(70 ILCS 532/40) Sec. 40. Bonds.
(a) The Authority, with the written approval of the Governor, shall have the
continuing power to issue
bonds, notes, or other evidences of indebtedness in an aggregate amount outstanding not to
exceed $250,000,000 for the
following purposes: (i) development, construction, acquisition, or improvement
of projects, including those
established by business entities locating or expanding property within the
territorial jurisdiction of the
Authority; (ii) entering into venture capital agreements with businesses
locating or expanding within the
territorial jurisdiction of the Authority; (iii) acquisition and improvement of
any property necessary and
useful in connection therewith; and (iv) for the purposes of the Employee
Ownership Assistance Act. For
the purpose of evidencing the obligations of the Authority to repay any money
borrowed, the Authority
may, pursuant to resolution, from time to time, issue and dispose of its interest-bearing revenue bonds,
notes, or other evidences of indebtedness and may also from time to time issue and dispose of such bonds,
notes, or other evidences of indebtedness to refund, at maturity, at a redemption date or in advance of
either, any bonds, notes, or other evidences of indebtedness pursuant to redemption provisions or at any
time before maturity. All such bonds, notes, or other evidences of indebtedness shall be payable solely and
only from the revenues or income to be derived from loans made with respect to projects, from the leasing
or sale of the projects, or from any other funds available to the Authority for such purposes. The bonds,
notes, or other evidences of indebtedness may bear such date or dates, may mature at such time or times not
exceeding 40 years from their respective dates, may bear interest at such rate or rates not exceeding the
maximum rate permitted by the Bond Authorization Act, may be in such form, may carry such registration
privileges, may be executed in such manner, may be payable at such place or places, may be made subject
to redemption in such manner and upon such terms, with or without premium, as is stated on the face
thereof, may be authenticated in such manner and may contain such terms and
covenants as may be
provided by an applicable resolution.
(b) The holder or holders of any bonds, notes, or other evidences of
indebtedness issued by the
Authority may bring suits at law or proceedings in equity to compel the
performance and observance by
any corporation or person or by the Authority or any of its agents or employees
of any contract or covenant
made with the holders of the bonds, notes, or other evidences of indebtedness,
to compel such corporation,
person, the Authority, and any of its agents or employees to perform any duties
required to be performed
for the benefit of the holders of the bonds, notes, or other evidences of
indebtedness by the provision of the
resolution authorizing their issuance and to enjoin the corporation, person,
the Authority, and any of its
agents or employees from taking any action in conflict with any contract or
covenant.
(c) If the Authority fails to pay the principal of or interest on any of the
bonds or premium, if any, as the
bond becomes due, a civil action to compel payment may be instituted in the
appropriate circuit court by
the holder or holders of the bonds on which the default of payment exists or by
an indenture trustee acting
on behalf of the holders. Delivery of a summons and a copy of the complaint to
the chairman of the Board
shall constitute sufficient service to give the circuit court jurisdiction over
the subject matter of the suit and
jurisdiction over the Authority and its officers named as defendants for the
purpose of compelling such
payment. Any case, controversy, or cause of action concerning the validity of
this Act relates to the
revenue of the State of Illinois.
(d) Notwithstanding the form and tenor of any bond, note, or other evidence
of indebtedness and in
the absence of any express recital on its face that it is non-negotiable, all
such bonds, notes, and other
evidences of indebtedness shall be negotiable instruments. Pending the
preparation and execution of any
bonds, notes, or other evidences of indebtedness, temporary bonds, notes, or
evidences of indebtedness may
be issued as provided by ordinance.
(e) To secure the payment of any or all of such bonds, notes, or other
evidences of indebtedness, the
revenues to be received by the Authority from a lease agreement or loan
agreement shall be pledged, and,
for the purpose of setting forth the covenants and undertakings of the
Authority in connection with the
issuance of the bonds, notes, or other evidences of indebtedness and the
issuance of any additional bonds,
notes or other evidences of indebtedness payable from such revenues, income, or other funds to be derived
from projects, the Authority may execute and deliver a mortgage or trust agreement. A remedy for any
breach or default of the terms of any mortgage or trust agreement by the Authority may be by mandamus
proceeding in the appropriate circuit court to compel performance and compliance under the terms of the
mortgage or trust agreement, but the trust agreement may prescribe by whom or on whose behalf the action
may be instituted.
(f) Bonds or notes shall be secured as provided in the authorizing ordinance which may include,
notwithstanding any other provision of this Act, in addition to any other security, a specific pledge,
assignment of and lien on, or security interest in any or all revenues or money of the Authority, from
whatever source, which may, by law, be used for debt service purposes and a
specific pledge, or assignment
of and lien on, or security interest in any funds or accounts established or
provided for by ordinance of the
Authority authorizing the issuance of the bonds or notes.
(g) In the event that the Authority determines that moneys of the Authority
will not be sufficient for the
payment of the principal of and interest on its bonds during the next State
fiscal year, the chairman, as soon
as practicable, shall certify to the Governor the amount required by the
Authority to enable it to pay the
principal of and interest on the bonds. The Governor shall submit the certified
amount to the General
Assembly as soon as practicable, but no later than the end of the current State
fiscal year. This Section shall
not apply to any bonds or notes to which the Authority determines, in the
resolution authorizing the
issuance of the bonds or notes, that this Section shall not apply. Whenever the
Authority makes this
determination, it shall be plainly stated on the face of the bonds or notes and
the determination shall also be
reported to the Governor.
In the event of a withdrawal of moneys from a reserve fund established with
respect to any issue or
issues of bonds of the Authority to pay principal or interest on those bonds,
the chairman of the Authority,
as soon as practicable, shall certify to the Governor the amount required to
restore the reserve fund to the
level required in the resolution or indenture securing those bonds. The
Governor shall submit the certified
amount to the General Assembly as soon as practicable, but no later than the
end of the current State fiscal
year. This subsection (g) shall not apply to any bond issued on or after the effective date of this amendatory Act of the 98th General Assembly.
(h) The State of Illinois pledges to and agrees with the holders of the
bonds and notes of the Authority
issued pursuant to this Section that the State will not limit or alter the rights and powers vested in the
Authority by this Act so as to impair the terms of any contract made by the Authority with the holders of
bonds or notes or in any way impair the rights and remedies of those holders until the bonds and notes,
together with interest thereon, with interest on any unpaid installments of interest, and all costs and
expenses in connection with any action or proceedings by or on behalf of the holders, are fully met and
discharged. In addition, the State pledges to and agrees with the holders of the bonds and notes of the
Authority issued pursuant to this Section that the State will not limit or alter the basis on which State funds
are to be paid to the Authority as provided in this Act, or the use of such funds, so as to impair the terms of
any such contract. The Authority is authorized to include these pledges and agreements of the State in any
contract with the holders of bonds or notes issued pursuant to this Section.
(i) (Blank).
(Source: P.A. 98-750, eff. 1-1-15 .) |