 12 |
| proceeds of its revenue bonds issued with respect to a specific | 13 |
| Illinois Power Agency project to the Illinois Power Agency upon | 14 |
| terms providing for loan repayment installments at least | 15 |
| sufficient to pay when due all principal of, interest and | 16 |
| premium, if any, on any revenue bonds of the Authority, if any, |
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| issued with respect to the Illinois Power Agency project, and | 2 |
| providing for maintenance, insurance, and other matters as may | 3 |
| be deemed desirable by the Authority.
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| "Authority" means the Illinois Finance Authority. | 5 |
| "Director" means the Director of the Illinois Power Agency. | 6 |
| "Facility" means an electric generating unit or a | 7 |
| co-generating unit that produces electricity along with | 8 |
| related equipment necessary to connect the facility to an | 9 |
| electric transmission or distribution system. | 10 |
| "Governmental aggregator" means one or more units of local | 11 |
| government that individually or collectively procures | 12 |
| electricity to serve residential retail electrical loads | 13 |
| located within its or their jurisdiction. | 14 |
| "Local government" means a unit of local government as | 15 |
| defined in Section 1 of Article VII of the Illinois | 16 |
| Constitution of 1970. | 17 |
| "Project" means any project as defined in the Illinois | 18 |
| Power Agency Act. | 19 |
| "Real property" means any interest in land, together with | 20 |
| all structures, fixtures, and improvements thereon, including | 21 |
| lands under water and riparian rights, any easements, | 22 |
| covenants, licenses, leases, rights-of-way, uses, and other | 23 |
| interests, together with any liens, judgments, mortgages, or | 24 |
| other claims or security interests related to real property. | 25 |
| "Revenue bond" means any bond, note, or other evidence of | 26 |
| indebtedness issued by the Illinois Finance Authority on behalf |
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| of the Illinois Power Agency, the principal and interest of | 2 |
| which is payable solely from revenues or income derived from | 3 |
| any project or activity of the Agency. | 4 |
| (b) Powers and duties; Illinois Power Agency Program. The | 5 |
| Authority has the power: | 6 |
| (1) To accept from time to time pursuant to an Agency | 7 |
| loan agreement any pledge or a pledge agreement by the | 8 |
| Agency subject to the requirements and limitations of the | 9 |
| Illinois Power Agency Act. | 10 |
| (2) To issue revenue bonds in one or more series | 11 |
| pursuant to one or more resolutions of the Authority to | 12 |
| loan funds to the Agency pursuant to one or more Agency | 13 |
| loan agreements meeting the requirements of the Illinois | 14 |
| Power Agency Act and providing for the payment of any | 15 |
| interest deemed necessary on those revenue bonds, paying | 16 |
| for the cost of issuance of those revenue bonds, providing | 17 |
| for the payment of the cost of any guarantees, letters of | 18 |
| credit, insurance contracts or other similar credit | 19 |
| support or liquidity instruments, or providing for the | 20 |
| funding of any reserves deemed necessary in connection with | 21 |
| those revenue bonds and refunding or advance refunding of | 22 |
| any such revenue bonds and the interest and any premium | 23 |
| thereon, pursuant to this Act. Authority for the agreements | 24 |
| shall conform to the requirements of the Illinois Power | 25 |
| Agency Act. The Authority may issue up to $4,000,000,000 | 26 |
| aggregate principal amount of revenue bonds, the net |
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| proceeds of which shall be loaned to the Agency pursuant to | 2 |
| one or more Agency loan agreements. No revenue bonds issued | 3 |
| to refund or advance refund revenue bonds issued under this | 4 |
| Section may mature later than the longest maturity date of | 5 |
| the series of bonds being refunded. After the aggregate | 6 |
| original principal amount of revenue bonds authorized in | 7 |
| this Section has been issued, the payment of any principal | 8 |
| amount of those revenue bonds does not authorize the | 9 |
| issuance of additional revenue bonds (except refunding | 10 |
| revenue bonds). Revenue refunding bonds may be issued under | 11 |
| this Section to refund or advance refund revenue bonds | 12 |
| issued under this Section. Any revenue refunding bond shall | 13 |
| mature no later than 40 years after the original issuance | 14 |
