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1 | AN ACT concerning finance.
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2 | Be it enacted by the People of the State of Illinois,
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3 | represented in the General Assembly:
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4 | Section 5. The Illinois Finance Authority Act is amended by | ||||||||||||||||||||||||||||||
5 | changing Sections 801-25, 801-40, and 845-20 and by adding | ||||||||||||||||||||||||||||||
6 | Section 801-50 as follows:
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7 | (20 ILCS 3501/801-25)
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8 | Sec. 801-25. All official acts of the Authority shall | ||||||||||||||||||||||||||||||
9 | require the approval
of
a majority of the members then holding | ||||||||||||||||||||||||||||||
10 | office
at least 8 members . All meetings of the Authority and | ||||||||||||||||||||||||||||||
11 | the Advisory Councils
shall be conducted in accordance with the | ||||||||||||||||||||||||||||||
12 | Open Meetings Act. A majority
Eight members of the members then | ||||||||||||||||||||||||||||||
13 | holding office
Authority shall constitute a quorum. All | ||||||||||||||||||||||||||||||
14 | meetings shall
be conducted at a single location within this | ||||||||||||||||||||||||||||||
15 | State with a quorum of members physically present at this | ||||||||||||||||||||||||||||||
16 | location. Other members who are not physically present at this | ||||||||||||||||||||||||||||||
17 | location may participate in the meeting and vote on all matters | ||||||||||||||||||||||||||||||
18 | by means of a video or audio conference. The Auditor General | ||||||||||||||||||||||||||||||
19 | shall conduct financial audits
and program audits of the | ||||||||||||||||||||||||||||||
20 | Authority, in accordance with the Illinois State
Auditing Act.
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21 | (Source: P.A. 93-205, eff. 1-1-04; 93-1101, eff. 3-31-05.)
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22 | (20 ILCS 3501/801-40)
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1 | Sec. 801-40. In addition to the powers otherwise authorized | ||||||
2 | by law and in
addition to the foregoing general corporate | ||||||
3 | powers, the Authority shall also
have the following additional | ||||||
4 | specific powers to be exercised in furtherance of
the purposes | ||||||
5 | of this Act.
| ||||||
6 | (a) The Authority shall have power (i) to accept grants, | ||||||
7 | loans or
appropriations from the federal government or the | ||||||
8 | State, or any agency or
instrumentality thereof, to be used for | ||||||
9 | the operating expenses of the
Authority,
or for any purposes of | ||||||
10 | the Authority, including the making of direct loans of
such | ||||||
11 | funds with respect to projects, and (ii) to enter into any | ||||||
12 | agreement with
the federal government or the State, or any | ||||||
13 | agency or instrumentality thereof,
in relationship to such | ||||||
14 | grants, loans or appropriations.
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15 | (b) The Authority shall have power to procure and enter | ||||||
16 | into contracts for
any
type of insurance and indemnity | ||||||
17 | agreements covering loss or damage to property
from any cause, | ||||||
18 | including loss of use and occupancy, or covering any other
| ||||||
19 | insurable risk.
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20 | (c) The Authority shall have the continuing power to issue | ||||||
21 | bonds for its
corporate purposes. Bonds may be issued by the | ||||||
22 | Authority in one or more series
and may provide for the payment | ||||||
23 | of any interest deemed necessary on such bonds,
of the costs of | ||||||
24 | issuance of such bonds, of any premium on any insurance, or of
| ||||||
25 | the cost of any guarantees, letters of credit or other similar | ||||||
26 | documents, may
provide for the funding of the reserves deemed |
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1 | necessary in connection with
such bonds, and may provide for | ||||||
2 | the refunding or advance refunding of any bonds
or
for accounts | ||||||
3 | deemed necessary in connection with any purpose of the | ||||||
4 | Authority.
