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90_HB3081ham001
LRB9009642MWpcam02
1 AMENDMENT TO HOUSE BILL 3081
2 AMENDMENT NO. . Amend House Bill 3081 by replacing
3 the title with the following:
4 "AN ACT to amend the Illinois Municipal Code."; and
5 by replacing everything after the enacting clause with the
6 following:
7 "Section 5. The Illinois Municipal Code is amended by
8 changing Sections 8-4-1, 11-74.5-2, 11-74.5-3, and 11-74.5-5
9 as follows:
10 (65 ILCS 5/8-4-1) (from Ch. 24, par. 8-4-1)
11 Sec. 8-4-1. No bonds shall be issued by the corporate
12 authorities of any municipality until the question of
13 authorizing such bonds has been submitted to the electors of
14 that municipality, and approved by a majority of the electors
15 voting upon that question. The clerk shall certify the
16 proposition of the corporate authorities to the proper
17 election authority who shall submit the question at an
18 election in accordance with the general election law.
19 Notice of any such election shall contain the amount of
20 the bond issue, purpose for which issued, and maximum rate of
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1 interest.
2 However, without the submission of the question of
3 issuing bonds to the electors, the corporate authorities of
4 any municipality may authorize the issuance of any of the
5 following bonds:
6 (1) Bonds to refund any existing bonded indebtedness;
7 (2) Bonds to fund or refund any existing judgment
8 indebtedness;
9 (3) In any municipality of less than 500,000 population,
10 bonds to anticipate the collection of installments of special
11 assessments and special taxes against property owned by the
12 municipality and to anticipate the collection of the amount
13 apportioned to the municipality as public benefits under
14 Article 9;
15 (4) Bonds issued by any municipality under Sections
16 8-4-15 through 8-4-23, 11-23-1 through 11-23-12, 11-25-1
17 through 11-26-6, 11-71-1 through 11-71-10, 11-74.4-1 through
18 11-74.4-11, 11-74.5-1 through 11-74.5-15, 11-94-1 through
19 11-94-7, 11-102-1 through 11-102-10, 11-103-11 through
20 11-103-15, 11-118-1 through 11-118-6, 11-119-1 through
21 11-119-5, 11-129-1 through 11-129-7, 11-133-1 through
22 11-133-4, 11-139-1 through 11-139-12, 11-141-1 through
23 11-141-18 of this Code or 10-801 through 10-808 of the
24 Illinois Highway Code, as amended;
25 (5) Bonds issued by the board of education of any school
26 district under the provisions of Sections 34-30 through 34-36
27 of The School Code, as amended;
28 (6) Bonds issued by any municipality under the
29 provisions of Division 6 of this Article 8; and by any
30 municipality under the provisions of Division 7 of this
31 Article 8; or under the provisions of Sections 11-121-4 and
32 11-121-5;
33 (7) Bonds to pay for the purchase of voting machines by
34 any municipality that has adopted Article 24 of The Election
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1 Code, approved May 11, 1943, as amended;
2 (8) Bonds issued by any municipality under Sections 15
3 and 46 of the "Environmental Protection Act", approved June
4 29, 1970;
5 (9) Bonds issued by the corporate authorities of any
6 municipality under the provisions of Section 8-4-25 of this
7 Article 8;
8 (10) Bonds issued under Section 8-4-26 of this Article 8
9 by any municipality having a board of election commissioners;
10 (11) Bonds issued under the provisions of "An Act to
11 provide the manner of levying or imposing taxes for the
12 provision of special services to areas within the boundaries
13 of home rule units and nonhome rule municipalities and
14 counties", approved September 21, 1973;
15 (12) Bonds issued under Section 8-5-16 of this Code;
16 (13) Bonds to finance the cost of the acquisition,
17 construction or improvement of water or wastewater treatment
18 facilities mandated by an enforceable compliance schedule
19 developed in connection with the federal Clean Water Act or a
20 compliance order issued by the United States Environmental
21 Protection Agency or the Illinois Pollution Control Board;
22 provided that such bonds are authorized by an ordinance
23 adopted by a three-fifths majority of the corporate
24 authorities of the municipality issuing the bonds which
25 ordinance shall specify that the construction or improvement
26 of such facilities is necessary to alleviate an emergency
27 condition in such municipality;
28 (14) Bonds issued by any municipality pursuant to
29 Section 11-113.1-1;
30 (15) Bonds issued under Sections 11-74.6-1 through
31 11-74.6-45, the Industrial Jobs Recovery Law of this Code.