| of capital improvement revenue bonds that financed the | 15 |
| project. Such revenue bond authorization is in addition to | 16 |
| any other bonds authorized in this Act. All bonds issued on | 17 |
| behalf of the Agency must be issued by the Authority and | 18 |
| must be revenue bonds. These revenue bonds may be taxable | 19 |
| or tax-exempt. | 20 |
| (3) To provide for the funding of any reserves or other | 21 |
| funds or accounts deemed necessary by the Authority on | 22 |
| behalf of the Agency in connection with its issuance of | 23 |
| Agency revenue bonds. | 24 |
| (4) To accept the pledge of any Agency revenue, | 25 |
| including any payments thereon, and any other property or | 26 |
| funds of the Agency or funds made available to the |
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| Authority through the applicable Agency loan agreement | 2 |
| with the Agency that may be applied to such purpose, as | 3 |
| security for any revenue bonds or any guarantees, letters | 4 |
| of credit, insurance contracts, or similar credit support | 5 |
| or liquidity instruments securing the revenue bonds. | 6 |
| (5) To enter into agreements or contracts with third | 7 |
| parties, whether public or private, including without | 8 |
| limitation the United States of America, the State, or any | 9 |
| department or agency thereof, to obtain any grants, loans, | 10 |
| or guarantees that are deemed necessary or desirable by the | 11 |
| Authority. Any such guarantee, agreement, or contract may | 12 |
| contain terms and provisions necessary or desirable in | 13 |
| connection with the program, subject to the requirements | 14 |
| established by this Article. | 15 |
| (6) To charge reasonable fees to defray the cost of | 16 |
| obtaining letters of credit, insurance contracts, or other | 17 |
| similar documents, and to charge such other reasonable fees | 18 |
| to defray the cost of trustees, depositories, paying | 19 |
| agents, legal counsel, bond registrars, escrow agents, and | 20 |
| other administrative expenses. Any such fees shall be | 21 |
| payable by the Agency, in such amounts and at such times as | 22 |
| the Authority shall determine. | 23 |
| (7) To obtain and maintain guarantees, letters of | 24 |
| credit, insurance contracts, or similar credit support or | 25 |
| liquidity instruments that are deemed necessary or | 26 |
| desirable in connection with any revenue bonds or other |
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| obligations of the Authority for any Agency revenue bonds. | 2 |
| (8) To provide technical assistance, at the request of | 3 |
| the Agency, with respect to the financing or refinancing | 4 |
| for any public purpose. | 5 |
| (9) To sell, transfer, or otherwise defease revenue | 6 |
| bonds issued on behalf of the Agency at the request and | 7 |
| authorization of the Agency. | 8 |
| (10) To enter into agreements or contracts with any | 9 |
| person necessary or appropriate to place the payment | 10 |
| obligations of the Agency relating to revenue bonds in | 11 |
| whole or in part on any interest rate basis, cash flow | 12 |
| basis, or other basis desired by the Authority, including | 13 |
| without limitation agreements or contracts commonly known | 14 |
| as "interest rate swap agreements", "forward payment | 15 |
| conversion agreements", and "futures", or agreements or | 16 |
| contracts to exchange cash flows or a series of payments, | 17 |
| or agreements or contracts, including without limitation | 18 |
| agreements or contracts commonly known as "options", | 19 |
| "puts" or "calls", to hedge payment, rate spread, or | 20 |
| similar exposure; provided, that any such agreement or | 21 |
| contract shall not constitute an obligation for borrowed | 22 |
| money, and shall not be taken into account under Section | 23 |
| 845-5 of this Act or any other debt limit of the Authority | 24 |
| or the State of Illinois. | 25 |
| (11) To make and enter into all other agreements and | 26 |
| contracts and execute all instruments necessary or |
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| incidental to performance of its duties and the execution | 2 |
| of its powers under this Article. | 3 |
| (12) To contract for and finance the costs of audits | 4 |
| and to contract for and finance the cost of project | 5 |
| monitoring. Any such contract shall be executed only after | 6 |
| it has been jointly negotiated by the Authority and the | 7 |
| Agency. | 8 |
| (13) To exercise such other powers as are necessary or | 9 |
| incidental to the foregoing.
