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1 AN ACT concerning finance.
2 Be it enacted by the People of the State of Illinois,
3 represented in the General Assembly:
4 ARTICLE 801
5 GENERAL PROVISIONS
6 Section 801-1. Short Title. Articles 80 through 845 of
7 this Act may be cited as the Illinois Finance Authority Act.
8 References to "this Act" in Articles 801 through 845 are
9 references to the Illinois Finance Authority Act.
10 Section 801-5. Findings and declaration of policy. The
11 General Assembly hereby finds, determines and declares:
12 (a) that there are a number of existing State authorities
13 authorized to issue bonds to alleviate the conditions and
14 promote the objectives set forth below; and to provide a
15 stronger, better coordinated development effort, it is
16 determined to be in the interest of promoting the health,
17 safety, morals and general welfare of all the people of the
18 State to consolidate certain of such existing authorities
19 into one finance authority;
20 (b) that involuntary unemployment affects the health,
21 safety, morals and general welfare of the people of the State
22 of Illinois;
23 (c) that the economic burdens resulting from involuntary
24 unemployment fall in part upon the State in the form of
25 public assistance and reduced tax revenues, and in the event
26 the unemployed worker and his family migrate elsewhere to
27 find work, may also fall upon the municipalities and other
28 taxing districts within the areas of unemployment in the form
29 of reduced tax revenues, thereby endangering their financial
30 ability to support necessary governmental services for their
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1 remaining inhabitants;
2 (d) that a vigorous growing economy is the basic source
3 of job opportunities;
4 (e) that protection against involuntary unemployment, its
5 economic burdens and the spread of economic stagnation can
6 best be provided by promoting, attracting, stimulating and
7 revitalizing industry, manufacturing and commerce in the
8 State;
9 (f) that the State has a responsibility to help create a
10 favorable climate for new and improved job opportunities for
11 its citizens by encouraging the development of commercial
12 businesses and industrial and manufacturing plants within the
13 State;
14 (g) that increased availability of funds for construction
15 of new facilities and the expansion and improvement of
16 existing facilities for industrial, commercial and
17 manufacturing facilities will provide for new and continued
18 employment in the construction industry and alleviate the
19 burden of unemployment;
20 (h) that in the absence of direct governmental subsidies
21 the unaided operations of private enterprise do not provide
22 sufficient resources for residential construction,
23 rehabilitation, rental or purchase, and that support from
24 housing related commercial facilities is one means of
25 stimulating residential construction, rehabilitation, rental
26 and purchase;
27 (i) that it is in the public interest and the policy of
28 this State to foster and promote by all reasonable means the
29 provision of adequate capital markets and facilities for
30 borrowing money by units of local government, and for the
31 financing of their respective public improvements and other
32 governmental purposes within the State from proceeds of bonds
33 or notes issued by those governmental units; and to assist
34 local governmental units in fulfilling their needs for those
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1 purposes by use of creation of indebtedness;
2 (j) that it is in the public interest and the policy of
3 this State to the extent possible, to reduce the costs of
4 indebtedness to taxpayers and residents of this State and to
5 encourage continued investor interest in the purchase of
6 bonds or notes of governmental units as sound and preferred
7 securities for investment; and to encourage governmental
8 units to continue their independent undertakings of public
9 improvements and other governmental purposes and the
10 financing thereof, and to assist them in those activities by
11 making funds available at reduced interest costs for orderly
12 financing of those purposes, especially during periods of
13 restricted credit or money supply, and particularly for those
14 governmental units not otherwise able to borrow for those
15 purposes;
16 (k) that in this State the following conditions exist:
17 (i) an inadequate supply of funds at interest rates
18 sufficiently low to enable persons engaged in agriculture in
19 this State to pursue agricultural operations at present
20 levels; (ii) that such inability to pursue agricultural
21 operations lessens the supply of agricultural commodities
22 available to fulfill the needs of the citizens of this State;
23 (iii) that such inability to continue operations decreases
24 available employment in the agricultural sector of the State
25 and results in unemployment and its attendant problems; (iv)
26 that such conditions prevent the acquisition of an adequate
27 capital stock of farm equipment and machinery, much of which
28 is manufactured in this State, therefore impairing the
29 productivity of agricultural land and, further, causing
30 unemployment or lack of appropriate increase in employment in
31 such manufacturing; (v) that such conditions are conducive to
32 consolidation of acreage of agricultural land with fewer
33 individuals living and farming on the traditional family
34 farm; (vi) that these conditions result in a loss in
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1 population, unemployment and movement of persons from rural
2 to urban areas accompanied by added costs to communities for
3 creation of new public facilities and services; (vii) that
4 there have been recurrent shortages of funds for agricultural
5 purposes from private market sources at reasonable rates of
6 interest; (viii) that these shortages have made the sale and
7 purchase of agricultural land to family farmers a virtual
8 impossibility in many parts of the State; (ix) that the
9 ordinary operations of private enterprise have not in the
10 past corrected these conditions; and (x) that a stable supply
11 of adequate funds for agricultural financing is required to
12 encourage family farmers in an orderly and sustained manner
13 and to reduce the problems described above;
14 (l) that for the benefit of the people of the State of
15 Illinois, the conduct and increase of their commerce, the
16 protection and enhancement of their welfare, the development
17 of continued prosperity and the improvement of their health
18 and living conditions it is essential that all the people of
19 the State be given the fullest opportunity to learn and to
20 develop their intellectual and mental capacities and skills;
21 that to achieve these ends it is of the utmost importance
22 that private institutions of higher education within the
23 State be provided with appropriate additional means to assist
24 the people of the State in achieving the required levels of
25 learning and development of their intellectual and mental
26 capacities and skills and that cultural institutions within
27 the State be provided with appropriate additional means to
28 expand the services and resources which they offer for the
29 cultural, intellectual, scientific, educational and artistic
30 enrichment of the people of the State;
31 (m) that in order to foster civic and neighborhood pride,
32 citizens require access to facilities such as educational
33 institutions, recreation, parks and open spaces,
34 entertainment and sports, a reliable transportation network,
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1 cultural facilities and theaters and other facilities as
2 authorized by this Act, and that it is in the best interests
3 of the State to lower the costs of all such facilities by
4 providing financing through the State; and
5 (n) that to preserve and protect the health of the
6 citizens of the State, and lower the costs of health care,
7 that financing for health facilities should be provided
8 through the State; and it is hereby declared to be the policy
9 of the State, in the interest of promoting the health,
10 safety, morals and general welfare of all the people of the
11 State, to address the conditions noted above, to increase job
12 opportunities and to retain existing jobs in the State, by
13 making available through the Illinois Finance Authority,
14 hereinafter created, funds for the development, improvement
15 and creation of industrial, housing, local government,
16 educational, health, public purpose and other projects; to
17 issue its bonds and notes to make funds at reduced rates and
18 on more favorable terms for borrowing by local governmental
19 units through the purchase of the bonds or notes of the
20 governmental units; and to make or acquire loans for the
21 acquisition and development of agricultural facilities; to
22 provide financing for private institutions of higher
23 education, cultural institutions, health facilities and other
24 facilities and projects as authorized by this Act; and to
25 grant broad powers to the Illinois Finance Authority to
26 accomplish and to carry out these policies of the State which
27 are in the public interest of the State and of its taxpayers
28 and residents.
29 Section 801-10. Definitions. The following terms,
30 whenever used or referred to in this Act, shall have the
31 following meanings, except in such instances where the
32 context may clearly indicate otherwise:
33 (a) The term "Authority" means the Illinois Finance
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1 Authority created by this Act.
2 (b) The term "project" means an industrial project,
3 housing project, public purpose project, higher education
4 project, health facility project, cultural institution
5 project, agricultural facility or agribusiness, and "project"
6 may include any combination of one or more of the foregoing
7 undertaken jointly by any person with one or more other
8 persons, but "project" shall not include any facility used or
9 to be used for sectarian instruction or as a place of
10 religious worship nor any facility which is used or to be
11 used primarily in connection with any part of the program of
12 a school or department of divinity for any religious
13 denomination or the training of ministers, priests, rabbis or
14 other professional persons in the field of religion.
15 (c) The term "public purpose project" means any project
16 or facility including without limitation land, buildings,
17 structures, machinery, equipment and all other real and
18 personal property, which is authorized or required by law to
19 be acquired, constructed, improved, rehabilitated,
20 reconstructed, replaced or maintained by any unit of
21 government or any other lawful public purpose which is
22 authorized or required by law to be undertaken by any unit of
23 government.
24 (d) The term "industrial project" means the acquisition,
25 construction, refurbishment, creation, development or
26 redevelopment of any facility, equipment, machinery, real
27 property or personal property for use by any instrumentality
28 of the State or its political subdivisions, for use by any
29 person or institution, public or private, for profit or not
30 for profit, or for use in any trade or business including,
31 but not limited to, any industrial, manufacturing or
32 commercial enterprise and which is (1) a capital project
33 including but not limited to: (i) land and any rights
34 therein, one or more buildings, structures or other
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1 improvements, machinery and equipment, whether now existing
2 or hereafter acquired, and whether or not located on the same
3 site or sites; (ii) all appurtenances and facilities
4 incidental to the foregoing, including, but not limited to
5 utilities, access roads, railroad sidings, track, docking and
6 similar facilities, parking facilities, dockage, wharfage,
7 railroad roadbed, track, trestle, depot, terminal, switching
8 and signaling or related equipment, site preparation and
9 landscaping; and (iii) all non-capital costs and expenses
10 relating thereto or (2) any addition to, renovation,
11 rehabilitation or improvement of a capital project or (3) any
12 activity or undertaking which the Authority determines will
13 aid, assist or encourage economic growth, development or
14 redevelopment within the State or any area thereof, will
15 promote the expansion, retention or diversification of
16 employment opportunities within the State or any area thereof
17 or will aid in stabilizing or developing any industry or
18 economic sector of the State economy. The term "industrial
19 project" also means the production of motion pictures.
20 (e) The term "bond" or "bonds" shall include bonds, notes
21 (including bond, grant or revenue anticipation notes),
22 certificates and/or other evidences of indebtedness
23 representing an obligation to pay money, including refunding
24 bonds.
25 (f) The terms "lease agreement" and "loan agreement"
26 shall mean: (i) an agreement whereby a project acquired by
27 the Authority by purchase, gift or lease is leased to any
28 person, corporation or unit of local government which will
29 use or cause the project to be used as a project as
30 heretofore defined upon terms providing for lease rental
31 payments at least sufficient to pay when due all principal
32 of, interest and premium, if any, on any bonds of the
33 Authority issued with respect to such project, providing for
34 the maintenance, insuring and operation of the project on
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1 terms satisfactory to the Authority, providing for
2 disposition of the project upon termination of the lease
3 term, including purchase options or abandonment of the
4 premises, and such other terms as may be deemed desirable by
5 the Authority, or (ii) any agreement pursuant to which the
6 Authority agrees to loan the proceeds of its bonds issued
7 with respect to a project or other funds of the Authority to
8 any person which will use or cause the project to be used as
9 a project as heretofore defined upon terms providing for loan
10 repayment installments at least sufficient to pay when due
11 all principal of, interest and premium, if any, on any bonds
12 of the Authority, if any, issued with respect to the project,
13 and providing for maintenance, insurance and other matters as
14 may be deemed desirable by the Authority.
15 (g) The term "financial aid" means the expenditure of
16 Authority funds or funds provided by the Authority through
17 the issuance of its bonds, notes or other evidences of
18 indebtedness or from other sources for the development,
19 construction, acquisition or improvement of a project.
20 (h) The term "person" means an individual, corporation,
21 unit of government, business trust, estate, trust,
22 partnership or association, 2 or more persons having a joint
23 or common interest, or any other legal entity.
24 (i) The term "unit of government" means the federal
25 government, the State or unit of local government, a school
26 district, or any agency or instrumentality, office, officer,
27 department, division, bureau, commission, college or
28 university thereof.
29 (j) The term "health facility" means: (a) any public or
30 private institution, place, building, or agency required to
31 be licensed under the Hospital Licensing Act; (b) any public
32 or private institution, place, building, or agency required
33 to be licensed under the Nursing Home Care Act; (c) any
34 public or licensed private hospital as defined in the Mental
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1 Health and Developmental Disabilities Code; (d) any such
2 facility exempted from such licensure when the Director of
3 Public Health attests that such exempted facility meets the
4 statutory definition of a facility subject to licensure; (e)
5 any other public or private health service institution,
6 place, building, or agency which the Director of Public
7 Health attests is subject to certification by the Secretary,
8 U.S. Department of Health and Human Services under the Social
9 Security Act, as now or hereafter amended, or which the
10 Director of Public Health attests is subject to
11 standard-setting by a recognized public or voluntary
12 accrediting or standard-setting agency; (f) any public or
13 private institution, place, building or agency engaged in
14 providing one or more supporting services to a health
15 facility; (g) any public or private institution, place,
16 building or agency engaged in providing training in the
17 healing arts, including but not limited to schools of
18 medicine, dentistry, osteopathy, optometry, podiatry,
19 pharmacy or nursing, schools for the training of x-ray,
20 laboratory or other health care technicians and schools for
21 the training of para-professionals in the health care field;
22 (h) any public or private congregate, life or extended care
23 or elderly housing facility or any public or private home for
24 the aged or infirm, including, without limitation, any
25 Facility as defined in the Life Care Facilities Act; (i) any
26 public or private mental, emotional or physical
27 rehabilitation facility or any public or private educational,
28 counseling, or rehabilitation facility or home, for those
29 persons with a developmental disability, those who are
30 physically ill or disabled, the emotionally disturbed, those
31 persons with a mental illness or persons with learning or
32 similar disabilities or problems; (j) any public or private
33 alcohol, drug or substance abuse diagnosis, counseling
34 treatment or rehabilitation facility, (k) any public or
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1 private institution, place, building or agency licensed by
2 the Department of Children and Family Services or which is
3 not so licensed but which the Director of Children and Family
4 Services attests provides child care, child welfare or other
5 services of the type provided by facilities subject to such
6 licensure; (l) any public or private adoption agency or
7 facility; and (m) any public or private blood bank or blood
8 center. "Health facility" also means a public or private
9 structure or structures suitable primarily for use as a
10 laboratory, laundry, nurses or interns residence or other
11 housing or hotel facility used in whole or in part for staff,
12 employees or students and their families, patients or
13 relatives of patients admitted for treatment or care in a
14 health facility, or persons conducting business with a health
15 facility, physician's facility, surgicenter, administration
16 building, research facility, maintenance, storage or utility
17 facility and all structures or facilities related to any of
18 the foregoing or required or useful for the operation of a
19 health facility, including parking or other facilities or
20 other supporting service structures required or useful for
21 the orderly conduct of such health facility.
22 (k) The term "participating health institution" means a
23 private corporation or association or public entity of this
24 State, authorized by the laws of this State to provide or
25 operate a health facility as defined in this Act and which,
26 pursuant to the provisions of this Act, undertakes the
27 financing, construction or acquisition of a project or
28 undertakes the refunding or refinancing of obligations,
29 loans, indebtedness or advances as provided in this Act.
30 (l) The term "health facility project", means a specific
31 health facility work or improvement to be financed or
32 refinanced (including without limitation through
33 reimbursement of prior expenditures), acquired, constructed,
34 enlarged, remodeled, renovated, improved, furnished, or
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1 equipped, with funds provided in whole or in part hereunder,
2 any accounts receivable, working capital, liability or
3 insurance cost or operating expense financing or refinancing
4 program of a health facility with or involving funds provided
5 in whole or in part hereunder, or any combination thereof.
6 (m) The term "bond resolution" means the resolution or
7 resolutions authorizing the issuance of, or providing terms
8 and conditions related to, bonds issued under this Act and
9 includes, where appropriate, any trust agreement, trust
10 indenture, indenture of mortgage or deed of trust providing
11 terms and conditions for such bonds.
12 (n) The term "property" means any real, personal or mixed
13 property, whether tangible or intangible, or any interest
14 therein, including, without limitation, any real estate,
15 leasehold interests, appurtenances, buildings, easements,
16 equipment, furnishings, furniture, improvements, machinery,
17 rights of way, structures, accounts, contract rights or any
18 interest therein.
19 (o) The term "revenues" means, with respect to any
20 project, the rents, fees, charges, interest, principal
21 repayments, collections and other income or profit derived
22 therefrom.
23 (p) The term "higher education project" means, in the
24 case of a private institution of higher education, an
25 educational facility to be acquired, constructed, enlarged,
26 remodeled, renovated, improved, furnished, or equipped, or
27 any combination thereof.
28 (q) The term "cultural institution project" means, in the
29 case of a cultural institution, a cultural facility to be
30 acquired, constructed, enlarged, remodeled, renovated,
31 improved, furnished, or equipped, or any combination thereof.
32 (r) The term "educational facility" means any property
33 located within the State constructed or acquired before or
34 after the effective date of this Act, which is or will be, in
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1 whole or in part, suitable for the instruction, feeding,
2 recreation or housing of students, the conducting of research
3 or other work of a private institution of higher education,
4 the use by a private institution of higher education in
5 connection with any educational, research or related or
6 incidental activities then being or to be conducted by it, or
7 any combination of the foregoing, including, without
8 limitation, any such property suitable for use as or in
9 connection with any one or more of the following: an academic
10 facility, administrative facility, agricultural facility,
11 assembly hall, athletic facility, auditorium, boating
12 facility, campus, communication facility, computer facility,
13 continuing education facility, classroom, dining hall,
14 dormitory, exhibition hall, fire fighting facility, fire
15 prevention facility, food service and preparation facility,
16 gymnasium, greenhouse, health care facility, hospital,
17 housing, instructional facility, laboratory, library,
18 maintenance facility, medical facility, museum, offices,
19 parking area, physical education facility, recreational
20 facility, research facility, stadium, storage facility,
21 student union, study facility, theatre or utility. An
22 educational facility shall not include any property used or
23 to be used for sectarian instruction or study or as a place
24 for devotional activities or religious worship nor any
25 property which is used or to be used primarily in connection
26 with any part of the program of a school or department of
27 divinity for any religious denomination.
28 (s) The term "cultural facility" means any property
29 located within the State constructed or acquired before or
30 after the effective date of this Act, which is or will be, in
31 whole or in part, suitable for the particular purposes or
32 needs of a cultural institution, including, without
33 limitation, any such property suitable for use as or in
34 connection with any one or more of the following: an
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1 administrative facility, aquarium, assembly hall, auditorium,
2 botanical garden, exhibition hall, gallery, greenhouse,
3 library, museum, scientific laboratory, theater or zoological
4 facility, and shall also include, without limitation, books,
5 works of art or music, animal, plant or aquatic life or other
6 items for display, exhibition or performance. The term
7 "cultural facility" includes buildings on the National
8 Register of Historic Places which are owned or operated by
9 nonprofit entities. A cultural facility shall not include any
10 property used or to be used for sectarian instruction or
11 study or as a place for devotional activities or religious
12 worship nor any property which is used or to be used
13 primarily in connection with any part of the program of a
14 school or department of divinity for any religious
15 denomination.
16 (t) "Private institution of higher education" means a
17 not-for-profit educational institution which is not owned by
18 the State or any political subdivision, agency,
19 instrumentality, district or municipality thereof, which is
20 authorized by law to provide a program of education beyond
21 the high school level and which:
22 (1) Admits as regular students only individuals
23 having a certificate of graduation from a high school, or
24 the recognized equivalent of such a certificate;
25 (2) Provides an educational program for which it
26 awards a bachelor's degree, or provides an educational
27 program, admission into which is conditioned upon the
28 prior attainment of a bachelor's degree or its
29 equivalent, for which it awards a postgraduate degree, or
30 provides not less than a 2-year program which is
31 acceptable for full credit toward such a degree, or
32 offers a 2-year program in engineering, mathematics, or
33 the physical or biological sciences which is designed to
34 prepare the student to work as a technician and at a
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1 semiprofessional level in engineering, scientific, or
2 other technological fields which require the
3 understanding and application of basic engineering,
4 scientific, or mathematical principles or knowledge;
5 (3) Is accredited by a nationally recognized
6 accrediting agency or association or, if not so
7 accredited, is an institution whose credits are accepted,
8 on transfer, by not less than 3 institutions which are so
9 accredited, for credit on the same basis as if
10 transferred from an institution so accredited, and holds
11 an unrevoked certificate of approval under the Private
12 College Act from the Board of Higher Education, or is
13 qualified as a "degree granting institution" under the
14 Academic Degree Act; and
15 (4) Does not discriminate in the admission of
16 students on the basis of race, color or creed. "Private
17 institution of higher education" also includes any
18 "academic institution".
19 (u) The term "academic institution" means any
20 not-for-profit institution which is not owned by the State or
21 any political subdivision, agency, instrumentality, district
22 or municipality thereof, which institution engages in, or
23 facilitates academic, scientific, educational or professional
24 research or learning in a field or fields of study taught at
25 a private institution of higher education. Academic
26 institutions include, without limitation, libraries,
27 archives, academic, scientific, educational or professional
28 societies, institutions, associations or foundations having
29 such purposes. Academic institution does not include any
30 school or any institution primarily engaged in religious or
31 sectarian activities.
32 (v) The term "cultural institution" means any
33 not-for-profit institution which is not owned by the State or
34 any political subdivision, agency, instrumentality, district
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1 or municipality thereof, which institution engages in the
2 cultural, intellectual, scientific, educational or artistic
3 enrichment of the people of the State. Cultural institutions
4 include, without limitation, aquaria, botanical societies,
5 historical societies, libraries, museums, performing arts
6 associations or societies, scientific societies and
7 zoological societies. Cultural institution does not include
8 any institution primarily engaged in religious or sectarian
9 activities.
10 (w) The term "affiliate" means, with respect to financing
11 of an agricultural facility or an agribusiness, any lender,
12 any person, firm or corporation controlled by, or under
13 common control with, such lender, and any person, firm or
14 corporation controlling such lender.
15 (x) The term "agricultural facility" means land, any
16 building or other improvement thereon or thereto, and any
17 personal properties deemed necessary or suitable for use,
18 whether or not now in existence, in farming, ranching, the
19 production of agricultural commodities (including, without
20 limitation, the products of aquaculture, hydroponics and
21 silviculture) or the treating, processing or storing of such
22 agricultural commodities when such activities are customarily
23 engaged in by farmers as a part of farming.
24 (y) The term "lender" with respect to financing of an
25 agricultural facility or an agribusiness, means any federal
26 or State chartered bank, Federal Land Bank, Production Credit
27 Association, Bank for Cooperatives, federal or State
28 chartered savings and loan association or building and loan
29 association, Small Business Investment Company or any other
30 institution qualified within this State to originate and
31 service loans, including, but without limitation to,
32 insurance companies, credit unions and mortgage loan
33 companies. "Lender" also means a wholly owned subsidiary of a
34 manufacturer, seller or distributor of goods or services that
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1 makes loans to businesses or individuals, commonly known as a
2 "captive finance company".
3 (z) The term "agribusiness" means any sole
4 proprietorship, limited partnership, co-partnership, joint
5 venture, corporation or cooperative which operates or will
6 operate a facility located within the State of Illinois that
7 is related to the processing of agricultural commodities
8 (including, without limitation, the products of aquaculture,
9 hydroponics and silviculture) or the manufacturing,
10 production or construction of agricultural buildings,
11 structures, equipment, implements, and supplies, or any other
12 facilities or processes used in agricultural production.
13 Agribusiness includes but is not limited to the following:
14 (1) grain handling and processing, including grain
15 storage, drying, treatment, conditioning, mailing and
16 packaging;
17 (2) seed and feed grain development and processing;
18 (3) fruit and vegetable processing, including
19 preparation, canning and packaging;
20 (4) processing of livestock and livestock products,
21 dairy products, poultry and poultry products, fish or
22 apiarian products, including slaughter, shearing,
23 collecting, preparation, canning and packaging;
24 (5) fertilizer and agricultural chemical
25 manufacturing, processing, application and supplying;
26 (6) farm machinery, equipment and implement
27 manufacturing and supplying;
28 (7) manufacturing and supplying of agricultural
29 commodity processing machinery and equipment, including
30 machinery and equipment used in slaughter, treatment,
31 handling, collecting, preparation, canning or packaging
32 of agricultural commodities;
33 (8) farm building and farm structure manufacturing,
34 construction and supplying;
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1 (9) construction, manufacturing, implementation,
2 supplying or servicing of irrigation, drainage and soil
3 and water conservation devices or equipment;
4 (10) fuel processing and development facilities that
5 produce fuel from agricultural commodities or byproducts;
6 (11) facilities and equipment for processing and
7 packaging agricultural commodities specifically for
8 export;
9 (12) facilities and equipment for forestry product
10 processing and supplying, including sawmilling
11 operations, wood chip operations, timber harvesting
12 operations, and manufacturing of prefabricated buildings,
13 paper, furniture or other goods from forestry products;
14 (13) facilities and equipment for research and
15 development of products, processes and equipment for the
16 production, processing, preparation or packaging of
17 agricultural commodities and byproducts.
18 (aa) The term "asset" with respect to financing of any
19 agricultural facility or any agribusiness, means, but is not
20 limited to the following: cash crops or feed on hand;
21 livestock held for sale; breeding stock; marketable bonds and
22 securities; securities not readily marketable; accounts
23 receivable; notes receivable; cash invested in growing crops;
24 net cash value of life insurance; machinery and equipment;
25 cars and trucks; farm and other real estate including life
26 estates and personal residence; value of beneficial interests
27 in trusts; government payments or grants; and any other
28 assets.
29 (bb) The term "liability" with respect to financing of
30 any agricultural facility or any agribusiness shall include,
31 but not be limited to the following: accounts payable; notes
32 or other indebtedness owed to any source; taxes; rent;
33 amounts owed on real estate contracts or real estate
34 mortgages; judgments; accrued interest payable; and any other
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1 liability.
2 (cc) The term "Predecessor Authorities" means those
3 authorities as described in Section 845-75.
4 (dd) The term "housing project" means a specific work or
5 improvement undertaken to provide residential dwelling
6 accommodations, including the acquisition, construction or
7 rehabilitation of lands, buildings and community facilities
8 and in connection therewith to provide nonhousing facilities
9 which are part of the housing project, including land,
10 buildings, improvements, equipment and all ancillary
11 facilities for use for offices, stores, retirement homes,
12 hotels, financial institutions, service, health care,
13 education, recreation or research establishments, or any
14 other commercial purpose which are or are to be related to a
15 housing development.
16 Section 801-15. There is hereby created a body politic
17 and corporate to be known as the Illinois Finance Authority.
18 The exercise of the powers conferred by law shall be an
19 essential public function. The Authority shall consist of 15
20 members, who shall be appointed by the Governor, with the
21 advice and consent of the Senate. Upon the appointment of the
22 Board and every 2 years thereafter, the chairperson of the
23 Authority shall be selected by the Governor to serve as
24 chairperson for two years. Appointments to the Authority
25 shall be persons of recognized ability and experience in one
26 or more of the following areas: economic development,
27 finance, banking, industrial development, small business
28 management, real estate development, housing, health
29 facilities financing, local government financing, community
30 development, venture finance, construction and labor
31 relations. At the time of appointment, the Governor shall
32 designate 5 members to serve until the third Monday in July
33 2005, 5 members to serve until the third Monday in July 2006
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1 and 5 members to serve until the third Monday in July 2007.
2 Thereafter, appointments shall be for 3-year terms. A member
3 shall serve until his or her successor shall be appointed and
4 have qualified for office by filing the oath and bond.
5 Members of the Authority shall not be entitled to
6 compensation for their services as members, but shall be
7 entitled to reimbursement for all necessary expenses incurred
8 in connection with the performance of their duties as
9 members. The Governor may remove any member of the Authority
10 in case of incompetence, neglect of duty, or malfeasance in
11 office, after service on him of a copy of the written charges
12 against him and an opportunity to be publicly heard in person
13 or by counsel in his own defense upon not less than 10 days'
14 notice. From nominations received from the Governor, the
15 members of the Authority shall appoint an Executive Director
16 who shall be a person knowledgeable in the areas of financial
17 markets and instruments, to hold office for a one-year term.
18 The Executive Director shall be the chief administrative and
19 operational officer of the Authority and shall direct and
20 supervise its administrative affairs and general management
21 and perform such other duties as may be prescribed from time
22 to time by the members and shall receive compensation fixed
23 by the Authority. The Executive Director or any committee of
24 the members may carry out such responsibilities of the
25 members as the members by resolution may delegate. The
26 Executive Director shall attend all meetings of the
27 Authority; however, no action of the Authority shall be
28 invalid on account of the absence of the Executive Director
29 from a meeting. The Authority may engage the services of such
30 other agents and employees, including attorneys, appraisers,
31 engineers, accountants, credit analysts and other
32 consultants, as it may deem advisable and may prescribe their
33 duties and fix their compensation. The Authority may appoint
34 Advisory Councils to (1) assist in the formulation of policy
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1 goals and objectives, (2) assist in the coordination of the
2 delivery of services, (3) assist in establishment of funding
3 priorities for the various activities of the Authority, and
4 (4) target the activities of the Authority to specific
5 geographic regions. There may be an Advisory Council on
6 Economic Development. The Advisory Council shall consist of
7 no more than 12 members, who shall serve at the pleasure of
8 the Authority. Members of the Advisory Council shall receive
9 no compensation for their services, but may be reimbursed for
10 expenses incurred with their service on the Advisory Council.
11 Section 801-25. All official acts of the Authority shall
12 require the approval of at least 8 members. All meetings of
13 the Authority and the Advisory Councils shall be conducted in
14 accordance with the Open Meetings Act. All meetings shall be
15 conducted at a single location within this State among
16 members physically present at this location. The Auditor
17 General shall conduct financial audits and program audits of
18 the Authority, in accordance with the Illinois State Auditing
19 Act.
20 Section 801-30. The Authority possesses all the powers as
21 a body corporate necessary and convenient to accomplish the
22 purposes of this Act, including, without any intended
23 limitation upon the general powers hereby conferred, the
24 following:
25 (a) to enter into loans, contracts, agreements and
26 mortgages in any manner connected with any of its corporate
27 purposes and to invest its funds;
28 (b) to sue and be sued;
29 (c) to employ agents and employees and independent
30 contractors necessary to carry out its purposes and to fix
31 their compensation, benefits and terms and conditions of
32 their employment;
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1 (d) to have and use a common seal and to alter the same
2 at pleasure;
3 (e) to adopt all needful ordinances, resolutions, bylaws,
4 rules and regulations for the conduct of its business and
5 affairs and for the management and use of the projects
6 developed, constructed, acquired and improved in furtherance
7 of its purposes;
8 (f) to have and exercise all powers and be subject to all
9 duties otherwise necessary to effectuate the purposes of this
10 Act. If any of the powers set forth in this Act are exercised
11 within the jurisdictional limits of any municipality, all
12 ordinances of the municipality shall remain in full force and
13 effect and shall be controlling.
14 Section 801-40. In addition to the powers otherwise
15 authorized by law and in addition to the foregoing general
16 corporate powers, the Authority shall also have the following
17 additional specific powers to be exercised in furtherance of
18 the purposes of this Act.
19 (a) The Authority shall have power (i) to accept grants,
20 loans or appropriations from the federal government or the
21 State, or any agency or instrumentality thereof, to be used
22 for the operating expenses of the Authority, or for any
23 purposes of the Authority, including the making of direct
24 loans of such funds with respect to projects, and (ii) to
25 enter into any agreement with the federal government or the
26 State, or any agency or instrumentality thereof, in
27 relationship to such grants, loans or appropriations.
28 (b) The Authority shall have power to procure and enter
29 into contracts for any type of insurance and indemnity
30 agreements covering loss or damage to property from any
31 cause, including loss of use and occupancy, or covering any
32 other insurable risk.
33 (c) The Authority shall have the continuing power to
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1 issue bonds for its corporate purposes. Bonds may be issued
2 by the Authority in one or more series and may provide for
3 the payment of any interest deemed necessary on such bonds,
4 of the costs of issuance of such bonds, of any premium on any
5 insurance, or of the cost of any guarantees, letters of
6 credit or other similar documents, may provide for the
7 funding of the reserves deemed necessary in connection with
8 such bonds, and may provide for the refunding or advance
9 refunding of any bonds or for accounts deemed necessary in
10 connection with any purpose of the Authority. The bonds may
11 bear interest payable at any time or times and at any rate or
12 rates, notwithstanding any other provision of law to the
13 contrary, and such rate or rates may be established by an
14 index or formula which may be implemented or established by
15 persons appointed or retained therefor by the Authority, or
16 may bear no interest or may bear interest payable at maturity
17 or upon redemption prior to maturity, may bear such date or
18 dates, may be payable at such time or times and at such place
19 or places, may mature at any time or times not later than 40
20 years from the date of issuance, may be sold at public or
21 private sale at such time or times and at such price or
22 prices, may be secured by such pledges, reserves, guarantees,
23 letters of credit, insurance contracts or other similar
24 credit support or liquidity instruments, may be executed in
25 such manner, may be subject to redemption prior to maturity,
26 may provide for the registration of the bonds, and may be
27 subject to such other terms and conditions all as may be
28 provided by the resolution or indenture authorizing the
29 issuance of such bonds. The holder or holders of any bonds
30 issued by the Authority may bring suits at law or proceedings
31 in equity to compel the performance and observance by any
32 person or by the Authority or any of its agents or employees
33 of any contract or covenant made with the holders of such
34 bonds and to compel such person or the Authority and any of
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1 its agents or employees to perform any duties required to be
2 performed for the benefit of the holders of any such bonds by
3 the provision of the resolution authorizing their issuance,
4 and to enjoin such person or the Authority and any of its
5 agents or employees from taking any action in conflict with
6 any such contract or covenant. Notwithstanding the form and
7 tenor of any such bonds and in the absence of any express
8 recital on the face thereof that it is non-negotiable, all
9 such bonds shall be negotiable instruments. Pending the
10 preparation and execution of any such bonds, temporary bonds
11 may be issued as provided by the resolution. The bonds shall
12 be sold by the Authority in such manner as it shall
13 determine. The bonds may be secured as provided in the
14 authorizing resolution by the receipts, revenues, income and
15 other available funds of the Authority and by any amounts
16 derived by the Authority from the loan agreement or lease
17 agreement with respect to the project or projects; and bonds
18 may be issued as general obligations of the Authority payable
19 from such revenues, funds and obligations of the Authority as
20 the bond resolution shall provide, or may be issued as
21 limited obligations with a claim for payment solely from such
22 revenues, funds and obligations as the bond resolution shall
23 provide. The Authority may grant a specific pledge or
24 assignment of and lien on or security interest in such
25 rights, revenues, income, or amounts and may grant a specific
26 pledge or assignment of and lien on or security interest in
27 any reserves, funds or accounts established in the resolution
28 authorizing the issuance of bonds. Any such pledge,
29 assignment, lien or security interest for the benefit of the
30 holders of the Authority's bonds shall be valid and binding
31 from the time the bonds are issued without any physical
32 delivery or further act, and shall be valid and binding as
33 against and prior to the claims of all other parties having
34 claims against the Authority or any other person irrespective
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1 of whether the other parties have notice of the pledge,
2 assignment, lien or security interest. As evidence of such
3 pledge, assignment, lien and security interest, the Authority
4 may execute and deliver a mortgage, trust agreement,
5 indenture or security agreement or an assignment thereof. A
6 remedy for any breach or default of the terms of any such
7 agreement by the Authority may be by mandamus proceedings in
8 any court of competent jurisdiction to compel the performance
9 and compliance therewith, but the agreement may prescribe by
10 whom or on whose behalf such action may be instituted. It is
11 expressly understood that the Authority may, but need not,
12 acquire title to any project with respect to which it
13 exercises its authority.
14 (d) With respect to the powers granted by this Act, the
15 Authority may adopt rules and regulations prescribing the
16 procedures by which persons may apply for assistance under
17 this Act. Nothing herein shall be deemed to preclude the
18 Authority, prior to the filing of any formal application,
19 from conducting preliminary discussions and investigations
20 with respect to the subject matter of any prospective
21 application.
22 (e) The Authority shall have power to acquire by
23 purchase, lease, gift or otherwise any property or rights
24 therein from any person useful for its purposes, whether
25 improved for the purposes of any prospective project, or
26 unimproved. The Authority may also accept any donation of
27 funds for its purposes from any such source. The Authority
28 shall have no independent power of condemnation but may
29 acquire any property or rights therein obtained upon
30 condemnation by any other authority, governmental entity or
31 unit of local government with such power.
32 (f) The Authority shall have power to develop, construct
33 and improve either under its own direction, or through
34 collaboration with any approved applicant, or to acquire
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1 through purchase or otherwise, any project, using for such
2 purpose the proceeds derived from the sale of its bonds or
3 from governmental loans or grants, and to hold title in the
4 name of the Authority to such projects.
5 (g) The Authority shall have power to lease pursuant to a
6 lease agreement any project so developed and constructed or
7 acquired to the approved tenant on such terms and conditions
8 as may be appropriate to further the purposes of this Act and
9 to maintain the credit of the Authority. Any such lease may
10 provide for either the Authority or the approved tenant to
11 assume initially, in whole or in part, the costs of
12 maintenance, repair and improvements during the leasehold
13 period. In no case, however, shall the total rentals from any
14 project during any initial leasehold period or the total loan
15 repayments to be made pursuant to any loan agreement, be less
16 than an amount necessary to return over such lease or loan
17 period (1) all costs incurred in connection with the
18 development, construction, acquisition or improvement of the
19 project and for repair, maintenance and improvements thereto
20 during the period of the lease or loan; provided, however,
21 that the rentals or loan repayments need not include costs
22 met through the use of funds other than those obtained by the
23 Authority through the issuance of its bonds or governmental
24 loans; (2) a reasonable percentage additive to be agreed upon
25 by the Authority and the borrower or tenant to cover a
26 properly allocable portion of the Authority's general
27 expenses, including, but not limited to, administrative
28 expenses, salaries and general insurance, and (3) an amount
29 sufficient to pay when due all principal of, interest and
30 premium, if any on, any bonds issued by the Authority with
31 respect to the project. The portion of total rentals payable
32 under clause (3) of this subsection (g) shall be deposited in
33 such special accounts, including all sinking funds,
34 acquisition or construction funds, debt service and other
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1 funds as provided by any resolution, mortgage or trust
2 agreement of the Authority pursuant to which any bond is
3 issued.
4 (h) The Authority has the power, upon the termination of
5 any leasehold period of any project, to sell or lease for a
6 further term or terms such project on such terms and
7 conditions as the Authority shall deem reasonable and
8 consistent with the purposes of the Act. The net proceeds
9 from all such sales and the revenues or income from such
10 leases shall be used to satisfy any indebtedness of the
11 Authority with respect to such project and any balance may be
12 used to pay any expenses of the Authority or be used for the
13 further development, construction, acquisition or improvement
14 of projects. In the event any project is vacated by a tenant
15 prior to the termination of the initial leasehold period, the
16 Authority shall sell or lease the facilities of the project
17 on the most advantageous terms available. The net proceeds of
18 any such disposition shall be treated in the same manner as
19 the proceeds from sales or the revenues or income from leases
20 subsequent to the termination of any initial leasehold
21 period.
22 (i) The Authority shall have the power to make loans to
23 persons to finance a project, to enter into loan agreements
24 with respect thereto, and to accept guarantees from persons
25 of its loans or the resultant evidences of obligations of the
26 Authority.
27 (j) The Authority may fix, determine, charge and collect
28 any premiums, fees, charges, costs and expenses, including,
29 without limitation, any application fees, commitment fees,
30 program fees, financing charges or publication fees from any
31 person in connection with its activities under this Act.
32 (k) In addition to the funds established as provided
33 herein, the Authority shall have the power to create and
34 establish such reserve funds and accounts as may be necessary
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1 or desirable to accomplish its purposes under this Act and to
2 deposit its available monies into the funds and accounts.
3 (l) At the request of the governing body of any unit of
4 local government, the Authority is authorized to market such
5 local government's revenue bond offerings by preparing bond
6 issues for sale, advertising for sealed bids, receiving bids
7 at its offices, making the award to the bidder that offers
8 the most favorable terms or arranging for negotiated
9 placements or underwritings of such securities. The Authority
10 may, at its discretion, offer for concurrent sale the revenue
11 bonds of several local governments. Sales by the Authority of
12 revenue bonds under this Section shall in no way imply State
13 guarantee of such debt issue. The Authority may require such
14 financial information from participating local governments as
15 it deems necessary in order to carry out the purposes of this
16 subsection (1).
17 (m) The Authority may make grants to any county to which
18 Division 5-37 of the Counties Code is applicable to assist in
19 the financing of capital development, construction and
20 renovation of new or existing facilities for hospitals and
21 health care facilities under that Act. Such grants may only
22 be made from funds appropriated for such purposes from the
23 Build Illinois Bond Fund or the Build Illinois Purposes Fund.
24 (n) The Authority may establish an urban development
25 action grant program for the purpose of assisting
26 municipalities in Illinois which are experiencing severe
27 economic distress to help stimulate economic development
28 activities needed to aid in economic recovery. The Authority
29 shall determine the types of activities and projects for
30 which the urban development action grants may be used,
31 provided that such projects and activities are broadly
32 defined to include all reasonable projects and activities the
33 primary objectives of which are the development of viable
34 urban communities, including decent housing and a suitable
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1 living environment, and expansion of economic opportunity,
2 principally for persons of low and moderate incomes. The
3 Authority shall enter into grant agreements from monies
4 appropriated for such purposes from the Build Illinois Bond
5 Fund or the Build Illinois Purposes Fund. The Authority shall
6 monitor the use of the grants, and shall provide for audits
7 of the funds as well as recovery by the Authority of any
8 funds determined to have been spent in violation of this
9 subsection (n) or any rule or regulation promulgated
10 hereunder. The Authority shall provide technical assistance
11 with regard to the effective use of the urban development
12 action grants. The Authority shall file an annual report to
13 the General Assembly concerning the progress of the grant
14 program.
15 (o) The Authority may establish a Housing Partnership
16 Program whereby the Authority provides zero-interest loans to
17 municipalities for the purpose of assisting in the financing
18 of projects for the rehabilitation of affordable multi-family
19 housing for low and moderate income residents. The Authority
20 may provide such loans only upon a municipality's providing
21 evidence that it has obtained private funding for the
22 rehabilitation project. The Authority shall provide 3 State
23 dollars for every 7 dollars obtained by the municipality from
24 sources other than the State of Illinois. The loans shall be
25 made from monies appropriated for such purpose from the Build
26 Illinois Bond Fund or the Build Illinois Purposes Fund. The
27 total amount of loans available under the Housing Partnership
28 Program shall not exceed $30,000,000. State loan monies under
29 this subsection shall be used only for the acquisition and
30 rehabilitation of existing buildings containing 4 or more
31 dwelling units. The terms of any loan made by the
32 municipality under this subsection shall require repayment of
33 the loan to the municipality upon any sale or other transfer
34 of the project.
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1 (p) The Authority may award grants to universities and
2 research institutions, research consortiums and other
3 not-for-profit entities for the purposes of: remodeling or
4 otherwise physically altering existing laboratory or research
5 facilities, expansion or physical additions to existing
6 laboratory or research facilities, construction of new
7 laboratory or research facilities or acquisition of modern
8 equipment to support laboratory or research operations
9 provided that such grants (i) be used solely in support of
10 project and equipment acquisitions which enhance technology
11 transfer, and (ii) not constitute more than 60 percent of the
12 total project or acquisition cost.
13 (q) Grants may be awarded by the Authority to units of
14 local government for the purpose of developing the
15 appropriate infrastructure or defraying other costs to the
16 local government in support of laboratory or research
17 facilities provided that such grants may not exceed 40% of
18 the cost to the unit of local government.
19 (r) The Authority may establish a Direct Loan Program to
20 make loans to individuals, partnerships or corporations for
21 the purpose of an industrial project, as defined in Section
22 801-10 of this Act. For the purposes of such program and not
23 by way of limitation on any other program of the Authority,
24 the Authority shall have the power to issue bonds, notes, or
25 other evidences of indebtedness including commercial paper
26 for purposes of providing a fund of capital from which it may
27 make such loans. The Authority shall have the power to use
28 any appropriations from the State made especially for the
29 Authority's Direct Loan Program for additional capital to
30 make such loans or for the purposes of reserve funds or
31 pledged funds which secure the Authority's obligations of
32 repayment of any bond, note or other form of indebtedness
33 established for the purpose of providing capital for which it
34 intends to make such loans under the Direct Loan Program. For
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1 the purpose of obtaining such capital, the Authority may also
2 enter into agreements with financial institutions and other
3 persons for the purpose of selling loans and developing a
4 secondary market for such loans. Loans made under the Direct
5 Loan Program may be in an amount not to exceed $300,000 and
6 shall be made for a portion of an industrial project which
7 does not exceed 50% of the total project. No loan may be made
8 by the Authority unless approved by the affirmative vote of
9 at least 8 members of the board. The Authority shall
10 establish procedures and publish rules which shall provide
11 for the submission, review, and analysis of each direct loan
12 application and which shall preserve the ability of each
13 board member to reach an individual business judgment
14 regarding the propriety of making each direct loan. The
15 collective discretion of the board to approve or disapprove
16 each loan shall be unencumbered. The Authority may establish
17 and collect such fees and charges, determine and enforce such
18 terms and conditions, and charge such interest rates as it
19 determines to be necessary and appropriate to the successful
20 administration of the Direct Loan Program. The Authority may
21 require such interests in collateral and such guarantees as
22 it determines are necessary to project the Authority's
23 interest in the repayment of the principal and interest of
24 each loan made under the Direct Loan Program.