The bonds may bear interest payable at any time or | ||||||
5 | times and at any rate or
rates, notwithstanding any other | ||||||
6 | provision of law to the contrary, and such
rate or rates may be | ||||||
7 | established by an index or formula which may be
implemented or
| ||||||
8 | established by persons appointed or retained therefor by the | ||||||
9 | Authority, or may
bear no interest or may bear interest payable | ||||||
10 | at maturity or upon redemption
prior to maturity, may bear such | ||||||
11 | date or dates, may be payable at such time or
times and at such | ||||||
12 | place or places, may mature at any time or times not later
than | ||||||
13 | 40 years from the date of issuance, may be sold at public or | ||||||
14 | private sale
at such time or times and at such price or prices, | ||||||
15 | may be secured by such
pledges, reserves, guarantees, letters | ||||||
16 | of credit, insurance contracts or other
similar credit support | ||||||
17 | or liquidity instruments, may be executed in such
manner, may | ||||||
18 | be subject to redemption prior to maturity, may provide for the
| ||||||
19 | registration of the bonds, and may be subject to such other | ||||||
20 | terms and
conditions all as may
be provided by the resolution | ||||||
21 | or indenture authorizing the issuance of such
bonds. The holder | ||||||
22 | or holders of any bonds issued by the Authority may bring
suits | ||||||
23 | at law or proceedings in equity to compel the performance and | ||||||
24 | observance
by any person or by the Authority or any of its | ||||||
25 | agents or employees of any
contract or covenant made with the | ||||||
26 | holders of such bonds and to compel such
person or the |
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1 | Authority and any of its agents or employees to perform any
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2 | duties
required to be performed for the benefit of the holders | ||||||
3 | of any such bonds by
the provision of the resolution | ||||||
4 | authorizing their issuance, and to enjoin such
person or the | ||||||
5 | Authority and any of its agents or employees from taking any
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6 | action in conflict with any such contract or covenant.
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7 | Notwithstanding the form and tenor of any such bonds and in the | ||||||
8 | absence of any
express recital on the face thereof that it is | ||||||
9 | non-negotiable, all such bonds
shall be negotiable | ||||||
10 | instruments. Pending the preparation and execution of any
such | ||||||
11 | bonds, temporary bonds may be issued as provided by the | ||||||
12 | resolution.
The bonds shall be sold by the Authority in such | ||||||
13 | manner as it shall determine.
The bonds may be secured as | ||||||
14 | provided in the authorizing resolution by the
receipts, | ||||||
15 | revenues, income and other available funds of the Authority and | ||||||
16 | by
any amounts derived by the Authority from the loan agreement | ||||||
17 | or lease agreement
with respect to the project or projects; and | ||||||
18 | bonds may be issued as general
obligations of the Authority | ||||||
19 | payable from such revenues, funds and obligations
of the | ||||||
20 | Authority as the bond resolution shall provide, or may be | ||||||
21 | issued as
limited obligations with a claim for payment solely | ||||||
22 | from such revenues, funds
and obligations as the bond | ||||||
23 | resolution shall provide. The Authority may grant a
specific | ||||||
24 | pledge or assignment of and lien on or security interest in | ||||||
25 | such
rights, revenues, income, or amounts and may grant a | ||||||
26 | specific pledge or
assignment of and lien on or security |
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| |||||||
1 | interest in any reserves, funds or
accounts established in the | ||||||
2 | resolution authorizing the issuance of bonds. Any
such pledge, | ||||||
3 | assignment, lien or security interest for the benefit of the
| ||||||
4 | holders of the Authority's bonds shall be valid and binding | ||||||
5 | from the time the
bonds are issued without any physical | ||||||
6 | delivery or further act, and shall be
valid and binding as | ||||||
7 | against and prior to the claims of all other parties
having | ||||||
8 | claims against the Authority or any other person irrespective | ||||||
9 | of whether
the
other parties have notice of the pledge, | ||||||
10 | assignment, lien or security interest.
As evidence of such | ||||||
11 | pledge, assignment, lien and security interest, the
Authority | ||||||
12 | may execute and deliver a mortgage, trust agreement, indenture | ||||||
13 | or
security agreement or an assignment thereof.
A remedy for | ||||||
14 | any breach or default of the terms of any such agreement by the
| ||||||
15 | Authority may be by mandamus proceedings in any court of | ||||||
16 | competent jurisdiction
to compel the performance and | ||||||
17 | compliance therewith, but the agreement may
prescribe by whom | ||||||
18 | or on whose behalf such action may be instituted.
It is | ||||||
19 | expressly understood that the Authority may, but need not, | ||||||
20 | acquire title
to any project with respect to which it exercises | ||||||
21 | its authority.
