Public Act 93-0205
SB1075 Enrolled LRB093 08352 JAM 08571 b
AN ACT concerning finance.
Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
ARTICLE 801
GENERAL PROVISIONS
Section 801-1. Short Title. Articles 80 through 845 of
this Act may be cited as the Illinois Finance Authority Act.
References to "this Act" in Articles 801 through 845 are
references to the Illinois Finance Authority Act.
Section 801-5. Findings and declaration of policy. The
General Assembly hereby finds, determines and declares:
(a) that there are a number of existing State authorities
authorized to issue bonds to alleviate the conditions and
promote the objectives set forth below; and to provide a
stronger, better coordinated development effort, it is
determined to be in the interest of promoting the health,
safety, morals and general welfare of all the people of the
State to consolidate certain of such existing authorities
into one finance authority;
(b) that involuntary unemployment affects the health,
safety, morals and general welfare of the people of the State
of Illinois;
(c) that the economic burdens resulting from involuntary
unemployment fall in part upon the State in the form of
public assistance and reduced tax revenues, and in the event
the unemployed worker and his family migrate elsewhere to
find work, may also fall upon the municipalities and other
taxing districts within the areas of unemployment in the form
of reduced tax revenues, thereby endangering their financial
ability to support necessary governmental services for their
remaining inhabitants;
(d) that a vigorous growing economy is the basic source
of job opportunities;
(e) that protection against involuntary unemployment, its
economic burdens and the spread of economic stagnation can
best be provided by promoting, attracting, stimulating and
revitalizing industry, manufacturing and commerce in the
State;
(f) that the State has a responsibility to help create a
favorable climate for new and improved job opportunities for
its citizens by encouraging the development of commercial
businesses and industrial and manufacturing plants within the
State;
(g) that increased availability of funds for construction
of new facilities and the expansion and improvement of
existing facilities for industrial, commercial and
manufacturing facilities will provide for new and continued
employment in the construction industry and alleviate the
burden of unemployment;
(h) that in the absence of direct governmental subsidies
the unaided operations of private enterprise do not provide
sufficient resources for residential construction,
rehabilitation, rental or purchase, and that support from
housing related commercial facilities is one means of
stimulating residential construction, rehabilitation, rental
and purchase;
(i) that it is in the public interest and the policy of
this State to foster and promote by all reasonable means the
provision of adequate capital markets and facilities for
borrowing money by units of local government, and for the
financing of their respective public improvements and other
governmental purposes within the State from proceeds of bonds
or notes issued by those governmental units; and to assist
local governmental units in fulfilling their needs for those
purposes by use of creation of indebtedness;
(j) that it is in the public interest and the policy of
this State to the extent possible, to reduce the costs of
indebtedness to taxpayers and residents of this State and to
encourage continued investor interest in the purchase of
bonds or notes of governmental units as sound and preferred
securities for investment; and to encourage governmental
units to continue their independent undertakings of public
improvements and other governmental purposes and the
financing thereof, and to assist them in those activities by
making funds available at reduced interest costs for orderly
financing of those purposes, especially during periods of
restricted credit or money supply, and particularly for those
governmental units not otherwise able to borrow for those
purposes;
(k) that in this State the following conditions exist:
(i) an inadequate supply of funds at interest rates
sufficiently low to enable persons engaged in agriculture in
this State to pursue agricultural operations at present
levels; (ii) that such inability to pursue agricultural
operations lessens the supply of agricultural commodities
available to fulfill the needs of the citizens of this State;
(iii) that such inability to continue operations decreases
available employment in the agricultural sector of the State
and results in unemployment and its attendant problems; (iv)
that such conditions prevent the acquisition of an adequate
capital stock of farm equipment and machinery, much of which
is manufactured in this State, therefore impairing the
productivity of agricultural land and, further, causing
unemployment or lack of appropriate increase in employment in
such manufacturing; (v) that such conditions are conducive to
consolidation of acreage of agricultural land with fewer
individuals living and farming on the traditional family
farm; (vi) that these conditions result in a loss in
population, unemployment and movement of persons from rural
to urban areas accompanied by added costs to communities for
creation of new public facilities and services; (vii) that
there have been recurrent shortages of funds for agricultural
purposes from private market sources at reasonable rates of
interest; (viii) that these shortages have made the sale and
purchase of agricultural land to family farmers a virtual
impossibility in many parts of the State; (ix) that the
ordinary operations of private enterprise have not in the
past corrected these conditions; and (x) that a stable supply
of adequate funds for agricultural financing is required to
encourage family farmers in an orderly and sustained manner
and to reduce the problems described above;
(l) 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;
(m) that in order to foster civic and neighborhood pride,
citizens require access to facilities such as educational
institutions, recreation, parks and open spaces,
entertainment and sports, a reliable transportation network,
cultural facilities and theaters and other facilities as
authorized by this Act, and that it is in the best interests
of the State to lower the costs of all such facilities by
providing financing through the State; and
(n) that to preserve and protect the health of the
citizens of the State, and lower the costs of health care,
that financing for health facilities should be provided
through the State; and it is hereby declared to be the policy
of the State, in the interest of promoting the health,
safety, morals and general welfare of all the people of the
State, to address the conditions noted above, to increase job
opportunities and to retain existing jobs in the State, by
making available through the Illinois Finance Authority,
hereinafter created, funds for the development, improvement
and creation of industrial, housing, local government,
educational, health, public purpose and other projects; to
issue its bonds and notes to make funds at reduced rates and
on more favorable terms for borrowing by local governmental
units through the purchase of the bonds or notes of the
governmental units; and to make or acquire loans for the
acquisition and development of agricultural facilities; to
provide financing for private institutions of higher
education, cultural institutions, health facilities and other
facilities and projects as authorized by this Act; and to
grant broad powers to the Illinois Finance Authority to
accomplish and to carry out these policies of the State which
are in the public interest of the State and of its taxpayers
and residents.
Section 801-10. Definitions. The following terms,
whenever used or referred to in this Act, shall have the
following meanings, except in such instances where the
context may clearly indicate otherwise:
(a) The term "Authority" means the Illinois Finance
Authority created by this Act.
(b) The term "project" means an industrial project,
housing project, public purpose project, higher education
project, health facility project, cultural institution
project, agricultural facility or agribusiness, and "project"
may include any combination of one or more of the foregoing
undertaken jointly by any person with one or more other
persons, but "project" shall not include any facility used or
to be used for sectarian instruction or as a place of
religious worship nor any facility 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 or the training of ministers, priests, rabbis or
other professional persons in the field of religion.
(c) The term "public purpose project" means any project
or facility including without limitation land, buildings,
structures, machinery, equipment and all other real and
personal property, which is authorized or required by law to
be acquired, constructed, improved, rehabilitated,
reconstructed, replaced or maintained by any unit of
government or any other lawful public purpose which is
authorized or required by law to be undertaken by any unit of
government.
(d) The term "industrial project" means the acquisition,
construction, refurbishment, creation, development or
redevelopment of any facility, equipment, machinery, real
property or personal property for use by any instrumentality
of the State or its political subdivisions, for use by any
person or institution, public or private, for profit or not
for profit, or for use in any trade or business including,
but not limited to, any industrial, manufacturing or
commercial enterprise and which is (1) a capital project
including but not limited to: (i) land and any rights
therein, one or more buildings, structures or other
improvements, machinery and equipment, whether now existing
or hereafter acquired, and whether or not located on the same
site or sites; (ii) all appurtenances and facilities
incidental to the foregoing, including, but not limited to
utilities, access roads, railroad sidings, track, docking and
similar facilities, parking facilities, dockage, wharfage,
railroad roadbed, track, trestle, depot, terminal, switching
and signaling or related equipment, site preparation and
landscaping; and (iii) all non-capital costs and expenses
relating thereto or (2) any addition to, renovation,
rehabilitation or improvement of a capital project or (3) any
activity or undertaking which the Authority determines will
aid, assist or encourage economic growth, development or
redevelopment within the State or any area thereof, will
promote the expansion, retention or diversification of
employment opportunities within the State or any area thereof
or will aid in stabilizing or developing any industry or
economic sector of the State economy. The term "industrial
project" also means the production of motion pictures.
(e) The term "bond" or "bonds" shall include bonds, notes
(including bond, grant or revenue anticipation notes),
certificates and/or other evidences of indebtedness
representing an obligation to pay money, including refunding
bonds.
(f) The terms "lease agreement" and "loan agreement"
shall mean: (i) an agreement whereby a project acquired by
the Authority by purchase, gift or lease is leased to any
person, corporation or unit of local government which will
use or cause the project to be used as a project as
heretofore defined upon terms providing for lease rental
payments at least sufficient to pay when due all principal
of, interest and premium, if any, on any bonds of the
Authority issued with respect to such project, providing for
the maintenance, insuring and operation of the project on
terms satisfactory to the Authority, providing for
disposition of the project upon termination of the lease
term, including purchase options or abandonment of the
premises, and such other terms as may be deemed desirable by
the Authority, or (ii) any agreement pursuant to which the
Authority agrees to loan the proceeds of its bonds issued
with respect to a project or other funds of the Authority to
any person which will use or cause the project to be used as
a project as heretofore defined upon terms providing for loan
repayment installments at least sufficient to pay when due
all principal of, interest and premium, if any, on any bonds
of the Authority, if any, issued with respect to the project,
and providing for maintenance, insurance and other matters as
may be deemed desirable by the Authority.
(g) The term "financial aid" means the expenditure of
Authority funds or funds provided by the Authority through
the issuance of its bonds, notes or other evidences of
indebtedness or from other sources for the development,
construction, acquisition or improvement of a project.
(h) The term "person" means an individual, corporation,
unit of government, business trust, estate, trust,
partnership or association, 2 or more persons having a joint
or common interest, or any other legal entity.
(i) The term "unit of government" means the federal
government, the State or unit of local government, a school
district, or any agency or instrumentality, office, officer,
department, division, bureau, commission, college or
university thereof.
(j) The term "health facility" means: (a) any public or
private institution, place, building, or agency required to
be licensed under the Hospital Licensing Act; (b) any public
or private institution, place, building, or agency required
to be licensed under the Nursing Home Care Act; (c) any
public or licensed private hospital as defined in the Mental
Health and Developmental Disabilities Code; (d) any such
facility exempted from such licensure when the Director of
Public Health attests that such exempted facility meets the
statutory definition of a facility subject to licensure; (e)
any other public or private health service institution,
place, building, or agency which the Director of Public
Health attests is subject to certification by the Secretary,
U.S. Department of Health and Human Services under the Social
Security Act, as now or hereafter amended, or which the
Director of Public Health attests is subject to
standard-setting by a recognized public or voluntary
accrediting or standard-setting agency; (f) any public or
private institution, place, building or agency engaged in
providing one or more supporting services to a health
facility; (g) any public or private institution, place,
building or agency engaged in providing training in the
healing arts, including but not limited to schools of
medicine, dentistry, osteopathy, optometry, podiatry,
pharmacy or nursing, schools for the training of x-ray,
laboratory or other health care technicians and schools for
the training of para-professionals in the health care field;
(h) any public or private congregate, life or extended care
or elderly housing facility or any public or private home for
the aged or infirm, including, without limitation, any
Facility as defined in the Life Care Facilities Act; (i) any
public or private mental, emotional or physical
rehabilitation facility or any public or private educational,
counseling, or rehabilitation facility or home, for those
persons with a developmental disability, those who are
physically ill or disabled, the emotionally disturbed, those
persons with a mental illness or persons with learning or
similar disabilities or problems; (j) any public or private
alcohol, drug or substance abuse diagnosis, counseling
treatment or rehabilitation facility, (k) any public or
private institution, place, building or agency licensed by
the Department of Children and Family Services or which is
not so licensed but which the Director of Children and Family
Services attests provides child care, child welfare or other
services of the type provided by facilities subject to such
licensure; (l) any public or private adoption agency or
facility; and (m) any public or private blood bank or blood
center. "Health facility" also means a public or private
structure or structures suitable primarily for use as a
laboratory, laundry, nurses or interns residence or other
housing or hotel facility used in whole or in part for staff,
employees or students and their families, patients or
relatives of patients admitted for treatment or care in a
health facility, or persons conducting business with a health
facility, physician's facility, surgicenter, administration
building, research facility, maintenance, storage or utility
facility and all structures or facilities related to any of
the foregoing or required or useful for the operation of a
health facility, including parking or other facilities or
other supporting service structures required or useful for
the orderly conduct of such health facility.
(k) The term "participating health institution" means a
private corporation or association or public entity of this
State, authorized by the laws of this State to provide or
operate a health facility as defined in this Act and which,
pursuant to the provisions of this Act, undertakes the
financing, construction or acquisition of a project or
undertakes the refunding or refinancing of obligations,
loans, indebtedness or advances as provided in this Act.
(l) The term "health facility project", means a specific
health facility work or improvement to be financed or
refinanced (including without limitation through
reimbursement of prior expenditures), acquired, constructed,
enlarged, remodeled, renovated, improved, furnished, or
equipped, with funds provided in whole or in part hereunder,
any accounts receivable, working capital, liability or
insurance cost or operating expense financing or refinancing
program of a health facility with or involving funds provided
in whole or in part hereunder, or any combination thereof.
(m) The term "bond resolution" means the resolution or
resolutions authorizing the issuance of, or providing terms
and conditions related to, bonds issued under this Act and
includes, where appropriate, any trust agreement, trust
indenture, indenture of mortgage or deed of trust providing
terms and conditions for such bonds.
(n) The term "property" means any real, personal or mixed
property, whether tangible or intangible, or any interest
therein, including, without limitation, any real estate,
leasehold interests, appurtenances, buildings, easements,
equipment, furnishings, furniture, improvements, machinery,
rights of way, structures, accounts, contract rights or any
interest therein.
(o) The term "revenues" means, with respect to any
project, the rents, fees, charges, interest, principal
repayments, collections and other income or profit derived
therefrom.
(p) The term "higher education project" means, in the
case of a private institution of higher education, an
educational facility to be acquired, constructed, enlarged,
remodeled, renovated, improved, furnished, or equipped, or
any combination thereof.
(q) The term "cultural institution project" means, in the
case of a cultural institution, a cultural facility to be
acquired, constructed, enlarged, remodeled, renovated,
improved, furnished, or equipped, or any combination thereof.
(r) The term "educational facility" means any property
located within 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.
(s) The term "cultural facility" means any property
located within 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.
(t) "Private institution of higher education" means a
not-for-profit educational institution which is not owned by
the State or any political subdivision, agency,
instrumentality, district or municipality thereof, which is
authorized by law to provide a program of education beyond
the high school level and which:
(1) Admits as regular students only individuals
having a certificate of graduation from a high school, or
the recognized equivalent of such a certificate;
(2) Provides an educational program for which it
awards a bachelor's degree, or provides an educational
program, admission into which is conditioned upon the
prior attainment of a bachelor's degree or its
equivalent, for which it awards a postgraduate degree, or
provides not less than a 2-year program which is
acceptable for full credit toward such a degree, or
offers a 2-year program in engineering, mathematics, or
the physical or biological sciences which is designed to
prepare the student to work as a technician and at a
semiprofessional level in engineering, scientific, or
other technological fields which require the
understanding and application of basic engineering,
scientific, or mathematical principles or knowledge;
(3) Is accredited by a nationally recognized
accrediting agency or association or, if not so
accredited, is an institution whose credits are accepted,
on transfer, by not less than 3 institutions which are so
accredited, for credit on the same basis as if
transferred from an institution so accredited, and holds
an unrevoked certificate of approval under the Private
College Act from the Board of Higher Education, or is
qualified as a "degree granting institution" under the
Academic Degree Act; and
(4) Does not discriminate in the admission of
students on the basis of race, color or creed. "Private
institution of higher education" also includes any
"academic institution".
(u) The term "academic institution" means any
not-for-profit institution which is not owned by the State or
any political subdivision, agency, instrumentality, district
or municipality thereof, which institution engages in, or
facilitates academic, scientific, educational or professional
research or learning in a field or fields of study taught at
a private institution of higher education. Academic
institutions include, without limitation, libraries,
archives, academic, scientific, educational or professional
societies, institutions, associations or foundations having
such purposes. Academic institution does not include any
school or any institution primarily engaged in religious or
sectarian activities.
(v) The term "cultural institution" means any
not-for-profit institution which is not owned by the State or
any political subdivision, agency, instrumentality, district
or municipality thereof, which institution engages in the
cultural, intellectual, scientific, educational or artistic
enrichment of the people of the State. Cultural institutions
include, without limitation, aquaria, botanical societies,
historical societies, libraries, museums, performing arts
associations or societies, scientific societies and
zoological societies. Cultural institution does not include
any institution primarily engaged in religious or sectarian
activities.
(w) The term "affiliate" means, with respect to financing
of an agricultural facility or an agribusiness, any lender,
any person, firm or corporation controlled by, or under
common control with, such lender, and any person, firm or
corporation controlling such lender.
(x) The term "agricultural facility" means land, any
building or other improvement thereon or thereto, and any
personal properties deemed necessary or suitable for use,
whether or not now in existence, in farming, ranching, the
production of agricultural commodities (including, without
limitation, the products of aquaculture, hydroponics and
silviculture) or the treating, processing or storing of such
agricultural commodities when such activities are customarily
engaged in by farmers as a part of farming.
(y) The term "lender" with respect to financing of an
agricultural facility or an agribusiness, means any federal
or State chartered bank, Federal Land Bank, Production Credit
Association, Bank for Cooperatives, federal or State
chartered savings and loan association or building and loan
association, Small Business Investment Company or any other
institution qualified within this State to originate and
service loans, including, but without limitation to,
insurance companies, credit unions and mortgage loan
companies. "Lender" also means a wholly owned subsidiary of a
manufacturer, seller or distributor of goods or services that
makes loans to businesses or individuals, commonly known as a
"captive finance company".
(z) The term "agribusiness" means any sole
proprietorship, limited partnership, co-partnership, joint
venture, corporation or cooperative which operates or will
operate a facility located within the State of Illinois that
is related to the processing of agricultural commodities
(including, without limitation, the products of aquaculture,
hydroponics and silviculture) or the manufacturing,
production or construction of agricultural buildings,
structures, equipment, implements, and supplies, or any other
facilities or processes used in agricultural production.
Agribusiness includes but is not limited to the following:
(1) grain handling and processing, including grain
storage, drying, treatment, conditioning, mailing and
packaging;
(2) seed and feed grain development and processing;
(3) fruit and vegetable processing, including
preparation, canning and packaging;
(4) processing of livestock and livestock products,
dairy products, poultry and poultry products, fish or
apiarian products, including slaughter, shearing,
collecting, preparation, canning and packaging;
(5) fertilizer and agricultural chemical
manufacturing, processing, application and supplying;
(6) farm machinery, equipment and implement
manufacturing and supplying;
(7) manufacturing and supplying of agricultural
commodity processing machinery and equipment, including
machinery and equipment used in slaughter, treatment,
handling, collecting, preparation, canning or packaging
of agricultural commodities;
(8) farm building and farm structure manufacturing,
construction and supplying;
(9) construction, manufacturing, implementation,
supplying or servicing of irrigation, drainage and soil
and water conservation devices or equipment;
(10) fuel processing and development facilities that
produce fuel from agricultural commodities or byproducts;
(11) facilities and equipment for processing and
packaging agricultural commodities specifically for
export;
(12) facilities and equipment for forestry product
processing and supplying, including sawmilling
operations, wood chip operations, timber harvesting
operations, and manufacturing of prefabricated buildings,
paper, furniture or other goods from forestry products;
(13) facilities and equipment for research and
development of products, processes and equipment for the
production, processing, preparation or packaging of
agricultural commodities and byproducts.
(aa) The term "asset" with respect to financing of any
agricultural facility or any agribusiness, means, but is not
limited to the following: cash crops or feed on hand;
livestock held for sale; breeding stock; marketable bonds and
securities; securities not readily marketable; accounts
receivable; notes receivable; cash invested in growing crops;
net cash value of life insurance; machinery and equipment;
cars and trucks; farm and other real estate including life
estates and personal residence; value of beneficial interests
in trusts; government payments or grants; and any other
assets.
(bb) The term "liability" with respect to financing of
any agricultural facility or any agribusiness shall include,
but not be limited to the following: accounts payable; notes
or other indebtedness owed to any source; taxes; rent;
amounts owed on real estate contracts or real estate
mortgages; judgments; accrued interest payable; and any other
liability.
(cc) The term "Predecessor Authorities" means those
authorities as described in Section 845-75.
(dd) The term "housing project" means a specific work or
improvement undertaken to provide residential dwelling
accommodations, including the acquisition, construction or
rehabilitation of lands, buildings and community facilities
and in connection therewith to provide nonhousing facilities
which are part of the housing project, including land,
buildings, improvements, equipment and all ancillary
facilities for use for offices, stores, retirement homes,
hotels, financial institutions, service, health care,
education, recreation or research establishments, or any
other commercial purpose which are or are to be related to a
housing development.
Section 801-15. There is hereby created a body politic
and corporate to be known as the Illinois Finance Authority.
The exercise of the powers conferred by law shall be an
essential public function. The Authority shall consist of 15
members, who shall be appointed by the Governor, with the
advice and consent of the Senate. Upon the appointment of the
Board and every 2 years thereafter, the chairperson of the
Authority shall be selected by the Governor to serve as
chairperson for two years. Appointments to the Authority
shall be persons of recognized ability and experience in one
or more of the following areas: economic development,
finance, banking, industrial development, small business
management, real estate development, housing, health
facilities financing, local government financing, community
development, venture finance, construction and labor
relations. At the time of appointment, the Governor shall
designate 5 members to serve until the third Monday in July
2005, 5 members to serve until the third Monday in July 2006
and 5 members to serve until the third Monday in July 2007.
Thereafter, appointments shall be for 3-year terms. A member
shall serve until his or her successor shall be appointed and
have qualified for office by filing the oath and bond.
Members of the Authority shall not be entitled to
compensation for their services as members, but shall be
entitled to reimbursement for all necessary expenses incurred
in connection with the performance of their duties as
members. The Governor may remove any member of the Authority
in case of incompetence, neglect of duty, or malfeasance in
office, after service on him of a copy of the written charges
against him and an opportunity to be publicly heard in person
or by counsel in his own defense upon not less than 10 days'
notice. From nominations received from the Governor, the
members of the Authority shall appoint an Executive Director
who shall be a person knowledgeable in the areas of financial
markets and instruments, to hold office for a one-year term.
The Executive Director shall be the chief administrative and
operational officer of the Authority and shall direct and
supervise its administrative affairs and general management
and perform such other duties as may be prescribed from time
to time by the members and shall receive compensation fixed
by the Authority. The Executive Director or any committee of
the members may carry out such responsibilities of the
members as the members by resolution may delegate. The
Executive Director shall attend all meetings of the
Authority; however, no action of the Authority shall be
invalid on account of the absence of the Executive Director
from a meeting. The Authority may engage the services of such
other agents and employees, including attorneys, appraisers,
engineers, accountants, credit analysts and other
consultants, as it may deem advisable and may prescribe their
duties and fix their compensation. The Authority may appoint
Advisory Councils to (1) assist in the formulation of policy
goals and objectives, (2) assist in the coordination of the
delivery of services, (3) assist in establishment of funding
priorities for the various activities of the Authority, and
(4) target the activities of the Authority to specific
geographic regions. There may be an Advisory Council on
Economic Development. The Advisory Council shall consist of
no more than 12 members, who shall serve at the pleasure of
the Authority. Members of the Advisory Council shall receive
no compensation for their services, but may be reimbursed for
expenses incurred with their service on the Advisory Council.
Section 801-25. All official acts of the Authority shall
require the approval of at least 8 members. All meetings of
the Authority and the Advisory Councils shall be conducted in
accordance with the Open Meetings Act. All meetings shall be
conducted at a single location within this State among
members physically present at this location. The Auditor
General shall conduct financial audits and program audits of
the Authority, in accordance with the Illinois State Auditing
Act.
Section 801-30. The Authority possesses all the powers as
a body corporate necessary and convenient to accomplish the
purposes of this Act, including, without any intended
limitation upon the general powers hereby conferred, the
following:
(a) to enter into loans, contracts, agreements and
mortgages in any manner connected with any of its corporate
purposes and to invest its funds;
(b) to sue and be sued;
(c) to employ agents and employees and independent
contractors necessary to carry out its purposes and to fix
their compensation, benefits and terms and conditions of
their employment;
(d) to have and use a common seal and to alter the same
at pleasure;
(e) to adopt all needful ordinances, resolutions, bylaws,
rules and regulations for the conduct of its business and
affairs and for the management and use of the projects
developed, constructed, acquired and improved in furtherance
of its purposes;
(f) to have and exercise all powers and be subject to all
duties otherwise necessary to effectuate the purposes of this
Act. If any of the powers set forth in this Act are exercised
within the jurisdictional limits of any municipality, all
ordinances of the municipality shall remain in full force and
effect and shall be controlling.
Section 801-40. In addition to the powers otherwise
authorized by law and in addition to the foregoing general
corporate powers, the Authority shall also have the following
additional specific powers to be exercised in furtherance of
the purposes of this Act.
(a) The Authority shall have power (i) to accept grants,
loans or appropriations from the federal government or the
State, or any agency or instrumentality thereof, to be used
for the operating expenses of the Authority, or for any
purposes of the Authority, including the making of direct
loans of such funds with respect to projects, and (ii) to
enter into any agreement with the federal government or the
State, or any agency or instrumentality thereof, in
relationship to such grants, loans or appropriations.
(b) The Authority shall have power to procure and enter
into contracts for any type of insurance and indemnity
agreements covering loss or damage to property from any
cause, including loss of use and occupancy, or covering any
other insurable risk.
(c) The Authority shall have the continuing power to
issue bonds for its corporate purposes. Bonds may be issued
by the Authority in one or more series and may provide for
the payment of any interest deemed necessary on such bonds,
of the costs of issuance of such bonds, of any premium on any
insurance, or of the cost of any guarantees, letters of
credit or other similar documents, may provide for the
funding of the reserves deemed necessary in connection with
such bonds, and may provide for the refunding or advance
refunding of any bonds or for accounts deemed necessary in
connection with any purpose of the Authority. The bonds may
bear interest payable at any time or times and at any rate or
rates, notwithstanding any other provision of law to the
contrary, and such rate or rates may be established by an
index or formula which may be implemented or established by
persons appointed or retained therefor by the Authority, or
may bear no interest or may bear interest payable at maturity
or upon redemption prior to maturity, may bear such date or
dates, may be payable at such time or times and at such place
or places, may mature at any time or times not later than 40
years from the date of issuance, may be sold at public or
private sale at such time or times and at such price or
prices, may be secured by such pledges, reserves, guarantees,
letters of credit, insurance contracts or other similar
credit support or liquidity instruments, may be executed in
such manner, may be subject to redemption prior to maturity,
may provide for the registration of the bonds, and may be
subject to such other terms and conditions all as may be
provided by the resolution or indenture authorizing the
issuance of such bonds. The holder or holders of any bonds
issued by the Authority may bring suits at law or proceedings
in equity to compel the performance and observance by any
person or by the Authority or any of its agents or employees
of any contract or covenant made with the holders of such
bonds and to compel such person or the Authority and any of
its agents or employees to perform any duties required to be
performed for the benefit of the holders of any such bonds by
the provision of the resolution authorizing their issuance,
and to enjoin such person or the Authority and any of its
agents or employees from taking any action in conflict with
any such contract or covenant. Notwithstanding the form and
tenor of any such bonds and in the absence of any express
recital on the face thereof that it is non-negotiable, all
such bonds shall be negotiable instruments. Pending the
preparation and execution of any such bonds, temporary bonds
may be issued as provided by the resolution. The bonds shall
be sold by the Authority in such manner as it shall
determine. The bonds may be secured as provided in the
authorizing resolution by the receipts, revenues, income and
other available funds of the Authority and by any amounts
derived by the Authority from the loan agreement or lease
agreement with respect to the project or projects; and bonds
may be issued as general obligations of the Authority payable
from such revenues, funds and obligations of the Authority as
the bond resolution shall provide, or may be issued as
limited obligations with a claim for payment solely from such
revenues, funds and obligations as the bond resolution shall
provide. The Authority may grant a specific pledge or
assignment of and lien on or security interest in such
rights, revenues, income, or amounts and may grant a specific
pledge or assignment of and lien on or security interest in
any reserves, funds or accounts established in the resolution
authorizing the issuance of bonds. Any such pledge,
assignment, lien or security interest for the benefit of the
holders of the Authority's bonds shall be valid and binding
from the time the bonds are issued without any physical
delivery or further act, and shall be valid and binding as
against and prior to the claims of all other parties having
claims against the Authority or any other person irrespective
of whether the other parties have notice of the pledge,
assignment, lien or security interest. As evidence of such
pledge, assignment, lien and security interest, the Authority
may execute and deliver a mortgage, trust agreement,
indenture or security agreement or an assignment thereof. A
remedy for any breach or default of the terms of any such
agreement by the Authority may be by mandamus proceedings in
any court of competent jurisdiction to compel the performance
and compliance therewith, but the agreement may prescribe by
whom or on whose behalf such action may be instituted. It is
expressly understood that the Authority may, but need not,
acquire title to any project with respect to which it
exercises its authority.
(d) With respect to the powers granted by this Act, the
Authority may adopt rules and regulations prescribing the
procedures by which persons may apply for assistance under
this Act. Nothing herein shall be deemed to preclude the
Authority, prior to the filing of any formal application,
from conducting preliminary discussions and investigations
with respect to the subject matter of any prospective
application.
(e) The Authority shall have power to acquire by
purchase, lease, gift or otherwise any property or rights
therein from any person useful for its purposes, whether
improved for the purposes of any prospective project, or
unimproved. The Authority may also accept any donation of
funds for its purposes from any such source. The Authority
shall have no independent power of condemnation but may
acquire any property or rights therein obtained upon
condemnation by any other authority, governmental entity or
unit of local government with such power.
(f) The Authority shall have power to develop, construct
and improve either under its own direction, or through
collaboration with any approved applicant, or to acquire
through purchase or otherwise, any project, using for such
purpose the proceeds derived from the sale of its bonds or
from governmental loans or grants, and to hold title in the
name of the Authority to such projects.
(g) The Authority shall have power to lease pursuant to a
lease agreement any project so developed and constructed or
acquired to the approved tenant on such terms and conditions
as may be appropriate to further the purposes of this Act and
to maintain the credit of the Authority. Any such lease may
provide for either the Authority or the approved tenant to
assume initially, in whole or in part, the costs of
maintenance, repair and improvements during the leasehold
period. In no case, however, shall the total rentals from any
project during any initial leasehold period or the total loan
repayments to be made pursuant to any loan agreement, be less
than an amount necessary to return over such lease or loan
period (1) all costs incurred in connection with the
development, construction, acquisition or improvement of the
project and for repair, maintenance and improvements thereto
during the period of the lease or loan; provided, however,
that the rentals or loan repayments need not include costs
met through the use of funds other than those obtained by the
Authority through the issuance of its bonds or governmental
loans; (2) a reasonable percentage additive to be agreed upon
by the Authority and the borrower or tenant to cover a
properly allocable portion of the Authority's general
expenses, including, but not limited to, administrative
expenses, salaries and general insurance, and (3) an amount
sufficient to pay when due all principal of, interest and
premium, if any on, any bonds issued by the Authority with
respect to the project. The portion of total rentals payable
under clause (3) of this subsection (g) shall be deposited in
such special accounts, including all sinking funds,
acquisition or construction funds, debt service and other
funds as provided by any resolution, mortgage or trust
agreement of the Authority pursuant to which any bond is
issued.
(h) The Authority has the power, upon the termination of
any leasehold period of any project, to sell or lease for a
further term or terms such project on such terms and
conditions as the Authority shall deem reasonable and
consistent with the purposes of the Act. The net proceeds
from all such sales and the revenues or income from such
leases shall be used to satisfy any indebtedness of the
Authority with respect to such project and any balance may be
used to pay any expenses of the Authority or be used for the
further development, construction, acquisition or improvement
of projects. In the event any project is vacated by a tenant
prior to the termination of the initial leasehold period, the
Authority shall sell or lease the facilities of the project
on the most advantageous terms available. The net proceeds of
any such disposition shall be treated in the same manner as
the proceeds from sales or the revenues or income from leases
subsequent to the termination of any initial leasehold
period.
(i) The Authority shall have the power to make loans to
persons to finance a project, to enter into loan agreements
with respect thereto, and to accept guarantees from persons
of its loans or the resultant evidences of obligations of the
Authority.
(j) The Authority may fix, determine, charge and collect
any premiums, fees, charges, costs and expenses, including,
without limitation, any application fees, commitment fees,
program fees, financing charges or publication fees from any
person in connection with its activities under this Act.
(k) In addition to the funds established as provided
herein, the Authority shall have the power to create and
establish such reserve funds and accounts as may be necessary
or desirable to accomplish its purposes under this Act and to
deposit its available monies into the funds and accounts.
(l) At the request of the governing body of any unit of
local government, the Authority is authorized to market such
local government's revenue bond offerings by preparing bond
issues for sale, advertising for sealed bids, receiving bids
at its offices, making the award to the bidder that offers
the most favorable terms or arranging for negotiated
placements or underwritings of such securities. The Authority
may, at its discretion, offer for concurrent sale the revenue
bonds of several local governments. Sales by the Authority of
revenue bonds under this Section shall in no way imply State
guarantee of such debt issue. The Authority may require such
financial information from participating local governments as
it deems necessary in order to carry out the purposes of this
subsection (1).
(m) The Authority may make grants to any county to which
Division 5-37 of the Counties Code is applicable to assist in
the financing of capital development, construction and
renovation of new or existing facilities for hospitals and
health care facilities under that Act. Such grants may only
be made from funds appropriated for such purposes from the
Build Illinois Bond Fund or the Build Illinois Purposes Fund.
(n) The Authority may establish an urban development
action grant program for the purpose of assisting
municipalities in Illinois which are experiencing severe
economic distress to help stimulate economic development
activities needed to aid in economic recovery. The Authority
shall determine the types of activities and projects for
which the urban development action grants may be used,
provided that such projects and activities are broadly
defined to include all reasonable projects and activities the
primary objectives of which are the development of viable
urban communities, including decent housing and a suitable
living environment, and expansion of economic opportunity,
principally for persons of low and moderate incomes. The
Authority shall enter into grant agreements from monies
appropriated for such purposes from the Build Illinois Bond
Fund or the Build Illinois Purposes Fund. The Authority shall
monitor the use of the grants, and shall provide for audits
of the funds as well as recovery by the Authority of any
funds determined to have been spent in violation of this
subsection (n) or any rule or regulation promulgated
hereunder. The Authority shall provide technical assistance
with regard to the effective use of the urban development
action grants. The Authority shall file an annual report to
the General Assembly concerning the progress of the grant
program.
(o) The Authority may establish a Housing Partnership
Program whereby the Authority provides zero-interest loans to
municipalities for the purpose of assisting in the financing
of projects for the rehabilitation of affordable multi-family
housing for low and moderate income residents. The Authority
may provide such loans only upon a municipality's providing
evidence that it has obtained private funding for the
rehabilitation project. The Authority shall provide 3 State
dollars for every 7 dollars obtained by the municipality from
sources other than the State of Illinois. The loans shall be
made from monies appropriated for such purpose from the Build
Illinois Bond Fund or the Build Illinois Purposes Fund. The
total amount of loans available under the Housing Partnership
Program shall not exceed $30,000,000. State loan monies under
this subsection shall be used only for the acquisition and
rehabilitation of existing buildings containing 4 or more
dwelling units. The terms of any loan made by the
municipality under this subsection shall require repayment of
the loan to the municipality upon any sale or other transfer
of the project.
(p) The Authority may award grants to universities and
research institutions, research consortiums and other
not-for-profit entities for the purposes of: remodeling or
otherwise physically altering existing laboratory or research
facilities, expansion or physical additions to existing
laboratory or research facilities, construction of new
laboratory or research facilities or acquisition of modern
equipment to support laboratory or research operations
provided that such grants (i) be used solely in support of
project and equipment acquisitions which enhance technology
transfer, and (ii) not constitute more than 60 percent of the
total project or acquisition cost.
(q) Grants may be awarded by the Authority to units of
local government for the purpose of developing the
appropriate infrastructure or defraying other costs to the
local government in support of laboratory or research
facilities provided that such grants may not exceed 40% of
the cost to the unit of local government.
(r) The Authority may establish a Direct Loan Program to
make loans to individuals, partnerships or corporations for
the purpose of an industrial project, as defined in Section
801-10 of this Act. For the purposes of such program and not
by way of limitation on any other program of the Authority,
the Authority shall have the power to issue bonds, notes, or
other evidences of indebtedness including commercial paper
for purposes of providing a fund of capital from which it may
make such loans. The Authority shall have the power to use
any appropriations from the State made especially for the
Authority's Direct Loan Program for additional capital to
make such loans or for the purposes of reserve funds or
pledged funds which secure the Authority's obligations of
repayment of any bond, note or other form of indebtedness
established for the purpose of providing capital for which it
intends to make such loans under the Direct Loan Program. For
the purpose of obtaining such capital, the Authority may also
enter into agreements with financial institutions and other
persons for the purpose of selling loans and developing a
secondary market for such loans. Loans made under the Direct
Loan Program may be in an amount not to exceed $300,000 and
shall be made for a portion of an industrial project which
does not exceed 50% of the total project. No loan may be made
by the Authority unless approved by the affirmative vote of
at least 8 members of the board. The Authority shall
establish procedures and publish rules which shall provide
for the submission, review, and analysis of each direct loan
application and which shall preserve the ability of each
board member to reach an individual business judgment
regarding the propriety of making each direct loan. The
collective discretion of the board to approve or disapprove
each loan shall be unencumbered. The Authority may establish
and collect such fees and charges, determine and enforce such
terms and conditions, and charge such interest rates as it
determines to be necessary and appropriate to the successful
administration of the Direct Loan Program. The Authority may
require such interests in collateral and such guarantees as
it determines are necessary to project the Authority's
interest in the repayment of the principal and interest of
each loan made under the Direct Loan Program.
(s) The Authority may guarantee private loans to third
parties up to a specified dollar amount in order to promote
economic development in this State.
(t) The Authority may adopt rules and regulations as may
be necessary or advisable to implement the powers conferred
by this Act.
(u) The Authority shall have the power to issue bonds,
notes or other evidences of indebtedness, which may be used
to make loans to units of local government which are
authorized to enter into loan agreements and other documents
and to issue bonds, notes and other evidences of indebtedness
for the purpose of financing the protection of storm sewer
outfalls, the construction of adequate storm sewer outfalls,
and the provision for flood protection of sanitary sewage
treatment plans, in counties that have established a
stormwater management planning committee in accordance with
Section 5-1062 of the Counties Code. Any such loan shall be
made by the Authority pursuant to the provisions of Section
820-5 to 820-60 of this Act. The unit of local government
shall pay back to the Authority the principal amount of the
loan, plus annual interest as determined by the Authority.
The Authority shall have the power, subject to appropriations
by the General Assembly, to subsidize or buy down a portion
of the interest on such loans, up to 4% per annum.
(v) The Authority may accept security interests as
provided in Sections 11-3 and 11-3.3 of the Illinois Public
Aid Code.
(w) Moral Obligation. In the event that the Authority
determines that monies of the Authority will not be
sufficient for the payment of the principal of and interest
on its bonds during the next State fiscal year, the
Chairperson, as soon as practicable, shall certify to the
Governor the amount required by the Authority to enable it to
pay such principal of and interest on the bonds. The Governor
shall submit the amount so certified to the General Assembly
as soon as practicable, but no later than the end of the
current State fiscal year. This subsection shall apply only
to any bonds or notes as to which the Authority shall have
determined, in the resolution authorizing the issuance of the
bonds or notes, that this subsection shall apply. Whenever
the Authority makes such a determination, that fact shall be
plainly stated on the face of the bonds or notes and that
fact shall also be reported to the Governor. In the event of
a withdrawal of moneys from a reserve fund established with
respect to any issue or issues of bonds of the Authority to
pay principal or interest on those bonds, the Chairperson of
the Authority, as soon as practicable, shall certify to the
Governor the amount required to restore the reserve fund to
the level required in the resolution or indenture securing
those bonds. The Governor shall submit the amount so
certified to the General Assembly as soon as practicable, but
no later than the end of the current State fiscal year. The
Authority shall obtain written approval from the Governor for
any bonds and notes to be issued under this Section. In
addition to any other bonds authorized to be issued under
Sections 825-60, 825-65(e), 830-25 and 845-5, the principal
amount of Authority bonds outstanding issued under this
Section 801-40(w) or under 20 ILCS 3850/1-80 or 30 ILCS
360/2-6(c), which have been assumed by the Authority, shall
not exceed $150,000,000.