25 (s) The Authority may guarantee private loans to third
26 parties up to a specified dollar amount in order to promote
27 economic development in this State.
28 (t) The Authority may adopt rules and regulations as may
29 be necessary or advisable to implement the powers conferred
30 by this Act.
31 (u) The Authority shall have the power to issue bonds,
32 notes or other evidences of indebtedness, which may be used
33 to make loans to units of local government which are
34 authorized to enter into loan agreements and other documents
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1 and to issue bonds, notes and other evidences of indebtedness
2 for the purpose of financing the protection of storm sewer
3 outfalls, the construction of adequate storm sewer outfalls,
4 and the provision for flood protection of sanitary sewage
5 treatment plans, in counties that have established a
6 stormwater management planning committee in accordance with
7 Section 5-1062 of the Counties Code. Any such loan shall be
8 made by the Authority pursuant to the provisions of Section
9 820-5 to 820-60 of this Act. The unit of local government
10 shall pay back to the Authority the principal amount of the
11 loan, plus annual interest as determined by the Authority.
12 The Authority shall have the power, subject to appropriations
13 by the General Assembly, to subsidize or buy down a portion
14 of the interest on such loans, up to 4% per annum.
15 (v) The Authority may accept security interests as
16 provided in Sections 11-3 and 11-3.3 of the Illinois Public
17 Aid Code.
18 (w) Moral Obligation. In the event that the Authority
19 determines that monies of the Authority will not be
20 sufficient for the payment of the principal of and interest
21 on its bonds during the next State fiscal year, the
22 Chairperson, as soon as practicable, shall certify to the
23 Governor the amount required by the Authority to enable it to
24 pay such principal of and interest on the bonds. The Governor
25 shall submit the amount so certified to the General Assembly
26 as soon as practicable, but no later than the end of the
27 current State fiscal year. This subsection shall apply only
28 to any bonds or notes as to which the Authority shall have
29 determined, in the resolution authorizing the issuance of the
30 bonds or notes, that this subsection shall apply. Whenever
31 the Authority makes such a determination, that fact shall be
32 plainly stated on the face of the bonds or notes and that
33 fact shall also be reported to the Governor. In the event of
34 a withdrawal of moneys from a reserve fund established with
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1 respect to any issue or issues of bonds of the Authority to
2 pay principal or interest on those bonds, the Chairperson of
3 the Authority, as soon as practicable, shall certify to the
4 Governor the amount required to restore the reserve fund to
5 the level required in the resolution or indenture securing
6 those bonds. The Governor shall submit the amount so
7 certified to the General Assembly as soon as practicable, but
8 no later than the end of the current State fiscal year. The
9 Authority shall obtain written approval from the Governor for
10 any bonds and notes to be issued under this Section. In
11 addition to any other bonds authorized to be issued under
12 Sections 825-60, 825-65(e), 830-25 and 845-5, the principal
13 amount of Authority bonds outstanding issued under this
14 Section 801-40(w) or under 20 ILCS 3850/1-80 or 30 ILCS
15 360/2-6(c), which have been assumed by the Authority, shall
16 not exceed $150,000,000.
17 Section 801-45. Property Taxation. The property of the
18 Authority and its respective income and operations, shall be
19 exempt from taxation.
20 ARTICLE 805
21 INDUSTRIAL REVENUE BOND INSURANCE FUND
22 Section 805-5. Findings and Declaration of Policy. It is
23 hereby found and declared that a continuing need exists to
24 maintain and develop the State's economy; that there are
25 significant barriers in the capital markets inhibiting the
26 issuance by the Authority of industrial revenue bonds to
27 assist in financing industrial projects in the State,
28 particularly for smaller firms; and that the establishment of
29 the Industrial Revenue Bond Insurance Fund and the exercise
30 by the Authority of the powers granted in this Article will
31 promote economic development by widening the market for the
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1 Authority's revenue bonds.
2 Section 805-10. Definitions. The following terms,
3 whenever used or referred to in this Article, shall have the
4 following meanings ascribed to them, except where the context
5 clearly requires otherwise:
6 (a) "Financial Institution" means a financial institution
7 which is a trust company, a bank, a savings bank, a credit
8 union, an investment bank, a broker, an investment trust, a
9 pension fund, a building and loan association, a savings and
10 loan association, an insurance company, or any other
11 institution acceptable to the Authority, authorized to do
12 business in the State and approved by the Authority to insure
13 bonds or loans for industrial projects authorized by this
14 Act.
15 (b) "Participating lender" means any trust company, bank,
16 savings bank, credit union, investment bank, broker,
17 investment trust, pension fund, building and loan
18 association, savings and loan association, insurance company
19 or other institution approved by the Authority which assumes
20 a portion of the risk on a loan for an industrial project as
21 provided in Section 805-30 of this Act.
22 Section 805-15. Industrial Project Insurance Fund. There
23 is created the Industrial Project Insurance Fund, hereafter
24 referred to in Sections 805-15 through 805-50 of this Act as
25 the "Fund". The Treasurer shall have custody of the Fund,
26 which shall be held outside of the State treasury, except
27 that custody may be transferred to and held by any bank,
28 trust company or other fiduciary with whom the Authority
29 executes a trust agreement as authorized by paragraph (h) of
30 Section 805-20 of this Act. Any portion of the Fund against
31 which a charge has been made, shall be held for the benefit
32 of the holders of the loans or bonds insured under Section
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1 805-20 of this Act. There shall be deposited in the Fund such
2 amounts, including but not limited to:
3 (a) All receipts of bond and loan insurance premiums;
4 (b) All proceeds of assets of whatever nature received by
5 the Authority as a result of default or delinquency with
6 respect to insured loans or bonds with respect to which
7 payments from the Fund have been made, including proceeds
8 from the sale, disposal, lease or rental of real or personal
9 property which the Authority may receive under the provisions
10 of this Article but excluding the proceeds of insurance
11 hereunder;
12 (c) All receipts from any applicable contract or
13 agreement entered into by the Authority under paragraph (b)
14 of Section 805-20 of this Act;
15 (d) Any State appropriations, transfers of
16 appropriations, or transfers of general obligation bond
17 proceeds or other monies made available to the Fund. Amounts
18 in the Fund shall be used in accordance with the provisions
19 of this Article to satisfy any valid insurance claim payable
20 therefrom and may be used for any other purpose determined by
21 the Authority in accordance with insurance contract or
22 contracts with financial institutions entered into pursuant
23 to this Act, including without limitation protecting the
24 interest of the Authority in industrial projects during
25 periods of loan delinquency or upon loan default through the
26 purchase of industrial projects in foreclosure proceedings or
27 in lieu of foreclosure or through any other means. Such
28 amounts may also be used to pay administrative costs and
29 expenses reasonably allocable to the activities in connection
30 with the Fund and to pay taxes, maintenance, insurance,
31 security and any other costs and expenses of bidding for,
32 acquiring, owning, carrying and disposing of industrial
33 projects which were financed with the proceeds of insured
34 bonds or loans. In the case of a default in payment with
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1 respect to any loan, mortgage or other agreement so insured,
2 the amount of the default shall immediately, and at all times
3 during the continuance of such default, and to the extent
4 provided in any applicable agreement, constitute a charge on
5 the Fund. Any amounts in the Fund not currently needed to
6 meet the obligations of the Fund may be invested as provided
7 by law in obligations designated by the Authority, and all
8 income from such investments shall become part of the Fund.
9 In making such investments, the Authority shall act with the
10 care, skill, diligence and prudence under the circumstances
11 of a prudent person acting in a like capacity in the conduct
12 of an enterprise of like character and with like aims. It
13 shall diversify such investments of the Authority so as to
14 minimize the risk of large losses, unless under the
15 circumstances it is clearly not prudent to do so. Any amounts
16 in the Fund not needed to meet the obligations of the Fund
17 may be transferred to the Credit Enhancement Development Fund
18 of the Authority pursuant to resolution of the members of the
19 Authority.
20 Section 805-20. Powers and Duties; Industrial Project
21 Insurance Program. The Authority has the power:
22 (a) To insure and make advance commitments to insure all
23 or any part of the payments required on the bonds issued or a
24 loan made to finance any environmental facility under the
25 Illinois Environmental Facilities Financing Act or for any
26 industrial project upon such terms and conditions as the
27 Authority may prescribe in accordance with this Article. The
28 insurance provided by the Authority shall be payable solely
29 from the Fund created by Section 805-15 and shall not
30 constitute a debt or pledge of the full faith and credit of
31 the State, the Authority, or any political subdivision
32 thereof;
33 (b) To enter into insurance contracts, letters of credit
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1 or any other agreements or contracts with financial
2 institutions with respect to the Fund and any bonds or loans
3 insured thereunder. Any such agreement or contract may
4 contain terms and provisions necessary or desirable in
5 connection with the program, subject to the requirements
6 established by this Act, including without limitation terms
7 and provisions relating to loan documentation, review and
8 approval procedures, origination and servicing rights and
9 responsibilities, default conditions, procedures and
10 obligations with respect to insurance contracts made under
11 this Act. The agreements or contracts may be executed on an
12 individual, group or master contract basis with financial
13 institutions;
14 (c) To charge reasonable fees to defray the cost of
15 obtaining letters of credit or other similar documents, other
16 than insurance contracts under paragraph (b). Any such fees
17 shall be payable by such person, in such amounts and at such
18 times as the Authority shall determine, and the amount of the
19 fees need not be uniform among the various bonds or loans
20 insured;
21 (d) To fix insurance premiums for the insurance of
22 payments under the provisions of this Article. Such premiums
23 shall be computed as determined by the Authority. Any
24 premiums for the insurance of loan payments under the
25 provisions of this Act shall be payable by such person, in
26 such amounts and at such times as the Authority shall
27 determine, and the amount of the premiums need not be uniform
28 among the various bonds or loans insured;
29 (e) To establish application fees and prescribe
30 application, notification, contract and insurance forms,
31 rules and regulations it deems necessary or appropriate;
32 (f) To make loans and to issue bonds secured by insurance
33 or other agreements authorized by paragraphs (a) and (b) of
34 this Section 805-20 and to issue bonds secured by loans that
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1 are guaranteed by the federal government or agencies thereof;
2 (g) To issue a single bond issue, or a series of bond
3 issues, for a group of industrial projects, a group of
4 corporations, or a group of business entities or any
5 combination thereof insured by insurance or backed by any
6 other agreement authorized by paragraphs (a) and (b) of this
7 Section or secured by loans that are guaranteed by the
8 federal government or agencies thereof;
9 (h) To enter into trust agreements for the management of
10 the Fund created under Section 805-15 of this Act; and
11 (i) To exercise such other powers as are necessary or
12 incidental to the foregoing.
13 Section 805-25. Insurance Contracts; Claim
14 Responsibility. Any contract of insurance made by the
15 Authority with a lender or bondholder or for the benefit
16 thereof under this Act shall provide that claims payable
17 under such contract shall be paid from any amounts available
18 in the Fund and from any amounts available under the terms of
19 any applicable contract or agreement with other financial
20 institutions, in such order of priority as the Authority
21 shall deem appropriate. The obligation of the Authority to
22 make payments under any such contract shall be limited solely
23 to the amounts provided in such contract and shall not
24 constitute a debt or liability of the State, the Authority or
25 any subdivision thereof. Any insurance contract or other
26 agreement with a lender or bondholder or for the benefit
27 thereof and any rule or regulation of the Authority
28 implementing the insurance program may contain such other
29 terms, provisions or conditions as the Authority deems
30 necessary or appropriate, including, without limitation,
31 those relating to the payment of insurance premiums, the
32 giving of notice, claim procedures, the sources of payment
33 for claims, the priority of competing claims for payment, the
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1 release or termination of loan security and borrower
2 liability, the timing of payment, the maintenance and
3 disposition of industrial projects and the use of amounts
4 received during periods of delinquency or upon default, and
5 any other provisions concerning the rights of insured parties
6 or conditions to the payment of insurance claims.
7 Section 805-30. Applications for Insured Industrial
8 Project Loans; Procedures. Applications received by the
9 Authority shall be forwarded to a credit review committee
10 consisting of 3 persons experienced in industrial financing
11 selected by the Authority for a review and report concerning
12 the advisability of approving the proposed insurance. The
13 review and report shall include facts about the company's
14 history, job opportunities, stability of employment,
15 financial condition and structure, income statements, market
16 prospects and management, and any other facts material to the
17 insurance request. The report shall include a reasoned
18 opinion as to whether providing the insurance would tend to
19 fulfill the purposes of the Authority and the insurance
20 program. The report shall be advisory in nature only. Payment
21 shall be made to the members of the committee selected by the
22 Authority on a reasonable consultant basis, as the Authority
23 may determine. The credit review committee shall be of such
24 composition, act for such time and have such powers as shall
25 be specified in the agreement or agreements establishing its
26 existence and, to the extent so specified, shall act for the
27 Authority in matters concerning the insurance program
28 authorized by Sections 805-5 through 805-45 of this Act. The
29 Authority shall, on the basis of the application, the report
30 of the credit review committee, the information provided by
31 the local or regional industrial development agency, and any
32 other appropriate information, prepare a report concerning
33 the creditworthiness of the proposed borrower, the loan
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1 record of the participating lender, the financial commitment
2 of the participating lender, the manner in which the proposed
3 industrial project will advance the economy of the State and
4 the soundness of the proposed loan. The Fund, or any portion
5 thereof against which a charge has been made, shall be held
6 for the benefit of the holders of the bonds or loans insured
7 under Section 805-20 of this Act, as provided by agreement
8 between the Authority and such holders. The Authority shall
9 be satisfied that the Fund is protected by adequate security
10 on all bonds or loans insured by the Authority.
11 Section 805-35. Loan Approval Standards. Before approving
12 any bond or loan insurance under this Act, the Authority
13 shall find that any loan insured by or to be made from the
14 proceeds of bonds insured by the Authority under this Act
15 shall:
16 (a) Be made for an industrial project or any
17 environmental facility under the Illinois Environmental
18 Facilities Financing Act;
19 (b) Be made to a borrower approved by the Authority as
20 responsible and creditworthy;
21 (c) Be reviewed for insurance by the credit review
22 committee established by the Authority pursuant to this Act;
23 (d) In the case of real property, be secured by a first
24 mortgage on the property, or by any other security
25 satisfactory to the Authority to secure payment of the loans,
26 and have a maturity date not later than 25 years after the
27 date of the loan;
28 (e) In the case of machinery and equipment, be secured by
29 a first security interest in the machinery and equipment, or
30 by any other security satisfactory to the Authority to secure
31 payment of the loan, and have a maturity date not later than
32 12 years from the date of the loan;
33 (f) Contain complete amortization provisions satisfactory
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1 to the Authority;
2 (g) Be in such principal amount and form, and contain
3 such terms and provisions with respect to property insurance,
4 repairs, alterations, payment of taxes and assessments,
5 delinquency charges, default remedies, additional security
6 and other matters as the Authority shall determine;
7 (h) Be made only after the Authority has made a
8 determination that, in its sole opinion, the loan has the
9 potential to provide or retain substantial employment in
10 relation to the principal amount of the loan to be insured,
11 which employment, so far as feasible, may be expected to be
12 of residents of areas of critical labor surplus;
13 (i) Be made only after the Authority has made a
14 determination that, in its sole opinion, adequate provision
15 is being or will be made to meet any increased demand upon
16 community public facilities that will likely result from the
17 project; and
18 (j) Be made only after the Authority has made a
19 determination that, in its sole opinion, the public interest
20 is adequately protected by the terms of the loan and of the
21 insurance contract or other agreements. Any contract of
22 insurance executed by the Authority under this Act shall be
23 conclusive evidence of eligibility for such insurance, and
24 the validity of any contract of insurance so executed or of
25 an advance commitment to insure shall be incontestable in the
26 hands of a borrower or bondholder from the date of execution
27 and delivery of the contract or commitment, except for fraud,
28 or misrepresentation on the part of the borrower and, as to
29 commitments to insure, noncompliance with the commitment or
30 Authority rules or regulations in force at the time of
31 issuance of the commitment. Nothing in this Act shall be
32 construed as creating any rights of a competitor of an
33 approved borrower or any applicant whose application is
34 denied by the Authority to challenge any application which is
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1 accepted by the Authority and any loan, contract of insurance
2 or other agreement executed in connection therewith.
3 Section 805-40. Investments in Insured Debts of the
4 Authority. The State and all counties, municipalities and
5 other public corporations, political subdivisions and public
6 bodies, and public officers of any thereof, all banks,
7 bankers, trust companies, savings banks and institutions,
8 building and loan associations, savings and loan
9 associations, investment companies and other persons carrying
10 on a banking business, all insurance companies, insurance
11 associations and other persons carrying on an insurance
12 business and all executors, administrators, guardians,
13 trustees and other fiduciaries may legally invest any sinking
14 funds, moneys or other funds belonging to them or within
15 their control in any bonds, loans or extension of credit
16 which are the subject of insurance pursuant to this Article,
17 it being the purpose of this Section to authorize the
18 investment of such bonds, loans or extension of credit of all
19 sinking, insurance, retirement, compensation, pension and
20 trust funds, whether owned or controlled by private or public
21 persons or officers; provided, however, that nothing
22 contained in this Section may be construed as relieving any
23 persons from any duty of exercising reasonable care in
24 selecting securities for purchase or investment. The bonds
25 and any loan or extension of credit which are the subject of
26 insurance pursuant to this Article are also hereby made
27 securities which may properly and legally be deposited with
28 and received by all public officers and bodies of the State
29 or any agency or political subdivisions thereof and all
30 municipalities and public corporations for any purpose for
31 which the deposit of bonds is now or may hereafter be
32 authorized by law.
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1 Section 805-45. Cooperation with Local Industrial
2 Development Agencies. When the Authority receives an
3 application from a potential insured loan borrower, it shall
4 promptly notify the local industrial development agency of
5 that fact in writing if such an agency exists in the
6 municipality or county where such industrial project is
7 proposed to be financed; or the corporate authorities in such
8 municipality where no such agency exists. The Authority shall
9 provide the local industrial development agency with any
10 available information that the agency needs to prepare a
11 recommendation concerning the advisability of the industrial
12 project and its impact, economic and otherwise, on the
13 community and the State. Such application shall include a
14 written authorization by the applicant that such notification
15 and information be made available to such agency or
16 municipality to the extent that such information is not
17 deemed to be confidential under Section 805-50 of this Act.
18 The Authority shall not consider any application that does
19 not include such written authorization. The Authority shall
20 encourage financial participation by local industrial
21 development agencies by giving priority consideration to
22 insured loan applicants from areas serviced by those agencies
23 that have demonstrated a commitment to economic development.
24 Section 805-50. Documentary material concerning trade
25 secrets; Commercial or financial information;
26 Confidentiality. Any documentary materials or data made or
27 received by any member, agent, or employee of the Authority
28 or the credit review committees, to the extent that such
29 materials or data consist of trade secrets, commercial or
30 financial information regarding the operation of any
31 enterprise conducted by an applicant for, or recipient of,
32 any form of assistance which the Authority is empowered to
33 render under this Article, or regarding the competitive
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1 position of such enterprise in a particular field of
2 endeavor, shall not be deemed public records.
3 ARTICLE 810
4 VENTURE INVESTMENT FUND
5 Section 810-5. Findings and Declaration of Policy. It is
6 hereby found and declared that a continuing need exists to
7 maintain and develop the State's economy; that assisting and
8 encouraging economic development through private enterprise
9 will help to create and maintain employment and governmental
10 revenues and is an important function of the State; that the
11 availability of seed capital and equity capital is an
12 important inducement to enterprises to remain, locate and
13 expand in the State; that there exists in the State gaps in
14 the availability of capital for the development and
15 exploitation of new technologies, products, processes and
16 inventions and that this shortage has resulted and will
17 continue to result in a shortfall in the development of new
18 enterprises and employment in Illinois; that the
19 establishment of the Illinois Venture Investment Fund and the
20 exercise by the Authority of the powers granted in Sections
21 810-5 through 810-40 of this Act will promote economic
22 development resulting in increased employment and public
23 revenues; and that the provisions of this Act are hereby
24 declared to be in the public interest and for the public
25 benefit.
26 Section 810-10. Definitions. The following terms,
27 whenever used or referred to in this Article, shall have the
28 following meanings ascribed to them, except where the context
29 clearly requires otherwise:
30 (a) "Co-venture investment" means a venture capital or
31 seed capital investment by the Authority in qualified
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1 securities of an enterprise that is made after or in
2 conjunction with one or more professional investors that have
3 or are making equity investments in that enterprise, as
4 provided in this Act. A direct investment made by the
5 Authority may later be treated as a co-venture upon such
6 investment made by a professional investor.
7 (b) "Direct investment" means a venture capital or seed
8 capital investment by the Authority in qualified securities
9 of an enterprise in which no professional investor or seed
10 capital investor is also making an equity investment.
11 (c) "Enterprise" means an individual, corporation,
12 partnership, joint venture, trust, estate, or unincorporated
13 association.
14 (d) "Professional investor" means any bank, bank holding
15 company, savings institution, trust company, credit union,
16 insurance company, investment company registered under the
17 Federal Investment Company Act of 1940, pension or
18 profit-sharing trust or other financial institution or
19 institutional buyer, licensee under the Federal Small
20 Business Investment Act of 1958, or any person, partnership,
21 or other entity whose principal business is making venture
22 capital investments and whose net worth exceeds $250,000.
23 (e) "Qualified security" means any note, stock,
24 convertible security, treasury stock, bond, debenture,
25 evidence of indebtedness, limited partnership interest,
26 certificate of interest or participation in any
27 profit-sharing agreement, pre-organization certificate or
28 subscription, transferable share, investment contract,
29 certificate of deposit for a security, certificate of
30 interest or participation in a patent or application
31 therefor, or in royalty or other payments under a patent or
32 application, or, in general, any interest or instrument
33 commonly known as a "security" or any certificate for,
34 receipt for, guarantee of, or option, warrant, or right to
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1 subscribe to or purchase any of the foregoing.
2 (f) "Seed capital" means financing in the form of
3 investments in qualified securities that is provided for
4 applied research, development, testing, and initial marketing
5 of a technology, product, process, or invention and
6 associated working capital.
7 (g) "Seed capital investor" means any person,
8 partnership, corporation, trust, or other entity making a
9 seed capital investment.
10 (h) "Director" means the person designated by the
11 Authority to manage the activities associated with the
12 Illinois Venture Investment Fund.
13 (i) "Venture capital" means financing in the form of
14 investments in qualified securities that is provided for the
15 capital needs of a company that is developing a new
16 technology, product, process, or invention.
17 Section 810-15. Illinois Venture Investment Fund. There
18 is created the Illinois Venture Investment Fund, hereafter
19 referred to in this Article as the "Fund". The Treasurer of
20 the Authority shall have custody of the Fund, which shall be
21 held outside of the State treasury. The Authority is
22 authorized to accept any and all grants, loans, including
23 loans from State public employee pension funds, as authorized
24 by this Act or any other statute, subsidies, matching funds,
25 reimbursements, appropriations, transfers of appropriations,
26 federal grant monies, income derived from investments, or
27 other things of value from the federal or state governments
28 or any agency of any other state or from any institution,
29 person, firm or corporation, public or private, for deposit
30 in the Fund. The Authority is authorized to use monies
31 deposited in the Fund expressly for the purposes specified in
32 and according to the procedures established by Sections
33 810-20 through 810-40 of this Act. The Authority may appoint
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1 a Director to manage the activities associated with the Fund.
2 Such Director shall receive compensation as determined by the
3 Authority.
4 Section 810-20. Powers and Duties; Illinois Venture
5 Investment Fund Limits. The Authority shall invest and
6 reinvest the Fund and the income, thereof, in the following
7 ways:
8 (a) To make a direct investment in qualified securities
9 issued by enterprises and to dispose of those securities
10 within 10 years after the date of the direct investment as
11 determined by the Authority for the purpose of providing
12 venture capital or seed capital, provided that the investment
13 shall not exceed 49% of the estimated cost of development,
14 testing, and initial production and marketing and associated
15 working capital for the technology, product, process, or
16 invention, or $750,000, whichever is less;
17 (b) To enter into written agreements or contracts
18 (including limited partnership agreements) with one or more
19 professional investors or one or more seed capital investors,
20 if any, for the purpose of establishing a pool of funds to be
21 used exclusively as venture capital or seed capital
22 investments. The Authority shall not invest more than
23 $2,000,000 in a single pool of funds or affiliated pools of
24 funds. The agreement or contract shall provide for the pool
25 of funds to be managed by a professional investor. The
26 manager may be the general partner of a limited partnership
27 of which the Authority is a limited partner. The agreement or
28 contract may provide for reimbursement of expenses of, and
29 payment of a fee to, the manager. The agreement or contract
30 may also provide for payment to the manager of a percentage,
31 not to exceed 40% (computed on an annual basis), of cash and
32 other property payable to the Authority as its pro-rata share
33 of distributions to investors in the pool of funds, provided
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1 that (i) no amount shall be received by the manager upon sale
2 or other disposition of qualified investments in enterprises
3 until recovery by the Authority of its investment and upon
4 liquidation or withdrawal of the Authority from the pool of
5 funds, the manager shall be obligated to refund any amount
6 received by it from such percentage if necessary to allow the
7 Authority to recover its investment or (ii) the terms of
8 payment of cash and other property to the Authority are no
9 less favorable to the Authority than payments to other seed
10 capital investors (other than the manager) who are parties to
11 the agreement or contract.
12 (c) To make co-venture investments by entering into
13 agreements with one or more professional investors or one or
14 more seed capital investors, if any, who have formally agreed
15 to invest at least 50% as much as the Authority invests in
16 the enterprise, for the purpose of providing venture capital
17 or seed capital; but no more than $1,000,000 shall be
18 invested by the Authority in the qualified securities of a
19 single enterprise. A total of not more than $1,500,000 may be
20 invested in the securities of a single enterprise, if the
21 Authority shall find, after the initial investment by the
22 Authority, that additional investments in the enterprise are
23 necessary to protect or enhance the initial investment of the
24 Authority. Each co-venture investment agreement shall provide
25 that the Authority will recover its investment before or
26 simultaneously with any distribution to participating
27 professional investors or seed capital investors. The
28 Authority and participating professional investors and seed
29 capital investors shall share ratably in the profits earned
30 in any form on the co-venture investment, but the Authority
31 may, at its discretion, agree to pay to a participating
32 professional investor a percentage, not to exceed 40%
33 (computed on an annual basis), of cash and other property
34 payable to the Authority as its pro-rata share of
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1 distributions to investors in the pool of funds, provided
2 that (i) no amount shall be received by the participating
3 professional investor upon sale or other disposition of
4 qualified investments in the enterprises until recovery by
5 the Authority of its investment and upon liquidation or
6 withdrawal of the Authority from the pool of funds, the
7 participating professional investor shall be obligated to
8 refund any amount received by it from such percentage if
9 necessary to allow the Authority to recover its investment or
10 (ii) the terms of payment of cash and other property to the
11 Authority are no less favorable to the Authority than
12 payments to other seed capital investors or professional
13 investors (other than the professional investor) who are
14 parties to the agreement or contract;
15 (d) To purchase qualified securities of certified
16 development corporations created under Section 503 of the
17 federal Small Business Administration Act, including the
18 Illinois Small Business Growth Corporation, for the purpose
19 of making loans to enterprises that have the potential to
20 create substantial employment within the State per dollar
21 invested by the Authority, provided that the investment does
22 not exceed 25% of the total investment in each corporation at
23 the time the investment is approved by the Authority.
24 Investment by the Authority in the Illinois Small Business
25 Growth Corporation is not limited by the foregoing provision;
26 (e) To purchase qualified securities of small business
27 investment companies and minority enterprise small business
28 investment corporations certified by the federal Small
29 Business Administration which are committed to making 60% of
30 their investments in the State, provided that investments
31 from the Fund do not exceed 25% of the total investment in
32 these entities at the time the investment is approved by the
33 Authority;
34 (f) To make the investments of any funds held in reserves
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1 or sinking funds, or any funds not required for immediate
2 disbursement, as may be lawful investments for fiduciaries in
3 the State;
4 (g) To facilitate and promote the acquisition and
5 revitalization of existing manufacturing enterprises by
6 developing and maintaining a list of firms, or divisions
7 thereof, located within the State that are available for
8 purchase, merger, or acquisition. The list shall be made
9 available at such charges as the Authority may determine to
10 all interested persons and institutions upon request. No firm
11 shall appear on the list without its prior written
12 permission. The list may contain such additional financial,
13 technical, market and other information as may be supplied by
14 the listed firm. The Authority shall bear no responsibility
15 for the accuracy of the information contained on the list,
16 and each listed firm shall hold the Authority harmless
17 against any claim of inaccuracy. Enterprises supported by
18 investments from the Fund shall receive consideration by the
19 Authority in the allocation of loans to be insured or loans
20 to be made from the proceeds of bonds to be insured by the
21 Industrial Revenue Bond Insurance Fund established under this
22 Article, and the Authority shall coordinate its activities
23 under the 2 programs.
24 Section 810-25. Direct and Co-venture Investments. An
25 enterprise seeking a direct investment from the Illinois
26 Venture Investment Fund shall file an application with the
27 Authority along with an applicable fee to be determined by
28 the Authority. A valid application shall contain a business
29 plan, including a description of the enterprise and its
30 management, a statement of the amount, timing, and projected
31 use of the capital required, a statement concerning the
32 feasibility of the proposed technology, product, process, or
33 invention, its state of development and likelihood of
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1 commercial success, a statement of the potential economic
2 impact of the enterprise on the State, including the number,
3 location, and types of jobs expected to be created, and such
4 other information as the Authority shall require. In addition
5 to the foregoing, the Authority shall approve an application
6 for a direct investment and shall approve a co-venture
7 investment only after it has made the following findings:
8 (a) The enterprise has a reasonable chance of success;
9 (b) If the application is for a direct investment,
10 Authority participation is necessary to the success of the
11 enterprise because conventional, private funding is
12 unavailable in the traditional capital markets, or because
13 funding has been offered on terms that would substantially
14 hinder the success of the enterprise;
15 (c) The technology, product, process, or invention for
16 which the investment is being made is feasible, has the
17 potential to achieve commercial success and the enterprise
18 has the potential to create substantial employment within the
19 State per dollar invested and that this employment, so far as
20 feasible, may be expected to be for residents of areas of
21 critical labor surplus;
22 (d) The entrepreneur, investors, shareholders, and other
23 founders of the enterprise have already made or are obligated
24 to make a substantial financial and time commitment to the
25 enterprise;
26 (e) The securities to be purchased are qualified
27 securities;
28 (f) The Authority determines that the possible gains on
29 the investment are at least commensurate with the risk of
30 loss and that there is a reasonable possibility that the
31 Authority will recoup its investment, within 10 years after
32 the investment or such other time period as negotiated by the
33 Authority, through the receipt of interest payments,
34 dividends, capital gains, or other distribution of profits,
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1 or royalties on investments made by the Authority; and
2 (g) Binding commitments have been made to the Authority
3 by the enterprise for adequate reporting of financial data to
4 the Authority and any participating professional investors or
5 seed capital investors. The report shall include an annual
6 audit of the books of the enterprise by an independent
7 certified public accountant if the Authority so requires. The
8 Authority and any participating professional investors or
9 seed capital investors shall secure sufficient contractual
10 rights from the enterprise as the Authority shall consider
11 prudent to protect the investment of the Authority,
12 including, at the discretion of the Authority and without
13 limitation, a right of access to financial and other records
14 of the enterprise. The Authority's interest in qualified
15 securities from investments shall not represent more than 49%
16 of the voting stock of any single enterprise at the time of
17 purchase after giving effect to the conversion of all
18 outstanding convertible securities of the enterprise. In the
19 event of severe financial difficulty that in the judgment of
20 the Authority threatens the investment of the Authority
21 therein, a greater percentage of those securities may be
22 owned or acquired by the Authority.
23 Section 810-30. Investment in Pools of Funds. Proposals
24 for the establishment of pools of funds under paragraph (b)
25 of Section 810-20 of this Act shall be submitted on a form,
26 contain the information, and be accompanied by a fee as
27 prescribed by the Authority. The Authority shall not enter
28 into any agreement or contract under paragraph (b) of Section
29 810-20 of this Act unless the agreement or contract provides
30 that the pool of funds will be invested in an enterprise only
31 if the manager finds all of the following:
32 (a) The enterprise has a reasonable chance of success.
33 (b) The technology, product, process, or invention for
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1 which the investment is being made is feasible and has the
2 potential to achieve commercial success.
3 (c) The enterprise has the potential to create
4 substantial employment within the State.
5 (d) The entrepreneur, investors, shareholders, or
6 founders of the enterprise have made or are obligated to make
7 a substantial commitment of time and funds to the enterprise.
8 (e) The possible gains in the investment are at least
9 commensurable with the risk of loss and there is a reasonable
10 possibility that the investors, including the Authority, will
11 recoup their investment within 10 years after the investment,
12 through the receipt of interest, dividends, capital gains, or
13 other distributions of profit or royalties.
14 (f) The enterprise shall have made binding commitments
15 for adequate reporting of and access to financing data of the
16 enterprise.
17 Section 810-35. Documentary materials concerning trade
18 secrets; Commercial or financial information;
19 Confidentiality. Any documentary materials or data made or
20 received by any member, agent or employee of the Authority,
21 to the extent that such material or data consist of trade
22 secrets, commercial or financial information regarding the
23 operation of any enterprise conducted by an applicant for, or
24 recipient of, any form of assistance which the Authority is
25 empowered to render, or regarding the competitive position of
26 such enterprise in a particular field of endeavor, shall not
27 be deemed public records; provided, however, that if the
28 Authority purchases a qualified security from such
29 enterprise, the commercial and financial information,
30 excluding trade secrets, shall be deemed to become a public
31 record of the Authority after the expiration of 3 years from
32 the date of purchase of such qualified security, or, in the
33 case of such information made or received by any member,
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1 agent or employee of the Authority after the purchase of such
2 qualified security, 3 years from the date such information
3 was made or received. Any discussion or consideration of such
4 trade secrets or commercial or financial information may be
5 held by the Authority, in executive sessions closed to the
6 public, notwithstanding the provisions of the Open Meetings
7 Act; provided, however, that the purpose of any such
8 executive session shall be set forth in the official minutes
9 of the Authority and business which is not related to such
10 purpose shall not be transacted, nor shall any vote be taken
11 during such executive sessions.
12 Section 810-40. Tax Exemption. The Illinois Venture
13 Investment Fund and all its proceeds shall be and are hereby
14 declared exempt from all franchise and income taxes levied by
15 the State, provided nothing herein shall be construed to
16 exempt from any such taxes, or from any taxes levied in
17 connection with the manufacture, production, use or sale of
18 any technologies, products, processes or inventions which are
19 the subject of any agreement earned by any enterprise in
20 which the Authority has invested.
21 ARTICLE 815
22 LAND BANK FUND
23 Section 815-5. Findings and Declaration of Policy. It is
24 hereby found and declared that there exists within the State
25 a condition of substantial and persistent unemployment which
26 is detrimental to the welfare of the people of the State;
27 that the absence of an orderly conversion and development of
28 certain property results in blight, economic dislocation, and
29 additional unemployment; that there exists within the State a
30 significant resource of underutilized property which, if
31 returned to productive economic use, will increase
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1 employment, increase revenues for the State and units of
2 local government, and lead to a more stable economy; that the
3 acquisition, development or disposition of such land or
4 property in conjunction with units of local government, local
5 industrial development agencies and private enterprise in
6 accordance with development plans will stimulate economic
7 development within the State; that the establishment of the
8 Illinois Land Bank Fund and the exercise by the Authority of
9 the powers granted in this Article will promote economic
10 development resulting in increased employment and public
11 revenues; and that the provisions of this Act are hereby
12 declared to be in the public interest and benefit and a valid
13 public purpose.
14 Section 815-10. Definitions. The following terms,
15 whenever used or referred to in this Article, shall have the
16 following meanings ascribed to them, except where the context
17 clearly requires otherwise:
18 (a) "Property" means land, parcels or combination of
19 parcels, structures, and all improvements, easements and
20 franchises;
21 (b) "Redevelopment area" means any property which is a
22 contiguous area of at least 2 acres but less than 160 acres
23 in the aggregate located within one and one-half miles of the
24 corporate limits of a municipality and not included within
25 any municipality, where, (1) if improved, a substantial
26 proportion of the industrial, commercial and residential
27 buildings or improvements are detrimental to the public
28 safety, health, morals or welfare because of a combination of
29 any of the following factors: age; physical configuration;
30 dilapidation; structural or economic obsolescence;
31 deterioration; illegal use of individual structures; presence
32 of structures below minimum code standards; excessive and
33 sustained vacancies; overcrowding of structures and community
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1 facilities; inadequate ventilation, light, sewer, water,
2 transportation and other infrastructure facilities;
3 inadequate utilities; excessive land coverage; deleterious
4 land use or layout; depreciation or lack of physical
5 maintenance; and lack of community planning; or (2) if
6 vacant, the sound utilization of land for industrial projects
7 is impaired by a combination of 2 or more of the following
8 factors: obsolete platting of the vacant land; diversity of
9 ownership of such land; tax and special assessment
10 delinquencies on such land; and deterioration of structures
11 or site improvements in neighboring areas to the vacant land,
12 or the area immediately prior to becoming vacant qualified as
13 a redevelopment improved area; or (3) if an improved area
14 within the boundaries of a development project is located
15 within the corporate limits of the municipality in which 50%
16 or more of the structures in the area have an age of 35 years
17 or more, such area does not qualify under clause (1) but is
18 detrimental to the public safety, health, morals or welfare
19 and such area may become a redevelopment area pursuant to
20 clause (1) because of a combination of 3 or more of the
21 factors specified in clause (1).
22 (c) "Enterprise" means an individual, corporation,
23 partnership, joint venture, trust, estate or unincorporated
24 association;
25 (d) "Development plan" means the comprehensive program of
26 the Authority and the participating entity to reduce or
27 eliminate those conditions the existence of which qualified
28 the project area as a redevelopment area. Each development
29 plan shall set forth in writing the program to be undertaken
30 to accomplish such objectives and shall include, without
31 limitation, estimated development project costs, the sources
32 of funds to pay costs, the nature and term of any obligations
33 to be issued, the most recent equalized assessed valuation of
34 the project area, an estimate as to the equalized assessed
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1 valuation after development and the general land uses to
2 apply in the project area.
3 (e) "Development project" means any project in
4 furtherance of the objectives of a development plan,
5 including any building or buildings or building addition or
6 other structures to be newly constructed, renovated or
7 improved and suitable for use by an enterprise as an
8 industrial project, and includes the sites and other rights
9 in the property on which such buildings or structures are
10 located.
11 (f) "Participating entity" means a municipality, a local
12 industrial development agency or an enterprise or any
13 combination thereof.
14 Section 815-15. Illinois Land Bank Fund; Creation; Use.
15 There is hereby created the Illinois Land Bank Fund,
16 hereafter referred to in Sections 815-15 through 815-30 of
17 this Act as the "Fund". The Treasurer of the Authority shall
18 have custody of the Fund, which shall be held outside of the
19 State treasury. The Authority is authorized to accept any and
20 all grants, loans, subsidies, matching funds, reimbursements,
21 appropriations, transfers of appropriations, federal grant
22 monies, income derived from investments, or other things of
23 value from the federal or state governments or units of local
24 government or any agency thereof or from an enterprise for
25 deposit in the Fund. The Authority is authorized to use
26 monies deposited in the Fund expressly for the purposes
27 specified in and according to the procedures established by
28 Sections 815-20 through 815-30 of this Act.
29 Section 815-20. Powers and Duties.
30 (a) The Authority shall have the following powers with
31 respect to redevelopment areas:
32 (1) To acquire and possess property in a
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1 redevelopment area;
2 (2) To clear any such areas so acquired by
3 demolition of existing structures and buildings and to
4 make necessary improvements to the property essential to
5 its reuse in conformity with a development plan; and
6 (3) To convey property for use in accordance with a
7 development plan.
8 (b) Before acquiring property under this Section the
9 Authority shall hold a public hearing after notice published
10 in a newspaper of general circulation in the county in which
11 the property is located and shall find:
12 (1) The property is in a redevelopment area;
13 (2) Such acquisition or possession is necessary or
14 reasonably required to retain existing enterprises or
15 attract new enterprises and to promote sound economic
16 growth and to carry out the purposes of Section 815-5
17 through 815-30 of this Act;
18 (3) The assembly of property is not unduly
19 competitive with similar assemblies by private enterprise
20 in the area or surrounding areas; and
21 (4) The participating entity, without the
22 involvement of the Authority, would be unlikely,
23 unwilling or unable to undertake such redevelopment of
24 the property as was necessary for economic development.
25 (c) No property may be acquired by the Authority unless
26 the acquisition is consented to by resolution of the
27 corporate authorities of the municipality with jurisdiction
28 over the property under Section 11-12-6 of the Municipal
29 Code.
30 (d) The Authority may acquire any interest in property in
31 a redevelopment area by purchase, lease, or gift, but shall
32 not have the power of condemnation.
33 (e) No property shall be acquired under this Section
34 unless the Authority has adopted a development plan under the
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1 provisions of Section 815-25.
2 Section 815-25. Development Plans.
3 (a) No development plan shall be approved by the
4 Authority unless after a public hearing held upon notice
5 published in a newspaper of general circulation in the county
6 where the property is located, the Authority finds:
7 (1) The plan provides for projects which will reduce
8 unemployment;
9 (2) The redevelopment area on the whole has not been
10 subject to growth and development through investment by
11 private enterprise and would not reasonably be
12 anticipated to be developed without the adoption of the
13 development plan;
14 (3) The corporate authorities of the municipality
15 with jurisdiction over the property under Section 11-12-6
16 of the Municipal Code have by resolution found that the
17 development plan conforms to the comprehensive plan of
18 the municipality;
19 (4) A participating entity has agreed to enter into
20 such contracts and other agreements as are necessary to
21 acquire, redevelop and improve the property in accordance
22 with the development plan;
23 (5) The acquisition of the property, its possession
24 and ultimate use according to the development plan can be
25 financed by participating entities and the Authority and
26 the development plan will be completed and all
27 obligations of the Authority incurred in connection with
28 the redevelopment plan will be retired within 20 years
29 from the Authority's approval of the development plan;
30 and
31 (6) The development plan meets such other
32 requirements as the Authority may establish by rule.
33 (b) The Authority may dispose of any property which is
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1 the subject of a development plan in such manner, whether by
2 sale, lease or otherwise, and for such price, rental or other
3 consideration, including an amount not less than 2/3 of its
4 acquisition cost, payable over such term, and bearing
5 interest as to deferred payments, and secured in such manner,
6 by mortgage or otherwise, all as the Authority shall provide
7 in the development plan.
8 (c) Pending disposition of such land, any existing
9 property acquired by the Authority in the course of carrying
10 out the provisions of this Act may be adequately and properly
11 preserved, and may be maintained, leased or administered by
12 the Authority by a contract made by the Authority with any
13 participating entity, enterprise or individual with
14 experience in the area of property development, management or
15 administration.
16 (d) Whenever the Authority shall have approved a
17 development plan, the Authority may amend the development
18 plan from time to time in conformity with this Section.
19 Section 815-30. Local Planning; Relocation Costs. The
20 Authority may arrange or contract with a municipality or
21 municipalities for the planning, re-planning, opening,
22 grading or closing of streets, roads, alleys or other places
23 or for the furnishing of facilities or for the acquisition by
24 the municipality or municipalities of property or property
25 rights or for the furnishing of property or services in
26 connection with a development project or projects. The
27 Authority is hereby authorized to pay the reasonable
28 relocation costs, up to a total of $25,000 per relocatee, of
29 persons and businesses displaced as a result of carrying out
30 a development plan as authorized by this Article.
31 ARTICLE 820
32 LOCAL GOVERNMENT
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1 Section 820-5. Findings and Declaration of Policy. It is
2 hereby found and declared that there exists an urgent need to
3 upgrade and expand the capital facilities, infrastructure and
4 public purpose projects of units of local government and to
5 promote other public purposes to be carried out by units of
6 local government; that federal funding reductions combined
7 with shifting economic conditions have impeded efforts by
8 units of local governments to provide the necessary
9 improvements to their capital facilities, infrastructure
10 systems and public purpose projects and to accomplish other
11 public purposes in recent years; that adequate and
12 well-maintained capital facilities, infrastructure systems
13 and public purpose projects throughout this State and the
14 performance of other public purposes by units of local
15 government throughout this State can offer significant
16 economic benefits and an improved quality of life for all
17 citizens of this State; that the exercise by the Authority of
18 the powers granted in this Article will promote economic
19 development by enhancing the capital stock of units of local
20 governments and will facilitate the accomplishment of other
21 public purposes by units of local government; that
22 authorizing the Authority to borrow money in the public and
23 private capital markets in order to provide money to purchase
24 or otherwise acquire obligations of units of local government
25 will assist such units of local government in borrowing money
26 to finance and refinance the public purpose projects, capital
27 facilities and infrastructure of the units and to finance
28 other public purposes of such units of local government, in
29 providing access to adequate capital markets and facilities
30 for borrowing money by such units of local government, in
31 encouraging continued investor interest in the obligations of
32 such units of local government, in providing for the orderly
33 marketing of the obligations of such units of local
34 government, and in achieving lower overall borrowing cost and
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1 more favorable terms for such borrowing; and that the
2 provisions of this Article are hereby declared to be in the
3 public interest and for the public benefit.
