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91_HB2261enr
HB2261 Enrolled LRB9104860DHmg
1 AN ACT to amend the Upper Illinois River Valley
2 Development Authority Act by changing Sections 4 and 7.
3 Be it enacted by the People of the State of Illinois,
4 represented in the General Assembly:
5 Section 5. The Upper Illinois River Valley Development
6 Authority Act is amended by changing Sections 4 and 7 as
7 follows:
8 (70 ILCS 530/4) (from Ch. 85, par. 7154)
9 Sec. 4. Establishment.
10 (a) There is hereby created a political subdivision,
11 body politic and municipal corporation named the Upper
12 Illinois River Valley Development Authority. The territorial
13 jurisdiction of the Authority is that geographic area within
14 the boundaries of Grundy, LaSalle, Bureau, Putnam, Kendall,
15 Kane, McHenry, and Marshall counties in the State of Illinois
16 and any navigable waters and air space located therein.
17 (b) The governing and administrative powers of the
18 Authority shall be vested in a body consisting of 20 18
19 members including, as ex officio members, the Director of the
20 Department of Commerce and Community Affairs, or his or her
21 designee, and the Director of the Department of Central
22 Management Services, or his or her designee. The other 18 16
23 members of the Authority shall be designated "public
24 members", 10 of whom shall be appointed by the Governor with
25 the advice and consent of the Senate and 8 6 of whom shall be
26 appointed one each by the county board chairmen of Grundy,
27 LaSalle, Bureau, Putnam, Kendall, Kane, McHenry, and Marshall
28 counties. All public members shall reside within the
29 territorial jurisdiction of this Act. Eleven Ten members
30 shall constitute a quorum. The public members shall be
31 persons of recognized ability and experience in one or more
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1 of the following areas: economic development, finance,
2 banking, industrial development, small business management,
3 real estate development, community development, venture
4 finance, organized labor or civic, community or neighborhood
5 organization. The Chairman of the Authority shall be elected
6 by the Board annually from the 8 6 members appointed by the
7 county board chairmen.
8 (c) The terms of all initial members of the Authority
9 shall begin 30 days after the effective date of this Act. Of
10 the 14 public members appointed pursuant to this Act, 4
11 appointed by the Governor shall serve until the third Monday
12 in January, 1992, 4 appointed by the Governor shall serve
13 until the third Monday in January, 1993, one appointed by the
14 Governor shall serve until the third Monday in January, 1994,
15 one appointed by the Governor shall serve until the third
16 Monday in January 1999, the member appointed by the county
17 board chairman of LaSalle County shall serve until the third
18 Monday in January, 1992, the members appointed by the county
19 board chairmen of Grundy County, Bureau County, Putnam
20 County, and Marshall County shall serve until the third
21 Monday in January, 1994, and the member appointed by the
22 county board chairman of Kendall County shall serve until the
23 third Monday in January, 1999. The initial members appointed
24 by the chairmen of the county boards of Kane and McHenry
25 counties shall serve until the third Monday in January, 2003.
26 All successors shall be appointed by the original appointing
27 authority and hold office for a term of 3 years commencing
28 the third Monday in January of the year in which their term
29 commences, except in case of an appointment to fill a
30 vacancy. Vacancies occurring among the public members shall
31 be filled for the remainder of the term. In case of vacancy
32 in a Governor-appointed membership when the Senate is not in
33 session, the Governor may make a temporary appointment until
34 the next meeting of the Senate when a person shall be
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1 nominated to fill such office, and any person so nominated
2 who is confirmed by the Senate shall hold office during the
3 remainder of the term and until a successor shall be
4 appointed and qualified. Members of the Authority shall not
5 be entitled to compensation for their services as members but
6 shall be entitled to reimbursement for all necessary expenses
7 incurred in connection with the performance of their duties
8 as members.
9 (d) The Governor may remove any public member of the
10 Authority in case of incompetency, neglect of duty, or
11 malfeasance in office.
12 (e) The Board shall appoint an Executive Director who
13 shall have a background in finance, including familiarity
14 with the legal and procedural requirements of issuing bonds,
15 real estate or economic development and administration. The
16 Executive Director shall hold office at the discretion of the
17 Board. The Executive Director shall be the chief
18 administrative and operational officer of the Authority,
19 shall direct and supervise its administrative affairs and
20 general management, shall perform such other duties as may be
21 prescribed from time to time by the members and shall receive
22 compensation fixed by the Authority. The Executive Director
23 shall attend all meetings of the Authority; however, no
24 action of the Authority shall be invalid on account of the
25 absence of the Executive Director from a meeting. The
26 Authority may engage the services of such other agents and
27 employees, including attorneys, appraisers, engineers,
28 accountants, credit analysts and other consultants, as it may
29 deem advisable and may prescribe their duties and fix their
30 compensation.