Section 801-45. Property Taxation. The property of the
Authority and its respective income and operations, shall be
exempt from taxation.
ARTICLE 805
INDUSTRIAL REVENUE BOND INSURANCE FUND
Section 805-5. Findings and Declaration of Policy. It is
hereby found and declared that a continuing need exists to
maintain and develop the State's economy; that there are
significant barriers in the capital markets inhibiting the
issuance by the Authority of industrial revenue bonds to
assist in financing industrial projects in the State,
particularly for smaller firms; and that the establishment of
the Industrial Revenue Bond Insurance Fund and the exercise
by the Authority of the powers granted in this Article will
promote economic development by widening the market for the
Authority's revenue bonds.
Section 805-10. Definitions. The following terms,
whenever used or referred to in this Article, shall have the
following meanings ascribed to them, except where the context
clearly requires otherwise:
(a) "Financial Institution" means a financial institution
which is a trust company, a bank, a savings bank, a credit
union, an investment bank, a broker, an investment trust, a
pension fund, a building and loan association, a savings and
loan association, an insurance company, or any other
institution acceptable to the Authority, authorized to do
business in the State and approved by the Authority to insure
bonds or loans for industrial projects authorized by this
Act.
(b) "Participating lender" means any trust company, bank,
savings bank, credit union, investment bank, broker,
investment trust, pension fund, building and loan
association, savings and loan association, insurance company
or other institution approved by the Authority which assumes
a portion of the risk on a loan for an industrial project as
provided in Section 805-30 of this Act.
Section 805-15. Industrial Project Insurance Fund. There
is created the Industrial Project Insurance Fund, hereafter
referred to in Sections 805-15 through 805-50 of this Act as
the "Fund". The Treasurer shall have custody of the Fund,
which shall be held outside of the State treasury, except
that custody may be transferred to and held by any bank,
trust company or other fiduciary with whom the Authority
executes a trust agreement as authorized by paragraph (h) of
Section 805-20 of this Act. Any portion of the Fund against
which a charge has been made, shall be held for the benefit
of the holders of the loans or bonds insured under Section
805-20 of this Act. There shall be deposited in the Fund such
amounts, including but not limited to:
(a) All receipts of bond and loan insurance premiums;
(b) All proceeds of assets of whatever nature received by
the Authority as a result of default or delinquency with
respect to insured loans or bonds with respect to which
payments from the Fund have been made, including proceeds
from the sale, disposal, lease or rental of real or personal
property which the Authority may receive under the provisions
of this Article but excluding the proceeds of insurance
hereunder;
(c) All receipts from any applicable contract or
agreement entered into by the Authority under paragraph (b)
of Section 805-20 of this Act;
(d) Any State appropriations, transfers of
appropriations, or transfers of general obligation bond
proceeds or other monies made available to the Fund. Amounts
in the Fund shall be used in accordance with the provisions
of this Article to satisfy any valid insurance claim payable
therefrom and may be used for any other purpose determined by
the Authority in accordance with insurance contract or
contracts with financial institutions entered into pursuant
to this Act, including without limitation protecting the
interest of the Authority in industrial projects during
periods of loan delinquency or upon loan default through the
purchase of industrial projects in foreclosure proceedings or
in lieu of foreclosure or through any other means. Such
amounts may also be used to pay administrative costs and
expenses reasonably allocable to the activities in connection
with the Fund and to pay taxes, maintenance, insurance,
security and any other costs and expenses of bidding for,
acquiring, owning, carrying and disposing of industrial
projects which were financed with the proceeds of insured
bonds or loans. In the case of a default in payment with
respect to any loan, mortgage or other agreement so insured,
the amount of the default shall immediately, and at all times
during the continuance of such default, and to the extent
provided in any applicable agreement, constitute a charge on
the Fund. Any amounts in the Fund not currently needed to
meet the obligations of the Fund may be invested as provided
by law in obligations designated by the Authority, and all
income from such investments shall become part of the Fund.
In making such investments, the Authority shall act with the
care, skill, diligence and prudence under the circumstances
of a prudent person acting in a like capacity in the conduct
of an enterprise of like character and with like aims. It
shall diversify such investments of the Authority so as to
minimize the risk of large losses, unless under the
circumstances it is clearly not prudent to do so. Any amounts
in the Fund not needed to meet the obligations of the Fund
may be transferred to the Credit Enhancement Development Fund
of the Authority pursuant to resolution of the members of the
Authority.
Section 805-20. Powers and Duties; Industrial Project
Insurance Program. The Authority has the power:
(a) To insure and make advance commitments to insure all
or any part of the payments required on the bonds issued or a
loan made to finance any environmental facility under the
Illinois Environmental Facilities Financing Act or for any
industrial project upon such terms and conditions as the
Authority may prescribe in accordance with this Article. The
insurance provided by the Authority shall be payable solely
from the Fund created by Section 805-15 and shall not
constitute a debt or pledge of the full faith and credit of
the State, the Authority, or any political subdivision
thereof;
(b) To enter into insurance contracts, letters of credit
or any other agreements or contracts with financial
institutions with respect to the Fund and any bonds or loans
insured thereunder. Any such agreement or contract may
contain terms and provisions necessary or desirable in
connection with the program, subject to the requirements
established by this Act, including without limitation terms
and provisions relating to loan documentation, review and
approval procedures, origination and servicing rights and
responsibilities, default conditions, procedures and
obligations with respect to insurance contracts made under
this Act. The agreements or contracts may be executed on an
individual, group or master contract basis with financial
institutions;
(c) To charge reasonable fees to defray the cost of
obtaining letters of credit or other similar documents, other
than insurance contracts under paragraph (b). Any such fees
shall be payable by such person, in such amounts and at such
times as the Authority shall determine, and the amount of the
fees need not be uniform among the various bonds or loans
insured;
(d) To fix insurance premiums for the insurance of
payments under the provisions of this Article. Such premiums
shall be computed as determined by the Authority. Any
premiums for the insurance of loan payments under the
provisions of this Act shall be payable by such person, in
such amounts and at such times as the Authority shall
determine, and the amount of the premiums need not be uniform
among the various bonds or loans insured;
(e) To establish application fees and prescribe
application, notification, contract and insurance forms,
rules and regulations it deems necessary or appropriate;
(f) To make loans and to issue bonds secured by insurance
or other agreements authorized by paragraphs (a) and (b) of
this Section 805-20 and to issue bonds secured by loans that
are guaranteed by the federal government or agencies thereof;
(g) To issue a single bond issue, or a series of bond
issues, for a group of industrial projects, a group of
corporations, or a group of business entities or any
combination thereof insured by insurance or backed by any
other agreement authorized by paragraphs (a) and (b) of this
Section or secured by loans that are guaranteed by the
federal government or agencies thereof;
(h) To enter into trust agreements for the management of
the Fund created under Section 805-15 of this Act; and
(i) To exercise such other powers as are necessary or
incidental to the foregoing.
Section 805-25. Insurance Contracts; Claim
Responsibility. Any contract of insurance made by the
Authority with a lender or bondholder or for the benefit
thereof under this Act shall provide that claims payable
under such contract shall be paid from any amounts available
in the Fund and from any amounts available under the terms of
any applicable contract or agreement with other financial
institutions, in such order of priority as the Authority
shall deem appropriate. The obligation of the Authority to
make payments under any such contract shall be limited solely
to the amounts provided in such contract and shall not
constitute a debt or liability of the State, the Authority or
any subdivision thereof. Any insurance contract or other
agreement with a lender or bondholder or for the benefit
thereof and any rule or regulation of the Authority
implementing the insurance program may contain such other
terms, provisions or conditions as the Authority deems
necessary or appropriate, including, without limitation,
those relating to the payment of insurance premiums, the
giving of notice, claim procedures, the sources of payment
for claims, the priority of competing claims for payment, the
release or termination of loan security and borrower
liability, the timing of payment, the maintenance and
disposition of industrial projects and the use of amounts
received during periods of delinquency or upon default, and
any other provisions concerning the rights of insured parties
or conditions to the payment of insurance claims.
Section 805-30. Applications for Insured Industrial
Project Loans; Procedures. Applications received by the
Authority shall be forwarded to a credit review committee
consisting of 3 persons experienced in industrial financing
selected by the Authority for a review and report concerning
the advisability of approving the proposed insurance. The
review and report shall include facts about the company's
history, job opportunities, stability of employment,
financial condition and structure, income statements, market
prospects and management, and any other facts material to the
insurance request. The report shall include a reasoned
opinion as to whether providing the insurance would tend to
fulfill the purposes of the Authority and the insurance
program. The report shall be advisory in nature only. Payment
shall be made to the members of the committee selected by the
Authority on a reasonable consultant basis, as the Authority
may determine. The credit review committee shall be of such
composition, act for such time and have such powers as shall
be specified in the agreement or agreements establishing its
existence and, to the extent so specified, shall act for the
Authority in matters concerning the insurance program
authorized by Sections 805-5 through 805-45 of this Act. The
Authority shall, on the basis of the application, the report
of the credit review committee, the information provided by
the local or regional industrial development agency, and any
other appropriate information, prepare a report concerning
the creditworthiness of the proposed borrower, the loan
record of the participating lender, the financial commitment
of the participating lender, the manner in which the proposed
industrial project will advance the economy of the State and
the soundness of the proposed loan. The Fund, or any portion
thereof against which a charge has been made, shall be held
for the benefit of the holders of the bonds or loans insured
under Section 805-20 of this Act, as provided by agreement
between the Authority and such holders. The Authority shall
be satisfied that the Fund is protected by adequate security
on all bonds or loans insured by the Authority.
Section 805-35. Loan Approval Standards. Before approving
any bond or loan insurance under this Act, the Authority
shall find that any loan insured by or to be made from the
proceeds of bonds insured by the Authority under this Act
shall:
(a) Be made for an industrial project or any
environmental facility under the Illinois Environmental
Facilities Financing Act;
(b) Be made to a borrower approved by the Authority as
responsible and creditworthy;
(c) Be reviewed for insurance by the credit review
committee established by the Authority pursuant to this Act;
(d) In the case of real property, be secured by a first
mortgage on the property, or by any other security
satisfactory to the Authority to secure payment of the loans,
and have a maturity date not later than 25 years after the
date of the loan;
(e) In the case of machinery and equipment, be secured by
a first security interest in the machinery and equipment, or
by any other security satisfactory to the Authority to secure
payment of the loan, and have a maturity date not later than
12 years from the date of the loan;
(f) Contain complete amortization provisions satisfactory
to the Authority;
(g) Be in such principal amount and form, and contain
such terms and provisions with respect to property insurance,
repairs, alterations, payment of taxes and assessments,
delinquency charges, default remedies, additional security
and other matters as the Authority shall determine;
(h) Be made only after the Authority has made a
determination that, in its sole opinion, the loan has the
potential to provide or retain substantial employment in
relation to the principal amount of the loan to be insured,
which employment, so far as feasible, may be expected to be
of residents of areas of critical labor surplus;
(i) Be made only after the Authority has made a
determination that, in its sole opinion, adequate provision
is being or will be made to meet any increased demand upon
community public facilities that will likely result from the
project; and
(j) Be made only after the Authority has made a
determination that, in its sole opinion, the public interest
is adequately protected by the terms of the loan and of the
insurance contract or other agreements. Any contract of
insurance executed by the Authority under this Act shall be
conclusive evidence of eligibility for such insurance, and
the validity of any contract of insurance so executed or of
an advance commitment to insure shall be incontestable in the
hands of a borrower or bondholder from the date of execution
and delivery of the contract or commitment, except for fraud,
or misrepresentation on the part of the borrower and, as to
commitments to insure, noncompliance with the commitment or
Authority rules or regulations in force at the time of
issuance of the commitment. Nothing in this Act shall be
construed as creating any rights of a competitor of an
approved borrower or any applicant whose application is
denied by the Authority to challenge any application which is
accepted by the Authority and any loan, contract of insurance
or other agreement executed in connection therewith.
Section 805-40. Investments in Insured Debts of the
Authority. The State and all counties, municipalities and
other public corporations, political subdivisions and public
bodies, and public officers of any thereof, all banks,
bankers, trust companies, savings banks and institutions,
building and loan associations, savings and loan
associations, investment companies and other persons carrying
on a banking business, all insurance companies, insurance
associations and other persons carrying on an insurance
business and all executors, administrators, guardians,
trustees and other fiduciaries may legally invest any sinking
funds, moneys or other funds belonging to them or within
their control in any bonds, loans or extension of credit
which are the subject of insurance pursuant to this Article,
it being the purpose of this Section to authorize the
investment of such bonds, loans or extension of credit of all
sinking, insurance, retirement, compensation, pension and
trust funds, whether owned or controlled by private or public
persons or officers; provided, however, that nothing
contained in this Section may be construed as relieving any
persons from any duty of exercising reasonable care in
selecting securities for purchase or investment. The bonds
and any loan or extension of credit which are the subject of
insurance pursuant to this Article are also hereby made
securities which may properly and legally be deposited with
and received by all public officers and bodies of the State
or any agency or political subdivisions thereof and all
municipalities and public corporations for any purpose for
which the deposit of bonds is now or may hereafter be
authorized by law.
Section 805-45. Cooperation with Local Industrial
Development Agencies. When the Authority receives an
application from a potential insured loan borrower, it shall
promptly notify the local industrial development agency of
that fact in writing if such an agency exists in the
municipality or county where such industrial project is
proposed to be financed; or the corporate authorities in such
municipality where no such agency exists. The Authority shall
provide the local industrial development agency with any
available information that the agency needs to prepare a
recommendation concerning the advisability of the industrial
project and its impact, economic and otherwise, on the
community and the State. Such application shall include a
written authorization by the applicant that such notification
and information be made available to such agency or
municipality to the extent that such information is not
deemed to be confidential under Section 805-50 of this Act.
The Authority shall not consider any application that does
not include such written authorization. The Authority shall
encourage financial participation by local industrial
development agencies by giving priority consideration to
insured loan applicants from areas serviced by those agencies
that have demonstrated a commitment to economic development.
Section 805-50. Documentary material concerning trade
secrets; Commercial or financial information;
Confidentiality. Any documentary materials or data made or
received by any member, agent, or employee of the Authority
or the credit review committees, to the extent that such
materials or data consist of trade secrets, commercial or
financial information regarding the operation of any
enterprise conducted by an applicant for, or recipient of,
any form of assistance which the Authority is empowered to
render under this Article, or regarding the competitive
position of such enterprise in a particular field of
endeavor, shall not be deemed public records.
ARTICLE 810
VENTURE INVESTMENT FUND
Section 810-5. Findings and Declaration of Policy. It is
hereby found and declared that a continuing need exists to
maintain and develop the State's economy; that assisting and
encouraging economic development through private enterprise
will help to create and maintain employment and governmental
revenues and is an important function of the State; that the
availability of seed capital and equity capital is an
important inducement to enterprises to remain, locate and
expand in the State; that there exists in the State gaps in
the availability of capital for the development and
exploitation of new technologies, products, processes and
inventions and that this shortage has resulted and will
continue to result in a shortfall in the development of new
enterprises and employment in Illinois; that the
establishment of the Illinois Venture Investment Fund and the
exercise by the Authority of the powers granted in Sections
810-5 through 810-40 of this Act will promote economic
development resulting in increased employment and public
revenues; and that the provisions of this Act are hereby
declared to be in the public interest and for the public
benefit.
Section 810-10. Definitions. The following terms,
whenever used or referred to in this Article, shall have the
following meanings ascribed to them, except where the context
clearly requires otherwise:
(a) "Co-venture investment" means a venture capital or
seed capital investment by the Authority in qualified
securities of an enterprise that is made after or in
conjunction with one or more professional investors that have
or are making equity investments in that enterprise, as
provided in this Act. A direct investment made by the
Authority may later be treated as a co-venture upon such
investment made by a professional investor.
(b) "Direct investment" means a venture capital or seed
capital investment by the Authority in qualified securities
of an enterprise in which no professional investor or seed
capital investor is also making an equity investment.
(c) "Enterprise" means an individual, corporation,
partnership, joint venture, trust, estate, or unincorporated
association.
(d) "Professional investor" means any bank, bank holding
company, savings institution, trust company, credit union,
insurance company, investment company registered under the
Federal Investment Company Act of 1940, pension or
profit-sharing trust or other financial institution or
institutional buyer, licensee under the Federal Small
Business Investment Act of 1958, or any person, partnership,
or other entity whose principal business is making venture
capital investments and whose net worth exceeds $250,000.
(e) "Qualified security" means any note, stock,
convertible security, treasury stock, bond, debenture,
evidence of indebtedness, limited partnership interest,
certificate of interest or participation in any
profit-sharing agreement, pre-organization certificate or
subscription, transferable share, investment contract,
certificate of deposit for a security, certificate of
interest or participation in a patent or application
therefor, or in royalty or other payments under a patent or
application, or, in general, any interest or instrument
commonly known as a "security" or any certificate for,
receipt for, guarantee of, or option, warrant, or right to
subscribe to or purchase any of the foregoing.
(f) "Seed capital" means financing in the form of
investments in qualified securities that is provided for
applied research, development, testing, and initial marketing
of a technology, product, process, or invention and
associated working capital.
(g) "Seed capital investor" means any person,
partnership, corporation, trust, or other entity making a
seed capital investment.
(h) "Director" means the person designated by the
Authority to manage the activities associated with the
Illinois Venture Investment Fund.
(i) "Venture capital" means financing in the form of
investments in qualified securities that is provided for the
capital needs of a company that is developing a new
technology, product, process, or invention.
Section 810-15. Illinois Venture Investment Fund. There
is created the Illinois Venture Investment Fund, hereafter
referred to in this Article as the "Fund". The Treasurer of
the Authority shall have custody of the Fund, which shall be
held outside of the State treasury. The Authority is
authorized to accept any and all grants, loans, including
loans from State public employee pension funds, as authorized
by this Act or any other statute, subsidies, matching funds,
reimbursements, appropriations, transfers of appropriations,
federal grant monies, income derived from investments, or
other things of value from the federal or state governments
or any agency of any other state or from any institution,
person, firm or corporation, public or private, for deposit
in the Fund. The Authority is authorized to use monies
deposited in the Fund expressly for the purposes specified in
and according to the procedures established by Sections
810-20 through 810-40 of this Act. The Authority may appoint
a Director to manage the activities associated with the Fund.
Such Director shall receive compensation as determined by the
Authority.
Section 810-20. Powers and Duties; Illinois Venture
Investment Fund Limits. The Authority shall invest and
reinvest the Fund and the income, thereof, in the following
ways:
(a) To make a direct investment in qualified securities
issued by enterprises and to dispose of those securities
within 10 years after the date of the direct investment as
determined by the Authority for the purpose of providing
venture capital or seed capital, provided that the investment
shall not exceed 49% of the estimated cost of development,
testing, and initial production and marketing and associated
working capital for the technology, product, process, or
invention, or $750,000, whichever is less;
(b) To enter into written agreements or contracts
(including limited partnership agreements) with one or more
professional investors or one or more seed capital investors,
if any, for the purpose of establishing a pool of funds to be
used exclusively as venture capital or seed capital
investments. The Authority shall not invest more than
$2,000,000 in a single pool of funds or affiliated pools of
funds. The agreement or contract shall provide for the pool
of funds to be managed by a professional investor. The
manager may be the general partner of a limited partnership
of which the Authority is a limited partner. The agreement or
contract may provide for reimbursement of expenses of, and
payment of a fee to, the manager. The agreement or contract
may also provide for payment to the manager of a percentage,
not to exceed 40% (computed on an annual basis), of cash and
other property payable to the Authority as its pro-rata share
of distributions to investors in the pool of funds, provided
that (i) no amount shall be received by the manager upon sale
or other disposition of qualified investments in enterprises
until recovery by the Authority of its investment and upon
liquidation or withdrawal of the Authority from the pool of
funds, the manager shall be obligated to refund any amount
received by it from such percentage if necessary to allow the
Authority to recover its investment or (ii) the terms of
payment of cash and other property to the Authority are no
less favorable to the Authority than payments to other seed
capital investors (other than the manager) who are parties to
the agreement or contract.
(c) To make co-venture investments by entering into
agreements with one or more professional investors or one or
more seed capital investors, if any, who have formally agreed
to invest at least 50% as much as the Authority invests in
the enterprise, for the purpose of providing venture capital
or seed capital; but no more than $1,000,000 shall be
invested by the Authority in the qualified securities of a
single enterprise. A total of not more than $1,500,000 may be
invested in the securities of a single enterprise, if the
Authority shall find, after the initial investment by the
Authority, that additional investments in the enterprise are
necessary to protect or enhance the initial investment of the
Authority. Each co-venture investment agreement shall provide
that the Authority will recover its investment before or
simultaneously with any distribution to participating
professional investors or seed capital investors. The
Authority and participating professional investors and seed
capital investors shall share ratably in the profits earned
in any form on the co-venture investment, but the Authority
may, at its discretion, agree to pay to a participating
professional investor a percentage, not to exceed 40%
(computed on an annual basis), of cash and other property
payable to the Authority as its pro-rata share of
distributions to investors in the pool of funds, provided
that (i) no amount shall be received by the participating
professional investor upon sale or other disposition of
qualified investments in the enterprises until recovery by
the Authority of its investment and upon liquidation or
withdrawal of the Authority from the pool of funds, the
participating professional investor shall be obligated to
refund any amount received by it from such percentage if
necessary to allow the Authority to recover its investment or
(ii) the terms of payment of cash and other property to the
Authority are no less favorable to the Authority than
payments to other seed capital investors or professional
investors (other than the professional investor) who are
parties to the agreement or contract;
(d) To purchase qualified securities of certified
development corporations created under Section 503 of the
federal Small Business Administration Act, including the
Illinois Small Business Growth Corporation, for the purpose
of making loans to enterprises that have the potential to
create substantial employment within the State per dollar
invested by the Authority, provided that the investment does
not exceed 25% of the total investment in each corporation at
the time the investment is approved by the Authority.
Investment by the Authority in the Illinois Small Business
Growth Corporation is not limited by the foregoing provision;
(e) To purchase qualified securities of small business
investment companies and minority enterprise small business
investment corporations certified by the federal Small
Business Administration which are committed to making 60% of
their investments in the State, provided that investments
from the Fund do not exceed 25% of the total investment in
these entities at the time the investment is approved by the
Authority;
(f) To make the investments of any funds held in reserves
or sinking funds, or any funds not required for immediate
disbursement, as may be lawful investments for fiduciaries in
the State;
(g) To facilitate and promote the acquisition and
revitalization of existing manufacturing enterprises by
developing and maintaining a list of firms, or divisions
thereof, located within the State that are available for
purchase, merger, or acquisition. The list shall be made
available at such charges as the Authority may determine to
all interested persons and institutions upon request. No firm
shall appear on the list without its prior written
permission. The list may contain such additional financial,
technical, market and other information as may be supplied by
the listed firm. The Authority shall bear no responsibility
for the accuracy of the information contained on the list,
and each listed firm shall hold the Authority harmless
against any claim of inaccuracy. Enterprises supported by
investments from the Fund shall receive consideration by the
Authority in the allocation of loans to be insured or loans
to be made from the proceeds of bonds to be insured by the
Industrial Revenue Bond Insurance Fund established under this
Article, and the Authority shall coordinate its activities
under the 2 programs.
Section 810-25. Direct and Co-venture Investments. An
enterprise seeking a direct investment from the Illinois
Venture Investment Fund shall file an application with the
Authority along with an applicable fee to be determined by
the Authority. A valid application shall contain a business
plan, including a description of the enterprise and its
management, a statement of the amount, timing, and projected
use of the capital required, a statement concerning the
feasibility of the proposed technology, product, process, or
invention, its state of development and likelihood of
commercial success, a statement of the potential economic
impact of the enterprise on the State, including the number,
location, and types of jobs expected to be created, and such
other information as the Authority shall require. In addition
to the foregoing, the Authority shall approve an application
for a direct investment and shall approve a co-venture
investment only after it has made the following findings:
(a) The enterprise has a reasonable chance of success;
(b) If the application is for a direct investment,
Authority participation is necessary to the success of the
enterprise because conventional, private funding is
unavailable in the traditional capital markets, or because
funding has been offered on terms that would substantially
hinder the success of the enterprise;
(c) The technology, product, process, or invention for
which the investment is being made is feasible, has the
potential to achieve commercial success and the enterprise
has the potential to create substantial employment within the
State per dollar invested and that this employment, so far as
feasible, may be expected to be for residents of areas of
critical labor surplus;
(d) The entrepreneur, investors, shareholders, and other
founders of the enterprise have already made or are obligated
to make a substantial financial and time commitment to the
enterprise;
(e) The securities to be purchased are qualified
securities;
(f) The Authority determines that the possible gains on
the investment are at least commensurate with the risk of
loss and that there is a reasonable possibility that the
Authority will recoup its investment, within 10 years after
the investment or such other time period as negotiated by the
Authority, through the receipt of interest payments,
dividends, capital gains, or other distribution of profits,
or royalties on investments made by the Authority; and
(g) Binding commitments have been made to the Authority
by the enterprise for adequate reporting of financial data to
the Authority and any participating professional investors or
seed capital investors. The report shall include an annual
audit of the books of the enterprise by an independent
certified public accountant if the Authority so requires. The
Authority and any participating professional investors or
seed capital investors shall secure sufficient contractual
rights from the enterprise as the Authority shall consider
prudent to protect the investment of the Authority,
including, at the discretion of the Authority and without
limitation, a right of access to financial and other records
of the enterprise. The Authority's interest in qualified
securities from investments shall not represent more than 49%
of the voting stock of any single enterprise at the time of
purchase after giving effect to the conversion of all
outstanding convertible securities of the enterprise. In the
event of severe financial difficulty that in the judgment of
the Authority threatens the investment of the Authority
therein, a greater percentage of those securities may be
owned or acquired by the Authority.
Section 810-30. Investment in Pools of Funds. Proposals
for the establishment of pools of funds under paragraph (b)
of Section 810-20 of this Act shall be submitted on a form,
contain the information, and be accompanied by a fee as
prescribed by the Authority. The Authority shall not enter
into any agreement or contract under paragraph (b) of Section
810-20 of this Act unless the agreement or contract provides
that the pool of funds will be invested in an enterprise only
if the manager finds all of the following:
(a) The enterprise has a reasonable chance of success.
(b) The technology, product, process, or invention for
which the investment is being made is feasible and has the
potential to achieve commercial success.
(c) The enterprise has the potential to create
substantial employment within the State.
(d) The entrepreneur, investors, shareholders, or
founders of the enterprise have made or are obligated to make
a substantial commitment of time and funds to the enterprise.
(e) The possible gains in the investment are at least
commensurable with the risk of loss and there is a reasonable
possibility that the investors, including the Authority, will
recoup their investment within 10 years after the investment,
through the receipt of interest, dividends, capital gains, or
other distributions of profit or royalties.
(f) The enterprise shall have made binding commitments
for adequate reporting of and access to financing data of the
enterprise.
Section 810-35. Documentary materials concerning trade
secrets; Commercial or financial information;
Confidentiality. Any documentary materials or data made or
received by any member, agent or employee of the Authority,
to the extent that such material or data consist of trade
secrets, commercial or financial information regarding the
operation of any enterprise conducted by an applicant for, or
recipient of, any form of assistance which the Authority is
empowered to render, or regarding the competitive position of
such enterprise in a particular field of endeavor, shall not
be deemed public records; provided, however, that if the
Authority purchases a qualified security from such
enterprise, the commercial and financial information,
excluding trade secrets, shall be deemed to become a public
record of the Authority after the expiration of 3 years from
the date of purchase of such qualified security, or, in the
case of such information made or received by any member,
agent or employee of the Authority after the purchase of such
qualified security, 3 years from the date such information
was made or received. Any discussion or consideration of such
trade secrets or commercial or financial information may be
held by the Authority, in executive sessions closed to the
public, notwithstanding the provisions of the Open Meetings
Act; provided, however, that the purpose of any such
executive session shall be set forth in the official minutes
of the Authority and business which is not related to such
purpose shall not be transacted, nor shall any vote be taken
during such executive sessions.
Section 810-40. Tax Exemption. The Illinois Venture
Investment Fund and all its proceeds shall be and are hereby
declared exempt from all franchise and income taxes levied by
the State, provided nothing herein shall be construed to
exempt from any such taxes, or from any taxes levied in
connection with the manufacture, production, use or sale of
any technologies, products, processes or inventions which are
the subject of any agreement earned by any enterprise in
which the Authority has invested.
ARTICLE 815
LAND BANK FUND
Section 815-5. Findings and Declaration of Policy. It is
hereby found and declared that there exists within the State
a condition of substantial and persistent unemployment which
is detrimental to the welfare of the people of the State;
that the absence of an orderly conversion and development of
certain property results in blight, economic dislocation, and
additional unemployment; that there exists within the State a
significant resource of underutilized property which, if
returned to productive economic use, will increase
employment, increase revenues for the State and units of
local government, and lead to a more stable economy; that the
acquisition, development or disposition of such land or
property in conjunction with units of local government, local
industrial development agencies and private enterprise in
accordance with development plans will stimulate economic
development within the State; that the establishment of the
Illinois Land Bank Fund and the exercise by the Authority of
the powers granted in this Article will promote economic
development resulting in increased employment and public
revenues; and that the provisions of this Act are hereby
declared to be in the public interest and benefit and a valid
public purpose.
Section 815-10. Definitions. The following terms,
whenever used or referred to in this Article, shall have the
following meanings ascribed to them, except where the context
clearly requires otherwise:
(a) "Property" means land, parcels or combination of
parcels, structures, and all improvements, easements and
franchises;
(b) "Redevelopment area" means any property which is a
contiguous area of at least 2 acres but less than 160 acres
in the aggregate located within one and one-half miles of the
corporate limits of a municipality and not included within
any municipality, where, (1) if improved, a substantial
proportion of the industrial, commercial and residential
buildings or improvements are detrimental to the public
safety, health, morals or welfare because of a combination of
any of the following factors: age; physical configuration;
dilapidation; structural or economic obsolescence;
deterioration; illegal use of individual structures; presence
of structures below minimum code standards; excessive and
sustained vacancies; overcrowding of structures and community
facilities; inadequate ventilation, light, sewer, water,
transportation and other infrastructure facilities;
inadequate utilities; excessive land coverage; deleterious
land use or layout; depreciation or lack of physical
maintenance; and lack of community planning; or (2) if
vacant, the sound utilization of land for industrial projects
is impaired by a combination of 2 or more of the following
factors: obsolete platting of the vacant land; diversity of
ownership of such land; tax and special assessment
delinquencies on such land; and deterioration of structures
or site improvements in neighboring areas to the vacant land,
or the area immediately prior to becoming vacant qualified as
a redevelopment improved area; or (3) if an improved area
within the boundaries of a development project is located
within the corporate limits of the municipality in which 50%
or more of the structures in the area have an age of 35 years
or more, such area does not qualify under clause (1) but is
detrimental to the public safety, health, morals or welfare
and such area may become a redevelopment area pursuant to
clause (1) because of a combination of 3 or more of the
factors specified in clause (1).
(c) "Enterprise" means an individual, corporation,
partnership, joint venture, trust, estate or unincorporated
association;
(d) "Development plan" means the comprehensive program of
the Authority and the participating entity to reduce or
eliminate those conditions the existence of which qualified
the project area as a redevelopment area. Each development
plan shall set forth in writing the program to be undertaken
to accomplish such objectives and shall include, without
limitation, estimated development project costs, the sources
of funds to pay costs, the nature and term of any obligations
to be issued, the most recent equalized assessed valuation of
the project area, an estimate as to the equalized assessed
valuation after development and the general land uses to
apply in the project area.
(e) "Development project" means any project in
furtherance of the objectives of a development plan,
including any building or buildings or building addition or
other structures to be newly constructed, renovated or
improved and suitable for use by an enterprise as an
industrial project, and includes the sites and other rights
in the property on which such buildings or structures are
located.
(f) "Participating entity" means a municipality, a local
industrial development agency or an enterprise or any
combination thereof.
Section 815-15. Illinois Land Bank Fund; Creation; Use.
There is hereby created the Illinois Land Bank Fund,
hereafter referred to in Sections 815-15 through 815-30 of
this Act as the "Fund". The Treasurer of the Authority shall
have custody of the Fund, which shall be held outside of the
State treasury. The Authority is authorized to accept any and
all grants, loans, subsidies, matching funds, reimbursements,
appropriations, transfers of appropriations, federal grant
monies, income derived from investments, or other things of
value from the federal or state governments or units of local
government or any agency thereof or from an enterprise for
deposit in the Fund. The Authority is authorized to use
monies deposited in the Fund expressly for the purposes
specified in and according to the procedures established by
Sections 815-20 through 815-30 of this Act.
Section 815-20. Powers and Duties.
(a) The Authority shall have the following powers with
respect to redevelopment areas:
(1) To acquire and possess property in a
redevelopment area;
(2) To clear any such areas so acquired by
demolition of existing structures and buildings and to
make necessary improvements to the property essential to
its reuse in conformity with a development plan; and
(3) To convey property for use in accordance with a
development plan.
(b) Before acquiring property under this Section the
Authority shall hold a public hearing after notice published
in a newspaper of general circulation in the county in which
the property is located and shall find:
(1) The property is in a redevelopment area;
(2) Such acquisition or possession is necessary or
reasonably required to retain existing enterprises or
attract new enterprises and to promote sound economic
growth and to carry out the purposes of Section 815-5
through 815-30 of this Act;
(3) The assembly of property is not unduly
competitive with similar assemblies by private enterprise
in the area or surrounding areas; and
(4) The participating entity, without the
involvement of the Authority, would be unlikely,
unwilling or unable to undertake such redevelopment of
the property as was necessary for economic development.
(c) No property may be acquired by the Authority unless
the acquisition is consented to by resolution of the
corporate authorities of the municipality with jurisdiction
over the property under Section 11-12-6 of the Municipal
Code.
(d) The Authority may acquire any interest in property in
a redevelopment area by purchase, lease, or gift, but shall
not have the power of condemnation.
(e) No property shall be acquired under this Section
unless the Authority has adopted a development plan under the
provisions of Section 815-25.
Section 815-25. Development Plans.
(a) No development plan shall be approved by the
Authority unless after a public hearing held upon notice
published in a newspaper of general circulation in the county
where the property is located, the Authority finds:
(1) The plan provides for projects which will reduce
unemployment;
(2) The redevelopment area on the whole has not been
subject to growth and development through investment by
private enterprise and would not reasonably be
anticipated to be developed without the adoption of the
development plan;
(3) The corporate authorities of the municipality
with jurisdiction over the property under Section 11-12-6
of the Municipal Code have by resolution found that the
development plan conforms to the comprehensive plan of
the municipality;
(4) A participating entity has agreed to enter into
such contracts and other agreements as are necessary to
acquire, redevelop and improve the property in accordance
with the development plan;
(5) The acquisition of the property, its possession
and ultimate use according to the development plan can be
financed by participating entities and the Authority and
the development plan will be completed and all
obligations of the Authority incurred in connection with
the redevelopment plan will be retired within 20 years
from the Authority's approval of the development plan;
and
(6) The development plan meets such other
requirements as the Authority may establish by rule.
(b) The Authority may dispose of any property which is
the subject of a development plan in such manner, whether by
sale, lease or otherwise, and for such price, rental or other
consideration, including an amount not less than 2/3 of its
acquisition cost, payable over such term, and bearing
interest as to deferred payments, and secured in such manner,
by mortgage or otherwise, all as the Authority shall provide
in the development plan.
(c) Pending disposition of such land, any existing
property acquired by the Authority in the course of carrying
out the provisions of this Act may be adequately and properly
preserved, and may be maintained, leased or administered by
the Authority by a contract made by the Authority with any
participating entity, enterprise or individual with
experience in the area of property development, management or
administration.
(d) Whenever the Authority shall have approved a
development plan, the Authority may amend the development
plan from time to time in conformity with this Section.
Section 815-30. Local Planning; Relocation Costs. The
Authority may arrange or contract with a municipality or
municipalities for the planning, re-planning, opening,
grading or closing of streets, roads, alleys or other places
or for the furnishing of facilities or for the acquisition by
the municipality or municipalities of property or property
rights or for the furnishing of property or services in
connection with a development project or projects. The
Authority is hereby authorized to pay the reasonable
relocation costs, up to a total of $25,000 per relocatee, of
persons and businesses displaced as a result of carrying out
a development plan as authorized by this Article.
ARTICLE 820
LOCAL GOVERNMENT
Section 820-5. Findings and Declaration of Policy. It is
hereby found and declared that there exists an urgent need to
upgrade and expand the capital facilities, infrastructure and
public purpose projects of units of local government and to
promote other public purposes to be carried out by units of
local government; that federal funding reductions combined
with shifting economic conditions have impeded efforts by
units of local governments to provide the necessary
improvements to their capital facilities, infrastructure
systems and public purpose projects and to accomplish other
public purposes in recent years; that adequate and
well-maintained capital facilities, infrastructure systems
and public purpose projects throughout this State and the
performance of other public purposes by units of local
government throughout this State can offer significant
economic benefits and an improved quality of life for all
citizens of this State; that the exercise by the Authority of
the powers granted in this Article will promote economic
development by enhancing the capital stock of units of local
governments and will facilitate the accomplishment of other
public purposes by units of local government; that
authorizing the Authority to borrow money in the public and
private capital markets in order to provide money to purchase
or otherwise acquire obligations of units of local government
will assist such units of local government in borrowing money
to finance and refinance the public purpose projects, capital
facilities and infrastructure of the units and to finance
other public purposes of such units of local government, in
providing access to adequate capital markets and facilities
for borrowing money by such units of local government, in
encouraging continued investor interest in the obligations of
such units of local government, in providing for the orderly
marketing of the obligations of such units of local
government, and in achieving lower overall borrowing cost and
more favorable terms for such borrowing; and that the
provisions of this Article are hereby declared to be in the
public interest and for the public benefit.
Section 820-10. Definitions. The following words or
terms, whenever used or referred to in this Article, shall
have the following meanings ascribed to them, except where
the context clearly requires otherwise:
(a) "Department" means the Illinois Department of
Commerce and Economic Opportunity.
(b) "Unit of local government" means any unit of local
government, as defined in Article VII, Section 1 of the 1970
State Constitution and any local public entity as that term
is defined by the Local Governmental and Governmental
Employees Tort Immunity Act and also includes the State and
any instrumentality, office, officer, department, division,
bureau, commission, college or university thereof.
(c) "Energy conservation project" means any improvement,
repair, alteration or betterment of any building or facility
or any equipment, fixture or furnishing including its energy
using mechanical devices to be added to or used in any
building or facility that the Director of the Department has
certified to the Authority will be a cost-effective
energy-related project that will lower energy or utility
costs in connection with the operation or maintenance of such
building or facility, and will achieve energy cost savings
sufficient to cover bond debt service and other project costs
within 10 years from the date of project installation.
Section 820-15. Creation of Reserve Funds. The Authority
may establish and maintain one or more reserve funds in which
there may be one or more accounts in which there may be
deposited:
(a) Any proceeds of bonds issued by the Authority
required to be deposited therein by the terms of any contract
between the Authority and its bondholders or any resolution
of the Authority;
(b) Any other moneys or funds of the Authority which it
may determine to deposit therein from any other source; and
(c) Any other moneys or funds made available to the
Authority, including without limitation any proceeds of any
local government security or any taxes or revenues, rates,
charges, assessments, grants, or other funds pledged or
assigned to pay, repay or secure any local government
security. Subject to the terms of any pledge to the owners of
any bond, moneys in any reserve fund may be held and applied
to the payment of the interest, premium, if any, or principal
of bonds or local government securities or for any other
purpose authorized by the Authority.
