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90_HB2209
70 ILCS 508/15
70 ILCS 508/35
Amends the Joliet Arsenal Development Authority Act.
Deletes the provision that provides that if the Authority
determines that its moneys will not be sufficient for the
principal and interest payments on its revenue bonds, the
Chairman of the Authority shall certify to the Governor the
amount required by the Authority and the Governor shall
submit the amount to the General Assembly no later than the
end of the current fiscal year. Deletes the provision that
provides that the Chairman shall certify to the Governor the
amount required to restore the reserve fund to the level
required in the resolution or indenture securing revenue
bonds if the Authority withdraws funds from the reserve funds
for a principal or interest payment on revenue bonds.
Increases the Board of Directors from 9 to 11 members.
Provides that the 2 new members shall be appointed by the
Governor from Will County, with the advice and consent of the
Senate. States that the new members' terms shall commence 30
days after the effective date of this amendatory Act.
Specifies the initial terms for the new members. Effective
immediately.
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1 AN ACT to amend the Joliet Arsenal Development Authority
2 Act by changing Sections 15 and 35.
3 Be it enacted by the People of the State of Illinois,
4 represented in the General Assembly:
5 Section 5. The Joliet Arsenal Development Authority Act
6 is amended by changing Sections 15 and 35 as follows:
7 (70 ILCS 508/15)
8 Sec. 15. Creation of Authority; Board members; officers.
9 (a) The Joliet Arsenal Development Authority is created
10 as a political subdivision, body politic, and municipal
11 corporation.
12 (b) The territorial jurisdiction of the Authority shall
13 extend over all of the territory, consisting of 3,000 acres,
14 more or less, that is commonly known and described as the
15 Joliet ammunition plant and arsenal. The legal description of
16 the territory is (1) approximately 1,900 acres located at
17 the Arsenal, the approximate legal description of which
18 includes part of section 30, Jackson Township, T34N R10E, and
19 sections or part of sections 24, 25, 26, 35, and 36,
20 Channahon Township, T34N R9E, Will County, Illinois, as
21 depicted in the Arsenal Land Use Concept; and
22 (2) approximately 1,100 acres, the approximate legal
23 description of which includes part of sections 16, 17, and
24 18, Florence Township, T33N R10E, Will County, Illinois, as
25 depicted in the Arsenal Land Use Concept.
26 (c) The governing and administrative powers of the
27 Authority shall be vested in its Board of Directors
28 consisting of 11 9 members, 6 4 of whom shall be appointed by
29 the Governor from Will County, by and with the advice and
30 consent of the Senate, and 5 of whom shall be appointed by
31 the county board of Will County. All members appointed to
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1 the Board shall be residents of Will County, but of the 5
2 members who are appointed by the county board of Will County,
3 one shall be a resident of the City of Joliet, one a resident
4 of the City of Wilmington, one a resident of the Village of
5 Elwood, one a resident of the Village of Manhattan, and one a
6 resident of the Village of Symerton. Each city council or
7 village board shall recommend 3 individuals who are residents
8 of the city or village to the Will County board to be members
9 of the Board of Directors. The Will County Board shall
10 choose one of the recommended individuals from each city and
11 village. All persons appointed as members of the Board shall
12 have recognized ability and experience in one or more of the
13 following areas: economic development, finance, banking,
14 industrial development, small business management, real
15 estate development, community development, venture finance,
16 organized labor, or civic, community, or neighborhood
17 organization.
18 (d) The terms of the 9 initial appointees to the
19 Authority shall commence 30 days after the effective date of
20 this Act. Of the 9 members initially appointed (i) 2 of the
21 gubernatorial appointees and 2 of the non-gubernatorial
22 appointees shall be appointed to serve terms expiring on the
23 third Monday in January, 1997 and (ii) 2 of the gubernatorial
24 appointees and 3 of the non-gubernatorial appointees shall be
25 appointed to serve terms expiring on the third Monday in
26 January, 1999. The terms of the 2 members added by this
27 amendatory Act of 1997 shall commence 30 days after the
28 effective date of this amendatory Act of 1997. One shall be
29 appointed to serve a term expiring on the third Monday in
30 January 1999, and one shall be appointed to serve a term
31 expiring the third Monday in January 2001. All successors
32 shall be appointed by the original appointing authority and
33 hold office for a term of 4 years commencing the third Monday
34 in January of the year in which their term commences, except
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1 in case of an appointment to fill a vacancy. Vacancies shall
2 be filled for the remainder of the term. In case of vacancy
3 in a Governor-appointed membership when the Senate is not in
4 session, the Governor may make a temporary appointment until
5 the next meeting of the Senate when a person shall be
6 nominated to fill that office, and any person so nominated
7 who is confirmed by the Senate shall hold office during the
8 remainder of the term. Each member appointed to the Board
9 shall serve until his or her successor is appointed and
10 qualified.
