Sen. A. J. Wilhelmi

Filed: 3/15/2010

 

 


 

 


 
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1
AMENDMENT TO SENATE BILL 388

2     AMENDMENT NO. ______. Amend Senate Bill 388 by replacing
3 everything after the enacting clause with the following:
 
4     "Section 5. The Illinois Finance Authority Act is amended
5 by changing Section 825-90 as follows:
 
6     (20 ILCS 3501/825-90)
7     Sec. 825-90. Illinois Power Agency Bonds.
8     (a) In this Section:
9     "Agency" means the Illinois Power Agency.
10     "Agency loan agreement" means any agreement pursuant to
11 which the Illinois Finance Authority agrees to loan the
12 proceeds of its revenue bonds issued with respect to a specific
13 Illinois Power Agency project to the Illinois Power Agency upon
14 terms providing for loan repayment installments at least
15 sufficient to pay when due all principal of, interest and
16 premium, if any, on any revenue bonds of the Authority, if any,

 

 

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1 issued with respect to the Illinois Power Agency project, and
2 providing for maintenance, insurance, and other matters as may
3 be deemed desirable by the Authority.
4     "Authority" means the Illinois Finance Authority.
5     "Director" means the Director of the Illinois Power Agency.
6     "Facility" means an electric generating unit or a
7 co-generating unit that produces electricity along with
8 related equipment necessary to connect the facility to an
9 electric transmission or distribution system.
10     "Governmental aggregator" means one or more units of local
11 government that individually or collectively procures
12 electricity to serve residential retail electrical loads
13 located within its or their jurisdiction.
14     "Local government" means a unit of local government as
15 defined in Section 1 of Article VII of the Illinois
16 Constitution of 1970.
17     "Project" means any project as defined in the Illinois
18 Power Agency Act.
19     "Real property" means any interest in land, together with
20 all structures, fixtures, and improvements thereon, including
21 lands under water and riparian rights, any easements,
22 covenants, licenses, leases, rights-of-way, uses, and other
23 interests, together with any liens, judgments, mortgages, or
24 other claims or security interests related to real property.
25     "Revenue bond" means any bond, note, or other evidence of
26 indebtedness issued by the Illinois Finance Authority on behalf

 

 

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1 of the Illinois Power Agency, the principal and interest of
2 which is payable solely from revenues or income derived from
3 any project or activity of the Agency.
4     (b) Powers and duties; Illinois Power Agency Program. The
5 Authority has the power:
6         (1) To accept from time to time pursuant to an Agency
7     loan agreement any pledge or a pledge agreement by the
8     Agency subject to the requirements and limitations of the
9     Illinois Power Agency Act.
10         (2) To issue revenue bonds in one or more series
11     pursuant to one or more resolutions of the Authority to
12     loan funds to the Agency pursuant to one or more Agency
13     loan agreements meeting the requirements of the Illinois
14     Power Agency Act and providing for the payment of any
15     interest deemed necessary on those revenue bonds, paying
16     for the cost of issuance of those revenue bonds, providing
17     for the payment of the cost of any guarantees, letters of
18     credit, insurance contracts or other similar credit
19     support or liquidity instruments, or providing for the
20     funding of any reserves deemed necessary in connection with
21     those revenue bonds and refunding or advance refunding of
22     any such revenue bonds and the interest and any premium
23     thereon, pursuant to this Act. Authority for the agreements
24     shall conform to the requirements of the Illinois Power
25     Agency Act. The Authority may issue up to $4,000,000,000
26     aggregate principal amount of revenue bonds, the net

 

 