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| (c) Illinois Power Agency participation. The Agency is | 11 |
| authorized to voluntarily participate in this program as | 12 |
| described in the Illinois Power Agency Act. The Authority may | 13 |
| issue revenue bonds on behalf of the Agency pursuant to an | 14 |
| Agency loan agreement entered into by the parties as set forth | 15 |
| in the Illinois Power Agency Act. Any proceeds from the sale of | 16 |
| those revenue bonds shall be deposited into the Illinois Power | 17 |
| Agency Facilities Fund to be used by the Agency for the | 18 |
| purposes set forth in the Illinois Power Agency Act. | 19 |
| (d) Pledge of revenues by the Agency. Any pledge of | 20 |
| revenues or other moneys made by the Agency shall be binding | 21 |
| from the time the pledge is made. Revenues and other moneys so | 22 |
| pledged shall be held in the Illinois Power Agency Facilities | 23 |
| Fund, Illinois Power Agency Debt Service Fund, or other funds | 24 |
| as directed by the Agency loan agreement. Revenues or other | 25 |
| moneys so pledged and thereafter received by the State | 26 |
| Treasurer shall immediately be subject to the lien of the |
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| pledge without any physical delivery thereof or further act, | 2 |
| and the lien of any pledge shall be binding against all parties | 3 |
| having claims of any kind of tort, contract, or otherwise | 4 |
| against the Authority, irrespective of whether the parties have | 5 |
| notice thereof. Neither the resolution nor any other instrument | 6 |
| by which a pledge is created need be filed or recorded except | 7 |
| in the records of the Authority. The State pledges to and | 8 |
| agrees with the holders of revenue bonds, and the beneficial | 9 |
| owners of the revenue bonds issued on behalf of the Agency, | 10 |
| that the State shall not limit or restrict the rights hereby | 11 |
| vested in the Authority to purchase, acquire, hold, sell, or | 12 |
| defease revenue bonds or other investments or to establish and | 13 |
| collect such fees or other charges as may be convenient or | 14 |
| necessary to produce sufficient revenues to meet the expenses | 15 |
| of operation of the Authority, and to fulfill the terms of any | 16 |
| agreement made with the holders of the revenue bonds issued by | 17 |
| the Authority on behalf of the Agency or in any way impair the | 18 |
| rights or remedies of the holders of those revenue bonds or the | 19 |
| beneficial owners of the revenue bonds until those revenue | 20 |
| bonds are fully paid and discharged or provision for their | 21 |
| payment has been made. The revenue bonds shall not be a debt of | 22 |
| the State, the Authority, any political subdivision thereof | 23 |
| (other than the Agency to the extent provided therein), any | 24 |
| governmental aggregator as defined in the Illinois Power Agency | 25 |
| Act, or any local government, and neither the State, the | 26 |
| Authority, any political subdivision thereof (other than the |
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| Agency to the extent provided therein), any governmental | 2 |
| aggregator, nor any local government shall be liable thereon. | 3 |
| The Authority shall not have the power to pledge the credit, | 4 |
| the revenues, or the taxing power of the State, any political | 5 |
| subdivision thereof (other than the Agency to the extent | 6 |
| provided in the Agency loan agreement relating to the revenue | 7 |
| bonds in question), any governmental aggregator, or of any | 8 |
| local government, and neither the credit, the revenues, nor the | 9 |
| taxing power of the State, any political subdivision thereof | 10 |
| (other than the Agency to the extent provided in the Agency | 11 |
| loan agreement relating to the revenue bonds in question), any | 12 |
| governmental aggregator, or of any local government shall be, | 13 |
| or shall be deemed to be, pledged to the payment of any revenue | 14 |
| bonds, or obligations of the Agency. | 15 |
| (e) Exemption from taxation. The creation of the Illinois | 16 |
| Power Agency is in all respects for the benefit of the people | 17 |
| of Illinois and for the improvement of their health, safety, | 18 |
| welfare, comfort, and security, and its purposes are public | 19 |
| purposes. In consideration thereof, the revenue bonds issued on | 20 |
| behalf of the Agency pursuant to this Act and the income from | 21 |
| these revenue bonds may be free from all taxation by the State | 22 |
| or its political subdivisions, except for estate, transfer, and | 23 |
| inheritance taxes. The exemption from taxation provided by the | 24 |
| preceding sentence shall apply to the income on any revenue | 25 |
| bonds issued on behalf of the Agency only if the Authority with | 26 |
| concurrence of the Agency in its sole judgment determines that |
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| the exemption enhances the marketability of the revenue bonds | 2 |
| or reduces the interest rates that would otherwise be borne by | 3 |
| the revenue bonds and that the project for which the revenue | 4 |
| bonds will be issued will be owned by the Agency or another | 5 |
| governmental entity and that the project is used for public | 6 |
| consumption. For purposes of Section 250 of the Illinois Income | 7 |
| Tax Act, the exemption of the Agency shall terminate after all | 8 |
| of the revenue bonds have been paid. The amount of the income | 9 |
| that shall be added and then subtracted on the Illinois income | 10 |
| tax return of a taxpayer, subject to Section 203 of the | 11 |
| Illinois Income Tax Act, from federal adjusted gross income or | 12 |
| federal taxable income in computing Illinois base income shall | 13 |
| be the interest net of any bond premium amortization.
