Sen. Mike Jacobs
Filed: 3/9/2005
 
 

 




 

 		












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1

AMENDMENT TO SENATE BILL 1977 




2
    AMENDMENT NO. ______. Amend Senate Bill 1977 by replacing 
3
everything after the enacting clause with the following:

 
4
    "Section 5. The Quad Cities Regional Economic Development

5
Authority Act, approved September 22, 1987 is amended  by 
6
changing Section 9 as follows:
 



7
    (70 ILCS 510/9)  (from Ch. 85, par. 6209)



8
    Sec. 9. Bonds and notes. (a)(1) The Authority may, with the 
9
written
approval of the Governor, at any time and from time to 
10
time, issue bonds and
notes for any corporate purpose, 
11
including the establishment of reserves and
the payment of 
12
interest.  In this Act the term "bonds" includes notes of
any 
13
kind, interim certificates, refunding bonds or any other 
14
evidence of obligation.

15
    (2) The bonds of any issue shall be payable solely from the 
16
property or
receipts of the Authority, including, without 
17
limitation:

18
    (I) fees, charges or other revenues payable to the 
19
Authority;

20
    (II) payments by financial institutions, insurance 
21
companies, or others
pursuant to letters or lines of credit, 
22
policies of insurance, or purchase agreements;

23
    (III) investment earnings from funds or accounts 
24
maintained pursuant to
a bond resolution or trust agreement; 
 


 






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and

2
    (IV) proceeds of refunding bonds.

3
    (3) Bonds shall be authorized by a resolution of the 
4
Authority and may
be secured by a trust agreement by and 
5
between the Authority and a
corporate trustee or trustees, 
6
which may be any trust company or bank
having the powers of a 
7
trust company within or without the State.  Bonds shall:

8
    (I) be issued at, above or below par value, for cash or 
9
other valuable
consideration, and mature at time or times, 
10
whether as serial bonds or as
term bonds or both, not exceeding 
11
40 years from their respective date of
issue; however, the 
12
length of the term of the bond should bear a reasonable

13
relationship to the value life of the item financed;

14
    (II) bear interest at the fixed or variable rate or rates 
15
determined by
the method provided in the resolution or trust 
16
agreement;

17
    (III) be payable at a time or times, in the denominations 
18
and form,
either coupon or registered or both, and carry the 
19
registration and
privileges as to conversion and for the 
20
replacement of mutilated, lost or
destroyed bonds as the 
21
resolution or trust agreement may provide;

22
    (IV) be payable in lawful money of the United States at a 
23
designated place;

24
    (V) be subject to the terms of purchase, payment, 
25
redemption, refunding
or refinancing that the resolution or 
26
trust agreement provides;

27
    (VI) be executed by the manual or facsimile signatures of 
28
the officers
of the Authority designated by the Authority, 
29
which signatures shall be
valid at delivery even for one who 
30
has ceased to hold office; and

31
    (VII) be sold in the manner and upon the terms determined 
32
by the Authority.

33
    (b) Any resolution or trust agreement may contain 
34
provisions which shall
be a part of the contract with the 
 


 






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1
holders of the bonds as to:

2
    (1) pledging, assigning or directing the use, investment or 
3
disposition
of receipts of the Authority or proceeds or 
4
benefits of any contract and
conveying or otherwise securing 
5
any property or property rights;

6
    (2) the setting aside of loan funding deposits, debt 
7
service reserves,
capitalized interest accounts, cost of 
8
issuance accounts and sinking funds,
and the regulations, 
9
investment and disposition thereof;

10
    (3) limitations on the purpose to which or the investments 
11
in which the
proceeds of sale of any issue of bonds may be 
12
applied and restrictions to
investment of revenues or bond 
13
proceeds in government obligations for which
principal and 
14
interest are unconditionally guaranteed by the United States of 
15
America;

16
    (4) limitations on the issue of additional bonds, the terms 
17
upon which
additional bonds may be issued and secured, the 
18
terms upon which additional
bonds may rank on a parity with, or 
19
be subordinate or superior to, other bonds;

20
    (5) the refunding or refinancing of outstanding bonds;

21
    (6) the procedure, if any, by which the terms of any 
22
contract with
bondholders may be altered or amended and the 
23
amount of bonds and holders
of which must consent thereto, and 
24
the manner in which consent shall be given;

25
    (7) defining the acts or omissions which shall constitute a 
26
default in
the duties of the Authority to holders of bonds and 
27
providing the rights or
remedies of such holders in the event 
28
of a default which may include
provisions restricting 
29
individual right of action by bondholders;

30
    (8) providing for guarantees, pledges of property, letters 
31
of credit, or
other security, or insurance for the benefit of 
32
bondholders; and

33
    (9) any other matter relating to the bonds which the 
34
Authority determines appropriate.

