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91_HB0063enr
HB0063 Enrolled LRB9100535NTsb
1 AN ACT in relation to real estate.
2 Be it enacted by the People of the State of Illinois,
3 represented in the General Assembly:
4 Section 5. The State Finance Act is amended by adding
5 Sections 5.490 and 8.36 as follows:
6 (30 ILCS 105/5.490 new)
7 Sec. 5.490. The Airport Land Loan Revolving Fund.
8 (30 ILCS 105/8.36 new)
9 Sec. 8.36. Airport Land Loan Revolving Fund.
10 Appropriations for loans to public airport owners by the
11 Department of Transportation pursuant to Section 34b of the
12 Illinois Aeronautics Act shall be payable from the Airport
13 Land Loan Revolving Fund.
14 Section 10. The Illinois Aeronautics Act is amended by
15 adding Section 34b as follows:
16 (620 ILCS 5/34b new)
17 Sec. 34b. Airport Land Loan Program.
18 (a) The Department may make loans to public airport
19 owners for the purchase of any real estate interests as may
20 be needed for essential airport purposes, including future
21 needs, subject to the following conditions:
22 (1) loans may be made only to public airport owners
23 that are operating an airport as of January 1, 1999; and
24 (2) loans may not be made for airports that provide
25 scheduled commercial air service in counties of greater
26 than 5,000,000 population. The loans are payable from
27 the Airport Land Loan Revolving Fund, subject to
28 appropriation. All repayments of loans made pursuant to
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1 this Section, including interest thereon and penalties,
2 shall be deposited in the Airport Land Loan Revolving
3 Fund. The Treasurer shall deposit all investment
4 earnings arising from balances in the Airport Land Loan
5 Revolving Fund in that Fund.
6 (b) All loans under this Section shall be made by
7 contract between the Department and the public airport owner,
8 which contract shall include the following provisions:
9 (1) The annual rate of interest shall be 2 percent
10 below the Prime Rate charged by banks, as published by
11 the Federal Reserve Board, in effect at the time the
12 Department approves the loan, but in no event shall less
13 than 2 percent be charged.
14 (2) The term of any loan shall not exceed five
15 years, but it may be for less by mutual agreement.
16 (3) Loan payments shall be scheduled in equal
17 amounts for the periods determined under paragraph (4) of
18 this Section. The loan payments shall be calculated so
19 that the loan is completely repaid, with interest, on
20 outstanding balances, by the end of the term determined
21 under paragraph (2) of this Section. There shall be no
22 penalty for early payment ahead of the payment schedule.
23 (4) The period of loan payments shall be annual,
24 unless by mutual agreement a period of less than one year
25 is chosen.
26 (5) The loan shall be secured with the land
27 purchased, in whole or in part, with the loan and
28 considered as collateral. The public airport owner shall
29 assign a first priority interest in the property to the
30 State.
31 (6) If the loan payment is not made within 15 days
32 after the scheduled date determined under paragraph (3)
33 of this Section, a penalty of 10% of the payment shall be
34 assessed. If 30 days after the scheduled payment date no
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1 payment has been received, the loan shall be considered
2 in default.
3 (7) As soon as a loan is considered in default, the
4 Department shall notify the public airport owner and
5 attempt to enter into a renegotiation of the loan payment
6 amounts and schedule determined under paragraph (3) of
7 this Section. In no case shall the term of the loan be
8 extended beyond the initial term determined under
9 paragraph (2) of this Section; nor shall the interest
10 rate be lowered nor any interest be forgiven. If a
11 renegotiation of loan payment amounts and schedule is
12 obtained to the Department's satisfaction within 30 days
13 of notification of default, then the new payment schedule
14 shall replace the one determined by paragraph (3) of this
15 Section and shall be used to measure compliance with the
16 loan for purposes of default. If after 30 days of
17 notification of default the Department has not obtained a
18 renegotiation to its satisfaction, the Department shall
19 declare the loan balance due and payable immediately. If
20 the public airport owner cannot immediately pay the
21 balance of the loan, the Department shall proceed to
22 foreclose.
23 (c) The Department may promulgate any rules that it
24 finds appropriate to implement this Airport Land Loan
25 Program.
26 (d) The Airport Land Loan Revolving Fund is created in
27 the State Treasury.
28 Section 99. Effective date. This Act takes effect upon
29 becoming law.
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