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91_HB1274eng
HB1274 Engrossed LRB9102393NTsb
1 AN ACT to amend the Illinois Educational Facilities
2 Authority Act.
3 Be it enacted by the People of the State of Illinois,
4 represented in the General Assembly:
5 Section 5. The Illinois Educational Facilities Authority
6 Act is amended by changing Sections 1, 3, 3.03, 3.06, 3.06a,
7 3.07c, 3.08, 5.11, 5.12, 5.16, and 24 and adding Sections
8 3.10, 5.11a, and 5.11b as follows:
9 (110 ILCS 1015/1) (from Ch. 144, par. 1301)
10 Sec. 1. Declaration of purpose. It is declared that for
11 the benefit of the people of the State of Illinois, the
12 conduct and increase of their commerce, the protection and
13 enhancement of their welfare, the development of continued
14 prosperity and the improvement of their health and living
15 conditions it is essential that all the people of the State
16 be given the fullest opportunity to learn and to develop
17 their intellectual and mental capacities and skills; that to
18 achieve these ends it is of the utmost importance that
19 private institutions of higher education within the State be
20 provided with appropriate additional means to assist the
21 people of the State in achieving the required levels of
22 learning and development of their intellectual and mental
23 capacities and skills and that cultural institutions within
24 the State be provided with appropriate additional means to
25 expand the services and resources which they offer for the
26 cultural, intellectual, scientific, educational and artistic
27 enrichment of the people of the State; and that, in execution
28 of the public policy set forth above, it is the purpose of
29 this Act to provide a measure of assistance and an
30 alternative method of financing to enable private
31 institutions of higher education and cultural institutions in
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1 the State to: (i) finance or to refund or refinance
2 outstanding indebtedness incurred by them for the
3 construction or acquisition of educational facilities and
4 structures or cultural facilities and structures, whether or
5 not constructed or acquired prior to the effective date of
6 this Act, (ii) and to provide the needed additional
7 facilities and structures for the public benefit and good,
8 and (iii) enable these institutions to obtain working capital
9 through financing or refinancing of their accounts receivable
10 or otherwise in execution of the public policy set forth
11 above.
12 (Source: P.A. 88-555, eff. 7-27-94.)
13 (110 ILCS 1015/3) (from Ch. 144, par. 1303)
14 Sec. 3. Definitions. In this Act, unless the context
15 otherwise requires, the terms specified in Sections 3.01
16 through 3.10 3.09 have the meanings ascribed to them in those
17 Sections.
18 (Source: P.A. 84-995.)
19 (110 ILCS 1015/3.03) (from Ch. 144, par. 1303.03)
20 Sec. 3.03. Cost. "Cost", as applied to a project
21 financed under this Act, means all costs necessary or
22 incident to the acquisition, and construction, and financing
23 of the project, including the costs of refunding or
24 refinancing outstanding indebtedness incurred for the
25 financing of such project, engineering, legal and,
26 architectural fees, working capital, and all other necessary
27 and incidental expenses, together with interest on bonds
28 issued to finance the project to a date 6 months subsequent
29 to the estimated date of completion.
30 (Source: P.A. 78-399.)
31 (110 ILCS 1015/3.06) (from Ch. 144, par. 1303.06)
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1 Sec. 3.06. Educational facility. "Educational facility"
2 may comprise any property located within the State or, if the
3 property is owned, operated, or managed by or for the benefit
4 of a participating institution or an affiliate of the
5 institution, located outside the State, constructed or
6 acquired before or after the effective date of this Act,
7 which is or will be, in whole or in part, suitable for the
8 instruction, feeding, recreation or housing of students, the
9 conducting of research or other work of a private institution
10 of higher education, the use by a private institution of
11 higher education in connection with any educational, research
12 or related or incidental activities then being or to be
13 conducted by it, or any combination of the foregoing,
14 including, without limitation, any such property suitable for
15 use as or in connection with any one or more of the
16 following: an academic facility, administrative facility,
17 agricultural facility, assembly hall, athletic facility,
18 auditorium, boating facility, campus, communication facility,
19 computer facility, continuing education facility, classroom,
20 dining hall, dormitory, exhibition hall, fire fighting
21 facility, fire prevention facility, food service and
22 preparation facility, gymnasium, greenhouse, health care
23 facility, hospital, housing, instructional facility,
24 laboratory, library, maintenance facility, medical facility,
25 museum, offices, parking area, physical education facility,
26 recreational facility, research facility, stadium, storage
27 facility, student union, study facility, theatre or utility.