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| (Source: P.A. 95-481, eff. 8-28-07; 95-876, eff. 8-21-08.) | 15 |
| Section 10. The Illinois Power Agency Act is amended by | 16 |
| changing Sections 1-20, 1-45, and 1-57 as follows: | 17 |
| (20 ILCS 3855/1-20)
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| Sec. 1-20. General powers of the Agency. | 19 |
| (a) The Agency is authorized to do each of the following: | 20 |
| (1) Develop electricity procurement plans to ensure | 21 |
| adequate, reliable, affordable, efficient, and | 22 |
| environmentally sustainable electric service at the lowest | 23 |
| total cost over time, taking into account any benefits of | 24 |
| price stability, for electric utilities that on December |
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| 31, 2005 provided electric service to at least 100,000 | 2 |
| customers in Illinois. The procurement plans shall be | 3 |
| updated on an annual basis and shall include electricity | 4 |
| generated from renewable resources sufficient to achieve | 5 |
| the standards specified in this Act. | 6 |
| (2) Conduct competitive procurement processes to | 7 |
| procure the supply resources identified in the procurement | 8 |
| plan, pursuant to Section 16-111.5 of the Public Utilities | 9 |
| Act. | 10 |
| (3) Develop electric generation and co-generation | 11 |
| facilities that use indigenous coal or renewable | 12 |
| resources, or both, financed with bonds issued by the | 13 |
| Illinois Finance Authority. | 14 |
| (4) If an electric generation facility is owned and | 15 |
| operated by the Agency, then supply Supply electricity from | 16 |
| the facility Agency's facilities at cost to one or more of | 17 |
| the following: municipal electric systems, governmental | 18 |
| aggregators, or rural electric cooperatives in Illinois. | 19 |
| (b) Except as otherwise limited by this Act, the Agency has | 20 |
| all of the powers necessary or convenient to carry out the | 21 |
| purposes and provisions of this Act, including without | 22 |
| limitation, each of the following: | 23 |
| (1) To have a corporate seal, and to alter that seal at | 24 |
| pleasure, and to use it by causing it or a facsimile to be | 25 |
| affixed or impressed or reproduced in any other manner. | 26 |
| (2) To use the services of the Illinois Finance |
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| Authority necessary to carry out the Agency's purposes. | 2 |
| (3) To negotiate and enter into loan agreements and | 3 |
| other agreements with the Illinois Finance Authority. | 4 |
| (4) To obtain and employ personnel and hire consultants | 5 |
| that are necessary to fulfill the Agency's purposes, and to | 6 |
| make expenditures for that purpose within the | 7 |
| appropriations for that purpose. | 8 |
| (5) To purchase, receive, take by grant, gift, devise, | 9 |
| bequest, or otherwise, lease, or otherwise acquire, own, | 10 |
| hold, improve, employ, use, and otherwise deal in and with, | 11 |
| real or personal property whether tangible or intangible, | 12 |
| or any interest therein, within the State. | 13 |
| (6) To acquire real or personal property, whether | 14 |
| tangible or intangible, including without limitation | 15 |
| property rights, interests in property, franchises, | 16 |
| obligations, contracts, and debt and equity securities, | 17 |
| and to do so by the exercise of the power of eminent domain | 18 |
| in accordance with Section 1-21; except that any real | 19 |
| property acquired by the exercise of the power of eminent | 20 |
| domain must be located within the State. | 21 |
| (7) To sell, convey, lease, exchange, transfer, | 22 |
| abandon, or otherwise dispose of, or mortgage, pledge, or | 23 |
| create a security interest in, any of its assets, | 24 |
| properties, or any interest therein, wherever situated. | 25 |
| (8) To purchase, take, receive, subscribe for, or | 26 |
| otherwise acquire, hold, make a tender offer for, vote, |
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| employ, sell, lend, lease, exchange, transfer, or | 2 |
| otherwise dispose of, mortgage, pledge, or grant a security | 3 |
| interest in, use, and otherwise deal in and with, bonds and | 4 |
| other obligations, shares, or other securities (or | 5 |
| interests therein) issued by others, whether engaged in a | 6 |
| similar or different business or activity. | 7 |
| (9) To make and execute agreements, contracts, and | 8 |
| other instruments necessary or convenient in the exercise | 9 |
| of the powers and functions of the Agency under this Act, | 10 |
| including contracts with any person, local government, | 11 |
| State agency, or other entity; and all State agencies and | 12 |
| all local governments are authorized to enter into and do | 13 |
| all things necessary to perform any such agreement, | 14 |
| contract, or other instrument with the Agency. No such | 15 |
| agreement, contract, or other instrument shall exceed 40 | 16 |
| years. | 17 |
| (10) To lend money, invest and reinvest its funds in | 18 |
| accordance with the Public Funds Investment Act, and take | 19 |
| and hold real and personal property as security for the | 20 |
| payment of funds loaned or invested. | 21 |
| (11) To borrow money at such rate or rates of interest | 22 |