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22 | (d) With respect to the powers granted by this Act, the | ||||||
23 | Authority may adopt
rules and regulations prescribing the | ||||||
24 | procedures by which persons may apply for
assistance under this | ||||||
25 | Act. Nothing herein shall be deemed to preclude the
Authority, | ||||||
26 | prior to the filing of any formal application, from conducting
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1 | preliminary discussions and investigations with respect to the | ||||||
2 | subject matter
of any prospective application.
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3 | (e) The Authority shall have power to acquire by purchase, | ||||||
4 | lease, gift or
otherwise any property or rights therein from | ||||||
5 | any person useful for its
purposes, whether improved for the | ||||||
6 | purposes of any prospective project, or
unimproved. The | ||||||
7 | Authority may also accept any donation of funds for its
| ||||||
8 | purposes from any such source. The Authority shall have no | ||||||
9 | independent power of
condemnation but may acquire any property | ||||||
10 | or rights therein obtained upon
condemnation by any other | ||||||
11 | authority, governmental entity or unit of local
government with | ||||||
12 | such power.
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13 | (f) The Authority shall have power to develop, construct | ||||||
14 | and improve either
under its own direction, or through | ||||||
15 | collaboration with any approved applicant,
or to acquire | ||||||
16 | through purchase or otherwise, any project, using for such
| ||||||
17 | purpose the proceeds derived from the sale of its bonds or from | ||||||
18 | governmental
loans or
grants, and to hold title in the name of | ||||||
19 | the Authority to such projects.
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20 | (g) The Authority shall have power to lease pursuant to a | ||||||
21 | lease agreement
any
project so developed and constructed or | ||||||
22 | acquired to the approved tenant on such
terms and conditions as | ||||||
23 | may be appropriate to further the purposes of this Act
and to | ||||||
24 | maintain the credit of the Authority. Any such lease may | ||||||
25 | provide for
either the Authority or the approved tenant to | ||||||
26 | assume initially, in whole or in
part, the costs of |
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1 | maintenance, repair and improvements during the leasehold
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2 | period. In no case, however, shall the total rentals from any | ||||||
3 | project during
any initial leasehold period or the total loan | ||||||
4 | repayments to be made pursuant
to any loan agreement, be less | ||||||
5 | than an amount necessary to return over such
lease
or loan | ||||||
6 | period (1) all costs incurred in connection with the | ||||||
7 | development,
construction, acquisition or improvement of the | ||||||
8 | project and for repair,
maintenance and improvements thereto | ||||||
9 | during the period of the lease or loan;
provided, however, that | ||||||
10 | the rentals or loan repayments need not include costs
met | ||||||
11 | through the use of funds other than those obtained by the | ||||||
12 | Authority through
the issuance of its bonds or governmental | ||||||
13 | loans; (2) a reasonable percentage
additive to be agreed upon | ||||||
14 | by the Authority and the borrower or tenant to cover
a properly | ||||||
15 | allocable portion of the Authority's general expenses, | ||||||
16 | including,
but not limited to, administrative expenses, | ||||||
17 | salaries and general insurance,
and
(3) an amount sufficient to | ||||||
18 | pay when due all principal of, interest and
premium, if
any on, | ||||||
19 | any bonds issued by the Authority with respect to the project. | ||||||
20 | The
portion of total rentals payable under clause (3) of this | ||||||
21 | subsection (g) shall
be deposited in such special accounts, | ||||||
22 | including all sinking funds, acquisition
or construction | ||||||
23 | funds, debt service and other funds as provided by any
| ||||||
24 | resolution, mortgage or trust agreement of the Authority | ||||||
25 | pursuant to which any
bond is issued.
| ||||||
26 | (h) The Authority has the power, upon the termination of |
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1 | any leasehold
period
of any project, to sell or lease for a | ||||||
2 | further term or terms such project on
such terms and conditions | ||||||
3 | as the Authority shall deem reasonable and consistent
with the | ||||||
4 | purposes of the Act. The net proceeds from all such sales and | ||||||
5 | the
revenues or income from such leases shall be used to | ||||||
6 | satisfy any indebtedness
of
the Authority with respect to such | ||||||
7 | project and any balance may be used to pay
any expenses of the | ||||||
8 | Authority or be used for the further development,
construction, | ||||||
9 | acquisition or improvement of projects.
