Full Text of SB0066 95th General Assembly
SB0066eng 95TH GENERAL ASSEMBLY
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| AN ACT concerning finance.
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| Be it enacted by the People of the State of Illinois,
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| represented in the General Assembly:
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| Section 5. The Illinois Finance Authority Act is amended by | 5 |
| changing Sections 801-40, 825-65, 825-75 and by adding Section | 6 |
| 801-50 as follows:
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| (20 ILCS 3501/801-40)
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| Sec. 801-40. In addition to the powers otherwise authorized | 9 |
| by law and in
addition to the foregoing general corporate | 10 |
| powers, the Authority shall also
have the following additional | 11 |
| specific powers to be exercised in furtherance of
the purposes | 12 |
| of this Act.
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| (a) The Authority shall have power (i) to accept grants, | 14 |
| loans or
appropriations from the federal government or the | 15 |
| State, or any agency or
instrumentality thereof, to be used for | 16 |
| the operating expenses of the
Authority,
or for any purposes of | 17 |
| the Authority, including the making of direct loans of
such | 18 |
| funds with respect to projects, and (ii) to enter into any | 19 |
| agreement with
the federal government or the State, or any | 20 |
| agency or instrumentality thereof,
in relationship to such | 21 |
| grants, loans or appropriations.
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| (b) The Authority shall have power to procure and enter | 23 |
| into contracts for
any
type of insurance and indemnity |
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| agreements covering loss or damage to property
from any cause, | 2 |
| including loss of use and occupancy, or covering any other
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| insurable risk.
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| (c) The Authority shall have the continuing power to issue | 5 |
| bonds for its
corporate purposes. Bonds may be issued by the | 6 |
| Authority in one or more series
and may provide for the payment | 7 |
| of any interest deemed necessary on such bonds,
of the costs of | 8 |
| issuance of such bonds, of any premium on any insurance, or of
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| the cost of any guarantees, letters of credit or other similar | 10 |
| documents, may
provide for the funding of the reserves deemed | 11 |
| necessary in connection with
such bonds, and may provide for | 12 |
| the refunding or advance refunding of any bonds
or
for accounts | 13 |
| deemed necessary in connection with any purpose of the | 14 |
| Authority.
The bonds may bear interest payable at any time or | 15 |
| times and at any rate or
rates, notwithstanding any other | 16 |
| provision of law to the contrary, and such
rate or rates may be | 17 |
| established by an index or formula which may be
implemented or
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| established by persons appointed or retained therefor by the | 19 |
| Authority, or may
bear no interest or may bear interest payable | 20 |
| at maturity or upon redemption
prior to maturity, may bear such | 21 |
| date or dates, may be payable at such time or
times and at such | 22 |
| place or places, may mature at any time or times not later
than | 23 |
| 40 years from the date of issuance, may be sold at public or | 24 |
| private sale
at such time or times and at such price or prices, | 25 |
| may be secured by such
pledges, reserves, guarantees, letters | 26 |
| of credit, insurance contracts or other
similar credit support |
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| or liquidity instruments, may be executed in such
manner, may | 2 |
| be subject to redemption prior to maturity, may provide for the
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| registration of the bonds, and may be subject to such other | 4 |
| terms and
conditions all as may
be provided by the resolution | 5 |
| or indenture authorizing the issuance of such
bonds. The holder | 6 |
| or holders of any bonds issued by the Authority may bring
suits | 7 |
| at law or proceedings in equity to compel the performance and | 8 |
| observance
by any person or by the Authority or any of its | 9 |
| agents or employees of any
contract or covenant made with the | 10 |
| holders of such bonds and to compel such
person or the | 11 |
| Authority and any of its agents or employees to perform any
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| duties
required to be performed for the benefit of the holders | 13 |
| of any such bonds by
the provision of the resolution | 14 |
| authorizing their issuance, and to enjoin such
person or the | 15 |
| Authority and any of its agents or employees from taking any
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| action in conflict with any such contract or covenant.
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| Notwithstanding the form and tenor of any such bonds and in the | 18 |
| absence of any
express recital on the face thereof that it is | 19 |
| non-negotiable, all such bonds
shall be negotiable | 20 |
| instruments. Pending the preparation and execution of any
such | 21 |
| bonds, temporary bonds may be issued as provided by the | 22 |
| resolution.