| as the Agency may determine, issue its notes, bonds, or | 23 |
| other obligations to evidence that indebtedness, and | 24 |
| secure any of its obligations by mortgage or pledge of its | 25 |
| real or personal property, machinery, equipment, | 26 |
| structures, fixtures, inventories, revenues, grants, and |
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| other funds as provided or any interest therein, wherever | 2 |
| situated. | 3 |
| (12) To enter into agreements with the Illinois Finance | 4 |
| Authority to issue bonds whether or not the income | 5 |
| therefrom is exempt from federal taxation. | 6 |
| (13) To procure insurance against any loss in | 7 |
| connection with its properties or operations in such amount | 8 |
| or amounts and from such insurers, including the federal | 9 |
| government, as it may deem necessary or desirable, and to | 10 |
| pay any premiums therefor. | 11 |
| (14) To negotiate and enter into agreements with | 12 |
| trustees or receivers appointed by United States | 13 |
| bankruptcy courts or federal district courts or in other | 14 |
| proceedings involving adjustment of debts and authorize | 15 |
| proceedings involving adjustment of debts and authorize | 16 |
| legal counsel for the Agency to appear in any such | 17 |
| proceedings. | 18 |
| (15) (Blank) To file a petition under Chapter 9 of | 19 |
| Title 11 of the United States Bankruptcy Code or take other | 20 |
| similar action for the adjustment of its debts . | 21 |
| (16) To enter into management agreements for the | 22 |
| operation of any of the property or facilities owned by the | 23 |
| Agency. | 24 |
| (17) To enter into an agreement to transfer and to | 25 |
| transfer any land, facilities, fixtures, or equipment of | 26 |
| the Agency to one or more municipal electric systems, |
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| governmental aggregators, or rural electric agencies or | 2 |
| cooperatives, for such consideration and upon such terms as | 3 |
| the Agency may determine to be in the best interest of the | 4 |
| citizens of Illinois. | 5 |
| (18) To enter upon any lands and within any building | 6 |
| whenever in its judgment it may be necessary for the | 7 |
| purpose of making surveys and examinations to accomplish | 8 |
| any purpose authorized by this Act. | 9 |
| (19) To maintain an office or offices at such place or | 10 |
| places in the State as it may determine. | 11 |
| (20) To request information, and to make any inquiry, | 12 |
| investigation, survey, or study that the Agency may deem | 13 |
| necessary to enable it effectively to carry out the | 14 |
| provisions of this Act. | 15 |
| (21) To accept and expend appropriations. | 16 |
| (22) To engage in any activity or operation that is | 17 |
| incidental to and in furtherance of efficient operation to | 18 |
| accomplish the Agency's purposes. | 19 |
| (23) To adopt, revise, amend, and repeal rules with | 20 |
| respect to its operations, properties, and facilities as | 21 |
| may be necessary or convenient to carry out the purposes of | 22 |
| this Act, subject to the provisions of the Illinois | 23 |
| Administrative Procedure Act and Sections 1-22 and 1-35 of | 24 |
| this Act. | 25 |
| (24) To establish and collect charges and fees as | 26 |
| described in this Act.
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| (25) To manage procurement of substitute natural gas | 2 |
| from a facility that meets the criteria specified in | 3 |
| subsection (a) of Section 1-58 1-56 of this Act, on terms | 4 |
| and conditions that may be approved by the Agency pursuant | 5 |
| to subsection (d) of Section 1-58 1-56 of this Act, to | 6 |
| support the operations of State agencies and local | 7 |
| governments that agree to such terms and conditions. This | 8 |
| procurement process is not subject to the Procurement Code. | 9 |
| (Source: P.A. 95-481, eff. 8-28-07; 96-784, eff. 8-28-09; | 10 |
| revised 10-13-09.) | 11 |
| (20 ILCS 3855/1-45)
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| Sec. 1-45. Illinois Power Agency Facilities Fund. | 13 |
| (a) The Illinois Power Agency Facilities Fund is created as | 14 |
| a special fund in the State treasury. | 15 |
| (b) The Illinois Power Agency Facilities Fund shall be | 16 |
| administered by the Agency for costs incurred in connection | 17 |
| with the development and construction of a facility by the | 18 |
| Agency as well as costs incurred in connection with the | 19 |
| operation and maintenance of an Agency facility. | 20 |
| (c) (Blank) All moneys used by the Agency from the Illinois | 21 |
| Power Agency Facilities Fund are subject to appropriation by | 22 |
| the General Assembly . | 23 |
| (d) (Blank) All disbursements from the Illinois Power | 24 |
| Agency Facilities Fund shall be made only upon warrants of the | 25 |
| State Comptroller drawn upon the State Treasurer as custodian |
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| of the Fund upon vouchers signed by the Director or by the | 2 |
| person or persons designated by the Director for that purpose. | 3 |
| The Comptroller is authorized to draw the warrant upon vouchers | 4 |
| so signed. The State Treasurer shall accept all warrants so | 5 |
| signed and shall be released from liability for all payments | 6 |
| made on those warrants .