32 (Source: P.A. 88-537.)
33 (65 ILCS 5/11-74.5-2) (from Ch. 24, par. 11-74.5-2)
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1 Sec. 11-74.5-2. Whenever used in this Division:
2 (a) "Appraised value" means the fair market value of a
3 home determined in accordance with generally accepted
4 procedures and standards applicable to the appraisal of real
5 property.
6 (b) "Bonds" means any revenue bonds authorized under
7 this Division and payable as provided hereunder.
8 (c) "Corporate authorities" means the corporate
9 authorities as defined in this Illinois Municipal Code.
10 (d) "Home" means real property and improvements thereon
11 located within the municipality consisting of not more than 4
12 dwelling units, including but not limited to, condominium
13 units owned by one mortgagor who occupies or intends to
14 occupy one of such units.
15 (e) "Home mortgage loan" means an interest bearing loan
16 to a mortgagor evidenced by a promissory note and secured by
17 a first mortgage on a home, purchased or originated in
18 accordance with this Division made for the purpose of
19 acquiring a home having an appraised value or a purchase
20 price, whichever is less, of not less than the minimum home
21 value and less than the maximum home value.
22 (f) "Lender" means any lending institution participating
23 in a residential housing finance plan as the originator of
24 home mortgage loans or as a servicing agent for home mortgage
25 loans.
26 (g) "Lending institution" means any bank, bank holding
27 company, credit union, trust company, savings bank, national
28 banking association, savings and loan association, building
29 and loan association, mortgage banker or other financial
30 institution which customarily provides service or otherwise
31 aids in the financing of home mortgages, or any holding
32 company for any of the foregoing.
33 (h) "Maximum home value" means the amount determined by
34 the corporate authorities.
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1 (i) "Minimum home value" means the amount determined by
2 the corporate authorities.
3 (j) "Mortgagor" means a person of low or moderate income
4 and who has received or qualifies to receive a home mortgage
5 loan on a home.
6 (k) "Municipality" means a municipality as defined in
7 this Illinois Municipal Code.
8 (l) "Ordinance" means an ordinance adopted and approved
9 by the corporate authorities of a municipality.
10 (m) "Purchase price" means the actual consideration paid
11 to the seller of a home.
12 (n) "Person" means a natural person or persons or a
13 trust, provided that such trust is for the benefit of a
14 natural person or members of such person's immediate family.
15 (o) "Participation commitment" means any undertaking or
16 agreement by a lending institution to participate in the
17 implementation of a residential housing finance plan.
18 (p) "Persons of low or moderate income" means a person
19 or family (consisting of one or more persons all of whom
20 occupy or will occupy the home) whose aggregate gross income
21 including the gross income of any co-signer or guarantor of
22 the promissory note made in connection with the making of a
23 home mortgage loan does not exceed a maximum amount to be
24 established by the corporate authorities and determined in
25 accordance with appropriate criteria, rules and regulations,
26 approved by the corporate authorities in connection with the
27 implementation of a residential housing finance plan.
28 (q) "Residential housing finance plan" means a program
29 implemented under this Division by a municipality to assist
30 persons of low or moderate income in acquiring safe, decent
31 and sanitary housing which they can afford.
32 (r) "Trustee" means any State or national bank or trust
33 company, having trust powers, located within or outside the
34 State of Illinois, which may be appointed to act in any
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1 capacity with respect to a residential housing finance plan
2 and the issuance of bonds to finance such plan whether
3 designated as a trustee, custodian or administrator.
4 (Source: P.A. 81-580.)