The bonds shall be sold by the Authority in such | 23 |
| manner as it shall determine.
The bonds may be secured as | 24 |
| provided in the authorizing resolution by the
receipts, | 25 |
| revenues, income and other available funds of the Authority and | 26 |
| by
any amounts derived by the Authority from the loan agreement |
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| or lease agreement
with respect to the project or projects; and | 2 |
| bonds may be issued as general
obligations of the Authority | 3 |
| payable from such revenues, funds and obligations
of the | 4 |
| Authority as the bond resolution shall provide, or may be | 5 |
| issued as
limited obligations with a claim for payment solely | 6 |
| from such revenues, funds
and obligations as the bond | 7 |
| resolution shall provide. The Authority may grant a
specific | 8 |
| pledge or assignment of and lien on or security interest in | 9 |
| such
rights, revenues, income, or amounts and may grant a | 10 |
| specific pledge or
assignment of and lien on or security | 11 |
| interest in any reserves, funds or
accounts established in the | 12 |
| resolution authorizing the issuance of bonds. Any
such pledge, | 13 |
| assignment, lien or security interest for the benefit of the
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| holders of the Authority's bonds shall be valid and binding | 15 |
| from the time the
bonds are issued without any physical | 16 |
| delivery or further act, and shall be
valid and binding as | 17 |
| against and prior to the claims of all other parties
having | 18 |
| claims against the Authority or any other person irrespective | 19 |
| of whether
the
other parties have notice of the pledge, | 20 |
| assignment, lien or security interest.
As evidence of such | 21 |
| pledge, assignment, lien and security interest, the
Authority | 22 |
| may execute and deliver a mortgage, trust agreement, indenture | 23 |
| or
security agreement or an assignment thereof.
A remedy for | 24 |
| any breach or default of the terms of any such agreement by the
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| Authority may be by mandamus proceedings in any court of | 26 |
| competent jurisdiction
to compel the performance and |
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| compliance therewith, but the agreement may
prescribe by whom | 2 |
| or on whose behalf such action may be instituted.
It is | 3 |
| expressly understood that the Authority may, but need not, | 4 |
| acquire title
to any project with respect to which it exercises | 5 |
| its authority.
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| (d) With respect to the powers granted by this Act, the | 7 |
| Authority may adopt
rules and regulations prescribing the | 8 |
| procedures by which persons may apply for
assistance under this | 9 |
| Act. Nothing herein shall be deemed to preclude the
Authority, | 10 |
| prior to the filing of any formal application, from conducting
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| preliminary discussions and investigations with respect to the | 12 |
| subject matter
of any prospective application.
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| (e) The Authority shall have power to acquire by purchase, | 14 |
| lease, gift or
otherwise any property or rights therein from | 15 |
| any person useful for its
purposes, whether improved for the | 16 |
| purposes of any prospective project, or
unimproved. The | 17 |
| Authority may also accept any donation of funds for its
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| purposes from any such source. The Authority shall have no | 19 |
| independent power of
condemnation but may acquire any property | 20 |
| or rights therein obtained upon
condemnation by any other | 21 |
| authority, governmental entity or unit of local
government with | 22 |
| such power.
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| (f) The Authority shall have power to develop, construct | 24 |
| and improve either
under its own direction, or through | 25 |
| collaboration with any approved applicant,
or to acquire | 26 |
| through purchase or otherwise, any project, using for such
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| purpose the proceeds derived from the sale of its bonds or from | 2 |
| governmental
loans or
grants, and to hold title in the name of | 3 |
| the Authority to such projects.