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| (Source: P.A. 95-481, eff. 8-28-07.) | 8 |
| (20 ILCS 3855/1-57)
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| Sec. 1-57. Facility financing. | 10 |
| (a) The Agency shall have the power (1) to borrow from the | 11 |
| Authority, through one or more Agency loan agreements, the net | 12 |
| proceeds of revenue bonds for costs incurred in connection with | 13 |
| the development and construction of a facility, provided that | 14 |
| the stated maturity date of any of those revenue bonds shall | 15 |
| not exceed 40 years from their respective issuance dates, (2) | 16 |
| to accept prepayments from purchasers of electric energy from a | 17 |
| project and to apply the same to costs incurred in connection | 18 |
| with the development and construction of a facility, subject to | 19 |
| any obligation to refund the same under the circumstances | 20 |
| specified in the purchasers' contract for the purchase and sale | 21 |
| of electric energy from that project, (3) to enter into leases | 22 |
| or similar arrangements to finance the property constituting a | 23 |
| part of a project and associated costs incurred in connection | 24 |
| with the development and construction of a facility, provided | 25 |
| that the term of any such lease or similar arrangement shall |
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| not exceed 40 years from its inception, and (4) to enter into | 2 |
| agreements for the sale of revenue bonds that bear interest at | 3 |
| a rate or rates not exceeding the maximum rate permitted by the | 4 |
| Bond Authorization Act. All Agency loan agreements shall | 5 |
| include terms making the obligations thereunder subject to | 6 |
| redemption before maturity. | 7 |
| (b) The Agency may from time to time engage the services of | 8 |
| the Authority, attorneys, appraisers, architects, engineers, | 9 |
| accountants, credit analysts, bond underwriters, bond | 10 |
| trustees, credit enhancement providers, and other financial | 11 |
| professionals and consultants, if the Agency deems it | 12 |
| advisable. | 13 |
| (c) The Agency may pledge, as security for the payment of | 14 |
| its revenue bonds in respect of a project, (1) revenues derived | 15 |
| from the operation of the project in whole or in part, | 16 |
| including moneys derived from any power purchase agreements | 17 |
| that require the power purchaser to make payments whether or | 18 |
| not the project is operating or operable revenues derived from | 19 |
| the operation of the project in part or whole , (2) the real and | 20 |
| personal property, machinery, equipment, structures, fixtures, | 21 |
| and inventories directly associated with the project, (3) | 22 |
| grants or other revenues or taxes expected to be received by | 23 |
| the Agency directly linked to the project, (4) payments to be | 24 |
| made by another governmental unit or other entity pursuant to a | 25 |
| service, user, or other similar agreement with that | 26 |
| governmental unit or other entity that is a result of the |
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| project, (5) any other revenues or moneys deposited or to be | 2 |
| deposited directly linked to the project, (6) all design, | 3 |
| engineering, procurement, construction, installation, | 4 |
| management, and operation agreements associated with the | 5 |
| project, (7) any reserve or debt service funds created under | 6 |
| the agreements governing the indebtedness, (8) the Illinois | 7 |
| Power Agency Facilities Fund or the Illinois Power Agency Debt | 8 |
| Service Fund, (9) moneys derived from any power purchase | 9 |
| agreements or arrangements, or (10) (9) any combination | 10 |
| thereof. Any such pledge shall be authorized in a writing, | 11 |
| signed by the Director of the Agency, and then signed by the | 12 |
| Governor of Illinois. At no time shall the funds contained in | 13 |
| the Illinois Power Agency Trust Fund be pledged or used in any | 14 |
| way to pay for the indebtedness of the Agency. The Director | 15 |
| shall not authorize the issuance or grant of any pledge until | 16 |
| he or she has certified that any associated project or proposed | 17 |
| project is or will be in full compliance with Sections 1-85 | 18 |
| and 1-86 of this Act. The certification shall be duly attached | 19 |
| or referenced in the agreements reflecting the pledge. Any such | 20 |
| pledge made by the Agency shall be valid and binding from the | 21 |
| time the pledge is made. The revenues, property, or funds that | 22 |
| are pledged and thereafter received by the Agency shall | 23 |
| immediately be subject to the lien of the pledge without any | 24 |
| physical delivery thereof or further act; and, subject only to | 25 |
| the provisions of prior liens, the lien of the pledge shall be | 26 |
| valid and binding as against all parties having claims of any |
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| kind in tort, contract, or otherwise against the Agency | 2 |