4 Section 820-10. Definitions. The following words or
5 terms, whenever used or referred to in this Article, shall
6 have the following meanings ascribed to them, except where
7 the context clearly requires otherwise:
8 (a) "Department" means the Illinois Department of
9 Commerce and Economic Opportunity.
10 (b) "Unit of local government" means any unit of local
11 government, as defined in Article VII, Section 1 of the 1970
12 State Constitution and any local public entity as that term
13 is defined by the Local Governmental and Governmental
14 Employees Tort Immunity Act and also includes the State and
15 any instrumentality, office, officer, department, division,
16 bureau, commission, college or university thereof.
17 (c) "Energy conservation project" means any improvement,
18 repair, alteration or betterment of any building or facility
19 or any equipment, fixture or furnishing including its energy
20 using mechanical devices to be added to or used in any
21 building or facility that the Director of the Department has
22 certified to the Authority will be a cost-effective
23 energy-related project that will lower energy or utility
24 costs in connection with the operation or maintenance of such
25 building or facility, and will achieve energy cost savings
26 sufficient to cover bond debt service and other project costs
27 within 10 years from the date of project installation.
28 Section 820-15. Creation of Reserve Funds. The Authority
29 may establish and maintain one or more reserve funds in which
30 there may be one or more accounts in which there may be
31 deposited:
32 (a) Any proceeds of bonds issued by the Authority
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1 required to be deposited therein by the terms of any contract
2 between the Authority and its bondholders or any resolution
3 of the Authority;
4 (b) Any other moneys or funds of the Authority which it
5 may determine to deposit therein from any other source; and
6 (c) Any other moneys or funds made available to the
7 Authority, including without limitation any proceeds of any
8 local government security or any taxes or revenues, rates,
9 charges, assessments, grants, or other funds pledged or
10 assigned to pay, repay or secure any local government
11 security. Subject to the terms of any pledge to the owners of
12 any bond, moneys in any reserve fund may be held and applied
13 to the payment of the interest, premium, if any, or principal
14 of bonds or local government securities or for any other
15 purpose authorized by the Authority.
16 Section 820-20. Powers and Duties; Illinois Local
17 Government Financing Assistance Program. The Authority has
18 the power:
19 (a) To purchase from time to time pursuant to negotiated
20 sale or to otherwise acquire from time to time any local
21 government securities issued by one or more units of local
22 government upon such terms and conditions as the Authority
23 may prescribe;
24 (b) To issue bonds in one or more series pursuant to one
25 or more resolutions of the Authority for any purpose
26 authorized under this Article, including without limitation
27 purchasing or acquiring local government securities,
28 providing for the payment of any interest deemed necessary on
29 such bonds, paying for the cost of issuance of such bonds,
30 providing for the payment of the cost of any guarantees,
31 letters of credit, insurance contracts or other similar
32 credit support or liquidity instruments, or providing for the
33 funding of any reserves deemed necessary in connection with
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1 such bonds and refunding or advance refunding of any such
2 bonds and the interest and any premium thereon, pursuant to
3 this Act;
4 (c) To provide for the funding of any reserves or other
5 funds or accounts deemed necessary by the Authority in
6 connection with any bonds issued by the Authority or local
7 government securities purchased or otherwise acquired by the
8 Authority;
9 (d) To pledge any local government security, including
10 any payments thereon, and any other funds of the Authority or
11 funds made available to the Authority which may be applied to
12 such purpose, as security for any bonds or any guarantees,
13 letters of credit, insurance contracts or similar credit
14 support or liquidity instruments securing the bonds;
15 (e) To enter into agreements or contracts with third
16 parties, whether public or private, including without
17 limitation the United States of America, the State, or any
18 department or agency thereof to obtain any appropriations,
19 grants, loans or guarantees which are deemed necessary or
20 desirable by the Authority. Any such guarantee, agreement or
21 contract may contain terms and provisions necessary or
22 desirable in connection with the program, subject to the
23 requirements established by this Article;
24 (f) To charge reasonable fees to defray the cost of
25 obtaining letters of credit, insurance contracts or other
26 similar documents, and to charge such other reasonable fees
27 to defray the cost of trustees, depositories, paying agents,
28 bond registrars, escrow agents and other administrative
29 expenses. Any such fees shall be payable by units of local
30 government whose local government securities are purchased or
31 otherwise acquired by the Authority pursuant to this Article,
32 in such amounts and at such times as the Authority shall
33 determine, and the amount of the fees need not be uniform
34 among the various units of local government whose local
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1 government securities are purchased or otherwise acquired by
2 the Authority pursuant to this Article;
3 (g) To obtain and maintain guarantees, letters of credit,
4 insurance contracts or similar credit support or liquidity
5 instruments which are deemed necessary or desirable in
6 connection with any bonds or other obligations of the
7 Authority or any local government securities;
8 (h) To establish application fees and other service fees
9 and prescribe application, notification, contract, agreement,
10 security and insurance forms and rules and regulations it
11 deems necessary or appropriate;
12 (i) To provide technical assistance, at the request of
13 any unit of local government, with respect to the financing
14 or refinancing for any public purpose. In fulfillment of this
15 purpose, the Authority may request assistance from the
16 Department as necessary; any unit of local government that is
17 experiencing either a financial emergency as defined in the
18 Local Government Financial Planning and Supervision Act or a
19 condition of fiscal crisis evidenced by an impaired ability
20 to obtain financing for its public purpose projects from
21 traditional financial channels or impaired ability to fully
22 fund its obligations to fire, police and municipal employee
23 pension funds, or to bond payments or reserves, may request
24 technical assistance from the Authority in the form of a
25 diagnostic evaluation of its financial condition;
26 (j) To purchase any obligations of the Authority issued
27 pursuant to this Article;
28 (k) To sell, transfer or otherwise dispose of local
29 government securities purchased or otherwise acquired by the
30 Authority pursuant to this Article, including without
31 limitation, the sale, transfer or other disposition of
32 undivided fractionalized interests in the right to receive
33 payments of principal and premium, if any, or the right to
34 receive payments of interest or the right to receive payments
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1 of principal of and premium, if any, and interest on pools of
2 such local government securities;
3 (l) To acquire, purchase, lease, sell, transfer and
4 otherwise dispose of real and personal property, or any
5 interest therein, and to issue its bonds and enter into
6 leases, contracts and other agreements with units of local
7 government in connection with such acquisitions, purchases,
8 leases, sales and other dispositions of such real and
9 personal property;
10 (m) To make loans to banks, savings and loans and other
11 financial institutions for the purpose of purchasing or
12 otherwise acquiring local government securities, and to issue
13 its bonds, and enter into agreements and contracts in
14 connection with such loans;
15 (n) To enter into agreements or contracts with any person
16 necessary or appropriate to place the payment obligations of
17 the Authority under any of its bonds in whole or in part on
18 any interest rate basis, cash flow basis, or other basis
19 desired by the Authority, including without limitation
20 agreements or contracts commonly known as "interest rate swap
21 agreements", "forward payment conversion agreements", and
22 "futures", or agreements or contracts to exchange cash flows
23 or a series of payments, or agreements or contracts,
24 including without limitation agreements or contracts commonly
25 known as "options", "puts" or "calls", to hedge payment, rate
26 spread, or similar exposure; provided, that any such
27 agreement or contract shall not constitute an obligation for
28 borrowed money, and shall not be taken into account under
29 Section 845-5 of this Act or any other debt limit of the
30 Authority or the State of Illinois;
31 (o) To make and enter into all other agreements and
32 contracts and execute all instruments necessary or incidental
33 to performance of its duties and the execution of its powers
34 under this Article;
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1 (p) To contract for and finance the costs of energy
2 audits, project-specific engineering and design
3 specifications, and any other related analyses preliminary to
4 an energy conservation project; and, to contract for and
5 finance the cost of project monitoring and data collection to
6 verify post-installation energy consumption and
7 energy-related operating costs. Any such contract shall be
8 executed only after it has been jointly negotiated by the
9 Authority and the Department; and
10 (q) To exercise such other powers as are necessary or
11 incidental to the foregoing.
12 Section 820-25. Unit of Local Government Participation.
13 Any unit of local government is authorized to voluntarily
14 participate in this program. Any unit of local government
15 which is authorized to issue, sell and deliver its local
16 government securities under any provision of the Constitution
17 or laws of the State may issue, sell and deliver such local
18 government securities to the Authority under this Article;
19 provided that and notwithstanding any other provision of law
20 to the contrary, any such unit of local government may issue
21 and sell any such local government security at any interest
22 rate or rates, which rate or rates may be established by an
23 index or formula which may be implemented by persons
24 appointed or retained therefor, payable at such time or
25 times, and at such price or prices to which the unit of local
26 government and the Authority may agree. Any unit of local
27 government may pay any amount charged by the Authority
28 pursuant to this Article. Any unit of local government
29 participating in this program may pay out of the proceeds of
30 its local government securities or out of any other moneys or
31 funds available to it for such purposes any costs, fees,
32 interest deemed necessary, premium or reserves incurred or
33 required for financing or refinancing this program, including
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1 without limitation any fees charged by the Authority pursuant
2 to this Article and its share, as determined by the
3 Authority, of any costs, fees, interest deemed necessary,
4 premium or reserves incurred or required pursuant to Section
5 820-20 of this Act. All local government securities purchased
6 or otherwise acquired by the Authority pursuant to this Act
7 shall upon delivery to the Authority be accompanied by an
8 approving opinion of bond counsel as to the validity of such
9 securities. The Authority shall have discretion to purchase
10 or otherwise acquire those local government securities, as it
11 shall deem to be in the best interest of its financing
12 program for all units of local government taken as a whole.
13 Section 820-30. Criteria for Participation in the
14 Program. If the Authority requires an application for
15 participation in the Program, upon submission of any such
16 application, the Authority or any entity on behalf of the
17 Authority shall review such application for its completeness
18 and may, at its discretion, accept or reject such application
19 or request such additional information as it deems necessary
20 or advisable to aid its review. In the course of its review,
21 the Authority may consider but shall not be limited to the
22 following factors:
23 (a) Whether the public purpose for which the local
24 government security is to be issued will have a significant
25 impact on the economy, environment, health or safety of the
26 unit of local government;
27 (b) The extent to which the public purpose for which the
28 local government security is to be issued will provide
29 reinforcement for other community and economic development
30 related investments by such units of local government;
31 (c) The creditworthiness of the unit of local government
32 and the local government security, including, without
33 limitation, the ability of the unit of local government to
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1 comply with the credit requirements of the provider of any
2 guarantees, letters of credit, insurance contracts or other
3 similar credit support or liquidity instruments; and
4 (d) Such other factors as deemed necessary by the
5 Authority which are consistent with the intent of this Act.
6 Section 820-35. The Authority shall assist the Department
7 to establish and implement a program to assist units of local
8 government to identify and arrange financing for energy
9 conservation projects in buildings and facilities owned or
10 leased by units of local government. Such bonds shall not
11 constitute an indebtedness or obligation of the State of
12 Illinois and it shall be plainly stated on the face of each
13 bond that it does not constitute such an indebtedness or
14 obligation but is payable solely from the revenues, income or
15 other assets of the Authority pledged therefor.
16 Section 820-40. Investment of Moneys. Any moneys at any
17 time held by the Authority pursuant to this Article shall be
18 held outside the State treasury in the custody of either the
19 Treasurer of the Authority or a trustee or depository
20 appointed by the Authority. Such moneys may be invested in
21 (a) investments authorized by the Public Funds Investment
22 Act, (b) obligations issued by any State, unit of local
23 government or school district, which obligations are rated at
24 the time of purchase by a national rating service within the
25 2 highest rating classifications without regard to any rating
26 refinement or gradation by numerical or other modifier, (c)
27 equity securities of an investment company registered under
28 the Investment Company Act of l940 whose sole assets, other
29 than cash and other temporary investments, are obligations
30 which are eligible investments for the Authority, or (d)
31 investment contracts under which securities are to be
32 purchased and sold at a predetermined price on a future date,
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1 or pursuant to which moneys are deposited with a bank or
2 other financial institution and the deposits are to bear
3 interest at an agreed upon rate, provided that such
4 investment contracts are with a bank or other financial
5 institution whose obligations are rated at the time of
6 purchase by a national rating service within the 2 highest
7 rating classifications without regard to any rating
8 refinement or gradation by numerical or other modifier. The
9 interest, dividends or other earnings from such investments
10 may be used to pay administrative costs of the Authority
11 incurred in administering the program or trustee or
12 depository fees incurred in connection with such program.
13 Section 820-45. Pledge of Revenues by the Authority. Any
14 pledge of revenues or other moneys made by the Authority
15 shall be binding from the time the pledge is made. Revenues
16 and other moneys so pledged shall be held outside of the
17 State treasury and in the custody of either the Treasurer of
18 the Authority or a trustee or a depository appointed by the
19 Authority. Revenues or other moneys so pledged and thereafter
20 received by the Authority or such trustee or depository shall
21 immediately be subject to the lien of the pledge without any
22 physical delivery thereof or further act, and the lien of any
23 pledge shall be binding against all parties having claims of
24 any kind of tort, contract or otherwise against the
25 Authority, irrespective of whether the parties have notice
26 thereof. Neither the resolution nor any other instrument by
27 which a pledge is created need be filed or recorded except in
28 the records of the Authority. The State does pledge to and
29 agree with the holders of bonds, and the beneficial owners of
30 the local government securities, that the State will not
31 limit or restrict the rights hereby vested in the Authority
32 to purchase, acquire, hold, sell or dispose of local
33 government securities or other investments or to establish
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1 and collect such fees or other charges as may be convenient
2 or necessary to produce sufficient revenues to meet the
3 expenses of operation of the Authority, and to fulfill the
4 terms of any agreement made with the holders of the bonds or
5 the beneficial owners of the local government securities or
6 in any way impair the rights or remedies of the holders of
7 those bonds or the beneficial owners of the local government
8 securities until such bonds or local government securities
9 are fully paid and discharged or provision for their payment
10 has been made.
11 Section 820-50. Pledge of Funds by Units of Local
12 Government.
13 (a) Pledge of Funds. Any unit of local government which
14 receives funds from the Department of Revenue, including
15 without limitation funds received pursuant to Sections
16 8-11-1, 8-11-1.4, 8-11-5 or 8-11-6 of the Illinois Municipal
17 Code, the Home Rule County Retailers' Occupation Tax Act, the
18 Home Rule County Service Occupation Tax Act, Sections
19 25.05-2, 25.05-3 or 25.05-10 of "An Act to revise the law in
20 relation to counties", Section 5.01 of the Local Mass Transit
21 District Act, Section 4.03 of the Regional Transportation
22 Authority Act, Sections 2 or 12 of the State Revenue Sharing
23 Act, or from the Department of Transportation pursuant to
24 Section 8 of the Motor Fuel Tax Law, or from the State
25 Superintendent of Education (directly or indirectly through
26 regional superintendents of schools) pursuant to Article 18
27 of the School Code, or any unit of government which receives
28 other funds which are at any time in the custody of the State
29 Treasurer, the State Comptroller, the Department of Revenue,
30 the Department of Transportation or the State Superintendent
31 of Education may by appropriate proceedings, pledge to the
32 Authority or any entity acting on behalf of the Authority
33 (including, without limitation, any trustee), any or all of
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1 such receipts to the extent that such receipts are necessary
2 to provide revenues to pay the principal of, premium, if any,
3 and interest on, and other fees related to, or to secure, any
4 of the local government securities of such unit of local
5 government which have been sold or delivered to the Authority
6 or its designee or to pay lease rental payments to be made by
7 such unit of local government to the extent that such lease
8 rental payments secure the payment of the principal of,
9 premium, if any, and interest on, and other fees related to,
10 any local government securities which have been sold or
11 delivered to the Authority or its designee. Any pledge of
12 such receipts (or any portion thereof) shall constitute a
13 first and prior lien thereon and shall be binding from the
14 time the pledge is made.
15 (b) Direct Payment of Pledged Receipts. Any such unit of
16 local government may, by such proceedings, direct that all or
17 any of such pledged receipts payable to such unit of local
18 government be paid directly to the Authority or such other
19 entity (including, without limitation, any trustee) for the
20 purpose of paying the principal of, premium, if any, and
21 interest on, and fees relating to, such local government
22 securities or for the purpose of paying such lease rental
23 payments to the extent necessary to pay the principal of,
24 premium, if any, and interest on, and other fees related to,
25 such local government securities secured by such lease rental
26 payments. Upon receipt of a certified copy of such
27 proceedings by the State Treasurer, the State Comptroller,
28 the Department of Revenue, the Department of Transportation
29 or the State Superintendent of Education, as the case may be,
30 such Department or State Superintendent shall direct the
31 State Comptroller and State Treasurer to pay to, or on behalf
32 of, the Authority or such other entity (including, without
33 limitation, any trustee) all or such portion of the pledged
34 receipts from the Department of Revenue, or the Department of
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1 Transportation or the State Superintendent of Education
2 (directly or indirectly through regional superintendents of
3 schools), as the case may be, sufficient to pay the principal
4 of and premium, if any, and interest on, and other fees
5 related to, the local governmental securities for which the
6 pledge was made or to pay such lease rental payments securing
7 such local government securities for which the pledge was
8 made. The proceedings shall constitute authorization for such
9 a directive to the State Comptroller to cause orders to be
10 drawn and to the State Treasurer to pay in accordance with
11 such directive. To the extent that the Authority or its
12 designee notifies the Department of Revenue, the Department
13 of Transportation or the State Superintendent of Education,
14 as the case may be, that the unit of local government has
15 previously paid to the Authority or its designee the amount
16 of any principal, premium, interest and fees payable from
17 such pledged receipts, the State Comptroller shall cause
18 orders to be drawn and the State Treasurer shall pay such
19 pledged receipts to the unit of local government as if they
20 were not pledged receipts. To the extent that such receipts
21 are pledged and paid to the Authority or such other entity,
22 any taxes which have been levied or fees or charges assessed
23 pursuant to law on account of the issuance of such local
24 government securities shall be paid to the unit of local
25 government and may be used for the purposes for which the
26 pledged receipts would have been used.
27 (c) Payment of Pledged Receipts upon Default. Any such
28 unit of local government may, by such proceedings, direct
29 that such pledged receipts payable to such unit of local
30 government be paid to the Authority or such other entity
31 (including, without limitation, any trustee) upon a default
32 in the payment of any principal of, premium, if any, or
33 interest on, or fees relating to, any of the local government
34 securities of such unit of local government which have been
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1 sold or delivered to the Authority or its designee or any of
2 the local government securities which have been sold or
3 delivered to the Authority or its designee and which are
4 secured by such lease rental payments. If such local
5 governmental security is in default as to the payment of
6 principal thereof, premium, if any, or interest thereon, or
7 fees relating thereto, to the extent that the State
8 Treasurer, the State Comptroller, the Department of Revenue,
9 the Department of Transportation or the State Superintendent
10 of Education (directly or indirectly through regional
11 superintendents of schools) shall be the custodian at any
12 time of any other available funds or moneys pledged to the
13 payment of such local government securities or such lease
14 rental payments securing such local government securities
15 pursuant to this Section and due or payable to such a unit of
16 local government at any time subsequent to written notice to
17 the State Comptroller and State Treasurer from the Authority
18 or any entity acting on behalf of the Authority (including,
19 without limitation, any trustee) to the effect that such unit
20 of local government has not paid or is in default as to
21 payment of the principal of, premium, if any, or interest on,
22 or fees relating to, any local government security sold or
23 delivered to the Authority or any such entity (including,
24 without limitation, any trustee) or has not paid or is in
25 default as to the payment of such lease rental payments
26 securing the payment of the principal of, premium, if any, or
27 interest on, or other fees relating to, any local government
28 security sold or delivered to the Authority or such other
29 entity (including, without limitation, any trustee):
30 (i) The State Comptroller and the State Treasurer
31 shall withhold the payment of such funds or moneys from
32 such unit of local government until the amount of such
33 principal, premium, if any, interest or fees then due and
34 unpaid has been paid to the Authority or any such entity
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1 (including, without limitation, any trustee), or the
2 State Comptroller and the State Treasurer have been
3 advised that arrangements, satisfactory to the Authority
4 or such entity, have been made for the payment of such
5 principal, premium, if any, interest and fees; and
6 (ii) Within 10 days after a demand for payment by
7 the Authority or such entity given to such unit of local
8 government, the State Treasurer and the State
9 Comptroller, the State Treasurer shall pay such funds or
10 moneys as are legally available therefor to the Authority
11 or such entity for the payment of principal of, premium,
12 if any, or interest on, or fees relating to, such local
13 government securities. The Authority or any such entity
14 may carry out this Section and exercise all the rights,
15 remedies and provisions provided or referred to in this
16 Section.
17 (d) Remedies. Upon the sale or delivery of any local
18 government securities of the Authority or its designee, the
19 local government which issued such local government
20 securities shall be deemed to have agreed that upon its
21 failure to pay interest or premium, if any, on, or principal
22 of, or fees relating to, the local government securities sold
23 or delivered to the Authority or any entity acting on behalf
24 of the Authority (including, without limitation, any trustee)
25 when payable, all statutory defenses to nonpayment are
26 thereby waived. Upon a default in payment of principal of or
27 interest on any local government securities issued by a unit
28 of local government and sold or delivered to the Authority or
29 its designee, and upon demand on the unit of local government
30 for payment, if the local government securities are payable
31 from property taxes and funds are not legally available in
32 the treasury of the unit of local government to make payment,
33 an action in mandamus for the levy of a tax by the unit of
34 local government to pay the principal of or interest on the
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1 local government securities shall lie, and the Authority or
2 such entity shall be constituted a holder or owner of the
3 local government securities as being in default. Upon the
4 occurrence of any failure or default with respect to any
5 local government securities issued by a unit of local
6 government, the Authority or such entity may thereupon avail
7 itself of all remedies, rights and provisions of law
8 applicable in the circumstances, and the failure to exercise
9 or exert any rights or remedies within a time or period
10 provided by law may not be raised as a defense by the unit of
11 local government.
12 Section 820-55. Eligible Investments. Bonds, issued by
13 the Authority pursuant to the provisions of this Article,
14 shall be permissible investments within the provisions of
15 Section 805-40 of this Act.
16 Section 820-60. Tax Exemption. The exercise of powers
17 granted in this Article is in all respects for the benefit of
18 the people of Illinois and in consideration thereof the bonds
19 issued pursuant to the aforementioned Sections and the income
20 therefrom shall be free from all taxation by the State or its
21 political subdivisions, except for estate, transfer and
22 inheritance taxes. For purposes of Section 250 of the
23 Illinois Income Tax Act, the exemption of the income from
24 bonds issued under the aforementioned Sections shall
25 terminate after all of the bonds have been paid. The amount
26 of such income that shall be added and then subtracted on the
27 Illinois income tax return of a taxpayer, pursuant to Section
28 203 of the Illinois Income Tax Act, from federal adjusted
29 gross income or federal taxable income in computing Illinois
30 base income shall be the interest net of any bond premium
31 amortization.
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1 ARTICLE 825
2 OTHER POWERS
3 Section 825-5. Motion Picture Production Program;
4 Findings and Declaration of Policy. It is hereby found and
5 declared that the production of motion pictures has an
6 enormous potential for contributing to the economic
7 well-being of the State and its communities; that a critical
8 mass of movie productions is essential to the continuing
9 viability of this fledgling industry in Illinois; that to
10 achieve this critical mass, a financial inducement to attract
11 movie productions to the State is required; and that the
12 provisions of this Act are hereby declared to be in the
13 public interest and for the public benefit.
14 Section 825-10. The Authority may develop a program for
15 financing the production of motion pictures in the State of
16 Illinois. All projects financed by the Authority shall
17 require the approval of both the Illinois Arts Council and
18 the Authority.
19 Section 825-15. Credit Enhancement Development Fund.
20 (a) There is hereby created the Credit Enhancement
21 Development Fund in the Authority. The Treasurer shall have
22 custody of the fund, which shall be held outside the State
23 treasury. Custody may be transferred to and held by any
24 fiduciary with whom the Authority executes a trust agreement.
25 All or any portion of such amounts may be used (i) to pay
26 principal, interest and premium, if any, on any bonds issued
27 by the Authority or to fund any reserves or accounts created
28 for such purpose, (ii) to pay the cost of any letter of
29 credit, insurance or third party guarantee provided with
30 respect to any bond issued by the Authority or loan made by
31 the Authority, (iii) to guarantee or otherwise enhance the
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1 credit of any bond issued by the Authority or loan made by
2 the Authority, or (iv) to make loans to any person,
3 corporation or unit of local government for any project
4 authorized to be financed by the Authority under this Act.
5 (b) The Authority shall report to the Governor and the
6 General Assembly no later than June 1, 2004, on the extent to
7 which its use of monies in this Fund has enhanced the
8 creditworthiness of its bonds issued or loans made with
9 respect to any person, thereby reducing the cost of financing
10 projects authorized by this Act.
11 Section 825-20. Financially Distressed City Assistance
12 Program; Findings and Declarations of Policy. It is hereby
13 found and declared that there exists an urgent need to reduce
14 involuntary unemployment and economic stagnation within
15 financially distressed cities and to create therein a more
16 favorable economic climate for the development of new and
17 improved employment opportunities for the citizens of such
18 cities; that to address such need it is necessary to promote
19 sound financial management and fiscal integrity within such
20 cities in order to provide a secure financial basis for their
21 continued operation; and that implementation of a financially
22 distressed city assistance program under the provisions of
23 this Act is declared to be in the public interest and for the
24 public benefit.
25 Section 825-25. Definition. As used in Sections 825-20
26 through 825-60 of this Act, the term "financially distressed
27 city" means a unit of local government which has been
28 certified and designated as a financially distressed city
29 under Section 8-12-4 of the Illinois Municipal Code and to
30 which the provisions of Division 12 of Article 8 of that Code
31 have become applicable as provided by that Section 8-12-4.
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1 Section 825-30. Powers and Duties; Financing.
2 (a) Upon application of the financial advisory authority
3 established for a financially distressed city under Division
4 12 of Article 8 of the Illinois Municipal Code, the Authority
5 shall have the power to issue its bonds, notes or other
6 evidences of indebtedness, the proceeds of which are to be
7 used to make loans to a financially distressed city for
8 purposes of enabling that city to restructure its current
9 indebtedness and to provide and pay for its essential
10 municipal services as determined in a manner consistent with
11 Division 12 of Article 8 of the Illinois Municipal Code by
12 the financial advisory authority established for that city
13 under that Division 12.
14 (b) Bonds authorized to be issued by the Authority under
15 Sections 825-20 through 825-60 shall be payable from such
16 revenues, income, funds and accounts of the financially
17 distressed city which receives a loan of any proceeds of the
18 bonds so issued as the Authority shall determine and
19 prescribe in the loan agreement.
20 (c) The Authority may prescribe the form and contents of
21 any application submitted under subsection (a) of this
22 Section and may, at its discretion, accept or reject such
23 application or require such additional information as it
24 deems necessary to aid in its review and determination of
25 whether it will issue its bonds and loan the proceeds thereof
26 as authorized under Sections 825-20 through 825-60.
27 (d) The amount of bonds issued or proceeds thereof loaned
28 by the Authority with respect to an application which the
29 Authority has approved shall be determined by the Authority.
30 (e) The financially distressed city receiving a loan
31 under Sections 825-20 through 825-60 shall enter into a loan
32 agreement in the form and manner prescribed by the Authority,
33 and shall pay back to the Authority the principal amount of
34 the loan, plus annual interest as determined by the
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1 Authority. The Authority shall have the power, subject to
2 appropriations by the General Assembly, to subsidize or buy
3 down a portion of the interest on such loans, up to 4% per
4 annum.
5 (f) The Authority shall create and establish a debt
6 service reserve fund to be maintained by a trustee separate
7 and segregated from all other funds and accounts of the
8 Authority. This reserve fund shall be initially funded by a
9 contribution of State monies.
10 (g) The amount to be accumulated in the debt service
11 reserve fund shall be determined by the Authority but shall
12 not exceed the maximum amount of interest, principal and
13 sinking fund installments due in any succeeding calendar
14 year.
15 Section 825-35. Pledge of Funds. Any financially
16 distressed city which receives funds from the Department of
17 Revenue, including without limitation funds received pursuant
18 to Section 8-11-1, 8-11-5 or 8-11-6 of the Illinois Municipal
19 Code or Section 2 or 12 of the State Revenue Sharing Act, or
20 from the Department of Transportation pursuant to Section 8
21 of the Motor Fuel Tax Law, may, by appropriate proceedings,
22 pledge to the Authority, or any entity acting on behalf of
23 the Authority (including, without limitation, any trustee),
24 any or all of such receipts to the extent that such receipts
25 are determined by the Authority to be necessary to provide
26 revenues to pay or secure the payment of the principal of,
27 premium, if any, and interest on any of the bonds issued on
28 behalf of, or loans made to, the financially distressed city
29 by the Authority under Sections 825-20 through 825-60. The
30 adoption of such proceedings shall constitute a directive to
31 the State Comptroller and State Treasurer to pay to, or on
32 behalf of, the Authority or such other entity (including,
33 without limitation, any trustee) such portion of the pledged
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1 receipts from the Department of Revenue or Department of
2 Transportation, as the case may be, and with the State
3 Comptroller and the State Treasurer. With respect to any
4 bonds issued on behalf of, or loans made to, the financially
5 distressed city by the Authority under Sections 825-20
6 through 825-60, which are in default in the payment of
7 principal, premium, if any, or interest, to the extent that
8 the State Treasurer, the State Comptroller, the Department of
9 Revenue or the Department of Transportation shall be the
10 custodian at any time of any other available funds or moneys
11 pledged to the payment of such local government securities or
12 such lease rental payments securing such local government
13 securities pursuant to this Section and due or payable to
14 such a unit of local government at any time subsequent to
15 written notice to the State Comptroller and State Treasurer
16 from the Authority or any entity acting on behalf of the
17 Authority (including, without limitation, any trustee) to the
18 effect that such financially distressed city has not paid or
19 is in default as to payment of the principal of, premium, if
20 any, or interest on any bonds issued on behalf of, or loans
21 made to, the financially distressed city by the Authority
22 under Sections 825-20 through 825-60:
23 (a) The State Comptroller and the State Treasurer shall
24 withhold the payment of such funds or moneys from the
25 financially distressed city until the amount of such
26 principal, premium, if any, and interest then due and unpaid
27 has been paid to the Authority or such entity acting on
28 behalf of the Authority (including, without limitation, any
29 trustee), or the State Comptroller or State Treasurer have
30 been advised that arrangements, satisfactory to the Authority
31 or such entity, have been made for the payment of such
32 principal, premium, if any, and interest; and
33 (b) Within 10 days after a demand for payment by the
34 Authority or such entity is given to the State Treasurer and
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1 the State Comptroller, the State Treasurer shall pay such
2 funds or moneys as are legally available therefor to the
3 Authority or such entity for the payment of principal,
4 premium, if any, and interest on such bonds or loans. The
5 Authority or such entity may carry out this Section and
6 exercise all the rights, remedies and provisions provided or
7 referred to in this Section.
8 Section 825-40. Additional security. In the event that
9 the Authority determines that funds pledged, intercepted or
10 otherwise received or to be received by the Authority under
11 Section 825-20 of this Act will not be sufficient for the
12 payment of the principal, premium, if any, and interest
13 during the next State fiscal year on any bonds issued by the
14 Authority under Sections 825-20 through 825-60, the Chairman,
15 as soon as is practicable, shall certify to the Governor the
16 amount required by the Authority to enable it to pay the
17 principal, premium, if any, and interest falling due on such
18 bonds. The Governor shall submit the amount so certified to
19 the General Assembly as soon as practicable, but no later
20 than the end of the current State fiscal year. This paragraph
21 shall not apply to any bonds as to which the Authority shall
22 have determined, in the resolution authorizing their
23 issuance, that this paragraph shall not apply. Whenever the
24 Authority makes such a determination, that fact shall be
25 plainly stated on the face of such bonds and that fact shall
26 also be reported to the Governor. In the event of a
27 withdrawal of moneys from a debt service reserve fund
28 established with respect to any issue or issues of bonds of
29 the Authority to pay principal and interest on those bonds,
30 the Chairman, as soon as practicable, shall certify to the
31 Governor the amount required to restore such reserve funds to
32 the level required in the resolution or indenture securing
33 the bonds. The Governor shall submit the amount so certified
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1 to the General Assembly as soon as practicable, but not later
2 than the end of the current State fiscal year.
3 Section 825-50. Eligible Investments. Bonds issued by the
4 Authority pursuant to Sections 825-20 through 825-60 shall be
5 permissible investments within the provisions of Section
6 805-40.
7 Section 825-55. Tax Exemption. The exercise of the
8 powers granted in Sections 825-20 through 825-60 are in all
9 respects for the benefit of the people of Illinois, and in
10 consideration thereof shall be free from all taxation by the
11 State or its political subdivisions, except for estate,
12 transfer and inheritance taxes. For the purposes of Section
13 250 of the Illinois Income Tax Act, the exemption of the
14 income from bonds issued under the aforementioned Sections
15 shall terminate after all of the bonds have been paid. The
16 amount of such income that shall be added and then subtracted
17 on the Illinois income tax return of a taxpayer, pursuant to
18 Section 203 of the Illinois Income Tax Act, from federal
19 adjusted gross income or federal taxable income in computing
20 Illinois base income shall be the interest net of any bond
21 premium amortization.
22 Section 825-60. Financially Distressed City Assistance
23 Program Limitation. In addition to the bonds authorized to be
24 issued under Sections 801-40(w), 825-65(e), 830-25 and 845-5,
25 the Authority may have outstanding at any time, bonds for the
26 purposes enumerated in Sections 825-20 through 825-60 in an
27 aggregate principal amount that shall not exceed $50,000,000.
28 Such bonds shall not constitute an indebtedness or obligation
29 of the State of Illinois, and it shall be plainly stated on
30 the face of each bond that it does not constitute such an
31 indebtedness or obligation but is payable solely from the
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1 revenues, income or other assets of the Authority pledged
2 therefor.
3 Section 825-65. Clean Coal and Energy Project Financing.
4 (a) Findings and declaration of policy. It is hereby
5 found and declared that Illinois has abundant coal resources
6 and, in some areas of Illinois, the demand for power exceeds
7 the generating capacity. Incentives to encourage the
8 construction of coal-fired electric generating plants in
9 Illinois to ensure power generating capacity into the future
10 are in the best interests of all of the citizens of Illinois.
11 The Authority is authorized to issue bonds to help finance
12 Clean Coal and Energy projects pursuant to this Section.
13 (b) Definition. "Clean Coal and Energy projects" means
14 new electric generating facilities, as defined in Section
15 605-332 of the Department of Commerce and Economic
16 Opportunity Law of the Civil Administrative Code of Illinois,
17 which may include mine-mouth power plants, projects that
18 employ the use of clean coal technology, projects to provide
19 scrubber technology for existing energy generating plants, or
20 projects to provide electric transmission facilities.
21 (c) Creation of reserve funds. The Authority may
22 establish and maintain one or more reserve funds to enhance
23 bonds issued by the Authority for Clean Coal and Energy
24 projects to develop alternative energy sources, including
25 renewable energy projects, projects to provide scrubber
26 technology for existing energy generating plants or projects
27 to provide electric transmission facilities. There may be one
28 or more accounts in these reserve funds in which there may be
29 deposited:
30 (1) any proceeds of the bonds issued by the
31 Authority required to be deposited therein by the terms
32 of any contract between the Authority and its bondholders
33 or any resolution of the Authority;
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1 (2) any other moneys or funds of the Authority that
2 it may determine to deposit therein from any other
3 source; and
4 (3) any other moneys or funds made available to the
5 Authority. Subject to the terms of any pledge to the
6 owners of any bonds, moneys in any reserve fund may be
7 held and applied to the payment of principal, premium, if
8 any, and interest of such bonds.
9 (d) Powers and duties. The Authority has the power:
10 (1) To issue bonds in one or more series pursuant to
11 one or more resolutions of the Authority for any Clean
12 Coal and Energy projects authorized under this Section,
13 within the authorization set forth in subsections (e) and
14 (f).
15 (2) To provide for the funding of any reserves or
16 other funds or accounts deemed necessary by the Authority
17 in connection with any bonds issued by the Authority.
18 (3) To pledge any funds of the Authority or funds
19 made available to the Authority that may be applied to
20 such purpose as security for any bonds or any guarantees,
21 letters of credit, insurance contracts or similar credit
22 support or liquidity instruments securing the bonds.
23 (4) To enter into agreements or contracts with third
24 parties, whether public or private, including, without
25 limitation, the United States of America, the State or
26 any department or agency thereof, to obtain any
27 appropriations, grants, loans or guarantees that are
28 deemed necessary or desirable by the Authority. Any such
29 guarantee, agreement or contract may contain terms and
30 provisions necessary or desirable in connection with the
31 program, subject to the requirements established by the
32 Act.
33 (5) To exercise such other powers as are necessary
34 or incidental to the foregoing.
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1 (e) Clean Coal and Energy bond authorization and
2 financing limits. In addition to any other bonds authorized
3 to be issued under Sections 801-40(w), 825-60, 830-25 and
4 845-5, the Authority may have outstanding, at any time, bonds
5 for the purpose enumerated in this Section 825-65 in an
6 aggregate principal amount that shall not exceed
7 $2,700,000,000, of which no more than $300,000,000 may be
8 issued to finance transmission facilities, no more than
9 $500,000,000 may be issued to finance scrubbers at existing
10 generating plants, no more than $500,000,000 may be issued to
11 finance alternative energy sources, including renewable
12 energy projects and no more than $1,400,000,000 may be issued
13 to finance new electric generating facilities, as defined in
14 Section 605-332 of the Department of Commerce and Economic
15 Opportunity Law of the Civil Administrative Code of Illinois,
16 which may include mine-mouth power plants. An application for
17 a loan financed from bond proceeds from a borrower or its
18 affiliates for a Clean Coal and Energy project may not be
19 approved by the Authority for an amount in excess of
20 $450,000,000 for any borrower or its affiliates. These bonds
21 shall not constitute an indebtedness or obligation of the
22 State of Illinois and it shall be plainly stated on the face
23 of each bond that it does not constitute an indebtedness or
24 obligation of the State of Illinois, but is payable solely
25 from the revenues, income or other assets of the Authority
26 pledged therefor.
27 (f) Additional Clean Coal and Energy bond authorization
28 and financing limits. In addition to any other bonds
29 authorized to be issued under this Act, the Authority may
30 issue bonds for the purpose enumerated in this Section 825-65
31 in an aggregate principal amount that shall not exceed
32 $300,000,000.
33 Section 825-70. Criteria for participation in the
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1 program. Applications to the Authority for financing of any
2 Clean Coal and Energy project shall be reviewed by the
3 Authority. Upon submission of any such application, the
4 Authority staff shall review the application for its
5 completeness and may, at the discretion of the Authority
6 staff, request such additional information as it deems
7 necessary or advisable to aid in review. If the Authority
8 receives applications for financing for Clean Coal and Energy
9 projects in excess of the bond authorization available for
10 such financing at any one time, it shall consider
11 applications in the order of priority as it shall determine,
12 in consultation with other State agencies.
13 Section 825-75. Additional Security. In the event that
14 the Authority determines that monies of the Authority will
15 not be sufficient for the payment of the principal of and
16 interest on any bonds issued by the Authority under Sections
17 825-65 through 825-75 of this Act for energy generation
18 projects that advance clean coal technology and the use of
19 Illinois coal during the next State fiscal year, the
20 Chairperson, as soon as practicable, shall certify to the
21 Governor the amount required by the Authority to enable it to
22 pay such principal, premium, if any, and interest on such
23 bonds. The Governor shall submit the amount so certified to
24 the General Assembly as soon as practicable, but no later
25 than the end of the current State fiscal year. This
26 subsection shall not apply to any bonds or notes as to which
27 the Authority shall have determined, in the resolution
28 authorizing the issuance of the bonds or notes, that this
29 subsection shall not apply. Whenever the Authority makes such
30 a determination, that fact shall be plainly stated on the
31 face of the bonds or notes and that fact should also be
32 reported to the Governor. In the event of a withdrawal of
33 moneys from a reserve fund established with respect to any
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1 issue or issues of bonds of the Authority to pay principal,
2 premium, if any, and interest on such bonds, the Chairman of
3 the Authority, as soon as practicable, shall certify to the
4 Governor the amount required to restore the reserve fund to
5 the level required in the resolution or indenture securing
6 those bonds. The Governor shall submit the amount so
7 certified to the General Assembly as soon as practicable, but
8 no later than the end of the current State fiscal year. The
9 Authority shall obtain written approval from the Governor for
10 any bonds and notes to be issued under this Section.
11 ARTICLE 830
12 AGRICULTURAL ASSISTANCE
13 Section 830-5. The Authority shall have the following
14 powers:
15 (a) To loan its funds to one or more persons to be used
16 by such persons to pay the costs of acquiring, constructing,
17 reconstructing or improving Agricultural Facilities, soil or
18 water conservation projects or watershed areas, such loans to
19 be on such terms and conditions, and for such period of time,
20 and secured or evidenced by such mortgages, deeds of trust,
21 notes, debentures, bonds or other secured or unsecured
22 evidences of indebtedness of such persons as the Board may
23 determine;
24 (b) To loan its funds to any agribusiness which operates
25 or will operate a facility located in Illinois for those
26 purposes permitted by rules and regulations issued pursuant
27 to the Internal Revenue Code of 1954, as amended, relating to
28 the use of moneys loaned from the proceeds from the issuance
29 of industrial development revenue bonds; such loans shall be
30 on terms and conditions, and for periods of time, and secured
31 or evidenced by mortgages, deeds of trust, notes, debentures,
32 bonds or other secured or unsecured evidences of indebtedness
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1 of such agribusiness as the Board may require;
2 (c) To purchase, or to make commitments to purchase, from
3 lenders notes, debentures, bonds or other evidences of
4 indebtedness secured by mortgages, deeds of trust, or
5 security devices, or unsecured, as the Authority may
6 determine, or portions thereof or participations therein,
7 which notes, bonds, or other evidences of indebtedness shall
8 have been or will be executed by the obligors thereon to
9 obtain funds with which to acquire, by purchase,
10 construction, or otherwise, reconstruct or improve
11 Agricultural Facilities;
12 (d) To contract with lenders or others for the
13 origination of or the servicing of the loans made by the
14 Authority pursuant to this Section or represented by the
15 notes, bonds, or other evidences of indebtedness which it has
16 purchased pursuant to this Section; provided that such
17 servicing fees shall not exceed one percent per annum of the
18 principal amount outstanding owed to the Authority; and
19 (e) To enter into a State Guarantee with a lender or a
20 person holding a note and to sell or issue such State
21 Guarantees, bonds or evidences of indebtedness in a primary
22 or a secondary market.
23 Section 830-10. (a) The Authority shall establish a Farm
24 Debt Relief Program to help provide eligible Illinois farmers
25 with State assistance in meeting their farming-related debts.
26 (b) To be eligible for the program, a person must (1) be
27 actively engaged in farming in this State, (2) have
28 farming-related debts in an amount equal to at least 55% of
29 the person's total assets, and (3) demonstrate that he can
30 secure credit from a conventional lender for the 1986 crop
31 year.
32 (c) An eligible person may apply to the Authority, in
33 such manner as the Authority may specify, for a one-time farm
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1 debt relief payment of up to 2% of the person's outstanding
2 farming-related debt. If the Authority determines that the
3 applicant is eligible for a payment under this Section, it
4 may then approve a payment to the applicant. Such payment
5 shall consist of a payment made by the Authority directly to
6 one or more of the applicant's farming-related creditors, to
7 be applied to the reduction of the applicant's
8 farming-related debt. The applicant shall be entitled to
9 select the creditor or creditors to receive the payment,
10 unless the applicant is subject to the jurisdiction of a
11 bankruptcy court, in which case the selection of the court
12 shall control.
13 (d) Payments shall be made from the Farm Emergency
14 Assistance Fund, which is hereby established as a special
15 fund in the State treasury, from funds appropriated to the
16 Authority for that purpose. No grant may exceed the lesser of
17 (1) 2% of the applicant's outstanding farm-related debt, or
18 (2) $2000. Not more than one grant under this Section may be
19 made to any one person, or to any one household, or to any
20 single farming operation.
21 (e) Payments to applicants having farming-related debts
22 in an amount equal to at least 55% of the person's total
23 assets, but less than 70%, shall be repaid by the applicant
24 to the Authority for deposit into the Farm Emergency
25 Assistance Fund within five years from the date the payment
26 was made. Repayment shall be made in equal installments
27 during the five-year period with no additional interest
28 charge and may be prepaid in whole or in part at any time.
