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Public Act 91-0431
HB1274 Enrolled LRB9102393NTsb
AN ACT to amend the Illinois Educational Facilities
Authority Act.
Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
Section 5. The Illinois Educational Facilities Authority
Act is amended by changing Sections 1, 3, 3.03, 3.06, 3.06a,
3.07c, 3.08, 5.11, 5.12, 5.16, and 24 and adding Sections
3.10, 5.11a, and 5.11b as follows:
(110 ILCS 1015/1) (from Ch. 144, par. 1301)
Sec. 1. Declaration of purpose. It is declared that for
the benefit of the people of the State of Illinois, the
conduct and increase of their commerce, the protection and
enhancement of their welfare, the development of continued
prosperity and the improvement of their health and living
conditions it is essential that all the people of the State
be given the fullest opportunity to learn and to develop
their intellectual and mental capacities and skills; that to
achieve these ends it is of the utmost importance that
private institutions of higher education within the State be
provided with appropriate additional means to assist the
people of the State in achieving the required levels of
learning and development of their intellectual and mental
capacities and skills and that cultural institutions within
the State be provided with appropriate additional means to
expand the services and resources which they offer for the
cultural, intellectual, scientific, educational and artistic
enrichment of the people of the State; and that, in execution
of the public policy set forth above, it is the purpose of
this Act to provide a measure of assistance and an
alternative method of financing to enable private
institutions of higher education and cultural institutions in
the State to: (i) finance or to refund or refinance
outstanding indebtedness incurred by them for the
construction or acquisition of educational facilities and
structures or cultural facilities and structures, whether or
not constructed or acquired prior to the effective date of
this Act, (ii) and to provide the needed additional
facilities and structures for the public benefit and good,
and (iii) enable these institutions to obtain working capital
through financing or refinancing of their accounts receivable
or otherwise in execution of the public policy set forth
above.
(Source: P.A. 88-555, eff. 7-27-94.)
(110 ILCS 1015/3) (from Ch. 144, par. 1303)
Sec. 3. Definitions. In this Act, unless the context
otherwise requires, the terms specified in Sections 3.01
through 3.10 3.09 have the meanings ascribed to them in those
Sections.
(Source: P.A. 84-995.)
(110 ILCS 1015/3.03) (from Ch. 144, par. 1303.03)
Sec. 3.03. Cost. "Cost", as applied to a project
financed under this Act, means all costs necessary or
incident to the acquisition, and construction, and financing
of the project, including the costs of refunding or
refinancing outstanding indebtedness incurred for the
financing of such project, engineering, legal and,
architectural fees, working capital, and all other necessary
and incidental expenses, together with interest on bonds
issued to finance the project to a date 6 months subsequent
to the estimated date of completion.
(Source: P.A. 78-399.)
(110 ILCS 1015/3.06) (from Ch. 144, par. 1303.06)
Sec. 3.06. Educational facility. "Educational facility"
may comprise any property located within the State or, if the
property is owned, operated, or managed by or for the benefit
of a participating institution or an affiliate of the
institution, located outside the State, constructed or
acquired before or after the effective date of this Act,
which is or will be, in whole or in part, suitable for the
instruction, feeding, recreation or housing of students, the
conducting of research or other work of a private institution
of higher education, the use by a private institution of
higher education in connection with any educational, research
or related or incidental activities then being or to be
conducted by it, or any combination of the foregoing,
including, without limitation, any such property suitable for
use as or in connection with any one or more of the
following: an academic facility, administrative facility,
agricultural facility, assembly hall, athletic facility,
auditorium, boating facility, campus, communication facility,
computer facility, continuing education facility, classroom,
dining hall, dormitory, exhibition hall, fire fighting
facility, fire prevention facility, food service and
preparation facility, gymnasium, greenhouse, health care
facility, hospital, housing, instructional facility,
laboratory, library, maintenance facility, medical facility,
museum, offices, parking area, physical education facility,
recreational facility, research facility, stadium, storage
facility, student union, study facility, theatre or utility.
An educational facility shall not include any property used
or to be used for sectarian instruction or study or as a
place for devotional activities or religious worship nor any
property which is used or to be used primarily in connection
with any part of the program of a school or department of
divinity for any religious denomination.
(Source: P.A. 78-399.)
(110 ILCS 1015/3.06a) (from Ch. 144, par. 1303.06a)
Sec. 3.06a. Cultural facility. "Cultural facility" may
comprise any property located within the State or, if the
property is owned, operated, or managed by or for the benefit
of a participating institution or an affiliate of the
institution, located outside the State, constructed or
acquired before or after the effective date of this Act,
which is or will be, in whole or in part, suitable for the
particular purposes or needs of a cultural institution,
including, without limitation, any such property suitable for
use as or in connection with any one or more of the
following: an administrative facility, aquarium, assembly
hall, auditorium, botanical garden, exhibition hall, gallery,
greenhouse, library, museum, scientific laboratory, theater
or zoological facility, and shall also include, without
limitation, books, works of art or music, animal, plant or
aquatic life or other items for display, exhibition or
performance. The term "cultural facility" includes buildings
on the National Register of Historic Places which are owned
or operated by nonprofit entities. A cultural facility shall
not include any property used or to be used for sectarian
instruction or study or as a place for devotional activities
or religious worship nor any property which is used or to be
used primarily in connection with any part of the program of
a school or department of divinity for any religious
denomination.
(Source: P.A. 84-995.)
