(315 ILCS 20/39) (from Ch. 67 1/2, par. 289)
Sec. 39.
Limitation upon issuance of stock and mortgages.
(1) A Neighborhood Redevelopment Corporation may issue shares and
certificates of shares, both common and preferred, and Mortgages, both
senior and junior, in an amount, all securities in all, not to exceed
the Development Cost of the Neighborhood Redevelopment Corporation,
determined as provided by Section 37 of this Act. For the purpose of the
enforcement of this provision, prior to the issuance of securities the
Neighborhood Redevelopment Corporation shall make application to the
Redevelopment Commission for an order approving the issuance and stating
the amount thereof and the purpose or purposes to which the securities
or the proceeds thereof are to be applied; Provided, that the securities
shall be issued for the following purposes and for no others, namely:
For the defrayment of Development Cost, or for the discharge or
refunding of securities originally issued to defray such Development
Cost. Upon the approval of the application, the Neighborhood
Redevelopment Corporation may proceed to issue the securities described
in the application in the amount and for the purpose or purposes so
approved; provided, that the prior approval of the Redevelopment
Commission shall not be requisite to the issuance of the common shares
of Neighborhood Redevelopment Corporation issued upon pre-incorporation
subscription as provided in paragraph 9 of Section 7 of this Act;
provided, further, that nothing herein contained shall be taken as
exempting such securities from the provisions of the Illinois Securities
Law, unless by the terms of that law the securities shall be so exempt.
(2) The provisions of paragraph 1 of this Section shall apply, as
far as pertinent, to any change in the capital structure of a
Neighborhood Redevelopment Corporation, whether effected by increase or
decrease of capital stock, by amendment to the articles of
incorporation, or otherwise.
(3) No Neighborhood Redevelopment Corporation shall apply the
securities, or any part thereof, or any of the proceeds thereof, to any
purpose not specified in the order of the Redevelopment Commission or to
any purpose specified in the order of the Redevelopment Commission in
excess of the amount authorized for that purpose. No Neighborhood
Redevelopment Corporation shall issue or dispose of the securities on
any terms less favorable than those specified in the order of the
Redevelopment Commission. The Redevelopment Commission shall have the
power to require Neighborhood Redevelopment Corporations to account for
the disposition of the proceeds of the securities in such form and
detail as it may find to be advisable, and to establish such
administrative rules and regulations as it may find to be reasonable and
necessary to insure the disposition of those proceeds for the purpose or
purposes specified in the Act.
(4) The fact that the Redevelopment Commission has approved the
issuance of the securities shall not be held to mean that the
Redevelopment Commission has in any way endorsed their merits, and it
shall be unlawful for any person or corporation so to represent.
(Source: Laws 1941, vol. 1, p. 431.)
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