Full Text of HB5616 97th General Assembly
HB5616eng 97TH GENERAL ASSEMBLY |
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| 1 | | AN ACT concerning local government.
| 2 | | Be it enacted by the People of the State of Illinois,
| 3 | | represented in the General Assembly:
| 4 | | Section 5. The Will-Kankakee Regional Development | 5 | | Authority Law is amended by changing Section 7 and by adding | 6 | | Section 14 as follows:
| 7 | | (70 ILCS 535/7) (from Ch. 85, par. 7457)
| 8 | | Sec. 7. Bonds.
| 9 | | (a) The Authority, with the written approval of the | 10 | | Governor,
shall have the continuing power to issue bonds, | 11 | | notes, or other evidences
of indebtedness in an aggregate | 12 | | amount outstanding not to exceed $250,000,000 $100,000,000 for | 13 | | the
purpose of developing, constructing, acquiring or | 14 | | improving projects,
including those established by business | 15 | | entities locating or expanding
property within the territorial | 16 | | jurisdiction of the Authority, for entering
into venture | 17 | | capital agreements with businesses locating or expanding
| 18 | | within the territorial jurisdiction of the Authority, for | 19 | | acquiring and
improving any property necessary and useful in | 20 | | connection therewith and for
the purposes of the Employee | 21 | | Ownership Assistance Act. For the purpose of
evidencing the | 22 | | obligations of the Authority to repay any money borrowed,
the | 23 | | Authority may, pursuant to resolution, from time to time issue |
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| 1 | | and
dispose of its interest bearing revenue bonds, notes or | 2 | | other evidences of
indebtedness and may also from time to time | 3 | | issue and dispose of such
bonds, notes or other evidences of | 4 | | indebtedness to refund, at maturity, at
a redemption date or in | 5 | | advance of either, any bonds, notes or other
evidences of | 6 | | indebtedness pursuant to redemption provisions or at any time
| 7 | | before maturity. All such bonds, notes or other evidences of | 8 | | indebtedness
shall be payable from the revenues or income to be | 9 | | derived from loans made
with respect to projects, from the | 10 | | leasing or sale of the projects or from
any other funds | 11 | | available to the Authority for such purposes. The bonds,
notes | 12 | | or other evidences of indebtedness may bear such date or dates, | 13 | | may
mature at such time or times not exceeding 40 years from | 14 | | their respective
dates, may bear interest at such rate or rates | 15 | | not exceeding the maximum
rate permitted by the Bond | 16 | | Authorization Act, may be in such form, may
carry such | 17 | | registration privileges, may be executed in such manner, may be
| 18 | | payable at such place or places, may be made subject to | 19 | | redemption in such
manner and upon such terms, with or without | 20 | | premium as is stated on the
face thereof, may be authenticated | 21 | | in such manner and may contain such
terms and covenants as may | 22 | | be provided by an applicable resolution.
| 23 | | (b-1) The holder or holders of any bonds, notes or other | 24 | | evidences of
indebtedness issued by the Authority may bring | 25 | | suits at law or proceedings
in equity to compel the performance | 26 | | and observance by any corporation or
person or by the Authority |
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| 1 | | or any of its agents or employees of any
contract or covenant | 2 | | made with the holders of such bonds, notes or other
evidences | 3 | | of indebtedness, to compel such corporation, person, the
| 4 | | Authority and any of its agents or employees to perform any | 5 | | duties required
to be performed for the benefit of the holders | 6 | | of any such bonds, notes or
other evidences of indebtedness by | 7 | | the provision of the resolution
authorizing their issuance and | 8 | | to enjoin such corporation, person, the
Authority and any of | 9 | | its agents or employees from taking any action in
conflict with | 10 | | any such contract or covenant.
| 11 | | (b-2) If the Authority fails to pay the principal of or | 12 | | interest on any
of the bonds or premium, if any, as the same | 13 | | become due, a civil action to
compel payment may be instituted | 14 | | in the appropriate circuit court by the
holder or holders of | 15 | | the bonds on which such default of payment exists or
by an | 16 | | indenture trustee acting on behalf of such holders. Delivery of | 17 | | a
summons and a copy of the complaint to the Chairman of the | 18 | | Board shall
constitute sufficient service to give the circuit | 19 | | court jurisdiction of the
subject matter of such a suit and | 20 | | jurisdiction over the Authority and its
officers named as | 21 | | defendants for the purpose of compelling such payment.
Any | 22 | | case, controversy or cause of action concerning the validity of | 23 | | this Act
relates to the revenue of the State of Illinois.
| 24 | | (c) Notwithstanding the form and tenor of any such bonds, | 25 | | notes or other
evidences of indebtedness and in the absence of | 26 | | any express recital on the
face thereof that it is |
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| 1 | | non-negotiable, all such bonds, notes and other
evidences of | 2 | | indebtedness shall be negotiable instruments. Pending the
| 3 | | preparation and execution of any such bonds, notes or other | 4 | | evidences of
indebtedness, temporary bonds, notes or evidences | 5 | | of indebtedness may be
issued as provided by ordinance.