(110 ILCS 1015/3.07c) (from Ch. 144, par. 1303.07c)
Sec. 3.07c. Participating institution. "Participating
institution" means a private institution of higher education,
a cultural institution, or a not for profit organization that
provides financial or other assistance to or for the benefit
of private institutions of higher education or cultural
institutions, as the case may be, which, pursuant to the
provisions of this Act, undertakes a project or the refunding
or refinancing of outstanding indebtedness incurred for the
financing of a project or undertakes the financing of working
capital.
(Source: P.A. 88-555, eff. 7-27-94.)
(110 ILCS 1015/3.08) (from Ch. 144, par. 1303.08)
Sec. 3.08. Property. "Property" means any real, personal
or mixed property, or any interest therein, including,
without limitation, any real estate, appurtenances,
buildings, easements, equipment, furnishings, furniture,
improvements, machinery, commodities, rights of way and
structures, or any interest therein.
(Source: P.A. 76-1810.)
(110 ILCS 1015/3.10 new)
Sec. 3.10. Working capital. "Working capital" means,
with respect to any participating institution, funds to be
used in or reserved for the operations of the participating
institution.
(110 ILCS 1015/5.11) (from Ch. 144, par. 1305.11)
Sec. 5.11. Loans for cost of project and related capital
needs. To make loans to any participating institution for
the cost of a project and other related capital needs in
accordance with an agreement between the Authority and the
participating institution; provided that no such loan shall
exceed the total cost of the project as determined by the
participating institution and approved by the Authority.
(Source: P.A. 84-995.)
(110 ILCS 1015/5.11a new)
Sec. 5.11a. Working capital bonds. In accordance with
applicable law, to issue bonds for the purpose of financing
working capital for one or more participating institutions,
whether through a financing of their accounts receivable or
otherwise, either singly or on a combined basis with other
participating institutions.
(110 ILCS 1015/5.11b new)
Sec. 5.11b. Issuance of bonds for bulk purchases. To
issue bonds for the purpose of purchasing, leasing, or
otherwise acquiring, financing, selling, or transferring for,
to, or on behalf of itself and any participating institution,
either alone or in partnership with other participating
institutions, commodities or other property necessary for the
daily operation of the educational facilities or cultural
facilities of the participating institutions and for their
employees and patrons, including, but not limited to,
electricity, petroleum products, fuel oil, and natural gas.
(110 ILCS 1015/5.12) (from Ch. 144, par. 1305.12)
Sec. 5.12. Loans to refund outstanding obligations or
advances. To make loans to a participating institution to
refund outstanding obligations or advances issued, made or
given by such participating institution for the cost of a
project or for working capital.
(Source: P.A. 84-995.)
(110 ILCS 1015/5.16) (from Ch. 144, par. 1305.16)
Sec. 5.16. Bonds for refunding or refinancing
outstanding indebtedness. To issue bonds for the purpose of
refunding or refinancing the outstanding indebtedness of a
participating institution, whether or not outstanding prior
to or after the effective date of this Act, provided that
such indebtedness was originally incurred for the purpose of
constructing or acquiring an educational facility or a
cultural facility or for the purpose of acquiring working
capital.
(Source: P.A. 84-995.)
(110 ILCS 1015/24) (from Ch. 144, par. 1324)
Sec. 24. Purchase of securities; security; title to
facilities.
(a) Notwithstanding any other provision of this Act to
the contrary, the Authority may finance the cost of an
educational facility or cultural facility, finance working
capital, or finance other capital needs or refund outstanding
indebtedness incurred prior to or after the effective date of
this Act for the construction or acquisition of an
educational facility or cultural facility, for the financing
of working capital, or for other related capital needs by
issuing its bonds for the purpose of purchasing the
securities of a participating institution. Any such
securities shall have the same principal amounts, maturities
and interest rates as the bonds so being issued, may be
secured by a first mortgage lien on the educational facility
or cultural facility so being financed or by a first mortgage
lien or security interests in other real or personal property
acceptable to the Authority and created by a mortgage
instrument or security agreement satisfactory to the
Authority, and may be insured or guaranteed by others. Any
such bonds shall be secured by a pledge of such securities
under the trust agreement or indenture creating such bonds
and, shall be payable solely out of the payments to be made
on such securities and shall not exceed in principal amount
the cost of such educational facility or cultural facility as
determined by the participating institution and approved by
the Authority. In other respects, any such bonds shall be
subject to the provisions of Section 9 (c) of this Act and
the trust agreement or indenture creating such bonds may
contain such of the provisions set forth in Section 9 (d)
hereof as the Authority may deem appropriate.
(b) In the event that an educational facility or
cultural facility is financed pursuant to this Section, the
title to such facility shall remain in the participating
institution owning the same, subject to the lien of the
mortgage, if any, securing the securities then being
purchased, and there shall be no lease of such facility
between the Authority and such participating institution.
(c) The provisions of Section 8 of this Act shall not
apply to any educational facility or cultural facility
financed pursuant to this Section, but the Authority shall
return the securities, if any, purchased through the issuance
of bonds hereunder to the participating institution issuing
such securities when such bonds have been fully paid and
retired or when adequate provision has been made to pay and
retire the same fully and all other conditions of the trust
agreement or indenture creating such bonds have been
satisfied and the lien thereof has been released in
accordance with the provisions thereof.
(Source: P.A. 88-555, eff. 7-27-94.)
Section 99. Effective date. This Act takes effect upon
becoming law.
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