| irrespective of whether the parties have notice thereof. All | 3 |
| bonds issued on behalf of the Agency must be issued by the | 4 |
| Authority and must be revenue bonds. These revenue bonds may be | 5 |
| taxable or tax-exempt. | 6 |
| (d) All indebtedness issued by or on behalf of the Agency, | 7 |
| including, without limitation, any revenue bonds issued by the | 8 |
| Authority on behalf of the Agency, shall not be a debt of the | 9 |
| State, the Authority, any political subdivision thereof (other | 10 |
| than the Agency to the extent provided in agreements governing | 11 |
| the indebtedness), any local government, any governmental | 12 |
| aggregator as defined in the this Act, or any local government, | 13 |
| and none of the State, the Authority, any political subdivision | 14 |
| thereof (other than the Agency to the extent provided in | 15 |
| agreements governing the indebtedness), any local government, | 16 |
| or any government aggregator shall be liable thereon. Neither | 17 |
| the Authority nor the Agency shall have the power to pledge the | 18 |
| credit, the revenues, or the taxing power of the State, any | 19 |
| political subdivision thereof (other than the Agency), any | 20 |
| governmental aggregator, or of any local government, and | 21 |
| neither the credit, the revenues, nor the taxing power of the | 22 |
| State, any political subdivision thereof (other than the | 23 |
| Agency), any governmental aggregator, or any local government | 24 |
| shall be, or shall be deemed to be, pledged to the payment of | 25 |
| any revenue bonds, notes, or other obligations of the Agency. | 26 |
| In addition, the agreements governing any issue of indebtedness |
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| shall provide that all holders of that indebtedness, by virtue | 2 |
| of their acquisition thereof, have agreed to waive and release | 3 |
| all claims and causes of action against the State of Illinois | 4 |
| in respect of the indebtedness or any project associated | 5 |
| therewith based on any theory of law. However, the waiver shall | 6 |
| not prohibit the holders of indebtedness issued on behalf of | 7 |
| the Agency from filing any cause of action against or | 8 |
| recovering damages from the Agency, recovering from any | 9 |
| property or funds pledged to secure the indebtedness, or | 10 |
| recovering from any property or funds to which the Agency holds | 11 |
| title, provided the property or funds are directly associated | 12 |
| with the project for which the indebtedness was specifically | 13 |
| issued. Each evidence of indebtedness of the Agency, including | 14 |
| the revenue bonds issued by the Authority on behalf of the | 15 |
| Agency, shall contain a clear and explicit statement of the | 16 |
| provisions of this Section. | 17 |
| (e) The Agency may from time to time enter into an | 18 |
| agreement or agreements to defease indebtedness issued on its | 19 |
| behalf or to refund, at maturity, at a redemption date or in | 20 |
| advance of either, any indebtedness issued on its behalf or | 21 |
| pursuant to redemption provisions or at any time before | 22 |
| maturity. All such refunding indebtedness shall be subject to | 23 |
| the requirements set forth in subsections (a), (c), and (d) of | 24 |
| this Section. Any refunding bond shall mature no later than 40 | 25 |
| years after the original issuance of capital improvements bonds | 26 |
| that financed the project. No revenue bonds issued to refund or |
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| advance refund revenue bonds issued under this Section may | 2 |
| mature later than the longest maturity date of the series of | 3 |
| bonds being refunded. After the aggregate original principal | 4 |
| amount of revenue bonds authorized in this Section has been | 5 |
| issued, the payment of any principal amount of those revenue | 6 |
| bonds does not authorize the issuance of additional revenue | 7 |
| bonds (except refunding revenue bonds). | 8 |
| (f) If the Agency fails to pay the principal of, interest, | 9 |
| or premium, if any, on any indebtedness as the same becomes | 10 |
| due, a civil action to compel payment may be instituted in the | 11 |
| appropriate circuit court by the holder or holders of the | 12 |
| indebtedness on which the default of payment exists or by any | 13 |
| administrative agent, collateral agent, or indenture trustee | 14 |
| acting on behalf of those holders. Delivery of a summons and a | 15 |
| copy of the complaint to the Director of the Agency shall | 16 |
| constitute sufficient service to give the circuit court | 17 |
| jurisdiction over the subject matter of the suit and | 18 |
| jurisdiction over the Agency and its officers named as | 19 |
| defendants for the purpose of compelling that payment. Any | 20 |
| case, controversy, or cause of action concerning the validity | 21 |
| of this Act shall relate to the revenue of the Agency. Any such | 22 |