28 An educational facility shall not include any property used
29 or to be used for sectarian instruction or study or as a
30 place for devotional activities or religious worship nor any
31 property which is used or to be used primarily in connection
32 with any part of the program of a school or department of
33 divinity for any religious denomination.
34 (Source: P.A. 78-399.)
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1 (110 ILCS 1015/3.06a) (from Ch. 144, par. 1303.06a)
2 Sec. 3.06a. Cultural facility. "Cultural facility" may
3 comprise any property located within the State or, if the
4 property is owned, operated, or managed by or for the benefit
5 of a participating institution or an affiliate of the
6 institution, located outside the State, constructed or
7 acquired before or after the effective date of this Act,
8 which is or will be, in whole or in part, suitable for the
9 particular purposes or needs of a cultural institution,
10 including, without limitation, any such property suitable for
11 use as or in connection with any one or more of the
12 following: an administrative facility, aquarium, assembly
13 hall, auditorium, botanical garden, exhibition hall, gallery,
14 greenhouse, library, museum, scientific laboratory, theater
15 or zoological facility, and shall also include, without
16 limitation, books, works of art or music, animal, plant or
17 aquatic life or other items for display, exhibition or
18 performance. The term "cultural facility" includes buildings
19 on the National Register of Historic Places which are owned
20 or operated by nonprofit entities. A cultural facility shall
21 not include any property used or to be used for sectarian
22 instruction or study or as a place for devotional activities
23 or religious worship nor any property which is used or to be
24 used primarily in connection with any part of the program of
25 a school or department of divinity for any religious
26 denomination.
27 (Source: P.A. 84-995.)
28 (110 ILCS 1015/3.07c) (from Ch. 144, par. 1303.07c)
29 Sec. 3.07c. Participating institution. "Participating
30 institution" means a private institution of higher education,
31 a cultural institution, or a not for profit organization that
32 provides financial or other assistance to or for the benefit
33 of private institutions of higher education or cultural
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1 institutions, as the case may be, which, pursuant to the
2 provisions of this Act, undertakes a project or the refunding
3 or refinancing of outstanding indebtedness incurred for the
4 financing of a project or undertakes the financing of working
5 capital.
6 (Source: P.A. 88-555, eff. 7-27-94.)
7 (110 ILCS 1015/3.08) (from Ch. 144, par. 1303.08)
8 Sec. 3.08. Property. "Property" means any real, personal
9 or mixed property, or any interest therein, including,
10 without limitation, any real estate, appurtenances,
11 buildings, easements, equipment, furnishings, furniture,
12 improvements, machinery, commodities, rights of way and
13 structures, or any interest therein.
14 (Source: P.A. 76-1810.)
15 (110 ILCS 1015/3.10 new)
16 Sec. 3.10. Working capital. "Working capital" means,
17 with respect to any participating institution, funds to be
18 used in or reserved for the operations of the participating
19 institution.
20 (110 ILCS 1015/5.11) (from Ch. 144, par. 1305.11)
21 Sec. 5.11. Loans for cost of project and related capital
22 needs. To make loans to any participating institution for
23 the cost of a project and other related capital needs in
24 accordance with an agreement between the Authority and the
25 participating institution; provided that no such loan shall
26 exceed the total cost of the project as determined by the
27 participating institution and approved by the Authority.
28 (Source: P.A. 84-995.)
29 (110 ILCS 1015/5.11a new)
30 Sec. 5.11a. Working capital bonds. In accordance with
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1 applicable law, to issue bonds for the purpose of financing
2 working capital for one or more participating institutions,
3 whether through a financing of their accounts receivable or
4 otherwise, either singly or on a combined basis with other
5 participating institutions.