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| (g) The Authority shall have power to lease pursuant to a | 5 |
| lease agreement
any
project so developed and constructed or | 6 |
| acquired to the approved tenant on such
terms and conditions as | 7 |
| may be appropriate to further the purposes of this Act
and to | 8 |
| maintain the credit of the Authority. Any such lease may | 9 |
| provide for
either the Authority or the approved tenant to | 10 |
| assume initially, in whole or in
part, the costs of | 11 |
| maintenance, repair and improvements during the leasehold
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| period. In no case, however, shall the total rentals from any | 13 |
| project during
any initial leasehold period or the total loan | 14 |
| repayments to be made pursuant
to any loan agreement, be less | 15 |
| than an amount necessary to return over such
lease
or loan | 16 |
| period (1) all costs incurred in connection with the | 17 |
| development,
construction, acquisition or improvement of the | 18 |
| project and for repair,
maintenance and improvements thereto | 19 |
| during the period of the lease or loan;
provided, however, that | 20 |
| the rentals or loan repayments need not include costs
met | 21 |
| through the use of funds other than those obtained by the | 22 |
| Authority through
the issuance of its bonds or governmental | 23 |
| loans; (2) a reasonable percentage
additive to be agreed upon | 24 |
| by the Authority and the borrower or tenant to cover
a properly | 25 |
| allocable portion of the Authority's general expenses, | 26 |
| including,
but not limited to, administrative expenses, |
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| salaries and general insurance,
and
(3) an amount sufficient to | 2 |
| pay when due all principal of, interest and
premium, if
any on, | 3 |
| any bonds issued by the Authority with respect to the project. | 4 |
| The
portion of total rentals payable under clause (3) of this | 5 |
| subsection (g) shall
be deposited in such special accounts, | 6 |
| including all sinking funds, acquisition
or construction | 7 |
| funds, debt service and other funds as provided by any
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| resolution, mortgage or trust agreement of the Authority | 9 |
| pursuant to which any
bond is issued.
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| (h) The Authority has the power, upon the termination of | 11 |
| any leasehold
period
of any project, to sell or lease for a | 12 |
| further term or terms such project on
such terms and conditions | 13 |
| as the Authority shall deem reasonable and consistent
with the | 14 |
| purposes of the Act. The net proceeds from all such sales and | 15 |
| the
revenues or income from such leases shall be used to | 16 |
| satisfy any indebtedness
of
the Authority with respect to such | 17 |
| project and any balance may be used to pay
any expenses of the | 18 |
| Authority or be used for the further development,
construction, | 19 |
| acquisition or improvement of projects.
In the event any | 20 |
| project is vacated by a tenant prior to the termination of the
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| initial leasehold period, the Authority shall sell or lease the | 22 |
| facilities of
the project on the most advantageous terms | 23 |
| available. The net proceeds of any
such disposition shall be | 24 |
| treated in the same manner as the proceeds from sales
or the | 25 |
| revenues or income from leases subsequent to the termination of | 26 |
| any
initial leasehold period.
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| (i) The Authority shall have the power to make loans to | 2 |
| persons to finance a
project, to enter into loan agreements | 3 |
| with respect thereto, and to accept
guarantees from persons of | 4 |
| its loans or the resultant evidences of obligations
of the | 5 |
| Authority.
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| (j) The Authority may fix, determine, charge and collect | 7 |
| any premiums, fees,
charges, costs and expenses, including, | 8 |
| without limitation, any application
fees, commitment fees, | 9 |
| program fees, financing charges or publication fees from
any | 10 |
| person in connection with its activities under this Act.
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| (k) In addition to the funds established as provided | 12 |
| herein, the Authority
shall have the power to create and | 13 |
| establish such reserve funds and accounts as
may be necessary | 14 |
| or desirable to accomplish its purposes under this Act and to
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| deposit its available monies into the funds and accounts.
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| (l) At the request of the governing body of any unit of | 17 |
| local government,
the
Authority is authorized to market such | 18 |
| local government's revenue bond
offerings by preparing bond | 19 |
| issues for sale, advertising for sealed bids,
receiving bids
at | 20 |
| its offices, making the award to the bidder that offers the | 21 |
| most favorable
terms or arranging for negotiated placements or | 22 |
| underwritings of such
securities. The Authority may, at its | 23 |
| discretion, offer for concurrent sale the
revenue bonds of | 24 |
| several local governments. Sales by the Authority of revenue
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| bonds under this Section shall in no way imply State guarantee | 26 |
| of such debt
issue. The Authority may require such financial |
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| information from participating
local governments as it deems | 2 |
| necessary in order to carry out the purposes of
this subsection | 3 |
| (1).