| 6 | | (d) To secure the payment of any or all of such bonds, | 7 | | notes or other
evidences of indebtedness, the revenues to be | 8 | | received by the Authority from
a lease agreement or loan | 9 | | agreement shall be pledged, and, for the purpose
of setting | 10 | | forth the covenants and undertakings of the Authority in
| 11 | | connection with the issuance thereof and the issuance of any | 12 | | additional
bonds, notes or other evidences of indebtedness | 13 | | payable from such revenues,
income or other funds to be derived | 14 | | from projects, the Authority may
execute and deliver a mortgage | 15 | | or trust agreement. A remedy for any breach
or default of the | 16 | | terms of any such mortgage or trust agreement by the
Authority | 17 | | may be by mandamus proceedings in the appropriate circuit court
| 18 | | to compel the performance and compliance therewith, but the | 19 | | trust agreement
may prescribe by whom or on whose behalf such | 20 | | action may be instituted.
| 21 | | (e) Such bonds or notes shall be secured as provided in the | 22 | | authorizing
ordinance which may, notwithstanding any other | 23 | | provision of this Act,
include in addition to any other | 24 | | security a specific pledge or assignment
of and lien on or | 25 | | security interest in any or all revenues or money of the
| 26 | | Authority from whatever source which may by law be used for |
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| 1 | | debt
service purposes and a specific pledge or assignment of | 2 | | and lien on or
security interest in any funds or accounts | 3 | | established or provided for by
ordinance of the Authority | 4 | | authorizing the issuance of such bonds or notes.
| 5 | | (f) In the event that the Authority determines that monies | 6 | | of the
Authority will not be sufficient for the payment of the | 7 | | principal of and
interest on its bonds during the next State | 8 | | fiscal year, the
Chairman, as soon as practicable, shall | 9 | | certify to the Governor the
amount required by the Authority to | 10 | | enable
it to pay such principal of and interest on the bonds.
| 11 | | The Governor shall submit the amount so certified to the | 12 | | General Assembly
as soon as practicable, but no later than the | 13 | | end of the current State fiscal year.
This subsection shall not | 14 | | apply to any bonds or notes as to which the
Authority shall | 15 | | have determined, in the resolution authorizing the issuance
of | 16 | | the bonds or notes, that this subsection shall not apply. | 17 | | Whenever the
Authority makes such a determination, that fact | 18 | | shall be plainly stated on
the face of the bonds or notes and | 19 | | that fact shall also be reported to the
Governor. This | 20 | | subsection (f) shall not apply to any bond issued on or after | 21 | | the effective date of this amendatory Act of the 97th General | 22 | | Assembly.
| 23 | | In the event of a withdrawal of moneys from a reserve fund | 24 | | established
with respect to any issue or issues of bonds of the | 25 | | Authority to pay
principal or interest on those bonds, the | 26 | | Chairman of the Authority, as
soon as practicable, shall |
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| 1 | | certify to the Governor the amount required
to restore the | 2 | | reserve fund to the level required in the
resolution or | 3 | | indenture securing those bonds.
The Governor shall submit the | 4 | | amount so certified to the General Assembly
as soon as | 5 | | practicable, but no later than the end of the current State | 6 | | fiscal year.
| 7 | | (g) The State of Illinois pledges to and agrees with the | 8 | | holders of the
bonds and notes of the Authority issued pursuant | 9 | | to this Section that the
State will not limit or alter the | 10 | | rights and powers vested in the Authority
by this Act so as to | 11 | | impair the terms of any contract made by the Authority
with | 12 | | such holders or in any way impair the rights and remedies of | 13 | | such
holders until such bonds and notes, together with interest | 14 | | thereon, with
interest on any unpaid installments of interest, | 15 | | and all costs and expenses
in connection with any action or | 16 | | proceedings by or on behalf of such
holders, are fully met and | 17 | | discharged. In addition, the State pledges to
and agrees with | 18 | | the holders of the bonds and notes of the Authority issued
| 19 | | pursuant to this Section that the State will not limit or alter | 20 | | the basis
on which State funds are to be paid to the Authority | 21 | | as provided in this
Act, or the use of such funds, so as to | 22 | | impair the terms of any such
contract. The Authority is | 23 | | authorized to include these pledges and
agreements of the State | 24 | | in any contract with the holders of bonds or notes
issued | 25 | | pursuant to this Section.
| 26 | | (Source: P.A. 86-1481; 87-778.)
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| 1 | | (70 ILCS 535/14 new) | 2 | | Sec. 14. Bonds and notes; exemption from taxation. The | 3 | | creation of the Authority is in all respects for the benefit of | 4 | | the people of Illinois and for the improvement of their health, | 5 | | safety, welfare, comfort, and security, and its purposes are | 6 | | public purposes. In consideration thereof, the notes and bonds | 7 | | of the Authority issued pursuant to this Act and the income | 8 | | from these notes and bonds may be free from all taxation by the | 9 | | State or its political subdivisions, except for estate, | 10 | | transfer, and inheritance taxes. The exemption from taxation | 11 | | set forth in this Section shall apply to the income on any | 12 | | notes or bonds of the Authority only if the Authority in its | 13 | | sole judgment determines that the exemption enhances the | 14 | | marketability of the bonds or notes or reduces the interest | 15 | | rates that would otherwise be borne by the bonds or notes. For | 16 | | purposes of Section 250 of the Illinois Income Tax Act, the | 17 | | exemption of the Authority shall terminate after all of the | 18 | | bonds have been paid. The amount of the income that shall be | 19 | | added and then subtracted on the Illinois income tax return of | 20 | | a taxpayer, subject to Section 203 of the Illinois Income Tax | 21 | | Act, from federal adjusted gross income or federal taxable | 22 | | income in computing Illinois base income shall be the interest | 23 | | net of any bond premium amortization.
| 24 | | Section 99. Effective date. This Act takes effect upon | 25 | | becoming law.
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