29 Applicants having farming-related debts in an amount equal to
30 at least 70% of the person's total assets shall not be
31 required to make any repayment. Assets shall include, but not
32 be limited to, the following: cash crops or feed on hand;
33 livestock held for sale; breeding stock; marketable bonds and
34 securities; securities not readily marketable; accounts
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1 receivable; notes receivable; cash invested in growing crops;
2 net cash value of life insurance; machinery and equipment;
3 cars and trucks; farm and other real estate including life
4 estates and personal residence; value of beneficial interests
5 in trusts; government payments or grants; and any other
6 assets. Debts shall include, but not be limited to, the
7 following: accounts payable; notes or other indebtedness owed
8 to any source; taxes; rent; amounts owed on real estate
9 contracts or real estate mortgages; judgments; accrued
10 interest payable; and any other liability.
11 Section 830-15. Interest-buy-back program.
12 (a) The Authority shall establish an interest-buy-back
13 program to subsidize the interest cost on certain loans to
14 Illinois farmers.
15 (b) To be eligible an applicant must (i) be a resident of
16 Illinois; (ii) be a principal operator of a farm or land;
17 (iii) derive at least 50% of annual gross income from
18 farming; and (iv) have a net worth of at least $10,000. The
19 Authority shall establish minimum and maximum financial
20 requirements, maximum payment amounts, starting and ending
21 dates for the program, and other criteria.
22 (c) Lenders may apply on behalf of eligible applicants on
23 forms provided by the Authority. Lenders may submit requests
24 for payment on forms provided by the Authority. Lenders and
25 applicants shall be responsible for any fees or charges the
26 Authority may require.
27 (d) The Authority shall make payments to lenders from
28 available appropriations from the General Revenue Fund.
29 Section 830-20. The Authority may not pass a resolution
30 authorizing the issuance of any notes or bonds in excess of
31 $250,000 for any one agricultural real estate borrower. No
32 proceeds from any bonds issued by the Authority shall be
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1 loaned to any natural person who has a net worth in excess of
2 $500,000 for the purchase of new depreciable agricultural
3 property or to any agribusiness that, including all
4 affiliates and subsidiaries, has more than 100 employees and
5 a gross income exceeding $2,000,000 for the preceding
6 calendar year; provided, however, that the employee size and
7 gross income limitations shall not apply to any loans to
8 agribusinesses for research and development purposes, and
9 provided further that the Authority shall retain the power to
10 waive such limitations for any agribusiness that, at the time
11 of application, does not operate a facility within this
12 State.
13 Section 830-25. Bonded indebtedness limitation. The
14 Authority shall not have outstanding at any one time State
15 Guarantees under Section 830-30 in an aggregate principal
16 amount exceeding $160,000,000. The Authority shall not have
17 outstanding at any one time State Guarantees under Sections
18 830-35, 830-45 and 830-50 in an aggregate principal amount
19 exceeding $75,000,000.
20 Section 830-30. State Guarantees for existing debt.
21 (a) The Authority is authorized to issue State Guarantees
22 for farmers' existing debts held by a lender. For the
23 purposes of this Section, a farmer shall be a resident of
24 Illinois, who is a principal operator of a farm or land, at
25 least 50% of whose annual gross income is derived from
26 farming and whose debt to asset ratio shall not be less than
27 40%, except in those cases where the applicant has previously
28 used the guarantee program there shall be no debt to asset
29 ratio or income restriction. For the purposes of this
30 Section, debt to asset ratio shall mean the current
31 outstanding liabilities of the farmer divided by the current
32 outstanding assets of the farmer. The Authority shall
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1 establish the maximum permissible debt to asset ratio based
2 on criteria established by the Authority. Lenders shall apply
3 for the State Guarantees on forms provided by the Authority
4 and certify that the application and any other documents
5 submitted are true and correct. The lender or borrower, or
6 both in combination, shall pay an administrative fee as
7 determined by the Authority. The applicant shall be
8 responsible for paying any fees or charges involved in
9 recording mortgages, releases, financing statements,
10 insurance for secondary market issues and any other similar
11 fees or charges as the Authority may require. The application
12 shall at a minimum contain the farmer's name, address,
13 present credit and financial information, including cash flow
14 statements, financial statements, balance sheets, and any
15 other information pertinent to the application, and the
16 collateral to be used to secure the State Guarantee. In
17 addition, the lender must agree to bring the farmer's debt to
18 a current status at the time the State Guarantee is provided
19 and must also agree to charge a fixed or adjustable interest
20 rate which the Authority determines to be below the market
21 rate of interest generally available to the borrower. If both
22 the lender and applicant agree, the interest rate on the
23 State Guarantee Loan can be converted to a fixed interest
24 rate at any time during the term of the loan. Any State
25 Guarantees provided under this Section (i) shall not exceed
26 $500,000 per farmer, (ii) shall be set up on a payment
27 schedule not to exceed 30 years, and shall be no longer than
28 30 years in duration, and (iii) shall be subject to an annual
29 review and renewal by the lender and the Authority; provided
30 that only one such State Guarantee shall be outstanding per
31 farmer at any one time. No State Guarantee shall be revoked
32 by the Authority without a 90-day notice, in writing, to all
33 parties. In those cases where the borrower has not previously
34 used the guarantee program, the lender shall not call due any
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1 loan during the first 3 years for any reason except for lack
2 of performance or insufficient collateral. The lender can
3 review and withdraw or continue with the State Guarantee on
4 an annual basis after the first 3 years of the loan, provided
5 a 90-day notice, in writing, to all parties has been given.
6 (b) The Authority shall provide or renew a State
7 Guarantee to a lender if:
8 (i) A fee equal to 25 basis points on the loan is
9 paid to the Authority on an annual basis by the lender.
10 (ii) The application provides collateral acceptable
11 to the Authority that is at least equal to the State's
12 portion of the Guarantee to be provided.
13 (iii) The lender assumes all responsibility and
14 costs for pursuing legal action on collecting any loan
15 that is delinquent or in default.
16 (iv) The lender is responsible for the first 15% of
17 the outstanding principal of the note for which the State
18 Guarantee has been applied.
19 (c) There is hereby created outside of the State treasury
20 a special fund to be known as the Illinois Agricultural Loan
21 Guarantee Fund. The State Treasurer shall be custodian of
22 this Fund. Any amounts in the Illinois Agricultural Loan
23 Guarantee Fund not currently needed to meet the obligations
24 of the Fund shall be invested as provided by law, and all
25 interest earned from these investments shall be deposited
26 into the Fund until the Fund reaches the maximum amount
27 authorized in this Act; thereafter, interest earned shall be
28 deposited into the General Revenue Fund. After September 1,
29 1989, annual investment earnings equal to 1.5% of the Fund
30 shall remain in the Fund to be used for the purposes
31 established in Section 830-40 of this Act. The Authority is
32 authorized to transfer to the Fund such amounts as are
33 necessary to satisfy claims during the duration of the State
34 Guarantee program to secure State Guarantees issued under
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1 this Section. If for any reason the General Assembly fails to
2 make an appropriation sufficient to meet these obligations,
3 this Act shall constitute an irrevocable and continuing
4 appropriation of an amount necessary to secure guarantees as
5 defaults occur and the irrevocable and continuing authority
6 for, and direction to, the State Treasurer and the
7 Comptroller to make the necessary transfers to the Illinois
8 Agricultural Loan Guarantee Fund, as directed by the
9 Governor, out of the General Revenue Fund. Within 30 days
10 after November 15, 1985, the Authority may transfer up to
11 $7,000,000 from available appropriations into the Illinois
12 Agricultural Loan Guarantee Fund for the purposes of this
13 Act. Thereafter, the Authority may transfer additional
14 amounts into the Illinois Agricultural Loan Guarantee Fund to
15 secure guarantees for defaults as defaults occur. In the
16 event of default by the farmer, the lender shall be entitled
17 to, and the Authority shall direct payment on, the State
18 Guarantee after 90 days of delinquency. All payments by the
19 Authority shall be made from the Illinois Agricultural Loan
20 Guarantee Fund to satisfy claims against the State Guarantee.
21 The Illinois Agricultural Loan Guarantee Fund shall guarantee
22 receipt of payment of the 85% of the principal and interest
23 owed on the State Guarantee Loan by the farmer to the
24 guarantee holder. It shall be the responsibility of the
25 lender to proceed with the collecting and disposing of
26 collateral on the State Guarantee within 14 months of the
27 time the State Guarantee is declared delinquent; provided,
28 however, that the lender shall not collect or dispose of
29 collateral on the State Guarantee without the express written
30 prior approval of the Authority. If the lender does not
31 dispose of the collateral within 14 months, the lender shall
32 be liable to repay to the State interest on the State
33 Guarantee equal to the same rate which the lender charges on
34 the State Guarantee; provided, however, that the Authority
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1 may extend the 14-month period for a lender in the case of
2 bankruptcy or extenuating circumstances. The Fund shall be
3 reimbursed for any amounts paid under this Section upon
4 liquidation of the collateral. The Authority, by resolution
5 of the Board, may borrow sums from the Fund and provide for
6 repayment as soon as may be practical upon receipt of
7 payments of principal and interest by a farmer. Money may be
8 borrowed from the Fund by the Authority for the sole purpose
9 of paying certain interest costs for farmers associated with
10 selling a loan subject to a State Guarantee in a secondary
11 market as may be deemed reasonable and necessary by the
12 Authority.
13 (d) Notwithstanding the provisions of this Section 830-30
14 with respect to the farmers and lenders who may obtain State
15 Guarantees, the Authority may promulgate rules establishing
16 the eligibility of farmers and lenders to participate in the
17 State guarantee program and the terms, standards, and
18 procedures that will apply, when the Authority finds that
19 emergency conditions in Illinois agriculture have created the
20 need for State Guarantees pursuant to terms, standards, and
21 procedures other than those specified in this Section.
22 Section 830-35. State Guarantees for loans to farmers and
23 agribusiness; eligibility.
24 (a) The Authority is authorized to issue State Guarantees
25 to lenders for loans to eligible farmers and agribusinesses
26 for purposes set forth in this Section. For purposes of this
27 Section, an eligible farmer shall be a resident of Illinois
28 (i) who is principal operator of a farm or land, at least 50%
29 of whose annual gross income is derived from farming, (ii)
30 whose annual total sales of agricultural products,
31 commodities, or livestock exceeds $20,000, and (iii) whose
32 net worth does not exceed $500,000. An eligible agribusiness
33 shall be that as defined in Section 801-10 of this Act. The
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1 Authority may approve applications by farmers and
2 agribusinesses that promote diversification of the farm
3 economy of this State through the growth and development of
4 new crops or livestock not customarily grown or produced in
5 this State or that emphasize a vertical integration of grain
6 or livestock produced or raised in this State into a finished
7 agricultural product for consumption or use. "New crops or
8 livestock not customarily grown or produced in this State"
9 shall not include corn, soybeans, wheat, swine, or beef or
10 dairy cattle. "Vertical integration of grain or livestock
11 produced or raised in this State" shall include any new or
12 existing grain or livestock grown or produced in this State.
13 Lenders shall apply for the State Guarantees on forms
14 provided by the Authority, certify that the application and
15 any other documents submitted are true and correct, and pay
16 an administrative fee as determined by the Authority. The
17 applicant shall be responsible for paying any fees or charges
18 involved in recording mortgages, releases, financing
19 statements, insurance for secondary market issues and any
20 other similar fees or charges as the Authority may require.
21 The application shall at a minimum contain the farmer's or
22 agribusiness' name, address, present credit and financial
23 information, including cash flow statements, financial
24 statements, balance sheets, and any other information
25 pertinent to the application, and the collateral to be used
26 to secure the State Guarantee. In addition, the lender must
27 agree to charge an interest rate, which may vary, on the loan
28 that the Authority determines to be below the market rate of
29 interest generally available to the borrower. If both the
30 lender and applicant agree, the interest rate on the State
31 Guarantee Loan can be converted to a fixed interest rate at
32 any time during the term of the loan. Any State Guarantees
33 provided under this Section (i) shall not exceed $500,000 per
34 farmer or an amount as determined by the Authority on a
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1 case-by-case basis for an agribusiness, (ii) shall not exceed
2 a term of 15 years, and (iii) shall be subject to an annual
3 review and renewal by the lender and the Authority; provided
4 that only one such State Guarantee shall be made per farmer
5 or agribusiness, except that additional State Guarantees may
6 be made for purposes of expansion of projects financed in
7 part by a previously issued State Guarantee. No State
8 Guarantee shall be revoked by the Authority without a 90-day
9 notice, in writing, to all parties. The lender shall not call
10 due any loan for any reason except for lack of performance,
11 insufficient collateral, or maturity. A lender may review and
12 withdraw or continue with a State Guarantee on an annual
13 basis after the first 5 years following closing of the loan
14 application if the loan contract provides for an interest
15 rate that shall not vary. A lender shall not withdraw a State
16 Guarantee if the loan contract provides for an interest rate
17 that may vary, except for reasons set forth herein.
18 (b) The Authority shall provide or renew a State
19 Guarantee to a lender if:
20 (i) A fee equal to 25 basis points on the loan is
21 paid to the Authority on an annual basis by the lender.
22 (ii) The application provides collateral acceptable
23 to the Authority that is at least equal to the State's
24 portion of the Guarantee to be provided.
25 (iii) The lender assumes all responsibility and
26 costs for pursuing legal action on collecting any loan
27 that is delinquent or in default.
28 (iv) The lender is responsible for the first 15% of
29 the outstanding principal of the note for which the State
30 Guarantee has been applied.
31 (c) There is hereby created outside of the State treasury
32 a special fund to be known as the Illinois Farmer and
33 Agribusiness Loan Guarantee Fund. The State Treasurer shall
34 be custodian of this Fund. Any amounts in the Fund not
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1 currently needed to meet the obligations of the Fund shall be
2 invested as provided by law, and all interest earned from
3 these investments shall be deposited into the Fund until the
4 Fund reaches the maximum amounts authorized in this Act;
5 thereafter, interest earned shall be deposited into the
6 General Revenue Fund. After September 1, 1989, annual
7 investment earnings equal to 1.5% of the Fund shall remain in
8 the Fund to be used for the purposes established in Section
9 830-40 of this Act. The Authority is authorized to transfer
10 such amounts as are necessary to satisfy claims from
11 available appropriations and from fund balances of the Farm
12 Emergency Assistance Fund as of June 30 of each year to the
13 Illinois Farmer and Agribusiness Loan Guarantee Fund to
14 secure State Guarantees issued under this Section and
15 Sections 830-45 and 830-50. If for any reason the General
16 Assembly fails to make an appropriation sufficient to meet
17 these obligations, this Act shall constitute an irrevocable
18 and continuing appropriation of an amount necessary to secure
19 guarantees as defaults occur and the irrevocable and
20 continuing authority for, and direction to, the State
21 Treasurer and the Comptroller to make the necessary transfers
22 to the Illinois Farmer and Agribusiness Loan Guarantee Fund,
23 as directed by the Governor, out of the General Revenue Fund.
24 In the event of default by the borrower on State Guarantee
25 Loans under this Section, Section 830-45 or Section 830-50,
26 the lender shall be entitled to, and the Authority shall
27 direct payment on, the State Guarantee after 90 days of
28 delinquency. All payments by the Authority shall be made from
29 the Illinois Farmer and Agribusiness Loan Guarantee Fund to
30 satisfy claims against the State Guarantee. It shall be the
31 responsibility of the lender to proceed with the collecting
32 and disposing of collateral on the State Guarantee under this
33 Section, Section 830-45 or Section 830-50 within 14 months of
34 the time the State Guarantee is declared delinquent. If the
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1 lender does not dispose of the collateral within 14 months,
2 the lender shall be liable to repay to the State interest on
3 the State Guarantee equal to the same rate that the lender
4 charges on the State Guarantee, provided that the Authority
5 shall have the authority to extend the 14-month period for a
6 lender in the case of bankruptcy or extenuating
7 circumstances. The Fund shall be reimbursed for any amounts
8 paid under this Section, Section 830-45 or Section 830-50
9 upon liquidation of the collateral. The Authority, by
10 resolution of the Board, may borrow sums from the Fund and
11 provide for repayment as soon as may be practical upon
12 receipt of payments of principal and interest by a borrower
13 on State Guarantee Loans under this Section, Section 830-45
14 or Section 830-50. Money may be borrowed from the Fund by the
15 Authority for the sole purpose of paying certain interest
16 costs for borrowers associated with selling a loan subject to
17 a State Guarantee under this Section, Section 830-45 or
18 Section 830-50 in a secondary market as may be deemed
19 reasonable and necessary by the Authority.
20 (d) Notwithstanding the provisions of this Section 830-35
21 with respect to the farmers, agribusinesses, and lenders who
22 may obtain State Guarantees, the Authority may promulgate
23 rules establishing the eligibility of farmers,
24 agribusinesses, and lenders to participate in the State
25 Guarantee program and the terms, standards, and procedures
26 that will apply, when the Authority finds that emergency
27 conditions in Illinois agriculture have created the need for
28 State Guarantees pursuant to terms, standards, and procedures
29 other than those specified in this Section.
30 Section 830-40. Cooperative agreement with the University
31 of Illinois.
32 (a) The Authority may enter into a cooperative agreement
33 with the University of Illinois whereby the University's
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1 College of Agriculture, or a department thereof, shall assess
2 and evaluate the need for additional, and the performance of
3 existing, State credit and finance programs administered by
4 the Authority for farmers and agribusinesses. Pursuant to the
5 cooperative agreement, the Authority may request from the
6 University an evaluation of financial positions and lending
7 risks of existing farm operations and existing and developing
8 agricultural industries, an assessment and evaluation of the
9 design, operation and performance of existing and proposed
10 credit programs, an assessment of potential for development
11 of agricultural industry, an assessment of the performance of
12 credit markets and development of improved State credit
13 instruments and programs, and any other information deemed
14 necessary by the Authority to carry forth its credit and
15 finance programs.
16 (b) A cooperative agreement entered into by the Authority
17 and the University may provide for payment for services
18 rendered by the University pursuant to the cooperative
19 agreement from interest earnings remaining in the Illinois
20 Agricultural Loan Guarantee Fund, as provided for in Section
21 830-30 of this Act, and the Illinois Farmer and Agribusiness
22 Loan Guarantee Fund, as provided for in Section 830-40 of
23 this Act.
24 Section 830-45. Young Farmer Loan Guarantee Program.
25 (a) The Authority is authorized to issue State Guarantees
26 to lenders for loans to finance or refinance debts of young
27 farmers. For the purposes of this Section, a young farmer is
28 a resident of Illinois who is at least 18 years of age and
29 who is a principal operator of a farm or land, who derives at
30 least 50% of annual gross income from farming, whose net
31 worth is not less than $10,000 and whose debt to asset ratio
32 is not less than 40%. For the purposes of this Section, debt
33 to asset ratio means current outstanding liabilities,
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1 including any debt to be financed or refinanced under this
2 Section 830-45, divided by current outstanding assets. The
3 Authority shall establish the maximum permissible debt to
4 asset ratio based on criteria established by the Authority.
5 Lenders shall apply for the State Guarantees on forms
6 provided by the Authority and certify that the application
7 and any other documents submitted are true and correct. The
8 lender or borrower, or both in combination, shall pay an
9 administrative fee as determined by the Authority. The
10 applicant shall be responsible for paying any fee or charge
11 involved in recording mortgages, releases, financing
12 statements, insurance for secondary market issues, and any
13 other similar fee or charge that the Authority may require.
14 The application shall at a minimum contain the young farmer's
15 name, address, present credit and financial information,
16 including cash flow statements, financial statements, balance
17 sheets, and any other information pertinent to the
18 application, and the collateral to be used to secure the
19 State Guarantee. In addition, the borrower must certify to
20 the Authority that, at the time the State Guarantee is
21 provided, the borrower will not be delinquent in the
22 repayment of any debt. The lender must agree to charge a
23 fixed or adjustable interest rate that the Authority
24 determines to be below the market rate of interest generally
25 available to the borrower. If both the lender and applicant
26 agree, the interest rate on the State guaranteed loan can be
27 converted to a fixed interest rate at any time during the
28 term of the loan. State Guarantees provided under this
29 Section (i) shall not exceed $500,000 per young farmer, (ii)
30 shall be set up on a payment schedule not to exceed 30 years,
31 but shall be no longer than 15 years in duration, and (iii)
32 shall be subject to an annual review and renewal by the
33 lender and the Authority. A young farmer may use this program
34 more than once provided the aggregate principal amount of
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1 State Guarantees under this Section to that young farmer does
2 not exceed $500,000. No State Guarantee shall be revoked by
3 the Authority without a 90-day notice, in writing, to all
4 parties.
5 (b) The Authority shall provide or renew a State
6 Guarantee to a lender if:
7 (i) The lender pays a fee equal to 25 basis points
8 on the loan to the Authority on an annual basis.
9 (ii) The application provides collateral acceptable
10 to the Authority that is at least equal to the State
11 Guarantee.
12 (iii) The lender assumes all responsibility and
13 costs for pursuing legal action on collecting any loan
14 that is delinquent or in default.
15 (iv) The lender is at risk for the first 15% of the
16 outstanding principal of the note for which the State
17 Guarantee is provided.
18 (c) The Illinois Farmer and Agribusiness Loan Guarantee
19 Fund may be used to secure State Guarantees issued under this
20 Section as provided in Section 830-35.
21 (d) Notwithstanding the provisions of this Section 830-45
22 with respect to the young farmers and lenders who may obtain
23 State Guarantees, the Authority may promulgate rules
24 establishing the eligibility of young farmers and lenders to
25 participate in the State Guarantee program and the terms,
26 standards, and procedures that will apply, when the Authority
27 finds that emergency conditions in Illinois agriculture have
28 created the need for State Guarantees pursuant to terms,
29 standards, and procedures other than those specified in this
30 Section.
31 Section 830-50. Specialized Livestock Guarantee Program.
32 (a) The Authority is authorized to issue State Guarantees
33 to lenders for loans to finance or refinance debts for
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1 specialized livestock operations that are or will be located
2 in Illinois. For purposes of this Section, a "specialized
3 livestock operation" includes, but is not limited to, dairy,
4 beef, and swine enterprises.
5 (b) Lenders shall apply for the State Guarantees on forms
6 provided by the Authority and certify that the application
7 and any other documents submitted are true and correct. The
8 lender or borrower, or both in combination, shall pay an
9 administrative fee as determined by the Authority. The
10 applicant shall be responsible for paying any fee or charge
11 involved in recording mortgages, releases, financing
12 statements, insurance for secondary market issues, and any
13 other similar fee or charge that the Authority may require.
14 The application shall, at a minimum, contain the farmer's
15 name, address, present credit and financial information,
16 including cash flow statements, financial statements, balance
17 sheets, and any other information pertinent to the
18 application, and the collateral to be used to secure the
19 State Guarantee. In addition, the borrower must certify to
20 the Authority that, at the time the State Guarantee is
21 provided, the borrower will not be delinquent in the
22 repayment of any debt. The lender must agree to charge a
23 fixed or adjustable interest rate that the Authority
24 determines to be below the market rate of interest generally
25 available to the borrower. If both the lender and applicant
26 agree, the interest rate on the State guaranteed loan can be
27 converted to a fixed interest rate at any time during the
28 term of the loan.
29 (c) State Guarantees provided under this Section (i)
30 shall not exceed $1,000,000 per applicant, (ii) shall be no
31 longer than 15 years in duration, and (iii) shall be subject
32 to an annual review and renewal by the lender and the
33 Authority. An applicant may use this program more than once,
34 provided that the aggregate principal amount of State
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1 Guarantees under this Section to that applicant does not
2 exceed $1,000,000. A State Guarantee shall not be revoked by
3 the Authority without a 90-day notice, in writing, to all
4 parties.
5 (d) The Authority shall provide or renew a State
6 Guarantee to a lender if: (i) The lender pays a fee equal to
7 25 basis points on the loan to the Authority on an annual
8 basis. (ii) The application provides collateral acceptable to
9 the Authority that is at least equal to the State Guarantee.
10 (iii) The lender assumes all responsibility and costs for
11 pursuing legal action on collecting any loan that is
12 delinquent or in default. (iv) The lender is at risk for the
13 first 15% of the outstanding principal of the note for which
14 the State Guarantee is provided.
15 (e) The Illinois Farmer and Agribusiness Loan Guarantee
16 Fund may be used to secure State Guarantees issued under this
17 Section as provided in Section 830-35.
18 (f) Notwithstanding the provisions of this Section 830-50
19 with respect to the specialized livestock operations and
20 lenders who may obtain State Guarantees, the Authority may
21 promulgate rules establishing the eligibility of specialized
22 livestock operations and lenders to participate in the State
23 Guarantee program and the terms, standards, and procedures
24 that will apply, when the Authority finds that emergency
25 conditions in Illinois agriculture have created the need for
26 State Guarantees pursuant to terms, standards, and procedures
27 other than those specified in this Section.
28 ARTICLE 840
29 HEALTH FACILITIES DEVELOPMENT
30 Section 840-5. The Authority shall have the following
31 powers:
32 (a) To fix and revise from time to time and charge and
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1 collect rates, rents, fees and charges for the use of and for
2 the services furnished or to be furnished by a project or
3 other health facilities owned, financed or refinanced by the
4 Authority or any portion thereof and to contract with any
5 person, partnership, association or corporation or other
6 body, public or private, in respect thereto; to coordinate
7 its policies and procedures and cooperate with recognized
8 health facility rate setting mechanisms which may now or
9 hereafter be established.
10 (b) To establish rules and regulations for the use of a
11 project or other health facilities owned, financed or
12 refinanced by the Authority or any portion thereof and to
13 designate a participating health institution as its agent to
14 establish rules and regulations for the use of a project or
15 other health facilities owned by the Authority undertaken for
16 that participating health institution.
17 (c) To establish or contract with others to carry out on
18 its behalf a health facility project cost estimating service
19 and to make this service available on all projects to provide
20 expert cost estimates and guidance to the participating
21 health institution and to the Authority. In order to
22 implement this service and, through it, to contribute to cost
23 containment, the Authority shall have the power to require
24 such reasonable reports and documents from health facility
25 projects as may be required for this service and for the
26 development of cost reports and guidelines. The Authority may
27 appoint a Technical Committee on Health Facility Project
28 Costs and Cost Containment.
29 (d) To make mortgage or other secured or unsecured loans
30 to or for the benefit of any participating health institution
31 for the cost of a project in accordance with an agreement
32 between the Authority and the participating health
33 institution; provided that no such loan shall exceed the
34 total cost of the project as determined by the participating
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1 health institution and approved by the Authority; provided
2 further that such loans may be made to any entity affiliated
3 with a participating health institution if the proceeds of
4 such loan are made available to or applied for the benefit of
5 such participating health institution.
6 (e) To make mortgage or other secured or unsecured loans
7 to or for the benefit of a participating health institution
8 in accordance with an agreement between the Authority and the
9 participating health institution to refund outstanding
10 obligations, loans, indebtedness or advances issued, made,
11 given or incurred by such participating health institution
12 for the cost of a project; including the function to issue
13 bonds and make loans to or for the benefit of a participating
14 health institution to refinance indebtedness incurred by such
15 participating health institution in projects undertaken and
16 completed or for other health facilities acquired prior to or
17 after the enactment of this Act when the Authority finds that
18 such refinancing is in the public interest, and either
19 alleviates a financial hardship of such participating health
20 institution, or is in connection with other financing by the
21 Authority for such participating health institution or may be
22 expected to result in a lessened cost of patient care and a
23 saving to third parties, including government, and to others
24 who must pay for care, or any combination thereof; provided
25 further that such loans may be made to any entity affiliated
26 with a participating health institution if the proceeds of
27 such loan are made available to or applied for the benefit of
28 such participating health institution.
29 (f) To mortgage all or any portion of a project or other
30 health facilities and the property on which any such project
31 or other health facilities are located whether owned or
32 thereafter acquired, and to assign or pledge mortgages, deeds
33 of trust, indentures of mortgage or trust or similar
34 instruments, notes, and other securities of participating
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1 health institutions to which or for the benefit of which the
2 Authority has made loans or of entities affiliated with such
3 institutions and the revenues therefrom, including payments
4 or income from any thereof owned or held by the Authority,
5 for the benefit of the holders of bonds issued to finance
6 such project or health facilities or issued to refund or
7 refinance outstanding obligations, loans, indebtedness or
8 advances of participating health institutions as permitted by
9 this Act.
10 (g) To lease to a participating health institution the
11 project being financed or refinanced or other health
12 facilities conveyed to the Authority in connection with such
13 financing or refinancing, upon such terms and conditions as
14 the Authority shall deem proper, and to charge and collect
15 rents therefor and to terminate any such lease upon the
16 failure of the lessee to comply with any of the obligations
17 thereof; and to include in any such lease, if desired,
18 provisions that the lessee thereof shall have options to
19 renew the lease for such period or periods and at such rent
20 as shall be determined by the Authority or to purchase any or
21 all of the health facilities or that upon payment of all of
22 the indebtedness incurred by the Authority for the financing
23 of such project or health facilities or for refunding
24 outstanding obligations, loans, indebtedness or advances of a
25 participating health institution, then the Authority may
26 convey any or all of the project or such other health
27 facilities to the lessee or lessees thereof with or without
28 consideration.
29 (h) To make studies of needed health facilities that
30 could not sustain a loan were it made under this Act and to
31 recommend remedial action to the General Assembly; to do the
32 same with regard to any laws or regulations that prevent
33 health facilities from benefiting from this Act.
34 (i) To assist the Department of Commerce and Economic
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1 Opportunity to establish and implement a program to assist
2 health facilities to identify and arrange financing for
3 energy conservation projects in buildings and facilities
4 owned or leased by health facilities.
5 (j) To assist the Department of Human Services in
6 establishing a low interest loan program to help child care
7 centers and family day care homes serving children of low
8 income families under Section 22.4 of the Children and Family
9 Services Act.
10 Section 840-10. By means of this Act it is the intent of
11 the General Assembly to provide a measure of assistance and
12 alternative methods of financing to participating health
13 institutions to aid them in providing needed health
14 facilities that will assure admission and care of high
15 quality to all who need it and in dealing with the cash
16 requirements of such facilities, whether resulting from
17 capital expenditures, operating expenditures, delays in the
18 receipt of payments for services or otherwise.
19 Section 840-15. The Authority is authorized and empowered
20 to acquire, directly or by and through a participating health
21 institution as its agent, by purchase solely from funds
22 provided under the authority of this Act, or by gift or
23 legacy, such lands, structures, property, real or personal,
24 rights, rights-of-way, franchises, easements and other
25 interests in lands, including lands lying under water and
26 riparian rights, which are located within the State as it may
27 deem necessary or convenient for the construction or
28 operation of a project, upon such terms and at such prices as
29 may be considered by it to be reasonable and can be agreed
30 upon between it and the owner thereof, and to take title
31 thereto in the name of the Authority or in the name of a
32 participating health institution as its agent.
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1 Section 840-20. It is the intent and purpose of this Act
2 that the exercise by the Authority of the powers granted to
3 it shall be in all respects for the benefit of the people of
4 this State to assist them to provide needed health facilities
5 of the number, size, type, distribution, and operation that
6 will assure admission and care of high quality to all who
7 need it. To this end, the Authority is charged with the
8 responsibility to identify and study all projects which are
9 determined by health planning agencies to be needed but which
10 could not sustain a loan were such to be made to it under
11 this Act. The Authority shall, following such study,
12 formulate and recommend to the General Assembly, such
13 amendments to this and other Acts, and such other specific
14 measures as grants, loan guarantees, interest subsidies or
15 other actions as may be provided for by the State which
16 actions would render the construction and operation of such
17 needed health facility feasible and in the public interest.
18 Further, the Authority is charged with responsibility to
19 identify and study any laws or regulations which it finds
20 handicaps or bars a needed health facility from participating
21 in the benefits of this Act and to recommend to the General
22 Assembly such actions as will remedy such situation.
23 Section 840-25. The Authority shall fix, revise, charge
24 and collect rents for the use of each health facility owned
25 by the Authority and contract with any person, partnership,
26 association or corporation, or other body, public or private,
27 in respect thereof. Each lease entered into by the Authority
28 with a participating health institution and each agreement,
29 note, mortgage or other instrument evidencing the obligations
30 of a participating health institution to the Authority shall
31 provide that the rents or principal, interest and other
32 charges payable by or for the benefit of the participating
33 health institution or the process of accounts receivable
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1 purchased by the Authority from the participating health
2 institution shall be sufficient at all times, (a) to pay its
3 share of the administrative costs and expenses of the
4 Authority, (b) to pay the cost of maintaining, repairing and
5 operating the project and other related health facilities and
6 each and every portion thereof, (c) to pay the principal of,
7 the premium, if any, and the interest on outstanding bonds of
8 the Authority issued in respect of such project as the same
9 shall become due and payable, and (d) to create and maintain
10 reserves which may but need not be required or provided for
11 in the bond resolution relating to such bonds of the
12 Authority. The Authority shall pledge the revenues derived
13 and to be derived from a project or other related health
14 facilities or from a participating health institution or an
15 affiliate thereof for the purposes specified in (a), (b), (c)
16 and (d) of the preceding sentence and additional bonds may be
17 issued which may rank on a parity with other bonds relating
18 to the project to the extent and on the terms and conditions
19 provided in the bond resolution. Such pledge shall be valid
20 and binding from the time when the pledge is made; the
21 revenues so pledged by the Authority shall immediately be
22 subject to the lien of such pledge without any physical
23 delivery thereof or further act and the lien of any such
24 pledge shall be valid and binding as against all parties
25 having claims of any kind in tort, contract or otherwise
26 against the Authority, irrespective of whether such parties
27 have notice thereof. Neither the bond resolution nor any
28 financing statement, continuation statement or other
29 instrument by which a pledge is created or by which the
30 Authority's interest in revenues is assigned need be filed or
31 recorded in any public records in order to perfect the lien
32 thereof as against third parties except that a copy of the
33 bond resolution shall be filed in the records of the
34 Authority and with the Secretary of State.
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1 Section 840-30. It is intended that all private health
2 facilities in this State be enabled to benefit from and
3 participate in the provisions of this Act. To this end, all
4 private health facilities operating, or authorized to be
5 operated, under any statute of this State are authorized and
6 empowered to undertake projects, as defined in this Act, and
7 to utilize the financing sources and methods of repayment
8 provided by this Act, the provisions of any other laws to the
9 contrary notwithstanding. Notwithstanding the provisions of
10 any other law to the contrary, the State of Illinois and any
11 political subdivision, agency, instrumentality, district or
12 municipality thereof owning or operating any health facility
13 is hereby authorized to take all actions necessary or
14 appropriate and to execute and deliver any and all evidences
15 of indebtedness and agreements, including loan agreements,
16 leases and agreements providing for credit enhancement, as
17 may be necessary to permit such publicly owned health
18 facility to avail itself of the provisions of this Act. Any
19 evidence of indebtedness or agreement entered into by the
20 State or any political subdivision, agency, instrumentality,
21 district or municipality thereof pursuant to this Act may
22 provide for the payment of interest at such rate or rates as
23 shall be determined by the issuer thereof or obligor
24 thereunder and may be issued or entered into without
25 referendum approval; provided, that this Act shall not be
26 deemed to be independent authority for levy of any taxes to
27 pay an obligation owing from the State or any political
28 subdivision, agency, instrumentality, district or
29 municipality thereof and arising hereunder or incurred in
30 connection with a financing pursuant hereto.
31 ARTICLE 845
32 AUTHORITY DEBTS, CONTRACTS AND REPORTS
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1 Section 845-5. The Authority may not have outstanding at
2 any one time bonds for any of its corporate purposes in an
3 aggregate principal amount exceeding $23,000,000,000,
4 excluding bonds issued to refund the bonds of the Authority
5 or bonds of the Predecessor Authorities.
6 Section 845-10. The Authority may issue a single bond
7 issue pursuant to this Act for a group of industrial
8 projects, a group of corporations or a group of business
9 entities, a group of units of local government or other
10 borrowers or any combination thereof. A bond issue for
11 multiple projects as provided in this Section shall be
12 subject to all requirements for bond issues as established by
13 this Act.
14 Section 845-15. The Authority may maintain an office or
15 branch office anywhere in the State, and may utilize, without
16 the payment of rent, any office facilities which the State
17 may conveniently make available to it.
18 Section 845-20. The Authority shall not have power to
19 levy taxes for any purpose whatsoever.
20 Section 845-25. The Authority shall not incur any
21 obligations for salaries, office or other administrative
22 expenses prior to the making of appropriations to meet such
23 expenses. Interest earned from investments of any funds of
24 the Authority and repayments of principal of such investments
25 shall be available for appropriation by the Board for the
26 corporate purposes of the Authority.
27 Section 845-30. The State and all counties, cities,
28 villages, incorporated towns and other municipal
29 corporations, political subdivisions and public bodies, and
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1 public officers of any thereof, all banks, bankers, trust
2 companies, savings banks and institutions, building and loan
3 associations, savings and loan associations, investment
4 companies and other persons carrying on a banking business,
5 all insurance companies, insurance associations and other
6 persons carrying on an insurance business and all executors,
7 administrators, guardians, trustees and other fiduciaries may
8 legally invest any sinking funds, moneys or other funds
9 belonging to them or within their control in any bonds or
10 evidences of indebtedness issued pursuant to this Act or
11 issued by the Predecessor Authorities, it being the purpose
12 of this Section to authorize the investment in such bonds or
13 evidences of indebtedness of all sinking, insurance,
14 retirement, compensation, pension and trust funds, whether
15 owned or controlled by private or public persons or officers;
16 provided, however, that nothing contained in this Section may
17 be construed as relieving any person from any duty of
18 exercising reasonable care in selecting securities for
19 purchase or investment.
20 Section 845-35. Under no circumstances shall any bonds or
21 other evidences of indebtedness issued by the Authority or
22 the Predecessor Authorities under this Act or under any other
23 law be or become an indebtedness or obligation of the State
24 of Illinois, within the purview of any constitutional
25 limitation or provision, and it shall be plainly stated on
26 the face of each bond or other evidence of indebtedness that
27 it does not constitute such an indebtedness or obligation but
28 is payable solely from the revenues or income of the
29 Authority.
30 Section 845-40. The Authority shall appoint a secretary
31 and treasurer, who may, but need not, be a member or members
32 of the Authority to hold office during the pleasure of the
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1 Authority. Before entering upon the duties of the respective
2 offices such person or persons shall take and subscribe to
3 the constitutional oath of office, and the treasurer shall
4 execute a bond with corporate sureties to be approved by the
5 Authority. The bond shall be payable to the Authority in
6 whatever penal sum may be directed by the Authority
7 conditioned upon the faithful performance of the duties of
8 the office and the payment of all money received by him
9 according to law and the orders of the Authority. The
10 Authority may, at any time, require a new bond from the
11 treasurer in such penal sum as may then be determined by the
12 Authority. The obligation of the sureties shall not extend to
13 any loss sustained by the insolvency, failure or closing of
14 any savings and loan association or national or state bank
15 wherein the treasurer has deposited funds if the bank or
16 savings and loan association has been approved by the
17 Authority as a depository for these funds. The oaths of
18 office and the treasurer's bond shall be filed in the
19 principal office of the Authority. All funds of the
20 Authority, including without limitation, grants or loans from
21 the federal government, the State or any agency or
22 instrumentality thereof, fees, service charges, interest or
23 other investment earnings on its funds, payments of principal
24 of and interest on loans of its funds and revenue from any
25 other source, except funds the application of which is
26 otherwise specifically provided for by appropriation,
27 resolution, grant agreement, lease agreement, loan agreement,
28 indenture, mortgage or trust agreement or other agreement,
29 may be held by the Authority in its treasury and be generally
30 available for expenditure by the Authority for any of the
31 purposes authorized by this Act. In addition to investments
32 authorized by Section 2 of the Public Funds Investment Act,
33 funds of the Authority may be invested in (a) obligations
34 issued by any State, unit of local government or school
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1 district which obligations are rated at the time of purchase
2 by a national rating service within the two highest rating
3 classifications without regard to any rating refinement or
4 gradation by numerical or other modifier, or (b) equity
5 securities of an investment company registered under the
6 Investment Company Act of 1940 whose sole assets, other than
7 cash and other temporary investments, are obligations which
8 are eligible investments for the Authority, provided that not
9 more than 20% of the assets of the investment company may
10 consist of unrated obligations of the type described in
11 clause (a) which the Board of Directors of the investment
12 company has determined to be of comparable quality to rated
13 obligations described in clause (a). Funds appropriated by
14 the General Assembly to the Authority shall be held in the
15 State treasury unless this Act or the Act making the
16 appropriation specifically states that the monies are to be
17 held in or appropriated to the Authority's treasury. Such
18 funds as are authorized to be held in the Authority's
19 treasury and deposited in any bank or savings and loan
20 association and placed in the name of the Authority shall be
21 withdrawn or paid out only by check or draft upon the bank or
22 savings and loan association, signed by the treasurer and
23 countersigned by the Chairperson of the Authority. The
24 Authority may designate any of its members or any officer or
25 employee of the Authority to affix the signature of the
26 Chairperson and another to affix the signature of the
27 treasurer to any check or draft for payment of salaries or
28 wages and for payment of any other obligations of not more
29 than $2,500. In case any officer whose signature appears upon
30 any check or draft, issued pursuant to this Act, ceases to
31 hold his office before the delivery thereof to the payee, his
32 signature nevertheless shall be valid and sufficient for all
33 purposes with the same effect as if he had remained in office
34 until delivery thereof. No bank or savings and loan
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1 association shall receive public funds as permitted by this
2 Section, unless it has complied with the requirements
3 established pursuant to Section 6 of the Public Funds
4 Investment Act.
5 Section 845-45. (a) No member, officer, agent, or
6 employee of the Authority shall, in his or her own name or in
7 the name of a nominee, be an officer or director or hold an
8 ownership interest of more than 7 1/2% in any person,
9 association, trust, corporation, partnership, or other entity
10 that is, in its own name or in the name of a nominee, a party
11 to a contract or agreement upon which the member, officer,
12 agent, or employee may be called upon to act or vote.
13 (b) With respect to any direct or any indirect interest,
14 other than an interest prohibited in subsection (a), in a
15 contract or agreement upon which the member, officer, agent,
16 or employee may be called upon to act or vote, a member,
17 officer, agent, or employee of the Authority shall disclose
18 the interest to the secretary of the Authority before the
19 taking of final action by the Authority concerning the
20 contract or agreement and shall so disclose the nature and
21 extent of the interest and his or her acquisition of it, and
22 those disclosures shall be publicly acknowledged by the
23 Authority and entered upon the minutes of the Authority. If a
24 member, officer, agent, or employee of the Authority holds
25 such an interest, then he or she shall refrain from any
26 further official involvement in regard to the contract or
27 agreement, from voting on any matter pertaining to the
28 contract or agreement, and from communicating with other
29 members of the Authority or its officers, agents, and
30 employees concerning the contract or agreement.
31 Notwithstanding any other provision of law, any contract or
32 agreement entered into in conformity with this subsection (b)
33 shall not be void or invalid by reason of the interest
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1 described in this subsection, nor shall any person so
2 disclosing the interest and refraining from further official
3 involvement as provided in this subsection be guilty of an
4 offense, be removed from office, or be subject to any other
5 penalty on account of that interest.
6 (c) Any contract or agreement made in violation of
7 paragraphs (a) or (b) of this Section shall be null and void
8 and give rise to no action against the Authority.
9 Section 845-50. The fiscal year for the Authority shall
10 commence on the first of July. As soon after the end of each
11 fiscal year as may be expedient, the Authority shall cause to
12 be prepared and printed a complete report and financial
13 statement of its operations and of its assets and
14 liabilities. A reasonably sufficient number of copies of such
15 report shall be printed for distribution to persons
16 interested, upon request, and a copy thereof shall be filed
17 with the Governor, the Secretary of State, the State
18 Comptroller, the Secretary of the Senate and the Chief Clerk
19 of the House of Representatives.
20 Section 845-55. For the purposes of the Illinois
21 Securities Law of 1953, bonds issued by the Authority shall
22 be deemed to be securities issued by a public instrumentality
23 of the State of Illinois.
24 Section 845-60. Tax Exemption. The tax exemptions of
25 outstanding bonds issued by the Predecessor Authorities
26 pursuant to sections of the enabling acts of the Predecessor
27 Authorities applicable to those bonds when issued shall
28 remain valid and continue to be recognized by the State until
29 final payment of those bonds, notwithstanding the repeal of
30 the enabling acts of the Predecessor Authorities.
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1 Section 845-65. If any provision of this Act is held
2 invalid, such provision shall be deemed to be excised and the
3 invalidity thereof shall not affect any of the other
4 provisions of this Act. If the application of any provision
5 of this Act to any person or circumstance is held invalid, it
6 shall not affect the application of such provision to such
7 persons or circumstances other than those as to which it is
8 held invalid.
9 Section 845-70. Tax avoidance. Notwithstanding any other
10 provision of law, the Authority shall not enter into any
11 agreement providing for the purchase and lease of tangible
12 personal property that results in the avoidance of taxation
13 under the Retailers' Occupation Tax Act, the Use Tax Act, the
14 Service Use Tax Act, or the Service Occupation Tax Act,
15 without the prior written consent of the Governor.