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| (m) The Authority may make grants to any county to which | 5 |
| Division 5-37 of
the
Counties Code is applicable to assist in | 6 |
| the financing of capital development,
construction and | 7 |
| renovation of new or existing facilities for hospitals and
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| health care facilities under that Act. Such grants may only be | 9 |
| made from funds
appropriated for such purposes from the Build | 10 |
| Illinois Bond Fund.
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| (n) The Authority may establish an urban development action | 12 |
| grant program
for
the purpose of assisting municipalities in | 13 |
| Illinois which are experiencing
severe economic distress to | 14 |
| help stimulate economic development activities
needed to aid in | 15 |
| economic recovery. The Authority shall determine the types of
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| activities and projects for which the urban development action | 17 |
| grants may be
used, provided that such projects and activities | 18 |
| are broadly defined to include
all reasonable projects and | 19 |
| activities the primary objectives of which are the
development | 20 |
| of viable urban communities, including decent housing and a
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| suitable living environment, and expansion of economic | 22 |
| opportunity, principally
for
persons of low and moderate | 23 |
| incomes. The Authority shall enter into grant
agreements from | 24 |
| monies appropriated for such purposes from the Build Illinois
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| Bond Fund. The Authority shall monitor the
use of the grants, | 26 |
| and shall provide for audits of the funds as well as
recovery |
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| by the Authority of any funds determined to have been spent in
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| violation of this
subsection (n) or any rule or regulation | 3 |
| promulgated hereunder. The Authority
shall provide technical | 4 |
| assistance with regard to the effective use of the
urban | 5 |
| development action grants. The Authority shall file an annual | 6 |
| report to
the
General Assembly concerning the progress of the | 7 |
| grant program.
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| (o) The Authority may establish a Housing Partnership | 9 |
| Program whereby the
Authority provides zero-interest loans to | 10 |
| municipalities for the purpose of
assisting in the financing of | 11 |
| projects for the rehabilitation of affordable
multi-family | 12 |
| housing for low and moderate income residents. The Authority | 13 |
| may
provide such loans only upon a municipality's providing | 14 |
| evidence that it has
obtained private funding for the | 15 |
| rehabilitation project. The Authority shall
provide 3 State | 16 |
| dollars for every 7 dollars obtained by the municipality from
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| sources other than the State of Illinois. The loans shall be | 18 |
| made from monies
appropriated for such purpose from the Build | 19 |
| Illinois Bond Fund. The total amount of loans available under | 20 |
| the Housing
Partnership Program shall not exceed $30,000,000. | 21 |
| State loan monies under this
subsection shall be used only for | 22 |
| the acquisition and rehabilitation of
existing
buildings | 23 |
| containing 4 or more dwelling units. The terms of any loan made | 24 |
| by
the municipality under this subsection shall require | 25 |
| repayment of the loan to
the municipality upon any sale or | 26 |
| other transfer of the project.
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| (p) The Authority may award grants to universities and | 2 |
| research
institutions,
research consortiums and other | 3 |
| not-for-profit entities for the purposes of:
remodeling or | 4 |
| otherwise physically altering existing laboratory or research
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| facilities, expansion or physical additions to existing | 6 |
| laboratory or research
facilities, construction of new | 7 |
| laboratory or research facilities or
acquisition of modern | 8 |
| equipment to support laboratory or research operations
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| provided that
such grants (i) be used solely in support of | 10 |
| project and equipment acquisitions
which enhance technology | 11 |
| transfer, and (ii) not constitute more than 60 percent
of the | 12 |
| total project or acquisition cost.
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| (q) Grants may be awarded by the Authority to units of | 14 |
| local government for
the
purpose of developing the appropriate | 15 |
| infrastructure or defraying other costs
to
the local government | 16 |
| in support of laboratory or research facilities provided
that | 17 |
| such grants may not exceed 40% of the cost to the unit of local
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| government.