6 (110 ILCS 1015/5.11b new)
7 Sec. 5.11b. Issuance of bonds for bulk purchases. To
8 issue bonds for the purpose of purchasing, leasing, or
9 otherwise acquiring, financing, selling, or transferring for,
10 to, or on behalf of itself and any participating institution,
11 either alone or in partnership with other participating
12 institutions, commodities or other property necessary for the
13 daily operation of the educational facilities or cultural
14 facilities of the participating institutions and for their
15 employees and patrons, including, but not limited to,
16 electricity, petroleum products, fuel oil, and natural gas.
17 (110 ILCS 1015/5.12) (from Ch. 144, par. 1305.12)
18 Sec. 5.12. Loans to refund outstanding obligations or
19 advances. To make loans to a participating institution to
20 refund outstanding obligations or advances issued, made or
21 given by such participating institution for the cost of a
22 project or for working capital.
23 (Source: P.A. 84-995.)
24 (110 ILCS 1015/5.16) (from Ch. 144, par. 1305.16)
25 Sec. 5.16. Bonds for refunding or refinancing
26 outstanding indebtedness. To issue bonds for the purpose of
27 refunding or refinancing the outstanding indebtedness of a
28 participating institution, whether or not outstanding prior
29 to or after the effective date of this Act, provided that
30 such indebtedness was originally incurred for the purpose of
31 constructing or acquiring an educational facility or a
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1 cultural facility or for the purpose of acquiring working
2 capital.
3 (Source: P.A. 84-995.)
4 (110 ILCS 1015/24) (from Ch. 144, par. 1324)
5 Sec. 24. Purchase of securities; security; title to
6 facilities.
7 (a) Notwithstanding any other provision of this Act to
8 the contrary, the Authority may finance the cost of an
9 educational facility or cultural facility, finance working
10 capital, or finance other capital needs or refund outstanding
11 indebtedness incurred prior to or after the effective date of
12 this Act for the construction or acquisition of an
13 educational facility or cultural facility, for the financing
14 of working capital, or for other related capital needs by
15 issuing its bonds for the purpose of purchasing the
16 securities of a participating institution. Any such
17 securities shall have the same principal amounts, maturities
18 and interest rates as the bonds so being issued, may be
19 secured by a first mortgage lien on the educational facility
20 or cultural facility so being financed or by a first mortgage
21 lien or security interests in other real or personal property
22 acceptable to the Authority and created by a mortgage
23 instrument or security agreement satisfactory to the
24 Authority, and may be insured or guaranteed by others. Any
25 such bonds shall be secured by a pledge of such securities
26 under the trust agreement or indenture creating such bonds
27 and, shall be payable solely out of the payments to be made
28 on such securities and shall not exceed in principal amount
29 the cost of such educational facility or cultural facility as
30 determined by the participating institution and approved by
31 the Authority. In other respects, any such bonds shall be
32 subject to the provisions of Section 9 (c) of this Act and
33 the trust agreement or indenture creating such bonds may
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1 contain such of the provisions set forth in Section 9 (d)
2 hereof as the Authority may deem appropriate.
3 (b) In the event that an educational facility or
4 cultural facility is financed pursuant to this Section, the
5 title to such facility shall remain in the participating
6 institution owning the same, subject to the lien of the
7 mortgage, if any, securing the securities then being
8 purchased, and there shall be no lease of such facility
9 between the Authority and such participating institution.
10 (c) The provisions of Section 8 of this Act shall not
11 apply to any educational facility or cultural facility
12 financed pursuant to this Section, but the Authority shall
13 return the securities, if any, purchased through the issuance
14 of bonds hereunder to the participating institution issuing
15 such securities when such bonds have been fully paid and
16 retired or when adequate provision has been made to pay and
17 retire the same fully and all other conditions of the trust
18 agreement or indenture creating such bonds have been
19 satisfied and the lien thereof has been released in
20 accordance with the provisions thereof.
21 (Source: P.A. 88-555, eff. 7-27-94.)
22 Section 99. Effective date. This Act takes effect upon
23 becoming law.
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