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90_HB3405
30 ILCS 360/3-3 from Ch. 17, par. 7203-3
Amends the Rural Bond Bank Act. Deletes the requirement
that the Governor approve the issuance of bonds and notes.
LRB9009736KDks
LRB9009736KDks
1 AN ACT to amend the Rural Bond Bank Act by changing
2 Section 3-3.
3 Be it enacted by the People of the State of Illinois,
4 represented in the General Assembly:
5 Section 5. The Rural Bond Bank Act is amended by
6 changing Section 3-3 as follows:
7 (30 ILCS 360/3-3) (from Ch. 17, par. 7203-3)
8 Sec. 3-3. Bonds and notes of the Bank.
9 (a) The Bank may issue its bonds and notes from time to
10 time in any principal amounts that it considers necessary to
11 provide funds for any of the purposes authorized by this Act,
12 including:
13 (1) the making of loans;
14 (2) the payment, funding or refunding of the
15 principal of, or interest or redemption premiums on, any
16 bonds issued by the Bank, whether the bonds or interest
17 to be funded or refunded have or have not become due or
18 subject to redemption before maturity in accordance with
19 their terms;
20 (3) the establishment or increase of reserves to
21 secure or to pay bonds or interest on the bonds; and
22 (4) all other costs or expenses of the Bank
23 incident to and necessary or convenient to carry out its
24 corporate purposes and powers.
25 (b) Except as expressly provided otherwise in this Act
26 or by the Bank, every issue of bonds shall be general
27 obligations of the Bank payable out of any revenues or funds
28 of the Bank, subject only to any agreements with the holders
29 of particular bonds pledging any particular revenues or
30 funds. General obligation bonds may be additionally secured
31 by a pledge of any grants, subsidies, contributions, funds or
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1 money from the federal government, the State, any
2 governmental unit, any person or a pledge of any income or
3 revenues, funds or money of the Bank from any source.
4 Not less than 30 days prior to the commitment to issue
5 its bonds, or the making of loans or the purchasing of
6 securities for the purpose of financing residential
7 properties or related improvements, the Bank shall provide
8 notice to the Executive Director of the Illinois Housing
9 Development Authority. Within 30 days after notice is
10 provided, the Illinois Housing Development Authority shall
11 either in writing express interest in financing the
12 residential property or related improvements or notify the
13 Bank that it is not interested in providing such financing
14 and the Bank may finance it or seek alternative financing.
15 (c)(1) The Bank may issue its notes for any
16 corporate purpose of the Bank from time to time, in any
17 principal amounts that it considers necessary, and may
18 renew or pay and retire or refund the notes from the
19 proceeds of bonds or of other notes, or from any other
20 funds or money of the Bank available or to be made
21 available for that purpose in accordance with any
22 contract between the Bank and the noteholders, not
23 otherwise pledged. The notes shall be issued in the same
24 manner as bonds. The notes and the resolution or
25 resolutions authorizing the notes may contain any
26 provisions, conditions or limitations which the bonds or
27 a bond resolution of the Bank may contain.
28 (2) Unless provided otherwise in any contract
29 between the Bank and the noteholders, and unless the
30 notes have been otherwise paid, funded or refunded, the
31 proceeds of any bonds of the Bank issued, among other
32 things, to fund such outstanding notes, shall be held,
33 used and applied by the Bank to the payment and
34 retirement of the principal of these notes and the
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1 interest due and payable on the notes.
2 (3) The Bank may make contracts for the future sale
3 from time to time of the notes under which the purchaser
4 is committed to purchase the notes from time to time on
5 terms and conditions stated in the contracts. The Bank
6 may pay any consideration that it determines proper for
7 these commitments.
8 (d) Whether or not the bonds or notes of the Bank are of
9 such form and character as to be negotiable instruments under
10 Article 8 of the Uniform Commercial Code, the bonds and notes
11 shall be and are made negotiable instruments within the
12 meaning of and for all the purposes of the Uniform Commercial
13 Code, subject only to the provisions of the bonds and notes
14 for registration.
15 (e) Bonds or notes of the Bank shall be authorized by
16 resolution of the Bank and may be issued in one or more
17 series. The resolution or resolutions may provide:
18 (1) the date or dates the bonds or notes will bear;
19 (2) the time or times the bonds or notes will
20 mature;
21 (3) the rate or rates of interest per year the
22 bonds or notes will bear;
23 (4) the denomination or denominations of the bonds
24 or notes;
25 (5) the form of the bonds or notes, either coupon
26 or registered;
27 (6) the conversion or registration privileges
28 carried by the bonds or notes;
29 (7) the rank or priority of the bonds or notes;
30 (8) the manner of execution of the bonds or notes;
31 (9) the sources, medium and place or places, within
32 or outside this State, of payment; and
33 (10) the terms of redemption of the bonds or notes,
34 with or without premium.
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1 (f) Bonds or notes of the Bank may be sold at public or
2 private sale at the time or times and at the price or prices
3 determined by the Bank.
4 (g) Upon approval of the Governor, Bonds or notes of the
5 Bank may be issued under this Act without obtaining the
6 consent of any other department, division, commission, board,
7 bureau or agency of the State, and without any other
8 proceeding or the happening of any other conditions or things
9 than those proceedings, conditions or things which are
10 specifically required by this Act.
11 (h) The Bank may from time to time issue its notes as
12 provided in this Act and pay and retire or fund or refund
13 those notes from proceeds of bonds or of other notes, or from
14 any other funds or money of the Bank available or to be made
15 available for those purposes in accordance with any contract
16 between the Bank and the noteholders. Unless provided
17 otherwise in any contract between the Bank and the holders of
18 notes, and unless the notes have been otherwise paid, funded
19 or refunded, the proceeds of any bonds of the Bank issued,
20 among other things, to fund those outstanding notes, shall be
21 held, used and applied by the Bank to the payments and
22 retirement of the principal of the notes and the interest due
23 and payable on the notes.
24 (i) The total aggregate original principal amount of all
25 bonds and notes issued by the Bank shall not exceed
26 $150,000,000. No more than $25,000,000 in aggregate original
27 principal amount of all bonds and notes issued by the Bank
28 shall be used to purchase local governmental securities
29 issued by governmental units located in a County contiguous
30 with a county having a population in excess of 3,000,000.
31 The bonds and notes issued by the Bank may bear interest
32 at such rate or rates not exceeding the maximum rate
33 permitted by the Bond Authorization Act.
34 (j) The State of Illinois pledges to and agrees with the
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1 holders of the bonds and notes of the Bank issued pursuant to
2 this Act that the State will not limit or alter the rights
3 and powers vested in the Bank by this Act so as to impair the
4 terms of any contract made by the Bank with those holders or
5 in any way impair the rights and remedies of those holders
6 until those bonds and notes, together with interest thereon,
7 with interest on any unpaid installments of interest, and all
8 costs and expenses in connection with any action or
9 proceedings by or on behalf of such holders, are fully met
10 and discharged. In addition, the State pledges to and agrees
11 with the holders of the bonds and notes of the Bank issued
12 pursuant to this Act that the State will not limit or alter
13 the basis on which State funds are to be paid to the Bank as
14 provided in this Act, or the use of such funds, so as to
15 impair the terms of any such contract. The Bank is authorized
16 to include these pledges and agreements of the State in any
17 contract with the holders of bonds or notes issued pursuant
18 to this Act.
19 (Source: P.A. 89-211, eff. 8-3-95.)