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| (r) The Authority may establish a Direct Loan Program to | 20 |
| make loans to
individuals, partnerships or corporations for the | 21 |
| purpose of an industrial
project, as defined in
Section 801-10 | 22 |
| of this Act. For the purposes of such program
and not by way of | 23 |
| limitation on any other program of the Authority, the
Authority | 24 |
| shall have the power to issue bonds, notes, or other evidences | 25 |
| of
indebtedness including commercial paper for purposes of | 26 |
| providing a fund of
capital from which it may make such loans. |
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| The Authority shall have the power
to use any appropriations | 2 |
| from the State made especially for the Authority's
Direct Loan | 3 |
| Program for additional capital to make such loans or for the
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| purposes of reserve funds or pledged funds which secure the | 5 |
| Authority's
obligations of repayment of any bond, note or other | 6 |
| form of indebtedness
established for the purpose of providing | 7 |
| capital for which it intends to make
such loans under the | 8 |
| Direct Loan Program. For the purpose of obtaining such
capital, | 9 |
| the Authority may also enter into agreements with financial
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| institutions and other persons for the purpose of selling loans | 11 |
| and developing
a secondary market for such loans.
Loans made | 12 |
| under the Direct Loan Program may be in an amount not to exceed
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| $300,000 and shall be made for a portion of an industrial | 14 |
| project which does
not exceed 50% of the total project. No loan | 15 |
| may be made by the Authority
unless
approved by the affirmative | 16 |
| vote of at least 8 members of the board. The
Authority shall | 17 |
| establish procedures and publish rules which shall provide for
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| the submission, review, and analysis of each direct loan | 19 |
| application and which
shall preserve the ability of each board | 20 |
| member to reach an individual business
judgment regarding the | 21 |
| propriety of making each direct loan. The collective
discretion | 22 |
| of the board to approve or disapprove each loan shall be
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| unencumbered.
The Authority may establish and collect such fees | 24 |
| and charges, determine and
enforce such terms and conditions, | 25 |
| and charge such interest rates as it
determines to be necessary | 26 |
| and appropriate to the successful administration of
the Direct |
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| Loan Program. The Authority may require such interests in | 2 |
| collateral
and such guarantees as it determines are necessary | 3 |
| to project the Authority's
interest in the repayment of the | 4 |
| principal and interest of each loan made under
the Direct Loan | 5 |
| Program.
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| (s) The Authority may guarantee private loans to third | 7 |
| parties up to a
specified dollar amount in order to promote | 8 |
| economic development in this State.
| 9 |
| (t) The Authority may adopt rules and regulations as may be | 10 |
| necessary or
advisable to implement the powers conferred by | 11 |
| this Act.
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| (u) The Authority shall have the power to issue bonds, | 13 |
| notes or other
evidences
of indebtedness, which may be used to | 14 |
| make loans to units of local government
which are authorized to | 15 |
| enter into loan agreements and other documents and to
issue | 16 |
| bonds, notes and other evidences of indebtedness for the | 17 |
| purpose of
financing the protection of storm sewer outfalls, | 18 |
| the construction of adequate
storm sewer outfalls, and the | 19 |
| provision for flood protection of sanitary sewage
treatment | 20 |
| plans, in counties that have established a stormwater | 21 |
| management
planning committee in accordance with
Section | 22 |
| 5-1062 of the Counties Code. Any
such loan shall be made by the | 23 |
| Authority pursuant to the provisions of
Section
820-5 to 820-60 | 24 |
| of this Act. The unit of local government shall pay back to the
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| Authority the principal amount of the loan, plus annual | 26 |
| interest as determined
by the Authority. The Authority shall |
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| have the power, subject to appropriations
by the General | 2 |
| Assembly, to subsidize or buy down a portion of the interest on
| 3 |
| such loans, up to 4% per annum.
| 4 |
| (v) The Authority may accept security interests as provided | 5 |
| in
Sections 11-3
and 11-3.3 of the Illinois Public Aid Code.