11 (e) The Chairperson of the Board shall be elected by the
12 Board annually from among the members who are appointed by
13 the county board of Will County.
14 (f) The Governor may remove any member of the Board in
15 case of incompetency, neglect of duty, or malfeasance in
16 office.
17 (g) Members of the Board shall serve without
18 compensation for their services as members but may be
19 reimbursed for all necessary expenses incurred in connection
20 with the performance of their duties as members.
21 (h) The Board may appoint an Executive Director who
22 shall have a background in finance, including familiarity
23 with the legal and procedural requirements of issuing bonds,
24 real estate or economic development, and administration. The
25 Executive Director shall hold office at the discretion of the
26 Board. The Executive Director shall be the chief
27 administrative and operational officer of the Authority,
28 shall direct and supervise its administrative affairs and
29 general management, shall perform such other duties as may be
30 prescribed from time to time by the Board, and shall receive
31 compensation fixed by the Board. The Executive Director
32 shall attend all meetings of the Board; however, no action of
33 the Board or the Authority shall be invalid on account of the
34 absence of the Executive Director from a meeting. The Board
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1 may engage the services of such other agents and employees,
2 including attorneys, appraisers, engineers, accountants,
3 credit analysts and other consultants, and may prescribe
4 their duties and fix their compensation.
5 (i) The Board shall meet on the call of its Chairperson
6 or upon written notice of 6 members of the Board.
7 (Source: P.A. 89-333, eff. 8-17-95.)
8 (70 ILCS 508/35)
9 Sec. 35. Revenue Bonds.
10 (a) The Authority, with the written approval of the
11 Governor, shall have the continuing power to issue revenue
12 bonds, notes, or other evidences of indebtedness in an
13 aggregate amount not to exceed $100,000,000 for the purpose
14 of developing, constructing, acquiring, or improving
15 projects, including those established by business entities
16 locating or expanding property within the territorial
17 jurisdiction of the Authority, for entering into venture
18 capital agreements with businesses locating or expanding
19 within the territorial jurisdiction of the Authority, for
20 acquiring and improving any property necessary and useful in
21 connection therewith, and for the purposes of the Employee
22 Ownership Assistance Act. For the purpose of evidencing the
23 obligations of the Authority to repay any money borrowed, the
24 Authority may, pursuant to resolution, from time to time
25 issue and dispose of its interest bearing revenue bonds,
26 notes, or other evidences of indebtedness and may also from
27 time to time issue and dispose of such bonds, notes, or other
28 evidences of indebtedness to refund, at maturity, at a
29 redemption date or in advance of either, any revenue bonds,
30 notes, or other evidences of indebtedness pursuant to
31 redemption provisions or at any time before maturity. All
32 such revenue bonds, notes, or other evidences of indebtedness
33 shall be payable solely from the revenues or income to be
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1 derived from loans made with respect to projects, from the
2 leasing or sale of the projects, or from any other funds
3 available to the Authority for such purposes, including, when
4 so provided by ordinance of the Authority authorizing the
5 issuance of revenue bonds or notes. The revenue bonds,
6 notes, or other evidences of indebtedness may bear such date
7 or dates, may mature at such time or times not exceeding 40
8 years from their respective dates, may bear interest at such
9 rate or rates not exceeding the maximum rate permitted by the
10 Bond Authorization Act, may be in such form, may carry such
11 registration privileges, may be executed in such manner, may
12 be payable at such place or places, may be made subject to
13 redemption in such manner and upon such terms, with or
14 without premium as is stated on the face thereof, may be
15 authenticated in such manner, and may contain such terms and
16 covenants as may be provided by an applicable resolution.
17 (b) The holder or holders of any revenue bonds, notes,
18 or other evidences of indebtedness issued by the Authority
19 may bring suits at law or proceedings in equity to compel the
20 performance and observance by any corporation or person or by
21 the Authority or any of its agents or employees of any
22 contract or covenant made with the holders of such revenue
23 bonds, notes, or other evidences of indebtedness, to compel
24 such corporation, person, the Authority, and any of its
25 agents or employees to perform any duties required to be
26 performed for the benefit of the holders of any such revenue
27 bonds, notes, or other evidences of indebtedness by the
28 provision of the resolution authorizing their issuance and to
29 enjoin such corporation, person, the Authority, and any of
30 its agents or employees from taking any action in conflict
31 with any such contract or covenant.
32 (c) If the Authority fails to pay the principal of or
33 interest on any of the revenue bonds or premium, if any, as
34 the same become due, a civil action to compel payment may be
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1 instituted in the appropriate circuit court by the holder or
2 holders of the revenue bonds on which such default of payment
3 exists or by an indenture trustee acting on behalf of such
4 holders. Delivery of a summons and a copy of the complaint
5 to the Chairperson of the Board shall constitute sufficient
6 service to give the circuit court jurisdiction of the subject
7 matter of such a suit and jurisdiction over the Authority and
8 its officers named as defendants for the purpose of
9 compelling such payment. Any case, controversy, or cause of
10 action concerning the validity of this Act relates to the
11 revenue of the State of Illinois.