Section 820-20. Powers and Duties; Illinois Local
Government Financing Assistance Program. The Authority has
the power:
(a) To purchase from time to time pursuant to negotiated
sale or to otherwise acquire from time to time any local
government securities issued by one or more units of local
government upon such terms and conditions as the Authority
may prescribe;
(b) To issue bonds in one or more series pursuant to one
or more resolutions of the Authority for any purpose
authorized under this Article, including without limitation
purchasing or acquiring local government securities,
providing for the payment of any interest deemed necessary on
such bonds, paying for the cost of issuance of such bonds,
providing for the payment of the cost of any guarantees,
letters of credit, insurance contracts or other similar
credit support or liquidity instruments, or providing for the
funding of any reserves deemed necessary in connection with
such bonds and refunding or advance refunding of any such
bonds and the interest and any premium thereon, pursuant to
this Act;
(c) To provide for the funding of any reserves or other
funds or accounts deemed necessary by the Authority in
connection with any bonds issued by the Authority or local
government securities purchased or otherwise acquired by the
Authority;
(d) To pledge any local government security, including
any payments thereon, and any other funds of the Authority or
funds made available to the Authority which may be applied to
such purpose, as security for any bonds or any guarantees,
letters of credit, insurance contracts or similar credit
support or liquidity instruments securing the bonds;
(e) To enter into agreements or contracts with third
parties, whether public or private, including without
limitation the United States of America, the State, or any
department or agency thereof to obtain any appropriations,
grants, loans or guarantees which are deemed necessary or
desirable by the Authority. Any such guarantee, agreement or
contract may contain terms and provisions necessary or
desirable in connection with the program, subject to the
requirements established by this Article;
(f) To charge reasonable fees to defray the cost of
obtaining letters of credit, insurance contracts or other
similar documents, and to charge such other reasonable fees
to defray the cost of trustees, depositories, paying agents,
bond registrars, escrow agents and other administrative
expenses. Any such fees shall be payable by units of local
government whose local government securities are purchased or
otherwise acquired by the Authority pursuant to this Article,
in such amounts and at such times as the Authority shall
determine, and the amount of the fees need not be uniform
among the various units of local government whose local
government securities are purchased or otherwise acquired by
the Authority pursuant to this Article;
(g) To obtain and maintain guarantees, letters of credit,
insurance contracts or similar credit support or liquidity
instruments which are deemed necessary or desirable in
connection with any bonds or other obligations of the
Authority or any local government securities;
(h) To establish application fees and other service fees
and prescribe application, notification, contract, agreement,
security and insurance forms and rules and regulations it
deems necessary or appropriate;
(i) To provide technical assistance, at the request of
any unit of local government, with respect to the financing
or refinancing for any public purpose. In fulfillment of this
purpose, the Authority may request assistance from the
Department as necessary; any unit of local government that is
experiencing either a financial emergency as defined in the
Local Government Financial Planning and Supervision Act or a
condition of fiscal crisis evidenced by an impaired ability
to obtain financing for its public purpose projects from
traditional financial channels or impaired ability to fully
fund its obligations to fire, police and municipal employee
pension funds, or to bond payments or reserves, may request
technical assistance from the Authority in the form of a
diagnostic evaluation of its financial condition;
(j) To purchase any obligations of the Authority issued
pursuant to this Article;
(k) To sell, transfer or otherwise dispose of local
government securities purchased or otherwise acquired by the
Authority pursuant to this Article, including without
limitation, the sale, transfer or other disposition of
undivided fractionalized interests in the right to receive
payments of principal and premium, if any, or the right to
receive payments of interest or the right to receive payments
of principal of and premium, if any, and interest on pools of
such local government securities;
(l) To acquire, purchase, lease, sell, transfer and
otherwise dispose of real and personal property, or any
interest therein, and to issue its bonds and enter into
leases, contracts and other agreements with units of local
government in connection with such acquisitions, purchases,
leases, sales and other dispositions of such real and
personal property;
(m) To make loans to banks, savings and loans and other
financial institutions for the purpose of purchasing or
otherwise acquiring local government securities, and to issue
its bonds, and enter into agreements and contracts in
connection with such loans;
(n) To enter into agreements or contracts with any person
necessary or appropriate to place the payment obligations of
the Authority under any of its bonds in whole or in part on
any interest rate basis, cash flow basis, or other basis
desired by the Authority, including without limitation
agreements or contracts commonly known as "interest rate swap
agreements", "forward payment conversion agreements", and
"futures", or agreements or contracts to exchange cash flows
or a series of payments, or agreements or contracts,
including without limitation agreements or contracts commonly
known as "options", "puts" or "calls", to hedge payment, rate
spread, or similar exposure; provided, that any such
agreement or contract shall not constitute an obligation for
borrowed money, and shall not be taken into account under
Section 845-5 of this Act or any other debt limit of the
Authority or the State of Illinois;
(o) To make and enter into all other agreements and
contracts and execute all instruments necessary or incidental
to performance of its duties and the execution of its powers
under this Article;
(p) To contract for and finance the costs of energy
audits, project-specific engineering and design
specifications, and any other related analyses preliminary to
an energy conservation project; and, to contract for and
finance the cost of project monitoring and data collection to
verify post-installation energy consumption and
energy-related operating costs. Any such contract shall be
executed only after it has been jointly negotiated by the
Authority and the Department; and
(q) To exercise such other powers as are necessary or
incidental to the foregoing.
Section 820-25. Unit of Local Government Participation.
Any unit of local government is authorized to voluntarily
participate in this program. Any unit of local government
which is authorized to issue, sell and deliver its local
government securities under any provision of the Constitution
or laws of the State may issue, sell and deliver such local
government securities to the Authority under this Article;
provided that and notwithstanding any other provision of law
to the contrary, any such unit of local government may issue
and sell any such local government security at any interest
rate or rates, which rate or rates may be established by an
index or formula which may be implemented by persons
appointed or retained therefor, payable at such time or
times, and at such price or prices to which the unit of local
government and the Authority may agree. Any unit of local
government may pay any amount charged by the Authority
pursuant to this Article. Any unit of local government
participating in this program may pay out of the proceeds of
its local government securities or out of any other moneys or
funds available to it for such purposes any costs, fees,
interest deemed necessary, premium or reserves incurred or
required for financing or refinancing this program, including
without limitation any fees charged by the Authority pursuant
to this Article and its share, as determined by the
Authority, of any costs, fees, interest deemed necessary,
premium or reserves incurred or required pursuant to Section
820-20 of this Act. All local government securities purchased
or otherwise acquired by the Authority pursuant to this Act
shall upon delivery to the Authority be accompanied by an
approving opinion of bond counsel as to the validity of such
securities. The Authority shall have discretion to purchase
or otherwise acquire those local government securities, as it
shall deem to be in the best interest of its financing
program for all units of local government taken as a whole.
Section 820-30. Criteria for Participation in the
Program. If the Authority requires an application for
participation in the Program, upon submission of any such
application, the Authority or any entity on behalf of the
Authority shall review such application for its completeness
and may, at its discretion, accept or reject such application
or request such additional information as it deems necessary
or advisable to aid its review. In the course of its review,
the Authority may consider but shall not be limited to the
following factors:
(a) Whether the public purpose for which the local
government security is to be issued will have a significant
impact on the economy, environment, health or safety of the
unit of local government;
(b) The extent to which the public purpose for which the
local government security is to be issued will provide
reinforcement for other community and economic development
related investments by such units of local government;
(c) The creditworthiness of the unit of local government
and the local government security, including, without
limitation, the ability of the unit of local government to
comply with the credit requirements of the provider of any
guarantees, letters of credit, insurance contracts or other
similar credit support or liquidity instruments; and
(d) Such other factors as deemed necessary by the
Authority which are consistent with the intent of this Act.
Section 820-35. The Authority shall assist the Department
to establish and implement a program to assist units of local
government to identify and arrange financing for energy
conservation projects in buildings and facilities owned or
leased by units of local government. Such bonds shall not
constitute an indebtedness or obligation of the State of
Illinois and it shall be plainly stated on the face of each
bond that it does not constitute such an indebtedness or
obligation but is payable solely from the revenues, income or
other assets of the Authority pledged therefor.
Section 820-40. Investment of Moneys. Any moneys at any
time held by the Authority pursuant to this Article shall be
held outside the State treasury in the custody of either the
Treasurer of the Authority or a trustee or depository
appointed by the Authority. Such moneys may be invested in
(a) investments authorized by the Public Funds Investment
Act, (b) obligations issued by any State, unit of local
government or school district, which obligations are rated at
the time of purchase by a national rating service within the
2 highest rating classifications without regard to any rating
refinement or gradation by numerical or other modifier, (c)
equity securities of an investment company registered under
the Investment Company Act of l940 whose sole assets, other
than cash and other temporary investments, are obligations
which are eligible investments for the Authority, or (d)
investment contracts under which securities are to be
purchased and sold at a predetermined price on a future date,
or pursuant to which moneys are deposited with a bank or
other financial institution and the deposits are to bear
interest at an agreed upon rate, provided that such
investment contracts are with a bank or other financial
institution whose obligations are rated at the time of
purchase by a national rating service within the 2 highest
rating classifications without regard to any rating
refinement or gradation by numerical or other modifier. The
interest, dividends or other earnings from such investments
may be used to pay administrative costs of the Authority
incurred in administering the program or trustee or
depository fees incurred in connection with such program.
Section 820-45. Pledge of Revenues by the Authority. Any
pledge of revenues or other moneys made by the Authority
shall be binding from the time the pledge is made. Revenues
and other moneys so pledged shall be held outside of the
State treasury and in the custody of either the Treasurer of
the Authority or a trustee or a depository appointed by the
Authority. Revenues or other moneys so pledged and thereafter
received by the Authority or such trustee or depository shall
immediately be subject to the lien of the pledge without any
physical delivery thereof or further act, and the lien of any
pledge shall be binding against all parties having claims of
any kind of tort, contract or otherwise against the
Authority, irrespective of whether the parties have notice
thereof. Neither the resolution nor any other instrument by
which a pledge is created need be filed or recorded except in
the records of the Authority. The State does pledge to and
agree with the holders of bonds, and the beneficial owners of
the local government securities, that the State will not
limit or restrict the rights hereby vested in the Authority
to purchase, acquire, hold, sell or dispose of local
government securities or other investments or to establish
and collect such fees or other charges as may be convenient
or necessary to produce sufficient revenues to meet the
expenses of operation of the Authority, and to fulfill the
terms of any agreement made with the holders of the bonds or
the beneficial owners of the local government securities or
in any way impair the rights or remedies of the holders of
those bonds or the beneficial owners of the local government
securities until such bonds or local government securities
are fully paid and discharged or provision for their payment
has been made.
Section 820-50. Pledge of Funds by Units of Local
Government.
(a) Pledge of Funds. Any unit of local government which
receives funds from the Department of Revenue, including
without limitation funds received pursuant to Sections
8-11-1, 8-11-1.4, 8-11-5 or 8-11-6 of the Illinois Municipal
Code, the Home Rule County Retailers' Occupation Tax Act, the
Home Rule County Service Occupation Tax Act, Sections
25.05-2, 25.05-3 or 25.05-10 of "An Act to revise the law in
relation to counties", Section 5.01 of the Local Mass Transit
District Act, Section 4.03 of the Regional Transportation
Authority Act, Sections 2 or 12 of the State Revenue Sharing
Act, or from the Department of Transportation pursuant to
Section 8 of the Motor Fuel Tax Law, or from the State
Superintendent of Education (directly or indirectly through
regional superintendents of schools) pursuant to Article 18
of the School Code, or any unit of government which receives
other funds which are at any time in the custody of the State
Treasurer, the State Comptroller, the Department of Revenue,
the Department of Transportation or the State Superintendent
of Education may by appropriate proceedings, pledge to the
Authority or any entity acting on behalf of the Authority
(including, without limitation, any trustee), any or all of
such receipts to the extent that such receipts are necessary
to provide revenues to pay the principal of, premium, if any,
and interest on, and other fees related to, or to secure, any
of the local government securities of such unit of local
government which have been sold or delivered to the Authority
or its designee or to pay lease rental payments to be made by
such unit of local government to the extent that such lease
rental payments secure the payment of the principal of,
premium, if any, and interest on, and other fees related to,
any local government securities which have been sold or
delivered to the Authority or its designee. Any pledge of
such receipts (or any portion thereof) shall constitute a
first and prior lien thereon and shall be binding from the
time the pledge is made.
(b) Direct Payment of Pledged Receipts. Any such unit of
local government may, by such proceedings, direct that all or
any of such pledged receipts payable to such unit of local
government be paid directly to the Authority or such other
entity (including, without limitation, any trustee) for the
purpose of paying the principal of, premium, if any, and
interest on, and fees relating to, such local government
securities or for the purpose of paying such lease rental
payments to the extent necessary to pay the principal of,
premium, if any, and interest on, and other fees related to,
such local government securities secured by such lease rental
payments. Upon receipt of a certified copy of such
proceedings by the State Treasurer, the State Comptroller,
the Department of Revenue, the Department of Transportation
or the State Superintendent of Education, as the case may be,
such Department or State Superintendent shall direct the
State Comptroller and State Treasurer to pay to, or on behalf
of, the Authority or such other entity (including, without
limitation, any trustee) all or such portion of the pledged
receipts from the Department of Revenue, or the Department of
Transportation or the State Superintendent of Education
(directly or indirectly through regional superintendents of
schools), as the case may be, sufficient to pay the principal
of and premium, if any, and interest on, and other fees
related to, the local governmental securities for which the
pledge was made or to pay such lease rental payments securing
such local government securities for which the pledge was
made. The proceedings shall constitute authorization for such
a directive to the State Comptroller to cause orders to be
drawn and to the State Treasurer to pay in accordance with
such directive. To the extent that the Authority or its
designee notifies the Department of Revenue, the Department
of Transportation or the State Superintendent of Education,
as the case may be, that the unit of local government has
previously paid to the Authority or its designee the amount
of any principal, premium, interest and fees payable from
such pledged receipts, the State Comptroller shall cause
orders to be drawn and the State Treasurer shall pay such
pledged receipts to the unit of local government as if they
were not pledged receipts. To the extent that such receipts
are pledged and paid to the Authority or such other entity,
any taxes which have been levied or fees or charges assessed
pursuant to law on account of the issuance of such local
government securities shall be paid to the unit of local
government and may be used for the purposes for which the
pledged receipts would have been used.
(c) Payment of Pledged Receipts upon Default. Any such
unit of local government may, by such proceedings, direct
that such pledged receipts payable to such unit of local
government be paid to the Authority or such other entity
(including, without limitation, any trustee) upon a default
in the payment of any principal of, premium, if any, or
interest on, or fees relating to, any of the local government
securities of such unit of local government which have been
sold or delivered to the Authority or its designee or any of
the local government securities which have been sold or
delivered to the Authority or its designee and which are
secured by such lease rental payments. If such local
governmental security is in default as to the payment of
principal thereof, premium, if any, or interest thereon, or
fees relating thereto, to the extent that the State
Treasurer, the State Comptroller, the Department of Revenue,
the Department of Transportation or the State Superintendent
of Education (directly or indirectly through regional
superintendents of schools) shall be the custodian at any
time of any other available funds or moneys pledged to the
payment of such local government securities or such lease
rental payments securing such local government securities
pursuant to this Section and due or payable to such a unit of
local government at any time subsequent to written notice to
the State Comptroller and State Treasurer from the Authority
or any entity acting on behalf of the Authority (including,
without limitation, any trustee) to the effect that such unit
of local government has not paid or is in default as to
payment of the principal of, premium, if any, or interest on,
or fees relating to, any local government security sold or
delivered to the Authority or any such entity (including,
without limitation, any trustee) or has not paid or is in
default as to the payment of such lease rental payments
securing the payment of the principal of, premium, if any, or
interest on, or other fees relating to, any local government
security sold or delivered to the Authority or such other
entity (including, without limitation, any trustee):
(i) The State Comptroller and the State Treasurer
shall withhold the payment of such funds or moneys from
such unit of local government until the amount of such
principal, premium, if any, interest or fees then due and
unpaid has been paid to the Authority or any such entity
(including, without limitation, any trustee), or the
State Comptroller and the State Treasurer have been
advised that arrangements, satisfactory to the Authority
or such entity, have been made for the payment of such
principal, premium, if any, interest and fees; and
(ii) Within 10 days after a demand for payment by
the Authority or such entity given to such unit of local
government, the State Treasurer and the State
Comptroller, the State Treasurer shall pay such funds or
moneys as are legally available therefor to the Authority
or such entity for the payment of principal of, premium,
if any, or interest on, or fees relating to, such local
government securities. The Authority or any such entity
may carry out this Section and exercise all the rights,
remedies and provisions provided or referred to in this
Section.
(d) Remedies. Upon the sale or delivery of any local
government securities of the Authority or its designee, the
local government which issued such local government
securities shall be deemed to have agreed that upon its
failure to pay interest or premium, if any, on, or principal
of, or fees relating to, the local government securities sold
or delivered to the Authority or any entity acting on behalf
of the Authority (including, without limitation, any trustee)
when payable, all statutory defenses to nonpayment are
thereby waived. Upon a default in payment of principal of or
interest on any local government securities issued by a unit
of local government and sold or delivered to the Authority or
its designee, and upon demand on the unit of local government
for payment, if the local government securities are payable
from property taxes and funds are not legally available in
the treasury of the unit of local government to make payment,
an action in mandamus for the levy of a tax by the unit of
local government to pay the principal of or interest on the
local government securities shall lie, and the Authority or
such entity shall be constituted a holder or owner of the
local government securities as being in default. Upon the
occurrence of any failure or default with respect to any
local government securities issued by a unit of local
government, the Authority or such entity may thereupon avail
itself of all remedies, rights and provisions of law
applicable in the circumstances, and the failure to exercise
or exert any rights or remedies within a time or period
provided by law may not be raised as a defense by the unit of
local government.
Section 820-55. Eligible Investments. Bonds, issued by
the Authority pursuant to the provisions of this Article,
shall be permissible investments within the provisions of
Section 805-40 of this Act.
Section 820-60. Tax Exemption. The exercise of powers
granted in this Article is in all respects for the benefit of
the people of Illinois and in consideration thereof the bonds
issued pursuant to the aforementioned Sections and the income
therefrom shall be free from all taxation by the State or its
political subdivisions, except for estate, transfer and
inheritance taxes. For purposes of Section 250 of the
Illinois Income Tax Act, the exemption of the income from
bonds issued under the aforementioned Sections shall
terminate after all of the bonds have been paid. The amount
of such income that shall be added and then subtracted on the
Illinois income tax return of a taxpayer, pursuant to Section
203 of the Illinois Income Tax Act, from federal adjusted
gross income or federal taxable income in computing Illinois
base income shall be the interest net of any bond premium
amortization.
ARTICLE 825
OTHER POWERS
Section 825-5. Motion Picture Production Program;
Findings and Declaration of Policy. It is hereby found and
declared that the production of motion pictures has an
enormous potential for contributing to the economic
well-being of the State and its communities; that a critical
mass of movie productions is essential to the continuing
viability of this fledgling industry in Illinois; that to
achieve this critical mass, a financial inducement to attract
movie productions to the State is required; and that the
provisions of this Act are hereby declared to be in the
public interest and for the public benefit.
Section 825-10. The Authority may develop a program for
financing the production of motion pictures in the State of
Illinois. All projects financed by the Authority shall
require the approval of both the Illinois Arts Council and
the Authority.
Section 825-15. Credit Enhancement Development Fund.
(a) There is hereby created the Credit Enhancement
Development Fund in the Authority. The Treasurer shall have
custody of the fund, which shall be held outside the State
treasury. Custody may be transferred to and held by any
fiduciary with whom the Authority executes a trust agreement.
All or any portion of such amounts may be used (i) to pay
principal, interest and premium, if any, on any bonds issued
by the Authority or to fund any reserves or accounts created
for such purpose, (ii) to pay the cost of any letter of
credit, insurance or third party guarantee provided with
respect to any bond issued by the Authority or loan made by
the Authority, (iii) to guarantee or otherwise enhance the
credit of any bond issued by the Authority or loan made by
the Authority, or (iv) to make loans to any person,
corporation or unit of local government for any project
authorized to be financed by the Authority under this Act.
(b) The Authority shall report to the Governor and the
General Assembly no later than June 1, 2004, on the extent to
which its use of monies in this Fund has enhanced the
creditworthiness of its bonds issued or loans made with
respect to any person, thereby reducing the cost of financing
projects authorized by this Act.
Section 825-20. Financially Distressed City Assistance
Program; Findings and Declarations of Policy. It is hereby
found and declared that there exists an urgent need to reduce
involuntary unemployment and economic stagnation within
financially distressed cities and to create therein a more
favorable economic climate for the development of new and
improved employment opportunities for the citizens of such
cities; that to address such need it is necessary to promote
sound financial management and fiscal integrity within such
cities in order to provide a secure financial basis for their
continued operation; and that implementation of a financially
distressed city assistance program under the provisions of
this Act is declared to be in the public interest and for the
public benefit.
Section 825-25. Definition. As used in Sections 825-20
through 825-60 of this Act, the term "financially distressed
city" means a unit of local government which has been
certified and designated as a financially distressed city
under Section 8-12-4 of the Illinois Municipal Code and to
which the provisions of Division 12 of Article 8 of that Code
have become applicable as provided by that Section 8-12-4.
Section 825-30. Powers and Duties; Financing.
(a) Upon application of the financial advisory authority
established for a financially distressed city under Division
12 of Article 8 of the Illinois Municipal Code, the Authority
shall have the power to issue its bonds, notes or other
evidences of indebtedness, the proceeds of which are to be
used to make loans to a financially distressed city for
purposes of enabling that city to restructure its current
indebtedness and to provide and pay for its essential
municipal services as determined in a manner consistent with
Division 12 of Article 8 of the Illinois Municipal Code by
the financial advisory authority established for that city
under that Division 12.
(b) Bonds authorized to be issued by the Authority under
Sections 825-20 through 825-60 shall be payable from such
revenues, income, funds and accounts of the financially
distressed city which receives a loan of any proceeds of the
bonds so issued as the Authority shall determine and
prescribe in the loan agreement.
(c) The Authority may prescribe the form and contents of
any application submitted under subsection (a) of this
Section and may, at its discretion, accept or reject such
application or require such additional information as it
deems necessary to aid in its review and determination of
whether it will issue its bonds and loan the proceeds thereof
as authorized under Sections 825-20 through 825-60.
(d) The amount of bonds issued or proceeds thereof loaned
by the Authority with respect to an application which the
Authority has approved shall be determined by the Authority.
(e) The financially distressed city receiving a loan
under Sections 825-20 through 825-60 shall enter into a loan
agreement in the form and manner prescribed by the Authority,
and shall pay back to the Authority the principal amount of
the loan, plus annual interest as determined by the
Authority. The Authority shall have the power, subject to
appropriations by the General Assembly, to subsidize or buy
down a portion of the interest on such loans, up to 4% per
annum.
(f) The Authority shall create and establish a debt
service reserve fund to be maintained by a trustee separate
and segregated from all other funds and accounts of the
Authority. This reserve fund shall be initially funded by a
contribution of State monies.
(g) The amount to be accumulated in the debt service
reserve fund shall be determined by the Authority but shall
not exceed the maximum amount of interest, principal and
sinking fund installments due in any succeeding calendar
year.
Section 825-35. Pledge of Funds. Any financially
distressed city which receives funds from the Department of
Revenue, including without limitation funds received pursuant
to Section 8-11-1, 8-11-5 or 8-11-6 of the Illinois Municipal
Code or Section 2 or 12 of the State Revenue Sharing Act, or
from the Department of Transportation pursuant to Section 8
of the Motor Fuel Tax Law, may, by appropriate proceedings,
pledge to the Authority, or any entity acting on behalf of
the Authority (including, without limitation, any trustee),
any or all of such receipts to the extent that such receipts
are determined by the Authority to be necessary to provide
revenues to pay or secure the payment of the principal of,
premium, if any, and interest on any of the bonds issued on
behalf of, or loans made to, the financially distressed city
by the Authority under Sections 825-20 through 825-60. The
adoption of such proceedings shall constitute a directive to
the State Comptroller and State Treasurer to pay to, or on
behalf of, the Authority or such other entity (including,
without limitation, any trustee) such portion of the pledged
receipts from the Department of Revenue or Department of
Transportation, as the case may be, and with the State
Comptroller and the State Treasurer. With respect to any
bonds issued on behalf of, or loans made to, the financially
distressed city by the Authority under Sections 825-20
through 825-60, which are in default in the payment of
principal, premium, if any, or interest, to the extent that
the State Treasurer, the State Comptroller, the Department of
Revenue or the Department of Transportation shall be the
custodian at any time of any other available funds or moneys
pledged to the payment of such local government securities or
such lease rental payments securing such local government
securities pursuant to this Section and due or payable to
such a unit of local government at any time subsequent to
written notice to the State Comptroller and State Treasurer
from the Authority or any entity acting on behalf of the
Authority (including, without limitation, any trustee) to the
effect that such financially distressed city has not paid or
is in default as to payment of the principal of, premium, if
any, or interest on any bonds issued on behalf of, or loans
made to, the financially distressed city by the Authority
under Sections 825-20 through 825-60:
(a) The State Comptroller and the State Treasurer shall
withhold the payment of such funds or moneys from the
financially distressed city until the amount of such
principal, premium, if any, and interest then due and unpaid
has been paid to the Authority or such entity acting on
behalf of the Authority (including, without limitation, any
trustee), or the State Comptroller or State Treasurer have
been advised that arrangements, satisfactory to the Authority
or such entity, have been made for the payment of such
principal, premium, if any, and interest; and
(b) Within 10 days after a demand for payment by the
Authority or such entity is given to the State Treasurer and
the State Comptroller, the State Treasurer shall pay such
funds or moneys as are legally available therefor to the
Authority or such entity for the payment of principal,
premium, if any, and interest on such bonds or loans. The
Authority or such entity may carry out this Section and
exercise all the rights, remedies and provisions provided or
referred to in this Section.
Section 825-40. Additional security. In the event that
the Authority determines that funds pledged, intercepted or
otherwise received or to be received by the Authority under
Section 825-20 of this Act will not be sufficient for the
payment of the principal, premium, if any, and interest
during the next State fiscal year on any bonds issued by the
Authority under Sections 825-20 through 825-60, the Chairman,
as soon as is practicable, shall certify to the Governor the
amount required by the Authority to enable it to pay the
principal, premium, if any, and interest falling due on such
bonds. The Governor shall submit the amount so certified to
the General Assembly as soon as practicable, but no later
than the end of the current State fiscal year. This paragraph
shall not apply to any bonds as to which the Authority shall
have determined, in the resolution authorizing their
issuance, that this paragraph shall not apply. Whenever the
Authority makes such a determination, that fact shall be
plainly stated on the face of such bonds and that fact shall
also be reported to the Governor. In the event of a
withdrawal of moneys from a debt service reserve fund
established with respect to any issue or issues of bonds of
the Authority to pay principal and interest on those bonds,
the Chairman, as soon as practicable, shall certify to the
Governor the amount required to restore such reserve funds to
the level required in the resolution or indenture securing
the bonds. The Governor shall submit the amount so certified
to the General Assembly as soon as practicable, but not later
than the end of the current State fiscal year.
Section 825-50. Eligible Investments. Bonds issued by the
Authority pursuant to Sections 825-20 through 825-60 shall be
permissible investments within the provisions of Section
805-40.
Section 825-55. Tax Exemption. The exercise of the
powers granted in Sections 825-20 through 825-60 are in all
respects for the benefit of the people of Illinois, and in
consideration thereof shall be free from all taxation by the
State or its political subdivisions, except for estate,
transfer and inheritance taxes. For the purposes of Section
250 of the Illinois Income Tax Act, the exemption of the
income from bonds issued under the aforementioned Sections
shall terminate after all of the bonds have been paid. The
amount of such income that shall be added and then subtracted
on the Illinois income tax return of a taxpayer, pursuant to
Section 203 of the Illinois Income Tax Act, from federal
adjusted gross income or federal taxable income in computing
Illinois base income shall be the interest net of any bond
premium amortization.
Section 825-60. Financially Distressed City Assistance
Program Limitation. In addition to the bonds authorized to be
issued under Sections 801-40(w), 825-65(e), 830-25 and 845-5,
the Authority may have outstanding at any time, bonds for the
purposes enumerated in Sections 825-20 through 825-60 in an
aggregate principal amount that shall not exceed $50,000,000.
Such bonds shall not constitute an indebtedness or obligation
of the State of Illinois, and it shall be plainly stated on
the face of each bond that it does not constitute such an
indebtedness or obligation but is payable solely from the
revenues, income or other assets of the Authority pledged
therefor.
Section 825-65. Clean Coal and Energy Project Financing.
(a) Findings and declaration of policy. It is hereby
found and declared that Illinois has abundant coal resources
and, in some areas of Illinois, the demand for power exceeds
the generating capacity. Incentives to encourage the
construction of coal-fired electric generating plants in
Illinois to ensure power generating capacity into the future
are in the best interests of all of the citizens of Illinois.
The Authority is authorized to issue bonds to help finance
Clean Coal and Energy projects pursuant to this Section.
(b) Definition. "Clean Coal and Energy projects" means
new electric generating facilities, as defined in Section
605-332 of the Department of Commerce and Economic
Opportunity Law of the Civil Administrative Code of Illinois,
which may include mine-mouth power plants, projects that
employ the use of clean coal technology, projects to provide
scrubber technology for existing energy generating plants, or
projects to provide electric transmission facilities.
(c) Creation of reserve funds. The Authority may
establish and maintain one or more reserve funds to enhance
bonds issued by the Authority for Clean Coal and Energy
projects to develop alternative energy sources, including
renewable energy projects, projects to provide scrubber
technology for existing energy generating plants or projects
to provide electric transmission facilities. There may be one
or more accounts in these reserve funds in which there may be
deposited:
(1) any proceeds of the bonds issued by the
Authority required to be deposited therein by the terms
of any contract between the Authority and its bondholders
or any resolution of the Authority;
(2) any other moneys or funds of the Authority that
it may determine to deposit therein from any other
source; and
(3) any other moneys or funds made available to the
Authority. Subject to the terms of any pledge to the
owners of any bonds, moneys in any reserve fund may be
held and applied to the payment of principal, premium, if
any, and interest of such bonds.
(d) Powers and duties. The Authority has the power:
(1) To issue bonds in one or more series pursuant to
one or more resolutions of the Authority for any Clean
Coal and Energy projects authorized under this Section,
within the authorization set forth in subsections (e) and
(f).
(2) To provide for the funding of any reserves or
other funds or accounts deemed necessary by the Authority
in connection with any bonds issued by the Authority.
(3) To pledge any funds of the Authority or funds
made available to the Authority that may be applied to
such purpose as security for any bonds or any guarantees,
letters of credit, insurance contracts or similar credit
support or liquidity instruments securing the bonds.
(4) To enter into agreements or contracts with third
parties, whether public or private, including, without
limitation, the United States of America, the State or
any department or agency thereof, to obtain any
appropriations, grants, loans or guarantees that are
deemed necessary or desirable by the Authority. Any such
guarantee, agreement or contract may contain terms and
provisions necessary or desirable in connection with the
program, subject to the requirements established by the
Act.
(5) To exercise such other powers as are necessary
or incidental to the foregoing.
(e) Clean Coal and Energy bond authorization and
financing limits. In addition to any other bonds authorized
to be issued under Sections 801-40(w), 825-60, 830-25 and
845-5, the Authority may have outstanding, at any time, bonds
for the purpose enumerated in this Section 825-65 in an
aggregate principal amount that shall not exceed
$2,700,000,000, of which no more than $300,000,000 may be
issued to finance transmission facilities, no more than
$500,000,000 may be issued to finance scrubbers at existing
generating plants, no more than $500,000,000 may be issued to
finance alternative energy sources, including renewable
energy projects and no more than $1,400,000,000 may be issued
to finance new electric generating facilities, as defined in
Section 605-332 of the Department of Commerce and Economic
Opportunity Law of the Civil Administrative Code of Illinois,
which may include mine-mouth power plants. An application for
a loan financed from bond proceeds from a borrower or its
affiliates for a Clean Coal and Energy project may not be
approved by the Authority for an amount in excess of
$450,000,000 for any borrower or its affiliates. These bonds
shall not constitute an indebtedness or obligation of the
State of Illinois and it shall be plainly stated on the face
of each bond that it does not constitute an indebtedness or
obligation of the State of Illinois, but is payable solely
from the revenues, income or other assets of the Authority
pledged therefor.
(f) Additional Clean Coal and Energy bond authorization
and financing limits. In addition to any other bonds
authorized to be issued under this Act, the Authority may
issue bonds for the purpose enumerated in this Section 825-65
in an aggregate principal amount that shall not exceed
$300,000,000.
Section 825-70. Criteria for participation in the
program. Applications to the Authority for financing of any
Clean Coal and Energy project shall be reviewed by the
Authority. Upon submission of any such application, the
Authority staff shall review the application for its
completeness and may, at the discretion of the Authority
staff, request such additional information as it deems
necessary or advisable to aid in review. If the Authority
receives applications for financing for Clean Coal and Energy
projects in excess of the bond authorization available for
such financing at any one time, it shall consider
applications in the order of priority as it shall determine,
in consultation with other State agencies.
Section 825-75. Additional Security. In the event that
the Authority determines that monies of the Authority will
not be sufficient for the payment of the principal of and
interest on any bonds issued by the Authority under Sections
825-65 through 825-75 of this Act for energy generation
projects that advance clean coal technology and the use of
Illinois coal during the next State fiscal year, the
Chairperson, as soon as practicable, shall certify to the
Governor the amount required by the Authority to enable it to
pay such principal, premium, if any, and interest on such
bonds. The Governor shall submit the amount so certified to
the General Assembly as soon as practicable, but no later
than the end of the current State fiscal year. This
subsection shall not apply to any bonds or notes as to which
the Authority shall have determined, in the resolution
authorizing the issuance of the bonds or notes, that this
subsection shall not apply. Whenever the Authority makes such
a determination, that fact shall be plainly stated on the
face of the bonds or notes and that fact should also be
reported to the Governor. In the event of a withdrawal of
moneys from a reserve fund established with respect to any
issue or issues of bonds of the Authority to pay principal,
premium, if any, and interest on such bonds, the Chairman of
the Authority, as soon as practicable, shall certify to the
Governor the amount required to restore the reserve fund to
the level required in the resolution or indenture securing
those bonds. The Governor shall submit the amount so
certified to the General Assembly as soon as practicable, but
no later than the end of the current State fiscal year. The
Authority shall obtain written approval from the Governor for
any bonds and notes to be issued under this Section.
ARTICLE 830
AGRICULTURAL ASSISTANCE
Section 830-5. The Authority shall have the following
powers:
(a) To loan its funds to one or more persons to be used
by such persons to pay the costs of acquiring, constructing,
reconstructing or improving Agricultural Facilities, soil or
water conservation projects or watershed areas, such loans to
be on such terms and conditions, and for such period of time,
and secured or evidenced by such mortgages, deeds of trust,
notes, debentures, bonds or other secured or unsecured
evidences of indebtedness of such persons as the Board may
determine;
(b) To loan its funds to any agribusiness which operates
or will operate a facility located in Illinois for those
purposes permitted by rules and regulations issued pursuant
to the Internal Revenue Code of 1954, as amended, relating to
the use of moneys loaned from the proceeds from the issuance
of industrial development revenue bonds; such loans shall be
on terms and conditions, and for periods of time, and secured
or evidenced by mortgages, deeds of trust, notes, debentures,
bonds or other secured or unsecured evidences of indebtedness
of such agribusiness as the Board may require;
(c) To purchase, or to make commitments to purchase, from
lenders notes, debentures, bonds or other evidences of
indebtedness secured by mortgages, deeds of trust, or
security devices, or unsecured, as the Authority may
determine, or portions thereof or participations therein,
which notes, bonds, or other evidences of indebtedness shall
have been or will be executed by the obligors thereon to
obtain funds with which to acquire, by purchase,
construction, or otherwise, reconstruct or improve
Agricultural Facilities;
(d) To contract with lenders or others for the
origination of or the servicing of the loans made by the
Authority pursuant to this Section or represented by the
notes, bonds, or other evidences of indebtedness which it has
purchased pursuant to this Section; provided that such
servicing fees shall not exceed one percent per annum of the
principal amount outstanding owed to the Authority; and
(e) To enter into a State Guarantee with a lender or a
person holding a note and to sell or issue such State
Guarantees, bonds or evidences of indebtedness in a primary
or a secondary market.
Section 830-10. (a) The Authority shall establish a Farm
Debt Relief Program to help provide eligible Illinois farmers
with State assistance in meeting their farming-related debts.
(b) To be eligible for the program, a person must (1) be
actively engaged in farming in this State, (2) have
farming-related debts in an amount equal to at least 55% of
the person's total assets, and (3) demonstrate that he can
secure credit from a conventional lender for the 1986 crop
year.
(c) An eligible person may apply to the Authority, in
such manner as the Authority may specify, for a one-time farm
debt relief payment of up to 2% of the person's outstanding
farming-related debt. If the Authority determines that the
applicant is eligible for a payment under this Section, it
may then approve a payment to the applicant. Such payment
shall consist of a payment made by the Authority directly to
one or more of the applicant's farming-related creditors, to
be applied to the reduction of the applicant's
farming-related debt. The applicant shall be entitled to
select the creditor or creditors to receive the payment,
unless the applicant is subject to the jurisdiction of a
bankruptcy court, in which case the selection of the court
shall control.
(d) Payments shall be made from the Farm Emergency
Assistance Fund, which is hereby established as a special
fund in the State treasury, from funds appropriated to the
Authority for that purpose. No grant may exceed the lesser of
(1) 2% of the applicant's outstanding farm-related debt, or
(2) $2000. Not more than one grant under this Section may be
made to any one person, or to any one household, or to any
single farming operation.
(e) Payments to applicants having farming-related debts
in an amount equal to at least 55% of the person's total
assets, but less than 70%, shall be repaid by the applicant
to the Authority for deposit into the Farm Emergency
Assistance Fund within five years from the date the payment
was made. Repayment shall be made in equal installments
during the five-year period with no additional interest
charge and may be prepaid in whole or in part at any time.
Applicants having farming-related debts in an amount equal to
at least 70% of the person's total assets shall not be
required to make any repayment. Assets shall include, but not
be limited to, the following: cash crops or feed on hand;
livestock held for sale; breeding stock; marketable bonds and
securities; securities not readily marketable; accounts
receivable; notes receivable; cash invested in growing crops;
net cash value of life insurance; machinery and equipment;
cars and trucks; farm and other real estate including life
estates and personal residence; value of beneficial interests
in trusts; government payments or grants; and any other
assets. Debts shall include, but not be limited to, the
following: accounts payable; notes or other indebtedness owed
to any source; taxes; rent; amounts owed on real estate
contracts or real estate mortgages; judgments; accrued
interest payable; and any other liability.
Section 830-15. Interest-buy-back program.
(a) The Authority shall establish an interest-buy-back
program to subsidize the interest cost on certain loans to
Illinois farmers.
(b) To be eligible an applicant must (i) be a resident of
Illinois; (ii) be a principal operator of a farm or land;
(iii) derive at least 50% of annual gross income from
farming; and (iv) have a net worth of at least $10,000. The
Authority shall establish minimum and maximum financial
requirements, maximum payment amounts, starting and ending
dates for the program, and other criteria.
(c) Lenders may apply on behalf of eligible applicants on
forms provided by the Authority. Lenders may submit requests
for payment on forms provided by the Authority. Lenders and
applicants shall be responsible for any fees or charges the
Authority may require.
(d) The Authority shall make payments to lenders from
available appropriations from the General Revenue Fund.
Section 830-20. The Authority may not pass a resolution
authorizing the issuance of any notes or bonds in excess of
$250,000 for any one agricultural real estate borrower. No
proceeds from any bonds issued by the Authority shall be
loaned to any natural person who has a net worth in excess of
$500,000 for the purchase of new depreciable agricultural
property or to any agribusiness that, including all
affiliates and subsidiaries, has more than 100 employees and
a gross income exceeding $2,000,000 for the preceding
calendar year; provided, however, that the employee size and
gross income limitations shall not apply to any loans to
agribusinesses for research and development purposes, and
provided further that the Authority shall retain the power to
waive such limitations for any agribusiness that, at the time
of application, does not operate a facility within this
State.