16 Section 845-75. Transfer of functions from previously
17 existing authorities to the Illinois Finance Authority. The
18 Illinois Finance Authority created by the Illinois Finance
19 Authority Act shall succeed to, assume and exercise all
20 rights, powers, duties and responsibilities formerly
21 exercised by the following Authorities and entities (herein
22 called the "Predecessor Authorities") prior to the abolition
23 of the Predecessor Authorities by this Act:
24 The Illinois Development Finance Authority
25 The Illinois Farm Development Authority
26 The Illinois Health Facilities Authority
27 The Illinois Educational Facilities Authority
28 The Illinois Community Development Finance Corporation
29 The Illinois Rural Bond Bank
30 The Research Park Authority
31 All books, records, papers, documents and pending
32 business in any way pertaining to the Predecessor Authorities
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1 are transferred to the Illinois Finance Authority, but any
2 rights or obligations of any person under any contract made
3 by, or under any rules, regulations, uniform standards,
4 criteria and guidelines established or approved by, such
5 Predecessor Authorities shall be unaffected thereby. All
6 bonds, notes or other evidences of indebtedness outstanding
7 on the effective date of this Act shall be unaffected by the
8 transfer of functions to the Illinois Finance Authority. No
9 rule, regulation, standard, criteria or guideline
10 promulgated, established or approved by the Predecessor
11 Authorities pursuant to an exercise of any right, power, duty
12 or responsibility assumed by and transferred to the Illinois
13 Finance Authority shall be affected by this Act, and all such
14 rules, regulations, standards, criteria and guidelines shall
15 become those of the Illinois Finance Authority until such
16 time as they are amended or repealed by the Illinois Finance
17 Authority.
18 Section 845-80. Any reference in statute, in rule, or
19 otherwise to the following entities is a reference to the
20 Illinois Finance Authority created by this Act:
21 The Illinois Development Finance Authority.
22 The Illinois Farm Development Authority.
23 The Illinois Health Facilities Authority.
24 The Illinois Research Park Authority.
25 The Illinois Rural Bond Bank.
26 The Illinois Educational Facilities Authority.
27 The Illinois Community Development Finance Corporation.
28 Section 845-85. Any reference in statute, in rule, or
29 otherwise to the following Acts is a reference to this Act:
30 The Illinois Development Finance Authority Act.
31 The Illinois Farm Development Act.
32 The Illinois Health Facilities Authority Act.
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1 The Illinois Research Park Authority Act.
2 The Rural Bond Bank Act.
3 The Illinois Educational Facilities Authority Act.
4 The Illinois Community Development Finance Corporation
5 Act.
6 ARTICLE 890
7 AMENDATORY PROVISIONS
8 Section 890-1. The Statute on Statutes is amended by
9 changing Section 8 as follows:
10 (5 ILCS 70/8) (from Ch. 1, par. 1107)
11 Sec. 8. Omnibus Bond Acts.
12 (a) A citation to the Omnibus Bond Acts is a citation to
13 all of the following Acts, collectively, as amended from time
14 to time: the Bond Authorization Act, the Registered Bond
15 Act, the Municipal Bond Reform Act, the Local Government Debt
16 Reform Act, subsection (a) of Section 1-7 of the Property Tax
17 Extension Limitation Act, subsection (a) of Section 18-190 of
18 the Property Tax Code, the Uniform Facsimile Signature of
19 Public Officials Act, the Local Government Bond Validity Act,
20 the Illinois Development Finance Authority Act, the Public
21 Funds Investment Act, the Local Government Credit Enhancement
22 Act, the Local Government Defeasance of Debt Law, the
23 Intergovernmental Cooperation Act, the Local Government
24 Financial Planning and Supervision Act, the Special
25 Assessment Supplemental Bond and Procedure Act, Section 12-5
26 of the Election Code, and any similar Act granting additional
27 omnibus bond powers to governmental entities generally,
28 whether enacted before, on, or after the effective date of
29 this amendatory Act of 1989.
30 (b) The General Assembly recognizes that the
31 proliferation of governmental entities has resulted in the
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1 enactment of hundreds of statutory provisions relating to the
2 borrowing and other powers of governmental entities. The
3 General Assembly addresses and has addressed problems common
4 to all such governmental entities so that they have equal
5 access to the municipal bond market. It has been, and will
6 continue to be, the intention of the General Assembly to
7 enact legislation applicable to governmental entities in an
8 omnibus fashion, as has been done in the provisions of the
9 Omnibus Bond Acts.
10 (c) It is and always has been the intention of the
11 General Assembly that the Omnibus Bond Acts are and always
12 have been supplementary grants of power, cumulative in nature
13 and in addition to any power or authority granted in any
14 other laws of the State. The Omnibus Bond Acts are
15 supplementary grants of power when applied in connection with
16 any similar grant of power or limitation contained in any
17 other law of the State, whether or not the other law is
18 enacted or amended after an Omnibus Bond Act or appears to be
19 more restrictive than an Omnibus Bond Act, unless the General
20 Assembly expressly declares in such other law that a
21 specifically named Omnibus Bond Act does not apply.
22 (d) All instruments providing for the payment of money
23 executed by or on behalf of any governmental entity organized
24 by or under the laws of this State, including without
25 limitation the State, to carry out a public governmental or
26 proprietary function, acting through its corporate
27 authorities, or which any governmental entity has assumed or
28 agreed to pay, which were:
29 (1) issued or authorized to be issued by
30 proceedings adopted by such corporate authorities before
31 the effective date of this amendatory Act of 1989;
32 (2) issued or authorized to be issued in accordance
33 with the procedures set forth in or pursuant to any
34 authorization contained in any of the Omnibus Bond Acts;
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1 and
2 (3) issued or authorized to be issued for any
3 purpose authorized by the laws of this State, are valid
4 and legally binding obligations of the governmental
5 entity issuing such instruments, payable in accordance
6 with their terms.
7 (Source: P.A. 90-480, eff. 8-17-97; 91-57, eff. 6-30-99.)
8 Section 890-2. The Department of Commerce and Community
9 Affairs Law of the Civil Administrative Code of Illinois is
10 amended by changing Sections 605-675, 605-915, 605-920, and
11 605-925 as follows:
12 (20 ILCS 605/605-675) (was 20 ILCS 605/46.66)
13 Sec. 605-675. Exporter award program. The Department
14 shall establish and operate, in cooperation with the
15 Department of Agriculture and the Illinois Development
16 Finance Authority, an annual awards program to recognize
17 Illinois-based exporters. In developing criteria for the
18 awards, the Department shall give consideration to the
19 exporting efforts of small and medium sized businesses,
20 first-time exporters, and other appropriate categories.
21 (Source: P.A. 91-239, eff. 1-1-00.)
22 (20 ILCS 605/605-915) (was 20 ILCS 605/46.45)
23 Sec. 605-915. Assisting local governments to achieve
24 lower borrowing costs. To cooperate with the Illinois
25 Development Finance Authority in assisting local governments
26 to achieve overall lower borrowing costs and more favorable
27 terms under Sections 7.50 through 7.61 of the Illinois
28 Development Finance Authority Act, including using the
29 Department's federally funded Community Development
30 Assistance Program for those purposes.
31 (Source: P.A. 91-239, eff. 1-1-00.)
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1 (20 ILCS 605/605-920) (was 20 ILCS 605/46.47)
2 Sec. 605-920. Assisting local governments; debt
3 management, capital facility planning, infrastructure. To
4 provide, in cooperation with the Illinois Development Finance
5 Authority, technical assistance to local governments with
6 respect to debt management and bond issuance, capital
7 facility planning, infrastructure financing, infrastructure
8 maintenance, fiscal management, and other infrastructure
9 areas.
10 (Source: P.A. 91-239, eff. 1-1-00.)
11 (20 ILCS 605/605-925) (was 20 ILCS 605/46.48)
12 Sec. 605-925. Helping local governments reduce
13 infrastructure costs. To develop and recommend to the
14 Governor and the General Assembly, in cooperation with the
15 Illinois Development Finance Authority and local governments,
16 methods and techniques that can be used to help local
17 governments reduce their public infrastructure costs,
18 including strengthened local financial management, user fees,
19 and other appropriate options.
20 (Source: P.A. 91-239, eff. 1-1-00.)
21 Section 890-3. The Illinois Enterprise Zone Act is
22 amended by changing Section 7 as follows:
23 (20 ILCS 655/7) (from Ch. 67 1/2, par. 611)
24 Sec. 7. State Incentives Regarding Public Services and
25 Physical Infrastructure.
26 (a) This Act does not restrict tax incentive financing
27 pursuant to the "Tax Increment Allocation Redevelopment Act".
28 (b) Industrial development bonds. Priority in the use
29 of industrial development bonds issued by the Illinois
30 Development Finance Authority shall be given to businesses
31 located in an Enterprise Zone.
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1 (c) Deposit of State funds by the State Treasurer. The
2 State Treasurer is authorized and encouraged to place
3 deposits of State funds with financial institutions doing
4 business in an Enterprise Zone.
5 (Source: P.A. 84-1417.)
6 Section 890-4. The Energy Conservation and Coal
7 Development Act is amended by changing Section 15 as follows:
8 (20 ILCS 1105/15) (from Ch. 96 1/2, par. 7415)
9 Sec. 15. (a) The Department, in cooperation with the
10 Illinois Development Finance Authority, shall establish a
11 program to assist units of local government, as defined in
12 the Illinois Development Finance Authority Act, to identify
13 and arrange financing for energy conservation projects for
14 buildings and facilities owned or leased by those units of
15 local government.
16 (b) The Department, in cooperation with the Illinois
17 Health Facilities Authority, shall establish a program to
18 assist health facilities to identify and arrange financing
19 for energy conservation projects for buildings and facilities
20 owned or leased by those health facilities.
21 (Source: P.A. 87-852; 88-45.)
22 Section 890-5. The Department of Public Health Powers
23 and Duties Law of the Civil Administrative Code of Illinois
24 is amended by changing Section 2310-200 as follows:
25 (20 ILCS 2310/2310-200) (was 20 ILCS 2310/55.53)
26 Sec. 2310-200. Programs to expand access to primary
27 care.
28 (a) The Department shall establish a program to expand
29 access to comprehensive primary care in medically underserved
30 communities throughout Illinois. This program may include
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1 the provision of financial support and technical assistance
2 to eligible community health centers. To be eligible for
3 those grants, community health centers must meet requirements
4 comparable to those enumerated in Sections 329 and 330 of the
5 federal Public Health Service Act. In establishing its
6 program, the Department shall avoid duplicating resources in
7 areas already served by community health centers.
8 (b) The Department may develop financing programs with
9 the Illinois Development Finance Authority to carry out the
10 purposes of the Civil Administrative Code of Illinois or any
11 other Act that the Department is responsible for
12 administering. The Department may transfer to the Illinois
13 Development Finance Authority, into an account outside of the
14 State treasury, any moneys it deems necessary from its
15 accounts to establish bond reserve or credit enhancement
16 escrow accounts, or loan or equipment leasing programs. The
17 disposition of moneys at the conclusion of any such financing
18 program shall be determined by an interagency agreement.
19 (Source: P.A. 91-239, eff. 1-1-00.)
20 Section 890-6. The Asbestos Abatement Finance Act is
21 amended by changing Sections 2 and 3 as follows:
22 (20 ILCS 3510/2) (from Ch. 111 1/2, par. 8102)
23 Sec. 2. Definitions. The following words and terms,
24 whether or not capitalized, have the following meanings,
25 unless the context or use clearly requires otherwise:
26 "Asbestos" means asbestos as defined and used in the
27 federal Asbestos Hazard Emergency Response Act of 1986, as
28 now or hereafter amended, including the regulations
29 promulgated under that Act.
30 "Asbestos Abatement Project" means asbestos inspection,
31 planning and response action under and within the meaning of
32 the federal Asbestos Hazard Emergency Response Act of 1986,
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1 as now or hereafter amended, to abate a health hazard caused
2 directly or indirectly by the existence of asbestos in any
3 building or other facility owned, operated, maintained or
4 occupied in whole or in part by a public corporation or a
5 private institution.
6 "Authority" means the Illinois Development Finance
7 Authority.
8 "Board" means the Board of the Authority.
9 "Bond" means any bond, note or other evidence of
10 indebtedness issued by the Authority under this Act.
11 "Chairman" means the Chairman of the Authority.
12 "Cost" as applied to an asbestos abatement project means
13 the costs incurred or to be incurred by a public corporation
14 or a private institution in the removal, encapsulation,
15 enclosure, repair, or maintenance of asbestos in any building
16 or other facility owned, operated, maintained or occupied in
17 whole or in part by a public corporation or a private
18 institution, including all incidental costs such as
19 engineering, architectural, consulting and legal expenses
20 incurred in connection with an asbestos abatement project,
21 plans, specifications, surveys, estimates of costs and
22 revenues, finance charges, interest before and during
23 construction of an asbestos abatement project and, for up to
24 18 months after completion of construction, other expenses
25 necessary or incident to determining the need, feasibility or
26 practicability of an asbestos abatement project,
27 administrative expenses, and such other costs, charges and
28 expenses as may be necessary or incident to the construction
29 or financing of any asbestos abatement project. As used in
30 this Act, "cost" means not only costs of an asbestos
31 abatement project expected to be incurred in the future, but
32 costs already incurred and paid by a public corporation or a
33 private institution so that a public corporation or a private
34 institution shall be permitted to reimburse itself for those
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1 costs previously incurred and paid.
2 "Person" means any individual, firm, partnership,
3 association, or corporation, separately or in any
4 combination.
5 "Private institution" means any not-for-profit
6 organization within the meaning of Section 501(c)(3) of the
7 Internal Revenue Code of 1986, as now or hereafter amended,
8 including any private or nonpublic pre-school, day care
9 center, day or residential educational institution that
10 provides elementary or secondary education for grades 12 or
11 under, any private or nonpublic college or university, or any
12 hospital, health care or long term care institution.
13 "Private institution security" means any bond, note, loan
14 agreement, or other evidence of indebtedness which a private
15 institution is legally authorized to issue or enter into for
16 the purpose of financing or refinancing the costs of an
17 asbestos abatement project.
18 "Public corporation" means any body corporate organized
19 by or under the laws of this State to carry out a public
20 governmental or proprietary function, including the State,
21 any State agency, any school district, park district, city,
22 village, incorporated town, county, township, drainage or any
23 other type of district, board, commission, authority,
24 university, public community college or any combination
25 (including any combination under Section 10 of Article VII of
26 the Illinois Constitution or under the Intergovernmental
27 Cooperation Act of 1973, as now or hereafter amended), acting
28 through their corporate authorities, and any other unit of
29 local government within the meaning of Section 1 of Article
30 VII of the Illinois Constitution.
31 "Public corporation security" means any bond, note, loan
32 agreement, or other evidence of indebtedness which a public
33 corporation is legally authorized to issue or enter into for
34 the purpose of financing or refinancing the costs of an
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1 asbestos abatement project.
2 "Secretary" means the Secretary of the Authority.
3 "State" means the State of Illinois.
4 "Treasurer" means the Treasurer of the Authority.
5 (Source: P.A. 86-976.)
6 (20 ILCS 3510/3) (from Ch. 111 1/2, par. 8103)
7 Sec. 3. Powers. In addition to the powers set forth
8 elsewhere in this Act and in The Illinois Development Finance
9 Authority Act, as now or hereafter amended, the Authority
10 may:
11 (a) Adopt an official seal.
12 (b) Maintain asbestos abatement suboffices at places
13 within the State as it designates.
14 (c) Sue and be sued, plead and be impleaded, all in its
15 own name, and agree to binding arbitration of any dispute to
16 which it is a party under this Act.
17 (d) Adopt bylaws, rules, and regulations to carry out
18 the provisions and purposes of this Act.
19 (e) Employ, either as regular employees or independent
20 contractors, consultants, engineers, architects, accountants,
21 attorneys, financial experts, construction experts,
22 superintendents, managers, other professional personnel, and
23 other persons as may be necessary or appropriate in the
24 judgment of the Authority to achieve the purposes of this
25 Act, and fix their compensation.
26 (f) Determine the locations of, develop, establish,
27 construct, erect, acquire, own, repair, remodel, add to,
28 extend, improve, equip, operate, regulate, and maintain
29 facilities to the extent necessary to accomplish the purposes
30 of this Act.
31 (g) Acquire, hold, lease, use, encumber, transfer, or
32 dispose of real and personal property, including the
33 alteration or demolition of improvements to real estate,
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1 necessary to accomplish the purposes of this Act.
2 (h) Enter into contracts of any kind in furtherance of
3 or which are necessary or incidental to the purposes of this
4 Act or actions of the Authority taken under this Act.
5 (i) Regulate the use and operation of asbestos abatement
6 projects developed under the provisions of this Act, except
7 that asbestos abatement projects undertaken by schools shall
8 be governed by the Asbestos Abatement Act, the Asbestos
9 Hazard Emergency Response Act and by the regulations
10 promulgated by the Department of Public Health pursuant to
11 those Acts.
12 (j) Purchase from time to time by negotiated sale, upon
13 such terms as the Authority shall determine, public
14 corporation securities issued by one or more public
15 corporations for the purpose of paying costs of asbestos
16 abatement projects or private institution securities issued
17 by one or more private institutions for the purpose of paying
18 costs of asbestos abatement projects.
19 (k) Make loans from time to time, upon such terms as the
20 Authority shall determine, to public corporations and private
21 institutions for the purpose of paying costs of asbestos
22 abatement projects.
23 (l) Issue bonds in one or more series pursuant to one or
24 more resolutions adopted by the Board for the purpose of
25 purchasing or acquiring public corporation securities or
26 private institution securities issued for the purpose of
27 paying costs of asbestos abatement projects or for the
28 purpose of making loans to public corporations or private
29 institutions for the purpose of paying costs of asbestos
30 abatement projects, providing for the payment of any interest
31 deemed necessary on such bonds, paying for the costs of
32 issuance of such bonds, providing for the payment of any
33 premium on any insurance or the cost of any guarantees,
34 letters of credit or other credit enhancement facilities, or
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1 providing for the funding of any reserves deemed necessary in
2 connection with such bonds, and refunding or advance
3 refunding (one or more times) any such bonds. Such bonds may
4 bear interest at any rate or rates (whether fixed or
5 variable, and whether current or deferred), notwithstanding
6 any other provision of law to the contrary, which rate or
7 rates may be established by an index or formula which may be
8 implemented or established by persons appointed or retained
9 therefor by the Authority, may bear such date or dates, may
10 be payable at such time or times and at such place or places,
11 may mature at any time or times not later than 40 years from
12 the date of issuance, may be sold at competitive or
13 negotiated sale at such time or times and at such price or
14 prices, may be secured by such pledges, covenants, reserves,
15 guarantees, letters of credit or other credit enhancement
16 facilities, may be issued and secured by such form of trust
17 agreement between the Authority and a bank or trust company
18 having the powers of a trust company within or without the
19 State, may be executed in such manner, may be subject to
20 redemption prior to maturity, and may be subject to such
21 other terms and conditions, as are provided by the Authority
22 in the resolution authorizing the issuance of any such bonds.
23 (m) Provide for the establishment and funding of any
24 reserves or other funds or accounts deemed necessary by the
25 Authority in connection with any bonds issued by the
26 Authority under this Act, any public corporation securities
27 or private institution securities purchased or acquired by
28 the Authority, or any loan made by the Authority to a public
29 corporation or a private institution, and deposit into such
30 reserves, funds or accounts the proceeds of any bonds issued
31 by the Authority or any other funds of the Authority or any
32 funds of a public corporation or a private institution which
33 may be applied for such purpose. Such reserves, funds or
34 accounts may be held by a corporate trustee, which may be any
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1 trust company or bank having the powers of a trust company
2 located within or outside the State.
3 (n) Pledge any public corporation security or private
4 institution security, including any payment thereon, and any
5 other funds of the Authority which may be applied to such
6 purpose, as security for any bonds issued by the Authority or
7 to secure any letter of credit, guarantee or other credit
8 enhancement facility.
9 (o) Enter into agreements or other transactions with any
10 federal, State or local governmental agency in connection
11 with this Act.
12 (p) Receive and accept from any federal agency, subject
13 to the approval of the Governor, grants for or in aid of the
14 construction of asbestos abatement projects or for research
15 and development with respect to asbestos abatement projects,
16 such grants to be held, used and applied only for the
17 purposes for which such grants were made.
18 (q) Charge fees to defray the cost of letters of credit,
19 guarantees or other credit enhancement facilities, trustees,
20 depositaries, paying agents, bond registrars, escrow agents,
21 tender agents and other administrative and program expenses;
22 and otherwise charge such program fees consistent with the
23 purposes of this Act as the Authority shall from time to time
24 determine. Any such fees shall be payable in such amounts and
25 at such times as the Authority shall determine, and the
26 amount of the fees need not be uniform among the various
27 series of bonds issued by the Authority or among the issuers
28 of public corporation securities or private institution
29 securities purchased or acquired or proposed to be purchased
30 or acquired by the Authority.
31 (r) Prescribe application forms, notification forms,
32 forms of contracts, loan agreements, financing agreements and
33 security agreements, and such other forms as the Authority
34 deems necessary or appropriate in connection with this Act.
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1 (s) Purchase or acquire any bonds of the Authority
2 issued under this Act for cancellation, resale, or
3 reissuance.
4 (t) Subject to the provisions of any resolution,
5 indenture, or other contract with the owners of bonds, sell,
6 or otherwise transfer or dispose of public corporation
7 securities or private institution securities acquired under
8 this Act.
9 (u) Do any and all things necessary or convenient to
10 carry out the purposes of, and exercise the powers expressly
11 given and granted in, this Act, including the adoption of
12 rules under The Illinois Administrative Procedure Act, as now
13 or hereafter amended, as are necessary to carry out the
14 powers and duties conferred by this Act.
15 (Source: P.A. 86-976.)
16 Section 890-7. The Illinois Environmental Facilities
17 Financing Act is amended by changing Sections 3, 4, and 7 as
18 follows:
19 (20 ILCS 3515/3) (from Ch. 127, par. 723)
20 Sec. 3. Definitions. In this Act, unless the context
21 otherwise clearly requires, the terms used herein shall have
22 the meanings ascribed to them as follows:
23 (a) "Bonds" means any bonds, notes, debentures,
24 temporary, interim or permanent certificates of indebtedness
25 or other obligations evidencing indebtedness.
26 (b) "Directing body" means the members of the State
27 authority.
28 (c) "Environmental facility" or "facilities" means any
29 land, interest in land, building, structure, facility,
30 system, fixture, improvement, appurtenance, machinery,
31 equipment or any combination thereof, and all real and
32 personal property deemed necessary therewith, having to do
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1 with or the primary purpose of which is, reducing,
2 controlling or preventing pollution, or reclaiming surface
3 mined land. Environmental facilities may be located anywhere
4 in this State and may include those facilities or processes
5 used to (i) remove potential pollutants from coal prior to
6 combustion, (ii) reduce the volume or composition of
7 hazardous waste by changing or replacing manufacturing
8 equipment or processes, (iii) recycle hazardous waste, or
9 (iv) recover resources from hazardous waste. Environmental
10 facilities may also include (i) solar collectors, solar
11 storage mechanisms and solar energy systems, as defined in
12 Section 10-5 of the Property Tax Code; (ii) facilities
13 designed to collect, store, transfer, or distribute, for
14 residential, commercial or industrial use, heat energy which
15 is a by-product of industrial or energy generation processes
16 and which would otherwise be wasted; (iii) facilities
17 designed to remove pollutants from emissions that result from
18 the combustion of coal; and (iv) facilities for the
19 combustion of coal in a fluidized bed boiler. Environmental
20 facilities include landfill gas recovery facilities, as
21 defined in the Illinois Environmental Protection Act.
22 Environmental facilities do not include any land,
23 interest in land, buildings, structure, facility, system,
24 fixture, improvement, appurtenance, machinery, equipment or
25 any combination thereof, and all real and personal property
26 deemed necessary therewith, having to do with a hazardous
27 waste disposal site, except where such land, interest in
28 land, buildings, structure, facility, system, fixture,
29 improvement, appurtenance, machinery, equipment, real or
30 personal property are used for the management or recovery of
31 gas generated by a hazardous waste disposal site or are used
32 for recycling, reclamation, tank storage or treatment in
33 tanks which occurs on the same site as a hazardous waste
34 disposal site.
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1 (d) "Finance" or "financing" means the issuing of
2 revenue bonds pursuant to Section 9 of this Act by the State
3 authority for the purpose of using the proceeds to pay
4 project costs for an environmental or hazardous waste
5 treatment facility including one in or to which title at all
6 times remains in a person other than the State authority, in
7 which case the bonds of the Authority are secured by a pledge
8 of one or more notes, debentures, bonds or other obligations,
9 secured or unsecured, of any person.
10 (e) "Person" means any individual, partnership,
11 copartnership, firm, company, corporation (including public
12 utilities), association, joint stock company, trust, estate,
13 political subdivision, state agency, or any other legal
14 entity, or their legal representative, agent or assigns.
15 (f) "Pollution" means any form of environmental
16 pollution including, but not limited to, water pollution, air
17 pollution, land pollution, solid waste pollution, thermal
18 pollution, radiation contamination, or noise pollution as
19 determined by the various standards prescribed by this state
20 or the federal government and including but not limited to,
21 anything which is considered as pollution or environmental
22 damage in the Environmental Protection Act, approved June 29,
23 1970, as now or hereafter amended.
24 (g) "Project costs" as applied to environmental or
25 hazardous waste treatment facilities financed under this Act
26 means and includes the sum total of all reasonable or
27 necessary costs incidental to the acquisition, construction,
28 reconstruction, repair, alteration, improvement and extension
29 of such environmental or hazardous waste treatment facilities
30 including without limitation the cost of studies and surveys;
31 plans, specifications, architectural and engineering
32 services; legal, organization, marketing or other special
33 services; financing, acquisition, demolition, construction,
34 equipment and site development of new and rehabilitated
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1 buildings; rehabilitation, reconstruction, repair or
2 remodeling of existing buildings and all other necessary and
3 incidental expenses including an initial bond and interest
4 reserve together with interest on bonds issued to finance
5 such environmental or hazardous waste treatment facilities to
6 a date 6 months subsequent to the estimated date of
7 completion.
8 (h) "State authority" or "authority" means the Illinois
9 Development Finance Authority created by the Illinois
10 Development Finance Authority Act.
11 (i) "Small business" or "small businesses" means those
12 commercial and manufacturing entities which at the time of
13 their application to the authority meet those criteria, as
14 interpreted and applied by the State authority, for
15 definition as a "small business" established for the Small
16 Business Administration and set forth as Section 121.3-10 of
17 Part 121 of Title 13 of the Code of Federal Regulations as
18 such Section is in effect on the effective date of this
19 amendatory Act of 1975.
20 (j) "New coal-fired electric utility steam generating
21 plants" and "new coal-fired industrial boilers" means those
22 plants and boilers on which construction begins after the
23 effective date of this amendatory Act of 1981.
24 (k) "Hazardous waste treatment facility" means any land,
25 interest in land, building, structure, facility, system,
26 fixture, improvement, appurtenance, machinery, equipment, or
27 any combination thereof, and all real and personal property
28 deemed necessary therewith, the primary purpose of which is
29 to recycle, incinerate, or physically, chemically,
30 biologically or otherwise treat hazardous wastes, or to
31 reduce the production of hazardous wastes by changing or
32 replacing manufacturing equipment or processes, and which
33 meets the requirements of the Environmental Protection Act
34 and all regulations adopted thereunder.
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1 (Source: P.A. 88-670, eff. 12-2-94.)
2 (20 ILCS 3515/4) (from Ch. 127, par. 724)
3 Sec. 4. Transfer of functions from the Illinois
4 Development Finance Environmental Facilities Financing
5 Authority to the Illinois Development Finance Authority. The
6 Illinois Development Finance Authority created by the
7 Illinois Development Finance Authority Act shall succeed to,
8 assume and exercise all rights, powers, duties and
9 responsibilities formerly exercised by the Illinois
10 Development Finance Environmental Facilities Financing
11 Authority prior to the abolition of that Authority by this
12 amendatory Act of the 93rd General Assembly 1983. All books,
13 records, papers, documents and pending business in any way
14 pertaining to the former Illinois Development Finance
15 Environmental Facilities Financing Authority are transferred
16 to the Illinois Development Finance Authority, but any rights
17 or obligations of any person under any contract made by, or
18 under any rules, regulations, uniform standards, criteria and
19 guidelines established or approved by such former Illinois
20 Environmental Facilities Financing Authority shall be
21 unaffected thereby. All bonds, notes or other evidences of
22 indebtedness outstanding on the effective date of this
23 amendatory Act of the 93rd General Assembly 1983 shall be
24 unaffected by the transfer of functions to the Illinois
25 Development Finance Authority. No rule, regulation,
26 standard, criteria or guideline promulgated, established or
27 approved by the former Illinois Development Finance
28 Environmental Facilities Financing Authority pursuant to an
29 exercise of any right, power, duty or responsibility assumed
30 by and transferred to the Illinois Development Finance
31 Authority shall be affected by this amendatory Act of the
32 93rd General Assembly 1983, and all such rules, regulations,
33 standards, criteria and guidelines shall become those of the
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1 Illinois Development Finance Authority until such time as
2 they are amended or repealed by the Authority. Any action,
3 including without limitation, approvals of applications for
4 bonds and resolutions constituting official action under the
5 Internal Revenue Code, by the Illinois Environmental
6 Facilities Financing Authority prior to the September 23,
7 1983 effective date of Public Act 83-669 shall remain
8 effective to the same extent as if such action had been taken
9 by the Authority and shall be deemed to be action taken by
10 the Authority. The State authority is constituted a public
11 instrumentality and the exercise by the State authority of
12 the powers conferred by this Act shall be deemed and held to
13 be the performance of an essential public function. Sections
14 7.42 through 7.48 of The Illinois Development Finance
15 Authority Act shall not apply to the provision of financing
16 for environmental facilities by the Authority, unless such
17 financing is provided pursuant to such Sections of such Act.
18 (Source: P.A. 83-1362.)
19 (20 ILCS 3515/7) (from Ch. 127, par. 727)
20 Sec. 7. Powers. In addition to the powers otherwise
21 authorized by law, for the purposes of this Act, the State
22 authority shall have the following powers together with all
23 powers incidental thereto or necessary for the performance
24 thereof:
25 (1) to have perpetual succession as a body politic and
26 corporate;
27 (2) to adopt bylaws for the regulation of its affairs
28 and the conduct of its business;
29 (3) to sue and be sued and to prosecute and defend
30 actions in the courts;
31 (4) to have and to use a corporate seal and to alter the
32 same at pleasure;
33 (5) to maintain an office at such place or places as it
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1 may designate;
2 (6) to determine the location, pursuant to the
3 Environmental Protection Act, and the manner of construction
4 of any environmental or hazardous waste treatment facility to
5 be financed under this Act and to acquire, construct,
6 reconstruct, repair, alter, improve, extend, own, finance,
7 lease, sell and otherwise dispose of the facility, to enter
8 into contracts for any and all of such purposes, to designate
9 a person as its agent to determine the location and manner of
10 construction of an environmental or hazardous waste treatment
11 facility undertaken by such person under the provisions of
12 this Act and as agent of the authority to acquire, construct,
13 reconstruct, repair, alter, improve, extend, own, lease, sell
14 and otherwise dispose of the facility, and to enter into
15 contracts for any and all of such purposes;
16 (7) to finance and to lease or sell to a person any or
17 all of the environmental or hazardous waste treatment
18 facilities upon such terms and conditions as the directing
19 body considers proper, and to charge and collect rent or
20 other payments therefor and to terminate any such lease or
21 sales agreement or financing agreement upon the failure of
22 the lessee, purchaser or debtor to comply with any of the
23 obligations thereof; and to include in any such lease or
24 other agreement, if desired, provisions that the lessee,
25 purchaser or debtor thereunder shall have options to renew
26 the term of the lease, sales or other agreement for such
27 period or periods and at such rent or other consideration as
28 shall be determined by the directing body or to purchase any
29 or all of the environmental or hazardous waste treatment
30 facilities for a nominal amount or otherwise or that at or
31 prior to the payment of all of the indebtedness incurred by
32 the authority for the financing of such environmental or
33 hazardous waste treatment facilities the authority may convey
34 any or all of the environmental or hazardous waste treatment
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1 facilities to the lessee or purchaser thereof with or without
2 consideration;
3 (8) to issue bonds for any of its corporate purposes,
4 including a bond issuance for the purpose of financing a
5 group of projects involving environmental facilities, and to
6 refund those bonds, all as provided for in this Act and
7 subject to Section 13 of this Act;
8 (9) generally to fix and revise from time to time and
9 charge and collect rates, rents, fees and charges for the use
10 of and services furnished or to be furnished by any
11 environmental or hazardous waste treatment facility or any
12 portion thereof and to contract with any person, firm or
13 corporation or other body public or private in respect
14 thereof;
15 (10) to employ consulting engineers, architects,
16 attorneys, accountants, construction and financial experts,
17 superintendents, managers and such other employees and agents
18 as may be necessary in its judgment and to fix their
19 compensation;
20 (11) to receive and accept from any public agency loans
21 or grants for or in aid of the construction of any
22 environmental facility and any portion thereof, or for
23 equipping the facility, and to receive and accept grants,
24 gifts or other contributions from any source;
25 (12) to refund outstanding obligations incurred by any
26 person to finance the cost of an environmental or hazardous
27 waste treatment facility including obligations incurred for
28 environmental or hazardous waste treatment facilities
29 undertaken and completed prior to or after the enactment of
30 this Act when the authority finds that such financing is in
31 the public interest;
32 (13) to prohibit the financing of environmental
33 facilities for new coal-fired electric steam generating
34 plants and new coal-fired industrial boilers which do not use
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1 Illinois coal as the primary source of fuel;
2 (14) to set and impose appropriate financial penalties
3 on any person who receives financing from the State authority
4 based on a commitment to use Illinois coal as the primary
5 source of fuel at a new coal-fired electric utility steam
6 generating plant or new coal-fired industrial boiler and
7 later uses non-Illinois coal as the primary source of fuel;
8 (15) to fix, determine, charge and collect any premiums,
9 fees, charges, costs and expenses, including, without
10 limitation, any application fees, program fees, commitment
11 fees, financing charges or publication fees in connection
12 with its activities under this Act; all expenses of the State
13 authority incurred in carrying out this Act are payable
14 solely from funds provided under the authority of this Act
15 and no liability shall be incurred by any authority beyond
16 the extent to which moneys are provided under this Act. All
17 fees and moneys accumulated by the Authority as provided in
18 this Act or the Illinois Development Finance Authority Act
19 shall be held outside of the State treasury and in the
20 custody of the Treasurer of the Authority; and
21 (16) to do all things necessary and convenient to carry
22 out the purposes of this Act.
23 The State authority may not operate any environmental or
24 hazardous waste treatment facility as a business except for
25 the purpose of protecting or maintaining such facility as
26 security for bonds of the State authority. No environmental
27 or hazardous waste treatment facilities completed prior to
28 January 1, 1970 may be financed by the State authority under
29 this Act, but additions and improvements to such
30 environmental or hazardous waste treatment facilities which
31 are commenced subsequent to January 1, 1970 may be financed
32 by the State authority. Any lease, sales agreement or other
33 financing agreement in connection with an environmental or
34 hazardous waste treatment facility entered into pursuant to
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1 this Act must be for a term not shorter than the longest
2 maturity of any bonds issued to finance such environmental or
3 hazardous waste treatment facility or a portion thereof and
4 must provide for rentals or other payments adequate to pay
5 the principal of and interest and premiums, if any, on such
6 bonds as the same fall due and to create and maintain such
7 reserves and accounts for depreciation, if any, as the
8 directing body determines to be necessary.
9 The Authority shall give priority to providing financing
10 for the establishment of hazardous waste treatment facilities
11 necessary to achieve the goals of Section 22.6 of the
12 Environmental Protection Act.
13 The Authority shall give special consideration to small
14 businesses in authorizing the issuance of bonds for the
15 financing of environmental facilities pursuant to subsection
16 (c) of Section 2.
17 The Authority shall make a financial report on all
18 projects financed under this Section to the General Assembly,
19 to the Governor, and to the Illinois Economic and Fiscal
20 Commission by April 1 of each year. Such report shall be a
21 public record and open for inspection at the offices of the
22 Authority during normal business hours. The report shall
23 include: (a) all applications for loans and other financial
24 assistance presented to the members of the Authority during
25 such fiscal year, (b) all projects and owners thereof which
26 have received any form of financial assistance from the
27 Authority during such year, (c) the nature and amount of all
28 such assistance, and (d) projected activities of the
29 Authority for the next fiscal year, including projection of
30 the total amount of loans and other financial assistance
31 anticipated and the amount of revenue bonds or other
32 evidences of indebtedness that will be necessary to provide
33 the projected level of assistance during the next fiscal
34 year.
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1 The requirement for reporting to the General Assembly
2 shall be satisfied by filing copies of the report with the
3 Speaker, the Minority Leader and the Clerk of the House of
4 Representatives and the President, the Minority Leader and
5 the Secretary of the Senate and the Legislative Research
6 Unit, as required by Section 3.1 of "An Act to revise the law
7 in relation to the General Assembly", approved February 25,
8 1874, as amended, and filing such additional copies with the
9 State Government Report Distribution Center for the General
10 Assembly as is required under paragraph (t) of Section 7 of
11 the State Library Act.
12 (Source: P.A. 88-519.)
13 Section 890-8. The Bond Authorization Act is amended by
14 changing Section 2 as follows:
15 (30 ILCS 305/2) (from Ch. 17, par. 6602)
16 Sec. 2. Notwithstanding the provisions of any other law
17 to the contrary, any public corporation may agree or contract
18 to pay interest on bonds or other evidences of indebtedness
19 and tax anticipation warrants issued pursuant to law at an
20 interest rate or rates not exceeding the greater of 9% per
21 annum or 125% of the rate for the most recent date shown in
22 the 20 G.O. Bonds Index of average municipal bond yields as
23 published in the most recent edition of The Bond Buyer,
24 published in New York, New York (or any successor publication
25 or index, or if such publication or index is no longer
26 published, then any index of long term municipal tax-exempt
27 bond yields then selected by a governing body), at the time
28 the contract is made for the sale of the bonds or other
29 evidences of indebtedness or tax anticipation warrants. A
30 contract is made with respect to notes or bonds when the
31 public corporation is contractually obligated to issue notes,
32 bonds, or other evidences of indebtedness or tax anticipation
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1 warrants to a purchaser who is contractually obligated to
2 purchase them; and, with respect to bonds or notes bearing
3 interest at a variable rate or subject to payment upon
4 periodic demand or put or otherwise subject to remarketing by
5 or for the public corporation, a contract is made on each
6 date of change in the variable rate or such demand, put or
7 remarketing. When bonds or other evidences of indebtedness
8 or tax anticipation warrants are to be issued by a public
9 corporation on a basis which is not tax-exempt under Section
10 103 of the Internal Revenue Code of 1986, as now or hereafter
11 amended, or successor code or provision, then the interest
12 rate or rates payable thereon shall be determined by
13 substituting 13 1/2% for 9% and 200% for 125% in the first
14 sentence of this Section.
15 These amendatory Acts of 1971, 1972, 1973, 1975, 1979,
16 1982, 1983, 1987 and 1988 are not limits upon any home rule
17 unit.
18 This Act is not a limit with respect to any bonds, notes
19 and other evidences of obligation for borrowed money issued
20 by any public corporation and purchased or otherwise acquired
21 by the Illinois Development Finance Authority, pursuant to
22 Sections 7.50 through 7.61 of the Illinois Development
23 Finance Authority Act, and such bonds, notes and other
24 evidences of obligation for borrowed money may bear interest
25 at any rate or rates, and such rate or rates may be
26 established by an index or formula which may be implemented
27 or established by persons appointed or retained therefor,
28 notwithstanding any other provision of law to the contrary.
29 (Source: P.A. 85-1440.)
30 Section 890-9. The Human Services Provider Bond Reserve
31 Payment Act is amended by changing Section 10 as follows:
32 (30 ILCS 435/10)
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1 Sec. 10. Definitions. For the purposes of this Act:
2 (a) "Service provider" means any nongovernmental entity,
3 either for-profit or not-for-profit, that enters into a
4 contract with a State agency under which the entity is paid
5 or reimbursed by the State for providing human services to
6 persons in Illinois.
7 (b) "State agency" means the Department of Public Aid,
8 the Department of Public Health, the Department of Children
9 and Family Services, the Department of Human Services, and
10 any other department or agency of State government that
11 enters into contracts with service providers under which the
12 provider is paid or reimbursed by the State for providing
13 human services to persons in Illinois.
14 (c) "Covered bond issue" means revenue bonds (i) that
15 are issued by any agency of State or local government within
16 this State, including without limitation bonds issued by the
17 Illinois Development Finance Authority, (ii) that are to be
18 directly or indirectly paid, in whole or in part, from
19 payments due to a service provider under a human services
20 contract with a State agency, and (iii) for which a debt
21 service reserve or other reserve fund has been established,
22 under the control of a named trustee, that the service
23 provider is required to replenish in the event that moneys
24 from the reserve fund are used to make payments of principal
25 or interest on the bonds.
26 (Source: P.A. 88-117; 89-507, eff. 7-1-97.)
27 Section 890-10. The Build Illinois Act is amended by
28 changing Sections 1-3 and 8-3 as follows:
29 (30 ILCS 750/1-3) (from Ch. 127, par. 2701-3)
30 Sec. 1-3. The following agencies, boards and entities of
31 State government may expend appropriations for the purposes
32 contained in this Act: Department of Natural Resources;
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1 Department of Agriculture; Illinois Development Finance
2 Authority; Capital Development Board; Department of
3 Transportation; Department of Central Management Services;
4 Illinois Arts Council; Environmental Protection Agency;
5 Historic Preservation Agency; State Board of Higher
6 Education; the Metropolitan Pier and Exposition Authority;
7 State Board of Education; Illinois Community College Board;
8 Board of Trustees of the University of Illinois; Board of
9 Trustees of Chicago State University; Board of Trustees of
10 Eastern Illinois University; Board of Trustees of Governors
11 State University; Board of Trustees of Illinois State
12 University; Board of Trustees of Northeastern Illinois
13 University; Board of Trustees of Northern Illinois
14 University; Board of Trustees of Western Illinois University;
15 and Board of Trustees of Southern Illinois University.
16 (Source: P.A. 89-4, eff. 1-1-96; 89-445, eff. 2-7-96.)
17 (30 ILCS 750/8-3) (from Ch. 127, par. 2708-3)
18 Sec. 8-3. Powers of the Department. The Department has
19 the power to:
20 (a) provide business development public infrastructure
21 loans or grants from appropriations from the Build Illinois
22 Bond Fund, the Build Illinois Purposes Fund, the Fund for
23 Illinois' Future, and the Public Infrastructure Construction
24 Loan Fund to local governments to provide or improve a
25 community's public infrastructure so as to create or retain
26 private sector jobs pursuant to the provisions of this
27 Article;
28 (b) provide affordable financing of public
29 infrastructure loans and grants to, or on behalf of, local
30 governments, local public entities, medical facilities, and
31 public health clinics from appropriations from the Public
32 Infrastructure Construction Loan Fund for the purpose of
33 assisting with the financing, or application and access to
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1 financing, of a community's public infrastructure necessary
2 to health, safety, and economic development;
3 (c) enter into agreements, accept funds or grants, and
4 engage in cooperation with agencies of the federal
5 government, or state or local governments to carry out the
6 purposes of this Article, and to use funds appropriated
7 pursuant to this Article to participate in federal
8 infrastructure loan and grant programs upon such terms and
9 conditions as may be established by the federal government;
10 (d) establish application, notification, contract, and
11 other procedures, rules, or regulations deemed necessary and
12 appropriate to carry out the provisions of this Article;
13 (e) coordinate assistance under this program with
14 activities of the Illinois Development Finance Authority in
15 order to maximize the effectiveness and efficiency of State
16 development programs;
17 (f) coordinate assistance under the Affordable Financing
18 of Public Infrastructure Loan and Grant Program with the
19 activities of the Illinois Development Finance Authority,
20 Illinois Rural Bond Bank, Illinois Farm Development
21 Authority, Illinois Housing Development Authority, Illinois
22 Environmental Protection Agency, and other federal and State
23 programs and entities providing financing assistance to
24 communities for public health, safety, and economic
25 development infrastructure;
26 (f-5) provide staff, administration, and related support
27 required to manage the programs authorized under this Article
28 and pay for the staffing, administration, and related support
29 from the Public Infrastructure Construction Loan Revolving
30 Fund;
31 (g) exercise such other powers as are necessary or
32 incidental to the foregoing.
33 (Source: P.A. 90-454, eff. 8-16-97; 91-34, eff. 7-1-99.)
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1 Section 890-11. The Illinois Pension Code is amended by
2 changing Sections 14-103.04 and 14-104.11 as follows:
3 (40 ILCS 5/14-103.04) (from Ch. 108 1/2, par. 14-103.04)
4 Sec. 14-103.04. Department. "Department": Any
5 department, institution, board, commission, officer, court,
6 or any agency of the State having power to certify payrolls
7 to the State Comptroller authorizing payments of salary or
8 wages against State appropriations, or against trust funds
9 held by the State Treasurer, except those departments
10 included under the term "employer" in the State Universities
11 Retirement System. "Department" includes the Illinois
12 Development Finance Authority. "Department" also includes
13 the Illinois Comprehensive Health Insurance Board and the
14 Illinois Rural Bond Bank.
15 (Source: P.A. 90-511, eff. 8-22-97.)
