Rep. Rita Mayfield

Filed: 5/20/2015





09900SB1854ham003LRB099 11056 AWJ 35857 a


2    AMENDMENT NO. ______. Amend Senate Bill 1854, AS AMENDED,
3with reference to page and line numbers of House Amendment No.
42, on page 1, by replacing line 5 with "Authority Act is
5amended by changing Sections 4 and 7 as follows:"; and
6on page 5, immediately after line 24, by inserting the
8    "(70 ILCS 530/7)  (from Ch. 85, par. 7157)
9    Sec. 7. Bonds.
10    (a) The Authority, with the written approval of the
11Governor, shall have the continuing power to issue bonds,
12notes, or other evidences of indebtedness in an aggregate
13amount outstanding not to exceed $500,000,000 for the purpose
14of developing, constructing, acquiring or improving projects,
15including those established by business entities locating or
16expanding property within the territorial jurisdiction of the



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1Authority, for entering into venture capital agreements with
2businesses locating or expanding within the territorial
3jurisdiction of the Authority, for acquiring and improving any
4property necessary and useful in connection therewith and for
5the purposes of the Employee Ownership Assistance Act. For the
6purpose of evidencing the obligations of the Authority to repay
7any money borrowed, the Authority may, pursuant to resolution,
8from time to time issue and dispose of its interest bearing
9revenue bonds, notes or other evidences of indebtedness and may
10also from time to time issue and dispose of such bonds, notes
11or other evidences of indebtedness to refund, at maturity, at a
12redemption date or in advance of either, any bonds, notes or
13other evidences of indebtedness pursuant to redemption
14provisions or at any time before maturity. All such bonds,
15notes or other evidences of indebtedness shall be payable
16solely and only from the revenues or income to be derived from
17loans made with respect to projects, from the leasing or sale
18of the projects or from any other funds available to the
19Authority for such purposes. The bonds, notes or other
20evidences of indebtedness may bear such date or dates, may
21mature at such time or times not exceeding 40 years from their
22respective dates, may bear interest at such rate or rates not
23exceeding the maximum rate permitted by "An Act to authorize
24public corporations to issue bonds, other evidences of
25indebtedness and tax anticipation warrants subject to interest
26rate limitations set forth therein", approved May 26, 1970, as



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1amended, may be in such form, may carry such registration
2privileges, may be executed in such manner, may be payable at
3such place or places, may be made subject to redemption in such
4manner and upon such terms, with or without premium as is
5stated on the face thereof, may be authenticated in such manner
6and may contain such terms and covenants as may be provided by
7an applicable resolution.
8    (b-1) The holder or holders of any bonds, notes or other
9evidences of indebtedness issued by the Authority may bring
10suits at law or proceedings in equity to compel the performance
11and observance by any corporation or person or by the Authority
12or any of its agents or employees of any contract or covenant
13made with the holders of such bonds, notes or other evidences
14of indebtedness, to compel such corporation, person, the
15Authority and any of its agents or employees to perform any
16duties required to be performed for the benefit of the holders
17of any such bonds, notes or other evidences of indebtedness by
18the provision of the resolution authorizing their issuance and
19to enjoin such corporation, person, the Authority and any of
20its agents or employees from taking any action in conflict with
21any such contract or covenant.
22    (b-2) If the Authority fails to pay the principal of or
23interest on any of the bonds or premium, if any, as the same
24become due, a civil action to compel payment may be instituted
25in the appropriate circuit court by the holder or holders of
26the bonds on which such default of payment exists or by an