Section 830-25. Bonded indebtedness limitation. The
Authority shall not have outstanding at any one time State
Guarantees under Section 830-30 in an aggregate principal
amount exceeding $160,000,000. The Authority shall not have
outstanding at any one time State Guarantees under Sections
830-35, 830-45 and 830-50 in an aggregate principal amount
exceeding $75,000,000.
Section 830-30. State Guarantees for existing debt.
(a) The Authority is authorized to issue State Guarantees
for farmers' existing debts held by a lender. For the
purposes of this Section, a farmer shall be a resident of
Illinois, who is a principal operator of a farm or land, at
least 50% of whose annual gross income is derived from
farming and whose debt to asset ratio shall not be less than
40%, except in those cases where the applicant has previously
used the guarantee program there shall be no debt to asset
ratio or income restriction. For the purposes of this
Section, debt to asset ratio shall mean the current
outstanding liabilities of the farmer divided by the current
outstanding assets of the farmer. The Authority shall
establish the maximum permissible debt to asset ratio based
on criteria established by the Authority. Lenders shall apply
for the State Guarantees on forms provided by the Authority
and certify that the application and any other documents
submitted are true and correct. The lender or borrower, or
both in combination, shall pay an administrative fee as
determined by the Authority. The applicant shall be
responsible for paying any fees or charges involved in
recording mortgages, releases, financing statements,
insurance for secondary market issues and any other similar
fees or charges as the Authority may require. The application
shall at a minimum contain the farmer's name, address,
present credit and financial information, including cash flow
statements, financial statements, balance sheets, and any
other information pertinent to the application, and the
collateral to be used to secure the State Guarantee. In
addition, the lender must agree to bring the farmer's debt to
a current status at the time the State Guarantee is provided
and must also agree to charge a fixed or adjustable interest
rate which the Authority determines to be below the market
rate of interest generally available to the borrower. If both
the lender and applicant agree, the interest rate on the
State Guarantee Loan can be converted to a fixed interest
rate at any time during the term of the loan. Any State
Guarantees provided under this Section (i) shall not exceed
$500,000 per farmer, (ii) shall be set up on a payment
schedule not to exceed 30 years, and shall be no longer than
30 years in duration, and (iii) shall be subject to an annual
review and renewal by the lender and the Authority; provided
that only one such State Guarantee shall be outstanding per
farmer at any one time. No State Guarantee shall be revoked
by the Authority without a 90-day notice, in writing, to all
parties. In those cases where the borrower has not previously
used the guarantee program, the lender shall not call due any
loan during the first 3 years for any reason except for lack
of performance or insufficient collateral. The lender can
review and withdraw or continue with the State Guarantee on
an annual basis after the first 3 years of the loan, provided
a 90-day notice, in writing, to all parties has been given.
(b) The Authority shall provide or renew a State
Guarantee to a lender if:
(i) A fee equal to 25 basis points on the loan is
paid to the Authority on an annual basis by the lender.
(ii) The application provides collateral acceptable
to the Authority that is at least equal to the State's
portion of the Guarantee to be provided.
(iii) The lender assumes all responsibility and
costs for pursuing legal action on collecting any loan
that is delinquent or in default.
(iv) The lender is responsible for the first 15% of
the outstanding principal of the note for which the State
Guarantee has been applied.
(c) There is hereby created outside of the State treasury
a special fund to be known as the Illinois Agricultural Loan
Guarantee Fund. The State Treasurer shall be custodian of
this Fund. Any amounts in the Illinois Agricultural Loan
Guarantee Fund not currently needed to meet the obligations
of the Fund shall be invested as provided by law, and all
interest earned from these investments shall be deposited
into the Fund until the Fund reaches the maximum amount
authorized in this Act; thereafter, interest earned shall be
deposited into the General Revenue Fund. After September 1,
1989, annual investment earnings equal to 1.5% of the Fund
shall remain in the Fund to be used for the purposes
established in Section 830-40 of this Act. The Authority is
authorized to transfer to the Fund such amounts as are
necessary to satisfy claims during the duration of the State
Guarantee program to secure State Guarantees issued under
this Section. If for any reason the General Assembly fails to
make an appropriation sufficient to meet these obligations,
this Act shall constitute an irrevocable and continuing
appropriation of an amount necessary to secure guarantees as
defaults occur and the irrevocable and continuing authority
for, and direction to, the State Treasurer and the
Comptroller to make the necessary transfers to the Illinois
Agricultural Loan Guarantee Fund, as directed by the
Governor, out of the General Revenue Fund. Within 30 days
after November 15, 1985, the Authority may transfer up to
$7,000,000 from available appropriations into the Illinois
Agricultural Loan Guarantee Fund for the purposes of this
Act. Thereafter, the Authority may transfer additional
amounts into the Illinois Agricultural Loan Guarantee Fund to
secure guarantees for defaults as defaults occur. In the
event of default by the farmer, the lender shall be entitled
to, and the Authority shall direct payment on, the State
Guarantee after 90 days of delinquency. All payments by the
Authority shall be made from the Illinois Agricultural Loan
Guarantee Fund to satisfy claims against the State Guarantee.
The Illinois Agricultural Loan Guarantee Fund shall guarantee
receipt of payment of the 85% of the principal and interest
owed on the State Guarantee Loan by the farmer to the
guarantee holder. It shall be the responsibility of the
lender to proceed with the collecting and disposing of
collateral on the State Guarantee within 14 months of the
time the State Guarantee is declared delinquent; provided,
however, that the lender shall not collect or dispose of
collateral on the State Guarantee without the express written
prior approval of the Authority. If the lender does not
dispose of the collateral within 14 months, the lender shall
be liable to repay to the State interest on the State
Guarantee equal to the same rate which the lender charges on
the State Guarantee; provided, however, that the Authority
may extend the 14-month period for a lender in the case of
bankruptcy or extenuating circumstances. The Fund shall be
reimbursed for any amounts paid under this Section upon
liquidation of the collateral. The Authority, by resolution
of the Board, may borrow sums from the Fund and provide for
repayment as soon as may be practical upon receipt of
payments of principal and interest by a farmer. Money may be
borrowed from the Fund by the Authority for the sole purpose
of paying certain interest costs for farmers associated with
selling a loan subject to a State Guarantee in a secondary
market as may be deemed reasonable and necessary by the
Authority.
(d) Notwithstanding the provisions of this Section 830-30
with respect to the farmers and lenders who may obtain State
Guarantees, the Authority may promulgate rules establishing
the eligibility of farmers and lenders to participate in the
State guarantee program and the terms, standards, and
procedures that will apply, when the Authority finds that
emergency conditions in Illinois agriculture have created the
need for State Guarantees pursuant to terms, standards, and
procedures other than those specified in this Section.
Section 830-35. State Guarantees for loans to farmers and
agribusiness; eligibility.
(a) The Authority is authorized to issue State Guarantees
to lenders for loans to eligible farmers and agribusinesses
for purposes set forth in this Section. For purposes of this
Section, an eligible farmer shall be a resident of Illinois
(i) who is principal operator of a farm or land, at least 50%
of whose annual gross income is derived from farming, (ii)
whose annual total sales of agricultural products,
commodities, or livestock exceeds $20,000, and (iii) whose
net worth does not exceed $500,000. An eligible agribusiness
shall be that as defined in Section 801-10 of this Act. The
Authority may approve applications by farmers and
agribusinesses that promote diversification of the farm
economy of this State through the growth and development of
new crops or livestock not customarily grown or produced in
this State or that emphasize a vertical integration of grain
or livestock produced or raised in this State into a finished
agricultural product for consumption or use. "New crops or
livestock not customarily grown or produced in this State"
shall not include corn, soybeans, wheat, swine, or beef or
dairy cattle. "Vertical integration of grain or livestock
produced or raised in this State" shall include any new or
existing grain or livestock grown or produced in this State.
Lenders shall apply for the State Guarantees on forms
provided by the Authority, certify that the application and
any other documents submitted are true and correct, and pay
an administrative fee as determined by the Authority. The
applicant shall be responsible for paying any fees or charges
involved in recording mortgages, releases, financing
statements, insurance for secondary market issues and any
other similar fees or charges as the Authority may require.
The application shall at a minimum contain the farmer's or
agribusiness' name, address, present credit and financial
information, including cash flow statements, financial
statements, balance sheets, and any other information
pertinent to the application, and the collateral to be used
to secure the State Guarantee. In addition, the lender must
agree to charge an interest rate, which may vary, on the loan
that the Authority determines to be below the market rate of
interest generally available to the borrower. If both the
lender and applicant agree, the interest rate on the State
Guarantee Loan can be converted to a fixed interest rate at
any time during the term of the loan. Any State Guarantees
provided under this Section (i) shall not exceed $500,000 per
farmer or an amount as determined by the Authority on a
case-by-case basis for an agribusiness, (ii) shall not exceed
a term of 15 years, and (iii) shall be subject to an annual
review and renewal by the lender and the Authority; provided
that only one such State Guarantee shall be made per farmer
or agribusiness, except that additional State Guarantees may
be made for purposes of expansion of projects financed in
part by a previously issued State Guarantee. No State
Guarantee shall be revoked by the Authority without a 90-day
notice, in writing, to all parties. The lender shall not call
due any loan for any reason except for lack of performance,
insufficient collateral, or maturity. A lender may review and
withdraw or continue with a State Guarantee on an annual
basis after the first 5 years following closing of the loan
application if the loan contract provides for an interest
rate that shall not vary. A lender shall not withdraw a State
Guarantee if the loan contract provides for an interest rate
that may vary, except for reasons set forth herein.
(b) The Authority shall provide or renew a State
Guarantee to a lender if:
(i) A fee equal to 25 basis points on the loan is
paid to the Authority on an annual basis by the lender.
(ii) The application provides collateral acceptable
to the Authority that is at least equal to the State's
portion of the Guarantee to be provided.
(iii) The lender assumes all responsibility and
costs for pursuing legal action on collecting any loan
that is delinquent or in default.
(iv) The lender is responsible for the first 15% of
the outstanding principal of the note for which the State
Guarantee has been applied.
(c) There is hereby created outside of the State treasury
a special fund to be known as the Illinois Farmer and
Agribusiness Loan Guarantee Fund. The State Treasurer shall
be custodian of this Fund. Any amounts in the Fund not
currently needed to meet the obligations of the Fund shall be
invested as provided by law, and all interest earned from
these investments shall be deposited into the Fund until the
Fund reaches the maximum amounts authorized in this Act;
thereafter, interest earned shall be deposited into the
General Revenue Fund. After September 1, 1989, annual
investment earnings equal to 1.5% of the Fund shall remain in
the Fund to be used for the purposes established in Section
830-40 of this Act. The Authority is authorized to transfer
such amounts as are necessary to satisfy claims from
available appropriations and from fund balances of the Farm
Emergency Assistance Fund as of June 30 of each year to the
Illinois Farmer and Agribusiness Loan Guarantee Fund to
secure State Guarantees issued under this Section and
Sections 830-45 and 830-50. If for any reason the General
Assembly fails to make an appropriation sufficient to meet
these obligations, this Act shall constitute an irrevocable
and continuing appropriation of an amount necessary to secure
guarantees as defaults occur and the irrevocable and
continuing authority for, and direction to, the State
Treasurer and the Comptroller to make the necessary transfers
to the Illinois Farmer and Agribusiness Loan Guarantee Fund,
as directed by the Governor, out of the General Revenue Fund.
In the event of default by the borrower on State Guarantee
Loans under this Section, Section 830-45 or Section 830-50,
the lender shall be entitled to, and the Authority shall
direct payment on, the State Guarantee after 90 days of
delinquency. All payments by the Authority shall be made from
the Illinois Farmer and Agribusiness Loan Guarantee Fund to
satisfy claims against the State Guarantee. It shall be the
responsibility of the lender to proceed with the collecting
and disposing of collateral on the State Guarantee under this
Section, Section 830-45 or Section 830-50 within 14 months of
the time the State Guarantee is declared delinquent. If the
lender does not dispose of the collateral within 14 months,
the lender shall be liable to repay to the State interest on
the State Guarantee equal to the same rate that the lender
charges on the State Guarantee, provided that the Authority
shall have the authority to extend the 14-month period for a
lender in the case of bankruptcy or extenuating
circumstances. The Fund shall be reimbursed for any amounts
paid under this Section, Section 830-45 or Section 830-50
upon liquidation of the collateral. The Authority, by
resolution of the Board, may borrow sums from the Fund and
provide for repayment as soon as may be practical upon
receipt of payments of principal and interest by a borrower
on State Guarantee Loans under this Section, Section 830-45
or Section 830-50. Money may be borrowed from the Fund by the
Authority for the sole purpose of paying certain interest
costs for borrowers associated with selling a loan subject to
a State Guarantee under this Section, Section 830-45 or
Section 830-50 in a secondary market as may be deemed
reasonable and necessary by the Authority.
(d) Notwithstanding the provisions of this Section 830-35
with respect to the farmers, agribusinesses, and lenders who
may obtain State Guarantees, the Authority may promulgate
rules establishing the eligibility of farmers,
agribusinesses, and lenders to participate in the State
Guarantee program and the terms, standards, and procedures
that will apply, when the Authority finds that emergency
conditions in Illinois agriculture have created the need for
State Guarantees pursuant to terms, standards, and procedures
other than those specified in this Section.
Section 830-40. Cooperative agreement with the University
of Illinois.
(a) The Authority may enter into a cooperative agreement
with the University of Illinois whereby the University's
College of Agriculture, or a department thereof, shall assess
and evaluate the need for additional, and the performance of
existing, State credit and finance programs administered by
the Authority for farmers and agribusinesses. Pursuant to the
cooperative agreement, the Authority may request from the
University an evaluation of financial positions and lending
risks of existing farm operations and existing and developing
agricultural industries, an assessment and evaluation of the
design, operation and performance of existing and proposed
credit programs, an assessment of potential for development
of agricultural industry, an assessment of the performance of
credit markets and development of improved State credit
instruments and programs, and any other information deemed
necessary by the Authority to carry forth its credit and
finance programs.
(b) A cooperative agreement entered into by the Authority
and the University may provide for payment for services
rendered by the University pursuant to the cooperative
agreement from interest earnings remaining in the Illinois
Agricultural Loan Guarantee Fund, as provided for in Section
830-30 of this Act, and the Illinois Farmer and Agribusiness
Loan Guarantee Fund, as provided for in Section 830-40 of
this Act.
Section 830-45. Young Farmer Loan Guarantee Program.
(a) The Authority is authorized to issue State Guarantees
to lenders for loans to finance or refinance debts of young
farmers. For the purposes of this Section, a young farmer is
a resident of Illinois who is at least 18 years of age and
who is a principal operator of a farm or land, who derives at
least 50% of annual gross income from farming, whose net
worth is not less than $10,000 and whose debt to asset ratio
is not less than 40%. For the purposes of this Section, debt
to asset ratio means current outstanding liabilities,
including any debt to be financed or refinanced under this
Section 830-45, divided by current outstanding assets. The
Authority shall establish the maximum permissible debt to
asset ratio based on criteria established by the Authority.
Lenders shall apply for the State Guarantees on forms
provided by the Authority and certify that the application
and any other documents submitted are true and correct. The
lender or borrower, or both in combination, shall pay an
administrative fee as determined by the Authority. The
applicant shall be responsible for paying any fee or charge
involved in recording mortgages, releases, financing
statements, insurance for secondary market issues, and any
other similar fee or charge that the Authority may require.
The application shall at a minimum contain the young farmer's
name, address, present credit and financial information,
including cash flow statements, financial statements, balance
sheets, and any other information pertinent to the
application, and the collateral to be used to secure the
State Guarantee. In addition, the borrower must certify to
the Authority that, at the time the State Guarantee is
provided, the borrower will not be delinquent in the
repayment of any debt. The lender must agree to charge a
fixed or adjustable interest rate that the Authority
determines to be below the market rate of interest generally
available to the borrower. If both the lender and applicant
agree, the interest rate on the State guaranteed loan can be
converted to a fixed interest rate at any time during the
term of the loan. State Guarantees provided under this
Section (i) shall not exceed $500,000 per young farmer, (ii)
shall be set up on a payment schedule not to exceed 30 years,
but shall be no longer than 15 years in duration, and (iii)
shall be subject to an annual review and renewal by the
lender and the Authority. A young farmer may use this program
more than once provided the aggregate principal amount of
State Guarantees under this Section to that young farmer does
not exceed $500,000. No State Guarantee shall be revoked by
the Authority without a 90-day notice, in writing, to all
parties.
(b) The Authority shall provide or renew a State
Guarantee to a lender if:
(i) The lender pays a fee equal to 25 basis points
on the loan to the Authority on an annual basis.
(ii) The application provides collateral acceptable
to the Authority that is at least equal to the State
Guarantee.
(iii) The lender assumes all responsibility and
costs for pursuing legal action on collecting any loan
that is delinquent or in default.
(iv) The lender is at risk for the first 15% of the
outstanding principal of the note for which the State
Guarantee is provided.
(c) The Illinois Farmer and Agribusiness Loan Guarantee
Fund may be used to secure State Guarantees issued under this
Section as provided in Section 830-35.
(d) Notwithstanding the provisions of this Section 830-45
with respect to the young farmers and lenders who may obtain
State Guarantees, the Authority may promulgate rules
establishing the eligibility of young farmers and lenders to
participate in the State Guarantee program and the terms,
standards, and procedures that will apply, when the Authority
finds that emergency conditions in Illinois agriculture have
created the need for State Guarantees pursuant to terms,
standards, and procedures other than those specified in this
Section.
Section 830-50. Specialized Livestock Guarantee Program.
(a) The Authority is authorized to issue State Guarantees
to lenders for loans to finance or refinance debts for
specialized livestock operations that are or will be located
in Illinois. For purposes of this Section, a "specialized
livestock operation" includes, but is not limited to, dairy,
beef, and swine enterprises.
(b) Lenders shall apply for the State Guarantees on forms
provided by the Authority and certify that the application
and any other documents submitted are true and correct. The
lender or borrower, or both in combination, shall pay an
administrative fee as determined by the Authority. The
applicant shall be responsible for paying any fee or charge
involved in recording mortgages, releases, financing
statements, insurance for secondary market issues, and any
other similar fee or charge that the Authority may require.
The application shall, at a minimum, contain the farmer's
name, address, present credit and financial information,
including cash flow statements, financial statements, balance
sheets, and any other information pertinent to the
application, and the collateral to be used to secure the
State Guarantee. In addition, the borrower must certify to
the Authority that, at the time the State Guarantee is
provided, the borrower will not be delinquent in the
repayment of any debt. The lender must agree to charge a
fixed or adjustable interest rate that the Authority
determines to be below the market rate of interest generally
available to the borrower. If both the lender and applicant
agree, the interest rate on the State guaranteed loan can be
converted to a fixed interest rate at any time during the
term of the loan.
(c) State Guarantees provided under this Section (i)
shall not exceed $1,000,000 per applicant, (ii) shall be no
longer than 15 years in duration, and (iii) shall be subject
to an annual review and renewal by the lender and the
Authority. An applicant may use this program more than once,
provided that the aggregate principal amount of State
Guarantees under this Section to that applicant does not
exceed $1,000,000. A State Guarantee shall not be revoked by
the Authority without a 90-day notice, in writing, to all
parties.
(d) The Authority shall provide or renew a State
Guarantee to a lender if: (i) The lender pays a fee equal to
25 basis points on the loan to the Authority on an annual
basis. (ii) The application provides collateral acceptable to
the Authority that is at least equal to the State Guarantee.
(iii) The lender assumes all responsibility and costs for
pursuing legal action on collecting any loan that is
delinquent or in default. (iv) The lender is at risk for the
first 15% of the outstanding principal of the note for which
the State Guarantee is provided.
(e) The Illinois Farmer and Agribusiness Loan Guarantee
Fund may be used to secure State Guarantees issued under this
Section as provided in Section 830-35.
(f) Notwithstanding the provisions of this Section 830-50
with respect to the specialized livestock operations and
lenders who may obtain State Guarantees, the Authority may
promulgate rules establishing the eligibility of specialized
livestock operations and lenders to participate in the State
Guarantee program and the terms, standards, and procedures
that will apply, when the Authority finds that emergency
conditions in Illinois agriculture have created the need for
State Guarantees pursuant to terms, standards, and procedures
other than those specified in this Section.
ARTICLE 840
HEALTH FACILITIES DEVELOPMENT
Section 840-5. The Authority shall have the following
powers:
(a) To fix and revise from time to time and charge and
collect rates, rents, fees and charges for the use of and for
the services furnished or to be furnished by a project or
other health facilities owned, financed or refinanced by the
Authority or any portion thereof and to contract with any
person, partnership, association or corporation or other
body, public or private, in respect thereto; to coordinate
its policies and procedures and cooperate with recognized
health facility rate setting mechanisms which may now or
hereafter be established.
(b) To establish rules and regulations for the use of a
project or other health facilities owned, financed or
refinanced by the Authority or any portion thereof and to
designate a participating health institution as its agent to
establish rules and regulations for the use of a project or
other health facilities owned by the Authority undertaken for
that participating health institution.
(c) To establish or contract with others to carry out on
its behalf a health facility project cost estimating service
and to make this service available on all projects to provide
expert cost estimates and guidance to the participating
health institution and to the Authority. In order to
implement this service and, through it, to contribute to cost
containment, the Authority shall have the power to require
such reasonable reports and documents from health facility
projects as may be required for this service and for the
development of cost reports and guidelines. The Authority may
appoint a Technical Committee on Health Facility Project
Costs and Cost Containment.
(d) To make mortgage or other secured or unsecured loans
to or for the benefit of any participating health institution
for the cost of a project in accordance with an agreement
between the Authority and the participating health
institution; provided that no such loan shall exceed the
total cost of the project as determined by the participating
health institution and approved by the Authority; provided
further that such loans may be made to any entity affiliated
with a participating health institution if the proceeds of
such loan are made available to or applied for the benefit of
such participating health institution.
(e) To make mortgage or other secured or unsecured loans
to or for the benefit of a participating health institution
in accordance with an agreement between the Authority and the
participating health institution to refund outstanding
obligations, loans, indebtedness or advances issued, made,
given or incurred by such participating health institution
for the cost of a project; including the function to issue
bonds and make loans to or for the benefit of a participating
health institution to refinance indebtedness incurred by such
participating health institution in projects undertaken and
completed or for other health facilities acquired prior to or
after the enactment of this Act when the Authority finds that
such refinancing is in the public interest, and either
alleviates a financial hardship of such participating health
institution, or is in connection with other financing by the
Authority for such participating health institution or may be
expected to result in a lessened cost of patient care and a
saving to third parties, including government, and to others
who must pay for care, or any combination thereof; provided
further that such loans may be made to any entity affiliated
with a participating health institution if the proceeds of
such loan are made available to or applied for the benefit of
such participating health institution.
(f) To mortgage all or any portion of a project or other
health facilities and the property on which any such project
or other health facilities are located whether owned or
thereafter acquired, and to assign or pledge mortgages, deeds
of trust, indentures of mortgage or trust or similar
instruments, notes, and other securities of participating
health institutions to which or for the benefit of which the
Authority has made loans or of entities affiliated with such
institutions and the revenues therefrom, including payments
or income from any thereof owned or held by the Authority,
for the benefit of the holders of bonds issued to finance
such project or health facilities or issued to refund or
refinance outstanding obligations, loans, indebtedness or
advances of participating health institutions as permitted by
this Act.
(g) To lease to a participating health institution the
project being financed or refinanced or other health
facilities conveyed to the Authority in connection with such
financing or refinancing, upon such terms and conditions as
the Authority shall deem proper, and to charge and collect
rents therefor and to terminate any such lease upon the
failure of the lessee to comply with any of the obligations
thereof; and to include in any such lease, if desired,
provisions that the lessee thereof shall have options to
renew the lease for such period or periods and at such rent
as shall be determined by the Authority or to purchase any or
all of the health facilities or that upon payment of all of
the indebtedness incurred by the Authority for the financing
of such project or health facilities or for refunding
outstanding obligations, loans, indebtedness or advances of a
participating health institution, then the Authority may
convey any or all of the project or such other health
facilities to the lessee or lessees thereof with or without
consideration.
(h) To make studies of needed health facilities that
could not sustain a loan were it made under this Act and to
recommend remedial action to the General Assembly; to do the
same with regard to any laws or regulations that prevent
health facilities from benefiting from this Act.
(i) To assist the Department of Commerce and Economic
Opportunity to establish and implement a program to assist
health facilities to identify and arrange financing for
energy conservation projects in buildings and facilities
owned or leased by health facilities.
(j) To assist the Department of Human Services in
establishing a low interest loan program to help child care
centers and family day care homes serving children of low
income families under Section 22.4 of the Children and Family
Services Act.
Section 840-10. By means of this Act it is the intent of
the General Assembly to provide a measure of assistance and
alternative methods of financing to participating health
institutions to aid them in providing needed health
facilities that will assure admission and care of high
quality to all who need it and in dealing with the cash
requirements of such facilities, whether resulting from
capital expenditures, operating expenditures, delays in the
receipt of payments for services or otherwise.
Section 840-15. The Authority is authorized and empowered
to acquire, directly or by and through a participating health
institution as its agent, by purchase solely from funds
provided under the authority of this Act, or by gift or
legacy, such lands, structures, property, real or personal,
rights, rights-of-way, franchises, easements and other
interests in lands, including lands lying under water and
riparian rights, which are located within the State as it may
deem necessary or convenient for the construction or
operation of a project, upon such terms and at such prices as
may be considered by it to be reasonable and can be agreed
upon between it and the owner thereof, and to take title
thereto in the name of the Authority or in the name of a
participating health institution as its agent.
Section 840-20. It is the intent and purpose of this Act
that the exercise by the Authority of the powers granted to
it shall be in all respects for the benefit of the people of
this State to assist them to provide needed health facilities
of the number, size, type, distribution, and operation that
will assure admission and care of high quality to all who
need it. To this end, the Authority is charged with the
responsibility to identify and study all projects which are
determined by health planning agencies to be needed but which
could not sustain a loan were such to be made to it under
this Act. The Authority shall, following such study,
formulate and recommend to the General Assembly, such
amendments to this and other Acts, and such other specific
measures as grants, loan guarantees, interest subsidies or
other actions as may be provided for by the State which
actions would render the construction and operation of such
needed health facility feasible and in the public interest.
Further, the Authority is charged with responsibility to
identify and study any laws or regulations which it finds
handicaps or bars a needed health facility from participating
in the benefits of this Act and to recommend to the General
Assembly such actions as will remedy such situation.
Section 840-25. The Authority shall fix, revise, charge
and collect rents for the use of each health facility owned
by the Authority and contract with any person, partnership,
association or corporation, or other body, public or private,
in respect thereof. Each lease entered into by the Authority
with a participating health institution and each agreement,
note, mortgage or other instrument evidencing the obligations
of a participating health institution to the Authority shall
provide that the rents or principal, interest and other
charges payable by or for the benefit of the participating
health institution or the process of accounts receivable
purchased by the Authority from the participating health
institution shall be sufficient at all times, (a) to pay its
share of the administrative costs and expenses of the
Authority, (b) to pay the cost of maintaining, repairing and
operating the project and other related health facilities and
each and every portion thereof, (c) to pay the principal of,
the premium, if any, and the interest on outstanding bonds of
the Authority issued in respect of such project as the same
shall become due and payable, and (d) to create and maintain
reserves which may but need not be required or provided for
in the bond resolution relating to such bonds of the
Authority. The Authority shall pledge the revenues derived
and to be derived from a project or other related health
facilities or from a participating health institution or an
affiliate thereof for the purposes specified in (a), (b), (c)
and (d) of the preceding sentence and additional bonds may be
issued which may rank on a parity with other bonds relating
to the project to the extent and on the terms and conditions
provided in the bond resolution. Such pledge shall be valid
and binding from the time when the pledge is made; the
revenues so pledged by the Authority shall immediately be
subject to the lien of such pledge without any physical
delivery thereof or further act and the lien of any such
pledge shall be valid and binding as against all parties
having claims of any kind in tort, contract or otherwise
against the Authority, irrespective of whether such parties
have notice thereof. Neither the bond resolution nor any
financing statement, continuation statement or other
instrument by which a pledge is created or by which the
Authority's interest in revenues is assigned need be filed or
recorded in any public records in order to perfect the lien
thereof as against third parties except that a copy of the
bond resolution shall be filed in the records of the
Authority and with the Secretary of State.
Section 840-30. It is intended that all private health
facilities in this State be enabled to benefit from and
participate in the provisions of this Act. To this end, all
private health facilities operating, or authorized to be
operated, under any statute of this State are authorized and
empowered to undertake projects, as defined in this Act, and
to utilize the financing sources and methods of repayment
provided by this Act, the provisions of any other laws to the
contrary notwithstanding. Notwithstanding the provisions of
any other law to the contrary, the State of Illinois and any
political subdivision, agency, instrumentality, district or
municipality thereof owning or operating any health facility
is hereby authorized to take all actions necessary or
appropriate and to execute and deliver any and all evidences
of indebtedness and agreements, including loan agreements,
leases and agreements providing for credit enhancement, as
may be necessary to permit such publicly owned health
facility to avail itself of the provisions of this Act. Any
evidence of indebtedness or agreement entered into by the
State or any political subdivision, agency, instrumentality,
district or municipality thereof pursuant to this Act may
provide for the payment of interest at such rate or rates as
shall be determined by the issuer thereof or obligor
thereunder and may be issued or entered into without
referendum approval; provided, that this Act shall not be
deemed to be independent authority for levy of any taxes to
pay an obligation owing from the State or any political
subdivision, agency, instrumentality, district or
municipality thereof and arising hereunder or incurred in
connection with a financing pursuant hereto.
ARTICLE 845
AUTHORITY DEBTS, CONTRACTS AND REPORTS
Section 845-5. The Authority may not have outstanding at
any one time bonds for any of its corporate purposes in an
aggregate principal amount exceeding $23,000,000,000,
excluding bonds issued to refund the bonds of the Authority
or bonds of the Predecessor Authorities.
Section 845-10. The Authority may issue a single bond
issue pursuant to this Act for a group of industrial
projects, a group of corporations or a group of business
entities, a group of units of local government or other
borrowers or any combination thereof. A bond issue for
multiple projects as provided in this Section shall be
subject to all requirements for bond issues as established by
this Act.
Section 845-15. The Authority may maintain an office or
branch office anywhere in the State, and may utilize, without
the payment of rent, any office facilities which the State
may conveniently make available to it.
Section 845-20. The Authority shall not have power to
levy taxes for any purpose whatsoever.
Section 845-25. The Authority shall not incur any
obligations for salaries, office or other administrative
expenses prior to the making of appropriations to meet such
expenses. Interest earned from investments of any funds of
the Authority and repayments of principal of such investments
shall be available for appropriation by the Board for the
corporate purposes of the Authority.
Section 845-30. The State and all counties, cities,
villages, incorporated towns and other municipal
corporations, political subdivisions and public bodies, and
public officers of any thereof, all banks, bankers, trust
companies, savings banks and institutions, building and loan
associations, savings and loan associations, investment
companies and other persons carrying on a banking business,
all insurance companies, insurance associations and other
persons carrying on an insurance business and all executors,
administrators, guardians, trustees and other fiduciaries may
legally invest any sinking funds, moneys or other funds
belonging to them or within their control in any bonds or
evidences of indebtedness issued pursuant to this Act or
issued by the Predecessor Authorities, it being the purpose
of this Section to authorize the investment in such bonds or
evidences of indebtedness of all sinking, insurance,
retirement, compensation, pension and trust funds, whether
owned or controlled by private or public persons or officers;
provided, however, that nothing contained in this Section may
be construed as relieving any person from any duty of
exercising reasonable care in selecting securities for
purchase or investment.
Section 845-35. Under no circumstances shall any bonds or
other evidences of indebtedness issued by the Authority or
the Predecessor Authorities under this Act or under any other
law be or become an indebtedness or obligation of the State
of Illinois, within the purview of any constitutional
limitation or provision, and it shall be plainly stated on
the face of each bond or other evidence of indebtedness that
it does not constitute such an indebtedness or obligation but
is payable solely from the revenues or income of the
Authority.
Section 845-40. The Authority shall appoint a secretary
and treasurer, who may, but need not, be a member or members
of the Authority to hold office during the pleasure of the
Authority. Before entering upon the duties of the respective
offices such person or persons shall take and subscribe to
the constitutional oath of office, and the treasurer shall
execute a bond with corporate sureties to be approved by the
Authority. The bond shall be payable to the Authority in
whatever penal sum may be directed by the Authority
conditioned upon the faithful performance of the duties of
the office and the payment of all money received by him
according to law and the orders of the Authority. The
Authority may, at any time, require a new bond from the
treasurer in such penal sum as may then be determined by the
Authority. The obligation of the sureties shall not extend to
any loss sustained by the insolvency, failure or closing of
any savings and loan association or national or state bank
wherein the treasurer has deposited funds if the bank or
savings and loan association has been approved by the
Authority as a depository for these funds. The oaths of
office and the treasurer's bond shall be filed in the
principal office of the Authority. All funds of the
Authority, including without limitation, grants or loans from
the federal government, the State or any agency or
instrumentality thereof, fees, service charges, interest or
other investment earnings on its funds, payments of principal
of and interest on loans of its funds and revenue from any
other source, except funds the application of which is
otherwise specifically provided for by appropriation,
resolution, grant agreement, lease agreement, loan agreement,
indenture, mortgage or trust agreement or other agreement,
may be held by the Authority in its treasury and be generally
available for expenditure by the Authority for any of the
purposes authorized by this Act. In addition to investments
authorized by Section 2 of the Public Funds Investment Act,
funds of the Authority may be invested in (a) obligations
issued by any State, unit of local government or school
district which obligations are rated at the time of purchase
by a national rating service within the two highest rating
classifications without regard to any rating refinement or
gradation by numerical or other modifier, or (b) equity
securities of an investment company registered under the
Investment Company Act of 1940 whose sole assets, other than
cash and other temporary investments, are obligations which
are eligible investments for the Authority, provided that not
more than 20% of the assets of the investment company may
consist of unrated obligations of the type described in
clause (a) which the Board of Directors of the investment
company has determined to be of comparable quality to rated
obligations described in clause (a). Funds appropriated by
the General Assembly to the Authority shall be held in the
State treasury unless this Act or the Act making the
appropriation specifically states that the monies are to be
held in or appropriated to the Authority's treasury. Such
funds as are authorized to be held in the Authority's
treasury and deposited in any bank or savings and loan
association and placed in the name of the Authority shall be
withdrawn or paid out only by check or draft upon the bank or
savings and loan association, signed by the treasurer and
countersigned by the Chairperson of the Authority. The
Authority may designate any of its members or any officer or
employee of the Authority to affix the signature of the
Chairperson and another to affix the signature of the
treasurer to any check or draft for payment of salaries or
wages and for payment of any other obligations of not more
than $2,500. In case any officer whose signature appears upon
any check or draft, issued pursuant to this Act, ceases to
hold his office before the delivery thereof to the payee, his
signature nevertheless shall be valid and sufficient for all
purposes with the same effect as if he had remained in office
until delivery thereof. No bank or savings and loan
association shall receive public funds as permitted by this
Section, unless it has complied with the requirements
established pursuant to Section 6 of the Public Funds
Investment Act.
Section 845-45. (a) No member, officer, agent, or
employee of the Authority shall, in his or her own name or in
the name of a nominee, be an officer or director or hold an
ownership interest of more than 7 1/2% in any person,
association, trust, corporation, partnership, or other entity
that is, in its own name or in the name of a nominee, a party
to a contract or agreement upon which the member, officer,
agent, or employee may be called upon to act or vote.
(b) With respect to any direct or any indirect interest,
other than an interest prohibited in subsection (a), in a
contract or agreement upon which the member, officer, agent,
or employee may be called upon to act or vote, a member,
officer, agent, or employee of the Authority shall disclose
the interest to the secretary of the Authority before the
taking of final action by the Authority concerning the
contract or agreement and shall so disclose the nature and
extent of the interest and his or her acquisition of it, and
those disclosures shall be publicly acknowledged by the
Authority and entered upon the minutes of the Authority. If a
member, officer, agent, or employee of the Authority holds
such an interest, then he or she shall refrain from any
further official involvement in regard to the contract or
agreement, from voting on any matter pertaining to the
contract or agreement, and from communicating with other
members of the Authority or its officers, agents, and
employees concerning the contract or agreement.
Notwithstanding any other provision of law, any contract or
agreement entered into in conformity with this subsection (b)
shall not be void or invalid by reason of the interest
described in this subsection, nor shall any person so
disclosing the interest and refraining from further official
involvement as provided in this subsection be guilty of an
offense, be removed from office, or be subject to any other
penalty on account of that interest.
(c) Any contract or agreement made in violation of
paragraphs (a) or (b) of this Section shall be null and void
and give rise to no action against the Authority.
Section 845-50. The fiscal year for the Authority shall
commence on the first of July. As soon after the end of each
fiscal year as may be expedient, the Authority shall cause to
be prepared and printed a complete report and financial
statement of its operations and of its assets and
liabilities. A reasonably sufficient number of copies of such
report shall be printed for distribution to persons
interested, upon request, and a copy thereof shall be filed
with the Governor, the Secretary of State, the State
Comptroller, the Secretary of the Senate and the Chief Clerk
of the House of Representatives.
Section 845-55. For the purposes of the Illinois
Securities Law of 1953, bonds issued by the Authority shall
be deemed to be securities issued by a public instrumentality
of the State of Illinois.
Section 845-60. Tax Exemption. The tax exemptions of
outstanding bonds issued by the Predecessor Authorities
pursuant to sections of the enabling acts of the Predecessor
Authorities applicable to those bonds when issued shall
remain valid and continue to be recognized by the State until
final payment of those bonds, notwithstanding the repeal of
the enabling acts of the Predecessor Authorities.
Section 845-65. If any provision of this Act is held
invalid, such provision shall be deemed to be excised and the
invalidity thereof shall not affect any of the other
provisions of this Act. If the application of any provision
of this Act to any person or circumstance is held invalid, it
shall not affect the application of such provision to such
persons or circumstances other than those as to which it is
held invalid.
Section 845-70. Tax avoidance. Notwithstanding any other
provision of law, the Authority shall not enter into any
agreement providing for the purchase and lease of tangible
personal property that results in the avoidance of taxation
under the Retailers' Occupation Tax Act, the Use Tax Act, the
Service Use Tax Act, or the Service Occupation Tax Act,
without the prior written consent of the Governor.
Section 845-75. Transfer of functions from previously
existing authorities to the Illinois Finance Authority. The
Illinois Finance Authority created by the Illinois Finance
Authority Act shall succeed to, assume and exercise all
rights, powers, duties and responsibilities formerly
exercised by the following Authorities and entities (herein
called the "Predecessor Authorities") prior to the abolition
of the Predecessor Authorities by this Act:
The Illinois Development Finance Authority
The Illinois Farm Development Authority
The Illinois Health Facilities Authority
The Illinois Educational Facilities Authority
The Illinois Community Development Finance Corporation
The Illinois Rural Bond Bank
The Research Park Authority
All books, records, papers, documents and pending
business in any way pertaining to the Predecessor Authorities
are transferred to the Illinois Finance Authority, but any
rights or obligations of any person under any contract made
by, or under any rules, regulations, uniform standards,
criteria and guidelines established or approved by, such
Predecessor Authorities shall be unaffected thereby. All
bonds, notes or other evidences of indebtedness outstanding
on the effective date of this Act shall be unaffected by the
transfer of functions to the Illinois Finance Authority. No
rule, regulation, standard, criteria or guideline
promulgated, established or approved by the Predecessor
Authorities pursuant to an exercise of any right, power, duty
or responsibility assumed by and transferred to the Illinois
Finance Authority shall be affected by this Act, and all such
rules, regulations, standards, criteria and guidelines shall
become those of the Illinois Finance Authority until such
time as they are amended or repealed by the Illinois Finance
Authority.