16 (40 ILCS 5/14-104.11)
17 Sec. 14-104.11. Illinois Development Finance Authority.
18 An employee may establish creditable service for periods
19 prior to the date upon which the Illinois Development Finance
20 Authority first becomes a department (as defined in Section
21 14-103.04) during which he or she was employed by the
22 Illinois Development Finance Authority or the Illinois
23 Industrial Development Authority, by applying in writing and
24 paying to the System an amount equal to (i) employee
25 contributions for the period for which credit is being
26 established, based upon the employee's compensation and the
27 applicable contribution rate in effect on the date he or she
28 last became a member of the System, plus (ii) the employer's
29 normal cost of the credit established, plus (iii) interest on
30 the amounts in items (i) and (ii) at the rate of 2.5% per
31 year, compounded annually, from the date the applicant last
32 became a member of the System to the date of payment. This
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1 payment must be paid in full before retirement, either in a
2 lump sum or in installment payments in accordance with the
3 rules of the Board.
4 (Source: P.A. 90-511, eff. 8-22-97; 90-655, eff. 7-30-98.)
5 Section 890-12. The Local Government Financial Planning
6 and Supervision Act is amended by changing Sections 4, 5, and
7 10 as follows:
8 (50 ILCS 320/4) (from Ch. 85, par. 7204)
9 Sec. 4. Petition.
10 (a) This subsection (a) applies through December 31,
11 1992. Any unit of local government upon a 2/3 vote of the
12 members of its governing body may petition the Governor for
13 the establishment of a financial planning and supervision
14 commission if the governing body of the unit of local
15 government determines that a fiscal emergency, as defined in
16 Section 3, exists or will exist within 60 days. A copy of the
17 petition shall be filed with the Illinois Development Finance
18 Authority requesting the assistance of the Authority in
19 conducting an analysis of the financial condition of the unit
20 of local government. A petition shall include the conditions
21 of fiscal emergency, a list of all amounts and types of
22 indebtedness or claims known to the unit of local government,
23 and which creditors are subject to the stay provisions of
24 Section 7 of this Act.
25 (b) This subsection (b) applies on and after January 1,
26 1993. Any unit of local government upon a 2/3 vote of the
27 members of its governing body may petition the Governor for
28 the establishment of a financial planning and supervision
29 commission if the governing body of the unit of local
30 government determines that a fiscal emergency, as defined in
31 Section 3, exists or will exist within 60 days. A petition
32 shall include the conditions of fiscal emergency and a list
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1 of all creditors of the unit of local government, which list
2 shall indicate the names, addresses, amounts and types of
3 indebtedness or claims of such creditors, and which of such
4 creditors are subject to the stay provisions of Section 7 of
5 this Act.
6 (Source: P.A. 86-1211; 87-853.)
7 (50 ILCS 320/5) (from Ch. 85, par. 7205)
8 Sec. 5. Establishment of commission.
9 (a) This subsection (a) applies through December 31,
10 1992.
11 (1) Upon receipt of a petition for establishment of a
12 financial planning and supervision commission, the Governor
13 may direct the establishment of such a commission if the
14 Governor determines that a fiscal emergency exists.
15 (2) Prior to making such determination, the Governor
16 shall give reasonable notice and opportunity for a hearing to
17 all creditors of the petitioning unit of local government
18 who are subject to the stay provisions of Section 7 of this
19 Act. The determination shall be entered not less than 60 days
20 after the filing of the petition. A determination of fiscal
21 emergency by the Governor shall be a final administrative
22 decision subject to the provisions of the Administrative
23 Review Law. The court on such review may grant exceptions to
24 the stay provisions of Section 7 of this Act as adequate
25 protection of creditors' interests or equity may require.
26 The commission shall convene within 30 days of the entry by
27 the Governor of his or her determination of the fiscal
28 emergency.
29 (3)(A) The Commission shall consist of 7 Directors.
30 (B) One Director shall be appointed by the chief
31 executive officer of the unit of local government.
32 (C) One Director shall be appointed by the majority
33 vote of the governing body of the unit of local
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1 government.
2 (D) Five Directors shall be appointed by the
3 Governor, with the advice and consent of the Senate. The
4 Governor shall select one of the Directors to serve as
5 Chairperson during the term of his or her appointment.
6 Of the initial Directors so appointed, 3 shall be
7 appointed to serve for terms expiring 3 years from the
8 date of their appointment, and 2 shall be appointed to
9 serve for terms expiring 2 years from the date of their
10 appointment. Thereafter, each Director appointed by the
11 Governor shall be appointed to hold office for a term of
12 3 years and until his or her successor has been appointed
13 as provided in Section 8-12-7 of the Illinois Municipal
14 Code. Directors shall be eligible for reappointment.
15 Any vacancy which shall arise shall be filled by
16 appointment by the Governor, with the advice and consent
17 of the Senate, for the unexpired term and until a
18 successor Director has been appointed as provided in
19 Section 8-12-7 of the Illinois Municipal Code. A vacancy
20 shall occur upon resignation, death, conviction of a
21 felony, or removal from office of a Director. A Director
22 may be removed for incompetency, malfeasance, or neglect
23 of duty at the instance of the Governor. If the Senate
24 is not in session or is in recess when appointments
25 subject to its confirmation are made, the Governor shall
26 make temporary appointments which shall be subject to
27 subsequent Senate approval.
28 (b) This subsection (b) applies on and after January 1,
29 1993.
30 (1) Upon receipt of a petition for establishment of a
31 financial planning and supervision commission, the Governor
32 may direct the establishment of such a commission if the
33 Governor determines that a fiscal emergency exists.
34 (2) Prior to making such determination, the Governor
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1 shall give reasonable notice and opportunity for a hearing to
2 all creditors of the petitioning unit of local government.
3 The determination shall be entered not less than 60 days
4 after the filing of the petition. A determination of fiscal
5 emergency by the Governor shall be a final administrative
6 decision subject to the provisions of the Administrative
7 Review Law. The court on such review may grant exceptions to
8 the stay provisions of Section 7 of this Act as adequate
9 protection of creditors' interests or equity may require.
10 The commission shall convene within 30 days of the entry by
11 the Governor of his or her determination of the fiscal
12 emergency.
13 (3) A commission shall consist of 11 members:
14 (A) Eight members as follows: the Governor, the
15 State Comptroller, the Director of Revenue, the Director
16 of the Bureau of the Budget, the State Treasurer, the
17 Executive Director of the Illinois Development Finance
18 Authority, the Director of the Department of Commerce and
19 Community Affairs and the presiding officer of the
20 governing body of the unit of local government, or their
21 respective designees. A designee, when present, shall be
22 counted in determining whether a quorum is present at any
23 meeting of the commission and may vote and participate in
24 all proceedings and actions of the commission. The
25 designations shall be in writing, executed by the member
26 making the designation, and filed with the secretary of
27 the commission. The designations may be changed from
28 time to time in like manner, but due regard shall be
29 given to the need for continuity. The Governor shall
30 appoint a chairman of the commission from among the 8
31 members described in this subparagraph (A).
32 (B) Three members nominated and appointed as
33 follows: the governing body and chief governing officer
34 of the unit of local government shall submit in writing
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1 to the chairman of the commission the nomination of 5
2 persons agreed to by them and meeting the qualifications
3 set forth in this Act. Nominations shall accompany the
4 petition for establishment of the financial planning and
5 supervision commission. If the chairman is not satisfied
6 that at least 3 of the nominees are well qualified, he
7 shall notify the governing body of the unit of local
8 government to submit in writing, within 5 days,
9 additional nominees, not exceeding 3. The chairman shall
10 appoint 3 members from all the nominees so submitted or a
11 lesser number that he considers well qualified. Each of
12 the 3 appointed members shall serve for a term of one
13 year, subject to removal by the chairman for misfeasance,
14 nonfeasance or malfeasance in office. Upon the
15 expiration of the term of an appointed member, or in the
16 event of the death, resignation, incapacity or removal,
17 or other ineligibility to serve of an appointed member,
18 the chairman shall appoint a successor pursuant to the
19 process of original appointment.
20 Each of the 3 appointed members shall be an
21 individual:
22 (i) Who has knowledge and experience in
23 financial matters, financial management, or business
24 organization or operations, including experience in
25 the private sector in management of business or
26 financial enterprise, or in management consulting,
27 public accounting, or other professional activity;
28 and
29 (ii) Who has not at any time during the 2 years
30 preceding the date of appointment held any elected
31 public office.
32 The governing body and chief governing officer of
33 the unit of local government, to the extent possible,
34 shall nominate members whose residency, office, or
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1 principal place of professional or business activity is
2 situated within the unit of local government.
3 An appointed member of the commission shall not
4 become a candidate for elected public office while
5 serving as a member of the commission.
6 (4) Immediately after his appointment of the initial 3
7 appointed members of the commission, the chairman shall call
8 the first meeting of the commission and shall cause written
9 notice of the time, date and place of the first meeting to be
10 given to each member of the commission at least 48 hours in
11 advance of the meeting.
12 (5) The commission members shall select one of their
13 number to serve as treasurer of the commission.
14 (Source: P.A. 86-1211; 87-853.)
15 (50 ILCS 320/10) (from Ch. 85, par. 7210)
16 Sec. 10. State aid.
17 (a) This subsection (a) applies through December 31,
18 1992.
19 (1) During the period of time that a unit of local
20 government is covered by this Act, the State shall not be
21 required to distribute to the unit of local government
22 any monies to which the unit of local government might
23 otherwise be entitled except in accordance with the
24 direction of the commission.
25 (2) Any State assistance in the form of a loan or
26 grant from appropriated funds shall be subject to the
27 expenditure control of the commission.
28 (3) The commission may request the Illinois
29 Development Finance Authority to issue bonds, notes, or
30 other evidences of indebtedness, the proceeds of which
31 are to be used to make loans to the unit of local
32 government for purposes of enabling that unit of local
33 government to restructure its current indebtedness and to
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1 provide and pay for its essential municipal services.
2 Such request may not precede the adoption of the
3 financial plan required by Section 8 of this Act and
4 shall be in accordance with the provisions of Section
5 7.88 of the Illinois Development Finance Authority Act.
6 (b) This subsection (b) applies on and after January 1,
7 1993. During the period of time that a unit of local
8 government is covered by this Act, the State shall not be
9 required to distribute to the unit of local government any
10 monies to which the unit of local government might otherwise
11 be entitled.
12 (Source: P.A. 86-1211; 87-853.)
13 Section 890-13. The Counties Code is amended by changing
14 Section 5-1050 as follows:
15 (55 ILCS 5/5-1050) (from Ch. 34, par. 5-1050)
16 Sec. 5-1050. Acquisition and improvement of land for
17 industrial or commercial purposes. For the public purposes
18 set forth in the Illinois Development Finance Authority Act,
19 a county board may (1) acquire, singly or jointly with other
20 counties or municipalities, by gift, purchase or otherwise,
21 but not by condemnation, land, or any interest in land,
22 whether located within or without its county limits, and,
23 singly or jointly, to improve or to arrange for the
24 improvement of such land for industrial or commercial
25 purposes and to donate and convey such land, or interest in
26 land, so acquired and so improved to the Illinois Development
27 Finance Authority; and (2) donate county funds to such
28 Authority.
29 (Source: P.A. 86-962.)
30 Section 890-14. The Township Code is amended by changing
31 Section 85-10 as follows:
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1 (60 ILCS 1/85-10)
2 Sec. 85-10. Township corporate powers.
3 (a) Every township has the corporate capacity to
4 exercise the powers granted to it, or necessarily implied,
5 and no others. Every township has the powers specified in
6 this Section.
7 (b) A township may sue and be sued.
8 (c) A township may acquire (by purchase, gift, or
9 legacy) and hold property, both real and personal, for the
10 use of its inhabitants and may sell and convey that property.
11 A township may purchase any real estate or personal property
12 for public purposes under contracts providing for payment in
13 installments over a period of time of not more than 20 years
14 in the case of real estate and not more than 10 years in the
15 case of personal property. A township may finance the
16 purchase of any real estate or personal property for public
17 purpose under finance contracts providing for payment in
18 installments over a period of time of not more than 20 years
19 in the case of real estate and not more than 10 years in the
20 case of personal property. A township may construct a
21 township hall under contracts providing for payment over a
22 period of time of not more than 5 years. The interest on the
23 unpaid balance shall not exceed that permitted in the Bond
24 Authorization Act.
25 (d) A township may make all contracts necessary in the
26 exercise of the township's powers.
27 (e) A township may expend or contract for the
28 expenditure of any federal funds made available to the
29 township by law for any purpose for which taxes imposed upon
30 township property or property within the township may be
31 expended.
32 (f) A township may acquire (singly or jointly with a
33 municipality or municipalities) land or any interest in land
34 located within its township limits. The township may acquire
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1 the land or interest by gift, purchase, or otherwise, but not
2 by condemnation. A township may (singly or jointly) improve
3 or arrange for the improvement of the land for industrial or
4 commercial purposes and may donate and convey the land or
5 interest in land so acquired and so improved to the Illinois
6 Development Finance Authority.
7 (g) (Blank)
8 (h) It is the policy of this State that all powers
9 granted either expressly or by necessary implication by this
10 Code, any other Illinois statute, or the Illinois
11 Constitution to townships may be exercised by those townships
12 notwithstanding effects on competition. It is the intention
13 of the General Assembly that the "State action exemption" to
14 the application of federal antitrust statutes be fully
15 available to townships to the extent their activities are
16 authorized by law as stated in this Code.
17 (i) A township may receive funds under the federal
18 Housing and Community Development Act of 1974 and may expend
19 or contract for the expenditure of those funds and other
20 township funds for the activities specified in Section 105 of
21 that Act. The powers granted under this subsection (i) are
22 in addition to powers otherwise possessed by a township and
23 shall not be construed as a limitation of those other powers.
24 (j) A township may establish reasonable fees for
25 recreation and instructional programs sponsored by the
26 township.
27 (Source: P.A. 88-62; incorporates 88-356 and 88-360; 88-670,
28 eff. 12-2-94; 89-331, eff. 8-17-95.)
29 Section 890-15. The Illinois Municipal Code is amended
30 by changing Sections 8-12-2, 8-12-3, 8-12-6, 8-12-19,
31 8-12-21, 8-12-22, 11-74.1-1, 11-113.1-1, 11-119-2, 11-129-3,
32 11-139-7, and 11-141-5 as follows:
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1 (65 ILCS 5/8-12-2) (from Ch. 24, par. 8-12-2)
2 Sec. 8-12-2. (a) Pursuant to the authority of the General
3 Assembly to provide for the public health, safety and
4 welfare, the General Assembly hereby finds and declares that
5 it is the public policy and a public purpose of the State to
6 offer assistance to a financially distressed city so that it
7 may provide for the health, safety and welfare of its
8 citizens, pay when due principal and interest on its debt
9 obligations, meet financial obligations to its employees,
10 vendors and suppliers, and provide for proper financial
11 accounting procedures, budgeting and taxing practices, as
12 well as strengthen the human and economic development of the
13 city.
14 (b) It is the purpose of this Division to provide a
15 secure financial basis for the continued operation of a
16 financially distressed city. The intention of the General
17 Assembly, in enacting this legislation is to establish sound,
18 efficient and generally accepted accounting, budgeting and
19 taxing procedures and practices within a financially
20 distressed city, to provide powers to a financial advisory
21 authority established for a financially distressed city, and
22 to impose restrictions upon a financially distressed city in
23 order to assist that city in assuring its financial integrity
24 while leaving municipal services policies to the city,
25 consistent with the requirements for satisfying the public
26 policy and purposes herein set forth.
27 (c) It also is the purpose of this Division to authorize
28 a city which has been certified and designated as a
29 financially distressed city under the procedure set forth in
30 Section 8-12-4, and which has by ordinance requested that a
31 financial advisory authority be appointed for the city and
32 that the city receive assistance as provided in this
33 Division, and which has filed certified copies of that
34 ordinance in the manner provided by Section 8-12-4, to enter
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1 into such agreements as are necessary to receive assistance
2 as provided in this Division and in applicable provisions of
3 the Illinois Development Finance Authority Act.
4 (Source: P.A. 86-1211.)
5 (65 ILCS 5/8-12-3) (from Ch. 24, par. 8-12-3)
6 Sec. 8-12-3. As used in this Division:
7 (1) "Authority" means the "(Name of Financially
8 Distressed City) Financial Advisory Authority".
9 (2) "Financially distressed city" means any municipality
10 which is a home rule unit and which (i) is certified by the
11 Department of Revenue as being in the highest 5% of all home
12 rule municipalities in terms of the aggregate of the rate per
13 cent of all taxes levied pursuant to statute or ordinance
14 upon all taxable property of the municipality and as being in
15 the lowest 5% of all home rule municipalities in terms of per
16 capita tax yield, and (ii) is designated by joint resolution
17 of the General Assembly as a financially distressed city.
18 (3) "Home rule municipality" means a municipality which
19 is a home rule unit as provided in Section 6 of Article VII
20 of the Illinois Constitution.
21 (4) "Budget" means an annual appropriation ordinance or
22 annual budget as described in Division 2 of Article 8, as
23 from time to time in effect in the financially distressed
24 city.
25 (5) "Chairperson" means the chairperson of the Authority
26 appointed pursuant to Section 8-12-7.
27 (6) "Financial Plan" means the financially distressed
28 city's financial plan as developed pursuant to Section
29 8-12-15, as from time to time in effect.
30 (7) "Fiscal year" means the fiscal year of the
31 financially distressed city.
32 (8) "Obligations" means bonds, notes or other evidence
33 of indebtedness issued by the Illinois Development Finance
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1 Authority in connection with the provision of financial aid
2 to a financially distressed city pursuant to this Division
3 and applicable provisions of the Illinois Development Finance
4 Authority Act.
5 (Source: P.A. 86-1211.)
6 (65 ILCS 5/8-12-6) (from Ch. 24, par. 8-12-6)
7 Sec. 8-12-6. Purposes and powers.
8 (a) The purposes of the Authority shall be to provide a
9 secure financial basis for and to furnish assistance to a
10 financially distressed city to which this Division is
11 applicable as provided in Section 8-12-4, and to request the
12 Illinois Development Finance Authority to issue its
13 Obligations on behalf of and thereby provide financial aid to
14 the city in accordance with applicable provisions of the
15 Illinois Development Finance Authority Act, so that the city
16 can provide basic municipal services within its
17 jurisdictional limits, while permitting the distressed city
18 to meet its obligations to its creditors and the holders of
19 its notes and bonds.
20 (b) Except as expressly limited by this Division, the
21 Authority shall have all powers necessary to meet its
22 responsibilities and to carry out its purposes and the
23 purposes of this Division, including, but not limited to, the
24 following powers:
25 (1) To provide for its organization and internal
26 management, and to make rules and regulations governing
27 the use of its property and facilities.
28 (2) To make and execute contracts, leases,
29 subleases and all other instruments or agreements
30 necessary or convenient for the exercise of the powers
31 and functions granted by this Division.
32 (3) To approve all loans, grants, or other
33 financial aid from any State agency.
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1 (4) To appoint officers, agents, and employees of
2 the Authority, define their duties and qualifications and
3 fix their compensation and employee benefits.
4 (5) To engage the services of consultants for
5 rendering professional and technical assistance and
6 advice on matters within the Authority's power.
7 (6) To pay the expenses of its operations.
8 (7) To determine, in its discretion but consistent
9 with the requirements of this Division, the terms and
10 conditions of any loans it may make to the financially
11 distressed city.
12 (c) Any loan repayments received by the Authority from
13 the distressed city may be deposited by the Authority into a
14 revolving fund under the control of the Authority. Money in
15 the revolving fund may be used by the Authority to support
16 activities leading to a restructuring of the distressed
17 city's debt and may be pledged by the Authority as security
18 for any new debt incurred by the distressed city with the
19 approval of the Authority.
20 (d) From any funds appropriated to the Authority for the
21 purpose of making a loan to a distressed city, the Authority
22 may expend not more than $250,000 for the expenses of its
23 operations in the fiscal year in which the appropriation is
24 made.
25 (Source: P.A. 88-664, eff. 9-16-94.)
26 (65 ILCS 5/8-12-19) (from Ch. 24, par. 8-12-19)
27 Sec. 8-12-19. The Authority shall appoint and shall have
28 the authority to remove a financial management officer. The
29 financial management officer shall have the responsibility
30 for advising on the preparation of the Budget and Financial
31 Plan of the financially distressed city and for monitoring
32 expenditures of the city. The financial management officer
33 shall be the authorized signatory for all expenditures made
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1 from the proceeds of any State loans provided for the benefit
2 of the city pursuant to this Division or any other law of
3 this State, and for all expenditures made from financial aid
4 provided for the benefit of the city from Obligations issued
5 by the Illinois Development Finance Authority for such
6 purposes in accordance with applicable provisions of the
7 Illinois Development Finance Authority Act. The financial
8 management officer shall be an employee of and shall report
9 to the Authority, may be granted authority by the Authority
10 to hire a specific number of employees to assist in meeting
11 responsibilities, and shall have access to all financial data
12 and records of the city which he or she deems necessary for
13 the proper and efficient exercise of such responsibilities.
14 Neither the Authority or the financial management officer
15 shall have any authority to hire, fire or appoint city
16 employees or to manage the day-to-day operations of the city.
17 (Source: P.A. 86-1211.)
18 (65 ILCS 5/8-12-21) (from Ch. 24, par. 8-12-21)
19 Sec. 8-12-21. The Authority in its sole discretion may
20 intercept any payments that the city from time to time is
21 entitled to receive from any funds then or thereafter held by
22 the State Treasurer to the credit of the city or otherwise in
23 the custody of the State Treasurer to the credit of the city,
24 whether in or outside of the State Treasury, upon the
25 occurrence of any of the following:
26 (1) The financially distressed city's initial
27 Financial Plan and revised Budget required to be
28 submitted to the Authority with respect to the remaining
29 portion of what is the city's current fiscal year at the
30 time this Division first becomes applicable to the city
31 as provided in Section 8-12-4 are not approved by the
32 Authority within 60 days of their submission, and the
33 Authority has theretofore given written warning notice to
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1 the corporate authorities of the city, on the 45th day
2 after such initial Financial Plan and revised Budget were
3 submitted, that the same have not yet been approved by
4 the Authority; or
5 (2) Any Financial Plan or Budget for any subsequent
6 fiscal year is not approved by the Authority by the
7 commencement of the fiscal year to which such Financial
8 Plan or Budget relates, and the Authority has theretofore
9 given written warning notice to the corporate authorities
10 of the city, on the 15th day prior to the commencement of
11 that fiscal year, that the Financial Plan or Budget for
12 such fiscal year has not yet been approved by the
13 Authority; or
14 (3) The financially distressed city materially
15 violates the provisions of this Division, and the
16 Authority -- at least 15 days prior to initiating any
17 action to intercept any payments pursuant to this Section
18 -- has given the corporate authorities of the city
19 written notice of the material violation and of the
20 Authority's intention to intercept payments pursuant to
21 this Section upon the expiration of that 15 day notice
22 period unless the city satisfies the Authority within
23 that 15 day period that the material violation cited by
24 the Authority has been corrected; provided that the
25 Authority shall not be required to give any notice to the
26 city or its corporate authorities prior to initiating
27 action to intercept payments pursuant to this Section if
28 such payments are to be intercepted because of the city's
29 failure to pay when due all amounts then due and owing
30 and required to be paid by the city on Obligations issued
31 by the Illinois Development Finance Authority in
32 connection with the provision of financial aid to the
33 city pursuant to this Division and applicable provisions
34 of the Illinois Development Finance Authority Act.
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1 The intercept shall be made pursuant to written notice
2 given by the Authority to the State Comptroller and State
3 Treasurer, setting forth the amount of the intercept, which
4 may be an aggregate amount not exceeding the sum of the full
5 amount of any outstanding State loans provided for the
6 benefit of the city pursuant to this Division or any other
7 law of this State, plus the full amount of all outstanding
8 Obligations issued by the Illinois Development Finance
9 Authority on the financially distressed city's behalf in
10 accordance with applicable provisions of the Illinois
11 Development Finance Authority Act. The State Comptroller and
12 State Treasurer shall pay to the Authority, from such funds
13 as from time to time are legally available therefor, the
14 aggregate amount of the intercept, unless the Authority
15 sooner notifies the State Comptroller and State Treasurer in
16 writing that no further payments that the city is entitled to
17 receive shall be intercepted under the provisions of this
18 Section.
19 (Source: P.A. 86-1211.)
20 (65 ILCS 5/8-12-22) (from Ch. 24, par. 8-12-22)
21 Sec. 8-12-22. (a) After the Authority has certified to
22 the Governor that the financially distressed city has
23 completed 10 successive years of balanced budgets:
24 (1) The powers and responsibilities granted or
25 imposed upon the Authority and the financially distressed
26 city under Section 8-12-13 and Sections 8-12-15 through
27 8-12-21 shall not be exercised, except as otherwise
28 provided under subsection (b) of this Section.
29 (2) The provisions of Section 8-12-14 shall
30 continue in full force and effect. The financially
31 distressed city shall file with the Authority and with
32 the Illinois Development Finance Authority, not later
33 than 15 days prior to the commencement of the first
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1 fiscal year with respect to which the powers and
2 responsibilities granted or imposed under Section 8-12-13
3 and Sections 8-12-15 through 8-12-21 are not to be
4 exercised, and not later than 15 days prior to the
5 commencement of each fiscal year thereafter, a balanced
6 Budget as adopted by the financially distressed city for
7 such fiscal year. In addition, for each fiscal year with
8 respect to which the powers and responsibilities granted
9 or imposed under Section 8-12-13 and Sections 8-12-15
10 through 8-12-21 are not to be exercised, the financially
11 distressed city shall file with the Authority and with
12 the Illinois Development Finance Authority a certified
13 copy of the same audit report and supplemental report
14 which are required to be made and filed for such fiscal
15 year by the city under the Illinois Municipal Auditing
16 Law, the filing with the Authority and the Illinois
17 Development Finance Authority to be made within the time
18 provided for the filing of such audit report and
19 supplemental report with the State Comptroller under
20 Section 8-8-4.
21 (b) The Authority and the Illinois Development Finance
22 Authority shall review each Budget, audit report and
23 supplemental report filed with them as provided in paragraph
24 (2) of subsection (a). In the event the financially
25 distressed city fails to file any Budget or certified copy of
26 an audit report or supplemental report as provided in
27 paragraph (2) of subsection (a), or in the event the Illinois
28 Development Finance Authority, after consultation with the
29 Authority, determines that the Budget adopted by the
30 financially distressed city and filed as provided in
31 paragraph (2) of subsection (a) is not balanced as required
32 under Section 8-12-14, the Illinois Development Finance
33 Authority shall certify such failure to file, or failure to
34 adopt a Budget which is balanced as required, to the
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1 Governor; and concurrent with that certification, the
2 Authority established under Section 8-12-5 and the
3 financially distressed city shall resume the exercise and
4 performance of their respective powers and responsibilities
5 pursuant to each Section of this Division.
6 (c) When the Illinois Development Finance Authority
7 determines that all of its Obligations have been fully paid
8 and discharged or otherwise provided for, it shall certify
9 that fact to the Governor; and the Authority established
10 under Section 8-12-5 shall be abolished 30 days after the
11 date of that certification. Upon abolition of the Authority
12 as provided in this subsection, this Division shall have no
13 further force or effect upon the financially distressed city.
14 (Source: P.A. 86-1211.)
15 (65 ILCS 5/11-74.1-1) (from Ch. 24, par. 11-74.1-1)
16 Sec. 11-74.1-1. For the public purposes set forth in the
17 Illinois Development Finance Authority Act, the corporate
18 authorities of each municipality may (1) acquire, singly or
19 jointly with other municipalities or counties, by gift,
20 purchase or otherwise, but not by condemnation, except in
21 furtherance of Sections 7.40 through 7.48 of the Illinois
22 Development Finance Authority Act, land, or any interest in
23 land, whether located within or without its corporate limits,
24 and, singly or jointly, may improve or arrange for the
25 improvement of such land for industrial or commercial
26 purposes and may donate and convey such land, or interest in
27 land, so acquired and so improved, to the Illinois
28 Development Finance Authority; and (2) donate corporate funds
29 to such Authority.
30 (Source: P.A. 83-669.)
31 (65 ILCS 5/11-113.1-1) (from Ch. 24, par. 11-113.1-1)
32 Sec. 11-113.1-1. A non-home rule municipality located at
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1 least partly in a county which is preparing a stormwater
2 management plan in accordance with Section 5-1062 of the
3 Counties Code may levy a tax upon all taxable property
4 within its corporate limits, at a rate not to exceed 0.06% if
5 the municipality owns and operates a wastewater treatment
6 plant, and at a rate not to exceed 0.03% if it does not, of
7 the value, as equalized or assessed by the Department of
8 Revenue, of all taxable property within the municipality, for
9 the purposes of implementing the stormwater management plan,
10 improving storm sewer and combined sewer facilities,
11 protecting sanitary sewage treatment works from the 100-year
12 frequency flood, and acquiring lands, buildings and
13 properties in the 100-year floodplain, paying the principal
14 of and interest on any bonds issued pursuant to this Section
15 for any of the foregoing purposes, and paying the principal
16 of, premium, if any, and interest on, and any fees relating
17 to, any loan made to such municipality by the Illinois
18 Development Finance Authority, pursuant to subsection (t) of
19 Section 7 of the Illinois Development Finance Authority Act
20 for any of the foregoing purposes, or any bond, note or other
21 evidence of indebtedness of such municipality issued in
22 connection with any such loan. Such tax shall be in addition
23 to all other taxes authorized by law to be levied and
24 collected in such municipality and shall be in addition to
25 the maximum tax rate authorized by law for general municipal
26 purposes. The limitations on tax rate provided in this
27 Section may be increased or decreased by referendum in
28 accordance with the provisions of Sections 18-120, 18-125,
29 and 18-130 of the Property Tax Code.
30 However, unless the municipality is located at least
31 partly in a township declared after July 1, 1986 by
32 presidential declaration to be a disaster area as a result of
33 flooding, the tax authorized by this Section shall not be
34 levied until the question of its adoption, either for a
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1 specified period or indefinitely, has been submitted to the
2 electors thereof and approved by a majority of those voting
3 on the question. This question may be submitted at any
4 election held in the municipality after the adoption of a
5 resolution by the governing body of the municipality
6 providing for the submission of the question to the electors
7 of the municipality. The governing body of the municipality
8 shall certify the resolution and proposition to the proper
9 election officials, who shall submit the proposition at an
10 election in accordance with the general election law. If a
11 majority of the votes cast on the question is in favor of the
12 levy of such tax, it may thereafter be levied in such
13 municipality for the specified period or indefinitely, as
14 provided in the proposition. The question shall be put in
15 substantially the following form:
16 -------------------------------------------------------------
17 Shall an annual tax be levied
18 for stormwater management purposes YES
19 (for a period of not more than
20 ...... years) at a rate not exceeding ------------------
21 .....% of the equalized assessed
22 value of the taxable property of NO
23 (municipality)?
24 -------------------------------------------------------------
25 Any municipality in a county which has established a
26 stormwater management planning committee in accordance with
27 Section 5-1062 of the Counties Code is hereby authorized to
28 borrow money and to issue its bonds for the purposes of
29 implementing the stormwater management plan, improving storm
30 sewer and combined sewer facilities, protecting sanitary
31 sewage treatment works from the 100-year frequency flood, and
32 acquiring lands, buildings and properties in the 100-year
33 floodplain.
34 Any municipality in a county which has established a
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1 stormwater management planning committee in accordance with
2 Section 5-1062 of the Counties Code is hereby further
3 authorized to borrow money from the Illinois Development
4 Finance Authority for the purpose of financing the protection
5 of storm sewer outfalls, the construction of adequate storm
6 sewer outfalls and the provision for flood protection of
7 sanitary sewage treatment plants, pursuant to subsection (t)
8 of Section 7 of the Illinois Development Finance Authority
9 Act, and is hereby authorized to enter into loan agreements
10 and other documents with the Illinois Development Finance
11 Authority and to issue its bonds, notes or other evidences of
12 indebtedness to evidence its obligation to repay such loan
13 to the Illinois Development Finance Authority. Without the
14 submission of the question to the electors, notwithstanding
15 any other provision of law to the contrary, such municipality
16 is hereby authorized to execute such loan agreements and
17 other documents and to issue such bonds, notes or other
18 evidences of indebtedness, which loan agreements, documents,
19 bonds, notes or other evidences of indebtedness may bear such
20 date or dates, may bear interest at such rate or rates,
21 payable at such time or times, may mature at any time or
22 times not later than 40 years from the date of issuance, may
23 be payable at such place or places, may be payable from any
24 funds of such municipality on hand and lawfully available
25 therefor, including without limitation the taxes levied
26 pursuant to this Section or from any other taxes or revenues
27 of such municipality pledged to their payment, may be
28 negotiated at such price or prices, may be executed in such
29 manner, may be subject to redemption prior to maturity, may
30 be in such form, may be secured, and may be subject to such
31 other terms and conditions, all as may be provided in a
32 resolution or ordinance authorizing the execution of any such
33 loan agreement or other document or the issuance of such
34 bonds, notes or other evidences of indebtedness.
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1 (Source: P.A. 88-670, eff. 12-2-94.)
2 (65 ILCS 5/11-119-2) (from Ch. 24, par. 11-119-2)
3 Sec. 11-119-2. The corporate authorities of any city or
4 village availing itself of the provisions of this Division
5 119 shall adopt an ordinance describing in a general way the
6 improvements or extensions to be made. It shall not be
7 necessary that the ordinance refer to plans and
8 specifications nor that there be on file for public
9 inspection prior to the adoption of such ordinance detailed
10 plans and specifications of the project. The ordinance shall
11 set out the estimated cost of the improvements or extensions
12 and shall fix the amount of bonds proposed to be issued, the
13 maturity, interest rate, and all details in respect thereof.
14 Such ordinance, at the option of the municipality, may
15 contain provisions which shall be part of the contract with
16 the holders of the bonds as to: (1) The registration of the
17 bonds as to principal only, or as to both principal and
18 interest, and the interchangeability and exchangeability of
19 the bonds. (2) The redemption of the bonds prior to maturity
20 and the price, either at par or at a premium, at which they
21 are redeemable. (3) The setting aside of reserves or sinking
22 funds, and the regulation or disposition thereof. (4)
23 Limitations upon the issuance of additional bonds payable
24 from the revenues of the system, or upon the rights of the
25 holders of these additional bonds. (5) Other agreements with
26 the holders of the bonds, or covenants or restrictions
27 necessary or desirable to safeguard the interests of these
28 holders. After the ordinance has been adopted and approved it
29 shall be published once in a newspaper published and having a
30 general circulation in the municipality, or if there is no
31 such newspaper, copies of the ordinance shall be posted in at
32 least 4 public places within the municipality. The ordinance
33 shall be in effect after the expiration of 10 days from the
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1 date of this publication.
2 Bonds issued under this Division 119 shall be payable
3 solely from the revenue derived from the electric light plant
4 and system, or the gas plant and system, as the case may be,
5 and these bonds shall not in any event constitute an
6 indebtedness of the municipality within the meaning of any
7 constitutional or statutory limitation; provided, that bonds
8 issued under this Division 119 may also be payable from funds
9 pledged by the municipality issuing such bonds pursuant to
10 Section 7.59 of the Illinois Development Finance Authority
11 Act, and, notwithstanding such pledge of such funds, shall
12 not in any event constitute an indebtedness of the
13 municipality within the meaning of any constitutional or
14 statutory limitation. It shall be plainly stated on the face
15 of each bond that it has been issued under the provisions of
16 this Division 119 and that it does not constitute an
17 indebtedness of the municipality within any constitutional or
18 statutory limitation.
19 (Source: P.A. 85-659.)
20 (65 ILCS 5/11-129-3) (from Ch. 24, par. 11-129-3)
21 Sec. 11-129-3. The corporate authorities of any
22 municipality availing itself of the provisions of this
23 Division 129 shall adopt an ordinance describing in a general
24 way the contemplated project. If it is intended to purchase
25 an existing waterworks or water supply system, the ordinance
26 shall describe in a general way the system to be purchased.
27 If it is intended to build a waterworks or water supply
28 system or to improve or extend a waterworks or water supply
29 system owned and operated by the municipality, the ordinance
30 shall describe in a general way the waterworks or water
31 supply system to be constructed or the improvements or
32 extensions to be made. It shall not be necessary that the
33 ordinance refer to plans and specifications nor that there be
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1 on file for public inspection prior to the adoption of such
2 ordinance detailed plans and specifications of the project.
3 The ordinance shall set out the estimated cost of the
4 project, determine its period of usefulness, and fix the
5 amount and maturities of water revenue bonds proposed to be
6 issued, the interest rate, and all details in respect
7 thereof. The ordinance may contain such covenants and
8 restrictions upon the issuance of additional revenue bonds
9 thereafter as may be deemed necessary or advisable for the
10 assurance of payment of the bonds thereby authorized and as
11 may be thereafter issued.
12 Revenue bonds issued under this Division 129 shall be
13 payable solely from the revenue derived from the operation of
14 the waterworks or water supply system on account of which the
15 bonds are issued; provided, that bonds issued under this
16 Division 129 may also be payable from funds pledged by the
17 municipality issuing such bonds pursuant to Section 7.59 of
18 the Illinois Development Finance Authority Act.
19 Notwithstanding any such pledge or any other matter, these
20 bonds shall not in any event constitute an indebtedness of
21 the municipality within the meaning of any constitutional or
22 statutory limitation and it shall be so stated on the face of
23 each bond.
24 (Source: P.A. 85-659.)
25 (65 ILCS 5/11-139-7) (from Ch. 24, par. 11-139-7)
26 Sec. 11-139-7. Revenue bonds issued under this Division
27 139 shall be payable solely from the revenue derived from the
28 operation of the combined waterworks and sewerage system on
29 account of which the bonds are issued; provided, that bonds
30 issued under this Division 139 may also be payable from funds
31 pledged by the municipality issuing such bonds pursuant to
32 Section 7.59 of the Illinois Development Finance Authority
33 Act. Notwithstanding any such pledge or any other matter,
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1 these bonds shall not in any event constitute an indebtedness
2 of the municipality within the meaning of any constitutional
3 or statutory limitation and it shall be so stated on the face
4 of each bond.
5 (Source: P.A. 85-659.)
6 (65 ILCS 5/11-141-5) (from Ch. 24, par. 11-141-5)
7 Sec. 11-141-5. All bonds issued under this Division 141
8 are payable solely from the revenue derived from the
9 operation of the sewerage system; provided, that bonds issued
10 under this Division 141 may also be payable from funds
11 pledged by the municipality issuing such bonds pursuant to
12 Section 7.59 of the Illinois Development Finance Authority
13 Act. Notwithstanding any such pledge or any other matter,
14 these bonds shall not, in any event, constitute an
15 indebtedness of the municipality within the meaning of any
16 constitutional or statutory limitation. It shall be plainly
17 stated on the face of each bond that the bond has been issued
18 under this Division 141 and that it does not constitute an
19 indebtedness of the municipality within any constitutional or
20 statutory limitation.
21 (Source: P.A. 85-659.)
22 Section 890-16. The Joliet Arsenal Development Authority
23 Act is amended by changing Section 40 as follows:
24 (70 ILCS 508/40)
25 Sec. 40. Acquisition.
26 (a) The Authority may, but need not, acquire title to
27 any project with respect to which it exercises its authority.
28 (b) The Authority shall have power to acquire by
29 purchase, lease, gift, or otherwise any property or rights
30 therein from any person, the State of Illinois, any municipal
31 corporation, any local unit of government, the government of
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1 the United States, any agency or instrumentality of the
2 United States, any body politic, or any county useful for its
3 purposes, whether improved for the purposes of any
4 prospective project or unimproved. The Authority may also
5 accept any donation of funds for its purposes from any of
6 those sources.
7 (c) The Authority shall have power to develop,
8 construct, and improve, either under its own direction or
9 through collaboration with any approved applicant, or to
10 acquire through purchase or otherwise any project, using for
11 that purpose the proceeds derived from its sale of revenue
12 bonds, notes, or other evidences of indebtedness or
13 governmental loans or grants, and to hold title in the name
14 of the Authority to those projects.
15 (d) The Authority shall have the power to enter into
16 intergovernmental agreements with the State of Illinois, the
17 county of Will, the Illinois Development Finance Authority,
18 the Illinois Education Facilities Authority, the Metropolitan
19 Pier and Exposition Authority, the United States government,
20 any agency or instrumentality of the United States, any unit
21 of local government located within the territory of the
22 Authority, or any other unit of government to the extent
23 allowed by Article VII, Section 10 of the Illinois
24 Constitution and the Intergovernmental Cooperation Act.
25 (e) The Authority shall have the power to share
26 employees with other units of government, including agencies
27 of the United States, agencies of the State of Illinois, and
28 agencies or personnel of any unit of local government.
29 (f) Subject to subsection (i) of Section 35 of this Act,
30 the Authority shall have the power to exercise powers and
31 issue revenue bonds as if it were a municipality so
32 authorized in Divisions 12.1, 74, 74.1, 74.3, and 74.5 of
33 Article 11 of the Illinois Municipal Code.
34 (Source: P.A. 89-333, eff. 8-17-95.)
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1 Section 890-17. The Quad Cities Regional Economic
2 Development Authority Act, approved September 22, 1987, is
3 amended by changing Section 14 as follows:
4 (70 ILCS 510/14) (from Ch. 85, par. 6214)
5 Sec. 14. Additional powers and duties. (a) The
6 Authority may, but need not, acquire title to any project
7 with respect to which it exercises its authority.
8 (b) The Authority shall have the power to enter into
9 intergovernmental agreements with the State of Illinois, the
10 counties of Rock Island, Henry or Mercer, the State of Iowa
11 or any authority established by the State of Iowa, the
12 Illinois Development Finance Authority, the Illinois Housing
13 Development Authority, the Illinois Education Facilities
14 Authority, the United States government and any agency or
15 instrumentality of the United States, any unit of local
16 government located within the territory of the Authority or
17 any other unit of government to the extent allowed by Article
18 VII, Section 10 of the Illinois Constitution and the
19 Intergovernmental Cooperation Act.
20 (c) The Authority shall have the power to share
21 employees with other units of government, including agencies
22 of the United States, agencies of the State of Illinois and
23 agencies or personnel of any unit of local government.
24 (d) The Authority shall have the power to exercise
25 powers and issue bonds as if it were a municipality so
26 authorized in Divisions 12.1, 74, 74.1, 74.3 and 74.5 of
27 Article 11 of the Illinois Municipal Code.
28 (Source: P.A. 85-713.)
29 Section 890-18. The Quad Cities Regional Economic
30 Development Authority Act, certified December 30, 1987, is
31 amended by changing Section 13 as follows:
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1 (70 ILCS 515/13) (from Ch. 85, par. 6513)
2 Sec. 13. Additional powers and duties. (a) The
3 Authority may, but need not, acquire title to any project
4 with respect to which it exercises its authority.
5 (b) The Authority shall have the power to enter into
6 intergovernmental agreements with the State of Illinois, the
7 counties of Rock Island, Henry or Mercer, the State of Iowa
8 or any authority established by the State of Iowa, the
9 Illinois Development Finance Authority, the Illinois Housing
10 Development Authority, the Illinois Education Facilities
11 Authority, the United States government and any agency or
12 instrumentality of the United States, any unit of local
13 government located within the territory of the Authority or
14 any other unit of government to the extent allowed by Article
15 VII, Section 10 of the Illinois Constitution and the
16 Intergovernmental Cooperation Act.
17 (c) The Authority shall have the power to share
18 employees with other units of government, including agencies
19 of the United States, agencies of the State of Illinois and
20 agencies or personnel of any unit of local government.
21 (d) The Authority shall have the power to exercise
22 powers and issue bonds as if it were a municipality so
23 authorized in Divisions 12.1, 74, 74.1, 74.3 and 74.5 of
24 Article 11 of the Illinois Municipal Code.
25 (Source: P.A. 85-988.)
26 Section 890-19. The Southwestern Illinois Development
27 Authority Act is amended by changing Section 8 as follows:
28 (70 ILCS 520/8) (from Ch. 85, par. 6158)
29 Sec. 8. (a) The Authority may, but need not, acquire
30 title to any project with respect to which it exercises its
31 authority.
32 (b) The Authority shall have power to acquire by
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1 purchase, lease, gift or otherwise any property or rights
2 therein from any person or persons, the State of Illinois,
3 any municipal corporation, any local unit of government, the
4 government of the United States and any agency or
5 instrumentality of the United States, any body politic or any
6 county useful for its purposes, whether improved for the
7 purposes of any prospective project or unimproved. The
8 Authority may also accept any donation of funds for its
9 purposes from any such source. The Authority may acquire any
10 real property, or rights therein, upon condemnation. The
11 acquisition by eminent domain of such real property or any
12 interest therein by the Authority shall be in the manner
13 provided by the "Code of Civil Procedure", as now or
14 hereafter amended, including Section 7-103 thereof.