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| (w) Moral Obligation. In the event that the Authority | 7 |
| determines that monies
of the Authority will not be sufficient | 8 |
| for the payment of the principal of and
interest on its bonds | 9 |
| during the next State fiscal year, the Chairperson, as
soon as | 10 |
| practicable, shall certify to the Governor the amount required | 11 |
| by the
Authority to enable it to pay such principal of and | 12 |
| interest on the bonds. The
Governor shall submit the amount so | 13 |
| certified to the General Assembly as soon
as
practicable, but | 14 |
| no later than the end of the current State fiscal year. This
| 15 |
| subsection shall apply only to any bonds or notes as to which | 16 |
| the Authority
shall have determined, in the resolution | 17 |
| authorizing the issuance of the bonds
or notes, that this | 18 |
| subsection shall apply. Whenever the Authority makes such a
| 19 |
| determination, that fact shall be plainly stated on the face of | 20 |
| the bonds or
notes and that fact shall also be reported to the | 21 |
| Governor. In the event of a
withdrawal of moneys from a reserve | 22 |
| fund established with respect to any issue
or issues of bonds | 23 |
| of the Authority to pay principal or interest on those
bonds,
| 24 |
| the Chairperson of the Authority, as soon as practicable, shall | 25 |
| certify to the
Governor the amount required to restore the | 26 |
| reserve fund to the level required
in the resolution or |
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| indenture securing those bonds. The Governor shall submit
the | 2 |
| amount so certified to the General Assembly as soon as | 3 |
| practicable, but no
later than the end of the current State | 4 |
| fiscal year. The Authority shall obtain
written approval from | 5 |
| the Governor for any bonds and notes to be issued under
this | 6 |
| Section.
In addition to any other bonds authorized to be issued | 7 |
| under
Sections 825-60, 825-65(e), 830-25 and 845-5, the | 8 |
| principal amount of Authority
bonds outstanding
issued under | 9 |
| this
Section 801-40(w) or under 20 ILCS 3850/1-80 or 30 ILCS | 10 |
| 360/2-6(c), which have
been
assumed by the Authority, shall not | 11 |
| exceed $150,000,000.
| 12 |
| (x) The Authority may enter into agreements or contracts | 13 |
| with any person necessary or appropriate to place the payment | 14 |
| obligations of the Authority under any of its bonds in whole or | 15 |
| in part on any interest rate basis, cash flow basis, or other | 16 |
| basis desired by the Authority, including without limitation | 17 |
| agreements or contracts commonly known as "interest rate swap | 18 |
| agreements", "forward payment conversion agreements", and | 19 |
| "futures", or agreements or contracts to exchange cash flows or | 20 |
| a series of payments, or agreements or contracts, including | 21 |
| without limitation agreements or contracts commonly known as | 22 |
| "options", "puts", or "calls", to hedge payment, rate spread, | 23 |
| or similar exposure; provided that any such agreement or | 24 |
| contract shall not constitute an obligation for borrowed money | 25 |
| and shall not be taken into account under Section 845-5 of this | 26 |
| Act or any other debt limit of the Authority or the State of |
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| Illinois.
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| (Source: P.A. 93-205, eff. 1-1-04; 94-91, eff. 7-1-05.)
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| (20 ILCS 3501/801-50 new) | 4 |
| Sec. 801-50. Pledge of revenues by the Authority; | 5 |
| non-impairment. Any pledge of revenues or other moneys made by | 6 |
| the Authority shall be binding from the time the pledge is | 7 |
| made. Revenues and other moneys so pledged shall be held | 8 |
| outside of the State treasury and in the custody of either the | 9 |
| Treasurer of the Authority or a trustee or a depository | 10 |
| appointed by the Authority. Revenues or other moneys so pledged | 11 |
| and thereafter received by the Authority or trustee or | 12 |
| depository shall immediately be subject to the lien of the | 13 |
| pledge without any physical delivery thereof or further act, | 14 |
| and the lien of any pledge shall be binding against all parties | 15 |
| having claims of any kind in tort, contract, or otherwise | 16 |
| against the Authority, irrespective of whether the parties have | 17 |
| notice thereof. Neither the resolution nor any other instrument | 18 |
| by which a pledge is created need be filed or recorded except | 19 |
| in the records of the Authority. The State pledges and agrees | 20 |
| with the holders of bonds or other obligations of the Authority | 21 |
| that the State will not limit or restrict the rights hereby | 22 |
| vested in the Authority to purchase, acquire, hold, sell, or | 23 |
| dispose of investments or to establish and collect such fees or | 24 |
| other charges as may be convenient or necessary to produce | 25 |
| sufficient revenues to meet the expenses of operation to the |
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| 1 |
| Authority, and to fulfill the terms of any agreement made with | 2 |
| the holders of the bonds or other obligations of the Authority | 3 |
| or in any way impair the rights or remedies of the holders of | 4 |
| those bonds or other obligations of the Authority until such | 5 |
| bonds or other obligations are fully paid and discharged or | 6 |
| provision for their payment has been made.