Section 845-80. Any reference in statute, in rule, or
otherwise to the following entities is a reference to the
Illinois Finance Authority created by this Act:
The Illinois Development Finance Authority.
The Illinois Farm Development Authority.
The Illinois Health Facilities Authority.
The Illinois Research Park Authority.
The Illinois Rural Bond Bank.
The Illinois Educational Facilities Authority.
The Illinois Community Development Finance Corporation.
Section 845-85. Any reference in statute, in rule, or
otherwise to the following Acts is a reference to this Act:
The Illinois Development Finance Authority Act.
The Illinois Farm Development Act.
The Illinois Health Facilities Authority Act.
The Illinois Research Park Authority Act.
The Rural Bond Bank Act.
The Illinois Educational Facilities Authority Act.
The Illinois Community Development Finance Corporation
Act.
ARTICLE 890
AMENDATORY PROVISIONS
Section 890-1. The Statute on Statutes is amended by
changing Section 8 as follows:
(5 ILCS 70/8) (from Ch. 1, par. 1107)
Sec. 8. Omnibus Bond Acts.
(a) A citation to the Omnibus Bond Acts is a citation to
all of the following Acts, collectively, as amended from time
to time: the Bond Authorization Act, the Registered Bond
Act, the Municipal Bond Reform Act, the Local Government Debt
Reform Act, subsection (a) of Section 1-7 of the Property Tax
Extension Limitation Act, subsection (a) of Section 18-190 of
the Property Tax Code, the Uniform Facsimile Signature of
Public Officials Act, the Local Government Bond Validity Act,
the Illinois Development Finance Authority Act, the Public
Funds Investment Act, the Local Government Credit Enhancement
Act, the Local Government Defeasance of Debt Law, the
Intergovernmental Cooperation Act, the Local Government
Financial Planning and Supervision Act, the Special
Assessment Supplemental Bond and Procedure Act, Section 12-5
of the Election Code, and any similar Act granting additional
omnibus bond powers to governmental entities generally,
whether enacted before, on, or after the effective date of
this amendatory Act of 1989.
(b) The General Assembly recognizes that the
proliferation of governmental entities has resulted in the
enactment of hundreds of statutory provisions relating to the
borrowing and other powers of governmental entities. The
General Assembly addresses and has addressed problems common
to all such governmental entities so that they have equal
access to the municipal bond market. It has been, and will
continue to be, the intention of the General Assembly to
enact legislation applicable to governmental entities in an
omnibus fashion, as has been done in the provisions of the
Omnibus Bond Acts.
(c) It is and always has been the intention of the
General Assembly that the Omnibus Bond Acts are and always
have been supplementary grants of power, cumulative in nature
and in addition to any power or authority granted in any
other laws of the State. The Omnibus Bond Acts are
supplementary grants of power when applied in connection with
any similar grant of power or limitation contained in any
other law of the State, whether or not the other law is
enacted or amended after an Omnibus Bond Act or appears to be
more restrictive than an Omnibus Bond Act, unless the General
Assembly expressly declares in such other law that a
specifically named Omnibus Bond Act does not apply.
(d) All instruments providing for the payment of money
executed by or on behalf of any governmental entity organized
by or under the laws of this State, including without
limitation the State, to carry out a public governmental or
proprietary function, acting through its corporate
authorities, or which any governmental entity has assumed or
agreed to pay, which were:
(1) issued or authorized to be issued by
proceedings adopted by such corporate authorities before
the effective date of this amendatory Act of 1989;
(2) issued or authorized to be issued in accordance
with the procedures set forth in or pursuant to any
authorization contained in any of the Omnibus Bond Acts;
and
(3) issued or authorized to be issued for any
purpose authorized by the laws of this State, are valid
and legally binding obligations of the governmental
entity issuing such instruments, payable in accordance
with their terms.
(Source: P.A. 90-480, eff. 8-17-97; 91-57, eff. 6-30-99.)
Section 890-2. The Department of Commerce and Community
Affairs Law of the Civil Administrative Code of Illinois is
amended by changing Sections 605-675, 605-915, 605-920, and
605-925 as follows:
(20 ILCS 605/605-675) (was 20 ILCS 605/46.66)
Sec. 605-675. Exporter award program. The Department
shall establish and operate, in cooperation with the
Department of Agriculture and the Illinois Development
Finance Authority, an annual awards program to recognize
Illinois-based exporters. In developing criteria for the
awards, the Department shall give consideration to the
exporting efforts of small and medium sized businesses,
first-time exporters, and other appropriate categories.
(Source: P.A. 91-239, eff. 1-1-00.)
(20 ILCS 605/605-915) (was 20 ILCS 605/46.45)
Sec. 605-915. Assisting local governments to achieve
lower borrowing costs. To cooperate with the Illinois
Development Finance Authority in assisting local governments
to achieve overall lower borrowing costs and more favorable
terms under Sections 7.50 through 7.61 of the Illinois
Development Finance Authority Act, including using the
Department's federally funded Community Development
Assistance Program for those purposes.
(Source: P.A. 91-239, eff. 1-1-00.)
(20 ILCS 605/605-920) (was 20 ILCS 605/46.47)
Sec. 605-920. Assisting local governments; debt
management, capital facility planning, infrastructure. To
provide, in cooperation with the Illinois Development Finance
Authority, technical assistance to local governments with
respect to debt management and bond issuance, capital
facility planning, infrastructure financing, infrastructure
maintenance, fiscal management, and other infrastructure
areas.
(Source: P.A. 91-239, eff. 1-1-00.)
(20 ILCS 605/605-925) (was 20 ILCS 605/46.48)
Sec. 605-925. Helping local governments reduce
infrastructure costs. To develop and recommend to the
Governor and the General Assembly, in cooperation with the
Illinois Development Finance Authority and local governments,
methods and techniques that can be used to help local
governments reduce their public infrastructure costs,
including strengthened local financial management, user fees,
and other appropriate options.
(Source: P.A. 91-239, eff. 1-1-00.)
Section 890-3. The Illinois Enterprise Zone Act is
amended by changing Section 7 as follows:
(20 ILCS 655/7) (from Ch. 67 1/2, par. 611)
Sec. 7. State Incentives Regarding Public Services and
Physical Infrastructure.
(a) This Act does not restrict tax incentive financing
pursuant to the "Tax Increment Allocation Redevelopment Act".
(b) Industrial development bonds. Priority in the use
of industrial development bonds issued by the Illinois
Development Finance Authority shall be given to businesses
located in an Enterprise Zone.
(c) Deposit of State funds by the State Treasurer. The
State Treasurer is authorized and encouraged to place
deposits of State funds with financial institutions doing
business in an Enterprise Zone.
(Source: P.A. 84-1417.)
Section 890-4. The Energy Conservation and Coal
Development Act is amended by changing Section 15 as follows:
(20 ILCS 1105/15) (from Ch. 96 1/2, par. 7415)
Sec. 15. (a) The Department, in cooperation with the
Illinois Development Finance Authority, shall establish a
program to assist units of local government, as defined in
the Illinois Development Finance Authority Act, to identify
and arrange financing for energy conservation projects for
buildings and facilities owned or leased by those units of
local government.
(b) The Department, in cooperation with the Illinois
Health Facilities Authority, shall establish a program to
assist health facilities to identify and arrange financing
for energy conservation projects for buildings and facilities
owned or leased by those health facilities.
(Source: P.A. 87-852; 88-45.)
Section 890-5. The Department of Public Health Powers
and Duties Law of the Civil Administrative Code of Illinois
is amended by changing Section 2310-200 as follows:
(20 ILCS 2310/2310-200) (was 20 ILCS 2310/55.53)
Sec. 2310-200. Programs to expand access to primary
care.
(a) The Department shall establish a program to expand
access to comprehensive primary care in medically underserved
communities throughout Illinois. This program may include
the provision of financial support and technical assistance
to eligible community health centers. To be eligible for
those grants, community health centers must meet requirements
comparable to those enumerated in Sections 329 and 330 of the
federal Public Health Service Act. In establishing its
program, the Department shall avoid duplicating resources in
areas already served by community health centers.
(b) The Department may develop financing programs with
the Illinois Development Finance Authority to carry out the
purposes of the Civil Administrative Code of Illinois or any
other Act that the Department is responsible for
administering. The Department may transfer to the Illinois
Development Finance Authority, into an account outside of the
State treasury, any moneys it deems necessary from its
accounts to establish bond reserve or credit enhancement
escrow accounts, or loan or equipment leasing programs. The
disposition of moneys at the conclusion of any such financing
program shall be determined by an interagency agreement.
(Source: P.A. 91-239, eff. 1-1-00.)
Section 890-6. The Asbestos Abatement Finance Act is
amended by changing Sections 2 and 3 as follows:
(20 ILCS 3510/2) (from Ch. 111 1/2, par. 8102)
Sec. 2. Definitions. The following words and terms,
whether or not capitalized, have the following meanings,
unless the context or use clearly requires otherwise:
"Asbestos" means asbestos as defined and used in the
federal Asbestos Hazard Emergency Response Act of 1986, as
now or hereafter amended, including the regulations
promulgated under that Act.
"Asbestos Abatement Project" means asbestos inspection,
planning and response action under and within the meaning of
the federal Asbestos Hazard Emergency Response Act of 1986,
as now or hereafter amended, to abate a health hazard caused
directly or indirectly by the existence of asbestos in any
building or other facility owned, operated, maintained or
occupied in whole or in part by a public corporation or a
private institution.
"Authority" means the Illinois Development Finance
Authority.
"Board" means the Board of the Authority.
"Bond" means any bond, note or other evidence of
indebtedness issued by the Authority under this Act.
"Chairman" means the Chairman of the Authority.
"Cost" as applied to an asbestos abatement project means
the costs incurred or to be incurred by a public corporation
or a private institution in the removal, encapsulation,
enclosure, repair, or maintenance of asbestos in any building
or other facility owned, operated, maintained or occupied in
whole or in part by a public corporation or a private
institution, including all incidental costs such as
engineering, architectural, consulting and legal expenses
incurred in connection with an asbestos abatement project,
plans, specifications, surveys, estimates of costs and
revenues, finance charges, interest before and during
construction of an asbestos abatement project and, for up to
18 months after completion of construction, other expenses
necessary or incident to determining the need, feasibility or
practicability of an asbestos abatement project,
administrative expenses, and such other costs, charges and
expenses as may be necessary or incident to the construction
or financing of any asbestos abatement project. As used in
this Act, "cost" means not only costs of an asbestos
abatement project expected to be incurred in the future, but
costs already incurred and paid by a public corporation or a
private institution so that a public corporation or a private
institution shall be permitted to reimburse itself for those
costs previously incurred and paid.
"Person" means any individual, firm, partnership,
association, or corporation, separately or in any
combination.
"Private institution" means any not-for-profit
organization within the meaning of Section 501(c)(3) of the
Internal Revenue Code of 1986, as now or hereafter amended,
including any private or nonpublic pre-school, day care
center, day or residential educational institution that
provides elementary or secondary education for grades 12 or
under, any private or nonpublic college or university, or any
hospital, health care or long term care institution.
"Private institution security" means any bond, note, loan
agreement, or other evidence of indebtedness which a private
institution is legally authorized to issue or enter into for
the purpose of financing or refinancing the costs of an
asbestos abatement project.
"Public corporation" means any body corporate organized
by or under the laws of this State to carry out a public
governmental or proprietary function, including the State,
any State agency, any school district, park district, city,
village, incorporated town, county, township, drainage or any
other type of district, board, commission, authority,
university, public community college or any combination
(including any combination under Section 10 of Article VII of
the Illinois Constitution or under the Intergovernmental
Cooperation Act of 1973, as now or hereafter amended), acting
through their corporate authorities, and any other unit of
local government within the meaning of Section 1 of Article
VII of the Illinois Constitution.
"Public corporation security" means any bond, note, loan
agreement, or other evidence of indebtedness which a public
corporation is legally authorized to issue or enter into for
the purpose of financing or refinancing the costs of an
asbestos abatement project.
"Secretary" means the Secretary of the Authority.
"State" means the State of Illinois.
"Treasurer" means the Treasurer of the Authority.
(Source: P.A. 86-976.)
(20 ILCS 3510/3) (from Ch. 111 1/2, par. 8103)
Sec. 3. Powers. In addition to the powers set forth
elsewhere in this Act and in The Illinois Development Finance
Authority Act, as now or hereafter amended, the Authority
may:
(a) Adopt an official seal.
(b) Maintain asbestos abatement suboffices at places
within the State as it designates.
(c) Sue and be sued, plead and be impleaded, all in its
own name, and agree to binding arbitration of any dispute to
which it is a party under this Act.
(d) Adopt bylaws, rules, and regulations to carry out
the provisions and purposes of this Act.
(e) Employ, either as regular employees or independent
contractors, consultants, engineers, architects, accountants,
attorneys, financial experts, construction experts,
superintendents, managers, other professional personnel, and
other persons as may be necessary or appropriate in the
judgment of the Authority to achieve the purposes of this
Act, and fix their compensation.
(f) Determine the locations of, develop, establish,
construct, erect, acquire, own, repair, remodel, add to,
extend, improve, equip, operate, regulate, and maintain
facilities to the extent necessary to accomplish the purposes
of this Act.
(g) Acquire, hold, lease, use, encumber, transfer, or
dispose of real and personal property, including the
alteration or demolition of improvements to real estate,
necessary to accomplish the purposes of this Act.
(h) Enter into contracts of any kind in furtherance of
or which are necessary or incidental to the purposes of this
Act or actions of the Authority taken under this Act.
(i) Regulate the use and operation of asbestos abatement
projects developed under the provisions of this Act, except
that asbestos abatement projects undertaken by schools shall
be governed by the Asbestos Abatement Act, the Asbestos
Hazard Emergency Response Act and by the regulations
promulgated by the Department of Public Health pursuant to
those Acts.
(j) Purchase from time to time by negotiated sale, upon
such terms as the Authority shall determine, public
corporation securities issued by one or more public
corporations for the purpose of paying costs of asbestos
abatement projects or private institution securities issued
by one or more private institutions for the purpose of paying
costs of asbestos abatement projects.
(k) Make loans from time to time, upon such terms as the
Authority shall determine, to public corporations and private
institutions for the purpose of paying costs of asbestos
abatement projects.
(l) Issue bonds in one or more series pursuant to one or
more resolutions adopted by the Board for the purpose of
purchasing or acquiring public corporation securities or
private institution securities issued for the purpose of
paying costs of asbestos abatement projects or for the
purpose of making loans to public corporations or private
institutions for the purpose of paying costs of asbestos
abatement projects, providing for the payment of any interest
deemed necessary on such bonds, paying for the costs of
issuance of such bonds, providing for the payment of any
premium on any insurance or the cost of any guarantees,
letters of credit or other credit enhancement facilities, or
providing for the funding of any reserves deemed necessary in
connection with such bonds, and refunding or advance
refunding (one or more times) any such bonds. Such bonds may
bear interest at any rate or rates (whether fixed or
variable, and whether current or deferred), notwithstanding
any other provision of law to the contrary, which rate or
rates may be established by an index or formula which may be
implemented or established by persons appointed or retained
therefor by the Authority, may bear such date or dates, may
be payable at such time or times and at such place or places,
may mature at any time or times not later than 40 years from
the date of issuance, may be sold at competitive or
negotiated sale at such time or times and at such price or
prices, may be secured by such pledges, covenants, reserves,
guarantees, letters of credit or other credit enhancement
facilities, may be issued and secured by such form of trust
agreement between the Authority and a bank or trust company
having the powers of a trust company within or without the
State, may be executed in such manner, may be subject to
redemption prior to maturity, and may be subject to such
other terms and conditions, as are provided by the Authority
in the resolution authorizing the issuance of any such bonds.
(m) Provide for the establishment and funding of any
reserves or other funds or accounts deemed necessary by the
Authority in connection with any bonds issued by the
Authority under this Act, any public corporation securities
or private institution securities purchased or acquired by
the Authority, or any loan made by the Authority to a public
corporation or a private institution, and deposit into such
reserves, funds or accounts the proceeds of any bonds issued
by the Authority or any other funds of the Authority or any
funds of a public corporation or a private institution which
may be applied for such purpose. Such reserves, funds or
accounts may be held by a corporate trustee, which may be any
trust company or bank having the powers of a trust company
located within or outside the State.
(n) Pledge any public corporation security or private
institution security, including any payment thereon, and any
other funds of the Authority which may be applied to such
purpose, as security for any bonds issued by the Authority or
to secure any letter of credit, guarantee or other credit
enhancement facility.
(o) Enter into agreements or other transactions with any
federal, State or local governmental agency in connection
with this Act.
(p) Receive and accept from any federal agency, subject
to the approval of the Governor, grants for or in aid of the
construction of asbestos abatement projects or for research
and development with respect to asbestos abatement projects,
such grants to be held, used and applied only for the
purposes for which such grants were made.
(q) Charge fees to defray the cost of letters of credit,
guarantees or other credit enhancement facilities, trustees,
depositaries, paying agents, bond registrars, escrow agents,
tender agents and other administrative and program expenses;
and otherwise charge such program fees consistent with the
purposes of this Act as the Authority shall from time to time
determine. Any such fees shall be payable in such amounts and
at such times as the Authority shall determine, and the
amount of the fees need not be uniform among the various
series of bonds issued by the Authority or among the issuers
of public corporation securities or private institution
securities purchased or acquired or proposed to be purchased
or acquired by the Authority.
(r) Prescribe application forms, notification forms,
forms of contracts, loan agreements, financing agreements and
security agreements, and such other forms as the Authority
deems necessary or appropriate in connection with this Act.
(s) Purchase or acquire any bonds of the Authority
issued under this Act for cancellation, resale, or
reissuance.
(t) Subject to the provisions of any resolution,
indenture, or other contract with the owners of bonds, sell,
or otherwise transfer or dispose of public corporation
securities or private institution securities acquired under
this Act.
(u) Do any and all things necessary or convenient to
carry out the purposes of, and exercise the powers expressly
given and granted in, this Act, including the adoption of
rules under The Illinois Administrative Procedure Act, as now
or hereafter amended, as are necessary to carry out the
powers and duties conferred by this Act.
(Source: P.A. 86-976.)
Section 890-7. The Illinois Environmental Facilities
Financing Act is amended by changing Sections 3, 4, and 7 as
follows:
(20 ILCS 3515/3) (from Ch. 127, par. 723)
Sec. 3. Definitions. In this Act, unless the context
otherwise clearly requires, the terms used herein shall have
the meanings ascribed to them as follows:
(a) "Bonds" means any bonds, notes, debentures,
temporary, interim or permanent certificates of indebtedness
or other obligations evidencing indebtedness.
(b) "Directing body" means the members of the State
authority.
(c) "Environmental facility" or "facilities" means any
land, interest in land, building, structure, facility,
system, fixture, improvement, appurtenance, machinery,
equipment or any combination thereof, and all real and
personal property deemed necessary therewith, having to do
with or the primary purpose of which is, reducing,
controlling or preventing pollution, or reclaiming surface
mined land. Environmental facilities may be located anywhere
in this State and may include those facilities or processes
used to (i) remove potential pollutants from coal prior to
combustion, (ii) reduce the volume or composition of
hazardous waste by changing or replacing manufacturing
equipment or processes, (iii) recycle hazardous waste, or
(iv) recover resources from hazardous waste. Environmental
facilities may also include (i) solar collectors, solar
storage mechanisms and solar energy systems, as defined in
Section 10-5 of the Property Tax Code; (ii) facilities
designed to collect, store, transfer, or distribute, for
residential, commercial or industrial use, heat energy which
is a by-product of industrial or energy generation processes
and which would otherwise be wasted; (iii) facilities
designed to remove pollutants from emissions that result from
the combustion of coal; and (iv) facilities for the
combustion of coal in a fluidized bed boiler. Environmental
facilities include landfill gas recovery facilities, as
defined in the Illinois Environmental Protection Act.
Environmental facilities do not include any land,
interest in land, buildings, structure, facility, system,
fixture, improvement, appurtenance, machinery, equipment or
any combination thereof, and all real and personal property
deemed necessary therewith, having to do with a hazardous
waste disposal site, except where such land, interest in
land, buildings, structure, facility, system, fixture,
improvement, appurtenance, machinery, equipment, real or
personal property are used for the management or recovery of
gas generated by a hazardous waste disposal site or are used
for recycling, reclamation, tank storage or treatment in
tanks which occurs on the same site as a hazardous waste
disposal site.
(d) "Finance" or "financing" means the issuing of
revenue bonds pursuant to Section 9 of this Act by the State
authority for the purpose of using the proceeds to pay
project costs for an environmental or hazardous waste
treatment facility including one in or to which title at all
times remains in a person other than the State authority, in
which case the bonds of the Authority are secured by a pledge
of one or more notes, debentures, bonds or other obligations,
secured or unsecured, of any person.
(e) "Person" means any individual, partnership,
copartnership, firm, company, corporation (including public
utilities), association, joint stock company, trust, estate,
political subdivision, state agency, or any other legal
entity, or their legal representative, agent or assigns.
(f) "Pollution" means any form of environmental
pollution including, but not limited to, water pollution, air
pollution, land pollution, solid waste pollution, thermal
pollution, radiation contamination, or noise pollution as
determined by the various standards prescribed by this state
or the federal government and including but not limited to,
anything which is considered as pollution or environmental
damage in the Environmental Protection Act, approved June 29,
1970, as now or hereafter amended.
(g) "Project costs" as applied to environmental or
hazardous waste treatment facilities financed under this Act
means and includes the sum total of all reasonable or
necessary costs incidental to the acquisition, construction,
reconstruction, repair, alteration, improvement and extension
of such environmental or hazardous waste treatment facilities
including without limitation the cost of studies and surveys;
plans, specifications, architectural and engineering
services; legal, organization, marketing or other special
services; financing, acquisition, demolition, construction,
equipment and site development of new and rehabilitated
buildings; rehabilitation, reconstruction, repair or
remodeling of existing buildings and all other necessary and
incidental expenses including an initial bond and interest
reserve together with interest on bonds issued to finance
such environmental or hazardous waste treatment facilities to
a date 6 months subsequent to the estimated date of
completion.
(h) "State authority" or "authority" means the Illinois
Development Finance Authority created by the Illinois
Development Finance Authority Act.
(i) "Small business" or "small businesses" means those
commercial and manufacturing entities which at the time of
their application to the authority meet those criteria, as
interpreted and applied by the State authority, for
definition as a "small business" established for the Small
Business Administration and set forth as Section 121.3-10 of
Part 121 of Title 13 of the Code of Federal Regulations as
such Section is in effect on the effective date of this
amendatory Act of 1975.
(j) "New coal-fired electric utility steam generating
plants" and "new coal-fired industrial boilers" means those
plants and boilers on which construction begins after the
effective date of this amendatory Act of 1981.
(k) "Hazardous waste treatment facility" means any land,
interest in land, building, structure, facility, system,
fixture, improvement, appurtenance, machinery, equipment, or
any combination thereof, and all real and personal property
deemed necessary therewith, the primary purpose of which is
to recycle, incinerate, or physically, chemically,
biologically or otherwise treat hazardous wastes, or to
reduce the production of hazardous wastes by changing or
replacing manufacturing equipment or processes, and which
meets the requirements of the Environmental Protection Act
and all regulations adopted thereunder.
(Source: P.A. 88-670, eff. 12-2-94.)
(20 ILCS 3515/4) (from Ch. 127, par. 724)
Sec. 4. Transfer of functions from the Illinois
Development Finance Environmental Facilities Financing
Authority to the Illinois Development Finance Authority. The
Illinois Development Finance Authority created by the
Illinois Development Finance Authority Act shall succeed to,
assume and exercise all rights, powers, duties and
responsibilities formerly exercised by the Illinois
Development Finance Environmental Facilities Financing
Authority prior to the abolition of that Authority by this
amendatory Act of the 93rd General Assembly 1983. All books,
records, papers, documents and pending business in any way
pertaining to the former Illinois Development Finance
Environmental Facilities Financing Authority are transferred
to the Illinois Development Finance Authority, but any rights
or obligations of any person under any contract made by, or
under any rules, regulations, uniform standards, criteria and
guidelines established or approved by such former Illinois
Environmental Facilities Financing Authority shall be
unaffected thereby. All bonds, notes or other evidences of
indebtedness outstanding on the effective date of this
amendatory Act of the 93rd General Assembly 1983 shall be
unaffected by the transfer of functions to the Illinois
Development Finance Authority. No rule, regulation,
standard, criteria or guideline promulgated, established or
approved by the former Illinois Development Finance
Environmental Facilities Financing Authority pursuant to an
exercise of any right, power, duty or responsibility assumed
by and transferred to the Illinois Development Finance
Authority shall be affected by this amendatory Act of the
93rd General Assembly 1983, and all such rules, regulations,
standards, criteria and guidelines shall become those of the
Illinois Development Finance Authority until such time as
they are amended or repealed by the Authority. Any action,
including without limitation, approvals of applications for
bonds and resolutions constituting official action under the
Internal Revenue Code, by the Illinois Environmental
Facilities Financing Authority prior to the September 23,
1983 effective date of Public Act 83-669 shall remain
effective to the same extent as if such action had been taken
by the Authority and shall be deemed to be action taken by
the Authority. The State authority is constituted a public
instrumentality and the exercise by the State authority of
the powers conferred by this Act shall be deemed and held to
be the performance of an essential public function. Sections
7.42 through 7.48 of The Illinois Development Finance
Authority Act shall not apply to the provision of financing
for environmental facilities by the Authority, unless such
financing is provided pursuant to such Sections of such Act.
(Source: P.A. 83-1362.)
(20 ILCS 3515/7) (from Ch. 127, par. 727)
Sec. 7. Powers. In addition to the powers otherwise
authorized by law, for the purposes of this Act, the State
authority shall have the following powers together with all
powers incidental thereto or necessary for the performance
thereof:
(1) to have perpetual succession as a body politic and
corporate;
(2) to adopt bylaws for the regulation of its affairs
and the conduct of its business;
(3) to sue and be sued and to prosecute and defend
actions in the courts;
(4) to have and to use a corporate seal and to alter the
same at pleasure;
(5) to maintain an office at such place or places as it
may designate;
(6) to determine the location, pursuant to the
Environmental Protection Act, and the manner of construction
of any environmental or hazardous waste treatment facility to
be financed under this Act and to acquire, construct,
reconstruct, repair, alter, improve, extend, own, finance,
lease, sell and otherwise dispose of the facility, to enter
into contracts for any and all of such purposes, to designate
a person as its agent to determine the location and manner of
construction of an environmental or hazardous waste treatment
facility undertaken by such person under the provisions of
this Act and as agent of the authority to acquire, construct,
reconstruct, repair, alter, improve, extend, own, lease, sell
and otherwise dispose of the facility, and to enter into
contracts for any and all of such purposes;
(7) to finance and to lease or sell to a person any or
all of the environmental or hazardous waste treatment
facilities upon such terms and conditions as the directing
body considers proper, and to charge and collect rent or
other payments therefor and to terminate any such lease or
sales agreement or financing agreement upon the failure of
the lessee, purchaser or debtor to comply with any of the
obligations thereof; and to include in any such lease or
other agreement, if desired, provisions that the lessee,
purchaser or debtor thereunder shall have options to renew
the term of the lease, sales or other agreement for such
period or periods and at such rent or other consideration as
shall be determined by the directing body or to purchase any
or all of the environmental or hazardous waste treatment
facilities for a nominal amount or otherwise or that at or
prior to the payment of all of the indebtedness incurred by
the authority for the financing of such environmental or
hazardous waste treatment facilities the authority may convey
any or all of the environmental or hazardous waste treatment
facilities to the lessee or purchaser thereof with or without
consideration;
(8) to issue bonds for any of its corporate purposes,
including a bond issuance for the purpose of financing a
group of projects involving environmental facilities, and to
refund those bonds, all as provided for in this Act and
subject to Section 13 of this Act;
(9) generally to fix and revise from time to time and
charge and collect rates, rents, fees and charges for the use
of and services furnished or to be furnished by any
environmental or hazardous waste treatment facility or any
portion thereof and to contract with any person, firm or
corporation or other body public or private in respect
thereof;
(10) to employ consulting engineers, architects,
attorneys, accountants, construction and financial experts,
superintendents, managers and such other employees and agents
as may be necessary in its judgment and to fix their
compensation;
(11) to receive and accept from any public agency loans
or grants for or in aid of the construction of any
environmental facility and any portion thereof, or for
equipping the facility, and to receive and accept grants,
gifts or other contributions from any source;
(12) to refund outstanding obligations incurred by any
person to finance the cost of an environmental or hazardous
waste treatment facility including obligations incurred for
environmental or hazardous waste treatment facilities
undertaken and completed prior to or after the enactment of
this Act when the authority finds that such financing is in
the public interest;
(13) to prohibit the financing of environmental
facilities for new coal-fired electric steam generating
plants and new coal-fired industrial boilers which do not use
Illinois coal as the primary source of fuel;
(14) to set and impose appropriate financial penalties
on any person who receives financing from the State authority
based on a commitment to use Illinois coal as the primary
source of fuel at a new coal-fired electric utility steam
generating plant or new coal-fired industrial boiler and
later uses non-Illinois coal as the primary source of fuel;
(15) to fix, determine, charge and collect any premiums,
fees, charges, costs and expenses, including, without
limitation, any application fees, program fees, commitment
fees, financing charges or publication fees in connection
with its activities under this Act; all expenses of the State
authority incurred in carrying out this Act are payable
solely from funds provided under the authority of this Act
and no liability shall be incurred by any authority beyond
the extent to which moneys are provided under this Act. All
fees and moneys accumulated by the Authority as provided in
this Act or the Illinois Development Finance Authority Act
shall be held outside of the State treasury and in the
custody of the Treasurer of the Authority; and
(16) to do all things necessary and convenient to carry
out the purposes of this Act.
The State authority may not operate any environmental or
hazardous waste treatment facility as a business except for
the purpose of protecting or maintaining such facility as
security for bonds of the State authority. No environmental
or hazardous waste treatment facilities completed prior to
January 1, 1970 may be financed by the State authority under
this Act, but additions and improvements to such
environmental or hazardous waste treatment facilities which
are commenced subsequent to January 1, 1970 may be financed
by the State authority. Any lease, sales agreement or other
financing agreement in connection with an environmental or
hazardous waste treatment facility entered into pursuant to
this Act must be for a term not shorter than the longest
maturity of any bonds issued to finance such environmental or
hazardous waste treatment facility or a portion thereof and
must provide for rentals or other payments adequate to pay
the principal of and interest and premiums, if any, on such
bonds as the same fall due and to create and maintain such
reserves and accounts for depreciation, if any, as the
directing body determines to be necessary.
The Authority shall give priority to providing financing
for the establishment of hazardous waste treatment facilities
necessary to achieve the goals of Section 22.6 of the
Environmental Protection Act.
The Authority shall give special consideration to small
businesses in authorizing the issuance of bonds for the
financing of environmental facilities pursuant to subsection
(c) of Section 2.
The Authority shall make a financial report on all
projects financed under this Section to the General Assembly,
to the Governor, and to the Illinois Economic and Fiscal
Commission by April 1 of each year. Such report shall be a
public record and open for inspection at the offices of the
Authority during normal business hours. The report shall
include: (a) all applications for loans and other financial
assistance presented to the members of the Authority during
such fiscal year, (b) all projects and owners thereof which
have received any form of financial assistance from the
Authority during such year, (c) the nature and amount of all
such assistance, and (d) projected activities of the
Authority for the next fiscal year, including projection of
the total amount of loans and other financial assistance
anticipated and the amount of revenue bonds or other
evidences of indebtedness that will be necessary to provide
the projected level of assistance during the next fiscal
year.
The requirement for reporting to the General Assembly
shall be satisfied by filing copies of the report with the
Speaker, the Minority Leader and the Clerk of the House of
Representatives and the President, the Minority Leader and
the Secretary of the Senate and the Legislative Research
Unit, as required by Section 3.1 of "An Act to revise the law
in relation to the General Assembly", approved February 25,
1874, as amended, and filing such additional copies with the
State Government Report Distribution Center for the General
Assembly as is required under paragraph (t) of Section 7 of
the State Library Act.
(Source: P.A. 88-519.)
Section 890-8. The Bond Authorization Act is amended by
changing Section 2 as follows:
(30 ILCS 305/2) (from Ch. 17, par. 6602)
Sec. 2. Notwithstanding the provisions of any other law
to the contrary, any public corporation may agree or contract
to pay interest on bonds or other evidences of indebtedness
and tax anticipation warrants issued pursuant to law at an
interest rate or rates not exceeding the greater of 9% per
annum or 125% of the rate for the most recent date shown in
the 20 G.O. Bonds Index of average municipal bond yields as
published in the most recent edition of The Bond Buyer,
published in New York, New York (or any successor publication
or index, or if such publication or index is no longer
published, then any index of long term municipal tax-exempt
bond yields then selected by a governing body), at the time
the contract is made for the sale of the bonds or other
evidences of indebtedness or tax anticipation warrants. A
contract is made with respect to notes or bonds when the
public corporation is contractually obligated to issue notes,
bonds, or other evidences of indebtedness or tax anticipation
warrants to a purchaser who is contractually obligated to
purchase them; and, with respect to bonds or notes bearing
interest at a variable rate or subject to payment upon
periodic demand or put or otherwise subject to remarketing by
or for the public corporation, a contract is made on each
date of change in the variable rate or such demand, put or
remarketing. When bonds or other evidences of indebtedness
or tax anticipation warrants are to be issued by a public
corporation on a basis which is not tax-exempt under Section
103 of the Internal Revenue Code of 1986, as now or hereafter
amended, or successor code or provision, then the interest
rate or rates payable thereon shall be determined by
substituting 13 1/2% for 9% and 200% for 125% in the first
sentence of this Section.
These amendatory Acts of 1971, 1972, 1973, 1975, 1979,
1982, 1983, 1987 and 1988 are not limits upon any home rule
unit.
This Act is not a limit with respect to any bonds, notes
and other evidences of obligation for borrowed money issued
by any public corporation and purchased or otherwise acquired
by the Illinois Development Finance Authority, pursuant to
Sections 7.50 through 7.61 of the Illinois Development
Finance Authority Act, and such bonds, notes and other
evidences of obligation for borrowed money may bear interest
at any rate or rates, and such rate or rates may be
established by an index or formula which may be implemented
or established by persons appointed or retained therefor,
notwithstanding any other provision of law to the contrary.
(Source: P.A. 85-1440.)
Section 890-9. The Human Services Provider Bond Reserve
Payment Act is amended by changing Section 10 as follows:
(30 ILCS 435/10)
Sec. 10. Definitions. For the purposes of this Act:
(a) "Service provider" means any nongovernmental entity,
either for-profit or not-for-profit, that enters into a
contract with a State agency under which the entity is paid
or reimbursed by the State for providing human services to
persons in Illinois.
(b) "State agency" means the Department of Public Aid,
the Department of Public Health, the Department of Children
and Family Services, the Department of Human Services, and
any other department or agency of State government that
enters into contracts with service providers under which the
provider is paid or reimbursed by the State for providing
human services to persons in Illinois.
(c) "Covered bond issue" means revenue bonds (i) that
are issued by any agency of State or local government within
this State, including without limitation bonds issued by the
Illinois Development Finance Authority, (ii) that are to be
directly or indirectly paid, in whole or in part, from
payments due to a service provider under a human services
contract with a State agency, and (iii) for which a debt
service reserve or other reserve fund has been established,
under the control of a named trustee, that the service
provider is required to replenish in the event that moneys
from the reserve fund are used to make payments of principal
or interest on the bonds.
(Source: P.A. 88-117; 89-507, eff. 7-1-97.)
Section 890-10. The Build Illinois Act is amended by
changing Sections 1-3 and 8-3 as follows:
(30 ILCS 750/1-3) (from Ch. 127, par. 2701-3)
Sec. 1-3. The following agencies, boards and entities of
State government may expend appropriations for the purposes
contained in this Act: Department of Natural Resources;
Department of Agriculture; Illinois Development Finance
Authority; Capital Development Board; Department of
Transportation; Department of Central Management Services;
Illinois Arts Council; Environmental Protection Agency;
Historic Preservation Agency; State Board of Higher
Education; the Metropolitan Pier and Exposition Authority;
State Board of Education; Illinois Community College Board;
Board of Trustees of the University of Illinois; Board of
Trustees of Chicago State University; Board of Trustees of
Eastern Illinois University; Board of Trustees of Governors
State University; Board of Trustees of Illinois State
University; Board of Trustees of Northeastern Illinois
University; Board of Trustees of Northern Illinois
University; Board of Trustees of Western Illinois University;
and Board of Trustees of Southern Illinois University.
(Source: P.A. 89-4, eff. 1-1-96; 89-445, eff. 2-7-96.)
(30 ILCS 750/8-3) (from Ch. 127, par. 2708-3)
Sec. 8-3. Powers of the Department. The Department has
the power to:
(a) provide business development public infrastructure
loans or grants from appropriations from the Build Illinois
Bond Fund, the Build Illinois Purposes Fund, the Fund for
Illinois' Future, and the Public Infrastructure Construction
Loan Fund to local governments to provide or improve a
community's public infrastructure so as to create or retain
private sector jobs pursuant to the provisions of this
Article;
(b) provide affordable financing of public
infrastructure loans and grants to, or on behalf of, local
governments, local public entities, medical facilities, and
public health clinics from appropriations from the Public
Infrastructure Construction Loan Fund for the purpose of
assisting with the financing, or application and access to
financing, of a community's public infrastructure necessary
to health, safety, and economic development;
(c) enter into agreements, accept funds or grants, and
engage in cooperation with agencies of the federal
government, or state or local governments to carry out the
purposes of this Article, and to use funds appropriated
pursuant to this Article to participate in federal
infrastructure loan and grant programs upon such terms and
conditions as may be established by the federal government;
(d) establish application, notification, contract, and
other procedures, rules, or regulations deemed necessary and
appropriate to carry out the provisions of this Article;
(e) coordinate assistance under this program with
activities of the Illinois Development Finance Authority in
order to maximize the effectiveness and efficiency of State
development programs;
(f) coordinate assistance under the Affordable Financing
of Public Infrastructure Loan and Grant Program with the
activities of the Illinois Development Finance Authority,
Illinois Rural Bond Bank, Illinois Farm Development
Authority, Illinois Housing Development Authority, Illinois
Environmental Protection Agency, and other federal and State
programs and entities providing financing assistance to
communities for public health, safety, and economic
development infrastructure;
(f-5) provide staff, administration, and related support
required to manage the programs authorized under this Article
and pay for the staffing, administration, and related support
from the Public Infrastructure Construction Loan Revolving
Fund;
(g) exercise such other powers as are necessary or
incidental to the foregoing.
(Source: P.A. 90-454, eff. 8-16-97; 91-34, eff. 7-1-99.)
Section 890-11. The Illinois Pension Code is amended by
changing Sections 14-103.04 and 14-104.11 as follows:
(40 ILCS 5/14-103.04) (from Ch. 108 1/2, par. 14-103.04)
Sec. 14-103.04. Department. "Department": Any
department, institution, board, commission, officer, court,
or any agency of the State having power to certify payrolls
to the State Comptroller authorizing payments of salary or
wages against State appropriations, or against trust funds
held by the State Treasurer, except those departments
included under the term "employer" in the State Universities
Retirement System. "Department" includes the Illinois
Development Finance Authority. "Department" also includes
the Illinois Comprehensive Health Insurance Board and the
Illinois Rural Bond Bank.
(Source: P.A. 90-511, eff. 8-22-97.)
(40 ILCS 5/14-104.11)
Sec. 14-104.11. Illinois Development Finance Authority.
An employee may establish creditable service for periods
prior to the date upon which the Illinois Development Finance
Authority first becomes a department (as defined in Section
14-103.04) during which he or she was employed by the
Illinois Development Finance Authority or the Illinois
Industrial Development Authority, by applying in writing and
paying to the System an amount equal to (i) employee
contributions for the period for which credit is being
established, based upon the employee's compensation and the
applicable contribution rate in effect on the date he or she
last became a member of the System, plus (ii) the employer's
normal cost of the credit established, plus (iii) interest on
the amounts in items (i) and (ii) at the rate of 2.5% per
year, compounded annually, from the date the applicant last
became a member of the System to the date of payment. This
payment must be paid in full before retirement, either in a
lump sum or in installment payments in accordance with the
rules of the Board.
