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| Public Act 096-0196 |
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AN ACT concerning local government.
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Be it enacted by the People of the State of Illinois,
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represented in the General Assembly:
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Section 5. The Quad Cities Regional Economic Development
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Authority Act, approved September 22, 1987 is amended by | ||||
changing Section 9 as follows:
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(70 ILCS 510/9) (from Ch. 85, par. 6209)
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Sec. 9. Bonds and notes. (a)(1) The Authority may, with the | ||||
written
approval of the Governor, at any time and from time to | ||||
time, issue bonds and
notes for any corporate purpose, | ||||
including the establishment of reserves and
the payment of | ||||
interest. In this Act the term "bonds" includes notes of
any | ||||
kind, interim certificates, refunding bonds or any other | ||||
evidence of obligation.
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(2) The bonds of any issue shall be payable solely from the | ||||
property or
receipts of the Authority, including, without | ||||
limitation:
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(I) fees, charges or other revenues payable to the | ||||
Authority;
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(II) payments by financial institutions, insurance | ||||
companies, or others
pursuant to letters or lines of credit, | ||||
policies of insurance, or purchase agreements;
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(III) investment earnings from funds or accounts | ||||
maintained pursuant to
a bond resolution or trust agreement; | ||
and
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(IV) proceeds of refunding bonds.
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(3) Bonds shall be authorized by a resolution of the | ||
Authority and may
be secured by a trust agreement by and | ||
between the Authority and a
corporate trustee or trustees, | ||
which may be any trust company or bank
having the powers of a | ||
trust company within or without the State. Bonds shall:
| ||
(I) be issued at, above or below par value, for cash or | ||
other valuable
consideration, and mature at time or times, | ||
whether as serial bonds or as
term bonds or both, not exceeding | ||
40 years from their respective date of
issue; however, the | ||
length of the term of the bond should bear a reasonable
| ||
relationship to the value life of the item financed;
| ||
(II) bear interest at the fixed or variable rate or rates | ||
determined by
the method provided in the resolution or trust | ||
agreement;
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(III) be payable at a time or times, in the denominations | ||
and form,
either coupon or registered or both, and carry the | ||
registration and
privileges as to conversion and for the | ||
replacement of mutilated, lost or
destroyed bonds as the | ||
resolution or trust agreement may provide;
| ||
(IV) be payable in lawful money of the United States at a | ||
designated place;
| ||
(V) be subject to the terms of purchase, payment, | ||
redemption, refunding
or refinancing that the resolution or | ||
trust agreement provides;
| ||
(VI) be executed by the manual or facsimile signatures of | ||
the officers
of the Authority designated by the Authority, | ||
which signatures shall be
valid at delivery even for one who | ||
has ceased to hold office; and
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(VII) be sold in the manner and upon the terms determined | ||
by the Authority.
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(b) Any resolution or trust agreement may contain | ||
provisions which shall
be a part of the contract with the | ||
holders of the bonds as to:
| ||
(1) pledging, assigning or directing the use, investment or | ||
disposition
of receipts of the Authority or proceeds or | ||
benefits of any contract and
conveying or otherwise securing | ||
any property or property rights;
| ||
(2) the setting aside of loan funding deposits, debt | ||
service reserves,
capitalized interest accounts, cost of | ||
issuance accounts and sinking funds,
and the regulations, | ||
investment and disposition thereof;
| ||
(3) limitations on the purpose to which or the investments | ||
in which the
proceeds of sale of any issue of bonds may be | ||
applied and restrictions to
investment of revenues or bond | ||
proceeds in government obligations for which
principal and | ||
interest are unconditionally guaranteed by the United States of | ||
America;
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(4) limitations on the issue of additional bonds, the terms | ||
upon which
additional bonds may be issued and secured, the | ||
terms upon which additional
bonds may rank on a parity with, or | ||
be subordinate or superior to, other bonds;
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(5) the refunding or refinancing of outstanding bonds;
| ||
(6) the procedure, if any, by which the terms of any | ||
contract with
bondholders may be altered or amended and the | ||
amount of bonds and holders
of which must consent thereto, and | ||
the manner in which consent shall be given;
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(7) defining the acts or omissions which shall constitute a | ||
default in
the duties of the Authority to holders of bonds and | ||
providing the rights or
remedies of such holders in the event | ||
of a default which may include
provisions restricting | ||
individual right of action by bondholders;
| ||
(8) providing for guarantees, pledges of property, letters | ||
of credit, or
other security, or insurance for the benefit of | ||
bondholders; and
| ||
(9) any other matter relating to the bonds which the | ||
Authority determines appropriate.
| ||
(c) No member of the Authority nor any person executing the | ||
bonds shall
be liable personally on the bonds or subject to any | ||
personal liability by
reason of the issuance of the bonds.
| ||
(d) The Authority may enter into agreements with agents, | ||
banks, insurers
or others for the purpose of enhancing the | ||
marketability of or as security for its bonds.