12 (d) Notwithstanding the form and tenor of any such
13 revenue bonds, notes, or other evidences of indebtedness and
14 in the absence of any express recital on the face of any such
15 revenue bond, note, or other evidence of indebtedness that it
16 is non-negotiable, all such revenue bonds, notes, and other
17 evidences of indebtedness shall be negotiable instruments.
18 Pending the preparation and execution of any such revenue
19 bonds, notes, or other evidences of indebtedness, temporary
20 revenue bonds, notes, or evidences of indebtedness may be
21 issued as provided by ordinance.
22 (e) To secure the payment of any or all of such revenue
23 bonds, notes, or other evidences of indebtedness, the
24 revenues to be received by the Authority from a lease
25 agreement or loan agreement shall be pledged, and, for the
26 purpose of setting forth the covenants and undertakings of
27 the Authority in connection with the issuance thereof and the
28 issuance of any additional revenue bonds, notes, or other
29 evidences of indebtedness payable from such revenues, income,
30 or other funds to be derived from projects, the Authority may
31 execute and deliver a mortgage or trust agreement. A remedy
32 for any breach or default of the terms of any such mortgage
33 or trust agreement by the Authority may be by mandamus
34 proceedings in the appropriate circuit court to compel the
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1 performance and compliance therewith, but the trust agreement
2 may prescribe by whom or on whose behalf the action may be
3 instituted.
4 (f) The revenue bonds or notes shall be secured as
5 provided in the authorizing ordinance which may,
6 notwithstanding any other provision of this Act, include in
7 addition to any other security a specific pledge or
8 assignment of and lien on or security interest in any or all
9 revenues or money of the Authority from whatever source which
10 may by law be used for debt service purposes and a specific
11 pledge or assignment of and lien on or security interest in
12 any funds or accounts established or provided for by
13 ordinance of the Authority authorizing the issuance of such
14 revenue bonds or notes.
15 (g) Blank. In the event that the Authority determines
16 that moneys of the Authority will not be sufficient for the
17 payment of the principal of and interest on its revenue bonds
18 during the next State fiscal year, the Chairperson, as soon
19 as practicable, shall certify to the Governor the amount
20 required by the Authority to enable it to pay such principal
21 of and interest on the revenue bonds. The Governor shall
22 submit the amount so certified to the General Assembly as
23 soon as practicable, but no later than the end of the current
24 State fiscal year. Neither the General Assembly, the
25 Governor, nor the State, however, has any obligation to
26 appropriate or otherwise provide funds for the payment of
27 such principal and interest. This subsection shall not apply
28 to any revenue bonds or notes as to which the Authority shall
29 have determined, in the resolution authorizing the issuance
30 of the revenue bonds or notes, that this subsection shall not
31 apply. Whenever the Authority makes such a determination,
32 that fact shall be plainly stated on the face of the bonds or
33 notes and that fact shall also be reported to the Governor.
34 In the event of a withdrawal of moneys from a reserve
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1 fund established with respect to any issue or issues of bonds
2 of the Authority to pay principal or interest on those
3 revenue bonds, the Chairperson of the Authority, as soon as
4 practicable, shall certify to the Governor the amount
5 required to restore the reserve fund to the level required in
6 the resolution or indenture securing those revenue bonds. The
7 Governor shall submit the amount so certified to the General
8 Assembly as soon as practicable, but no later than the end of
9 the current State fiscal year. Neither the General Assembly,
10 the Governor, nor the State, however, has any obligation to
11 appropriate or otherwise provide funds to restore the reserve
12 fund.
13 (h) The State of Illinois pledges to and agrees with the
14 holders of the revenue bonds and notes of the Authority
15 issued pursuant to this Section that the State will not limit
16 or alter the rights and powers vested in the Authority by
17 this Act so as to impair the terms of any contract made by
18 the Authority with such holders or in any way impair the
19 rights and remedies of such holders until such revenue bonds
20 and notes, together with interest thereon, with interest on
21 any unpaid installments of interest, and all costs and
22 expenses in connection with any action or proceedings by or
23 on behalf of such holders, are fully met and discharged. The
24 Authority is authorized to include these pledges and
25 agreements of the State in any contract with the holders of
26 revenue bonds or notes issued pursuant to this Section.
27 (i) The revenue bonds, notes, and other evidences of
28 indebtedness authorized by this Act are not, and shall not be
29 construed to be, "State debt" within the meaning of Section 9
30 of Article IX of the Illinois Constitution, are not secured
31 by the full faith and credit of the State, and are not
32 required to be repaid, directly or indirectly, from tax
33 revenue.
34 (Source: P.A. 89-333, eff. 8-17-95.)
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1 Section 99. Effective date. This Act takes effect upon
2 becoming law.