(Source: P.A. 90-511, eff. 8-22-97; 90-655, eff. 7-30-98.)
Section 890-12. The Local Government Financial Planning
and Supervision Act is amended by changing Sections 4, 5, and
10 as follows:
(50 ILCS 320/4) (from Ch. 85, par. 7204)
Sec. 4. Petition.
(a) This subsection (a) applies through December 31,
1992. Any unit of local government upon a 2/3 vote of the
members of its governing body may petition the Governor for
the establishment of a financial planning and supervision
commission if the governing body of the unit of local
government determines that a fiscal emergency, as defined in
Section 3, exists or will exist within 60 days. A copy of the
petition shall be filed with the Illinois Development Finance
Authority requesting the assistance of the Authority in
conducting an analysis of the financial condition of the unit
of local government. A petition shall include the conditions
of fiscal emergency, a list of all amounts and types of
indebtedness or claims known to the unit of local government,
and which creditors are subject to the stay provisions of
Section 7 of this Act.
(b) This subsection (b) applies on and after January 1,
1993. Any unit of local government upon a 2/3 vote of the
members of its governing body may petition the Governor for
the establishment of a financial planning and supervision
commission if the governing body of the unit of local
government determines that a fiscal emergency, as defined in
Section 3, exists or will exist within 60 days. A petition
shall include the conditions of fiscal emergency and a list
of all creditors of the unit of local government, which list
shall indicate the names, addresses, amounts and types of
indebtedness or claims of such creditors, and which of such
creditors are subject to the stay provisions of Section 7 of
this Act.
(Source: P.A. 86-1211; 87-853.)
(50 ILCS 320/5) (from Ch. 85, par. 7205)
Sec. 5. Establishment of commission.
(a) This subsection (a) applies through December 31,
1992.
(1) Upon receipt of a petition for establishment of a
financial planning and supervision commission, the Governor
may direct the establishment of such a commission if the
Governor determines that a fiscal emergency exists.
(2) Prior to making such determination, the Governor
shall give reasonable notice and opportunity for a hearing to
all creditors of the petitioning unit of local government
who are subject to the stay provisions of Section 7 of this
Act. The determination shall be entered not less than 60 days
after the filing of the petition. A determination of fiscal
emergency by the Governor shall be a final administrative
decision subject to the provisions of the Administrative
Review Law. The court on such review may grant exceptions to
the stay provisions of Section 7 of this Act as adequate
protection of creditors' interests or equity may require.
The commission shall convene within 30 days of the entry by
the Governor of his or her determination of the fiscal
emergency.
(3)(A) The Commission shall consist of 7 Directors.
(B) One Director shall be appointed by the chief
executive officer of the unit of local government.
(C) One Director shall be appointed by the majority
vote of the governing body of the unit of local
government.
(D) Five Directors shall be appointed by the
Governor, with the advice and consent of the Senate. The
Governor shall select one of the Directors to serve as
Chairperson during the term of his or her appointment.
Of the initial Directors so appointed, 3 shall be
appointed to serve for terms expiring 3 years from the
date of their appointment, and 2 shall be appointed to
serve for terms expiring 2 years from the date of their
appointment. Thereafter, each Director appointed by the
Governor shall be appointed to hold office for a term of
3 years and until his or her successor has been appointed
as provided in Section 8-12-7 of the Illinois Municipal
Code. Directors shall be eligible for reappointment.
Any vacancy which shall arise shall be filled by
appointment by the Governor, with the advice and consent
of the Senate, for the unexpired term and until a
successor Director has been appointed as provided in
Section 8-12-7 of the Illinois Municipal Code. A vacancy
shall occur upon resignation, death, conviction of a
felony, or removal from office of a Director. A Director
may be removed for incompetency, malfeasance, or neglect
of duty at the instance of the Governor. If the Senate
is not in session or is in recess when appointments
subject to its confirmation are made, the Governor shall
make temporary appointments which shall be subject to
subsequent Senate approval.
(b) This subsection (b) applies on and after January 1,
1993.
(1) Upon receipt of a petition for establishment of a
financial planning and supervision commission, the Governor
may direct the establishment of such a commission if the
Governor determines that a fiscal emergency exists.
(2) Prior to making such determination, the Governor
shall give reasonable notice and opportunity for a hearing to
all creditors of the petitioning unit of local government.
The determination shall be entered not less than 60 days
after the filing of the petition. A determination of fiscal
emergency by the Governor shall be a final administrative
decision subject to the provisions of the Administrative
Review Law. The court on such review may grant exceptions to
the stay provisions of Section 7 of this Act as adequate
protection of creditors' interests or equity may require.
The commission shall convene within 30 days of the entry by
the Governor of his or her determination of the fiscal
emergency.
(3) A commission shall consist of 11 members:
(A) Eight members as follows: the Governor, the
State Comptroller, the Director of Revenue, the Director
of the Bureau of the Budget, the State Treasurer, the
Executive Director of the Illinois Development Finance
Authority, the Director of the Department of Commerce and
Community Affairs and the presiding officer of the
governing body of the unit of local government, or their
respective designees. A designee, when present, shall be
counted in determining whether a quorum is present at any
meeting of the commission and may vote and participate in
all proceedings and actions of the commission. The
designations shall be in writing, executed by the member
making the designation, and filed with the secretary of
the commission. The designations may be changed from
time to time in like manner, but due regard shall be
given to the need for continuity. The Governor shall
appoint a chairman of the commission from among the 8
members described in this subparagraph (A).
(B) Three members nominated and appointed as
follows: the governing body and chief governing officer
of the unit of local government shall submit in writing
to the chairman of the commission the nomination of 5
persons agreed to by them and meeting the qualifications
set forth in this Act. Nominations shall accompany the
petition for establishment of the financial planning and
supervision commission. If the chairman is not satisfied
that at least 3 of the nominees are well qualified, he
shall notify the governing body of the unit of local
government to submit in writing, within 5 days,
additional nominees, not exceeding 3. The chairman shall
appoint 3 members from all the nominees so submitted or a
lesser number that he considers well qualified. Each of
the 3 appointed members shall serve for a term of one
year, subject to removal by the chairman for misfeasance,
nonfeasance or malfeasance in office. Upon the
expiration of the term of an appointed member, or in the
event of the death, resignation, incapacity or removal,
or other ineligibility to serve of an appointed member,
the chairman shall appoint a successor pursuant to the
process of original appointment.
Each of the 3 appointed members shall be an
individual:
(i) Who has knowledge and experience in
financial matters, financial management, or business
organization or operations, including experience in
the private sector in management of business or
financial enterprise, or in management consulting,
public accounting, or other professional activity;
and
(ii) Who has not at any time during the 2 years
preceding the date of appointment held any elected
public office.
The governing body and chief governing officer of
the unit of local government, to the extent possible,
shall nominate members whose residency, office, or
principal place of professional or business activity is
situated within the unit of local government.
An appointed member of the commission shall not
become a candidate for elected public office while
serving as a member of the commission.
(4) Immediately after his appointment of the initial 3
appointed members of the commission, the chairman shall call
the first meeting of the commission and shall cause written
notice of the time, date and place of the first meeting to be
given to each member of the commission at least 48 hours in
advance of the meeting.
(5) The commission members shall select one of their
number to serve as treasurer of the commission.
(Source: P.A. 86-1211; 87-853.)
(50 ILCS 320/10) (from Ch. 85, par. 7210)
Sec. 10. State aid.
(a) This subsection (a) applies through December 31,
1992.
(1) During the period of time that a unit of local
government is covered by this Act, the State shall not be
required to distribute to the unit of local government
any monies to which the unit of local government might
otherwise be entitled except in accordance with the
direction of the commission.
(2) Any State assistance in the form of a loan or
grant from appropriated funds shall be subject to the
expenditure control of the commission.
(3) The commission may request the Illinois
Development Finance Authority to issue bonds, notes, or
other evidences of indebtedness, the proceeds of which
are to be used to make loans to the unit of local
government for purposes of enabling that unit of local
government to restructure its current indebtedness and to
provide and pay for its essential municipal services.
Such request may not precede the adoption of the
financial plan required by Section 8 of this Act and
shall be in accordance with the provisions of Section
7.88 of the Illinois Development Finance Authority Act.
(b) This subsection (b) applies on and after January 1,
1993. During the period of time that a unit of local
government is covered by this Act, the State shall not be
required to distribute to the unit of local government any
monies to which the unit of local government might otherwise
be entitled.
(Source: P.A. 86-1211; 87-853.)
Section 890-13. The Counties Code is amended by changing
Section 5-1050 as follows:
(55 ILCS 5/5-1050) (from Ch. 34, par. 5-1050)
Sec. 5-1050. Acquisition and improvement of land for
industrial or commercial purposes. For the public purposes
set forth in the Illinois Development Finance Authority Act,
a county board may (1) acquire, singly or jointly with other
counties or municipalities, by gift, purchase or otherwise,
but not by condemnation, land, or any interest in land,
whether located within or without its county limits, and,
singly or jointly, to improve or to arrange for the
improvement of such land for industrial or commercial
purposes and to donate and convey such land, or interest in
land, so acquired and so improved to the Illinois Development
Finance Authority; and (2) donate county funds to such
Authority.
(Source: P.A. 86-962.)
Section 890-14. The Township Code is amended by changing
Section 85-10 as follows:
(60 ILCS 1/85-10)
Sec. 85-10. Township corporate powers.
(a) Every township has the corporate capacity to
exercise the powers granted to it, or necessarily implied,
and no others. Every township has the powers specified in
this Section.
(b) A township may sue and be sued.
(c) A township may acquire (by purchase, gift, or
legacy) and hold property, both real and personal, for the
use of its inhabitants and may sell and convey that property.
A township may purchase any real estate or personal property
for public purposes under contracts providing for payment in
installments over a period of time of not more than 20 years
in the case of real estate and not more than 10 years in the
case of personal property. A township may finance the
purchase of any real estate or personal property for public
purpose under finance contracts providing for payment in
installments over a period of time of not more than 20 years
in the case of real estate and not more than 10 years in the
case of personal property. A township may construct a
township hall under contracts providing for payment over a
period of time of not more than 5 years. The interest on the
unpaid balance shall not exceed that permitted in the Bond
Authorization Act.
(d) A township may make all contracts necessary in the
exercise of the township's powers.
(e) A township may expend or contract for the
expenditure of any federal funds made available to the
township by law for any purpose for which taxes imposed upon
township property or property within the township may be
expended.
(f) A township may acquire (singly or jointly with a
municipality or municipalities) land or any interest in land
located within its township limits. The township may acquire
the land or interest by gift, purchase, or otherwise, but not
by condemnation. A township may (singly or jointly) improve
or arrange for the improvement of the land for industrial or
commercial purposes and may donate and convey the land or
interest in land so acquired and so improved to the Illinois
Development Finance Authority.
(g) (Blank)
(h) It is the policy of this State that all powers
granted either expressly or by necessary implication by this
Code, any other Illinois statute, or the Illinois
Constitution to townships may be exercised by those townships
notwithstanding effects on competition. It is the intention
of the General Assembly that the "State action exemption" to
the application of federal antitrust statutes be fully
available to townships to the extent their activities are
authorized by law as stated in this Code.
(i) A township may receive funds under the federal
Housing and Community Development Act of 1974 and may expend
or contract for the expenditure of those funds and other
township funds for the activities specified in Section 105 of
that Act. The powers granted under this subsection (i) are
in addition to powers otherwise possessed by a township and
shall not be construed as a limitation of those other powers.
(j) A township may establish reasonable fees for
recreation and instructional programs sponsored by the
township.
(Source: P.A. 88-62; incorporates 88-356 and 88-360; 88-670,
eff. 12-2-94; 89-331, eff. 8-17-95.)
Section 890-15. The Illinois Municipal Code is amended
by changing Sections 8-12-2, 8-12-3, 8-12-6, 8-12-19,
8-12-21, 8-12-22, 11-74.1-1, 11-113.1-1, 11-119-2, 11-129-3,
11-139-7, and 11-141-5 as follows:
(65 ILCS 5/8-12-2) (from Ch. 24, par. 8-12-2)
Sec. 8-12-2. (a) Pursuant to the authority of the General
Assembly to provide for the public health, safety and
welfare, the General Assembly hereby finds and declares that
it is the public policy and a public purpose of the State to
offer assistance to a financially distressed city so that it
may provide for the health, safety and welfare of its
citizens, pay when due principal and interest on its debt
obligations, meet financial obligations to its employees,
vendors and suppliers, and provide for proper financial
accounting procedures, budgeting and taxing practices, as
well as strengthen the human and economic development of the
city.
(b) It is the purpose of this Division to provide a
secure financial basis for the continued operation of a
financially distressed city. The intention of the General
Assembly, in enacting this legislation is to establish sound,
efficient and generally accepted accounting, budgeting and
taxing procedures and practices within a financially
distressed city, to provide powers to a financial advisory
authority established for a financially distressed city, and
to impose restrictions upon a financially distressed city in
order to assist that city in assuring its financial integrity
while leaving municipal services policies to the city,
consistent with the requirements for satisfying the public
policy and purposes herein set forth.
(c) It also is the purpose of this Division to authorize
a city which has been certified and designated as a
financially distressed city under the procedure set forth in
Section 8-12-4, and which has by ordinance requested that a
financial advisory authority be appointed for the city and
that the city receive assistance as provided in this
Division, and which has filed certified copies of that
ordinance in the manner provided by Section 8-12-4, to enter
into such agreements as are necessary to receive assistance
as provided in this Division and in applicable provisions of
the Illinois Development Finance Authority Act.
(Source: P.A. 86-1211.)
(65 ILCS 5/8-12-3) (from Ch. 24, par. 8-12-3)
Sec. 8-12-3. As used in this Division:
(1) "Authority" means the "(Name of Financially
Distressed City) Financial Advisory Authority".
(2) "Financially distressed city" means any municipality
which is a home rule unit and which (i) is certified by the
Department of Revenue as being in the highest 5% of all home
rule municipalities in terms of the aggregate of the rate per
cent of all taxes levied pursuant to statute or ordinance
upon all taxable property of the municipality and as being in
the lowest 5% of all home rule municipalities in terms of per
capita tax yield, and (ii) is designated by joint resolution
of the General Assembly as a financially distressed city.
(3) "Home rule municipality" means a municipality which
is a home rule unit as provided in Section 6 of Article VII
of the Illinois Constitution.
(4) "Budget" means an annual appropriation ordinance or
annual budget as described in Division 2 of Article 8, as
from time to time in effect in the financially distressed
city.
(5) "Chairperson" means the chairperson of the Authority
appointed pursuant to Section 8-12-7.
(6) "Financial Plan" means the financially distressed
city's financial plan as developed pursuant to Section
8-12-15, as from time to time in effect.
(7) "Fiscal year" means the fiscal year of the
financially distressed city.
(8) "Obligations" means bonds, notes or other evidence
of indebtedness issued by the Illinois Development Finance
Authority in connection with the provision of financial aid
to a financially distressed city pursuant to this Division
and applicable provisions of the Illinois Development Finance
Authority Act.
(Source: P.A. 86-1211.)
(65 ILCS 5/8-12-6) (from Ch. 24, par. 8-12-6)
Sec. 8-12-6. Purposes and powers.
(a) The purposes of the Authority shall be to provide a
secure financial basis for and to furnish assistance to a
financially distressed city to which this Division is
applicable as provided in Section 8-12-4, and to request the
Illinois Development Finance Authority to issue its
Obligations on behalf of and thereby provide financial aid to
the city in accordance with applicable provisions of the
Illinois Development Finance Authority Act, so that the city
can provide basic municipal services within its
jurisdictional limits, while permitting the distressed city
to meet its obligations to its creditors and the holders of
its notes and bonds.
(b) Except as expressly limited by this Division, the
Authority shall have all powers necessary to meet its
responsibilities and to carry out its purposes and the
purposes of this Division, including, but not limited to, the
following powers:
(1) To provide for its organization and internal
management, and to make rules and regulations governing
the use of its property and facilities.
(2) To make and execute contracts, leases,
subleases and all other instruments or agreements
necessary or convenient for the exercise of the powers
and functions granted by this Division.
(3) To approve all loans, grants, or other
financial aid from any State agency.
(4) To appoint officers, agents, and employees of
the Authority, define their duties and qualifications and
fix their compensation and employee benefits.
(5) To engage the services of consultants for
rendering professional and technical assistance and
advice on matters within the Authority's power.
(6) To pay the expenses of its operations.
(7) To determine, in its discretion but consistent
with the requirements of this Division, the terms and
conditions of any loans it may make to the financially
distressed city.
(c) Any loan repayments received by the Authority from
the distressed city may be deposited by the Authority into a
revolving fund under the control of the Authority. Money in
the revolving fund may be used by the Authority to support
activities leading to a restructuring of the distressed
city's debt and may be pledged by the Authority as security
for any new debt incurred by the distressed city with the
approval of the Authority.
(d) From any funds appropriated to the Authority for the
purpose of making a loan to a distressed city, the Authority
may expend not more than $250,000 for the expenses of its
operations in the fiscal year in which the appropriation is
made.
(Source: P.A. 88-664, eff. 9-16-94.)
(65 ILCS 5/8-12-19) (from Ch. 24, par. 8-12-19)
Sec. 8-12-19. The Authority shall appoint and shall have
the authority to remove a financial management officer. The
financial management officer shall have the responsibility
for advising on the preparation of the Budget and Financial
Plan of the financially distressed city and for monitoring
expenditures of the city. The financial management officer
shall be the authorized signatory for all expenditures made
from the proceeds of any State loans provided for the benefit
of the city pursuant to this Division or any other law of
this State, and for all expenditures made from financial aid
provided for the benefit of the city from Obligations issued
by the Illinois Development Finance Authority for such
purposes in accordance with applicable provisions of the
Illinois Development Finance Authority Act. The financial
management officer shall be an employee of and shall report
to the Authority, may be granted authority by the Authority
to hire a specific number of employees to assist in meeting
responsibilities, and shall have access to all financial data
and records of the city which he or she deems necessary for
the proper and efficient exercise of such responsibilities.
Neither the Authority or the financial management officer
shall have any authority to hire, fire or appoint city
employees or to manage the day-to-day operations of the city.
(Source: P.A. 86-1211.)
(65 ILCS 5/8-12-21) (from Ch. 24, par. 8-12-21)
Sec. 8-12-21. The Authority in its sole discretion may
intercept any payments that the city from time to time is
entitled to receive from any funds then or thereafter held by
the State Treasurer to the credit of the city or otherwise in
the custody of the State Treasurer to the credit of the city,
whether in or outside of the State Treasury, upon the
occurrence of any of the following:
(1) The financially distressed city's initial
Financial Plan and revised Budget required to be
submitted to the Authority with respect to the remaining
portion of what is the city's current fiscal year at the
time this Division first becomes applicable to the city
as provided in Section 8-12-4 are not approved by the
Authority within 60 days of their submission, and the
Authority has theretofore given written warning notice to
the corporate authorities of the city, on the 45th day
after such initial Financial Plan and revised Budget were
submitted, that the same have not yet been approved by
the Authority; or
(2) Any Financial Plan or Budget for any subsequent
fiscal year is not approved by the Authority by the
commencement of the fiscal year to which such Financial
Plan or Budget relates, and the Authority has theretofore
given written warning notice to the corporate authorities
of the city, on the 15th day prior to the commencement of
that fiscal year, that the Financial Plan or Budget for
such fiscal year has not yet been approved by the
Authority; or
(3) The financially distressed city materially
violates the provisions of this Division, and the
Authority -- at least 15 days prior to initiating any
action to intercept any payments pursuant to this Section
-- has given the corporate authorities of the city
written notice of the material violation and of the
Authority's intention to intercept payments pursuant to
this Section upon the expiration of that 15 day notice
period unless the city satisfies the Authority within
that 15 day period that the material violation cited by
the Authority has been corrected; provided that the
Authority shall not be required to give any notice to the
city or its corporate authorities prior to initiating
action to intercept payments pursuant to this Section if
such payments are to be intercepted because of the city's
failure to pay when due all amounts then due and owing
and required to be paid by the city on Obligations issued
by the Illinois Development Finance Authority in
connection with the provision of financial aid to the
city pursuant to this Division and applicable provisions
of the Illinois Development Finance Authority Act.
The intercept shall be made pursuant to written notice
given by the Authority to the State Comptroller and State
Treasurer, setting forth the amount of the intercept, which
may be an aggregate amount not exceeding the sum of the full
amount of any outstanding State loans provided for the
benefit of the city pursuant to this Division or any other
law of this State, plus the full amount of all outstanding
Obligations issued by the Illinois Development Finance
Authority on the financially distressed city's behalf in
accordance with applicable provisions of the Illinois
Development Finance Authority Act. The State Comptroller and
State Treasurer shall pay to the Authority, from such funds
as from time to time are legally available therefor, the
aggregate amount of the intercept, unless the Authority
sooner notifies the State Comptroller and State Treasurer in
writing that no further payments that the city is entitled to
receive shall be intercepted under the provisions of this
Section.
(Source: P.A. 86-1211.)
(65 ILCS 5/8-12-22) (from Ch. 24, par. 8-12-22)
Sec. 8-12-22. (a) After the Authority has certified to
the Governor that the financially distressed city has
completed 10 successive years of balanced budgets:
(1) The powers and responsibilities granted or
imposed upon the Authority and the financially distressed
city under Section 8-12-13 and Sections 8-12-15 through
8-12-21 shall not be exercised, except as otherwise
provided under subsection (b) of this Section.
(2) The provisions of Section 8-12-14 shall
continue in full force and effect. The financially
distressed city shall file with the Authority and with
the Illinois Development Finance Authority, not later
than 15 days prior to the commencement of the first
fiscal year with respect to which the powers and
responsibilities granted or imposed under Section 8-12-13
and Sections 8-12-15 through 8-12-21 are not to be
exercised, and not later than 15 days prior to the
commencement of each fiscal year thereafter, a balanced
Budget as adopted by the financially distressed city for
such fiscal year. In addition, for each fiscal year with
respect to which the powers and responsibilities granted
or imposed under Section 8-12-13 and Sections 8-12-15
through 8-12-21 are not to be exercised, the financially
distressed city shall file with the Authority and with
the Illinois Development Finance Authority a certified
copy of the same audit report and supplemental report
which are required to be made and filed for such fiscal
year by the city under the Illinois Municipal Auditing
Law, the filing with the Authority and the Illinois
Development Finance Authority to be made within the time
provided for the filing of such audit report and
supplemental report with the State Comptroller under
Section 8-8-4.
(b) The Authority and the Illinois Development Finance
Authority shall review each Budget, audit report and
supplemental report filed with them as provided in paragraph
(2) of subsection (a). In the event the financially
distressed city fails to file any Budget or certified copy of
an audit report or supplemental report as provided in
paragraph (2) of subsection (a), or in the event the Illinois
Development Finance Authority, after consultation with the
Authority, determines that the Budget adopted by the
financially distressed city and filed as provided in
paragraph (2) of subsection (a) is not balanced as required
under Section 8-12-14, the Illinois Development Finance
Authority shall certify such failure to file, or failure to
adopt a Budget which is balanced as required, to the
Governor; and concurrent with that certification, the
Authority established under Section 8-12-5 and the
financially distressed city shall resume the exercise and
performance of their respective powers and responsibilities
pursuant to each Section of this Division.
(c) When the Illinois Development Finance Authority
determines that all of its Obligations have been fully paid
and discharged or otherwise provided for, it shall certify
that fact to the Governor; and the Authority established
under Section 8-12-5 shall be abolished 30 days after the
date of that certification. Upon abolition of the Authority
as provided in this subsection, this Division shall have no
further force or effect upon the financially distressed city.
(Source: P.A. 86-1211.)
(65 ILCS 5/11-74.1-1) (from Ch. 24, par. 11-74.1-1)
Sec. 11-74.1-1. For the public purposes set forth in the
Illinois Development Finance Authority Act, the corporate
authorities of each municipality may (1) acquire, singly or
jointly with other municipalities or counties, by gift,
purchase or otherwise, but not by condemnation, except in
furtherance of Sections 7.40 through 7.48 of the Illinois
Development Finance Authority Act, land, or any interest in
land, whether located within or without its corporate limits,
and, singly or jointly, may improve or arrange for the
improvement of such land for industrial or commercial
purposes and may donate and convey such land, or interest in
land, so acquired and so improved, to the Illinois
Development Finance Authority; and (2) donate corporate funds
to such Authority.
(Source: P.A. 83-669.)
(65 ILCS 5/11-113.1-1) (from Ch. 24, par. 11-113.1-1)
Sec. 11-113.1-1. A non-home rule municipality located at
least partly in a county which is preparing a stormwater
management plan in accordance with Section 5-1062 of the
Counties Code may levy a tax upon all taxable property
within its corporate limits, at a rate not to exceed 0.06% if
the municipality owns and operates a wastewater treatment
plant, and at a rate not to exceed 0.03% if it does not, of
the value, as equalized or assessed by the Department of
Revenue, of all taxable property within the municipality, for
the purposes of implementing the stormwater management plan,
improving storm sewer and combined sewer facilities,
protecting sanitary sewage treatment works from the 100-year
frequency flood, and acquiring lands, buildings and
properties in the 100-year floodplain, paying the principal
of and interest on any bonds issued pursuant to this Section
for any of the foregoing purposes, and paying the principal
of, premium, if any, and interest on, and any fees relating
to, any loan made to such municipality by the Illinois
Development Finance Authority, pursuant to subsection (t) of
Section 7 of the Illinois Development Finance Authority Act
for any of the foregoing purposes, or any bond, note or other
evidence of indebtedness of such municipality issued in
connection with any such loan. Such tax shall be in addition
to all other taxes authorized by law to be levied and
collected in such municipality and shall be in addition to
the maximum tax rate authorized by law for general municipal
purposes. The limitations on tax rate provided in this
Section may be increased or decreased by referendum in
accordance with the provisions of Sections 18-120, 18-125,
and 18-130 of the Property Tax Code.
However, unless the municipality is located at least
partly in a township declared after July 1, 1986 by
presidential declaration to be a disaster area as a result of
flooding, the tax authorized by this Section shall not be
levied until the question of its adoption, either for a
specified period or indefinitely, has been submitted to the
electors thereof and approved by a majority of those voting
on the question. This question may be submitted at any
election held in the municipality after the adoption of a
resolution by the governing body of the municipality
providing for the submission of the question to the electors
of the municipality. The governing body of the municipality
shall certify the resolution and proposition to the proper
election officials, who shall submit the proposition at an
election in accordance with the general election law. If a
majority of the votes cast on the question is in favor of the
levy of such tax, it may thereafter be levied in such
municipality for the specified period or indefinitely, as
provided in the proposition. The question shall be put in
substantially the following form:
-------------------------------------------------------------
Shall an annual tax be levied
for stormwater management purposes YES
(for a period of not more than
...... years) at a rate not exceeding ------------------
.....% of the equalized assessed
value of the taxable property of NO
(municipality)?
-------------------------------------------------------------
Any municipality in a county which has established a
stormwater management planning committee in accordance with
Section 5-1062 of the Counties Code is hereby authorized to
borrow money and to issue its bonds for the purposes of
implementing the stormwater management plan, improving storm
sewer and combined sewer facilities, protecting sanitary
sewage treatment works from the 100-year frequency flood, and
acquiring lands, buildings and properties in the 100-year
floodplain.
Any municipality in a county which has established a
stormwater management planning committee in accordance with
Section 5-1062 of the Counties Code is hereby further
authorized to borrow money from the Illinois Development
Finance Authority for the purpose of financing the protection
of storm sewer outfalls, the construction of adequate storm
sewer outfalls and the provision for flood protection of
sanitary sewage treatment plants, pursuant to subsection (t)
of Section 7 of the Illinois Development Finance Authority
Act, and is hereby authorized to enter into loan agreements
and other documents with the Illinois Development Finance
Authority and to issue its bonds, notes or other evidences of
indebtedness to evidence its obligation to repay such loan
to the Illinois Development Finance Authority. Without the
submission of the question to the electors, notwithstanding
any other provision of law to the contrary, such municipality
is hereby authorized to execute such loan agreements and
other documents and to issue such bonds, notes or other
evidences of indebtedness, which loan agreements, documents,
bonds, notes or other evidences of indebtedness may bear such
date or dates, may bear interest at such rate or rates,
payable at such time or times, may mature at any time or
times not later than 40 years from the date of issuance, may
be payable at such place or places, may be payable from any
funds of such municipality on hand and lawfully available
therefor, including without limitation the taxes levied
pursuant to this Section or from any other taxes or revenues
of such municipality pledged to their payment, may be
negotiated at such price or prices, may be executed in such
manner, may be subject to redemption prior to maturity, may
be in such form, may be secured, and may be subject to such
other terms and conditions, all as may be provided in a
resolution or ordinance authorizing the execution of any such
loan agreement or other document or the issuance of such
bonds, notes or other evidences of indebtedness.
(Source: P.A. 88-670, eff. 12-2-94.)
(65 ILCS 5/11-119-2) (from Ch. 24, par. 11-119-2)
Sec. 11-119-2. The corporate authorities of any city or
village availing itself of the provisions of this Division
119 shall adopt an ordinance describing in a general way the
improvements or extensions to be made. It shall not be
necessary that the ordinance refer to plans and
specifications nor that there be on file for public
inspection prior to the adoption of such ordinance detailed
plans and specifications of the project. The ordinance shall
set out the estimated cost of the improvements or extensions
and shall fix the amount of bonds proposed to be issued, the
maturity, interest rate, and all details in respect thereof.
Such ordinance, at the option of the municipality, may
contain provisions which shall be part of the contract with
the holders of the bonds as to: (1) The registration of the
bonds as to principal only, or as to both principal and
interest, and the interchangeability and exchangeability of
the bonds. (2) The redemption of the bonds prior to maturity
and the price, either at par or at a premium, at which they
are redeemable. (3) The setting aside of reserves or sinking
funds, and the regulation or disposition thereof. (4)
Limitations upon the issuance of additional bonds payable
from the revenues of the system, or upon the rights of the
holders of these additional bonds. (5) Other agreements with
the holders of the bonds, or covenants or restrictions
necessary or desirable to safeguard the interests of these
holders. After the ordinance has been adopted and approved it
shall be published once in a newspaper published and having a
general circulation in the municipality, or if there is no
such newspaper, copies of the ordinance shall be posted in at
least 4 public places within the municipality. The ordinance
shall be in effect after the expiration of 10 days from the
date of this publication.
Bonds issued under this Division 119 shall be payable
solely from the revenue derived from the electric light plant
and system, or the gas plant and system, as the case may be,
and these bonds shall not in any event constitute an
indebtedness of the municipality within the meaning of any
constitutional or statutory limitation; provided, that bonds
issued under this Division 119 may also be payable from funds
pledged by the municipality issuing such bonds pursuant to
Section 7.59 of the Illinois Development Finance Authority
Act, and, notwithstanding such pledge of such funds, shall
not in any event constitute an indebtedness of the
municipality within the meaning of any constitutional or
statutory limitation. It shall be plainly stated on the face
of each bond that it has been issued under the provisions of
this Division 119 and that it does not constitute an
indebtedness of the municipality within any constitutional or
statutory limitation.
(Source: P.A. 85-659.)
(65 ILCS 5/11-129-3) (from Ch. 24, par. 11-129-3)
Sec. 11-129-3. The corporate authorities of any
municipality availing itself of the provisions of this
Division 129 shall adopt an ordinance describing in a general
way the contemplated project. If it is intended to purchase
an existing waterworks or water supply system, the ordinance
shall describe in a general way the system to be purchased.
If it is intended to build a waterworks or water supply
system or to improve or extend a waterworks or water supply
system owned and operated by the municipality, the ordinance
shall describe in a general way the waterworks or water
supply system to be constructed or the improvements or
extensions to be made. It shall not be necessary that the
ordinance refer to plans and specifications nor that there be
on file for public inspection prior to the adoption of such
ordinance detailed plans and specifications of the project.
The ordinance shall set out the estimated cost of the
project, determine its period of usefulness, and fix the
amount and maturities of water revenue bonds proposed to be
issued, the interest rate, and all details in respect
thereof. The ordinance may contain such covenants and
restrictions upon the issuance of additional revenue bonds
thereafter as may be deemed necessary or advisable for the
assurance of payment of the bonds thereby authorized and as
may be thereafter issued.
Revenue bonds issued under this Division 129 shall be
payable solely from the revenue derived from the operation of
the waterworks or water supply system on account of which the
bonds are issued; provided, that bonds issued under this
Division 129 may also be payable from funds pledged by the
municipality issuing such bonds pursuant to Section 7.59 of
the Illinois Development Finance Authority Act.
Notwithstanding any such pledge or any other matter, these
bonds shall not in any event constitute an indebtedness of
the municipality within the meaning of any constitutional or
statutory limitation and it shall be so stated on the face of
each bond.
(Source: P.A. 85-659.)
(65 ILCS 5/11-139-7) (from Ch. 24, par. 11-139-7)
Sec. 11-139-7. Revenue bonds issued under this Division
139 shall be payable solely from the revenue derived from the
operation of the combined waterworks and sewerage system on
account of which the bonds are issued; provided, that bonds
issued under this Division 139 may also be payable from funds
pledged by the municipality issuing such bonds pursuant to
Section 7.59 of the Illinois Development Finance Authority
Act. Notwithstanding any such pledge or any other matter,
these bonds shall not in any event constitute an indebtedness
of the municipality within the meaning of any constitutional
or statutory limitation and it shall be so stated on the face
of each bond.
(Source: P.A. 85-659.)
(65 ILCS 5/11-141-5) (from Ch. 24, par. 11-141-5)
Sec. 11-141-5. All bonds issued under this Division 141
are payable solely from the revenue derived from the
operation of the sewerage system; provided, that bonds issued
under this Division 141 may also be payable from funds
pledged by the municipality issuing such bonds pursuant to
Section 7.59 of the Illinois Development Finance Authority
Act. Notwithstanding any such pledge or any other matter,
these bonds shall not, in any event, constitute an
indebtedness of the municipality within the meaning of any
constitutional or statutory limitation. It shall be plainly
stated on the face of each bond that the bond has been issued
under this Division 141 and that it does not constitute an
indebtedness of the municipality within any constitutional or
statutory limitation.
(Source: P.A. 85-659.)
Section 890-16. The Joliet Arsenal Development Authority
Act is amended by changing Section 40 as follows:
(70 ILCS 508/40)
Sec. 40. Acquisition.
(a) The Authority may, but need not, acquire title to
any project with respect to which it exercises its authority.
(b) The Authority shall have power to acquire by
purchase, lease, gift, or otherwise any property or rights
therein from any person, the State of Illinois, any municipal
corporation, any local unit of government, the government of
the United States, any agency or instrumentality of the
United States, any body politic, or any county useful for its
purposes, whether improved for the purposes of any
prospective project or unimproved. The Authority may also
accept any donation of funds for its purposes from any of
those sources.
(c) The Authority shall have power to develop,
construct, and improve, either under its own direction or
through collaboration with any approved applicant, or to
acquire through purchase or otherwise any project, using for
that purpose the proceeds derived from its sale of revenue
bonds, notes, or other evidences of indebtedness or
governmental loans or grants, and to hold title in the name
of the Authority to those projects.
(d) The Authority shall have the power to enter into
intergovernmental agreements with the State of Illinois, the
county of Will, the Illinois Development Finance Authority,
the Illinois Education Facilities Authority, the Metropolitan
Pier and Exposition Authority, the United States government,
any agency or instrumentality of the United States, any unit
of local government located within the territory of the
Authority, or any other unit of government to the extent
allowed by Article VII, Section 10 of the Illinois
Constitution and the Intergovernmental Cooperation Act.
(e) The Authority shall have the power to share
employees with other units of government, including agencies
of the United States, agencies of the State of Illinois, and
agencies or personnel of any unit of local government.
(f) Subject to subsection (i) of Section 35 of this Act,
the Authority shall have the power to exercise powers and
issue revenue bonds as if it were a municipality so
authorized in Divisions 12.1, 74, 74.1, 74.3, and 74.5 of
Article 11 of the Illinois Municipal Code.
(Source: P.A. 89-333, eff. 8-17-95.)
Section 890-17. The Quad Cities Regional Economic
Development Authority Act, approved September 22, 1987, is
amended by changing Section 14 as follows:
(70 ILCS 510/14) (from Ch. 85, par. 6214)
Sec. 14. Additional powers and duties. (a) The
Authority may, but need not, acquire title to any project
with respect to which it exercises its authority.
(b) The Authority shall have the power to enter into
intergovernmental agreements with the State of Illinois, the
counties of Rock Island, Henry or Mercer, the State of Iowa
or any authority established by the State of Iowa, the
Illinois Development Finance Authority, the Illinois Housing
Development Authority, the Illinois Education Facilities
Authority, the United States government and any agency or
instrumentality of the United States, any unit of local
government located within the territory of the Authority or
any other unit of government to the extent allowed by Article
VII, Section 10 of the Illinois Constitution and the
Intergovernmental Cooperation Act.
(c) The Authority shall have the power to share
employees with other units of government, including agencies
of the United States, agencies of the State of Illinois and
agencies or personnel of any unit of local government.
(d) The Authority shall have the power to exercise
powers and issue bonds as if it were a municipality so
authorized in Divisions 12.1, 74, 74.1, 74.3 and 74.5 of
Article 11 of the Illinois Municipal Code.
(Source: P.A. 85-713.)
Section 890-18. The Quad Cities Regional Economic
Development Authority Act, certified December 30, 1987, is
amended by changing Section 13 as follows:
(70 ILCS 515/13) (from Ch. 85, par. 6513)
Sec. 13. Additional powers and duties. (a) The
Authority may, but need not, acquire title to any project
with respect to which it exercises its authority.
(b) The Authority shall have the power to enter into
intergovernmental agreements with the State of Illinois, the
counties of Rock Island, Henry or Mercer, the State of Iowa
or any authority established by the State of Iowa, the
Illinois Development Finance Authority, the Illinois Housing
Development Authority, the Illinois Education Facilities
Authority, the United States government and any agency or
instrumentality of the United States, any unit of local
government located within the territory of the Authority or
any other unit of government to the extent allowed by Article
VII, Section 10 of the Illinois Constitution and the
Intergovernmental Cooperation Act.
(c) The Authority shall have the power to share
employees with other units of government, including agencies
of the United States, agencies of the State of Illinois and
agencies or personnel of any unit of local government.
(d) The Authority shall have the power to exercise
powers and issue bonds as if it were a municipality so
authorized in Divisions 12.1, 74, 74.1, 74.3 and 74.5 of
Article 11 of the Illinois Municipal Code.
(Source: P.A. 85-988.)
Section 890-19. The Southwestern Illinois Development
Authority Act is amended by changing Section 8 as follows:
(70 ILCS 520/8) (from Ch. 85, par. 6158)
Sec. 8. (a) The Authority may, but need not, acquire
title to any project with respect to which it exercises its
authority.
(b) The Authority shall have power to acquire by
purchase, lease, gift or otherwise any property or rights
therein from any person or persons, the State of Illinois,
any municipal corporation, any local unit of government, the
government of the United States and any agency or
instrumentality of the United States, any body politic or any
county useful for its purposes, whether improved for the
purposes of any prospective project or unimproved. The
Authority may also accept any donation of funds for its
purposes from any such source. The Authority may acquire any
real property, or rights therein, upon condemnation. The
acquisition by eminent domain of such real property or any
interest therein by the Authority shall be in the manner
provided by the "Code of Civil Procedure", as now or
hereafter amended, including Section 7-103 thereof.
The Authority shall not exercise any quick-take eminent
domain powers granted by State law within the corporate
limits of a municipality unless the governing authority of
the municipality authorizes the Authority to do so. The
Authority shall not exercise any quick-take eminent domain
powers granted by State law within the unincorporated areas
of a county unless the county board authorizes the Authority
to do so.
(c) The Authority shall have power to develop, construct
and improve, either under its own direction or through
collaboration with any approved applicant, or to acquire
through purchase or otherwise any project, using for such
purpose the proceeds derived from its sale of revenue bonds,
notes or other evidences of indebtedness or governmental
loans or grants and to hold title in the name of the
Authority to such projects.