In the event any | ||||||
10 | project is vacated by a tenant prior to the termination of the
| ||||||
11 | initial leasehold period, the Authority shall sell or lease the | ||||||
12 | facilities of
the project on the most advantageous terms | ||||||
13 | available. The net proceeds of any
such disposition shall be | ||||||
14 | treated in the same manner as the proceeds from sales
or the | ||||||
15 | revenues or income from leases subsequent to the termination of | ||||||
16 | any
initial leasehold period.
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17 | (i) The Authority shall have the power to make loans to | ||||||
18 | persons to finance a
project, to enter into loan agreements | ||||||
19 | with respect thereto, and to accept
guarantees from persons of | ||||||
20 | its loans or the resultant evidences of obligations
of the | ||||||
21 | Authority.
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22 | (j) The Authority may fix, determine, charge and collect | ||||||
23 | any premiums, fees,
charges, costs and expenses, including, | ||||||
24 | without limitation, any application
fees, commitment fees, | ||||||
25 | program fees, financing charges or publication fees from
any | ||||||
26 | person in connection with its activities under this Act.
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1 | (k) In addition to the funds established as provided | ||||||
2 | herein, the Authority
shall have the power to create and | ||||||
3 | establish such reserve funds and accounts as
may be necessary | ||||||
4 | or desirable to accomplish its purposes under this Act and to
| ||||||
5 | deposit its available monies into the funds and accounts.
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6 | (l) At the request of the governing body of any unit of | ||||||
7 | local government,
the
Authority is authorized to market such | ||||||
8 | local government's revenue bond
offerings by preparing bond | ||||||
9 | issues for sale, advertising for sealed bids,
receiving bids
at | ||||||
10 | its offices, making the award to the bidder that offers the | ||||||
11 | most favorable
terms or arranging for negotiated placements or | ||||||
12 | underwritings of such
securities. The Authority may, at its | ||||||
13 | discretion, offer for concurrent sale the
revenue bonds of | ||||||
14 | several local governments. Sales by the Authority of revenue
| ||||||
15 | bonds under this Section shall in no way imply State guarantee | ||||||
16 | of such debt
issue. The Authority may require such financial | ||||||
17 | information from participating
local governments as it deems | ||||||
18 | necessary in order to carry out the purposes of
this subsection | ||||||
19 | (1).
| ||||||
20 | (m) The Authority may make grants to any county to which | ||||||
21 | Division 5-37 of
the
Counties Code is applicable to assist in | ||||||
22 | the financing of capital development,
construction and | ||||||
23 | renovation of new or existing facilities for hospitals and
| ||||||
24 | health care facilities under that Act. Such grants may only be | ||||||
25 | made from funds
appropriated for such purposes from the Build | ||||||
26 | Illinois Bond Fund.
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1 | (n) The Authority may establish an urban development action | ||||||
2 | grant program
for
the purpose of assisting municipalities in | ||||||
3 | Illinois which are experiencing
severe economic distress to | ||||||
4 | help stimulate economic development activities
needed to aid in | ||||||
5 | economic recovery. The Authority shall determine the types of
| ||||||
6 | activities and projects for which the urban development action | ||||||
7 | grants may be
used, provided that such projects and activities | ||||||
8 | are broadly defined to include
all reasonable projects and | ||||||
9 | activities the primary objectives of which are the
development | ||||||
10 | of viable urban communities, including decent housing and a
| ||||||
11 | suitable living environment, and expansion of economic | ||||||
12 | opportunity, principally
for
persons of low and moderate | ||||||
13 | incomes. The Authority shall enter into grant
agreements from | ||||||
14 | monies appropriated for such purposes from the Build Illinois
| ||||||
15 | Bond Fund. The Authority shall monitor the
use of the grants, | ||||||
16 | and shall provide for audits of the funds as well as
recovery | ||||||
17 | by the Authority of any funds determined to have been spent in
| ||||||
18 | violation of this
subsection (n) or any rule or regulation | ||||||
19 | promulgated hereunder. The Authority
shall provide technical | ||||||
20 | assistance with regard to the effective use of the
urban | ||||||
21 | development action grants. The Authority shall file an annual | ||||||
22 | report to
the
General Assembly concerning the progress of the | ||||||
23 | grant program.