 


 






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1
    (c) No member of the Authority nor any person executing the 
2
bonds shall
be liable personally on the bonds or subject to any 
3
personal liability by
reason of the issuance of the bonds.

4
    (d) The Authority may enter into agreements with agents, 
5
banks, insurers
or others for the purpose of enhancing the 
6
marketability of or as security for its bonds.

7
    (e)(1) A pledge by the Authority of revenues as security 
8
for an issue of
bonds shall be valid and binding from the time 
9
when the pledge is made.

10
    (2) The revenues pledged shall immediately be subject to 
11
the lien of the
pledge without any physical delivery or further 
12
act, and the lien of any
pledge shall be valid and binding 
13
against any person having any claim of
any kind in tort, 
14
contract or otherwise against the Authority, irrespective
of 
15
whether the person has notice.

16
    (3) No resolution, trust agreement or financing statement, 
17
continuation
statement, or other instrument adopted or entered 
18
into by the Authority
need be filed or recorded in any public 
19
record other than the records of
the authority in order to 
20
perfect the lien against third persons,
regardless of any 
21
contrary provision of law.

22
    (f) The Authority may issue bonds to refund any of its 
23
bonds then
outstanding, including the payment of any redemption 
24
premium and any
interest accrued or to accrue to the earliest 
25
or any subsequent date of
redemption, purchase or maturity of 
26
the bonds.  Refunding bonds may be
issued for the public 
27
purposes of realizing savings in the effective costs
of debt 
28
service, directly or through a debt restructuring, for 
29
alleviating
impending or actual default and may be issued in 
30
one or more series in an
amount in excess of that of the bonds 
31
to be refunded.

32
    (g) Bonds or notes of the Authority may be sold by the 
33
Authority through
the process of competitive bid or negotiated 
34
sale.

 


 






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1
    (h) At no time shall the total outstanding bonds and notes 
2
of the
Authority exceed $250 million
$100 million.

3
    (i) The bonds and notes of the Authority shall not be debts 
4
of the State.

5
    (j) In no event may proceeds of bonds or notes issued by 
6
the Authority
be used to finance any structure which is not 
7
constructed pursuant to an
agreement between the Authority and 
8
a party, which provides for the
delivery by the party of a 
9
completed structure constructed pursuant to a
fixed price 
10
contract, and which provides for the delivery of such structure

11
at such fixed price to be insured or guaranteed by a third 
12
party determined
by the Authority to be capable of completing 
13
construction of such a structure.

14
(Source: P.A. 85-713.)


 
15
    Section 10. The Quad Cities Regional Economic Development

16
Authority Act, certified December 30, 1987 is amended  by 
17
changing Section 9 as follows:
 



18
    (70 ILCS 515/9)  (from Ch. 85, par. 6509)


19
    Sec. 9. Bonds and notes. (a)(1) The Authority may, with the 
20
written
approval of the Governor, at any time and from time to 
21
time, issue bonds and
notes for any corporate purpose, 
22
including the establishment of reserves and
the payment of 
23
interest.  In this Act the term "bonds" includes notes of
any 
24
kind, interim certificates, refunding bonds or any other 
25
evidence of obligation.

26
    (2) The bonds of any issue shall be payable solely from the 
27
property or
receipts of the Authority, including, without 
28
limitation:

29
    (I) fees, charges or other revenues payable to the 
30
Authority;

31
    (II) payments by financial institutions, insurance 
32
companies, or others
pursuant to letters or lines of credit, 
 


 






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1
policies of insurance, or purchase agreements;

2
    (III) investment earnings from funds or accounts 
3
maintained pursuant to
a bond resolution or trust agreement; 
4
and

5
    (IV) proceeds of refunding bonds.

6
    (3) Bonds shall be authorized by a resolution of the 
7
Authority and may
be secured by a trust agreement by and 
8
between the Authority and a
corporate trustee or trustees, 
9
which may be any trust company or bank
having the powers of a 
10
trust company within or without the State.  Bonds shall:

11
    (I) be issued at, above or below par value, for cash or 
12
other valuable
consideration, and mature at time or times, 
13
whether as serial bonds or as
term bonds or both, not exceeding 
14
40 years from their respective date of
issue; however, the 
15
length of the term of the bond should bear a reasonable

16
relationship to the value life of the item financed;

17
    (II) bear interest at the fixed or variable rate or rates 
18
determined by
the method provided in the resolution or trust 
19
agreement;

20
    (III) be payable at a time or times, in the denominations 
21
and form,
either coupon or registered or both, and carry the 
22
registration and
privileges as to conversion and for the 
23
replacement of mutilated, lost or
destroyed bonds as the 
24
resolution or trust agreement may provide;

25
    (IV) be payable in lawful money of the United States at a 
26
designated place;

27
    (V) be subject to the terms of purchase, payment, 
28
redemption, refunding
or refinancing that the resolution or 
29
trust agreement provides;

30
    (VI) be executed by the manual or facsimile signatures of 
31
the officers
of the Authority designated by the Authority, 
32
which signatures shall be
valid at delivery even for one who 
33
has ceased to hold office; and

34
    (VII) be sold in the manner and upon the terms determined 
 


 






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1
by the Authority.