31 (f) The Board may, by majority vote, nominate up to 4
32 non-voting members for appointment by the Governor.
33 Non-voting members shall be persons of recognized ability and
34 experience in one or more of the following areas: economic
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1 development, finance, banking, industrial development, small
2 business management, real estate development, community
3 development, venture finance, organized labor or civic,
4 community or neighborhood organization. Non-voting members
5 shall serve at the pleasure of the Board. All non-voting
6 members may attend meetings of the Board and shall be
7 reimbursed as provided in subsection (c).
8 (g) The Board shall create a task force to study and
9 make recommendations to the Board on the economic development
10 of the territory within the jurisdiction of this Act. The
11 members of the task force shall reside within the territorial
12 jurisdiction of this Act, shall serve at the pleasure of the
13 Board and shall be persons of recognized ability and
14 experience in one or more of the following areas: economic
15 development, finance, banking, industrial development, small
16 business management, real estate development, community
17 development, venture finance, organized labor or civic,
18 community or neighborhood organization. The number of
19 members constituting the task force shall be set by the Board
20 and may vary from time to time. The Board may set a specific
21 date by which the task force is to submit its final report
22 and recommendations to the Board.
23 (Source: P.A. 89-211, eff. 8-3-95.)
24 (70 ILCS 530/7) (from Ch. 85, par. 7157)
25 Sec. 7. Bonds.
26 (a) The Authority, with the written approval of the
27 Governor, shall have the continuing power to issue bonds,
28 notes, or other evidences of indebtedness in an aggregate
29 amount not to exceed $250,000,000 $100,000,000 for the
30 purpose of developing, constructing, acquiring or improving
31 projects, including those established by business entities
32 locating or expanding property within the territorial
33 jurisdiction of the Authority, for entering into venture
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1 capital agreements with businesses locating or expanding
2 within the territorial jurisdiction of the Authority, for
3 acquiring and improving any property necessary and useful in
4 connection therewith and for the purposes of the Employee
5 Ownership Assistance Act. For the purpose of evidencing the
6 obligations of the Authority to repay any money borrowed, the
7 Authority may, pursuant to resolution, from time to time
8 issue and dispose of its interest bearing revenue bonds,
9 notes or other evidences of indebtedness and may also from
10 time to time issue and dispose of such bonds, notes or other
11 evidences of indebtedness to refund, at maturity, at a
12 redemption date or in advance of either, any bonds, notes or
13 other evidences of indebtedness pursuant to redemption
14 provisions or at any time before maturity. All such bonds,
15 notes or other evidences of indebtedness shall be payable
16 solely and only from the revenues or income to be derived
17 from loans made with respect to projects, from the leasing or
18 sale of the projects or from any other funds available to the
19 Authority for such purposes. The bonds, notes or other
20 evidences of indebtedness may bear such date or dates, may
21 mature at such time or times not exceeding 40 years from
22 their respective dates, may bear interest at such rate or
23 rates not exceeding the maximum rate permitted by "An Act to
24 authorize public corporations to issue bonds, other evidences
25 of indebtedness and tax anticipation warrants subject to
26 interest rate limitations set forth therein", approved May
27 26, 1970, as amended, may be in such form, may carry such
28 registration privileges, may be executed in such manner, may
29 be payable at such place or places, may be made subject to
30 redemption in such manner and upon such terms, with or
31 without premium as is stated on the face thereof, may be
32 authenticated in such manner and may contain such terms and
33 covenants as may be provided by an applicable resolution.
34 (b-1) The holder or holders of any bonds, notes or other
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1 evidences of indebtedness issued by the Authority may bring
2 suits at law or proceedings in equity to compel the
3 performance and observance by any corporation or person or by
4 the Authority or any of its agents or employees of any
5 contract or covenant made with the holders of such bonds,
6 notes or other evidences of indebtedness, to compel such
7 corporation, person, the Authority and any of its agents or
8 employees to perform any duties required to be performed for
9 the benefit of the holders of any such bonds, notes or other
10 evidences of indebtedness by the provision of the resolution
11 authorizing their issuance and to enjoin such corporation,
12 person, the Authority and any of its agents or employees from
13 taking any action in conflict with any such contract or
14 covenant.
15 (b-2) If the Authority fails to pay the principal of or
16 interest on any of the bonds or premium, if any, as the same
17 become due, a civil action to compel payment may be
18 instituted in the appropriate circuit court by the holder or
19 holders of the bonds on which such default of payment exists
20 or by an indenture trustee acting on behalf of such holders.
21 Delivery of a summons and a copy of the complaint to the
22 Chairman of the Board shall constitute sufficient service to
23 give the circuit court jurisdiction of the subject matter of
24 such a suit and jurisdiction over the Authority and its
25 officers named as defendants for the purpose of compelling
26 such payment. Any case, controversy or cause of action
27 concerning the validity of this Act relates to the revenue of
28 the State of Illinois.