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1indenture trustee acting on behalf of such holders. Delivery of
2a summons and a copy of the complaint to the Chairman of the
3Board shall constitute sufficient service to give the circuit
4court jurisdiction of the subject matter of such a suit and
5jurisdiction over the Authority and its officers named as
6defendants for the purpose of compelling such payment. Any
7case, controversy or cause of action concerning the validity of
8this Act relates to the revenue of the State of Illinois.
9    (c) Notwithstanding the form and tenor of any such bonds,
10notes or other evidences of indebtedness and in the absence of
11any express recital on the face thereof that it is
12non-negotiable, all such bonds, notes and other evidences of
13indebtedness shall be negotiable instruments. Pending the
14preparation and execution of any such bonds, notes or other
15evidences of indebtedness, temporary bonds, notes or evidences
16of indebtedness may be issued as provided by ordinance.
17    (d) To secure the payment of any or all of such bonds,
18notes or other evidences of indebtedness, the revenues to be
19received by the Authority from a lease agreement or loan
20agreement shall be pledged, and, for the purpose of setting
21forth the covenants and undertakings of the Authority in
22connection with the issuance thereof and the issuance of any
23additional bonds, notes or other evidences of indebtedness
24payable from such revenues, income or other funds to be derived
25from projects, the Authority may execute and deliver a mortgage
26or trust agreement. A remedy for any breach or default of the



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1terms of any such mortgage or trust agreement by the Authority
2may be by mandamus proceedings in the appropriate circuit court
3to compel the performance and compliance therewith, but the
4trust agreement may prescribe by whom or on whose behalf such
5action may be instituted.
6    (e) Such bonds or notes shall be secured as provided in the
7authorizing ordinance which may, notwithstanding any other
8provision of this Act, include in addition to any other
9security a specific pledge or assignment of and lien on or
10security interest in any or all revenues or money of the
11Authority from whatever source which may by law be used for
12debt service purposes and a specific pledge or assignment of
13and lien on or security interest in any funds or accounts
14established or provided for by ordinance of the Authority
15authorizing the issuance of such bonds or notes.
16    (f) (Blank). In the event that the Authority determines
17that monies of the Authority will not be sufficient for the
18payment of the principal of and interest on its bonds during
19the next State fiscal year, the Chairman, as soon as
20practicable, shall certify to the Governor the amount required
21by the Authority to enable it to pay such principal of and
22interest on the bonds. The Governor shall submit the amount so
23certified to the General Assembly as soon as practicable, but
24no later than the end of the current State fiscal year. This
25Section shall not apply to any bonds or notes as to which the
26Authority shall have determined, in the resolution authorizing



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1the issuance of the bonds or notes, that this Section shall not
2apply. Whenever the Authority makes such a determination, that
3fact shall be plainly stated on the face of the bonds or notes
4and that fact shall also be reported to the Governor.
5    In the event of a withdrawal of moneys from a reserve fund
6established with respect to any issue or issues of bonds of the
7Authority to pay principal or interest on those bonds, the
8Chairman of the Authority, as soon as practicable, shall
9certify to the Governor the amount required to restore the
10reserve fund to the level required in the resolution or
11indenture securing those bonds. The Governor shall submit the
12amount so certified to the General Assembly as soon as
13practicable, but no later than the end of the current State
14fiscal year. This subsection (f) shall not apply to any bond
15issued on or after the effective date of this amendatory Act of
16the 97th General Assembly.
17    (g) The State of Illinois pledges to and agrees with the
18holders of the bonds and notes of the Authority issued pursuant
19to this Section that the State will not limit or alter the
20rights and powers vested in the Authority by this Act so as to
21impair the terms of any contract made by the Authority with
22such holders or in any way impair the rights and remedies of
23such holders until such bonds and notes, together with interest
24thereon, with interest on any unpaid installments of interest,
25and all costs and expenses in connection with any action or
26proceedings by or on behalf of such holders, are fully met and



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1discharged. In addition, the State pledges to and agrees with
2the holders of the bonds and notes of the Authority issued
3pursuant to this Section that the State will not limit or alter
4the basis on which State funds are to be paid to the Authority
5as provided in this Act, or the use of such funds, so as to
6impair the terms of any such contract. The Authority is
7authorized to include these pledges and agreements of the State
8in any contract with the holders of bonds or notes issued
9pursuant to this Section.
10    (h) (Blank).
11(Source: P.A. 97-312, eff. 8-11-11; 98-750, eff. 1-1-15.)".