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1     proceeds of which shall be loaned to the Agency pursuant to
2     one or more Agency loan agreements. No revenue bonds issued
3     to refund or advance refund revenue bonds issued under this
4     Section may mature later than the longest maturity date of
5     the series of bonds being refunded. After the aggregate
6     original principal amount of revenue bonds authorized in
7     this Section has been issued, the payment of any principal
8     amount of those revenue bonds does not authorize the
9     issuance of additional revenue bonds (except refunding
10     revenue bonds). Revenue refunding bonds may be issued under
11     this Section to refund or advance refund revenue bonds
12     issued under this Section. Any revenue refunding bond shall
13     mature no later than 40 years after the original issuance
14     of capital improvement revenue bonds that financed the
15     project. Such revenue bond authorization is in addition to
16     any other bonds authorized in this Act. All bonds issued on
17     behalf of the Agency must be issued by the Authority and
18     must be revenue bonds. These revenue bonds may be taxable
19     or tax-exempt.
20         (3) To provide for the funding of any reserves or other
21     funds or accounts deemed necessary by the Authority on
22     behalf of the Agency in connection with its issuance of
23     Agency revenue bonds.
24         (4) To accept the pledge of any Agency revenue,
25     including any payments thereon, and any other property or
26     funds of the Agency or funds made available to the

 

 

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1     Authority through the applicable Agency loan agreement
2     with the Agency that may be applied to such purpose, as
3     security for any revenue bonds or any guarantees, letters
4     of credit, insurance contracts, or similar credit support
5     or liquidity instruments securing the revenue bonds.
6         (5) To enter into agreements or contracts with third
7     parties, whether public or private, including without
8     limitation the United States of America, the State, or any
9     department or agency thereof, to obtain any grants, loans,
10     or guarantees that are deemed necessary or desirable by the
11     Authority. Any such guarantee, agreement, or contract may
12     contain terms and provisions necessary or desirable in
13     connection with the program, subject to the requirements
14     established by this Article.
15         (6) To charge reasonable fees to defray the cost of
16     obtaining letters of credit, insurance contracts, or other
17     similar documents, and to charge such other reasonable fees
18     to defray the cost of trustees, depositories, paying
19     agents, legal counsel, bond registrars, escrow agents, and
20     other administrative expenses. Any such fees shall be
21     payable by the Agency, in such amounts and at such times as
22     the Authority shall determine.
23         (7) To obtain and maintain guarantees, letters of
24     credit, insurance contracts, or similar credit support or
25     liquidity instruments that are deemed necessary or
26     desirable in connection with any revenue bonds or other

 

 

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1     obligations of the Authority for any Agency revenue bonds.
2         (8) To provide technical assistance, at the request of
3     the Agency, with respect to the financing or refinancing
4     for any public purpose.
5         (9) To sell, transfer, or otherwise defease revenue
6     bonds issued on behalf of the Agency at the request and
7     authorization of the Agency.
8         (10) To enter into agreements or contracts with any
9     person necessary or appropriate to place the payment
10     obligations of the Agency relating to revenue bonds in
11     whole or in part on any interest rate basis, cash flow
12     basis, or other basis desired by the Authority, including
13     without limitation agreements or contracts commonly known
14     as "interest rate swap agreements", "forward payment
15     conversion agreements", and "futures", or agreements or
16     contracts to exchange cash flows or a series of payments,
17     or agreements or contracts, including without limitation
18     agreements or contracts commonly known as "options",
19     "puts" or "calls", to hedge payment, rate spread, or
20     similar exposure; provided, that any such agreement or
21     contract shall not constitute an obligation for borrowed
22     money, and shall not be taken into account under Section
23     845-5 of this Act or any other debt limit of the Authority
24     or the State of Illinois.
25         (11) To make and enter into all other agreements and
26     contracts and execute all instruments necessary or

 

 