15 The Authority shall not exercise any quick-take eminent
16 domain powers granted by State law within the corporate
17 limits of a municipality unless the governing authority of
18 the municipality authorizes the Authority to do so. The
19 Authority shall not exercise any quick-take eminent domain
20 powers granted by State law within the unincorporated areas
21 of a county unless the county board authorizes the Authority
22 to do so.
23 (c) The Authority shall have power to develop, construct
24 and improve, either under its own direction or through
25 collaboration with any approved applicant, or to acquire
26 through purchase or otherwise any project, using for such
27 purpose the proceeds derived from its sale of revenue bonds,
28 notes or other evidences of indebtedness or governmental
29 loans or grants and to hold title in the name of the
30 Authority to such projects.
31 (d) The Authority shall have the power to enter into
32 intergovernmental agreements with the State of Illinois, the
33 counties of Madison or St. Clair, the Southwest Regional Port
34 District, the Illinois Development Finance Authority, the
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1 Illinois Housing Development Authority, the Illinois
2 Education Facilities Authority, the Metropolitan Pier and
3 Exposition Authority, the United States government and any
4 agency or instrumentality of the United States, the city of
5 East St. Louis, any unit of local government located within
6 the territory of the Authority or any other unit of
7 government to the extent allowed by Article VII, Section 10
8 of the Illinois Constitution and the Intergovernmental
9 Cooperation Act.
10 (e) The Authority shall have the power to share
11 employees with other units of government, including agencies
12 of the United States, agencies of the State of Illinois and
13 agencies or personnel of any unit of local government.
14 (f) The Authority shall have the power to exercise
15 powers and issue bonds as if it were a municipality so
16 authorized in Divisions 12.1, 74, 74.1, 74.3 and 74.5 of
17 Article 11 of the Illinois Municipal Code.
18 (Source: P.A. 89-343, eff. 8-17-95.)
19 Section 890-20. The Tri-County River Valley Development
20 Authority Law is amended by changing Section 2008 as follows:
21 (70 ILCS 525/2008) (from Ch. 85, par. 7508)
22 Sec. 2008. Acquisition.
23 (a) The Authority may, but need not, acquire title to any
24 project with respect to which it exercises its authority.
25 (b) The Authority shall have power to acquire by
26 purchase, lease, gift or otherwise any property or rights
27 therein from any person or persons, the State of Illinois,
28 any municipal corporation, any local unit of government, the
29 government of the United States and any agency or
30 instrumentality of the United States, any body politic or any
31 county useful for its purposes, whether improved for the
32 purposes of any prospective project or unimproved. The
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1 Authority may also accept any donation of funds for its
2 purposes from any such source.
3 (c) The Authority shall have power to develop, construct
4 and improve, either under its own direction or through
5 collaboration with any approved applicant, or to acquire
6 through purchase or otherwise any project, using for such
7 purpose the proceeds derived from its sale of revenue bonds,
8 notes or other evidences of indebtedness or governmental
9 loans or grants and to hold title in the name of the
10 Authority to such projects.
11 (d) The Authority shall have the power to enter into
12 intergovernmental agreements with the State of Illinois, the
13 counties of Peoria, Tazewell or Woodford, the Illinois
14 Development Finance Authority, the Illinois Housing
15 Development Authority, the Illinois Education Facilities
16 Authority, the Metropolitan Pier and Exposition Authority,
17 the United States government and any agency or
18 instrumentality of the United States, any unit of local
19 government located within the territory of the Authority or
20 any other unit of government to the extent allowed by Article
21 VII, Section 10 of the Illinois Constitution and the
22 Intergovernmental Cooperation Act.
23 (e) The Authority shall have the power to share
24 employees with other units of government, including agencies
25 of the United States, agencies of the State of Illinois and
26 agencies or personnel of any unit of local government.
27 (f) The Authority shall have the power to exercise
28 powers and issue bonds as if it were a municipality so
29 authorized in Divisions 12.1, 74, 74.1, 74.3 and 74.5 of
30 Article 11 of the Illinois Municipal Code.
31 (Source: P.A. 86-1489.)
32 Section 890-21. The Upper Illinois River Valley
33 Development Authority Act is amended by changing Section 8 as
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1 follows:
2 (70 ILCS 530/8) (from Ch. 85, par. 7158)
3 Sec. 8. Acquisition.
4 (a) The Authority may, but need not, acquire title to
5 any project with respect to which it exercises its authority.
6 (b) The Authority shall have power to acquire by
7 purchase, lease, gift or otherwise any property or rights
8 therein from any person or persons, the State of Illinois,
9 any municipal corporation, any local unit of government, the
10 government of the United States and any agency or
11 instrumentality of the United States, any body politic or any
12 county useful for its purposes, whether improved for the
13 purposes of any prospective project or unimproved. The
14 Authority may also accept any donation of funds for its
15 purposes from any such source.
16 (c) The Authority shall have power to develop, construct
17 and improve, either under its own direction or through
18 collaboration with any approved applicant, or to acquire
19 through purchase or otherwise any project, using for such
20 purpose the proceeds derived from its sale of revenue bonds,
21 notes or other evidences of indebtedness or governmental
22 loans or grants and to hold title in the name of the
23 Authority to such projects.
24 (d) The Authority shall have the power to enter into
25 intergovernmental agreements with the State of Illinois, the
26 counties of Grundy, LaSalle, Bureau, Putnam or Marshall, the
27 Illinois Development Finance Authority, the Illinois Housing
28 Development Authority, the Illinois Education Facilities
29 Authority, the Metropolitan Pier and Exposition Authority,
30 the United States government and any agency or
31 instrumentality of the United States, any unit of local
32 government located within the territory of the Authority or
33 any other unit of government to the extent allowed by Article
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1 VII, Section 10 of the Illinois Constitution and the
2 Intergovernmental Cooperation Act.
3 (e) The Authority shall have the power to share
4 employees with other units of government, including agencies
5 of the United States, agencies of the State of Illinois and
6 agencies or personnel of any unit of local government.
7 (f) The Authority shall have the power to exercise
8 powers and issue bonds as if it were a municipality so
9 authorized in Divisions 12.1, 74, 74.1, 74.3 and 74.5 of
10 Article 11 of the Illinois Municipal Code.
11 (Source: P.A. 86-1024; 87-895.)
12 Section 890-22. The Will-Kankakee Regional Development
13 Authority Law is amended by changing Section 8 as follows:
14 (70 ILCS 535/8) (from Ch. 85, par. 7458)
15 Sec. 8. Acquisition.
16 (a) The Authority may, but need not, acquire title to
17 any project with respect to which it exercises its authority.
18 (b) The Authority shall have power to acquire by
19 purchase, lease, gift or otherwise any property or rights
20 therein from any person or persons, the State of Illinois,
21 any municipal corporation, any local unit of government, the
22 government of the United States and any agency or
23 instrumentality of the United States, any body politic or any
24 county useful for its purposes, whether improved for the
25 purposes of any prospective project or unimproved. The
26 Authority may also accept any donation of funds for its
27 purposes from any such source.
28 (c) The Authority shall have power to develop, construct
29 and improve, either under its own direction or through
30 collaboration with any approved applicant, or to acquire
31 through purchase or otherwise any project, using for such
32 purpose the proceeds derived from its sale of revenue bonds,
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1 notes or other evidences of indebtedness or governmental
2 loans or grants and to hold title in the name of the
3 Authority to such projects.
4 (d) The Authority shall have the power to enter into
5 intergovernmental agreements with the State of Illinois, the
6 counties of Will and Kankakee, the Illinois Development
7 Finance Authority, the Illinois Education Facilities
8 Authority, the Metropolitan Pier and Exposition Authority,
9 the United States government and any agency or
10 instrumentality of the United States, any unit of local
11 government located within the territory of the Authority or
12 any other unit of government to the extent allowed by Article
13 VII, Section 10 of the Illinois Constitution and the
14 Intergovernmental Cooperation Act.
15 (e) The Authority shall have the power to share
16 employees with other units of government, including agencies
17 of the United States, agencies of the State of Illinois and
18 agencies or personnel of any unit of local government.
19 (f) The Authority shall have the power to exercise
20 powers and issue bonds as if it were a municipality so
21 authorized in Divisions 12.1, 74, 74.1, 74.3 and 74.5 of
22 Article 11 of the Illinois Municipal Code.
23 (Source: P.A. 86-1481.)
24 Section 890-23. The Sanitary District Act of 1907 is
25 amended by changing Section 17.1 as follows:
26 (70 ILCS 2205/17.1) (from Ch. 42, par. 263.1)
27 Sec. 17.1. The board of trustees of a sanitary district
28 that owns and operates a wastewater treatment plant in a
29 county which has established a stormwater management planning
30 committee in accordance with Section 5-1062 of the Counties
31 Code may levy a tax upon all taxable property within its
32 district at a rate not to exceed 0.03% of the value of such
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1 property, as equalized or assessed by the Department of
2 Revenue, for the purposes of protecting pumping stations,
3 wastewater treatment plants and combined sewer outfalls from
4 the 100-year flood, paying the principal of and interest on
5 any bonds issued pursuant to this Section for any of the
6 foregoing purposes, and paying the principal of, premium, if
7 any, and interest on, and any fees relating to, any loan made
8 to such sanitary district by the Illinois Development Finance
9 Authority, pursuant to subsection (t) of Section 7 of the
10 Illinois Development Finance Authority Act, for any of the
11 foregoing purposes, or any bond, note or other evidence of
12 indebtedness of such municipality issued in connection with
13 any such loan. The 0.03% limitation provided in this Section
14 may be increased or decreased by referendum in accordance
15 with the provisions of Sections 18-120, 18-125, and 18-130 of
16 the Property Tax Code.
17 The tax authorized by this Section may be levied without
18 referendum by any sanitary district that is located at least
19 partly in a township declared after July 1, 1986 by
20 presidential declaration to be a disaster area as a result of
21 flooding. However, the tax authorized by this Section shall
22 not be levied by any sanitary district not so located unless
23 the question of its adoption, either for a specified period
24 or indefinitely, is submitted to the electors thereof and
25 approved by a majority of those voting on the question. This
26 question may be submitted at any election held in the
27 sanitary district after the adoption of a resolution by the
28 board of trustees of the sanitary district providing for the
29 submission of the question to the electors of the sanitary
30 district. The board of trustees shall certify the resolution
31 and proposition to the proper election officials, who shall
32 submit the proposition at an election in accordance with the
33 general election law. If a majority of the votes cast on the
34 question is in favor of the levy of such tax, it may
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1 thereafter be levied in such sanitary district for the
2 specified period or indefinitely, as provided in the
3 proposition. The question shall be put in substantially the
4 following form:
5 -------------------------------------------------------------
6 Shall an annual tax be levied
7 for stormwater management purposes YES
8 (for a period of not more than
9 ...... years) at a rate not exceeding ------------------
10 0.03% of the equalized assessed
11 value of the taxable property of NO
12 the ........ Sanitary District?
13 -------------------------------------------------------------
14 Any sanitary district in a county that has established a
15 stormwater management planning committee in accordance with
16 Section 5-1062 of the Counties Code is hereby authorized to
17 borrow money and to issue its bonds for the purposes of
18 protecting pumping stations, wastewater treatment plants and
19 combined sewer outfalls from the 100-year flood.
20 Any sanitary district in a county that has established a
21 stormwater management planning committee in accordance with
22 Section 5-1062 of the Counties Code is hereby further
23 authorized to borrow money from the Illinois Development
24 Finance Authority for the purpose of financing the provision
25 of flood protection for sanitary sewage treatment plants,
26 pursuant to subsection (t) of Section 7 of the Illinois
27 Development Finance Authority Act, and is hereby authorized
28 to enter into loan agreements and other documents with the
29 Illinois Development Finance Authority and to issue its
30 bonds, notes or other evidences of indebtedness to evidence
31 its obligation to repay such loan to the Illinois Development
32 Finance Authority. Without the submission of the question to
33 the electors, notwithstanding any other provision of law to
34 the contrary, such sanitary district is hereby authorized to
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1 execute such loan agreements and other documents and to issue
2 such bonds, notes or other evidences of indebtedness, which
3 loan agreements, documents, bonds, notes or other evidences
4 of indebtedness may bear such date or dates, may bear
5 interest at such rate or rates, payable at such time or
6 times, may mature at any time or times not later than 40
7 years from the date of issuance, may be payable at such place
8 or places, may be payable from any funds of such sanitary
9 district on hand and lawfully available therefor, including
10 without limitation the taxes levied pursuant to this Section
11 or from any other taxes or revenues of such sanitary district
12 pledged to their payment, may be negotiated at such price or
13 prices, may be executed in such manner, may be subject to
14 redemption prior to maturity, may be in such form, may be
15 secured, and may be subject to such other terms and
16 conditions, all as may be provided in a resolution or
17 ordinance authorizing the execution of any such loan
18 agreement or other document or the issuance of such bonds,
19 notes or other evidences of indebtedness.
20 (Source: P.A. 88-670, eff. 12-2-94.)
21 Section 890-24. The Family Practice Residency Act is
22 amended by changing Section 10 as follows:
23 (110 ILCS 935/10) (from Ch. 144, par. 1460)
24 Sec. 10. Scholarship recipients who fail to fulfill the
25 obligation described in subsection (d) of Section 3.07 of
26 this Act shall pay to the Department a sum equal to 3 times
27 the amount of the annual scholarship grant for each year the
28 recipient fails to fulfill such obligation. A scholarship
29 recipient who fails to fulfill the obligation described in
30 subsection (d) of Section 3.07 shall have 30 days from the
31 date on which that failure begins in which to enter into a
32 contract with the Department that sets forth the manner in
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1 which that sum is required to be paid. If the contract is
2 not entered into within that 30 day period or if the contract
3 is entered into but the required payments are not made in the
4 amounts and at the times provided in the contract, the
5 scholarship recipient also shall be required to pay to the
6 Department interest at the rate of 9% per annum on the amount
7 of that sum remaining due and unpaid. The amounts paid to the
8 Department under this Section shall be deposited into the
9 Community Health Center Care Fund and shall be used by the
10 Department to improve access to primary health care services
11 as authorized by subsection (a) of Section 2310-200 of the
12 Department of Public Health Powers and Duties Law (20 ILCS
13 2310/2310-200).
14 The Department may transfer to the Illinois Development
15 Finance Authority, into an account outside the State
16 treasury, moneys in the Community Health Center Care Fund as
17 needed, but not to exceed an amount established, by rule, by
18 the Department to establish a reserve or credit enhancement
19 escrow account to support a financing program or a loan or
20 equipment leasing program to provide moneys to support the
21 purposes of subsection (a) of Section 2310-200 of the
22 Department of Public Health Powers and Duties Law (20 ILCS
23 2310/2310-200). The disposition of moneys at the conclusion
24 of any financing program under this Section shall be
25 determined by an interagency agreement.
26 (Source: P.A. 90-405, eff. 1-1-98; 91-239, eff. 1-1-00.)
27 Section 890-25. The Illinois Public Aid Code is amended
28 by changing Sections 11-3 and 11-3.3 as follows:
29 (305 ILCS 5/11-3) (from Ch. 23, par. 11-3)
30 Sec. 11-3. Assignment and attachment of aid prohibited.
31 Except as provided below in this Section and in Section
32 11-3.3, all financial aid given under Articles III, IV, V,
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1 and VI and money payments for child care services provided by
2 a child care provider under Articles IX and IXA shall not be
3 subject to assignment, sale, attachment, garnishment, or
4 otherwise. Provided, however, that a medical vendor may use
5 his right to receive vendor payments as collateral for loans
6 from financial institutions so long as such arrangements do
7 not constitute any activity prohibited under Section
8 1902(a)(32) of the Social Security Act and regulations
9 promulgated thereunder, or any other applicable laws or
10 regulations. Provided further, however, that a medical or
11 other vendor or a service provider may assign, reassign,
12 sell, pledge or grant a security interest in any such
13 financial aid, vendor payments or money payments or grants
14 which he has a right to receive to the Illinois Health
15 Facilities Authority, in connection with any financing
16 program undertaken by the Illinois Health Facilities
17 Authority, or to the Illinois Development Finance Authority,
18 in connection with any financing program undertaken by the
19 Illinois Development Finance Authority. Each Authority may
20 utilize a trustee or agent to accept, accomplish, effectuate
21 or realize upon any such assignment, reassignment, sale,
22 pledge or grant on that Authority's behalf. Provided further,
23 however, that nothing herein shall prevent the Illinois
24 Department from collecting any assessment, fee, interest or
25 penalty due under Article V-A, V-B, V-C, or V-E by
26 withholding financial aid as payment of such assessment, fee,
27 interest, or penalty. Any alienation in contravention of this
28 statute does not diminish and does not affect the validity,
29 legality or enforceability of any underlying obligations for
30 which such alienation may have been made as collateral
31 between the parties to the alienation. This amendatory Act
32 shall be retroactive in application and shall pertain to
33 obligations existing prior to its enactment.
34 (Source: P.A. 92-111, eff. 1-1-02.)
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1 (305 ILCS 5/11-3.3) (from Ch. 23, par. 11-3.3)
2 Sec. 11-3.3. Payment to provider or governmental agency
3 or entity. Payments under this Code shall be made to the
4 provider, except that the Department may issue or may agree
5 to issue the payment directly to the Illinois Health
6 Facilities Authority, the Illinois Development Finance
7 Authority, or any other governmental agency or entity,
8 including any bond trustee for that agency or entity, to whom
9 the provider has assigned, reassigned, sold, pledged or
10 granted a security interest in the payments that the provider
11 has a right to receive, provided that the issuance or
12 agreement to issue is not prohibited under Section
13 1902(a)(32) of the Social Security Act.
14 (Source: P.A. 87-842.)
15 Section 890-26. The Illinois Affordable Housing Act is
16 amended by changing Section 6 as follows:
17 (310 ILCS 65/6) (from Ch. 67 1/2, par. 1256)
18 Sec. 6. Advisory Commission.
19 (a) There is hereby created the Illinois Affordable
20 Housing Advisory Commission. The Commission shall consist of
21 15 members. Three of the Commissioners shall be the Directors
22 of the Illinois Housing Development Authority, the Illinois
23 Development Finance Authority and the Department of Commerce
24 and Community Affairs or their representatives. One of the
25 Commissioners shall be the Commissioner of the Chicago
26 Department of Housing or its representative. The remaining 11
27 members shall be appointed by the Governor, with the advice
28 and consent of the Senate, and not more than 4 of these
29 Commission members shall reside in any one county in the
30 State. At least one Commission member shall be an
31 administrator of a public housing authority from other than a
32 municipality having a population in excess of 2,000,000; at
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1 least 2 Commission members shall be representatives of
2 special needs populations as described in subsection (e) of
3 Section 8; at least 4 Commission members shall be
4 representatives of community-based organizations engaged in
5 the development or operation of housing for low-income and
6 very low-income households; and at least 4 Commission members
7 shall be representatives of advocacy organizations, one of
8 which shall represent a tenants' advocacy organization. The
9 Governor shall consider nominations made by advocacy
10 organizations and community-based organizations.
11 (b) Members appointed to the Commission shall serve a
12 term of 3 years; however, 3 members first appointed under
13 this Act shall serve an initial term of one year, and 4
14 members first appointed under this Act shall serve a term of
15 2 years. Individual terms of office shall be chosen by lot
16 at the initial meeting of the Commission. The Governor shall
17 appoint the Chairman of the Commission, and the Commission
18 members shall elect a Vice Chairman.
19 (c) Members of the Commission shall not be entitled to
20 compensation, but shall receive reimbursement for actual and
21 reasonable expenses incurred in the performance of their
22 duties.
23 (d) Eight members of the Commission shall constitute a
24 quorum for the transaction of business.
25 (e) The Commission shall meet at least quarterly and its
26 duties and responsibilities are:
27 (1) the study and review of the availability of
28 affordable housing for low-income and very low-income
29 households in the State of Illinois and the development
30 of a plan which addresses the need for additional
31 affordable housing;
32 (2) encouraging collaboration between federal and
33 State agencies, local government and the private sector
34 in the planning, development and operation of affordable
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1 housing for low-income and very low-income households;
2 (3) studying, evaluating and soliciting new and
3 expanded sources of funding for affordable housing;
4 (4) developing, proposing, reviewing, and
5 commenting on priorities, policies and procedures for
6 uses and expenditures of Trust Fund monies, including
7 policies which assure equitable distribution of funds
8 statewide;
9 (5) making recommendations to the Program
10 Administrator concerning proposed expenditures from the
11 Trust Fund;
12 (6) making recommendations to the Program
13 Administrator concerning the developments proposed to be
14 financed with the proceeds of Affordable Housing Program
15 Trust Fund Bonds or Notes;
16 (7) reviewing and commenting on the development of
17 priorities, policies and procedures for the
18 administration of the Program;
19 (8) monitoring and evaluating all allocations of
20 funds under this Program; and
21 (9) making recommendations to the General Assembly
22 for further legislation that may be necessary in the area
23 of affordable housing.
24 (Source: P.A. 88-93; 89-286, eff. 8-10-95.)
25 Section 890-27. The Illinois Rural/Downstate Health Act
26 is amended by changing Section 4 as follows:
27 (410 ILCS 65/4) (from Ch. 111 1/2, par. 8054)
28 Sec. 4. The Center shall have the authority:
29 (a) To assist rural communities and communities in
30 designated shortage areas by providing technical assistance
31 to community leaders in defining their specific health care
32 needs and identifying strategies to address those needs.
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1 (b) To link rural communities and communities in
2 designated shortage areas with other units in the Department
3 or other State agencies which can assist in the solution of a
4 health care access problem.
5 (c) To maintain and disseminate information on
6 innovative health care strategies, either directly or
7 indirectly.
8 (d) To administer State or federal grant programs
9 relating to rural health or medically underserved areas
10 established by State or federal law for which funding has
11 been made available.
12 (e) To promote the development of primary care services
13 in rural areas and designated shortage areas. Subject to
14 available appropriations, the Department may annually award
15 grants of up to $300,000 each to enable the health services
16 in those areas to offer multi-service comprehensive
17 ambulatory care, thereby improving access to primary care
18 services. Grants may cover operational and facility
19 construction and renovation expenses, including but not
20 limited to the cost of personnel, medical supplies and
21 equipment, patient transportation, and health provider
22 recruitment. The Department shall prescribe by rule standards
23 and procedures for the provision of local matching funds in
24 relation to each grant application. Grants provided under
25 this paragraph (e) shall be in addition to support and
26 assistance provided under subsection (a) of Section 2310-200
27 of the Department of Public Health Powers and Duties Law (20
28 ILCS 2310/2310-200). Eligible applicants shall include, but
29 not be limited to, community-based organizations, hospitals,
30 local health departments, and Community Health Centers as
31 defined in Section 4.1 of this Act.
32 (f) To annually provide grants from available
33 appropriations to hospitals located in medically underserved
34 areas or health manpower shortage areas as defined by the
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1 United States Department of Health and Human Services, whose
2 governing boards include significant representation of
3 consumers of hospital services residing in the area served by
4 the hospital, and which agree not to discriminate in any way
5 against any consumer of hospital services based upon the
6 consumer's source of payment for those services. Grants that
7 may be awarded under this paragraph (f) shall be limited to
8 $500,000 and shall not exceed 50% of the total project need
9 indicated in each application. Expenses covered by the grants
10 may include but are not limited to facility renovation,
11 equipment acquisition and maintenance, recruitment of health
12 personnel, diversification of services, and joint venture
13 arrangements.
14 (g) To establish a recruitment center which shall
15 actively recruit physicians and other health care
16 practitioners to participate in the program, maintain
17 contacts with participating practitioners, actively promote
18 health care professional practice in designated shortage
19 areas, assist in matching the skills of participating medical
20 students with the needs of community health centers in
21 designated shortage areas, and assist participating medical
22 students in locating in designated shortage areas.
23 (h) To assist communities in designated shortage areas
24 find alternative services or temporary health care providers
25 when existing health care providers are called into active
26 duty with the armed forces of the United States.
27 (i) To develop, in cooperation with the Illinois
28 Development Finance Authority, financing programs whose goals
29 and purposes shall be to provide moneys to carry out the
30 purpose of this Act, including, but not limited to, revenue
31 bond programs, revolving loan programs, equipment leasing
32 programs, and working cash programs. The Department may
33 transfer to the Illinois Development Finance Authority, into
34 an account outside of the State treasury, moneys in special
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1 funds of the Department for the purposes of establishing
2 those programs. The disposition of any moneys so transferred
3 shall be determined by an interagency agreement.
4 (Source: P.A. 91-239, eff. 1-1-00; 91-357, eff. 7-29-99;
5 92-16, eff. 6-28-01.)
6 Section 890-28. The Prevailing Wage Act is amended by
7 changing Section 2 as follows:
8 (820 ILCS 130/2) (from Ch. 48, par. 39s-2)
9 Sec. 2. This Act applies to the wages of laborers,
10 mechanics and other workers employed in any public works, as
11 hereinafter defined, by any public body and to anyone under
12 contracts for public works.
13 As used in this Act, unless the context indicates
14 otherwise:
15 "Public works" means all fixed works constructed for
16 public use by any public body, other than work done directly
17 by any public utility company, whether or not done under
18 public supervision or direction, or paid for wholly or in
19 part out of public funds. "Public works" as defined herein
20 includes all projects financed in whole or in part with bonds
21 issued under the Industrial Project Revenue Bond Act (Article
22 11, Division 74 of the Illinois Municipal Code), the
23 Industrial Building Revenue Bond Act, the Illinois
24 Development Finance Authority Act, the Illinois Sports
25 Facilities Authority Act, or the Build Illinois Bond Act, and
26 all projects financed in whole or in part with loans or other
27 funds made available pursuant to the Build Illinois Act.
28 "Construction" means all work on public works involving
29 laborers, workers or mechanics.
30 "Locality" means the county where the physical work upon
31 public works is performed, except (1) that if there is not
32 available in the county a sufficient number of competent
SB1075 Enrolled -193- LRB093 08352 JAM 08571 b
1 skilled laborers, workers and mechanics to construct the
2 public works efficiently and properly, "locality" includes
3 any other county nearest the one in which the work or
4 construction is to be performed and from which such persons
5 may be obtained in sufficient numbers to perform the work and
6 (2) that, with respect to contracts for highway work with the
7 Department of Transportation of this State, "locality" may at
8 the discretion of the Secretary of the Department of
9 Transportation be construed to include two or more adjacent
10 counties from which workers may be accessible for work on
11 such construction.
12 "Public body" means the State or any officer, board or
13 commission of the State or any political subdivision or
14 department thereof, or any institution supported in whole or
15 in part by public funds, authorized by law to construct
16 public works or to enter into any contract for the
17 construction of public works, and includes every county,
18 city, town, village, township, school district, irrigation,
19 utility, reclamation improvement or other district and every
20 other political subdivision, district or municipality of the
21 state whether such political subdivision, municipality or
22 district operates under a special charter or not.
23 The terms "general prevailing rate of hourly wages",
24 "general prevailing rate of wages" or "prevailing rate of
25 wages" when used in this Act mean the hourly cash wages plus
26 fringe benefits for training and apprenticeship programs
27 approved by the U.S. Department of Labor, Bureau of
28 Apprenticeship and Training, health and welfare, insurance,
29 vacations and pensions paid generally, in the locality in
30 which the work is being performed, to employees engaged in
31 work of a similar character on public works.
32 (Source: P.A. 91-105, eff. 1-1-00; 91-935, eff. 6-1-01;
33 92-16, eff. 6-28-01.)
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1 Section 890-29. The Transportation Cooperation Act of
2 1971 is amended by changing Section 2 as follows:
3 (5 ILCS 225/2) (from Ch. 111 2/3, par. 602)
4 Sec. 2. For the purposes of this Act:
5 (a) "Railroad passenger service" means any railroad
6 passenger service within the State of Illinois, including the
7 equipment and facilities used in connection therewith, with
8 the exception of the basic system operated by the National
9 Railroad Passenger Corporation pursuant to Title II and
10 Section 403(a) of the Federal Rail Passenger Service Act of
11 1970.
12 (b) "Federal Railroad Corporation" means the National
13 Railroad Passenger Corporation established pursuant to an Act
14 of Congress known as the "Rail Passenger Service Act of
15 1970."
16 (c) "Transportation system" means any and all modes of
17 public transportation within the State, including, but not
18 limited to, transportation of persons or property by rapid
19 transit, rail, bus, and aircraft, and all equipment,
20 facilities and property, real and personal, used in
21 connection therewith.
22 (d) "Carrier" means any corporation, authority,
23 partnership, association, person or district authorized to
24 maintain a transportation system within the State with the
25 exception of the Federal Railroad Corporation.
26 (e) "Units of local government" means cities, villages,
27 incorporated towns, counties, municipalities, townships, and
28 special districts, including any district created pursuant to
29 the "Local Mass Transit District Act", approved July 21,
30 1959, as amended; any Authority created pursuant to the
31 "Metropolitan Transit Authority Act", approved April 12,
32 1945, as amended; and, any authority, commission or other
33 entity which by virtue of an interstate compact approved by
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1 Congress is authorized to provide mass transportation.
2 (f) "Universities" means all public institutions of
3 higher education as defined in an "Act creating a Board of
4 Higher Education, defining its powers and duties, making an
5 appropriation therefor, and repealing an Act herein named",
6 approved August 22, 1961, as amended, and all private
7 institutions of higher education as defined in the Illinois
8 Finance Educational Facilities Authority Act.
9 (g) "Department" means the Illinois Department of
10 Transportation, or such other department designated by law to
11 perform the duties and functions of the Illinois Department
12 of Transportation prior to January 1, 1972.
13 (h) "Association" means any Transportation Service
14 Association created pursuant to Section 4 of this Act.
15 (i) "Contracting Parties" means any units of local
16 government or universities which have associated and joined
17 together pursuant to Section 3 of this Act.
18 (j) "Governing authorities" means (1) the city council
19 or similar legislative body of a city; (2) the board of
20 trustees or similar body of a village or incorporated town;
21 (3) the council of a municipality under the commission form
22 of municipal government; (4) the board of trustees in a
23 township; (5) the Board of Trustees of the University of
24 Illinois, the Board of Trustees of Southern Illinois
25 University, the Board of Trustees of Chicago State
26 University, the Board of Trustees of Eastern Illinois
27 University, the Board of Trustees of Governors State
28 University, the Board of Trustees of Illinois State
29 University, the Board of Trustees of Northeastern Illinois
30 University, the Board of Trustees of Northern Illinois
31 University, the Board of Trustees of Western Illinois
32 University, and the Illinois Community College Board; (6) the
33 county board of a county; and (7) the trustees,
34 commissioners, board members, or directors of a university,
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1 special district, authority or similar agency.
2 (Source: P.A. 89-4, eff. 1-1-96.)
3 Section 890-30. The Capital Development Board Act is
4 amended by changing Section 3 as follows:
5 (20 ILCS 3105/3) (from Ch. 127, par. 773)
6 Sec. 3. As used in this Act, unless the context
7 otherwise requires:
8 "Board" means the Capital Development Board.
9 "State agency" means and includes each officer,
10 department, board, commission, institution, body politic and
11 corporate of the State including the Illinois Building
12 Authority, school districts, and any other person expending
13 or encumbering State or federal funds by virtue of an
14 appropriation or other authorization by the General Assembly
15 or federal authorization or grant. Except as otherwise
16 expressly authorized by the General Assembly, the term does
17 not include the Department of Transportation, the Department
18 of Natural Resources, or Environmental Protection Agency,
19 except as respects buildings used by the Department or Agency
20 for its officers, employees, or equipment, or any of them,
21 and for capital improvements related to such buildings. Nor
22 does the term include the Illinois Housing Development
23 Authority, the Illinois Finance Educational Facilities
24 Authority or the St. Louis Metropolitan Area Airport
25 Authority.
26 "School District" means any school district or special
27 charter district as defined in Section 1-3 of "The School
28 Code", approved March 18, 1961, as amended, or any
29 administrative district, or governing board, of a joint
30 agreement organized under Section 10-22.31 of the School
31 Code.
32 (Source: P.A. 89-445, eff. 2-7-96.)
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1 Section 890-31. The Higher Education Loan Act is amended
2 by changing the title and Sections 3, 3.01, and 5 as follows:
3 (110 ILCS 945/Act title)
4 An Act relating to the Illinois Finance Educational
5 Facilities Authority and certain of its powers and duties.
6 (Source: P.A. 85-1326.)
7 (110 ILCS 945/3) (from Ch. 144, par. 1603)
8 Sec. 3. Definitions. In this Act, unless the context
9 otherwise requires, the terms specified in Sections 3.01
10 through 3.13 of this Act and Sections 3.01 through 3.09 of
11 the Illinois Finance Educational Facilities Authority Act
12 have the meanings ascribed to them in those Acts Sections.
13 (Source: P.A. 88-555, eff. 7-27-94.)
14 (110 ILCS 945/3.01) (from Ch. 144, par. 1603.01)
15 Sec. 3.01. Authority. "Authority" means the Illinois
16 State Finance Educational Facilities Authority created by the
17 Illinois State Finance Educational Facilities Authority Act.
18 (Source: P.A. 85-1326.)
19 (110 ILCS 945/5) (from Ch. 144, par. 1605)
20 Sec. 5. Transfer of functions from the Illinois
21 Educational Facilities Independent Higher Education Loan
22 Authority to the Illinois Finance Educational Facilities
23 Authority. The Illinois Finance Educational Facilities
24 Authority created by the Illinois Finance Educational
25 Facilities Authority Act shall succeed to, assume and
26 exercise all rights, powers, duties and responsibilities
27 formerly exercised by the Illinois Educational Facilities
28 Independent Higher Education Loan Authority prior to the
29 abolition of that Authority by this amendatory Act of the
30 93rd General Assembly 1988. All books, records, papers,
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1 documents and pending business in any way pertaining to the
2 former Illinois Educational Facilities Independent Higher
3 Education Loan Authority are transferred to the Illinois
4 State Finance Educational Facilities Authority, but any
5 rights or obligations of any person under any contract made
6 by, or under any rules, regulations, uniform standards,
7 criteria and guidelines established or approved by, such
8 former Illinois Educational Facilities Independent Higher
9 Education Loan Authority shall be unaffected thereby. All
10 bonds, notes or other evidences of indebtedness outstanding
11 on the effective date of this amendatory Act of the 93rd
12 General Assembly 1988 shall be unaffected by the transfer of
13 functions to the Illinois Finance Educational Facilities
14 Authority. No rule, regulation, standard, criteria or
15 guideline promulgated, established or approved by the former
16 Illinois Educational Facilities Independent Higher Education
17 Loan Authority pursuant to an exercise of any right, power,
18 duty or responsibility assumed by and transferred to the
19 Illinois Finance Educational Facilities Authority shall be
20 affected by this amendatory Act of the 93rd General Assembly
21 1988, and all such rules, regulations, standards, criteria
22 and guidelines shall become those of the Illinois Finance
23 Educational Facilities Authority until such time as they are
24 amended or repealed by the Authority.
25 (Source: P.A. 85-1326.)
26 Section 890-32. The Rural Diversification Act is amended
27 by changing Sections 2, 3, 4, and 5 as follows:
28 (20 ILCS 690/2) (from Ch. 5, par. 2252)
29 Sec. 2. Findings and declaration of policy. The General
30 Assembly hereby finds, determines and declares:
31 (a) That Illinois is a state of diversified economic
32 strength and that an important economic strength in Illinois
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1 is derived from rural business production and the
2 agribusiness industry;
3 (b) That the Illinois rural economy is in a state of
4 transition, which presents a unique opportunity for the State
5 to act on its growth and development;
6 (c) That full and continued growth and development of
7 Illinois' rural economy, especially in the small towns and
8 farm communities, is vital for Illinois;
9 (d) That by encouraging the development of diversified
10 rural business and agricultural production, nonproduction and
11 processing activities in Illinois, the State creates a
12 beneficial climate for new and improved job opportunities for
13 its citizens and expands jobs and job training opportunities;
14 (e) That in order to cultivate strong rural economic
15 growth and development in Illinois, it is necessary to
16 proceed with a plan which encourages Illinois rural
17 businesses and agribusinesses to expand business employment
18 opportunities through diversification of business and
19 industries, offers managerial, technical and financial
20 assistance to or on behalf of rural businesses and
21 agribusiness, and works in a cooperative venture and spirit
22 with Illinois' business, labor, local government, educational
23 and scientific communities;
24 (f) That dedication of State resources over a multi-year
25 period targeted to promoting the growth and development of
26 one or more classes of diversified rural products,
27 particularly new agricultural products, is an effective use
28 of State funds;
29 (g) That the United States Congress, having identified
30 similar needs and purposes has enacted legislation creating
31 the United States Department of Agriculture/Farmers Home
32 Administration Non-profit National Finance Corporations Loan
33 and Grant Program and made funding available to the states
34 consistent with the purposes of this Act.
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1 (h) That the Illinois General Assembly has enacted
2 "Rural Revival" and a series of "Harvest the Heartland"
3 initiatives which create within the Illinois Finance Farm
4 Development Authority a "Seed Capital Fund" to provide
5 venture capital for emerging new agribusinesses, and to help
6 coordinate cooperative research and development on new
7 agriculture technologies in conjunction with the Agricultural
8 Research and Development Consortium in Peoria, the United
9 State Department of Agriculture Northern Regional Research
10 Laboratory in Peoria, the institutions of higher learning in
11 Illinois, and the agribusiness community of this State,
12 identify the need for enhanced efforts by the State to
13 promote the use of fuels utilizing ethanol made from Illinois
14 grain, and promote forestry development in this State; and
15 (i) That there is a need to coordinate the many programs
16 offered by the State of Illinois Departments of Agriculture,
17 Commerce and Community Affairs, and Natural Resources, and
18 the Illinois Finance Farm Development Authority that are
19 targeted to agriculture and the rural community with those
20 offered by the federal government. Therefore it is desirable
21 that the fullest measure of coordination and integration of
22 the programs offered by the various state agencies and the
23 federal government be achieved.
24 (Source: P.A. 89-445, eff. 2-7-96.)
25 (20 ILCS 690/3) (from Ch. 5, par. 2253)
26 Sec. 3. Definitions. The following words and phrases
27 shall have the meaning ascribed to each of them in this
28 Section unless the context clearly indicates otherwise:
29 (a) "Office" means the Office of Rural Community
30 Development within the Illinois Department of Commerce and
31 Community Affairs.
32 (b) "Rural business" means a business, including a
33 cooperative, proprietorship, partnership, corporation or
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1 other entity, that is located in a municipality of 20,000
2 population or less, or in an unincorporated area of a county
3 with a population of less than 350,000, but not in a
4 municipality which is contiguous to a municipality or
5 municipalities with a population greater than 20,000. The
6 business must also be engaged in manufacturing, mining,
7 agriculture, wholesale, transportation, tourism, or utilities
8 or in research and development or services to these basic
9 industrial sectors.
10 (c) "Agribusiness", for purpose of this Act, means a
11 rural business that is defined as an agribusiness pursuant to
12 subsection (i) of Section 2 of the Illinois Finance Authority
13 Farm Development Act.
14 (d) "Rural diversification project" means financing to a
15 rural business for a specific activity undertaken to promote:
16 (i) the improvement and expansion of business and industry in
17 rural areas; (ii) creation of entrepreneurial and
18 self-employment businesses; (iii) industry or region wide
19 research directed to profit oriented uses of rural resources,
20 and (iv) value added agricultural supply, production
21 processing or reprocessing facilities or operations and shall
22 include but not be limited to agricultural diversification
23 projects.
24 (e) "Financing" means direct loans at market or below
25 market rate interest, grants, technical assistance contracts,
26 or other means whereby monetary assistance is provided to or
27 on behalf of rural business or agribusinesses for purposes of
28 rural diversification.
29 (f) "Agricultural diversification project" means
30 financing awarded to a rural business for a specific activity
31 undertaken to promote diversification of the farm economy of
32 this State through (i) profit oriented nonproduction uses of
33 Illinois land resources, (ii) growth and development of new
34 crops or livestock not customarily grown or produced in this
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1 State, or (iii) developments which emphasize a vertical
2 integration of grain or livestock produced or raised in this
3 State into a finished product for consumption or use. "New
4 crops or livestock not customarily grown or produced in this
5 State" does not include corn, soybeans, wheat, swine, or beef
6 or dairy cattle. "Vertical integration of grain or livestock
7 produced or raised in this State" includes any new or
8 existing grain or livestock grown or produced in this State.
9 (Source: P.A. 85-180.)
10 (20 ILCS 690/4) (from Ch. 5, par. 2254)
11 Sec. 4. Powers of the Office. The Office has the
12 following powers, in addition to those granted to it by other
13 law:
14 (a) To provide financing pursuant to the provisions of
15 this Act, from appropriations made by the General Assembly
16 from the General Revenue Fund, Federal trust funds, and the
17 Rural Diversification Revolving Fund created herein, to or on
18 behalf of rural business and agribusiness to promote rural
19 diversification.
20 (b) To provide financing in the form of direct loans and
21 grants from State funds for qualifying agricultural and rural
22 diversification projects independent of federal financial
23 participation, except that no grants from State funds shall
24 be made directly with a rural business.
25 (c) To provide financing in the form of direct loans,
26 grants, and technical assistance contracts from State funds
27 for qualifying agricultural and rural diversification
28 projects in coordination with federal financial participation
29 in the form of loan guarantees, direct loans, and grant and
30 technical assistance contract reimbursements.
31 (d) To consider in the award of State funded financing
32 the satisfaction of matching requirements associated with
33 federal financing participation and the maximization of
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1 federal financing participation to the benefit of the rural
2 Illinois economy.
3 (e) To enter into agreements or contracts, accept funds
4 or grants, and cooperate with agencies of the Federal
5 Government, State or Local Governments, the private sector or
6 non-profit organizations to carry out the purposes of this
7 Act;
8 (f) To enter into agreements or contracts for the
9 promotion, application origination, analysis or servicing of
10 the financings made by the Office pursuant to this Act;
11 (g) To receive and accept, from any source, aid or
12 contributions of money, property or labor for the furtherance
13 of this Act and collect fees, charges or advances as the
14 Department may determine in connection with its financing;
15 (h) To establish application, notification, contract and
16 other procedures and other procedures and rules deemed
17 necessary and appropriate by the Office to carry out the
18 provisions of this Act;
19 (i) To foreclose any mortgage, deed of trust, note,
20 debenture, bond or other security interest held by the Office
21 and to take all such actions as may be necessary to enforce
22 any obligation held by the Office;
23 (j) To analyze opportunities and needs of rural
24 communities, primarily those communities experiencing farm
25 worker distress including consultation with regional
26 commissions, governments, or diversification organizations,
27 and work to strengthen the coordination of existing programs
28 offered through the Office, the Department of Agriculture,
29 the Department of Natural Resources, the Illinois Finance
30 Farm Development Authority, the Cooperative Extension Service
31 and others for rural and agribusiness development and
32 assistance; and
33 (k) To cooperate with an existing committee comprised of
34 representatives from the Office, the Rural Affairs Council or
SB1075 Enrolled -204- LRB093 08352 JAM 08571 b
1 its successor, the Department of Agriculture, the Illinois
2 Finance Farm Development Authority and others to coordinate
3 departmental policies with other State agencies and to
4 promote agricultural and rural diversification in the State.
5 (l) To exercise such other right, powers and duties as
6 are necessary to fulfill the purposes of this Act.
7 (Source: P.A. 89-445, eff. 2-7-96.)
8 (20 ILCS 690/5) (from Ch. 5, par. 2255)
9 Sec. 5. Agricultural and rural diversification
10 financing. (a) The Office's financing to or on behalf of
11 rural businesses or agribusinesses in the State shall be for
12 the purpose of assisting in the cost of agricultural and
13 rural diversification projects including (i) acquisition,
14 construction, reconstruction, replacement, repair,
15 rehabilitation, alteration, expansion or extension of real
16 property, buildings or machinery and equipment but not the
17 acquisition of unimproved land for the production of crops or
18 livestock; (ii) working capital items including but not
19 limited to, inventory, accounts receivable and prepaid
20 expenses; (iii) organizational expenses including, but not
21 limited to, architectural and engineering costs, legal
22 services, marketing analyses, production analyses, or other
23 professional services; (iv) needed leasehold improvements,
24 easements, and other amenities required to prepare a site;
25 (v) information, technical support and technical assistance
26 contracts to local officials or not-for-profit agencies
27 regarding private, state and federal resources, programs or
28 grant assistances and the needs and opportunities for
29 diversification; and (vi) when conducted in cooperation with
30 federal reimbursement programs, financing costs including
31 guarantee fees, packaging fees and origination fees but not
32 debt refinancing.
33 (b) Agricultural or rural diversification financing to a
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1 rural business or agribusiness under this Act shall be used
2 only where it can be shown that the agricultural or rural
3 diversification project for which financing is being sought
4 has the potential to achieve commercial success and will
5 increase employment, directly or indirectly retain jobs, or
6 promote local diversification.
7 (c) The Office shall establish an internal review
8 committee with the Director of the Rural Affairs Council, or
9 his designee, the Director of the Department of Agriculture,
10 or his designee, and the Director of the Illinois Finance
11 Farm Development Authority, or his designee, as members to
12 assist in the review of all project applications.
13 (d) The Office shall not provide financing to a rural
14 business or agribusiness unless the application includes
15 convincing evidence that a specific agricultural or rural
16 diversification project is ready to occur and will only occur
17 if the financing is made. The Office shall also consider the
18 applicability of other state and federal programs prior to
19 financing any project.