| ||||||
24 | (o) The Authority may establish a Housing Partnership | ||||||
25 | Program whereby the
Authority provides zero-interest loans to | ||||||
26 | municipalities for the purpose of
assisting in the financing of |
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1 | projects for the rehabilitation of affordable
multi-family | ||||||
2 | housing for low and moderate income residents. The Authority | ||||||
3 | may
provide such loans only upon a municipality's providing | ||||||
4 | evidence that it has
obtained private funding for the | ||||||
5 | rehabilitation project. The Authority shall
provide 3 State | ||||||
6 | dollars for every 7 dollars obtained by the municipality from
| ||||||
7 | sources other than the State of Illinois. The loans shall be | ||||||
8 | made from monies
appropriated for such purpose from the Build | ||||||
9 | Illinois Bond Fund. The total amount of loans available under | ||||||
10 | the Housing
Partnership Program shall not exceed $30,000,000. | ||||||
11 | State loan monies under this
subsection shall be used only for | ||||||
12 | the acquisition and rehabilitation of
existing
buildings | ||||||
13 | containing 4 or more dwelling units. The terms of any loan made | ||||||
14 | by
the municipality under this subsection shall require | ||||||
15 | repayment of the loan to
the municipality upon any sale or | ||||||
16 | other transfer of the project.
| ||||||
17 | (p) The Authority may award grants to universities and | ||||||
18 | research
institutions,
research consortiums and other | ||||||
19 | not-for-profit entities for the purposes of:
remodeling or | ||||||
20 | otherwise physically altering existing laboratory or research
| ||||||
21 | facilities, expansion or physical additions to existing | ||||||
22 | laboratory or research
facilities, construction of new | ||||||
23 | laboratory or research facilities or
acquisition of modern | ||||||
24 | equipment to support laboratory or research operations
| ||||||
25 | provided that
such grants (i) be used solely in support of | ||||||
26 | project and equipment acquisitions
which enhance technology |
| |||||||
| |||||||
1 | transfer, and (ii) not constitute more than 60 percent
of the | ||||||
2 | total project or acquisition cost.
| ||||||
3 | (q) Grants may be awarded by the Authority to units of | ||||||
4 | local government for
the
purpose of developing the appropriate | ||||||
5 | infrastructure or defraying other costs
to
the local government | ||||||
6 | in support of laboratory or research facilities provided
that | ||||||
7 | such grants may not exceed 40% of the cost to the unit of local
| ||||||
8 | government.
| ||||||
9 | (r) The Authority may establish a Direct Loan Program to | ||||||
10 | make loans to
individuals, partnerships or corporations for the | ||||||
11 | purpose of an industrial
project, as defined in
Section 801-10 | ||||||
12 | of this Act. For the purposes of such program
and not by way of | ||||||
13 | limitation on any other program of the Authority, the
Authority | ||||||
14 | shall have the power to issue bonds, notes, or other evidences | ||||||
15 | of
indebtedness including commercial paper for purposes of | ||||||
16 | providing a fund of
capital from which it may make such loans. | ||||||
17 | The Authority shall have the power
to use any appropriations | ||||||
18 | from the State made especially for the Authority's
Direct Loan | ||||||
19 | Program for additional capital to make such loans or for the
| ||||||
20 | purposes of reserve funds or pledged funds which secure the | ||||||
21 | Authority's
obligations of repayment of any bond, note or other | ||||||
22 | form of indebtedness
established for the purpose of providing | ||||||
23 | capital for which it intends to make
such loans under the | ||||||
24 | Direct Loan Program. For the purpose of obtaining such
capital, | ||||||
25 | the Authority may also enter into agreements with financial
| ||||||
26 | institutions and other persons for the purpose of selling loans |
| |||||||
| |||||||
1 | and developing
a secondary market for such loans.
Loans made | ||||||
2 | under the Direct Loan Program may be in an amount not to exceed
| ||||||
3 | $300,000 and shall be made for a portion of an industrial | ||||||
4 | project which does
not exceed 50% of the total project. No loan | ||||||
5 | may be made by the Authority
unless
approved by the affirmative | ||||||
6 | vote of at least 8 members of the board. The
Authority shall | ||||||
7 | establish procedures and publish rules which shall provide for
| ||||||
8 | the submission, review, and analysis of each direct loan | ||||||
9 | application and which
shall preserve the ability of each board | ||||||
10 | member to reach an individual business
judgment regarding the | ||||||
11 | propriety of making each direct loan. The collective
discretion | ||||||
12 | of the board to approve or disapprove each loan shall be
| ||||||
13 | unencumbered.