29 (c) Notwithstanding the form and tenor of any such
30 bonds, notes or other evidences of indebtedness and in the
31 absence of any express recital on the face thereof that it is
32 non-negotiable, all such bonds, notes and other evidences of
33 indebtedness shall be negotiable instruments. Pending the
34 preparation and execution of any such bonds, notes or other
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1 evidences of indebtedness, temporary bonds, notes or
2 evidences of indebtedness may be issued as provided by
3 ordinance.
4 (d) To secure the payment of any or all of such bonds,
5 notes or other evidences of indebtedness, the revenues to be
6 received by the Authority from a lease agreement or loan
7 agreement shall be pledged, and, for the purpose of setting
8 forth the covenants and undertakings of the Authority in
9 connection with the issuance thereof and the issuance of any
10 additional bonds, notes or other evidences of indebtedness
11 payable from such revenues, income or other funds to be
12 derived from projects, the Authority may execute and deliver
13 a mortgage or trust agreement. A remedy for any breach or
14 default of the terms of any such mortgage or trust agreement
15 by the Authority may be by mandamus proceedings in the
16 appropriate circuit court to compel the performance and
17 compliance therewith, but the trust agreement may prescribe
18 by whom or on whose behalf such action may be instituted.
19 (e) Such bonds or notes shall be secured as provided in
20 the authorizing ordinance which may, notwithstanding any
21 other provision of this Act, include in addition to any other
22 security a specific pledge or assignment of and lien on or
23 security interest in any or all revenues or money of the
24 Authority from whatever source which may by law be used for
25 debt service purposes and a specific pledge or assignment of
26 and lien on or security interest in any funds or accounts
27 established or provided for by ordinance of the Authority
28 authorizing the issuance of such bonds or notes.
29 (f) In the event that the Authority determines that
30 monies of the Authority will not be sufficient for the
31 payment of the principal of and interest on its bonds during
32 the next State fiscal year, the Chairman, as soon as
33 practicable, shall certify to the Governor the amount
34 required by the Authority to enable it to pay such principal
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1 of and interest on the bonds. The Governor shall submit the
2 amount so certified to the General Assembly as soon as
3 practicable, but no later than the end of the current State
4 fiscal year. This Section shall not apply to any bonds or
5 notes as to which the Authority shall have determined, in the
6 resolution authorizing the issuance of the bonds or notes,
7 that this Section shall not apply. Whenever the Authority
8 makes such a determination, that fact shall be plainly stated
9 on the face of the bonds or notes and that fact shall also be
10 reported to the Governor.
11 In the event of a withdrawal of moneys from a reserve
12 fund established with respect to any issue or issues of bonds
13 of the Authority to pay principal or interest on those bonds,
14 the Chairman of the Authority, as soon as practicable, shall
15 certify to the Governor the amount required to restore the
16 reserve fund to the level required in the resolution or
17 indenture securing those bonds. The Governor shall submit the
18 amount so certified to the General Assembly as soon as
19 practicable, but no later than the end of the current State
20 fiscal year.
21 (g) The State of Illinois pledges to and agrees with the
22 holders of the bonds and notes of the Authority issued
23 pursuant to this Section that the State will not limit or
24 alter the rights and powers vested in the Authority by this
25 Act so as to impair the terms of any contract made by the
26 Authority with such holders or in any way impair the rights
27 and remedies of such holders until such bonds and notes,
28 together with interest thereon, with interest on any unpaid
29 installments of interest, and all costs and expenses in
30 connection with any action or proceedings by or on behalf of
31 such holders, are fully met and discharged. In addition, the
32 State pledges to and agrees with the holders of the bonds and
33 notes of the Authority issued pursuant to this Section that
34 the State will not limit or alter the basis on which State
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1 funds are to be paid to the Authority as provided in this
2 Act, or the use of such funds, so as to impair the terms of
3 any such contract. The Authority is authorized to include
4 these pledges and agreements of the State in any contract
5 with the holders of bonds or notes issued pursuant to this
6 Section.
7 (h) Not less than 30 days prior to the commitment to
8 issue bonds, notes, or other evidences of indebtedness for
9 the purpose of developing, constructing, acquiring or
10 improving housing or residential projects, as defined in
11 Section 3, the Authority shall provide notice to the
12 Executive Director of the Illinois Housing Development
13 Authority. Within 30 days after notice is provided, the
14 Illinois Housing Development Authority shall either in
15 writing express interest in financing the project or notify
16 the Authority that it is not interested in providing such
17 financing and the Authority may finance the project or seek
18 alternative financing.
19 (Source: P.A. 86-1024; 86-1313; 87-158; 87-778.)
20 Section 99. Effective date. This Act takes effect upon
21 becoming law.
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