5 (65 ILCS 5/11-74.5-3) (from Ch. 24, par. 11-74.5-3)
6 Sec. 11-74.5-3. In addition to powers which a
7 municipality may now have, municipalities have the following
8 powers:
9 (a) To acquire, and to contract and enter into advance
10 commitments to acquire, directly or indirectly, home
11 mortgages owned or originated by lending institutions at such
12 prices and upon such other terms and conditions as shall be
13 determined by such municipality or trustee as it may
14 designate as its agent;
15 (b) To make and execute contracts with lending
16 institutions for the origination and servicing of home
17 mortgage loans on behalf of a municipality and to pay the
18 reasonable value of services rendered in accordance with such
19 contracts;
20 (c) To make loans to lenders to enable such lenders to
21 make home mortgage loans in accordance with this Division;
22 (d) To establish, by rules or regulations, by ordinances
23 relating to any issuance of bonds or in any financing
24 documents relating to such issuance, such standards and
25 requirements applicable to the purchase of home mortgage
26 loans or the origination of home mortgage loans or loans to
27 lenders as such municipality deems necessary or desirable to
28 effectuate the public purposes of this Act, including but not
29 limited to: (i) the time within which lending institutions
30 must make participation commitments and make disbursements
31 for home mortgage loans; (ii) the terms and conditions of
32 home mortgage loans to be acquired or originated; (iii) the
33 standards and criteria to be applied by the municipality in
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1 defining persons of low or moderate income; (iv) the amounts
2 and types of insurance coverage required on homes, home
3 mortgage loans and bonds; (v) the representations and
4 warranties to be required of persons and lending institutions
5 as evidence of compliance with such standards and
6 requirements; (vi) restrictions as to interest rate and other
7 terms of home mortgage loans or the return realized therefrom
8 by lending institutions; (vii) the type and amount of
9 collateral security to be provided to assure repayment of any
10 loans to lenders by such municipalities and to assure
11 repayment of bonds; and (viii) any other matters related to
12 the purchase or origination of home mortgage loans or the
13 making of loans to lenders as shall be deemed relevant or
14 necessary by the corporate authorities of such municipality.
15 (e) To require from each lending institution from which
16 home mortgage loans are to be purchased or which will
17 originate home mortgage loans on behalf of the municipality
18 or from lenders to which loans are made, the submission, at
19 the time of making participation commitments, of evidence
20 satisfactory to such municipality of the ability and
21 intention of such lending institution to make home mortgage
22 loans, and the submission, within the time specified by such
23 municipality for making disbursements for home mortgage
24 loans, of evidence satisfactory to such municipality of the
25 making of home mortgage loans and of compliance with any
26 standards and requirements established by such municipality.
27 (f) To require that a lending institution or lender
28 furnish, prior to or concurrently with the delivery of any
29 participation commitment by a lending institution, a
30 commitment fee in the form of a cash deposit, letter of
31 credit, promissory note, surety bond or other instrument
32 approved by the corporate authorities executed by or on
33 behalf of such lending institution, in an amount to be
34 determined by the corporate authorities.
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1 (g) To issue its bonds to defray, in whole or in part
2 (i) the cost of acquiring or originating home mortgage loans
3 or making loans to lenders in order to enable them to make
4 home mortgage loans; (ii) if deemed necessary or advisable,
5 the costs of paying interest on bonds during a reasonable
6 period necessary to acquire or originate the home mortgage
7 loans or to make the loans to lender, (iii) the costs of
8 studies and surveys, insurance premiums, underwriting fees,
9 legal, accounting and marketing services incurred in
10 connection with the issuance and sale of such bonds,
11 including amounts required to establish reasonably necessary
12 bond and interest reserve accounts, and trustee, custodian
13 and rating agency fees; (iv) the costs of reasonable
14 reserves; and (v) (iv) such other costs as are reasonably
15 related to the foregoing.
16 (h) To authorize the sale or other disposition of any
17 home mortgage loan, in whole or in part, upon such terms, at
18 such prices and times, and from time to time, as may be
19 necessary to assure that the revenues and receipts to be
20 derived with respect to the home mortgage loans, together
21 with any insurance proceeds, funds held in reserve accounts
22 and earnings thereon, shall produce and provide revenues and
23 receipts at least sufficient to provide for the prompt
24 payment of the principal of, redemption premiums, if any, and
25 interest at maturity of all bonds issued pursuant to this
26 Division or to otherwise authorize the sale or other
27 disposition of any home mortgage loan after the bonds have
28 been paid or deemed to be paid.
29 (i) To pledge any revenues and receipts to be received
30 from any home mortgage loans to the punctual payment of bonds
31 authorized under this Division, and the interest and
32 redemption premiums, if any, thereon.