The Authority may establish and collect such fees | ||||||
14 | and charges, determine and
enforce such terms and conditions, | ||||||
15 | and charge such interest rates as it
determines to be necessary | ||||||
16 | and appropriate to the successful administration of
the Direct | ||||||
17 | Loan Program. The Authority may require such interests in | ||||||
18 | collateral
and such guarantees as it determines are necessary | ||||||
19 | to project the Authority's
interest in the repayment of the | ||||||
20 | principal and interest of each loan made under
the Direct Loan | ||||||
21 | Program.
| ||||||
22 | (s) The Authority may guarantee private loans to third | ||||||
23 | parties up to a
specified dollar amount in order to promote | ||||||
24 | economic development in this State.
| ||||||
25 | (t) The Authority may adopt rules and regulations as may be | ||||||
26 | necessary or
advisable to implement the powers conferred by |
| |||||||
| |||||||
1 | this Act.
| ||||||
2 | (u) The Authority shall have the power to issue bonds, | ||||||
3 | notes or other
evidences
of indebtedness, which may be used to | ||||||
4 | make loans to units of local government
which are authorized to | ||||||
5 | enter into loan agreements and other documents and to
issue | ||||||
6 | bonds, notes and other evidences of indebtedness for the | ||||||
7 | purpose of
financing the protection of storm sewer outfalls, | ||||||
8 | the construction of adequate
storm sewer outfalls, and the | ||||||
9 | provision for flood protection of sanitary sewage
treatment | ||||||
10 | plans, in counties that have established a stormwater | ||||||
11 | management
planning committee in accordance with
Section | ||||||
12 | 5-1062 of the Counties Code. Any
such loan shall be made by the | ||||||
13 | Authority pursuant to the provisions of
Section
820-5 to 820-60 | ||||||
14 | of this Act. The unit of local government shall pay back to the
| ||||||
15 | Authority the principal amount of the loan, plus annual | ||||||
16 | interest as determined
by the Authority. The Authority shall | ||||||
17 | have the power, subject to appropriations
by the General | ||||||
18 | Assembly, to subsidize or buy down a portion of the interest on
| ||||||
19 | such loans, up to 4% per annum.
| ||||||
20 | (v) The Authority may accept security interests as provided | ||||||
21 | in
Sections 11-3
and 11-3.3 of the Illinois Public Aid Code.
| ||||||
22 | (w) Moral Obligation. In the event that the Authority | ||||||
23 | determines that monies
of the Authority will not be sufficient | ||||||
24 | for the payment of the principal of and
interest on its bonds | ||||||
25 | during the next State fiscal year, the Chairperson, as
soon as | ||||||
26 | practicable, shall certify to the Governor the amount required |
| |||||||
| |||||||
1 | by the
Authority to enable it to pay such principal of and | ||||||
2 | interest on the bonds. The
Governor shall submit the amount so | ||||||
3 | certified to the General Assembly as soon
as
practicable, but | ||||||
4 | no later than the end of the current State fiscal year. This
| ||||||
5 | subsection shall apply only to any bonds or notes as to which | ||||||
6 | the Authority
shall have determined, in the resolution | ||||||
7 | authorizing the issuance of the bonds
or notes, that this | ||||||
8 | subsection shall apply. Whenever the Authority makes such a
| ||||||
9 | determination, that fact shall be plainly stated on the face of | ||||||
10 | the bonds or
notes and that fact shall also be reported to the | ||||||
11 | Governor. In the event of a
withdrawal of moneys from a reserve | ||||||
12 | fund established with respect to any issue
or issues of bonds | ||||||
13 | of the Authority to pay principal or interest on those
bonds,
| ||||||
14 | the Chairperson of the Authority, as soon as practicable, shall | ||||||
15 | certify to the
Governor the amount required to restore the | ||||||
16 | reserve fund to the level required
in the resolution or | ||||||
17 | indenture securing those bonds. The Governor shall submit
the | ||||||
18 | amount so certified to the General Assembly as soon as | ||||||
19 | practicable, but no
later than the end of the current State | ||||||
20 | fiscal year. The Authority shall obtain
written approval from | ||||||
21 | the Governor for any bonds and notes to be issued under
this | ||||||
22 | Section.