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1     incidental to performance of its duties and the execution
2     of its powers under this Article.
3         (12) To contract for and finance the costs of audits
4     and to contract for and finance the cost of project
5     monitoring. Any such contract shall be executed only after
6     it has been jointly negotiated by the Authority and the
7     Agency.
8         (13) To exercise such other powers as are necessary or
9     incidental to the foregoing.
10     (c) Illinois Power Agency participation. The Agency is
11 authorized to voluntarily participate in this program as
12 described in the Illinois Power Agency Act. The Authority may
13 issue revenue bonds on behalf of the Agency pursuant to an
14 Agency loan agreement entered into by the parties as set forth
15 in the Illinois Power Agency Act. Any proceeds from the sale of
16 those revenue bonds shall be deposited into the Illinois Power
17 Agency Facilities Fund to be used by the Agency for the
18 purposes set forth in the Illinois Power Agency Act.
19     (d) Pledge of revenues by the Agency. Any pledge of
20 revenues or other moneys made by the Agency shall be binding
21 from the time the pledge is made. Revenues and other moneys so
22 pledged shall be held in the Illinois Power Agency Facilities
23 Fund, Illinois Power Agency Debt Service Fund, or other funds
24 as directed by the Agency loan agreement. Revenues or other
25 moneys so pledged and thereafter received by the State
26 Treasurer shall immediately be subject to the lien of the

 

 

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1 pledge without any physical delivery thereof or further act,
2 and the lien of any pledge shall be binding against all parties
3 having claims of any kind of tort, contract, or otherwise
4 against the Authority, irrespective of whether the parties have
5 notice thereof. Neither the resolution nor any other instrument
6 by which a pledge is created need be filed or recorded except
7 in the records of the Authority. The State pledges to and
8 agrees with the holders of revenue bonds, and the beneficial
9 owners of the revenue bonds issued on behalf of the Agency,
10 that the State shall not limit or restrict the rights hereby
11 vested in the Authority to purchase, acquire, hold, sell, or
12 defease revenue bonds or other investments or to establish and
13 collect such fees or other charges as may be convenient or
14 necessary to produce sufficient revenues to meet the expenses
15 of operation of the Authority, and to fulfill the terms of any
16 agreement made with the holders of the revenue bonds issued by
17 the Authority on behalf of the Agency or in any way impair the
18 rights or remedies of the holders of those revenue bonds or the
19 beneficial owners of the revenue bonds until those revenue
20 bonds are fully paid and discharged or provision for their
21 payment has been made. The revenue bonds shall not be a debt of
22 the State, the Authority, any political subdivision thereof
23 (other than the Agency to the extent provided therein), any
24 governmental aggregator as defined in the Illinois Power Agency
25 Act, or any local government, and neither the State, the
26 Authority, any political subdivision thereof (other than the

 

 

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1 Agency to the extent provided therein), any governmental
2 aggregator, nor any local government shall be liable thereon.
3 The Authority shall not have the power to pledge the credit,
4 the revenues, or the taxing power of the State, any political
5 subdivision thereof (other than the Agency to the extent
6 provided in the Agency loan agreement relating to the revenue
7 bonds in question), any governmental aggregator, or of any
8 local government, and neither the credit, the revenues, nor the
9 taxing power of the State, any political subdivision thereof
10 (other than the Agency to the extent provided in the Agency
11 loan agreement relating to the revenue bonds in question), any
12 governmental aggregator, or of any local government shall be,
13 or shall be deemed to be, pledged to the payment of any revenue
14 bonds, or obligations of the Agency.
15     (e) Exemption from taxation. The creation of the Illinois
16 Power Agency is in all respects for the benefit of the people
17 of Illinois and for the improvement of their health, safety,
18 welfare, comfort, and security, and its purposes are public
19 purposes. In consideration thereof, the revenue bonds issued on
20 behalf of the Agency pursuant to this Act and the income from
21 these revenue bonds may be free from all taxation by the State
22 or its political subdivisions, except for estate, transfer, and
23 inheritance taxes. The exemption from taxation provided by the
24 preceding sentence shall apply to the income on any revenue
25 bonds issued on behalf of the Agency only if the Authority with
26 concurrence of the Agency in its sole judgment determines that

 

 

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1 the exemption enhances the marketability of the revenue bonds
2 or reduces the interest rates that would otherwise be borne by
3 the revenue bonds and that the project for which the revenue
4 bonds will be issued will be owned by the Agency or another
5 governmental entity and that the project is used for public
6 consumption. For purposes of Section 250 of the Illinois Income
7 Tax Act, the exemption of the Agency shall terminate after all
8 of the revenue bonds have been paid. The amount of the income
9 that shall be added and then subtracted on the Illinois income
10 tax return of a taxpayer, subject to Section 203 of the
11 Illinois Income Tax Act, from federal adjusted gross income or
12 federal taxable income in computing Illinois base income shall
13 be the interest net of any bond premium amortization.
14 (Source: P.A. 95-481, eff. 8-28-07; 95-876, eff. 8-21-08.)
 