(d) The Authority shall have the power to enter into
intergovernmental agreements with the State of Illinois, the
counties of Madison or St. Clair, the Southwest Regional Port
District, the Illinois Development Finance Authority, the
Illinois Housing Development Authority, the Illinois
Education Facilities Authority, the Metropolitan Pier and
Exposition Authority, the United States government and any
agency or instrumentality of the United States, the city of
East St. Louis, any unit of local government located within
the territory of the Authority or any other unit of
government to the extent allowed by Article VII, Section 10
of the Illinois Constitution and the Intergovernmental
Cooperation Act.
(e) The Authority shall have the power to share
employees with other units of government, including agencies
of the United States, agencies of the State of Illinois and
agencies or personnel of any unit of local government.
(f) The Authority shall have the power to exercise
powers and issue bonds as if it were a municipality so
authorized in Divisions 12.1, 74, 74.1, 74.3 and 74.5 of
Article 11 of the Illinois Municipal Code.
(Source: P.A. 89-343, eff. 8-17-95.)
Section 890-20. The Tri-County River Valley Development
Authority Law is amended by changing Section 2008 as follows:
(70 ILCS 525/2008) (from Ch. 85, par. 7508)
Sec. 2008. Acquisition.
(a) The Authority may, but need not, acquire title to any
project with respect to which it exercises its authority.
(b) The Authority shall have power to acquire by
purchase, lease, gift or otherwise any property or rights
therein from any person or persons, the State of Illinois,
any municipal corporation, any local unit of government, the
government of the United States and any agency or
instrumentality of the United States, any body politic or any
county useful for its purposes, whether improved for the
purposes of any prospective project or unimproved. The
Authority may also accept any donation of funds for its
purposes from any such source.
(c) The Authority shall have power to develop, construct
and improve, either under its own direction or through
collaboration with any approved applicant, or to acquire
through purchase or otherwise any project, using for such
purpose the proceeds derived from its sale of revenue bonds,
notes or other evidences of indebtedness or governmental
loans or grants and to hold title in the name of the
Authority to such projects.
(d) The Authority shall have the power to enter into
intergovernmental agreements with the State of Illinois, the
counties of Peoria, Tazewell or Woodford, the Illinois
Development Finance Authority, the Illinois Housing
Development Authority, the Illinois Education Facilities
Authority, the Metropolitan Pier and Exposition Authority,
the United States government and any agency or
instrumentality of the United States, any unit of local
government located within the territory of the Authority or
any other unit of government to the extent allowed by Article
VII, Section 10 of the Illinois Constitution and the
Intergovernmental Cooperation Act.
(e) The Authority shall have the power to share
employees with other units of government, including agencies
of the United States, agencies of the State of Illinois and
agencies or personnel of any unit of local government.
(f) The Authority shall have the power to exercise
powers and issue bonds as if it were a municipality so
authorized in Divisions 12.1, 74, 74.1, 74.3 and 74.5 of
Article 11 of the Illinois Municipal Code.
(Source: P.A. 86-1489.)
Section 890-21. The Upper Illinois River Valley
Development Authority Act is amended by changing Section 8 as
follows:
(70 ILCS 530/8) (from Ch. 85, par. 7158)
Sec. 8. Acquisition.
(a) The Authority may, but need not, acquire title to
any project with respect to which it exercises its authority.
(b) The Authority shall have power to acquire by
purchase, lease, gift or otherwise any property or rights
therein from any person or persons, the State of Illinois,
any municipal corporation, any local unit of government, the
government of the United States and any agency or
instrumentality of the United States, any body politic or any
county useful for its purposes, whether improved for the
purposes of any prospective project or unimproved. The
Authority may also accept any donation of funds for its
purposes from any such source.
(c) The Authority shall have power to develop, construct
and improve, either under its own direction or through
collaboration with any approved applicant, or to acquire
through purchase or otherwise any project, using for such
purpose the proceeds derived from its sale of revenue bonds,
notes or other evidences of indebtedness or governmental
loans or grants and to hold title in the name of the
Authority to such projects.
(d) The Authority shall have the power to enter into
intergovernmental agreements with the State of Illinois, the
counties of Grundy, LaSalle, Bureau, Putnam or Marshall, the
Illinois Development Finance Authority, the Illinois Housing
Development Authority, the Illinois Education Facilities
Authority, the Metropolitan Pier and Exposition Authority,
the United States government and any agency or
instrumentality of the United States, any unit of local
government located within the territory of the Authority or
any other unit of government to the extent allowed by Article
VII, Section 10 of the Illinois Constitution and the
Intergovernmental Cooperation Act.
(e) The Authority shall have the power to share
employees with other units of government, including agencies
of the United States, agencies of the State of Illinois and
agencies or personnel of any unit of local government.
(f) The Authority shall have the power to exercise
powers and issue bonds as if it were a municipality so
authorized in Divisions 12.1, 74, 74.1, 74.3 and 74.5 of
Article 11 of the Illinois Municipal Code.
(Source: P.A. 86-1024; 87-895.)
Section 890-22. The Will-Kankakee Regional Development
Authority Law is amended by changing Section 8 as follows:
(70 ILCS 535/8) (from Ch. 85, par. 7458)
Sec. 8. Acquisition.
(a) The Authority may, but need not, acquire title to
any project with respect to which it exercises its authority.
(b) The Authority shall have power to acquire by
purchase, lease, gift or otherwise any property or rights
therein from any person or persons, the State of Illinois,
any municipal corporation, any local unit of government, the
government of the United States and any agency or
instrumentality of the United States, any body politic or any
county useful for its purposes, whether improved for the
purposes of any prospective project or unimproved. The
Authority may also accept any donation of funds for its
purposes from any such source.
(c) The Authority shall have power to develop, construct
and improve, either under its own direction or through
collaboration with any approved applicant, or to acquire
through purchase or otherwise any project, using for such
purpose the proceeds derived from its sale of revenue bonds,
notes or other evidences of indebtedness or governmental
loans or grants and to hold title in the name of the
Authority to such projects.
(d) The Authority shall have the power to enter into
intergovernmental agreements with the State of Illinois, the
counties of Will and Kankakee, the Illinois Development
Finance Authority, the Illinois Education Facilities
Authority, the Metropolitan Pier and Exposition Authority,
the United States government and any agency or
instrumentality of the United States, any unit of local
government located within the territory of the Authority or
any other unit of government to the extent allowed by Article
VII, Section 10 of the Illinois Constitution and the
Intergovernmental Cooperation Act.
(e) The Authority shall have the power to share
employees with other units of government, including agencies
of the United States, agencies of the State of Illinois and
agencies or personnel of any unit of local government.
(f) The Authority shall have the power to exercise
powers and issue bonds as if it were a municipality so
authorized in Divisions 12.1, 74, 74.1, 74.3 and 74.5 of
Article 11 of the Illinois Municipal Code.
(Source: P.A. 86-1481.)
Section 890-23. The Sanitary District Act of 1907 is
amended by changing Section 17.1 as follows:
(70 ILCS 2205/17.1) (from Ch. 42, par. 263.1)
Sec. 17.1. The board of trustees of a sanitary district
that owns and operates a wastewater treatment plant in a
county which has established a stormwater management planning
committee in accordance with Section 5-1062 of the Counties
Code may levy a tax upon all taxable property within its
district at a rate not to exceed 0.03% of the value of such
property, as equalized or assessed by the Department of
Revenue, for the purposes of protecting pumping stations,
wastewater treatment plants and combined sewer outfalls from
the 100-year flood, paying the principal of and interest on
any bonds issued pursuant to this Section for any of the
foregoing purposes, and paying the principal of, premium, if
any, and interest on, and any fees relating to, any loan made
to such sanitary district by the Illinois Development Finance
Authority, pursuant to subsection (t) of Section 7 of the
Illinois Development Finance Authority Act, for any of the
foregoing purposes, or any bond, note or other evidence of
indebtedness of such municipality issued in connection with
any such loan. The 0.03% limitation provided in this Section
may be increased or decreased by referendum in accordance
with the provisions of Sections 18-120, 18-125, and 18-130 of
the Property Tax Code.
The tax authorized by this Section may be levied without
referendum by any sanitary district that is located at least
partly in a township declared after July 1, 1986 by
presidential declaration to be a disaster area as a result of
flooding. However, the tax authorized by this Section shall
not be levied by any sanitary district not so located unless
the question of its adoption, either for a specified period
or indefinitely, is submitted to the electors thereof and
approved by a majority of those voting on the question. This
question may be submitted at any election held in the
sanitary district after the adoption of a resolution by the
board of trustees of the sanitary district providing for the
submission of the question to the electors of the sanitary
district. The board of trustees shall certify the resolution
and proposition to the proper election officials, who shall
submit the proposition at an election in accordance with the
general election law. If a majority of the votes cast on the
question is in favor of the levy of such tax, it may
thereafter be levied in such sanitary district for the
specified period or indefinitely, as provided in the
proposition. The question shall be put in substantially the
following form:
-------------------------------------------------------------
Shall an annual tax be levied
for stormwater management purposes YES
(for a period of not more than
...... years) at a rate not exceeding ------------------
0.03% of the equalized assessed
value of the taxable property of NO
the ........ Sanitary District?
-------------------------------------------------------------
Any sanitary district in a county that has established a
stormwater management planning committee in accordance with
Section 5-1062 of the Counties Code is hereby authorized to
borrow money and to issue its bonds for the purposes of
protecting pumping stations, wastewater treatment plants and
combined sewer outfalls from the 100-year flood.
Any sanitary district in a county that has established a
stormwater management planning committee in accordance with
Section 5-1062 of the Counties Code is hereby further
authorized to borrow money from the Illinois Development
Finance Authority for the purpose of financing the provision
of flood protection for sanitary sewage treatment plants,
pursuant to subsection (t) of Section 7 of the Illinois
Development Finance Authority Act, and is hereby authorized
to enter into loan agreements and other documents with the
Illinois Development Finance Authority and to issue its
bonds, notes or other evidences of indebtedness to evidence
its obligation to repay such loan to the Illinois Development
Finance Authority. Without the submission of the question to
the electors, notwithstanding any other provision of law to
the contrary, such sanitary district is hereby authorized to
execute such loan agreements and other documents and to issue
such bonds, notes or other evidences of indebtedness, which
loan agreements, documents, bonds, notes or other evidences
of indebtedness may bear such date or dates, may bear
interest at such rate or rates, payable at such time or
times, may mature at any time or times not later than 40
years from the date of issuance, may be payable at such place
or places, may be payable from any funds of such sanitary
district on hand and lawfully available therefor, including
without limitation the taxes levied pursuant to this Section
or from any other taxes or revenues of such sanitary district
pledged to their payment, may be negotiated at such price or
prices, may be executed in such manner, may be subject to
redemption prior to maturity, may be in such form, may be
secured, and may be subject to such other terms and
conditions, all as may be provided in a resolution or
ordinance authorizing the execution of any such loan
agreement or other document or the issuance of such bonds,
notes or other evidences of indebtedness.
(Source: P.A. 88-670, eff. 12-2-94.)
Section 890-24. The Family Practice Residency Act is
amended by changing Section 10 as follows:
(110 ILCS 935/10) (from Ch. 144, par. 1460)
Sec. 10. Scholarship recipients who fail to fulfill the
obligation described in subsection (d) of Section 3.07 of
this Act shall pay to the Department a sum equal to 3 times
the amount of the annual scholarship grant for each year the
recipient fails to fulfill such obligation. A scholarship
recipient who fails to fulfill the obligation described in
subsection (d) of Section 3.07 shall have 30 days from the
date on which that failure begins in which to enter into a
contract with the Department that sets forth the manner in
which that sum is required to be paid. If the contract is
not entered into within that 30 day period or if the contract
is entered into but the required payments are not made in the
amounts and at the times provided in the contract, the
scholarship recipient also shall be required to pay to the
Department interest at the rate of 9% per annum on the amount
of that sum remaining due and unpaid. The amounts paid to the
Department under this Section shall be deposited into the
Community Health Center Care Fund and shall be used by the
Department to improve access to primary health care services
as authorized by subsection (a) of Section 2310-200 of the
Department of Public Health Powers and Duties Law (20 ILCS
2310/2310-200).
The Department may transfer to the Illinois Development
Finance Authority, into an account outside the State
treasury, moneys in the Community Health Center Care Fund as
needed, but not to exceed an amount established, by rule, by
the Department to establish a reserve or credit enhancement
escrow account to support a financing program or a loan or
equipment leasing program to provide moneys to support the
purposes of subsection (a) of Section 2310-200 of the
Department of Public Health Powers and Duties Law (20 ILCS
2310/2310-200). The disposition of moneys at the conclusion
of any financing program under this Section shall be
determined by an interagency agreement.
(Source: P.A. 90-405, eff. 1-1-98; 91-239, eff. 1-1-00.)
Section 890-25. The Illinois Public Aid Code is amended
by changing Sections 11-3 and 11-3.3 as follows:
(305 ILCS 5/11-3) (from Ch. 23, par. 11-3)
Sec. 11-3. Assignment and attachment of aid prohibited.
Except as provided below in this Section and in Section
11-3.3, all financial aid given under Articles III, IV, V,
and VI and money payments for child care services provided by
a child care provider under Articles IX and IXA shall not be
subject to assignment, sale, attachment, garnishment, or
otherwise. Provided, however, that a medical vendor may use
his right to receive vendor payments as collateral for loans
from financial institutions so long as such arrangements do
not constitute any activity prohibited under Section
1902(a)(32) of the Social Security Act and regulations
promulgated thereunder, or any other applicable laws or
regulations. Provided further, however, that a medical or
other vendor or a service provider may assign, reassign,
sell, pledge or grant a security interest in any such
financial aid, vendor payments or money payments or grants
which he has a right to receive to the Illinois Health
Facilities Authority, in connection with any financing
program undertaken by the Illinois Health Facilities
Authority, or to the Illinois Development Finance Authority,
in connection with any financing program undertaken by the
Illinois Development Finance Authority. Each Authority may
utilize a trustee or agent to accept, accomplish, effectuate
or realize upon any such assignment, reassignment, sale,
pledge or grant on that Authority's behalf. Provided further,
however, that nothing herein shall prevent the Illinois
Department from collecting any assessment, fee, interest or
penalty due under Article V-A, V-B, V-C, or V-E by
withholding financial aid as payment of such assessment, fee,
interest, or penalty. Any alienation in contravention of this
statute does not diminish and does not affect the validity,
legality or enforceability of any underlying obligations for
which such alienation may have been made as collateral
between the parties to the alienation. This amendatory Act
shall be retroactive in application and shall pertain to
obligations existing prior to its enactment.
(Source: P.A. 92-111, eff. 1-1-02.)
(305 ILCS 5/11-3.3) (from Ch. 23, par. 11-3.3)
Sec. 11-3.3. Payment to provider or governmental agency
or entity. Payments under this Code shall be made to the
provider, except that the Department may issue or may agree
to issue the payment directly to the Illinois Health
Facilities Authority, the Illinois Development Finance
Authority, or any other governmental agency or entity,
including any bond trustee for that agency or entity, to whom
the provider has assigned, reassigned, sold, pledged or
granted a security interest in the payments that the provider
has a right to receive, provided that the issuance or
agreement to issue is not prohibited under Section
1902(a)(32) of the Social Security Act.
(Source: P.A. 87-842.)
Section 890-26. The Illinois Affordable Housing Act is
amended by changing Section 6 as follows:
(310 ILCS 65/6) (from Ch. 67 1/2, par. 1256)
Sec. 6. Advisory Commission.
(a) There is hereby created the Illinois Affordable
Housing Advisory Commission. The Commission shall consist of
15 members. Three of the Commissioners shall be the Directors
of the Illinois Housing Development Authority, the Illinois
Development Finance Authority and the Department of Commerce
and Community Affairs or their representatives. One of the
Commissioners shall be the Commissioner of the Chicago
Department of Housing or its representative. The remaining 11
members shall be appointed by the Governor, with the advice
and consent of the Senate, and not more than 4 of these
Commission members shall reside in any one county in the
State. At least one Commission member shall be an
administrator of a public housing authority from other than a
municipality having a population in excess of 2,000,000; at
least 2 Commission members shall be representatives of
special needs populations as described in subsection (e) of
Section 8; at least 4 Commission members shall be
representatives of community-based organizations engaged in
the development or operation of housing for low-income and
very low-income households; and at least 4 Commission members
shall be representatives of advocacy organizations, one of
which shall represent a tenants' advocacy organization. The
Governor shall consider nominations made by advocacy
organizations and community-based organizations.
(b) Members appointed to the Commission shall serve a
term of 3 years; however, 3 members first appointed under
this Act shall serve an initial term of one year, and 4
members first appointed under this Act shall serve a term of
2 years. Individual terms of office shall be chosen by lot
at the initial meeting of the Commission. The Governor shall
appoint the Chairman of the Commission, and the Commission
members shall elect a Vice Chairman.
(c) Members of the Commission shall not be entitled to
compensation, but shall receive reimbursement for actual and
reasonable expenses incurred in the performance of their
duties.
(d) Eight members of the Commission shall constitute a
quorum for the transaction of business.
(e) The Commission shall meet at least quarterly and its
duties and responsibilities are:
(1) the study and review of the availability of
affordable housing for low-income and very low-income
households in the State of Illinois and the development
of a plan which addresses the need for additional
affordable housing;
(2) encouraging collaboration between federal and
State agencies, local government and the private sector
in the planning, development and operation of affordable
housing for low-income and very low-income households;
(3) studying, evaluating and soliciting new and
expanded sources of funding for affordable housing;
(4) developing, proposing, reviewing, and
commenting on priorities, policies and procedures for
uses and expenditures of Trust Fund monies, including
policies which assure equitable distribution of funds
statewide;
(5) making recommendations to the Program
Administrator concerning proposed expenditures from the
Trust Fund;
(6) making recommendations to the Program
Administrator concerning the developments proposed to be
financed with the proceeds of Affordable Housing Program
Trust Fund Bonds or Notes;
(7) reviewing and commenting on the development of
priorities, policies and procedures for the
administration of the Program;
(8) monitoring and evaluating all allocations of
funds under this Program; and
(9) making recommendations to the General Assembly
for further legislation that may be necessary in the area
of affordable housing.
(Source: P.A. 88-93; 89-286, eff. 8-10-95.)
Section 890-27. The Illinois Rural/Downstate Health Act
is amended by changing Section 4 as follows:
(410 ILCS 65/4) (from Ch. 111 1/2, par. 8054)
Sec. 4. The Center shall have the authority:
(a) To assist rural communities and communities in
designated shortage areas by providing technical assistance
to community leaders in defining their specific health care
needs and identifying strategies to address those needs.
(b) To link rural communities and communities in
designated shortage areas with other units in the Department
or other State agencies which can assist in the solution of a
health care access problem.
(c) To maintain and disseminate information on
innovative health care strategies, either directly or
indirectly.
(d) To administer State or federal grant programs
relating to rural health or medically underserved areas
established by State or federal law for which funding has
been made available.
(e) To promote the development of primary care services
in rural areas and designated shortage areas. Subject to
available appropriations, the Department may annually award
grants of up to $300,000 each to enable the health services
in those areas to offer multi-service comprehensive
ambulatory care, thereby improving access to primary care
services. Grants may cover operational and facility
construction and renovation expenses, including but not
limited to the cost of personnel, medical supplies and
equipment, patient transportation, and health provider
recruitment. The Department shall prescribe by rule standards
and procedures for the provision of local matching funds in
relation to each grant application. Grants provided under
this paragraph (e) shall be in addition to support and
assistance provided under subsection (a) of Section 2310-200
of the Department of Public Health Powers and Duties Law (20
ILCS 2310/2310-200). Eligible applicants shall include, but
not be limited to, community-based organizations, hospitals,
local health departments, and Community Health Centers as
defined in Section 4.1 of this Act.
(f) To annually provide grants from available
appropriations to hospitals located in medically underserved
areas or health manpower shortage areas as defined by the
United States Department of Health and Human Services, whose
governing boards include significant representation of
consumers of hospital services residing in the area served by
the hospital, and which agree not to discriminate in any way
against any consumer of hospital services based upon the
consumer's source of payment for those services. Grants that
may be awarded under this paragraph (f) shall be limited to
$500,000 and shall not exceed 50% of the total project need
indicated in each application. Expenses covered by the grants
may include but are not limited to facility renovation,
equipment acquisition and maintenance, recruitment of health
personnel, diversification of services, and joint venture
arrangements.
(g) To establish a recruitment center which shall
actively recruit physicians and other health care
practitioners to participate in the program, maintain
contacts with participating practitioners, actively promote
health care professional practice in designated shortage
areas, assist in matching the skills of participating medical
students with the needs of community health centers in
designated shortage areas, and assist participating medical
students in locating in designated shortage areas.
(h) To assist communities in designated shortage areas
find alternative services or temporary health care providers
when existing health care providers are called into active
duty with the armed forces of the United States.
(i) To develop, in cooperation with the Illinois
Development Finance Authority, financing programs whose goals
and purposes shall be to provide moneys to carry out the
purpose of this Act, including, but not limited to, revenue
bond programs, revolving loan programs, equipment leasing
programs, and working cash programs. The Department may
transfer to the Illinois Development Finance Authority, into
an account outside of the State treasury, moneys in special
funds of the Department for the purposes of establishing
those programs. The disposition of any moneys so transferred
shall be determined by an interagency agreement.
(Source: P.A. 91-239, eff. 1-1-00; 91-357, eff. 7-29-99;
92-16, eff. 6-28-01.)
Section 890-28. The Prevailing Wage Act is amended by
changing Section 2 as follows:
(820 ILCS 130/2) (from Ch. 48, par. 39s-2)
Sec. 2. This Act applies to the wages of laborers,
mechanics and other workers employed in any public works, as
hereinafter defined, by any public body and to anyone under
contracts for public works.
As used in this Act, unless the context indicates
otherwise:
"Public works" means all fixed works constructed for
public use by any public body, other than work done directly
by any public utility company, whether or not done under
public supervision or direction, or paid for wholly or in
part out of public funds. "Public works" as defined herein
includes all projects financed in whole or in part with bonds
issued under the Industrial Project Revenue Bond Act (Article
11, Division 74 of the Illinois Municipal Code), the
Industrial Building Revenue Bond Act, the Illinois
Development Finance Authority Act, the Illinois Sports
Facilities Authority Act, or the Build Illinois Bond Act, and
all projects financed in whole or in part with loans or other
funds made available pursuant to the Build Illinois Act.
"Construction" means all work on public works involving
laborers, workers or mechanics.
"Locality" means the county where the physical work upon
public works is performed, except (1) that if there is not
available in the county a sufficient number of competent
skilled laborers, workers and mechanics to construct the
public works efficiently and properly, "locality" includes
any other county nearest the one in which the work or
construction is to be performed and from which such persons
may be obtained in sufficient numbers to perform the work and
(2) that, with respect to contracts for highway work with the
Department of Transportation of this State, "locality" may at
the discretion of the Secretary of the Department of
Transportation be construed to include two or more adjacent
counties from which workers may be accessible for work on
such construction.
"Public body" means the State or any officer, board or
commission of the State or any political subdivision or
department thereof, or any institution supported in whole or
in part by public funds, authorized by law to construct
public works or to enter into any contract for the
construction of public works, and includes every county,
city, town, village, township, school district, irrigation,
utility, reclamation improvement or other district and every
other political subdivision, district or municipality of the
state whether such political subdivision, municipality or
district operates under a special charter or not.
The terms "general prevailing rate of hourly wages",
"general prevailing rate of wages" or "prevailing rate of
wages" when used in this Act mean the hourly cash wages plus
fringe benefits for training and apprenticeship programs
approved by the U.S. Department of Labor, Bureau of
Apprenticeship and Training, health and welfare, insurance,
vacations and pensions paid generally, in the locality in
which the work is being performed, to employees engaged in
work of a similar character on public works.
(Source: P.A. 91-105, eff. 1-1-00; 91-935, eff. 6-1-01;
92-16, eff. 6-28-01.)
Section 890-29. The Transportation Cooperation Act of
1971 is amended by changing Section 2 as follows:
(5 ILCS 225/2) (from Ch. 111 2/3, par. 602)
Sec. 2. For the purposes of this Act:
(a) "Railroad passenger service" means any railroad
passenger service within the State of Illinois, including the
equipment and facilities used in connection therewith, with
the exception of the basic system operated by the National
Railroad Passenger Corporation pursuant to Title II and
Section 403(a) of the Federal Rail Passenger Service Act of
1970.
(b) "Federal Railroad Corporation" means the National
Railroad Passenger Corporation established pursuant to an Act
of Congress known as the "Rail Passenger Service Act of
1970."
(c) "Transportation system" means any and all modes of
public transportation within the State, including, but not
limited to, transportation of persons or property by rapid
transit, rail, bus, and aircraft, and all equipment,
facilities and property, real and personal, used in
connection therewith.
(d) "Carrier" means any corporation, authority,
partnership, association, person or district authorized to
maintain a transportation system within the State with the
exception of the Federal Railroad Corporation.
(e) "Units of local government" means cities, villages,
incorporated towns, counties, municipalities, townships, and
special districts, including any district created pursuant to
the "Local Mass Transit District Act", approved July 21,
1959, as amended; any Authority created pursuant to the
"Metropolitan Transit Authority Act", approved April 12,
1945, as amended; and, any authority, commission or other
entity which by virtue of an interstate compact approved by
Congress is authorized to provide mass transportation.
(f) "Universities" means all public institutions of
higher education as defined in an "Act creating a Board of
Higher Education, defining its powers and duties, making an
appropriation therefor, and repealing an Act herein named",
approved August 22, 1961, as amended, and all private
institutions of higher education as defined in the Illinois
Finance Educational Facilities Authority Act.
(g) "Department" means the Illinois Department of
Transportation, or such other department designated by law to
perform the duties and functions of the Illinois Department
of Transportation prior to January 1, 1972.
(h) "Association" means any Transportation Service
Association created pursuant to Section 4 of this Act.
(i) "Contracting Parties" means any units of local
government or universities which have associated and joined
together pursuant to Section 3 of this Act.
(j) "Governing authorities" means (1) the city council
or similar legislative body of a city; (2) the board of
trustees or similar body of a village or incorporated town;
(3) the council of a municipality under the commission form
of municipal government; (4) the board of trustees in a
township; (5) the Board of Trustees of the University of
Illinois, the Board of Trustees of Southern Illinois
University, the Board of Trustees of Chicago State
University, the Board of Trustees of Eastern Illinois
University, the Board of Trustees of Governors State
University, the Board of Trustees of Illinois State
University, the Board of Trustees of Northeastern Illinois
University, the Board of Trustees of Northern Illinois
University, the Board of Trustees of Western Illinois
University, and the Illinois Community College Board; (6) the
county board of a county; and (7) the trustees,
commissioners, board members, or directors of a university,
special district, authority or similar agency.
(Source: P.A. 89-4, eff. 1-1-96.)
Section 890-30. The Capital Development Board Act is
amended by changing Section 3 as follows:
(20 ILCS 3105/3) (from Ch. 127, par. 773)
Sec. 3. As used in this Act, unless the context
otherwise requires:
"Board" means the Capital Development Board.
"State agency" means and includes each officer,
department, board, commission, institution, body politic and
corporate of the State including the Illinois Building
Authority, school districts, and any other person expending
or encumbering State or federal funds by virtue of an
appropriation or other authorization by the General Assembly
or federal authorization or grant. Except as otherwise
expressly authorized by the General Assembly, the term does
not include the Department of Transportation, the Department
of Natural Resources, or Environmental Protection Agency,
except as respects buildings used by the Department or Agency
for its officers, employees, or equipment, or any of them,
and for capital improvements related to such buildings. Nor
does the term include the Illinois Housing Development
Authority, the Illinois Finance Educational Facilities
Authority or the St. Louis Metropolitan Area Airport
Authority.
"School District" means any school district or special
charter district as defined in Section 1-3 of "The School
Code", approved March 18, 1961, as amended, or any
administrative district, or governing board, of a joint
agreement organized under Section 10-22.31 of the School
Code.
(Source: P.A. 89-445, eff. 2-7-96.)
Section 890-31. The Higher Education Loan Act is amended
by changing the title and Sections 3, 3.01, and 5 as follows:
(110 ILCS 945/Act title)
An Act relating to the Illinois Finance Educational
Facilities Authority and certain of its powers and duties.
(Source: P.A. 85-1326.)
(110 ILCS 945/3) (from Ch. 144, par. 1603)
Sec. 3. Definitions. In this Act, unless the context
otherwise requires, the terms specified in Sections 3.01
through 3.13 of this Act and Sections 3.01 through 3.09 of
the Illinois Finance Educational Facilities Authority Act
have the meanings ascribed to them in those Acts Sections.
(Source: P.A. 88-555, eff. 7-27-94.)
(110 ILCS 945/3.01) (from Ch. 144, par. 1603.01)
Sec. 3.01. Authority. "Authority" means the Illinois
State Finance Educational Facilities Authority created by the
Illinois State Finance Educational Facilities Authority Act.
(Source: P.A. 85-1326.)
(110 ILCS 945/5) (from Ch. 144, par. 1605)
Sec. 5. Transfer of functions from the Illinois
Educational Facilities Independent Higher Education Loan
Authority to the Illinois Finance Educational Facilities
Authority. The Illinois Finance Educational Facilities
Authority created by the Illinois Finance Educational
Facilities Authority Act shall succeed to, assume and
exercise all rights, powers, duties and responsibilities
formerly exercised by the Illinois Educational Facilities
Independent Higher Education Loan Authority prior to the
abolition of that Authority by this amendatory Act of the
93rd General Assembly 1988. All books, records, papers,
documents and pending business in any way pertaining to the
former Illinois Educational Facilities Independent Higher
Education Loan Authority are transferred to the Illinois
State Finance Educational Facilities Authority, but any
rights or obligations of any person under any contract made
by, or under any rules, regulations, uniform standards,
criteria and guidelines established or approved by, such
former Illinois Educational Facilities Independent Higher
Education Loan Authority shall be unaffected thereby. All
bonds, notes or other evidences of indebtedness outstanding
on the effective date of this amendatory Act of the 93rd
General Assembly 1988 shall be unaffected by the transfer of
functions to the Illinois Finance Educational Facilities
Authority. No rule, regulation, standard, criteria or
guideline promulgated, established or approved by the former
Illinois Educational Facilities Independent Higher Education
Loan Authority pursuant to an exercise of any right, power,
duty or responsibility assumed by and transferred to the
Illinois Finance Educational Facilities Authority shall be
affected by this amendatory Act of the 93rd General Assembly
1988, and all such rules, regulations, standards, criteria
and guidelines shall become those of the Illinois Finance
Educational Facilities Authority until such time as they are
amended or repealed by the Authority.
(Source: P.A. 85-1326.)
Section 890-32. The Rural Diversification Act is amended
by changing Sections 2, 3, 4, and 5 as follows:
(20 ILCS 690/2) (from Ch. 5, par. 2252)
Sec. 2. Findings and declaration of policy. The General
Assembly hereby finds, determines and declares:
(a) That Illinois is a state of diversified economic
strength and that an important economic strength in Illinois
is derived from rural business production and the
agribusiness industry;
(b) That the Illinois rural economy is in a state of
transition, which presents a unique opportunity for the State
to act on its growth and development;
(c) That full and continued growth and development of
Illinois' rural economy, especially in the small towns and
farm communities, is vital for Illinois;
(d) That by encouraging the development of diversified
rural business and agricultural production, nonproduction and
processing activities in Illinois, the State creates a
beneficial climate for new and improved job opportunities for
its citizens and expands jobs and job training opportunities;
(e) That in order to cultivate strong rural economic
growth and development in Illinois, it is necessary to
proceed with a plan which encourages Illinois rural
businesses and agribusinesses to expand business employment
opportunities through diversification of business and
industries, offers managerial, technical and financial
assistance to or on behalf of rural businesses and
agribusiness, and works in a cooperative venture and spirit
with Illinois' business, labor, local government, educational
and scientific communities;
(f) That dedication of State resources over a multi-year
period targeted to promoting the growth and development of
one or more classes of diversified rural products,
particularly new agricultural products, is an effective use
of State funds;
(g) That the United States Congress, having identified
similar needs and purposes has enacted legislation creating
the United States Department of Agriculture/Farmers Home
Administration Non-profit National Finance Corporations Loan
and Grant Program and made funding available to the states
consistent with the purposes of this Act.
(h) That the Illinois General Assembly has enacted
"Rural Revival" and a series of "Harvest the Heartland"
initiatives which create within the Illinois Finance Farm
Development Authority a "Seed Capital Fund" to provide
venture capital for emerging new agribusinesses, and to help
coordinate cooperative research and development on new
agriculture technologies in conjunction with the Agricultural
Research and Development Consortium in Peoria, the United
State Department of Agriculture Northern Regional Research
Laboratory in Peoria, the institutions of higher learning in
Illinois, and the agribusiness community of this State,
identify the need for enhanced efforts by the State to
promote the use of fuels utilizing ethanol made from Illinois
grain, and promote forestry development in this State; and
(i) That there is a need to coordinate the many programs
offered by the State of Illinois Departments of Agriculture,
Commerce and Community Affairs, and Natural Resources, and
the Illinois Finance Farm Development Authority that are
targeted to agriculture and the rural community with those
offered by the federal government. Therefore it is desirable
that the fullest measure of coordination and integration of
the programs offered by the various state agencies and the
federal government be achieved.
(Source: P.A. 89-445, eff. 2-7-96.)
(20 ILCS 690/3) (from Ch. 5, par. 2253)
Sec. 3. Definitions. The following words and phrases
shall have the meaning ascribed to each of them in this
Section unless the context clearly indicates otherwise:
(a) "Office" means the Office of Rural Community
Development within the Illinois Department of Commerce and
Community Affairs.
(b) "Rural business" means a business, including a
cooperative, proprietorship, partnership, corporation or
other entity, that is located in a municipality of 20,000
population or less, or in an unincorporated area of a county
with a population of less than 350,000, but not in a
municipality which is contiguous to a municipality or
municipalities with a population greater than 20,000. The
business must also be engaged in manufacturing, mining,
agriculture, wholesale, transportation, tourism, or utilities
or in research and development or services to these basic
industrial sectors.
(c) "Agribusiness", for purpose of this Act, means a
rural business that is defined as an agribusiness pursuant to
subsection (i) of Section 2 of the Illinois Finance Authority
Farm Development Act.
(d) "Rural diversification project" means financing to a
rural business for a specific activity undertaken to promote:
(i) the improvement and expansion of business and industry in
rural areas; (ii) creation of entrepreneurial and
self-employment businesses; (iii) industry or region wide
research directed to profit oriented uses of rural resources,
and (iv) value added agricultural supply, production
processing or reprocessing facilities or operations and shall
include but not be limited to agricultural diversification
projects.
(e) "Financing" means direct loans at market or below
market rate interest, grants, technical assistance contracts,
or other means whereby monetary assistance is provided to or
on behalf of rural business or agribusinesses for purposes of
rural diversification.
(f) "Agricultural diversification project" means
financing awarded to a rural business for a specific activity
undertaken to promote diversification of the farm economy of
this State through (i) profit oriented nonproduction uses of
Illinois land resources, (ii) growth and development of new
crops or livestock not customarily grown or produced in this
State, or (iii) developments which emphasize a vertical
integration of grain or livestock produced or raised in this
State into a finished product for consumption or use. "New
crops or livestock not customarily grown or produced in this
State" does not include corn, soybeans, wheat, swine, or beef
or dairy cattle. "Vertical integration of grain or livestock
produced or raised in this State" includes any new or
existing grain or livestock grown or produced in this State.
(Source: P.A. 85-180.)
(20 ILCS 690/4) (from Ch. 5, par. 2254)
Sec. 4. Powers of the Office. The Office has the
following powers, in addition to those granted to it by other
law:
(a) To provide financing pursuant to the provisions of
this Act, from appropriations made by the General Assembly
from the General Revenue Fund, Federal trust funds, and the
Rural Diversification Revolving Fund created herein, to or on
behalf of rural business and agribusiness to promote rural
diversification.
(b) To provide financing in the form of direct loans and
grants from State funds for qualifying agricultural and rural
diversification projects independent of federal financial
participation, except that no grants from State funds shall
be made directly with a rural business.
(c) To provide financing in the form of direct loans,
grants, and technical assistance contracts from State funds
for qualifying agricultural and rural diversification
projects in coordination with federal financial participation
in the form of loan guarantees, direct loans, and grant and
technical assistance contract reimbursements.
(d) To consider in the award of State funded financing
the satisfaction of matching requirements associated with
federal financing participation and the maximization of
federal financing participation to the benefit of the rural
Illinois economy.
(e) To enter into agreements or contracts, accept funds
or grants, and cooperate with agencies of the Federal
Government, State or Local Governments, the private sector or
non-profit organizations to carry out the purposes of this
Act;
(f) To enter into agreements or contracts for the
promotion, application origination, analysis or servicing of
the financings made by the Office pursuant to this Act;
(g) To receive and accept, from any source, aid or
contributions of money, property or labor for the furtherance
of this Act and collect fees, charges or advances as the
Department may determine in connection with its financing;
(h) To establish application, notification, contract and
other procedures and other procedures and rules deemed
necessary and appropriate by the Office to carry out the
provisions of this Act;
(i) To foreclose any mortgage, deed of trust, note,
debenture, bond or other security interest held by the Office
and to take all such actions as may be necessary to enforce
any obligation held by the Office;
(j) To analyze opportunities and needs of rural
communities, primarily those communities experiencing farm
worker distress including consultation with regional
commissions, governments, or diversification organizations,
and work to strengthen the coordination of existing programs
offered through the Office, the Department of Agriculture,
the Department of Natural Resources, the Illinois Finance
Farm Development Authority, the Cooperative Extension Service
and others for rural and agribusiness development and
assistance; and
(k) To cooperate with an existing committee comprised of
representatives from the Office, the Rural Affairs Council or
its successor, the Department of Agriculture, the Illinois
Finance Farm Development Authority and others to coordinate
departmental policies with other State agencies and to
promote agricultural and rural diversification in the State.
(l) To exercise such other right, powers and duties as
are necessary to fulfill the purposes of this Act.
(Source: P.A. 89-445, eff. 2-7-96.)
(20 ILCS 690/5) (from Ch. 5, par. 2255)
Sec. 5. Agricultural and rural diversification
financing. (a) The Office's financing to or on behalf of
rural businesses or agribusinesses in the State shall be for
the purpose of assisting in the cost of agricultural and
rural diversification projects including (i) acquisition,
construction, reconstruction, replacement, repair,
rehabilitation, alteration, expansion or extension of real
property, buildings or machinery and equipment but not the
acquisition of unimproved land for the production of crops or
livestock; (ii) working capital items including but not
limited to, inventory, accounts receivable and prepaid
expenses; (iii) organizational expenses including, but not
limited to, architectural and engineering costs, legal
services, marketing analyses, production analyses, or other
professional services; (iv) needed leasehold improvements,
easements, and other amenities required to prepare a site;
(v) information, technical support and technical assistance
contracts to local officials or not-for-profit agencies
regarding private, state and federal resources, programs or
grant assistances and the needs and opportunities for
diversification; and (vi) when conducted in cooperation with
federal reimbursement programs, financing costs including
guarantee fees, packaging fees and origination fees but not
debt refinancing.
(b) Agricultural or rural diversification financing to a
rural business or agribusiness under this Act shall be used
only where it can be shown that the agricultural or rural
diversification project for which financing is being sought
has the potential to achieve commercial success and will
increase employment, directly or indirectly retain jobs, or
promote local diversification.
(c) The Office shall establish an internal review
committee with the Director of the Rural Affairs Council, or
his designee, the Director of the Department of Agriculture,
or his designee, and the Director of the Illinois Finance
Farm Development Authority, or his designee, as members to
assist in the review of all project applications.
(d) The Office shall not provide financing to a rural
business or agribusiness unless the application includes
convincing evidence that a specific agricultural or rural
diversification project is ready to occur and will only occur
if the financing is made. The Office shall also consider the
applicability of other state and federal programs prior to
financing any project.
(Source: P.A. 85-180.)
