Full Text of HB0176 095th General Assembly
HB0176 95TH GENERAL ASSEMBLY
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95TH GENERAL ASSEMBLY
State of Illinois
2007 and 2008 HB0176
Introduced 1/19/2007, by Rep. Jim Watson SYNOPSIS AS INTRODUCED: |
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Amends the Illinois Development Finance Authority Act. Provides that specialized livestock operations include livestock operations using anaerobic digestors to generate electricity for the purposes of a Section providing certain financing benefits to livestock operations.
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| FISCAL NOTE ACT MAY APPLY | |
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A BILL FOR
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HB0176 |
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LRB095 03786 HLH 23816 b |
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| AN ACT concerning State government.
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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 Section 830-50 as follows:
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| (20 ILCS 3501/830-50)
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| Sec. 830-50. Specialized Livestock Guarantee Program.
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| (a) The Authority is authorized to issue State Guarantees | 9 |
| to lenders for
loans
to finance or refinance debts for | 10 |
| specialized livestock operations that are or
will be located in | 11 |
| Illinois. For purposes of this
Section, a "specialized
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| livestock operation" includes, but is not limited to, dairy, | 13 |
| beef, and swine
enterprises. For purposes of this Section, a | 14 |
| specialized livestock operation also includes livestock | 15 |
| operations using anaerobic digestors to generate electricity.
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| (b) Lenders shall apply for the State Guarantees on forms | 17 |
| provided by the
Authority and certify that the application and | 18 |
| any other documents submitted
are true and correct. The lender | 19 |
| or borrower, or both in combination, shall pay
an | 20 |
| administrative fee as determined by the Authority. The | 21 |
| applicant shall be
responsible for paying any fee or charge | 22 |
| involved in recording mortgages,
releases, financing | 23 |
| statements, insurance for secondary market issues, and any
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HB0176 |
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LRB095 03786 HLH 23816 b |
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| other similar fee or charge that the Authority may require. The | 2 |
| application
shall, at a minimum, contain the farmer's name, | 3 |
| address, present credit and
financial information, including | 4 |
| cash flow statements, financial statements,
balance sheets, | 5 |
| and any other information pertinent to the application, and the
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| collateral to be used to secure the State Guarantee. In | 7 |
| addition, the borrower
must certify to the Authority that, at | 8 |
| the time the State Guarantee is
provided,
the borrower will not | 9 |
| be delinquent in the repayment of any debt. The lender
must | 10 |
| agree to charge a fixed or adjustable interest rate that the | 11 |
| Authority
determines to be below the market rate of interest | 12 |
| generally available to the
borrower. If both the lender and | 13 |
| applicant agree, the interest rate on the
State guaranteed loan | 14 |
| can be converted to a fixed interest rate at any time
during | 15 |
| the term of the loan.
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| (c) State Guarantees provided under this
Section (i) shall | 17 |
| not exceed
$1,000,000 per applicant, (ii) shall be no longer | 18 |
| than 15 years in duration,
and
(iii) shall be subject to an | 19 |
| annual review and renewal by the lender and the
Authority. An | 20 |
| applicant may use this program more than once, provided that | 21 |
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aggregate principal amount of State Guarantees under this
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| Section to that
applicant does not exceed $1,000,000. A State | 23 |
| Guarantee shall not be revoked by
the Authority without a | 24 |
| 90-day notice, in writing, to all parties.
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| (d) The Authority shall provide or renew a State Guarantee | 26 |
| to a lender if:
(i) The lender pays a fee equal to 25 basis |
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HB0176 |
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LRB095 03786 HLH 23816 b |
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| points on the loan to the Authority
on
an annual basis. (ii) | 2 |
| The application provides collateral acceptable to the
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| Authority that is at least equal to the State Guarantee. (iii) | 4 |
| The lender
assumes all responsibility and costs for pursuing | 5 |
| legal action on collecting
any
loan that is delinquent or in | 6 |
| default. (iv) The lender is at risk for the first
15% of the | 7 |
| outstanding principal of the note for which the State Guarantee | 8 |
| is
provided.
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| (e) The Illinois Farmer and Agribusiness Loan Guarantee | 10 |
| Fund may be used to
secure State Guarantees issued under this
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| Section as provided in
Section 830-35.
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| (f) Notwithstanding the provisions of this
Section 830-50 | 13 |
| with respect to the
specialized livestock operations and | 14 |
| lenders who may obtain State Guarantees,
the Authority may | 15 |
| promulgate rules establishing the eligibility of specialized
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| livestock operations and lenders to participate in the State | 17 |
| Guarantee program
and the terms, standards, and procedures that | 18 |
| will apply, when the Authority
finds that emergency conditions | 19 |
| in Illinois agriculture have created the need
for State | 20 |
| Guarantees pursuant to terms, standards, and procedures other | 21 |
| than
those specified in this Section.
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| (Source: P.A. 93-205, eff. 1-1-04.)
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