15     Section 10. The Illinois Power Agency Act is amended by
16 changing Sections 1-20, 1-45, and 1-57 as follows:
 
17     (20 ILCS 3855/1-20)
18     Sec. 1-20. General powers of the Agency.
19     (a) The Agency is authorized to do each of the following:
20         (1) Develop electricity procurement plans to ensure
21     adequate, reliable, affordable, efficient, and
22     environmentally sustainable electric service at the lowest
23     total cost over time, taking into account any benefits of
24     price stability, for electric utilities that on December

 

 

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1     31, 2005 provided electric service to at least 100,000
2     customers in Illinois. The procurement plans shall be
3     updated on an annual basis and shall include electricity
4     generated from renewable resources sufficient to achieve
5     the standards specified in this Act.
6         (2) Conduct competitive procurement processes to
7     procure the supply resources identified in the procurement
8     plan, pursuant to Section 16-111.5 of the Public Utilities
9     Act.
10         (3) Develop electric generation and co-generation
11     facilities that use indigenous coal or renewable
12     resources, or both, financed with bonds issued by the
13     Illinois Finance Authority.
14         (4) If an electric generation facility is owned and
15     operated by the Agency, then supply Supply electricity from
16     the facility Agency's facilities at cost to one or more of
17     the following: municipal electric systems, governmental
18     aggregators, or rural electric cooperatives in Illinois.
19     (b) Except as otherwise limited by this Act, the Agency has
20 all of the powers necessary or convenient to carry out the
21 purposes and provisions of this Act, including without
22 limitation, each of the following:
23         (1) To have a corporate seal, and to alter that seal at
24     pleasure, and to use it by causing it or a facsimile to be
25     affixed or impressed or reproduced in any other manner.
26         (2) To use the services of the Illinois Finance

 

 

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1     Authority necessary to carry out the Agency's purposes.
2         (3) To negotiate and enter into loan agreements and
3     other agreements with the Illinois Finance Authority.
4         (4) To obtain and employ personnel and hire consultants
5     that are necessary to fulfill the Agency's purposes, and to
6     make expenditures for that purpose within the
7     appropriations for that purpose.
8         (5) To purchase, receive, take by grant, gift, devise,
9     bequest, or otherwise, lease, or otherwise acquire, own,
10     hold, improve, employ, use, and otherwise deal in and with,
11     real or personal property whether tangible or intangible,
12     or any interest therein, within the State.
13         (6) To acquire real or personal property, whether
14     tangible or intangible, including without limitation
15     property rights, interests in property, franchises,
16     obligations, contracts, and debt and equity securities,
17     and to do so by the exercise of the power of eminent domain
18     in accordance with Section 1-21; except that any real
19     property acquired by the exercise of the power of eminent
20     domain must be located within the State.
21         (7) To sell, convey, lease, exchange, transfer,
22     abandon, or otherwise dispose of, or mortgage, pledge, or
23     create a security interest in, any of its assets,
24     properties, or any interest therein, wherever situated.
25         (8) To purchase, take, receive, subscribe for, or
26     otherwise acquire, hold, make a tender offer for, vote,

 

 