| claims and related proceedings are subject in all respects to | 23 |
| the provisions of subsection (d) of this Section. The State of | 24 |
| Illinois shall not be liable or in any other way financially | 25 |
| responsible for any indebtedness issued by or on behalf of the | 26 |
| Agency or the performance or non-performance of any covenants |
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| associated with any such indebtedness. The foregoing statement | 2 |
| shall not prohibit the holders of any indebtedness issued on | 3 |
| behalf of the Agency from filing any cause of action against or | 4 |
| recovering damages from the Agency recovering from any property | 5 |
| pledged to secure that indebtedness or recovering from any | 6 |
| property or funds to which the Agency holds title provided such | 7 |
| property or funds are directly associated with the project for | 8 |
| which the indebtedness is specifically issued. | 9 |
| (g) Upon each delivery of the revenue bonds authorized to | 10 |
| be issued by the Authority under this Act, the Agency shall | 11 |
| compute and certify to the State Comptroller the total amount | 12 |
| of principal of and interest on the Agency loan agreement | 13 |
| supporting the revenue bonds issued that will be payable in | 14 |
| order to retire those revenue bonds and the amount of principal | 15 |
| of and interest on the Agency loan agreement that will be | 16 |
| payable on each payment date during the then current and each | 17 |
| succeeding fiscal year. As soon as possible after the first day | 18 |
| of each month, beginning on the date set forth in the Agency | 19 |
| loan agreement where that date specifies when the Agency shall | 20 |
| begin setting aside revenues and other moneys for repayment of | 21 |
| the revenue bonds per the agreed to schedule, the Agency shall | 22 |
| certify to the Comptroller and the Comptroller shall order | 23 |
| transferred and the Treasurer shall transfer from the Illinois | 24 |
| Power Agency Facilities Fund to the Illinois Power Agency Debt | 25 |
| Service Fund for each month remaining in the State fiscal year | 26 |
| a sum of money, appropriated for that purpose, equal to the |
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| result of the amount of principal of and interest on those | 2 |
| revenue bonds payable on the next payment date divided by the | 3 |
| number of full calendar months between the date of those | 4 |
| revenue bonds, and the first such payment date, and thereafter | 5 |
| divided by the number of months between each succeeding payment | 6 |
| date after the first. The Comptroller is authorized and | 7 |
| directed to draw warrants on the State Treasurer from the | 8 |
| Illinois Power Agency Facilities Fund and the Illinois Power | 9 |
| Agency Debt Service Fund for the amount of all payments of | 10 |
| principal and interest on the Agency loan agreement relating to | 11 |
| the Authority revenue bonds issued under this Act. The State | 12 |
| Treasurer or the State Comptroller shall deposit or cause to be | 13 |
| deposited any amount of grants or other revenues expected to be | 14 |
| received by the Agency that the Agency has pledged to the | 15 |
| payment of revenue bonds directly into the Illinois Power | 16 |
| Agency Debt Service Fund. | 17 |
| (h) The State of Illinois pledges to and agrees with the | 18 |
| holders of the bonds and notes of the Agency and the Illinois | 19 |
| Finance Authority issued pursuant to this Act or the Illinois | 20 |
| Finance Authority Act that the State will not limit or alter | 21 |
| the rights and powers vested in the Agency or the Authority by | 22 |
| this Act so as to impair the terms of any contract made by the | 23 |
| Agency with such holders or in any way impair the rights and | 24 |
| remedies of such holders until such bonds and notes, together | 25 |
| with interest thereon, with interest on any unpaid installments | 26 |
| of interest, and all costs and expenses in connection with any |
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| action or proceedings by or on behalf of such holders, are | 2 |
| fully met and discharged. In addition, the State pledges to and | 3 |
| agrees with the holders of the bonds and notes of the Agency | 4 |
| and the Authority issued pursuant to this Act that the State | 5 |
| will not limit or alter the basis on which State funds are to | 6 |
| be allocated, deposited, and paid to the Agency as provided in | 7 |
| this Act, or the use of such funds, so as to impair the terms of | 8 |
| any such contract. The Authority and the Agency are authorized | 9 |
| to include these pledges and agreements of the State in any | 10 |
| contract with the holders of bonds or notes issued pursuant to | 11 |
| this Section.
| 12 |
| (Source: P.A. 95-481, eff. 8-28-07.)
| 13 |
| Section 99. Effective date. This Act takes effect upon | 14 |
| becoming law.".
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