| 7 |
| (20 ILCS 3501/825-65)
| 8 |
| Sec. 825-65. Clean Coal and Energy Project Financing.
| 9 |
| (a) Findings and declaration of policy. It is hereby found | 10 |
| and declared that
Illinois has abundant coal resources and, in | 11 |
| some areas of Illinois, the demand
for power exceeds the | 12 |
| generating capacity. Incentives to encourage the
construction | 13 |
| of coal-fired electric generating plants in Illinois to ensure
| 14 |
| power generating capacity into the future and to advance clean | 15 |
| coal technology and the use of Illinois coal are in the best | 16 |
| interests of all of
the citizens of Illinois. The Authority is | 17 |
| authorized to issue bonds to help
finance Clean Coal and Energy | 18 |
| projects pursuant to this
Section.
| 19 |
| (b) Definition. "Clean Coal and Energy projects" means new | 20 |
| electric
generating facilities or new gasification facilities , | 21 |
| as defined in
Section 605-332 of the Department of Commerce and
| 22 |
| Economic Opportunity Law of the Civil Administrative Code of | 23 |
| Illinois, which
may
include mine-mouth power plants, projects | 24 |
| that employ the use of clean coal
technology, projects to | 25 |
| provide scrubber technology for existing energy
generating |
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| plants, or projects to provide electric transmission | 2 |
| facilities or new gasification facilities .
| 3 |
| (c) Creation of reserve funds. The Authority may establish | 4 |
| and maintain one
or more reserve funds to enhance bonds issued | 5 |
| by the Authority for Clean Coal
and
Energy projects to develop | 6 |
| alternative energy sources, including renewable
energy | 7 |
| projects, projects to provide scrubber technology for existing | 8 |
| energy
generating plants or projects to provide electric | 9 |
| transmission facilities .
There may be one or more accounts in | 10 |
| these reserve funds in which there may be
deposited:
| 11 |
| (1) any proceeds of the bonds issued by the Authority | 12 |
| required to
be deposited therein by the terms of any | 13 |
| contract between the Authority and its
bondholders or any | 14 |
| resolution of the Authority;
| 15 |
| (2) any other moneys or funds of the Authority that it | 16 |
| may
determine to deposit therein from any other source; and
| 17 |
| (3) any other moneys or funds made available to the | 18 |
| Authority.
Subject to the terms of any pledge to the owners | 19 |
| of any bonds, moneys in any
reserve fund may be held and | 20 |
| applied to the payment of principal, premium, if
any, and | 21 |
| interest of such bonds.
| 22 |
| (d) Powers and duties. The Authority has the power:
| 23 |
| (1) To issue bonds in one or more series pursuant to | 24 |
| one or more
resolutions of the Authority for any Clean Coal | 25 |
| and Energy projects authorized
under this Section, within | 26 |
| the authorization set forth in subsections (e)
and (f).
|
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| (2) To provide for the funding of any reserves or other | 2 |
| funds or
accounts deemed necessary by the Authority in | 3 |
| connection with any bonds issued
by the Authority.
| 4 |
| (3) To pledge any funds of the Authority or funds made | 5 |
| available to
the Authority that may be applied to such | 6 |
| purpose as security for any bonds or
any guarantees, | 7 |
| letters of credit, insurance contracts or similar credit
| 8 |
| support
or liquidity instruments securing the bonds.
| 9 |
| (4) To enter into agreements or contracts with third | 10 |
| parties,
whether public or private, including, without | 11 |
| limitation, the United States of
America, the State or any | 12 |
| department or agency thereof, to obtain any
| 13 |
| appropriations, grants, loans or guarantees that are | 14 |
| deemed necessary or
desirable by the Authority. Any such | 15 |
| guarantee, agreement or contract may
contain terms and | 16 |
| provisions necessary or desirable in connection with the
| 17 |
| program, subject to the requirements established by the | 18 |
| Act.
| 19 |
| (5) To exercise such other powers as are necessary or | 20 |
| incidental to
the foregoing.