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1     employ, sell, lend, lease, exchange, transfer, or
2     otherwise dispose of, mortgage, pledge, or grant a security
3     interest in, use, and otherwise deal in and with, bonds and
4     other obligations, shares, or other securities (or
5     interests therein) issued by others, whether engaged in a
6     similar or different business or activity.
7         (9) To make and execute agreements, contracts, and
8     other instruments necessary or convenient in the exercise
9     of the powers and functions of the Agency under this Act,
10     including contracts with any person, local government,
11     State agency, or other entity; and all State agencies and
12     all local governments are authorized to enter into and do
13     all things necessary to perform any such agreement,
14     contract, or other instrument with the Agency. No such
15     agreement, contract, or other instrument shall exceed 40
16     years.
17         (10) To lend money, invest and reinvest its funds in
18     accordance with the Public Funds Investment Act, and take
19     and hold real and personal property as security for the
20     payment of funds loaned or invested.
21         (11) To borrow money at such rate or rates of interest
22     as the Agency may determine, issue its notes, bonds, or
23     other obligations to evidence that indebtedness, and
24     secure any of its obligations by mortgage or pledge of its
25     real or personal property, machinery, equipment,
26     structures, fixtures, inventories, revenues, grants, and

 

 

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1     other funds as provided or any interest therein, wherever
2     situated.
3         (12) To enter into agreements with the Illinois Finance
4     Authority to issue bonds whether or not the income
5     therefrom is exempt from federal taxation.
6         (13) To procure insurance against any loss in
7     connection with its properties or operations in such amount
8     or amounts and from such insurers, including the federal
9     government, as it may deem necessary or desirable, and to
10     pay any premiums therefor.
11         (14) To negotiate and enter into agreements with
12     trustees or receivers appointed by United States
13     bankruptcy courts or federal district courts or in other
14     proceedings involving adjustment of debts and authorize
15     proceedings involving adjustment of debts and authorize
16     legal counsel for the Agency to appear in any such
17     proceedings.
18         (15) (Blank) To file a petition under Chapter 9 of
19     Title 11 of the United States Bankruptcy Code or take other
20     similar action for the adjustment of its debts.
21         (16) To enter into management agreements for the
22     operation of any of the property or facilities owned by the
23     Agency.
24         (17) To enter into an agreement to transfer and to
25     transfer any land, facilities, fixtures, or equipment of
26     the Agency to one or more municipal electric systems,

 

 

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1     governmental aggregators, or rural electric agencies or
2     cooperatives, for such consideration and upon such terms as
3     the Agency may determine to be in the best interest of the
4     citizens of Illinois.
5         (18) To enter upon any lands and within any building
6     whenever in its judgment it may be necessary for the
7     purpose of making surveys and examinations to accomplish
8     any purpose authorized by this Act.
9         (19) To maintain an office or offices at such place or
10     places in the State as it may determine.
11         (20) To request information, and to make any inquiry,
12     investigation, survey, or study that the Agency may deem
13     necessary to enable it effectively to carry out the
14     provisions of this Act.
15         (21) To accept and expend appropriations.
16         (22) To engage in any activity or operation that is
17     incidental to and in furtherance of efficient operation to
18     accomplish the Agency's purposes.
19         (23) To adopt, revise, amend, and repeal rules with
20     respect to its operations, properties, and facilities as
21     may be necessary or convenient to carry out the purposes of
22     this Act, subject to the provisions of the Illinois
23     Administrative Procedure Act and Sections 1-22 and 1-35 of
24     this Act.
25         (24) To establish and collect charges and fees as
26     described in this Act.

 

 

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1         (25) To manage procurement of substitute natural gas
2     from a facility that meets the criteria specified in
3     subsection (a) of Section 1-58 1-56 of this Act, on terms
4     and conditions that may be approved by the Agency pursuant
5     to subsection (d) of Section 1-58 1-56 of this Act, to
6     support the operations of State agencies and local
7     governments that agree to such terms and conditions. This
8     procurement process is not subject to the Procurement Code.
9 (Source: P.A. 95-481, eff. 8-28-07; 96-784, eff. 8-28-09;
10 revised 10-13-09.)
 