In addition to any other bonds authorized to be issued | ||||||
23 | under
Sections 825-60, 825-65(e), 830-25 and 845-5, the | ||||||
24 | principal amount of Authority
bonds outstanding
issued under | ||||||
25 | this
Section 801-40(w) or under 20 ILCS 3850/1-80 or 30 ILCS | ||||||
26 | 360/2-6(c), which have
been
assumed by the Authority, shall not |
| |||||||
| |||||||
1 | exceed $150,000,000.
| ||||||
2 | (x) The Authority may enter into agreements or contracts | ||||||
3 | with any person necessary or appropriate to place the payment | ||||||
4 | obligations of the Authority under any of its bonds in whole or | ||||||
5 | in part on any interest rate basis, cash flow basis, or other | ||||||
6 | basis desired by the Authority, including without limitation | ||||||
7 | agreements or contracts commonly known as "interest rate swap | ||||||
8 | agreements", "forward payment conversion agreements", and | ||||||
9 | "futures", or agreements or contracts to exchange cash flows or | ||||||
10 | a series of payments, or agreements or contracts, including | ||||||
11 | without limitation agreements or contracts commonly known as | ||||||
12 | "options", "puts", or "calls", to hedge payment, rate spread, | ||||||
13 | or similar exposure; provided that any such agreement or | ||||||
14 | contract shall not constitute an obligation for borrowed money | ||||||
15 | and shall not be taken into account under Section 845-5 of this | ||||||
16 | Act or any other debt limit of the Authority or the State of | ||||||
17 | Illinois.
| ||||||
18 | (Source: P.A. 93-205, eff. 1-1-04; 94-91, eff. 7-1-05.)
| ||||||
19 | (20 ILCS 3501/801-50 new) | ||||||
20 | Sec. 801-50. Pledge of revenues by the Authority; | ||||||
21 | non-impairment. Any pledge of revenues or other moneys made by | ||||||
22 | the Authority shall be binding from the time the pledge is | ||||||
23 | made. Revenues and other moneys so pledged shall be held | ||||||
24 | outside of the State treasury and in the custody of either the | ||||||
25 | Treasurer of the Authority or a trustee or a depository |
| |||||||
| |||||||
1 | appointed by the Authority. Revenues or other moneys so pledged | ||||||
2 | and thereafter received by the Authority or trustee or | ||||||
3 | depository shall immediately be subject to the lien of the | ||||||
4 | pledge without any physical delivery thereof or further act, | ||||||
5 | and the lien of any pledge shall be binding against all parties | ||||||
6 | having claims of any kind in tort, contract, or otherwise | ||||||
7 | against the Authority, irrespective of whether the parties have | ||||||
8 | notice thereof. Neither the resolution nor any other instrument | ||||||
9 | by which a pledge is created need be filed or recorded except | ||||||
10 | in the records of the Authority. The State pledges and agrees | ||||||
11 | with the holders of bonds or other obligations of the Authority | ||||||
12 | that the State will not limit or restrict the rights hereby | ||||||
13 | vested in the Authority to purchase, acquire, hold, sell, or | ||||||
14 | dispose of investments or to establish and collect such fees or | ||||||
15 | other charges as may be convenient or necessary to produce | ||||||
16 | sufficient revenues to meet the expenses of operation to the | ||||||
17 | Authority, and to fulfill the terms of any agreement made with | ||||||
18 | the holders of the bonds or other obligations of the Authority | ||||||
19 | or in any way impair the rights or remedies of the holders of | ||||||
20 | those bonds or other obligations of the Authority until such | ||||||
21 | bonds or other obligations are fully paid and discharged or | ||||||
22 | provision for their payment has been made.