33 (j) To mortgage, pledge or grant security interests in
34 any home mortgage loans, notes or other property in favor of
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1 the holder or holders of bonds issued therefor.
2 (k) to issue its bonds in such amount as may be
3 necessary (and not limited by the amount of bonds refunded)
4 for the purpose of refunding, in whole or in part at any
5 time, bonds theretofore issued by such municipality under
6 authority of this Division, the proceeds of which refunding
7 bonds may be used, at the discretion of the corporate
8 authorities, for paying bonds at maturity, calling bonds for
9 payment and paying bonds prior to maturity, or for deposit
10 into an escrow or trust fund in advance of maturity of bonds
11 to be held for payment thereof at maturity or earlier.
12 (l) To appoint or designate a trustee or trustees for
13 the benefit of the bondholders and to delegate and assign
14 thereto, insofar as it may lawfully do so, its rights, duties
15 and responsibilities with respect to carrying out and
16 enforcing the terms and provisions of its residential housing
17 finance plan.
18 (m) To provide for and authorize the use and disposition
19 of any funds remaining in the possession of the municipality
20 (or trustees) following payment and retirement of, or
21 following the making of provision for the payment of, the
22 bonds of a designated series issued pursuant to this
23 Division.
24 (n) To make and execute contracts and other instruments
25 necessary or convenient to the exercise of any of the powers
26 granted herein.
27 (Source: P.A. 84-550.)
28 (65 ILCS 5/11-74.5-5) (from Ch. 24, par. 11-74.5-5)
29 Sec. 11-74.5-5. The exercise of any or all powers granted
30 by this Division shall be authorized and the bonds shall be
31 authorized to be issued under this Division for the purposes
32 set forth in this Act, by an ordinance adopted by the
33 corporate authorities of a municipality which shall take
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1 effect immediately upon adoption. Any such ordinance shall
2 set forth a finding and declaration (i) of the public purpose
3 therefor and (ii) that such ordinance is adopted pursuant to
4 this Division, which finding and declaration shall be
5 conclusive evidence of the existence and sufficiency of the
6 public purpose and of the power to carry out and give effect
7 to such public purposes.
8 After the adoption of an ordinance as provided in this
9 Section, the corporate Authorities shall cause to be
10 submitted to the voters of the Municipality the question:
11 Shall the ordinance adopted by the Corporate
12 Authorities providing for the sale of revenue bonds for
13 financing the purchase of homes in (name of municipality)
14 take effect?
15 If a majority of those voting on the question vote
16 affirmatively, the ordinance takes effect and the bonds shall
17 be sold as provided in the ordinance. If a majority of those
18 voting on the question vote negatively, the ordinance shall
19 not take effect.
20 The bonds shall bear interest at such rate or rates
21 (subject only to the limitations set forth in paragraph (a)
22 of Section 11-74.5-4 and without regard to any other law
23 pertaining to interest rate limitations), may be payable at
24 such time or times, may be in one or more series, may bear
25 such date or dates, may mature at such time or times not
26 exceeding 40 years from their respective dates, may be
27 payable in such medium of payment at such place or places,
28 may carry such registration privileges, may be subject to
29 such terms of redemption at such premiums, may be executed in
30 such manner, may contain such terms, covenants and conditions
31 and may be in such form, either coupon or registered, as the
32 corporate authorities shall provide. The bonds may be sold
33 at public or private sale at such price, in such manner and
34 upon such terms as the corporate authorities may determine.
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1 Pending the preparation of definitive bonds and in
2 anticipation thereof, interim notes, in such form and with
3 such provisions as may be authorized by the corporate
4 authorities, may be issued to the purchaser or purchasers of
5 bonds sold pursuant to this Division. The bonds and interim
6 notes shall be deemed to be securities and negotiable
7 instruments within the meaning and for all purposes of the
8 Uniform Commercial Code.
9 (Source: P.A. 81-580.)
10 (65 ILCS 5/11-74.5-4 rep.)
11 Section 10. The Illinois Municipal Code is amended by
12 repealing Section 11-74.5-4.
13 Section 99. Effective date. This Act takes effect upon
14 becoming law.".