11     (20 ILCS 3855/1-45)
12     Sec. 1-45. Illinois Power Agency Facilities Fund.
13     (a) The Illinois Power Agency Facilities Fund is created as
14 a special fund in the State treasury.
15     (b) The Illinois Power Agency Facilities Fund shall be
16 administered by the Agency for costs incurred in connection
17 with the development and construction of a facility by the
18 Agency as well as costs incurred in connection with the
19 operation and maintenance of an Agency facility.
20     (c) (Blank) All moneys used by the Agency from the Illinois
21 Power Agency Facilities Fund are subject to appropriation by
22 the General Assembly.
23     (d) (Blank) All disbursements from the Illinois Power
24 Agency Facilities Fund shall be made only upon warrants of the
25 State Comptroller drawn upon the State Treasurer as custodian

 

 

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1 of the Fund upon vouchers signed by the Director or by the
2 person or persons designated by the Director for that purpose.
3 The Comptroller is authorized to draw the warrant upon vouchers
4 so signed. The State Treasurer shall accept all warrants so
5 signed and shall be released from liability for all payments
6 made on those warrants.
7 (Source: P.A. 95-481, eff. 8-28-07.)
 
8     (20 ILCS 3855/1-57)
9     Sec. 1-57. Facility financing.
10     (a) The Agency shall have the power (1) to borrow from the
11 Authority, through one or more Agency loan agreements, the net
12 proceeds of revenue bonds for costs incurred in connection with
13 the development and construction of a facility, provided that
14 the stated maturity date of any of those revenue bonds shall
15 not exceed 40 years from their respective issuance dates, (2)
16 to accept prepayments from purchasers of electric energy from a
17 project and to apply the same to costs incurred in connection
18 with the development and construction of a facility, subject to
19 any obligation to refund the same under the circumstances
20 specified in the purchasers' contract for the purchase and sale
21 of electric energy from that project, (3) to enter into leases
22 or similar arrangements to finance the property constituting a
23 part of a project and associated costs incurred in connection
24 with the development and construction of a facility, provided
25 that the term of any such lease or similar arrangement shall

 

 

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1 not exceed 40 years from its inception, and (4) to enter into
2 agreements for the sale of revenue bonds that bear interest at
3 a rate or rates not exceeding the maximum rate permitted by the
4 Bond Authorization Act. All Agency loan agreements shall
5 include terms making the obligations thereunder subject to
6 redemption before maturity.
7     (b) The Agency may from time to time engage the services of
8 the Authority, attorneys, appraisers, architects, engineers,
9 accountants, credit analysts, bond underwriters, bond
10 trustees, credit enhancement providers, and other financial
11 professionals and consultants, if the Agency deems it
12 advisable.
13     (c) The Agency may pledge, as security for the payment of
14 its revenue bonds in respect of a project, (1) revenues derived
15 from the operation of the project in whole or in part,
16 including moneys derived from any power purchase agreements
17 that require the power purchaser to make payments whether or
18 not the project is operating or operable revenues derived from
19 the operation of the project in part or whole, (2) the real and
20 personal property, machinery, equipment, structures, fixtures,
21 and inventories directly associated with the project, (3)
22 grants or other revenues or taxes expected to be received by
23 the Agency directly linked to the project, (4) payments to be
24 made by another governmental unit or other entity pursuant to a
25 service, user, or other similar agreement with that
26 governmental unit or other entity that is a result of the

 

 

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1 project, (5) any other revenues or moneys deposited or to be
2 deposited directly linked to the project, (6) all design,
3 engineering, procurement, construction, installation,
4 management, and operation agreements associated with the
5 project, (7) any reserve or debt service funds created under
6 the agreements governing the indebtedness, (8) the Illinois
7 Power Agency Facilities Fund or the Illinois Power Agency Debt
8 Service Fund, (9) moneys derived from any power purchase
9 agreements or arrangements, or (10) (9) any combination
10 thereof. Any such pledge shall be authorized in a writing,
11 signed by the Director of the Agency, and then signed by the
12 Governor of Illinois. At no time shall the funds contained in
13 the Illinois Power Agency Trust Fund be pledged or used in any
14 way to pay for the indebtedness of the Agency. The Director
15 shall not authorize the issuance or grant of any pledge until
16 he or she has certified that any associated project or proposed
17 project is or will be in full compliance with Sections 1-85
18 and 1-86 of this Act. The certification shall be duly attached
19 or referenced in the agreements reflecting the pledge. Any such
20 pledge made by the Agency shall be valid and binding from the
21 time the pledge is made. The revenues, property, or funds that
22 are pledged and thereafter received by the Agency shall
23 immediately be subject to the lien of the pledge without any
24 physical delivery thereof or further act; and, subject only to
25 the provisions of prior liens, the lien of the pledge shall be
26 valid and binding as against all parties having claims of any