Section 890-33. The Emergency Farm Credit Allocation Act
is amended by changing Sections 3 and 4 as follows:
(20 ILCS 3610/3) (from Ch. 5, par. 1253)
Sec. 3. As used in this Act unless the context otherwise
requires:
(a) "Applicant" means an Illinois farmer applying for an
operating loan.
(b) "Operating loan" means a loan to an applicant in
connection with cultivating the soil, or in connection with
raising or harvesting any agricultural or horticultural
commodity, including the raising, feeding and management of
livestock or poultry on a farm of which the applicant is the
owner, tenant, or operator, for the current year's operating
expenses.
(c) "Lender" means any federal or State chartered bank,
federal land bank, production credit association, bank for
cooperatives, federal or State chartered savings and loan
association or building and loan association, business
investment company or any other institution qualified within
this State to originate and service loans, including, but
without limitation to, insurance companies, credit unions and
mortgage loan companies.
(d) "Payment adjustment" means an amount of money equal
to one-half of the total interest payable on the principal of
the operating loan.
(e) "Authority" means the Illinois Finance Farm
Development Authority.
(f) "Asset" shall include, but not be limited to the
following: cash crops or feed on hand; livestock held for
sale; breeding stock; marketable bonds and securities;
securities not readily marketable; accounts receivable; notes
receivable; cash invested in growing crops; net cash value of
life insurance; machinery and equipment; cars and trucks;
farm and other real estate including life estates and
personal residence; value of beneficial interests in trusts;
government payments or grants; and any other assets.
(g) "Liability" shall include, but not be limited to the
following: accounts payable; notes or other indebtedness owed
to any source; taxes; rent; amounts owed on real estate
contracts or real estate mortgages; judgments; accrued
interest payable; and any other liability.
(h) "Debt to asset ratio" means the current outstanding
liabilities of the farmer divided by the current outstanding
assets of the farmer.
(Source: P.A. 84-1; 84-1106.)
(20 ILCS 3610/4) (from Ch. 5, par. 1254)
Sec. 4. There is hereby created a payment adjustment
program to be administered by the Illinois Finance Farm
Development Authority. The Authority shall have the authority
to promulgate and adopt rules and regulations which are
consistent with this Act. The Authority may impose a minimal
fee to cover the costs of administering the program. On or
before May 1 of each of the next six years, or until all
repayments have been received on payment adjustments, the
Authority shall submit a report to the General Assembly and
the Governor concerning the status of the payment adjustment
program. The Authority shall grant no payment adjustments
after June 15, 1986.
(Source: P.A. 84-1; 84-1106.)
Section 890-34. The Build Illinois Act is amended by
changing Section 8-3 as follows:
(30 ILCS 750/8-3) (from Ch. 127, par. 2708-3)
Sec. 8-3. Powers of the Department. The Department has
the power to:
(a) provide business development public infrastructure
loans or grants from appropriations from the Build Illinois
Bond Fund, the Build Illinois Purposes Fund, the Fund for
Illinois' Future, and the Public Infrastructure Construction
Loan Fund to local governments to provide or improve a
community's public infrastructure so as to create or retain
private sector jobs pursuant to the provisions of this
Article;
(b) provide affordable financing of public
infrastructure loans and grants to, or on behalf of, local
governments, local public entities, medical facilities, and
public health clinics from appropriations from the Public
Infrastructure Construction Loan Fund for the purpose of
assisting with the financing, or application and access to
financing, of a community's public infrastructure necessary
to health, safety, and economic development;
(c) enter into agreements, accept funds or grants, and
engage in cooperation with agencies of the federal
government, or state or local governments to carry out the
purposes of this Article, and to use funds appropriated
pursuant to this Article to participate in federal
infrastructure loan and grant programs upon such terms and
conditions as may be established by the federal government;
(d) establish application, notification, contract, and
other procedures, rules, or regulations deemed necessary and
appropriate to carry out the provisions of this Article;
(e) coordinate assistance under this program with
activities of the Illinois Development Finance Authority in
order to maximize the effectiveness and efficiency of State
development programs;
(f) coordinate assistance under the Affordable Financing
of Public Infrastructure Loan and Grant Program with the
activities of the Illinois Development Finance Authority,
Illinois Rural Bond Bank, Illinois Finance Farm Development
Authority, Illinois Housing Development Authority, Illinois
Environmental Protection Agency, and other federal and State
programs and entities providing financing assistance to
communities for public health, safety, and economic
development infrastructure;
(f-5) provide staff, administration, and related support
required to manage the programs authorized under this Article
and pay for the staffing, administration, and related support
from the Public Infrastructure Construction Loan Revolving
Fund;
(g) exercise such other powers as are necessary or
incidental to the foregoing.
(Source: P.A. 90-454, eff. 8-16-97; 91-34, eff. 7-1-99.)
Section 890-35. The Livestock Management Facilities Act
is amended by changing Section 17 as follows:
(510 ILCS 77/17)
Sec. 17. Financial responsibility. Owners of new or
modified lagoons registered under the provisions of this Act
shall establish and maintain evidence of financial
responsibility to provide for the closure of the lagoons and
the proper disposal of their contents within the time
provisions outlined in this Act. Financial responsibility
may be evidenced by any combination of the following:
(1) Commercial or private insurance;
(2) Guarantee;
(3) Surety bond;
(4) Letter of credit;
(5) Certificate of Deposit or designated savings
account;
(6) Participation in a livestock waste lagoon closure
fund managed by the Illinois Finance Farm Development
Authority.
The level of surety required shall be determined by rule
and be based upon the volumetric capacity of the lagoon.
Surety instruments required under this Section shall be
required after the effective date of rules adopted for the
implementation of this Act.
(Source: P.A. 89-456, eff. 5-21-96; 90-565, eff. 6-1-98.)
Section 890-36. The Illinois Forestry Development Act is
amended by changing Sections 4 and 6a as follows:
(525 ILCS 15/4) (from Ch. 96 1/2, par. 9104)
Sec. 4. The Department shall: (a) Implement the forestry
development cost share program created by Section 5 of this
Act and coordinate with the United States Department of
Agriculture - Soil Conservation Service and the Agricultural
Stabilization and Conservation Service in the administration
of such program.
(b) Approve acceptable forestry management plans as
required by Section 5 of this Act.
(c) Provide assistance to the Illinois Council on
Forestry Development.
(d) Promote the development of an active forestry
industry in this State by providing information to timber
growers relating to acceptable management practices,
suitability of various kinds of timber to various land types,
marketability of various types of timber, market strategies
including marketing cooperatives, availability of State and
federal government assistance, soil and water conservation
benefits, and wildlife habitat enhancement opportunities.
(e) Provide any aid or information requested by the
Illinois Finance Farm Development Authority in relation to
forestry industry assistance programs implemented under the
"Illinois Finance Authority Farm Development Act".
(Source: P.A. 86-779.)
(525 ILCS 15/6a) (from Ch. 96 1/2, par. 9106a)
(Section scheduled to be repealed on December 31, 2008)
Sec. 6a. Illinois Forestry Development Council.
(a) The Illinois Forestry Development Council is hereby
re-created by this amendatory Act of the 91st General
Assembly.
(b) The Council shall consist of 24 members appointed as
follows:
(1) four members of the General Assembly, one
appointed by the President of the Senate, one appointed
by the Senate Minority Leader, one appointed by the
Speaker of the House of Representatives, and one
appointed by the House Minority Leader;
(2) one member appointed by the Governor to
represent the Governor;
(3) the Directors of the Departments of Natural
Resources, Agriculture, and Commerce and Community
Affairs, the Executive Director of the Illinois Finance
Farm Development Authority, and the Director of the
Office of Rural Affairs, or their designees;
(4) the chairman of the Department of Forestry or a
forestry academician, appointed by the Dean of
Agriculture at Southern Illinois University at
Carbondale;
(5) the head of the Department of Natural Resources
and Environmental Sciences or a forestry academician,
appointed by the Dean of Agriculture at the University of
Illinois;
(6) two members, appointed by the Governor, who
shall be private timber growers;
(7) one member, appointed by the president of the
Illinois Wood Products Association, who shall be involved
in primary forestry industry;
(8) one member, appointed by the president of the
Illinois Wood Products Association, who shall be involved
in secondary forestry industry;
(9) one member who is actively involved in
environmental issues, appointed by the Governor;
(10) the president of the Association of Illinois
Soil and Water Conservation Districts;
(11) two persons who are actively engaged in
farming, appointed by the Governor;
(12) one member, appointed by the Governor, whose
primary area of expertise is urban forestry;
(13) one member appointed by the President of the
Illinois Arborists Association;
(14) the Supervisor of the Shawnee National Forest
and the United States Department of Agriculture Natural
Resource Conservation Service's State Conservationist, ex
officio, or their designees.
(c) Members of the Council shall serve without
compensation but shall be reimbursed for actual expenses
incurred in the performance of their duties which are not
otherwise reimbursed.
(d) The Council shall select from its membership a
chairperson and such other officers as it considers
necessary.
(e) Other individuals, agencies and organizations may be
invited to participate as deemed advisable by the Council.
(f) The Council shall study and evaluate the forestry
resources and forestry industry of Illinois. The Council
shall:
(1) determine the magnitude, nature and extent of
the State's forestry resources;
(2) determine current uses and project future
demand for forest products, services and benefits in
Illinois;
(3) determine and evaluate the ownership
characteristics of the State's forests, the motives for
forest ownership and the success of incentives necessary
to stimulate development of forest resources;
(4) determine the economic development and
management opportunities that could result from
improvements in local and regional forest product
marketing and from the establishment of new or additional
wood-related businesses in Illinois;
(5) confer with and offer assistance to the
Illinois Finance Farm Development Authority relating to
its implementation of forest industry assistance programs
authorized by the Illinois Finance Authority Farm
Development Act;
(6) determine the opportunities for increasing
employment and economic growth through development of
forest resources;
(7) determine the effect of current governmental
policies and regulations on the management of woodlands
and the location of wood products markets;
(8) determine the staffing and funding needs for
forestry and other conservation programs to support and
enhance forest resources development;
(9) determine the needs of forestry education
programs in this State;
(10) confer with and offer assistance to the
Department of Natural Resources relating to the
implementation of urban forestry assistance grants
pursuant to the Urban and Community Forestry Assistance
Act; and
(11) determine soil and water conservation benefits
and wildlife habitat enhancement opportunities that can
be promoted through approved forestry management plans.
(g) The Council shall report (i) its findings and
recommendations for future State action and (ii) its
evaluation of Urban/Community Forestry Assistance Grants to
the General Assembly no later than July 1 of each year.
(h) This Section 6a is repealed December 31, 2008.
(Source: P.A. 90-809, eff. 12-31-98; 91-157, eff. 7-16-99.)
Section 890-37. The Public Funds Investment Act is
amended by changing Section 6 as follows:
(30 ILCS 235/6) (from Ch. 85, par. 906)
Sec. 6. Report of financial institutions.
(a) No bank shall receive any public funds unless it has
furnished the corporate authorities of a public agency
submitting a deposit with copies of the last two sworn
statements of resources and liabilities which the bank is
required to furnish to the Commissioner of Banks and Real
Estate or to the Comptroller of the Currency. Each bank
designated as a depository for public funds shall, while
acting as such depository, furnish the corporate authorities
of a public agency with a copy of all statements of resources
and liabilities which it is required to furnish to the
Commissioner of Banks and Real Estate or to the Comptroller
of the Currency; provided, that if such funds or moneys are
deposited in a bank, the amount of all such deposits not
collateralized or insured by an agency of the federal
government shall not exceed 75% of the capital stock and
surplus of such bank, and the corporate authorities of a
public agency submitting a deposit shall not be discharged
from responsibility for any funds or moneys deposited in any
bank in excess of such limitation.
(b) No savings bank or savings and loan association
shall receive public funds unless it has furnished the
corporate authorities of a public agency submitting a deposit
with copies of the last 2 sworn statements of resources and
liabilities which the savings bank or savings and loan
association is required to furnish to the Commissioner of
Banks and Real Estate or the Federal Deposit Insurance
Corporation. Each savings bank or savings and loan
association designated as a depository for public funds
shall, while acting as such depository, furnish the corporate
authorities of a public agency with a copy of all statements
of resources and liabilities which it is required to furnish
to the Commissioner of Banks and Real Estate or the Federal
Deposit Insurance Corporation; provided, that if such funds
or moneys are deposited in a savings bank or savings and loan
association, the amount of all such deposits not
collateralized or insured by an agency of the federal
government shall not exceed 75% of the net worth of such
savings bank or savings and loan association as defined by
the Federal Deposit Insurance Corporation, and the corporate
authorities of a public agency submitting a deposit shall not
be discharged from responsibility for any funds or moneys
deposited in any savings bank or savings and loan association
in excess of such limitation.
(c) No credit union shall receive public funds unless it
has furnished the corporate authorities of a public agency
submitting a share deposit with copies of the last two
reports of examination prepared by or submitted to the
Illinois Department of Financial Institutions or the National
Credit Union Administration. Each credit union designated as
a depository for public funds shall, while acting as such
depository, furnish the corporate authorities of a public
agency with a copy of all reports of examination prepared by
or furnished to the Illinois Department of Financial
Institutions or the National Credit Union Administration;
provided that if such funds or moneys are invested in a
credit union account, the amount of all such investments not
collateralized or insured by an agency of the federal
government or other approved share insurer shall not exceed
50% of the unimpaired capital and surplus of such credit
union, which shall include shares, reserves and undivided
earnings and the corporate authorities of a public agency
making an investment shall not be discharged from
responsibility for any funds or moneys invested in a credit
union in excess of such limitation.
(d) Whenever a public agency deposits any public funds
in a financial institution, the public agency may enter into
an agreement with the financial institution requiring any
funds not insured by the Federal Deposit Insurance
Corporation or the National Credit Union Administration or
other approved share insurer to be collateralized by
securities, mortgages, letters of credit issued by a Federal
Home Loan Bank, or loans covered by a State Guaranty under
the Illinois Finance Authority Farm Development Act in an
amount equal to at least market value of that amount of funds
deposited exceeding the insurance limitation provided by the
Federal Deposit Insurance Corporation or the National Credit
Union Administration or other approved share insurer.
(e) Paragraphs (a), (b), (c), and (d) of this Section do
not apply to the University of Illinois, Southern Illinois
University, Chicago State University, Eastern Illinois
University, Governors State University, Illinois State
University, Northeastern Illinois University, Northern
Illinois University, Western Illinois University, the
Cooperative Computer Center and public community colleges.
(Source: P.A. 91-324, eff. 1-1-00; 91-773, eff. 6-9-00.)
Section 890-38. The Children and Family Services Act is
amended by changing Section 22.4 as follows:
(20 ILCS 505/22.4) (from Ch. 23, par. 5022.4)
Sec. 22.4. Low-interest loans for child care facilities;
Department of Human Services. The Department of Human
Services may establish, with financing to be provided through
the issuance of bonds by the Illinois Finance Health
Facilities Authority pursuant to the Illinois Finance Health
Facilities Authority Act, as now or hereafter amended, a
low-interest loan program to help child care centers and
family day care homes accomplish the following:
(a) establish a child care program;
(b) meet federal, State and local child care
standards as well as any applicable health and safety
standards; or
(c) build facilities or renovate or expand existing
facilities.
Such loans shall be available only to child care centers
and family day care homes serving children of low income
families.
(Source: P.A. 89-507, eff. 7-1-97.)
Section 890-39. The Energy Conservation and Coal
Development Act is amended by changing Section 15 as follows:
(20 ILCS 1105/15) (from Ch. 96 1/2, par. 7415)
Sec. 15. (a) The Department, in cooperation with the
Illinois Development Finance Authority, shall establish a
program to assist units of local government, as defined in
the Illinois Development Finance Authority Act, to identify
and arrange financing for energy conservation projects for
buildings and facilities owned or leased by those units of
local government.
(b) The Department, in cooperation with the Illinois
Finance Health Facilities Authority, shall establish a
program to assist health facilities to identify and arrange
financing for energy conservation projects for buildings and
facilities owned or leased by those health facilities.
(Source: P.A. 87-852; 88-45.)
Section 890-40. The Illinois Public Aid Code is amended
by changing Sections 11-3 and 11-3.3 as follows:
(305 ILCS 5/11-3) (from Ch. 23, par. 11-3)
Sec. 11-3. Assignment and attachment of aid prohibited.
Except as provided below in this Section and in Section
11-3.3, all financial aid given under Articles III, IV, V,
and VI and money payments for child care services provided by
a child care provider under Articles IX and IXA shall not be
subject to assignment, sale, attachment, garnishment, or
otherwise. Provided, however, that a medical vendor may use
his right to receive vendor payments as collateral for loans
from financial institutions so long as such arrangements do
not constitute any activity prohibited under Section
1902(a)(32) of the Social Security Act and regulations
promulgated thereunder, or any other applicable laws or
regulations. Provided further, however, that a medical or
other vendor or a service provider may assign, reassign,
sell, pledge or grant a security interest in any such
financial aid, vendor payments or money payments or grants
which he has a right to receive to the Illinois Finance
Health Facilities Authority, in connection with any financing
program undertaken by the Illinois Finance Health Facilities
Authority, or to the Illinois Development Finance Authority,
in connection with any financing program undertaken by the
Illinois Development Finance Authority. Each Authority may
utilize a trustee or agent to accept, accomplish, effectuate
or realize upon any such assignment, reassignment, sale,
pledge or grant on that Authority's behalf. Provided further,
however, that nothing herein shall prevent the Illinois
Department from collecting any assessment, fee, interest or
penalty due under Article V-A, V-B, V-C, or V-E by
withholding financial aid as payment of such assessment, fee,
interest, or penalty. Any alienation in contravention of this
statute does not diminish and does not affect the validity,
legality or enforceability of any underlying obligations for
which such alienation may have been made as collateral
between the parties to the alienation. This amendatory Act
shall be retroactive in application and shall pertain to
obligations existing prior to its enactment.
(Source: P.A. 92-111, eff. 1-1-02.)
(305 ILCS 5/11-3.3) (from Ch. 23, par. 11-3.3)
Sec. 11-3.3. Payment to provider or governmental agency
or entity. Payments under this Code shall be made to the
provider, except that the Department may issue or may agree
to issue the payment directly to the Illinois Finance Health
Facilities Authority, the Illinois Development Finance
Authority, or any other governmental agency or entity,
including any bond trustee for that agency or entity, to whom
the provider has assigned, reassigned, sold, pledged or
granted a security interest in the payments that the provider
has a right to receive, provided that the issuance or
agreement to issue is not prohibited under Section
1902(a)(32) of the Social Security Act.
(Source: P.A. 87-842.)
Section 890-41. The AIDS Confidentiality Act is amended
by changing Section 3 as follows:
(410 ILCS 305/3) (from Ch. 111 1/2, par. 7303)
Sec. 3. When used in this Act:
(a) "Department" means the Illinois Department of Public
Health.
(b) "AIDS" means acquired immunodeficiency syndrome.
(c) "HIV" means the Human Immunodeficiency Virus or any
other identified causative agent of AIDS.
(d) "Written informed consent" means an agreement in
writing executed by the subject of a test or the subject's
legally authorized representative without undue inducement or
any element of force, fraud, deceit, duress or other form of
constraint or coercion, which entails at least the following:
(1) a fair explanation of the test, including its
purpose, potential uses, limitations and the meaning of its
results; and
(2) a fair explanation of the procedures to be followed,
including the voluntary nature of the test, the right to
withdraw consent to the testing process at any time, the
right to anonymity to the extent provided by law with respect
to participation in the test and disclosure of test results,
and the right to confidential treatment of information
identifying the subject of the test and the results of the
test, to the extent provided by law.
(e) "Health facility" means a hospital, nursing home,
blood bank, blood center, sperm bank, or other health care
institution, including any "health facility" as that term is
defined in the Illinois Finance Health Facilities Authority
Act.
(f) "Health care provider" means any physician, nurse,
paramedic, psychologist or other person providing medical,
nursing, psychological, or other health care services of any
kind.
(g) "Test" or "HIV test" means a test to determine the
presence of the antibody or antigen to HIV, or of HIV
infection.
(h) "Person" includes any natural person, partnership,
association, joint venture, trust, governmental entity,
public or private corporation, health facility or other legal
entity.
(Source: P.A. 85-677; 85-679.)
Section 890-42. The State Employees Group Insurance Act
of 1971 is amended by changing Section 3 as follows:
(5 ILCS 375/3) (from Ch. 127, par. 523)
Sec. 3. Definitions. Unless the context otherwise
requires, the following words and phrases as used in this Act
shall have the following meanings. The Department may define
these and other words and phrases separately for the purpose
of implementing specific programs providing benefits under
this Act.
(a) "Administrative service organization" means any
person, firm or corporation experienced in the handling of
claims which is fully qualified, financially sound and
capable of meeting the service requirements of a contract of
administration executed with the Department.
(b) "Annuitant" means (1) an employee who retires, or
has retired, on or after January 1, 1966 on an immediate
annuity under the provisions of Articles 2, 14, 15 (including
an employee who has retired under the optional retirement
program established under Section 15-158.2), paragraphs (2),
(3), or (5) of Section 16-106, or Article 18 of the Illinois
Pension Code; (2) any person who was receiving group
insurance coverage under this Act as of March 31, 1978 by
reason of his status as an annuitant, even though the annuity
in relation to which such coverage was provided is a
proportional annuity based on less than the minimum period of
service required for a retirement annuity in the system
involved; (3) any person not otherwise covered by this Act
who has retired as a participating member under Article 2 of
the Illinois Pension Code but is ineligible for the
retirement annuity under Section 2-119 of the Illinois
Pension Code; (4) the spouse of any person who is receiving a
retirement annuity under Article 18 of the Illinois Pension
Code and who is covered under a group health insurance
program sponsored by a governmental employer other than the
State of Illinois and who has irrevocably elected to waive
his or her coverage under this Act and to have his or her
spouse considered as the "annuitant" under this Act and not
as a "dependent"; or (5) an employee who retires, or has
retired, from a qualified position, as determined according
to rules promulgated by the Director, under a qualified local
government or a qualified rehabilitation facility or a
qualified domestic violence shelter or service. (For
definition of "retired employee", see (p) post).
(b-5) "New SERS annuitant" means a person who, on or
after January 1, 1998, becomes an annuitant, as defined in
subsection (b), by virtue of beginning to receive a
retirement annuity under Article 14 of the Illinois Pension
Code, and is eligible to participate in the basic program of
group health benefits provided for annuitants under this Act.
(b-6) "New SURS annuitant" means a person who (1) on or
after January 1, 1998, becomes an annuitant, as defined in
subsection (b), by virtue of beginning to receive a
retirement annuity under Article 15 of the Illinois Pension
Code, (2) has not made the election authorized under Section
15-135.1 of the Illinois Pension Code, and (3) is eligible to
participate in the basic program of group health benefits
provided for annuitants under this Act.
(b-7) "New TRS State annuitant" means a person who, on
or after July 1, 1998, becomes an annuitant, as defined in
subsection (b), by virtue of beginning to receive a
retirement annuity under Article 16 of the Illinois Pension
Code based on service as a teacher as defined in paragraph
(2), (3), or (5) of Section 16-106 of that Code, and is
eligible to participate in the basic program of group health
benefits provided for annuitants under this Act.
(c) "Carrier" means (1) an insurance company, a
corporation organized under the Limited Health Service
Organization Act or the Voluntary Health Services Plan Act, a
partnership, or other nongovernmental organization, which is
authorized to do group life or group health insurance
business in Illinois, or (2) the State of Illinois as a
self-insurer.
(d) "Compensation" means salary or wages payable on a
regular payroll by the State Treasurer on a warrant of the
State Comptroller out of any State, trust or federal fund, or
by the Governor of the State through a disbursing officer of
the State out of a trust or out of federal funds, or by any
Department out of State, trust, federal or other funds held
by the State Treasurer or the Department, to any person for
personal services currently performed, and ordinary or
accidental disability benefits under Articles 2, 14, 15
(including ordinary or accidental disability benefits under
the optional retirement program established under Section
15-158.2), paragraphs (2), (3), or (5) of Section 16-106, or
Article 18 of the Illinois Pension Code, for disability
incurred after January 1, 1966, or benefits payable under the
Workers' Compensation or Occupational Diseases Act or
benefits payable under a sick pay plan established in
accordance with Section 36 of the State Finance Act.
"Compensation" also means salary or wages paid to an employee
of any qualified local government or qualified rehabilitation
facility or a qualified domestic violence shelter or service.
(e) "Commission" means the State Employees Group
Insurance Advisory Commission authorized by this Act.
Commencing July 1, 1984, "Commission" as used in this Act
means the Illinois Economic and Fiscal Commission as
established by the Legislative Commission Reorganization Act
of 1984.
(f) "Contributory", when referred to as contributory
coverage, shall mean optional coverages or benefits elected
by the member toward the cost of which such member makes
contribution, or which are funded in whole or in part through
the acceptance of a reduction in earnings or the foregoing of
an increase in earnings by an employee, as distinguished from
noncontributory coverage or benefits which are paid entirely
by the State of Illinois without reduction of the member's
salary.
(g) "Department" means any department, institution,
board, commission, officer, court or any agency of the State
government receiving appropriations and having power to
certify payrolls to the Comptroller authorizing payments of
salary and wages against such appropriations as are made by
the General Assembly from any State fund, or against trust
funds held by the State Treasurer and includes boards of
trustees of the retirement systems created by Articles 2, 14,
15, 16 and 18 of the Illinois Pension Code. "Department"
also includes the Illinois Comprehensive Health Insurance
Board, the Board of Examiners established under the Illinois
Public Accounting Act, and the Illinois Finance Authority
Rural Bond Bank.
(h) "Dependent", when the term is used in the context of
the health and life plan, means a member's spouse and any
unmarried child (1) from birth to age 19 including an adopted
child, a child who lives with the member from the time of the
filing of a petition for adoption until entry of an order of
adoption, a stepchild or recognized child who lives with the
member in a parent-child relationship, or a child who lives
with the member if such member is a court appointed guardian
of the child, or (2) age 19 to 23 enrolled as a full-time
student in any accredited school, financially dependent upon
the member, and eligible to be claimed as a dependent for
income tax purposes, or (3) age 19 or over who is mentally or
physically handicapped. For the health plan only, the term
"dependent" also includes any person enrolled prior to the
effective date of this Section who is dependent upon the
member to the extent that the member may claim such person as
a dependent for income tax deduction purposes; no other such
person may be enrolled. For the health plan only, the term
"dependent" also includes any person who has received after
June 30, 2000 an organ transplant and who is financially
dependent upon the member and eligible to be claimed as a
dependent for income tax purposes.
(i) "Director" means the Director of the Illinois
Department of Central Management Services.
(j) "Eligibility period" means the period of time a
member has to elect enrollment in programs or to select
benefits without regard to age, sex or health.
(k) "Employee" means and includes each officer or
employee in the service of a department who (1) receives his
compensation for service rendered to the department on a
warrant issued pursuant to a payroll certified by a
department or on a warrant or check issued and drawn by a
department upon a trust, federal or other fund or on a
warrant issued pursuant to a payroll certified by an elected
or duly appointed officer of the State or who receives
payment of the performance of personal services on a warrant
issued pursuant to a payroll certified by a Department and
drawn by the Comptroller upon the State Treasurer against
appropriations made by the General Assembly from any fund or
against trust funds held by the State Treasurer, and (2) is
employed full-time or part-time in a position normally
requiring actual performance of duty during not less than 1/2
of a normal work period, as established by the Director in
cooperation with each department, except that persons elected
by popular vote will be considered employees during the
entire term for which they are elected regardless of hours
devoted to the service of the State, and (3) except that
"employee" does not include any person who is not eligible by
reason of such person's employment to participate in one of
the State retirement systems under Articles 2, 14, 15 (either
the regular Article 15 system or the optional retirement
program established under Section 15-158.2) or 18, or under
paragraph (2), (3), or (5) of Section 16-106, of the Illinois
Pension Code, but such term does include persons who are
employed during the 6 month qualifying period under Article
14 of the Illinois Pension Code. Such term also includes any
person who (1) after January 1, 1966, is receiving ordinary
or accidental disability benefits under Articles 2, 14, 15
(including ordinary or accidental disability benefits under
the optional retirement program established under Section
15-158.2), paragraphs (2), (3), or (5) of Section 16-106, or
Article 18 of the Illinois Pension Code, for disability
incurred after January 1, 1966, (2) receives total permanent
or total temporary disability under the Workers' Compensation
Act or Occupational Disease Act as a result of injuries
sustained or illness contracted in the course of employment
with the State of Illinois, or (3) is not otherwise covered
under this Act and has retired as a participating member
under Article 2 of the Illinois Pension Code but is
ineligible for the retirement annuity under Section 2-119 of
the Illinois Pension Code. However, a person who satisfies
the criteria of the foregoing definition of "employee" except
that such person is made ineligible to participate in the
State Universities Retirement System by clause (4) of
subsection (a) of Section 15-107 of the Illinois Pension Code
is also an "employee" for the purposes of this Act.
"Employee" also includes any person receiving or eligible for
benefits under a sick pay plan established in accordance with
Section 36 of the State Finance Act. "Employee" also includes
each officer or employee in the service of a qualified local
government, including persons appointed as trustees of
sanitary districts regardless of hours devoted to the service
of the sanitary district, and each employee in the service of
a qualified rehabilitation facility and each full-time
employee in the service of a qualified domestic violence
shelter or service, as determined according to rules
promulgated by the Director.
(l) "Member" means an employee, annuitant, retired
employee or survivor.
(m) "Optional coverages or benefits" means those
coverages or benefits available to the member on his or her
voluntary election, and at his or her own expense.
(n) "Program" means the group life insurance, health
benefits and other employee benefits designed and contracted
for by the Director under this Act.
(o) "Health plan" means a health benefits program
offered by the State of Illinois for persons eligible for the
plan.
(p) "Retired employee" means any person who would be an
annuitant as that term is defined herein but for the fact
that such person retired prior to January 1, 1966. Such term
also includes any person formerly employed by the University
of Illinois in the Cooperative Extension Service who would be
an annuitant but for the fact that such person was made
ineligible to participate in the State Universities
Retirement System by clause (4) of subsection (a) of Section
15-107 of the Illinois Pension Code.
(q) "Survivor" means a person receiving an annuity as a
survivor of an employee or of an annuitant. "Survivor" also
includes: (1) the surviving dependent of a person who
satisfies the definition of "employee" except that such
person is made ineligible to participate in the State
Universities Retirement System by clause (4) of subsection
(a) of Section 15-107 of the Illinois Pension Code; and (2)
the surviving dependent of any person formerly employed by
the University of Illinois in the Cooperative Extension
Service who would be an annuitant except for the fact that
such person was made ineligible to participate in the State
Universities Retirement System by clause (4) of subsection
(a) of Section 15-107 of the Illinois Pension Code.
(q-5) "New SERS survivor" means a survivor, as defined
in subsection (q), whose annuity is paid under Article 14 of
the Illinois Pension Code and is based on the death of (i) an
employee whose death occurs on or after January 1, 1998, or
(ii) a new SERS annuitant as defined in subsection (b-5).
(q-6) "New SURS survivor" means a survivor, as defined
in subsection (q), whose annuity is paid under Article 15 of
the Illinois Pension Code and is based on the death of (i) an
employee whose death occurs on or after January 1, 1998, or
(ii) a new SURS annuitant as defined in subsection (b-6).
(q-7) "New TRS State survivor" means a survivor, as
defined in subsection (q), whose annuity is paid under
Article 16 of the Illinois Pension Code and is based on the
death of (i) an employee who is a teacher as defined in
paragraph (2), (3), or (5) of Section 16-106 of that Code and
whose death occurs on or after July 1, 1998, or (ii) a new
TRS State annuitant as defined in subsection (b-7).
(r) "Medical services" means the services provided
within the scope of their licenses by practitioners in all
categories licensed under the Medical Practice Act of 1987.
(s) "Unit of local government" means any county,
municipality, township, school district (including a
combination of school districts under the Intergovernmental
Cooperation Act), special district or other unit, designated
as a unit of local government by law, which exercises limited
governmental powers or powers in respect to limited
governmental subjects, any not-for-profit association with a
membership that primarily includes townships and township
officials, that has duties that include provision of research
service, dissemination of information, and other acts for the
purpose of improving township government, and that is funded
wholly or partly in accordance with Section 85-15 of the
Township Code; any not-for-profit corporation or association,
with a membership consisting primarily of municipalities,
that operates its own utility system, and provides research,
training, dissemination of information, or other acts to
promote cooperation between and among municipalities that
provide utility services and for the advancement of the goals
and purposes of its membership; the Southern Illinois
Collegiate Common Market, which is a consortium of higher
education institutions in Southern Illinois; and the Illinois
Association of Park Districts. "Qualified local government"
means a unit of local government approved by the Director and
participating in a program created under subsection (i) of
Section 10 of this Act.
(t) "Qualified rehabilitation facility" means any
not-for-profit organization that is accredited by the
Commission on Accreditation of Rehabilitation Facilities or
certified by the Department of Human Services (as successor
to the Department of Mental Health and Developmental
Disabilities) to provide services to persons with
disabilities and which receives funds from the State of
Illinois for providing those services, approved by the
Director and participating in a program created under
subsection (j) of Section 10 of this Act.
(u) "Qualified domestic violence shelter or service"
means any Illinois domestic violence shelter or service and
its administrative offices funded by the Department of Human
Services (as successor to the Illinois Department of Public
Aid), approved by the Director and participating in a program
created under subsection (k) of Section 10.
(v) "TRS benefit recipient" means a person who:
(1) is not a "member" as defined in this Section;
and
(2) is receiving a monthly benefit or retirement
annuity under Article 16 of the Illinois Pension Code;
and
(3) either (i) has at least 8 years of creditable
service under Article 16 of the Illinois Pension Code, or
(ii) was enrolled in the health insurance program offered
under that Article on January 1, 1996, or (iii) is the
survivor of a benefit recipient who had at least 8 years
of creditable service under Article 16 of the Illinois
Pension Code or was enrolled in the health insurance
program offered under that Article on the effective date
of this amendatory Act of 1995, or (iv) is a recipient or
survivor of a recipient of a disability benefit under
Article 16 of the Illinois Pension Code.
(w) "TRS dependent beneficiary" means a person who:
(1) is not a "member" or "dependent" as defined in
this Section; and
(2) is a TRS benefit recipient's: (A) spouse, (B)
dependent parent who is receiving at least half of his or
her support from the TRS benefit recipient, or (C)
unmarried natural or adopted child who is (i) under age
19, or (ii) enrolled as a full-time student in an
accredited school, financially dependent upon the TRS
benefit recipient, eligible to be claimed as a dependent
for income tax purposes, and either is under age 24 or
was, on January 1, 1996, participating as a dependent
beneficiary in the health insurance program offered under
Article 16 of the Illinois Pension Code, or (iii) age 19
or over who is mentally or physically handicapped.
(x) "Military leave with pay and benefits" refers to
individuals in basic training for reserves, special/advanced
training, annual training, emergency call up, or activation
by the President of the United States with approved pay and
benefits.
(y) "Military leave without pay and benefits" refers to
individuals who enlist for active duty in a regular component
of the U.S. Armed Forces or other duty not specified or
authorized under military leave with pay and benefits.
(z) "Community college benefit recipient" means a person
who:
(1) is not a "member" as defined in this Section;
and
(2) is receiving a monthly survivor's annuity or
retirement annuity under Article 15 of the Illinois
Pension Code; and
(3) either (i) was a full-time employee of a
community college district or an association of community
college boards created under the Public Community College
Act (other than an employee whose last employer under
Article 15 of the Illinois Pension Code was a community
college district subject to Article VII of the Public
Community College Act) and was eligible to participate in
a group health benefit plan as an employee during the
time of employment with a community college district
(other than a community college district subject to
Article VII of the Public Community College Act) or an
association of community college boards, or (ii) is the
survivor of a person described in item (i).
(aa) "Community college dependent beneficiary" means a
person who:
(1) is not a "member" or "dependent" as defined in
this Section; and
(2) is a community college benefit recipient's: (A)
spouse, (B) dependent parent who is receiving at least
half of his or her support from the community college
benefit recipient, or (C) unmarried natural or adopted
child who is (i) under age 19, or (ii) enrolled as a
full-time student in an accredited school, financially
dependent upon the community college benefit recipient,
eligible to be claimed as a dependent for income tax
purposes and under age 23, or (iii) age 19 or over and
mentally or physically handicapped.
(Source: P.A. 91-390, eff. 7-30-99; 91-395, eff. 7-30-99;
91-617, eff. 8-19-99; 92-16, eff. 6-28-01; 92-186, eff.
1-1-02; 92-204, eff. 8-1-01; 92-651, eff. 7-11-02.)
Section 890-43. The Build Illinois Act is amended by
changing Section 8-3 as follows:
(30 ILCS 750/8-3) (from Ch. 127, par. 2708-3)
Sec. 8-3. Powers of the Department. The Department has
the power to:
(a) provide business development public infrastructure
loans or grants from appropriations from the Build Illinois
Bond Fund, the Build Illinois Purposes Fund, the Fund for
Illinois' Future, and the Public Infrastructure Construction
Loan Fund to local governments to provide or improve a
community's public infrastructure so as to create or retain
private sector jobs pursuant to the provisions of this
Article;
(b) provide affordable financing of public
infrastructure loans and grants to, or on behalf of, local
governments, local public entities, medical facilities, and
public health clinics from appropriations from the Public
Infrastructure Construction Loan Fund for the purpose of
assisting with the financing, or application and access to
financing, of a community's public infrastructure necessary
to health, safety, and economic development;
(c) enter into agreements, accept funds or grants, and
engage in cooperation with agencies of the federal
government, or state or local governments to carry out the
purposes of this Article, and to use funds appropriated
pursuant to this Article to participate in federal
infrastructure loan and grant programs upon such terms and
conditions as may be established by the federal government;
(d) establish application, notification, contract, and
other procedures, rules, or regulations deemed necessary and
appropriate to carry out the provisions of this Article;
(e) coordinate assistance under this program with
activities of the Illinois Development Finance Authority in
order to maximize the effectiveness and efficiency of State
development programs;
(f) coordinate assistance under the Affordable Financing
of Public Infrastructure Loan and Grant Program with the
activities of the Illinois Development Finance Authority,
Illinois Finance Authority Rural Bond Bank, Illinois Farm
Development Authority, Illinois Housing Development
Authority, Illinois Environmental Protection Agency, and
other federal and State programs and entities providing
financing assistance to communities for public health,
safety, and economic development infrastructure;
(f-5) provide staff, administration, and related support
required to manage the programs authorized under this Article
and pay for the staffing, administration, and related support
from the Public Infrastructure Construction Loan Revolving
Fund;
(g) exercise such other powers as are necessary or
incidental to the foregoing.
(Source: P.A. 90-454, eff. 8-16-97; 91-34, eff. 7-1-99.)
Section 890-44. The Illinois Pension Code is amended by
changing Section 14-103.04 as follows:
(40 ILCS 5/14-103.04) (from Ch. 108 1/2, par. 14-103.04)
Sec. 14-103.04. Department. "Department": Any
department, institution, board, commission, officer, court,
or any agency of the State having power to certify payrolls
to the State Comptroller authorizing payments of salary or
wages against State appropriations, or against trust funds
held by the State Treasurer, except those departments
included under the term "employer" in the State Universities
Retirement System. "Department" includes the Illinois
Development Finance Authority. "Department" also includes
the Illinois Comprehensive Health Insurance Board and the
Illinois Finance Authority Rural Bond Bank.
(Source: P.A. 90-511, eff. 8-22-97.)
Section 890-90. The following Acts are repealed:
(20 ILCS 3505/Act rep.)
The Illinois Development Finance Authority Act.
(20 ILCS 3605/Act rep.)
The Illinois Farm Development Act.
(20 ILCS 3705/Act rep.)
The Illinois Health Facilities Authority Act.
(20 ILCS 3850/Act rep.)
The Illinois Research Park Authority Act.
(30 ILCS 360/Act rep.)
The Rural Bond Bank Act.
(110 ILCS 1015/Act rep.)
The Illinois Educational Facilities Authority Act.
(315 ILCS 15/Act rep.)
The Illinois Community Development Finance Corporation
Act.
ARTICLE 999
Section 999-99. Effective date. This Act takes effect
on January 1, 2004.