2
    (b) Any resolution or trust agreement may contain 
3
provisions which shall
be a part of the contract with the 
4
holders of the bonds as to:

5
    (1) pledging, assigning or directing the use, investment or 
6
disposition
of receipts of the Authority or proceeds or 
7
benefits of any contract and
conveying or otherwise securing 
8
any property or property rights;

9
    (2) the setting aside of loan funding deposits, debt 
10
service reserves,
capitalized interest accounts, cost of 
11
issuance accounts and sinking funds,
and the regulations, 
12
investment and disposition thereof;

13
    (3) limitations on the purpose to which or the investments 
14
in which the
proceeds of sale of any issue of bonds may be 
15
applied and restrictions to
investment of revenues or bond 
16
proceeds in government obligations for which
principal and 
17
interest are unconditionally guaranteed by the United States of 
18
America;

19
    (4) limitations on the issue of additional bonds, the terms 
20
upon which
additional bonds may be issued and secured, the 
21
terms upon which additional
bonds may rank on a parity with, or 
22
be subordinate or superior to, other bonds;

23
    (5) the refunding or refinancing of outstanding bonds;

24
    (6) the procedure, if any, by which the terms of any 
25
contract with
bondholders may be altered or amended and the 
26
amount of bonds and holders
of which must consent thereto, and 
27
the manner in which consent shall be given;

28
    (7) defining the acts or omissions which shall constitute a 
29
default in
the duties of the Authority to holders of bonds and 
30
providing the rights or
remedies of such holders in the event 
31
of a default which may include
provisions restricting 
32
individual right of action by bondholders;

33
    (8) providing for guarantees, pledges of property, letters 
34
of credit, or
other security, or insurance for the benefit of 
 


 






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1
bondholders; and

2
    (9) any other matter relating to the bonds which the 
3
Authority determines appropriate.

4
    (c) No member of the Authority nor any person executing the 
5
bonds shall
be liable personally on the bonds or subject to any 
6
personal liability by
reason of the issuance of the bonds.

7
    (d) The Authority may enter into agreements with agents, 
8
banks, insurers
or others for the purpose of enhancing the 
9
marketability of or as security for its bonds.

10
    (e)(1) A pledge by the Authority of revenues as security 
11
for an issue of
bonds shall be valid and binding from the time 
12
when the pledge is made.

13
    (2) The revenues pledged shall immediately be subject to 
14
the lien of the
pledge without any physical delivery or further 
15
act, and the lien of any
pledge shall be valid and binding 
16
against any person having any claim of
any kind in tort, 
17
contract or otherwise against the Authority, irrespective
of 
18
whether the person has notice.

19
    (3) No resolution, trust agreement or financing statement, 
20
continuation
statement, or other instrument adopted or entered 
21
into by the Authority
need be filed or recorded in any public 
22
record other than the records of
the authority in order to 
23
perfect the lien against third persons,
regardless of any 
24
contrary provision of law.

25
    (f) The Authority may issue bonds to refund any of its 
26
bonds then
outstanding, including the payment of any redemption 
27
premium and any
interest accrued or to accrue to the earliest 
28
or any subsequent date of
redemption, purchase or maturity of 
29
the bonds.  Refunding bonds may be
issued for the public 
30
purposes of realizing savings in the effective costs
of debt 
31
service, directly or through a debt restructuring, for 
32
alleviating
impending or actual default and may be issued in 
33
one or more series in an
amount in excess of that of the bonds 
34
to be refunded.

 


 






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1
    (g) Bonds or notes of the Authority may be sold by the 
2
Authority through
the process of competitive bid or negotiated 
3
sale.

4
    (h) At no time shall the total outstanding bonds and notes 
5
of the
Authority exceed $250 million
$100 million.

6
    (i) The bonds and notes of the Authority shall not be debts 
7
of the State.

8
    (j) In no event may proceeds of bonds or notes issued by 
9
the Authority
be used to finance any structure which is not 
10
constructed pursuant to an
agreement between the Authority and 
11
a party, which provides for the
delivery by the party of a 
12
completed structure constructed pursuant to a
fixed price 
13
contract, and which provides for the delivery of such structure

14
at such fixed price to be insured or guaranteed by a third 
15
party determined
by the Authority to be capable of completing 
16
construction of such a structure.

17
(Source: P.A. 85-988.)".