 

 

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1 kind in tort, contract, or otherwise against the Agency
2 irrespective of whether the parties have notice thereof. All
3 bonds issued on behalf of the Agency must be issued by the
4 Authority and must be revenue bonds. These revenue bonds may be
5 taxable or tax-exempt.
6     (d) All indebtedness issued by or on behalf of the Agency,
7 including, without limitation, any revenue bonds issued by the
8 Authority on behalf of the Agency, shall not be a debt of the
9 State, the Authority, any political subdivision thereof (other
10 than the Agency to the extent provided in agreements governing
11 the indebtedness), any local government, any governmental
12 aggregator as defined in the this Act, or any local government,
13 and none of the State, the Authority, any political subdivision
14 thereof (other than the Agency to the extent provided in
15 agreements governing the indebtedness), any local government,
16 or any government aggregator shall be liable thereon. Neither
17 the Authority nor the Agency shall have the power to pledge the
18 credit, the revenues, or the taxing power of the State, any
19 political subdivision thereof (other than the Agency), any
20 governmental aggregator, or of any local government, and
21 neither the credit, the revenues, nor the taxing power of the
22 State, any political subdivision thereof (other than the
23 Agency), any governmental aggregator, or any local government
24 shall be, or shall be deemed to be, pledged to the payment of
25 any revenue bonds, notes, or other obligations of the Agency.
26 In addition, the agreements governing any issue of indebtedness

 

 

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1 shall provide that all holders of that indebtedness, by virtue
2 of their acquisition thereof, have agreed to waive and release
3 all claims and causes of action against the State of Illinois
4 in respect of the indebtedness or any project associated
5 therewith based on any theory of law. However, the waiver shall
6 not prohibit the holders of indebtedness issued on behalf of
7 the Agency from filing any cause of action against or
8 recovering damages from the Agency, recovering from any
9 property or funds pledged to secure the indebtedness, or
10 recovering from any property or funds to which the Agency holds
11 title, provided the property or funds are directly associated
12 with the project for which the indebtedness was specifically
13 issued. Each evidence of indebtedness of the Agency, including
14 the revenue bonds issued by the Authority on behalf of the
15 Agency, shall contain a clear and explicit statement of the
16 provisions of this Section.
17     (e) The Agency may from time to time enter into an
18 agreement or agreements to defease indebtedness issued on its
19 behalf or to refund, at maturity, at a redemption date or in
20 advance of either, any indebtedness issued on its behalf or
21 pursuant to redemption provisions or at any time before
22 maturity. All such refunding indebtedness shall be subject to
23 the requirements set forth in subsections (a), (c), and (d) of
24 this Section. Any refunding bond shall mature no later than 40
25 years after the original issuance of capital improvements bonds
26 that financed the project. No revenue bonds issued to refund or

 

 

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1 advance refund revenue bonds issued under this Section may
2 mature later than the longest maturity date of the series of
3 bonds being refunded. After the aggregate original principal
4 amount of revenue bonds authorized in this Section has been
5 issued, the payment of any principal amount of those revenue
6 bonds does not authorize the issuance of additional revenue
7 bonds (except refunding revenue bonds).
8     (f) If the Agency fails to pay the principal of, interest,
9 or premium, if any, on any indebtedness as the same becomes
10 due, a civil action to compel payment may be instituted in the
11 appropriate circuit court by the holder or holders of the
12 indebtedness on which the default of payment exists or by any
13 administrative agent, collateral agent, or indenture trustee
14 acting on behalf of those holders. Delivery of a summons and a
15 copy of the complaint to the Director of the Agency shall
16 constitute sufficient service to give the circuit court
17 jurisdiction over the subject matter of the suit and
18 jurisdiction over the Agency and its officers named as
19 defendants for the purpose of compelling that payment. Any
20 case, controversy, or cause of action concerning the validity
21 of this Act shall relate to the revenue of the Agency. Any such
22 claims and related proceedings are subject in all respects to
23 the provisions of subsection (d) of this Section. The State of
24 Illinois shall not be liable or in any other way financially
25 responsible for any indebtedness issued by or on behalf of the
26 Agency or the performance or non-performance of any covenants

