093_HB0185

 
                                     LRB093 04132 MKM 04172 b

 1        AN ACT concerning loans to local governments.

 2        Be it enacted by the People of  the  State  of  Illinois,
 3    represented in the General Assembly:

 4        Section  5.  The State Treasurer Act is amended by adding
 5    Section 21 as follows:

 6        (15 ILCS 505/21 new)
 7        Sec. 21. Road grader revolving loan  program.  The  State
 8    Treasurer  is  the  administrator  of a road grader revolving
 9    loan program. The purpose is to provide  loans  to  units  of
10    local  government  for  the purchase of road graders that are
11    manufactured in the United States of America. For purposes of
12    this Section, "unit of  local  government"  means  a  county,
13    township,   or   municipality.  "Road  grader"  includes  any
14    machinery with a purchase price of $100,000 or more  that  is
15    used  for  the  construction  or  maintenance  of  roads. The
16    Treasurer shall determine eligibility for the loans based  on
17    need,  as  determined  by  the Treasurer.  The Treasurer must
18    give priority in making loans to units  of  local  government
19    without a road grader or with the oldest road grader.
20        The  loan  funds, subject to appropriation, shall be paid
21    out of the Road Grader Revolving Loan Fund, a special fund in
22    the State treasury. The Fund  shall  consist  of  any  moneys
23    transferred  into  or appropriated to the Fund as well as all
24    repayments of loans made under this Section. The  Fund  shall
25    be  used  for  loans to units of local government to purchase
26    road graders and for no other purpose. All interest earned on
27    moneys in the Fund shall be deposited into the Fund.
28        The annual rate of interest on the loan is 1%.
29        The aggregate outstanding principal balance of  loans  to
30    any  one  unit  of  local government for the purchase of road
31    graders may not exceed $350,000. The repayment period for the
 
                            -2-      LRB093 04132 MKM 04172 b
 1    loan may not exceed 15 years. The unit  of  local  government
 2    shall  repay  each  year  at least 5% of the principal amount
 3    borrowed or the remaining balance of the loan,  whichever  is
 4    less.  All repayments of loans, including any interest, shall
 5    be deposited into the Road Grader Revolving Loan Fund.
 6        The Treasurer must adopt rules to administer the program.

 7        Section 10.  The State Finance Act is amended  by  adding
 8    Section 5.595 as follows:

 9        (30 ILCS 105/5.595 new)
10        Sec. 5.595.  The Road Grader Revolving Loan Fund.