| ||||||
23 | (20 ILCS 3501/845-40)
| ||||||
24 | Sec. 845-40. The Authority shall appoint a secretary and | ||||||
25 | treasurer, who
may,
but need not, be a member or members of the |
| |||||||
| |||||||
1 | Authority to hold office during the
pleasure of the Authority. | ||||||
2 | Before entering upon the duties of the respective
offices such | ||||||
3 | person or persons shall take and subscribe to the | ||||||
4 | constitutional
oath of office, and the treasurer shall execute | ||||||
5 | a bond with corporate sureties
to be approved by the Authority. | ||||||
6 | The bond shall be payable to the Authority in
whatever penal | ||||||
7 | sum may be directed by the Authority conditioned upon the
| ||||||
8 | faithful performance of the duties of the office and the | ||||||
9 | payment of all money
received by him according to law and the | ||||||
10 | orders of the Authority. The Authority
may, at any time, | ||||||
11 | require a new bond from the treasurer in such penal sum as
may
| ||||||
12 | then be determined by the Authority. The obligation of the | ||||||
13 | sureties shall not
extend to any loss sustained by the | ||||||
14 | insolvency, failure or closing of any
savings and loan | ||||||
15 | association or national or state bank wherein the treasurer
has
| ||||||
16 | deposited funds if the bank or savings and loan association has | ||||||
17 | been approved
by
the Authority as a depository for these funds. | ||||||
18 | The oaths of office and the
treasurer's bond shall be filed in | ||||||
19 | the 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, |
| |||||||
| |||||||
1 | resolution, grant agreement, lease agreement,
loan agreement, | ||||||
2 | indenture, mortgage or trust agreement or other agreement, may
| ||||||
3 | be held by the Authority in its treasury and be generally | ||||||
4 | available for
expenditure by the Authority for any of the | ||||||
5 | purposes authorized by this Act. In
addition to investments | ||||||
6 | authorized by
Section 2 of
the Public Funds Investment Act, | ||||||
7 | funds of the Authority may be invested in (a)
obligations | ||||||
8 | issued by
any
State, unit of local government or school | ||||||
9 | district which obligations are rated
at the time of purchase by | ||||||
10 | a national rating service within the two highest
rating | ||||||
11 | classifications without regard to any rating refinement or | ||||||
12 | gradation by
numerical or other modifier, or (b) equity | ||||||
13 | securities of an investment company
registered under the | ||||||
14 | Investment Company Act of 1940 whose sole assets, other
than | ||||||
15 | cash and other temporary investments, are obligations which are | ||||||
16 | eligible
investments for the Authority, provided that not more | ||||||
17 | than 20% of the assets of
the investment company may consist of | ||||||
18 | unrated obligations of the type described
in clause (a) which | ||||||
19 | the Board of Directors of the investment company has
determined | ||||||
20 | to be of comparable quality to rated obligations described in | ||||||
21 | clause
(a). Funds appropriated by the General Assembly to the | ||||||
22 | Authority shall be held
in the
State treasury unless this Act | ||||||
23 | or the Act making the appropriation specifically
states that | ||||||
24 | the monies are to be held in or appropriated to the Authority's
| ||||||
25 | treasury.
Such funds as are authorized to be held in the | ||||||
26 | Authority's treasury and
deposited in any bank or savings and |
| |||||||
| |||||||
1 | loan association and placed in the name of
the Authority shall | ||||||
2 | be withdrawn or paid out only by check or draft upon the
bank | ||||||
3 | or savings and loan association, signed by the treasurer and | ||||||
4 | countersigned
by the Chairperson or the Executive Director of | ||||||
5 | the Authority. The Authority may designate any of its
members | ||||||
6 | or any officer or employee of the Authority to affix the | ||||||
7 | signature of
the Chairperson and another to affix the signature | ||||||
8 | of the treasurer to any
check
or draft for payment of salaries | ||||||
9 | or wages and for payment of any other
obligations of not more | ||||||
10 | than $2,500.
In case any officer whose signature appears upon | ||||||
11 | any check or draft, issued
pursuant to this Act, ceases to hold | ||||||
12 | his office before the delivery thereof to
the payee, his | ||||||
13 | signature nevertheless shall be valid and sufficient for all
| ||||||
14 | purposes with the same effect as if he had remained in office | ||||||
15 | until delivery
thereof.
No bank or savings and loan association | ||||||
16 | shall receive public funds as permitted
by this
Section, unless | ||||||
17 | it has complied with the requirements established
pursuant to
| ||||||
18 | Section 6 of the Public Funds Investment Act.
| ||||||
19 | (Source: P.A. 93-205, eff. 1-1-04.)
|