 

 

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1 associated with any such indebtedness. The foregoing statement
2 shall not prohibit the holders of any indebtedness issued on
3 behalf of the Agency from filing any cause of action against or
4 recovering damages from the Agency recovering from any property
5 pledged to secure that indebtedness or recovering from any
6 property or funds to which the Agency holds title provided such
7 property or funds are directly associated with the project for
8 which the indebtedness is specifically issued.
9     (g) Upon each delivery of the revenue bonds authorized to
10 be issued by the Authority under this Act, the Agency shall
11 compute and certify to the State Comptroller the total amount
12 of principal of and interest on the Agency loan agreement
13 supporting the revenue bonds issued that will be payable in
14 order to retire those revenue bonds and the amount of principal
15 of and interest on the Agency loan agreement that will be
16 payable on each payment date during the then current and each
17 succeeding fiscal year. As soon as possible after the first day
18 of each month, beginning on the date set forth in the Agency
19 loan agreement where that date specifies when the Agency shall
20 begin setting aside revenues and other moneys for repayment of
21 the revenue bonds per the agreed to schedule, the Agency shall
22 certify to the Comptroller and the Comptroller shall order
23 transferred and the Treasurer shall transfer from the Illinois
24 Power Agency Facilities Fund to the Illinois Power Agency Debt
25 Service Fund for each month remaining in the State fiscal year
26 a sum of money, appropriated for that purpose, equal to the

 

 

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1 result of the amount of principal of and interest on those
2 revenue bonds payable on the next payment date divided by the
3 number of full calendar months between the date of those
4 revenue bonds, and the first such payment date, and thereafter
5 divided by the number of months between each succeeding payment
6 date after the first. The Comptroller is authorized and
7 directed to draw warrants on the State Treasurer from the
8 Illinois Power Agency Facilities Fund and the Illinois Power
9 Agency Debt Service Fund for the amount of all payments of
10 principal and interest on the Agency loan agreement relating to
11 the Authority revenue bonds issued under this Act. The State
12 Treasurer or the State Comptroller shall deposit or cause to be
13 deposited any amount of grants or other revenues expected to be
14 received by the Agency that the Agency has pledged to the
15 payment of revenue bonds directly into the Illinois Power
16 Agency Debt Service Fund.
17     (h) The State of Illinois pledges to and agrees with the
18 holders of the bonds and notes of the Agency and the Illinois
19 Finance Authority issued pursuant to this Act or the Illinois
20 Finance Authority Act that the State will not limit or alter
21 the rights and powers vested in the Agency or the Authority by
22 this Act so as to impair the terms of any contract made by the
23 Agency with such holders or in any way impair the rights and
24 remedies of such holders until such bonds and notes, together
25 with interest thereon, with interest on any unpaid installments
26 of interest, and all costs and expenses in connection with any

 

 

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1 action or proceedings by or on behalf of such holders, are
2 fully met and discharged. In addition, the State pledges to and
3 agrees with the holders of the bonds and notes of the Agency
4 and the Authority issued pursuant to this Act that the State
5 will not limit or alter the basis on which State funds are to
6 be allocated, deposited, and paid to the Agency as provided in
7 this Act, or the use of such funds, so as to impair the terms of
8 any such contract. The Authority and the Agency are authorized
9 to include these pledges and agreements of the State in any
10 contract with the holders of bonds or notes issued pursuant to
11 this Section.
12 (Source: P.A. 95-481, eff. 8-28-07.)
 
13     Section 99. Effective date. This Act takes effect upon
14 becoming law.".