20 (Source: P.A. 85-180.)
21 Section 890-33. The Emergency Farm Credit Allocation Act
22 is amended by changing Sections 3 and 4 as follows:
23 (20 ILCS 3610/3) (from Ch. 5, par. 1253)
24 Sec. 3. As used in this Act unless the context otherwise
25 requires:
26 (a) "Applicant" means an Illinois farmer applying for an
27 operating loan.
28 (b) "Operating loan" means a loan to an applicant in
29 connection with cultivating the soil, or in connection with
30 raising or harvesting any agricultural or horticultural
31 commodity, including the raising, feeding and management of
32 livestock or poultry on a farm of which the applicant is the
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1 owner, tenant, or operator, for the current year's operating
2 expenses.
3 (c) "Lender" means any federal or State chartered bank,
4 federal land bank, production credit association, bank for
5 cooperatives, federal or State chartered savings and loan
6 association or building and loan association, business
7 investment company or any other institution qualified within
8 this State to originate and service loans, including, but
9 without limitation to, insurance companies, credit unions and
10 mortgage loan companies.
11 (d) "Payment adjustment" means an amount of money equal
12 to one-half of the total interest payable on the principal of
13 the operating loan.
14 (e) "Authority" means the Illinois Finance Farm
15 Development Authority.
16 (f) "Asset" shall include, but not be limited to the
17 following: cash crops or feed on hand; livestock held for
18 sale; breeding stock; marketable bonds and securities;
19 securities not readily marketable; accounts receivable; notes
20 receivable; cash invested in growing crops; net cash value of
21 life insurance; machinery and equipment; cars and trucks;
22 farm and other real estate including life estates and
23 personal residence; value of beneficial interests in trusts;
24 government payments or grants; and any other assets.
25 (g) "Liability" shall include, but not be limited to the
26 following: accounts payable; notes or other indebtedness owed
27 to any source; taxes; rent; amounts owed on real estate
28 contracts or real estate mortgages; judgments; accrued
29 interest payable; and any other liability.
30 (h) "Debt to asset ratio" means the current outstanding
31 liabilities of the farmer divided by the current outstanding
32 assets of the farmer.
33 (Source: P.A. 84-1; 84-1106.)
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1 (20 ILCS 3610/4) (from Ch. 5, par. 1254)
2 Sec. 4. There is hereby created a payment adjustment
3 program to be administered by the Illinois Finance Farm
4 Development Authority. The Authority shall have the authority
5 to promulgate and adopt rules and regulations which are
6 consistent with this Act. The Authority may impose a minimal
7 fee to cover the costs of administering the program. On or
8 before May 1 of each of the next six years, or until all
9 repayments have been received on payment adjustments, the
10 Authority shall submit a report to the General Assembly and
11 the Governor concerning the status of the payment adjustment
12 program. The Authority shall grant no payment adjustments
13 after June 15, 1986.
14 (Source: P.A. 84-1; 84-1106.)
15 Section 890-34. The Build Illinois Act is amended by
16 changing Section 8-3 as follows:
17 (30 ILCS 750/8-3) (from Ch. 127, par. 2708-3)
18 Sec. 8-3. Powers of the Department. The Department has
19 the power to:
20 (a) provide business development public infrastructure
21 loans or grants from appropriations from the Build Illinois
22 Bond Fund, the Build Illinois Purposes Fund, the Fund for
23 Illinois' Future, and the Public Infrastructure Construction
24 Loan Fund to local governments to provide or improve a
25 community's public infrastructure so as to create or retain
26 private sector jobs pursuant to the provisions of this
27 Article;
28 (b) provide affordable financing of public
29 infrastructure loans and grants to, or on behalf of, local
30 governments, local public entities, medical facilities, and
31 public health clinics from appropriations from the Public
32 Infrastructure Construction Loan Fund for the purpose of
SB1075 Enrolled -208- LRB093 08352 JAM 08571 b
1 assisting with the financing, or application and access to
2 financing, of a community's public infrastructure necessary
3 to health, safety, and economic development;
4 (c) enter into agreements, accept funds or grants, and
5 engage in cooperation with agencies of the federal
6 government, or state or local governments to carry out the
7 purposes of this Article, and to use funds appropriated
8 pursuant to this Article to participate in federal
9 infrastructure loan and grant programs upon such terms and
10 conditions as may be established by the federal government;
11 (d) establish application, notification, contract, and
12 other procedures, rules, or regulations deemed necessary and
13 appropriate to carry out the provisions of this Article;
14 (e) coordinate assistance under this program with
15 activities of the Illinois Development Finance Authority in
16 order to maximize the effectiveness and efficiency of State
17 development programs;
18 (f) coordinate assistance under the Affordable Financing
19 of Public Infrastructure Loan and Grant Program with the
20 activities of the Illinois Development Finance Authority,
21 Illinois Rural Bond Bank, Illinois Finance Farm Development
22 Authority, Illinois Housing Development Authority, Illinois
23 Environmental Protection Agency, and other federal and State
24 programs and entities providing financing assistance to
25 communities for public health, safety, and economic
26 development infrastructure;
27 (f-5) provide staff, administration, and related support
28 required to manage the programs authorized under this Article
29 and pay for the staffing, administration, and related support
30 from the Public Infrastructure Construction Loan Revolving
31 Fund;
32 (g) exercise such other powers as are necessary or
33 incidental to the foregoing.
34 (Source: P.A. 90-454, eff. 8-16-97; 91-34, eff. 7-1-99.)
SB1075 Enrolled -209- LRB093 08352 JAM 08571 b
1 Section 890-35. The Livestock Management Facilities Act
2 is amended by changing Section 17 as follows:
3 (510 ILCS 77/17)
4 Sec. 17. Financial responsibility. Owners of new or
5 modified lagoons registered under the provisions of this Act
6 shall establish and maintain evidence of financial
7 responsibility to provide for the closure of the lagoons and
8 the proper disposal of their contents within the time
9 provisions outlined in this Act. Financial responsibility
10 may be evidenced by any combination of the following:
11 (1) Commercial or private insurance;
12 (2) Guarantee;
13 (3) Surety bond;
14 (4) Letter of credit;
15 (5) Certificate of Deposit or designated savings
16 account;
17 (6) Participation in a livestock waste lagoon closure
18 fund managed by the Illinois Finance Farm Development
19 Authority.
20 The level of surety required shall be determined by rule
21 and be based upon the volumetric capacity of the lagoon.
22 Surety instruments required under this Section shall be
23 required after the effective date of rules adopted for the
24 implementation of this Act.
25 (Source: P.A. 89-456, eff. 5-21-96; 90-565, eff. 6-1-98.)
26 Section 890-36. The Illinois Forestry Development Act is
27 amended by changing Sections 4 and 6a as follows:
28 (525 ILCS 15/4) (from Ch. 96 1/2, par. 9104)
29 Sec. 4. The Department shall: (a) Implement the forestry
30 development cost share program created by Section 5 of this
31 Act and coordinate with the United States Department of
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1 Agriculture - Soil Conservation Service and the Agricultural
2 Stabilization and Conservation Service in the administration
3 of such program.
4 (b) Approve acceptable forestry management plans as
5 required by Section 5 of this Act.
6 (c) Provide assistance to the Illinois Council on
7 Forestry Development.
8 (d) Promote the development of an active forestry
9 industry in this State by providing information to timber
10 growers relating to acceptable management practices,
11 suitability of various kinds of timber to various land types,
12 marketability of various types of timber, market strategies
13 including marketing cooperatives, availability of State and
14 federal government assistance, soil and water conservation
15 benefits, and wildlife habitat enhancement opportunities.
16 (e) Provide any aid or information requested by the
17 Illinois Finance Farm Development Authority in relation to
18 forestry industry assistance programs implemented under the
19 "Illinois Finance Authority Farm Development Act".
20 (Source: P.A. 86-779.)
21 (525 ILCS 15/6a) (from Ch. 96 1/2, par. 9106a)
22 (Section scheduled to be repealed on December 31, 2008)
23 Sec. 6a. Illinois Forestry Development Council.
24 (a) The Illinois Forestry Development Council is hereby
25 re-created by this amendatory Act of the 91st General
26 Assembly.
27 (b) The Council shall consist of 24 members appointed as
28 follows:
29 (1) four members of the General Assembly, one
30 appointed by the President of the Senate, one appointed
31 by the Senate Minority Leader, one appointed by the
32 Speaker of the House of Representatives, and one
33 appointed by the House Minority Leader;
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1 (2) one member appointed by the Governor to
2 represent the Governor;
3 (3) the Directors of the Departments of Natural
4 Resources, Agriculture, and Commerce and Community
5 Affairs, the Executive Director of the Illinois Finance
6 Farm Development Authority, and the Director of the
7 Office of Rural Affairs, or their designees;
8 (4) the chairman of the Department of Forestry or a
9 forestry academician, appointed by the Dean of
10 Agriculture at Southern Illinois University at
11 Carbondale;
12 (5) the head of the Department of Natural Resources
13 and Environmental Sciences or a forestry academician,
14 appointed by the Dean of Agriculture at the University of
15 Illinois;
16 (6) two members, appointed by the Governor, who
17 shall be private timber growers;
18 (7) one member, appointed by the president of the
19 Illinois Wood Products Association, who shall be involved
20 in primary forestry industry;
21 (8) one member, appointed by the president of the
22 Illinois Wood Products Association, who shall be involved
23 in secondary forestry industry;
24 (9) one member who is actively involved in
25 environmental issues, appointed by the Governor;
26 (10) the president of the Association of Illinois
27 Soil and Water Conservation Districts;
28 (11) two persons who are actively engaged in
29 farming, appointed by the Governor;
30 (12) one member, appointed by the Governor, whose
31 primary area of expertise is urban forestry;
32 (13) one member appointed by the President of the
33 Illinois Arborists Association;
34 (14) the Supervisor of the Shawnee National Forest
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1 and the United States Department of Agriculture Natural
2 Resource Conservation Service's State Conservationist, ex
3 officio, or their designees.
4 (c) Members of the Council shall serve without
5 compensation but shall be reimbursed for actual expenses
6 incurred in the performance of their duties which are not
7 otherwise reimbursed.
8 (d) The Council shall select from its membership a
9 chairperson and such other officers as it considers
10 necessary.
11 (e) Other individuals, agencies and organizations may be
12 invited to participate as deemed advisable by the Council.
13 (f) The Council shall study and evaluate the forestry
14 resources and forestry industry of Illinois. The Council
15 shall:
16 (1) determine the magnitude, nature and extent of
17 the State's forestry resources;
18 (2) determine current uses and project future
19 demand for forest products, services and benefits in
20 Illinois;
21 (3) determine and evaluate the ownership
22 characteristics of the State's forests, the motives for
23 forest ownership and the success of incentives necessary
24 to stimulate development of forest resources;
25 (4) determine the economic development and
26 management opportunities that could result from
27 improvements in local and regional forest product
28 marketing and from the establishment of new or additional
29 wood-related businesses in Illinois;
30 (5) confer with and offer assistance to the
31 Illinois Finance Farm Development Authority relating to
32 its implementation of forest industry assistance programs
33 authorized by the Illinois Finance Authority Farm
34 Development Act;
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1 (6) determine the opportunities for increasing
2 employment and economic growth through development of
3 forest resources;
4 (7) determine the effect of current governmental
5 policies and regulations on the management of woodlands
6 and the location of wood products markets;
7 (8) determine the staffing and funding needs for
8 forestry and other conservation programs to support and
9 enhance forest resources development;
10 (9) determine the needs of forestry education
11 programs in this State;
12 (10) confer with and offer assistance to the
13 Department of Natural Resources relating to the
14 implementation of urban forestry assistance grants
15 pursuant to the Urban and Community Forestry Assistance
16 Act; and
17 (11) determine soil and water conservation benefits
18 and wildlife habitat enhancement opportunities that can
19 be promoted through approved forestry management plans.
20 (g) The Council shall report (i) its findings and
21 recommendations for future State action and (ii) its
22 evaluation of Urban/Community Forestry Assistance Grants to
23 the General Assembly no later than July 1 of each year.
24 (h) This Section 6a is repealed December 31, 2008.
25 (Source: P.A. 90-809, eff. 12-31-98; 91-157, eff. 7-16-99.)
26 Section 890-37. The Public Funds Investment Act is
27 amended by changing Section 6 as follows:
28 (30 ILCS 235/6) (from Ch. 85, par. 906)
29 Sec. 6. Report of financial institutions.
30 (a) No bank shall receive any public funds unless it has
31 furnished the corporate authorities of a public agency
32 submitting a deposit with copies of the last two sworn
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1 statements of resources and liabilities which the bank is
2 required to furnish to the Commissioner of Banks and Real
3 Estate or to the Comptroller of the Currency. Each bank
4 designated as a depository for public funds shall, while
5 acting as such depository, furnish the corporate authorities
6 of a public agency with a copy of all statements of resources
7 and liabilities which it is required to furnish to the
8 Commissioner of Banks and Real Estate or to the Comptroller
9 of the Currency; provided, that if such funds or moneys are
10 deposited in a bank, the amount of all such deposits not
11 collateralized or insured by an agency of the federal
12 government shall not exceed 75% of the capital stock and
13 surplus of such bank, and the corporate authorities of a
14 public agency submitting a deposit shall not be discharged
15 from responsibility for any funds or moneys deposited in any
16 bank in excess of such limitation.
17 (b) No savings bank or savings and loan association
18 shall receive public funds unless it has furnished the
19 corporate authorities of a public agency submitting a deposit
20 with copies of the last 2 sworn statements of resources and
21 liabilities which the savings bank or savings and loan
22 association is required to furnish to the Commissioner of
23 Banks and Real Estate or the Federal Deposit Insurance
24 Corporation. Each savings bank or savings and loan
25 association designated as a depository for public funds
26 shall, while acting as such depository, furnish the corporate
27 authorities of a public agency with a copy of all statements
28 of resources and liabilities which it is required to furnish
29 to the Commissioner of Banks and Real Estate or the Federal
30 Deposit Insurance Corporation; provided, that if such funds
31 or moneys are deposited in a savings bank or savings and loan
32 association, the amount of all such deposits not
33 collateralized or insured by an agency of the federal
34 government shall not exceed 75% of the net worth of such
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1 savings bank or savings and loan association as defined by
2 the Federal Deposit Insurance Corporation, and the corporate
3 authorities of a public agency submitting a deposit shall not
4 be discharged from responsibility for any funds or moneys
5 deposited in any savings bank or savings and loan association
6 in excess of such limitation.
7 (c) No credit union shall receive public funds unless it
8 has furnished the corporate authorities of a public agency
9 submitting a share deposit with copies of the last two
10 reports of examination prepared by or submitted to the
11 Illinois Department of Financial Institutions or the National
12 Credit Union Administration. Each credit union designated as
13 a depository for public funds shall, while acting as such
14 depository, furnish the corporate authorities of a public
15 agency with a copy of all reports of examination prepared by
16 or furnished to the Illinois Department of Financial
17 Institutions or the National Credit Union Administration;
18 provided that if such funds or moneys are invested in a
19 credit union account, the amount of all such investments not
20 collateralized or insured by an agency of the federal
21 government or other approved share insurer shall not exceed
22 50% of the unimpaired capital and surplus of such credit
23 union, which shall include shares, reserves and undivided
24 earnings and the corporate authorities of a public agency
25 making an investment shall not be discharged from
26 responsibility for any funds or moneys invested in a credit
27 union in excess of such limitation.
28 (d) Whenever a public agency deposits any public funds
29 in a financial institution, the public agency may enter into
30 an agreement with the financial institution requiring any
31 funds not insured by the Federal Deposit Insurance
32 Corporation or the National Credit Union Administration or
33 other approved share insurer to be collateralized by
34 securities, mortgages, letters of credit issued by a Federal
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1 Home Loan Bank, or loans covered by a State Guaranty under
2 the Illinois Finance Authority Farm Development Act in an
3 amount equal to at least market value of that amount of funds
4 deposited exceeding the insurance limitation provided by the
5 Federal Deposit Insurance Corporation or the National Credit
6 Union Administration or other approved share insurer.
7 (e) Paragraphs (a), (b), (c), and (d) of this Section do
8 not apply to the University of Illinois, Southern Illinois
9 University, Chicago State University, Eastern Illinois
10 University, Governors State University, Illinois State
11 University, Northeastern Illinois University, Northern
12 Illinois University, Western Illinois University, the
13 Cooperative Computer Center and public community colleges.
14 (Source: P.A. 91-324, eff. 1-1-00; 91-773, eff. 6-9-00.)
15 Section 890-38. The Children and Family Services Act is
16 amended by changing Section 22.4 as follows:
17 (20 ILCS 505/22.4) (from Ch. 23, par. 5022.4)
18 Sec. 22.4. Low-interest loans for child care facilities;
19 Department of Human Services. The Department of Human
20 Services may establish, with financing to be provided through
21 the issuance of bonds by the Illinois Finance Health
22 Facilities Authority pursuant to the Illinois Finance Health
23 Facilities Authority Act, as now or hereafter amended, a
24 low-interest loan program to help child care centers and
25 family day care homes accomplish the following:
26 (a) establish a child care program;
27 (b) meet federal, State and local child care
28 standards as well as any applicable health and safety
29 standards; or
30 (c) build facilities or renovate or expand existing
31 facilities.
32 Such loans shall be available only to child care centers
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1 and family day care homes serving children of low income
2 families.
3 (Source: P.A. 89-507, eff. 7-1-97.)
4 Section 890-39. The Energy Conservation and Coal
5 Development Act is amended by changing Section 15 as follows:
6 (20 ILCS 1105/15) (from Ch. 96 1/2, par. 7415)
7 Sec. 15. (a) The Department, in cooperation with the
8 Illinois Development Finance Authority, shall establish a
9 program to assist units of local government, as defined in
10 the Illinois Development Finance Authority Act, to identify
11 and arrange financing for energy conservation projects for
12 buildings and facilities owned or leased by those units of
13 local government.
14 (b) The Department, in cooperation with the Illinois
15 Finance Health Facilities Authority, shall establish a
16 program to assist health facilities to identify and arrange
17 financing for energy conservation projects for buildings and
18 facilities owned or leased by those health facilities.
19 (Source: P.A. 87-852; 88-45.)
20 Section 890-40. The Illinois Public Aid Code is amended
21 by changing Sections 11-3 and 11-3.3 as follows:
22 (305 ILCS 5/11-3) (from Ch. 23, par. 11-3)
23 Sec. 11-3. Assignment and attachment of aid prohibited.
24 Except as provided below in this Section and in Section
25 11-3.3, all financial aid given under Articles III, IV, V,
26 and VI and money payments for child care services provided by
27 a child care provider under Articles IX and IXA shall not be
28 subject to assignment, sale, attachment, garnishment, or
29 otherwise. Provided, however, that a medical vendor may use
30 his right to receive vendor payments as collateral for loans
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1 from financial institutions so long as such arrangements do
2 not constitute any activity prohibited under Section
3 1902(a)(32) of the Social Security Act and regulations
4 promulgated thereunder, or any other applicable laws or
5 regulations. Provided further, however, that a medical or
6 other vendor or a service provider may assign, reassign,
7 sell, pledge or grant a security interest in any such
8 financial aid, vendor payments or money payments or grants
9 which he has a right to receive to the Illinois Finance
10 Health Facilities Authority, in connection with any financing
11 program undertaken by the Illinois Finance Health Facilities
12 Authority, or to the Illinois Development Finance Authority,
13 in connection with any financing program undertaken by the
14 Illinois Development Finance Authority. Each Authority may
15 utilize a trustee or agent to accept, accomplish, effectuate
16 or realize upon any such assignment, reassignment, sale,
17 pledge or grant on that Authority's behalf. Provided further,
18 however, that nothing herein shall prevent the Illinois
19 Department from collecting any assessment, fee, interest or
20 penalty due under Article V-A, V-B, V-C, or V-E by
21 withholding financial aid as payment of such assessment, fee,
22 interest, or penalty. Any alienation in contravention of this
23 statute does not diminish and does not affect the validity,
24 legality or enforceability of any underlying obligations for
25 which such alienation may have been made as collateral
26 between the parties to the alienation. This amendatory Act
27 shall be retroactive in application and shall pertain to
28 obligations existing prior to its enactment.
29 (Source: P.A. 92-111, eff. 1-1-02.)
30 (305 ILCS 5/11-3.3) (from Ch. 23, par. 11-3.3)
31 Sec. 11-3.3. Payment to provider or governmental agency
32 or entity. Payments under this Code shall be made to the
33 provider, except that the Department may issue or may agree
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1 to issue the payment directly to the Illinois Finance Health
2 Facilities Authority, the Illinois Development Finance
3 Authority, or any other governmental agency or entity,
4 including any bond trustee for that agency or entity, to whom
5 the provider has assigned, reassigned, sold, pledged or
6 granted a security interest in the payments that the provider
7 has a right to receive, provided that the issuance or
8 agreement to issue is not prohibited under Section
9 1902(a)(32) of the Social Security Act.
10 (Source: P.A. 87-842.)
11 Section 890-41. The AIDS Confidentiality Act is amended
12 by changing Section 3 as follows:
13 (410 ILCS 305/3) (from Ch. 111 1/2, par. 7303)
14 Sec. 3. When used in this Act:
15 (a) "Department" means the Illinois Department of Public
16 Health.
17 (b) "AIDS" means acquired immunodeficiency syndrome.
18 (c) "HIV" means the Human Immunodeficiency Virus or any
19 other identified causative agent of AIDS.
20 (d) "Written informed consent" means an agreement in
21 writing executed by the subject of a test or the subject's
22 legally authorized representative without undue inducement or
23 any element of force, fraud, deceit, duress or other form of
24 constraint or coercion, which entails at least the following:
25 (1) a fair explanation of the test, including its
26 purpose, potential uses, limitations and the meaning of its
27 results; and
28 (2) a fair explanation of the procedures to be followed,
29 including the voluntary nature of the test, the right to
30 withdraw consent to the testing process at any time, the
31 right to anonymity to the extent provided by law with respect
32 to participation in the test and disclosure of test results,
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1 and the right to confidential treatment of information
2 identifying the subject of the test and the results of the
3 test, to the extent provided by law.
4 (e) "Health facility" means a hospital, nursing home,
5 blood bank, blood center, sperm bank, or other health care
6 institution, including any "health facility" as that term is
7 defined in the Illinois Finance Health Facilities Authority
8 Act.
9 (f) "Health care provider" means any physician, nurse,
10 paramedic, psychologist or other person providing medical,
11 nursing, psychological, or other health care services of any
12 kind.
13 (g) "Test" or "HIV test" means a test to determine the
14 presence of the antibody or antigen to HIV, or of HIV
15 infection.
16 (h) "Person" includes any natural person, partnership,
17 association, joint venture, trust, governmental entity,
18 public or private corporation, health facility or other legal
19 entity.
20 (Source: P.A. 85-677; 85-679.)
21 Section 890-42. The State Employees Group Insurance Act
22 of 1971 is amended by changing Section 3 as follows:
23 (5 ILCS 375/3) (from Ch. 127, par. 523)
24 Sec. 3. Definitions. Unless the context otherwise
25 requires, the following words and phrases as used in this Act
26 shall have the following meanings. The Department may define
27 these and other words and phrases separately for the purpose
28 of implementing specific programs providing benefits under
29 this Act.
30 (a) "Administrative service organization" means any
31 person, firm or corporation experienced in the handling of
32 claims which is fully qualified, financially sound and
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1 capable of meeting the service requirements of a contract of
2 administration executed with the Department.
3 (b) "Annuitant" means (1) an employee who retires, or
4 has retired, on or after January 1, 1966 on an immediate
5 annuity under the provisions of Articles 2, 14, 15 (including
6 an employee who has retired under the optional retirement
7 program established under Section 15-158.2), paragraphs (2),
8 (3), or (5) of Section 16-106, or Article 18 of the Illinois
9 Pension Code; (2) any person who was receiving group
10 insurance coverage under this Act as of March 31, 1978 by
11 reason of his status as an annuitant, even though the annuity
12 in relation to which such coverage was provided is a
13 proportional annuity based on less than the minimum period of
14 service required for a retirement annuity in the system
15 involved; (3) any person not otherwise covered by this Act
16 who has retired as a participating member under Article 2 of
17 the Illinois Pension Code but is ineligible for the
18 retirement annuity under Section 2-119 of the Illinois
19 Pension Code; (4) the spouse of any person who is receiving a
20 retirement annuity under Article 18 of the Illinois Pension
21 Code and who is covered under a group health insurance
22 program sponsored by a governmental employer other than the
23 State of Illinois and who has irrevocably elected to waive
24 his or her coverage under this Act and to have his or her
25 spouse considered as the "annuitant" under this Act and not
26 as a "dependent"; or (5) an employee who retires, or has
27 retired, from a qualified position, as determined according
28 to rules promulgated by the Director, under a qualified local
29 government or a qualified rehabilitation facility or a
30 qualified domestic violence shelter or service. (For
31 definition of "retired employee", see (p) post).
32 (b-5) "New SERS annuitant" means a person who, on or
33 after January 1, 1998, becomes an annuitant, as defined in
34 subsection (b), by virtue of beginning to receive a
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1 retirement annuity under Article 14 of the Illinois Pension
2 Code, and is eligible to participate in the basic program of
3 group health benefits provided for annuitants under this Act.
4 (b-6) "New SURS annuitant" means a person who (1) on or
5 after January 1, 1998, becomes an annuitant, as defined in
6 subsection (b), by virtue of beginning to receive a
7 retirement annuity under Article 15 of the Illinois Pension
8 Code, (2) has not made the election authorized under Section
9 15-135.1 of the Illinois Pension Code, and (3) is eligible to
10 participate in the basic program of group health benefits
11 provided for annuitants under this Act.
12 (b-7) "New TRS State annuitant" means a person who, on
13 or after July 1, 1998, becomes an annuitant, as defined in
14 subsection (b), by virtue of beginning to receive a
15 retirement annuity under Article 16 of the Illinois Pension
16 Code based on service as a teacher as defined in paragraph
17 (2), (3), or (5) of Section 16-106 of that Code, and is
18 eligible to participate in the basic program of group health
19 benefits provided for annuitants under this Act.
20 (c) "Carrier" means (1) an insurance company, a
21 corporation organized under the Limited Health Service
22 Organization Act or the Voluntary Health Services Plan Act, a
23 partnership, or other nongovernmental organization, which is
24 authorized to do group life or group health insurance
25 business in Illinois, or (2) the State of Illinois as a
26 self-insurer.
27 (d) "Compensation" means salary or wages payable on a
28 regular payroll by the State Treasurer on a warrant of the
29 State Comptroller out of any State, trust or federal fund, or
30 by the Governor of the State through a disbursing officer of
31 the State out of a trust or out of federal funds, or by any
32 Department out of State, trust, federal or other funds held
33 by the State Treasurer or the Department, to any person for
34 personal services currently performed, and ordinary or
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1 accidental disability benefits under Articles 2, 14, 15
2 (including ordinary or accidental disability benefits under
3 the optional retirement program established under Section
4 15-158.2), paragraphs (2), (3), or (5) of Section 16-106, or
5 Article 18 of the Illinois Pension Code, for disability
6 incurred after January 1, 1966, or benefits payable under the
7 Workers' Compensation or Occupational Diseases Act or
8 benefits payable under a sick pay plan established in
9 accordance with Section 36 of the State Finance Act.
10 "Compensation" also means salary or wages paid to an employee
11 of any qualified local government or qualified rehabilitation
12 facility or a qualified domestic violence shelter or service.
13 (e) "Commission" means the State Employees Group
14 Insurance Advisory Commission authorized by this Act.
15 Commencing July 1, 1984, "Commission" as used in this Act
16 means the Illinois Economic and Fiscal Commission as
17 established by the Legislative Commission Reorganization Act
18 of 1984.
19 (f) "Contributory", when referred to as contributory
20 coverage, shall mean optional coverages or benefits elected
21 by the member toward the cost of which such member makes
22 contribution, or which are funded in whole or in part through
23 the acceptance of a reduction in earnings or the foregoing of
24 an increase in earnings by an employee, as distinguished from
25 noncontributory coverage or benefits which are paid entirely
26 by the State of Illinois without reduction of the member's
27 salary.
28 (g) "Department" means any department, institution,
29 board, commission, officer, court or any agency of the State
30 government receiving appropriations and having power to
31 certify payrolls to the Comptroller authorizing payments of
32 salary and wages against such appropriations as are made by
33 the General Assembly from any State fund, or against trust
34 funds held by the State Treasurer and includes boards of
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1 trustees of the retirement systems created by Articles 2, 14,
2 15, 16 and 18 of the Illinois Pension Code. "Department"
3 also includes the Illinois Comprehensive Health Insurance
4 Board, the Board of Examiners established under the Illinois
5 Public Accounting Act, and the Illinois Finance Authority
6 Rural Bond Bank.
7 (h) "Dependent", when the term is used in the context of
8 the health and life plan, means a member's spouse and any
9 unmarried child (1) from birth to age 19 including an adopted
10 child, a child who lives with the member from the time of the
11 filing of a petition for adoption until entry of an order of
12 adoption, a stepchild or recognized child who lives with the
13 member in a parent-child relationship, or a child who lives
14 with the member if such member is a court appointed guardian
15 of the child, or (2) age 19 to 23 enrolled as a full-time
16 student in any accredited school, financially dependent upon
17 the member, and eligible to be claimed as a dependent for
18 income tax purposes, or (3) age 19 or over who is mentally or
19 physically handicapped. For the health plan only, the term
20 "dependent" also includes any person enrolled prior to the
21 effective date of this Section who is dependent upon the
22 member to the extent that the member may claim such person as
23 a dependent for income tax deduction purposes; no other such
24 person may be enrolled. For the health plan only, the term
25 "dependent" also includes any person who has received after
26 June 30, 2000 an organ transplant and who is financially
27 dependent upon the member and eligible to be claimed as a
28 dependent for income tax purposes.
29 (i) "Director" means the Director of the Illinois
30 Department of Central Management Services.
31 (j) "Eligibility period" means the period of time a
32 member has to elect enrollment in programs or to select
33 benefits without regard to age, sex or health.
34 (k) "Employee" means and includes each officer or
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1 employee in the service of a department who (1) receives his
2 compensation for service rendered to the department on a
3 warrant issued pursuant to a payroll certified by a
4 department or on a warrant or check issued and drawn by a
5 department upon a trust, federal or other fund or on a
6 warrant issued pursuant to a payroll certified by an elected
7 or duly appointed officer of the State or who receives
8 payment of the performance of personal services on a warrant
9 issued pursuant to a payroll certified by a Department and
10 drawn by the Comptroller upon the State Treasurer against
11 appropriations made by the General Assembly from any fund or
12 against trust funds held by the State Treasurer, and (2) is
13 employed full-time or part-time in a position normally
14 requiring actual performance of duty during not less than 1/2
15 of a normal work period, as established by the Director in
16 cooperation with each department, except that persons elected
17 by popular vote will be considered employees during the
18 entire term for which they are elected regardless of hours
19 devoted to the service of the State, and (3) except that
20 "employee" does not include any person who is not eligible by
21 reason of such person's employment to participate in one of
22 the State retirement systems under Articles 2, 14, 15 (either
23 the regular Article 15 system or the optional retirement
24 program established under Section 15-158.2) or 18, or under
25 paragraph (2), (3), or (5) of Section 16-106, of the Illinois
26 Pension Code, but such term does include persons who are
27 employed during the 6 month qualifying period under Article
28 14 of the Illinois Pension Code. Such term also includes any
29 person who (1) after January 1, 1966, is receiving ordinary
30 or accidental disability benefits under Articles 2, 14, 15
31 (including ordinary or accidental disability benefits under
32 the optional retirement program established under Section
33 15-158.2), paragraphs (2), (3), or (5) of Section 16-106, or
34 Article 18 of the Illinois Pension Code, for disability
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1 incurred after January 1, 1966, (2) receives total permanent
2 or total temporary disability under the Workers' Compensation
3 Act or Occupational Disease Act as a result of injuries
4 sustained or illness contracted in the course of employment
5 with the State of Illinois, or (3) is not otherwise covered
6 under this Act and has retired as a participating member
7 under Article 2 of the Illinois Pension Code but is
8 ineligible for the retirement annuity under Section 2-119 of
9 the Illinois Pension Code. However, a person who satisfies
10 the criteria of the foregoing definition of "employee" except
11 that such person is made ineligible to participate in the
12 State Universities Retirement System by clause (4) of
13 subsection (a) of Section 15-107 of the Illinois Pension Code
14 is also an "employee" for the purposes of this Act.
15 "Employee" also includes any person receiving or eligible for
16 benefits under a sick pay plan established in accordance with
17 Section 36 of the State Finance Act. "Employee" also includes
18 each officer or employee in the service of a qualified local
19 government, including persons appointed as trustees of
20 sanitary districts regardless of hours devoted to the service
21 of the sanitary district, and each employee in the service of
22 a qualified rehabilitation facility and each full-time
23 employee in the service of a qualified domestic violence
24 shelter or service, as determined according to rules
25 promulgated by the Director.
26 (l) "Member" means an employee, annuitant, retired
27 employee or survivor.
28 (m) "Optional coverages or benefits" means those
29 coverages or benefits available to the member on his or her
30 voluntary election, and at his or her own expense.
31 (n) "Program" means the group life insurance, health
32 benefits and other employee benefits designed and contracted
33 for by the Director under this Act.
34 (o) "Health plan" means a health benefits program
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1 offered by the State of Illinois for persons eligible for the
2 plan.
3 (p) "Retired employee" means any person who would be an
4 annuitant as that term is defined herein but for the fact
5 that such person retired prior to January 1, 1966. Such term
6 also includes any person formerly employed by the University
7 of Illinois in the Cooperative Extension Service who would be
8 an annuitant but for the fact that such person was made
9 ineligible to participate in the State Universities
10 Retirement System by clause (4) of subsection (a) of Section
11 15-107 of the Illinois Pension Code.
12 (q) "Survivor" means a person receiving an annuity as a
13 survivor of an employee or of an annuitant. "Survivor" also
14 includes: (1) the surviving dependent of a person who
15 satisfies the definition of "employee" except that such
16 person is made ineligible to participate in the State
17 Universities Retirement System by clause (4) of subsection
18 (a) of Section 15-107 of the Illinois Pension Code; and (2)
19 the surviving dependent of any person formerly employed by
20 the University of Illinois in the Cooperative Extension
21 Service who would be an annuitant except for the fact that
22 such person was made ineligible to participate in the State
23 Universities Retirement System by clause (4) of subsection
24 (a) of Section 15-107 of the Illinois Pension Code.
25 (q-5) "New SERS survivor" means a survivor, as defined
26 in subsection (q), whose annuity is paid under Article 14 of
27 the Illinois Pension Code and is based on the death of (i) an
28 employee whose death occurs on or after January 1, 1998, or
29 (ii) a new SERS annuitant as defined in subsection (b-5).
30 (q-6) "New SURS survivor" means a survivor, as defined
31 in subsection (q), whose annuity is paid under Article 15 of
32 the Illinois Pension Code and is based on the death of (i) an
33 employee whose death occurs on or after January 1, 1998, or
34 (ii) a new SURS annuitant as defined in subsection (b-6).
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1 (q-7) "New TRS State survivor" means a survivor, as
2 defined in subsection (q), whose annuity is paid under
3 Article 16 of the Illinois Pension Code and is based on the
4 death of (i) an employee who is a teacher as defined in
5 paragraph (2), (3), or (5) of Section 16-106 of that Code and
6 whose death occurs on or after July 1, 1998, or (ii) a new
7 TRS State annuitant as defined in subsection (b-7).
8 (r) "Medical services" means the services provided
9 within the scope of their licenses by practitioners in all
10 categories licensed under the Medical Practice Act of 1987.
11 (s) "Unit of local government" means any county,
12 municipality, township, school district (including a
13 combination of school districts under the Intergovernmental
14 Cooperation Act), special district or other unit, designated
15 as a unit of local government by law, which exercises limited
16 governmental powers or powers in respect to limited
17 governmental subjects, any not-for-profit association with a
18 membership that primarily includes townships and township
19 officials, that has duties that include provision of research
20 service, dissemination of information, and other acts for the
21 purpose of improving township government, and that is funded
22 wholly or partly in accordance with Section 85-15 of the
23 Township Code; any not-for-profit corporation or association,
24 with a membership consisting primarily of municipalities,
25 that operates its own utility system, and provides research,
26 training, dissemination of information, or other acts to
27 promote cooperation between and among municipalities that
28 provide utility services and for the advancement of the goals
29 and purposes of its membership; the Southern Illinois
30 Collegiate Common Market, which is a consortium of higher
31 education institutions in Southern Illinois; and the Illinois
32 Association of Park Districts. "Qualified local government"
33 means a unit of local government approved by the Director and
34 participating in a program created under subsection (i) of
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1 Section 10 of this Act.
2 (t) "Qualified rehabilitation facility" means any
3 not-for-profit organization that is accredited by the
4 Commission on Accreditation of Rehabilitation Facilities or
5 certified by the Department of Human Services (as successor
6 to the Department of Mental Health and Developmental
7 Disabilities) to provide services to persons with
8 disabilities and which receives funds from the State of
9 Illinois for providing those services, approved by the
10 Director and participating in a program created under
11 subsection (j) of Section 10 of this Act.
12 (u) "Qualified domestic violence shelter or service"
13 means any Illinois domestic violence shelter or service and
14 its administrative offices funded by the Department of Human
15 Services (as successor to the Illinois Department of Public
16 Aid), approved by the Director and participating in a program
17 created under subsection (k) of Section 10.
18 (v) "TRS benefit recipient" means a person who:
19 (1) is not a "member" as defined in this Section;
20 and
21 (2) is receiving a monthly benefit or retirement
22 annuity under Article 16 of the Illinois Pension Code;
23 and
24 (3) either (i) has at least 8 years of creditable
25 service under Article 16 of the Illinois Pension Code, or
26 (ii) was enrolled in the health insurance program offered
27 under that Article on January 1, 1996, or (iii) is the
28 survivor of a benefit recipient who had at least 8 years
29 of creditable service under Article 16 of the Illinois
30 Pension Code or was enrolled in the health insurance
31 program offered under that Article on the effective date
32 of this amendatory Act of 1995, or (iv) is a recipient or
33 survivor of a recipient of a disability benefit under
34 Article 16 of the Illinois Pension Code.
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1 (w) "TRS dependent beneficiary" means a person who:
2 (1) is not a "member" or "dependent" as defined in
3 this Section; and
4 (2) is a TRS benefit recipient's: (A) spouse, (B)
5 dependent parent who is receiving at least half of his or
6 her support from the TRS benefit recipient, or (C)
7 unmarried natural or adopted child who is (i) under age
8 19, or (ii) enrolled as a full-time student in an
9 accredited school, financially dependent upon the TRS
10 benefit recipient, eligible to be claimed as a dependent
11 for income tax purposes, and either is under age 24 or
12 was, on January 1, 1996, participating as a dependent
13 beneficiary in the health insurance program offered under
14 Article 16 of the Illinois Pension Code, or (iii) age 19
15 or over who is mentally or physically handicapped.
16 (x) "Military leave with pay and benefits" refers to
17 individuals in basic training for reserves, special/advanced
18 training, annual training, emergency call up, or activation
19 by the President of the United States with approved pay and
20 benefits.
21 (y) "Military leave without pay and benefits" refers to
22 individuals who enlist for active duty in a regular component
23 of the U.S. Armed Forces or other duty not specified or
24 authorized under military leave with pay and benefits.
25 (z) "Community college benefit recipient" means a person
26 who:
27 (1) is not a "member" as defined in this Section;
28 and
29 (2) is receiving a monthly survivor's annuity or
30 retirement annuity under Article 15 of the Illinois
31 Pension Code; and
32 (3) either (i) was a full-time employee of a
33 community college district or an association of community
34 college boards created under the Public Community College
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1 Act (other than an employee whose last employer under
2 Article 15 of the Illinois Pension Code was a community
3 college district subject to Article VII of the Public
4 Community College Act) and was eligible to participate in
5 a group health benefit plan as an employee during the
6 time of employment with a community college district
7 (other than a community college district subject to
8 Article VII of the Public Community College Act) or an
9 association of community college boards, or (ii) is the
10 survivor of a person described in item (i).
11 (aa) "Community college dependent beneficiary" means a
12 person who:
13 (1) is not a "member" or "dependent" as defined in
14 this Section; and
15 (2) is a community college benefit recipient's: (A)
16 spouse, (B) dependent parent who is receiving at least
17 half of his or her support from the community college
18 benefit recipient, or (C) unmarried natural or adopted
19 child who is (i) under age 19, or (ii) enrolled as a
20 full-time student in an accredited school, financially
21 dependent upon the community college benefit recipient,
22 eligible to be claimed as a dependent for income tax
23 purposes and under age 23, or (iii) age 19 or over and
24 mentally or physically handicapped.
25 (Source: P.A. 91-390, eff. 7-30-99; 91-395, eff. 7-30-99;
26 91-617, eff. 8-19-99; 92-16, eff. 6-28-01; 92-186, eff.
27 1-1-02; 92-204, eff. 8-1-01; 92-651, eff. 7-11-02.)
28 Section 890-43. The Build Illinois Act is amended by
29 changing Section 8-3 as follows:
30 (30 ILCS 750/8-3) (from Ch. 127, par. 2708-3)
31 Sec. 8-3. Powers of the Department. The Department has
32 the power to:
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1 (a) provide business development public infrastructure
2 loans or grants from appropriations from the Build Illinois
3 Bond Fund, the Build Illinois Purposes Fund, the Fund for
4 Illinois' Future, and the Public Infrastructure Construction
5 Loan Fund to local governments to provide or improve a
6 community's public infrastructure so as to create or retain
7 private sector jobs pursuant to the provisions of this
8 Article;
9 (b) provide affordable financing of public
10 infrastructure loans and grants to, or on behalf of, local
11 governments, local public entities, medical facilities, and
12 public health clinics from appropriations from the Public
13 Infrastructure Construction Loan Fund for the purpose of
14 assisting with the financing, or application and access to
15 financing, of a community's public infrastructure necessary
16 to health, safety, and economic development;
17 (c) enter into agreements, accept funds or grants, and
18 engage in cooperation with agencies of the federal
19 government, or state or local governments to carry out the
20 purposes of this Article, and to use funds appropriated
21 pursuant to this Article to participate in federal
22 infrastructure loan and grant programs upon such terms and
23 conditions as may be established by the federal government;
24 (d) establish application, notification, contract, and
25 other procedures, rules, or regulations deemed necessary and
26 appropriate to carry out the provisions of this Article;
27 (e) coordinate assistance under this program with
28 activities of the Illinois Development Finance Authority in
29 order to maximize the effectiveness and efficiency of State
30 development programs;
31 (f) coordinate assistance under the Affordable Financing
32 of Public Infrastructure Loan and Grant Program with the
33 activities of the Illinois Development Finance Authority,
34 Illinois Finance Authority Rural Bond Bank, Illinois Farm
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1 Development Authority, Illinois Housing Development
2 Authority, Illinois Environmental Protection Agency, and
3 other federal and State programs and entities providing
4 financing assistance to communities for public health,
5 safety, and economic development infrastructure;
6 (f-5) provide staff, administration, and related support
7 required to manage the programs authorized under this Article
8 and pay for the staffing, administration, and related support
9 from the Public Infrastructure Construction Loan Revolving
10 Fund;
11 (g) exercise such other powers as are necessary or
12 incidental to the foregoing.
13 (Source: P.A. 90-454, eff. 8-16-97; 91-34, eff. 7-1-99.)
14 Section 890-44. The Illinois Pension Code is amended by
15 changing Section 14-103.04 as follows:
16 (40 ILCS 5/14-103.04) (from Ch. 108 1/2, par. 14-103.04)
17 Sec. 14-103.04. Department. "Department": Any
18 department, institution, board, commission, officer, court,
19 or any agency of the State having power to certify payrolls
20 to the State Comptroller authorizing payments of salary or
21 wages against State appropriations, or against trust funds
22 held by the State Treasurer, except those departments
23 included under the term "employer" in the State Universities
24 Retirement System. "Department" includes the Illinois
25 Development Finance Authority. "Department" also includes
26 the Illinois Comprehensive Health Insurance Board and the
27 Illinois Finance Authority Rural Bond Bank.
28 (Source: P.A. 90-511, eff. 8-22-97.)
29 Section 890-90. The following Acts are repealed:
30 (20 ILCS 3505/Act rep.)
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1 The Illinois Development Finance Authority Act.
2 (20 ILCS 3605/Act rep.)
3 The Illinois Farm Development Act.
4 (20 ILCS 3705/Act rep.)
5 The Illinois Health Facilities Authority Act.
6 (20 ILCS 3850/Act rep.)
7 The Illinois Research Park Authority Act.
8 (30 ILCS 360/Act rep.)
9 The Rural Bond Bank Act.
10 (110 ILCS 1015/Act rep.)
11 The Illinois Educational Facilities Authority Act.
12 (315 ILCS 15/Act rep.)
13 The Illinois Community Development Finance Corporation
14 Act.
15 ARTICLE 999
16 Section 999-99. Effective date. This Act takes effect
17 on January 1, 2004.