| 21 |
| (e) Clean Coal and Energy bond authorization and financing | 22 |
| limits. In
addition
to any other bonds authorized to be issued | 23 |
| under
Sections 801-40(w), 825-60, 830-25
and 845-5, the | 24 |
| Authority may have outstanding, at any time, bonds for the
| 25 |
| purpose
enumerated in this
Section 825-65 in an aggregate | 26 |
| principal amount that shall not
exceed $2,700,000,000, of which |
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| no more than $300,000,000 may be issued to
finance transmission | 2 |
| facilities, no more than $500,000,000 may be issued to
finance | 3 |
| scrubbers at existing generating plants, no more than | 4 |
| $500,000,000 may
be issued to finance alternative energy | 5 |
| sources, including renewable energy
projects and no more than | 6 |
| $1,400,000,000 may be issued to finance new electric
generating
| 7 |
| facilities or new gasification facilities , as defined in
| 8 |
| Section 605-332 of the Department of
Commerce and Economic | 9 |
| Opportunity Law of the Civil Administrative Code of
Illinois , | 10 |
| which may include mine-mouth power plants . An application for a | 11 |
| loan
financed from bond proceeds from a borrower or its | 12 |
| affiliates for a Clean Coal
and Energy project may not be | 13 |
| approved by the Authority for an amount in excess
of | 14 |
| $450,000,000 for any borrower or its affiliates. These bonds | 15 |
| shall not
constitute an indebtedness or obligation of the State | 16 |
| of Illinois and it shall
be plainly stated on the face of each | 17 |
| bond that it does not constitute an
indebtedness or obligation | 18 |
| of the State of Illinois, but is payable solely from
the | 19 |
| revenues, income or other assets of the Authority pledged | 20 |
| therefor.
| 21 |
| (f) Additional Clean Coal and Energy bond authorization and | 22 |
| financing
limits.
In addition to any other bonds authorized to | 23 |
| be issued under this Act, the
Authority may issue bonds for the | 24 |
| purpose enumerated in this
Section 825-65 in an
aggregate | 25 |
| principal amount that shall not exceed $300,000,000.
| 26 |
| (Source: P.A. 93-205, eff. 1-1-04.)
|
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| (20 ILCS 3501/825-75)
| 2 |
| Sec. 825-75. Additional Security. In the event that the | 3 |
| Authority
determines
that monies of the Authority will not be | 4 |
| sufficient for the payment of the
principal of and interest on | 5 |
| any bonds issued by the Authority under
Sections
825-65 through | 6 |
| 825-75 of this Act for new electric generating facilities or | 7 |
| new gasification facilities
for energy generation projects | 8 |
| that advance
clean coal technology and the use of Illinois coal
| 9 |
| during the next State fiscal
year, the Chairperson, as soon as | 10 |
| practicable, shall certify to the Governor
the
amount required | 11 |
| by the Authority to enable it to pay such principal, premium,
| 12 |
| if
any, and interest on such bonds. The Governor shall submit | 13 |
| the amount so
certified to the General Assembly as soon as | 14 |
| practicable, but no later than the
end of the current State | 15 |
| fiscal year. This subsection shall not
apply to any
bonds or | 16 |
| notes as to which the Authority shall have determined, in the
| 17 |
| resolution authorizing the issuance of the bonds or notes, that | 18 |
| this subsection
shall not apply. Whenever the Authority makes | 19 |
| such a determination, that fact
shall be plainly stated on the | 20 |
| face of the bonds or notes and that fact should
also be | 21 |
| reported to the Governor.
In the event of a withdrawal of | 22 |
| moneys from a reserve fund established with
respect to any | 23 |
| issue or issues of bonds of the Authority to pay principal,
| 24 |
| premium, if any, and interest on such bonds, the Chairman of | 25 |
| the Authority, as
soon as practicable, shall certify to the |
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| Governor the amount required to
restore the reserve fund to the | 2 |
| level required in the resolution or indenture
securing those | 3 |
| bonds. The Governor shall submit the amount so certified to the
| 4 |
| General Assembly as soon as practicable, but no later than the | 5 |
| end of the
current State fiscal year. The Authority shall | 6 |
| obtain written approval from the
Governor for any bonds and | 7 |
| notes to be issued under this Section.
| 8 |
| (Source: P.A. 93-205, eff. 1-1-04.)
| 9 |
| Section 99. Effective date. This Act takes effect upon | 10 |
| becoming law.
|
|