| ||
(e)(1) A pledge by the Authority of revenues as security | ||
for an issue of
bonds shall be valid and binding from the time | ||
when the pledge is made.
| ||
(2) The revenues pledged shall immediately be subject to | ||
the lien of the
pledge without any physical delivery or further | ||
act, and the lien of any
pledge shall be valid and binding | ||
against any person having any claim of
any kind in tort, | ||
contract or otherwise against the Authority, irrespective
of | ||
whether the person has notice.
| ||
(3) No resolution, trust agreement or financing statement, | ||
continuation
statement, or other instrument adopted or entered | ||
into by the Authority
need be filed or recorded in any public | ||
record other than the records of
the authority in order to | ||
perfect the lien against third persons,
regardless of any | ||
contrary provision of law.
| ||
(f) The Authority may issue bonds to refund any of its | ||
bonds then
outstanding, including the payment of any redemption | ||
premium and any
interest accrued or to accrue to the earliest | ||
or any subsequent date of
redemption, purchase or maturity of | ||
the bonds. Refunding bonds may be
issued for the public | ||
purposes of realizing savings in the effective costs
of debt | ||
service, directly or through a debt restructuring, for | ||
alleviating
impending or actual default and may be issued in | ||
one or more series in an
amount in excess of that of the bonds | ||
to be refunded.
| ||
(g) Bonds or notes of the Authority may be sold by the | ||
Authority through
the process of competitive bid or negotiated | ||
sale.
| ||
(h) At no time shall the total outstanding bonds and notes | ||
of the
Authority exceed $250 $100 million.
| ||
(i) The bonds and notes of the Authority shall not be debts | ||
of the State.
| ||
(j) In no event may proceeds of bonds or notes issued by | ||
the Authority
be used to finance any structure which is not | ||
constructed pursuant to an
agreement between the Authority and | ||
a party, which provides for the
delivery by the party of a | ||
completed structure constructed pursuant to a
fixed price | ||
contract, and which provides for the delivery of such structure
| ||
at such fixed price to be insured or guaranteed by a third | ||
party determined
by the Authority to be capable of completing | ||
construction of such a structure.
| ||
(Source: P.A. 85-713.)
| ||
Section 10. The Quad Cities Regional Economic Development
| ||
Authority Act, certified December 30, 1987 is amended by | ||
changing Section 9 as follows:
| ||
(70 ILCS 515/9) (from Ch. 85, par. 6509)
| ||
Sec. 9. Bonds and notes. (a)(1) The Authority may, with the | ||
written
approval of the Governor, at any time and from time to | ||
time, issue bonds and
notes for any corporate purpose, | ||
including the establishment of reserves and
the payment of | ||
interest. In this Act the term "bonds" includes notes of
any | ||
kind, interim certificates, refunding bonds or any other | ||
evidence of obligation.
| ||
(2) The bonds of any issue shall be payable solely from the | ||
property or
receipts of the Authority, including, without | ||
limitation:
| ||
(I) fees, charges or other revenues payable to the | ||
Authority;
| ||
(II) payments by financial institutions, insurance | ||
companies, or others
pursuant to letters or lines of credit, | ||
policies of insurance, or purchase agreements;
| ||
(III) investment earnings from funds or accounts | ||
maintained pursuant to
a bond resolution or trust agreement; | ||
and
| ||
(IV) proceeds of refunding bonds.
| ||
(3) Bonds shall be authorized by a resolution of the | ||
Authority and may
be secured by a trust agreement by and | ||
between the Authority and a
corporate trustee or trustees, | ||
which may be any trust company or bank
having the powers of a | ||
trust company within or without the State. Bonds shall:
| ||
(I) be issued at, above or below par value, for cash or | ||
other valuable
consideration, and mature at time or times, | ||
whether as serial bonds or as
term bonds or both, not exceeding | ||
40 years from their respective date of
issue; however, the | ||
length of the term of the bond should bear a reasonable
| ||
relationship to the value life of the item financed;
| ||
(II) bear interest at the fixed or variable rate or rates | ||
determined by
the method provided in the resolution or trust | ||
agreement;
| ||
(III) be payable at a time or times, in the denominations | ||
and form,
either coupon or registered or both, and carry the | ||
registration and
privileges as to conversion and for the | ||
replacement of mutilated, lost or
destroyed bonds as the | ||
resolution or trust agreement may provide;
| ||
(IV) be payable in lawful money of the United States at a | ||
designated place;
| ||
(V) be subject to the terms of purchase, payment, | ||
redemption, refunding
or refinancing that the resolution or | ||
trust agreement provides;
| ||
(VI) be executed by the manual or facsimile signatures of | ||
the officers
of the Authority designated by the Authority, | ||
which signatures shall be
valid at delivery even for one who | ||
has ceased to hold office; and
| ||
(VII) be sold in the manner and upon the terms determined | ||
by the Authority.
| ||
(b) Any resolution or trust agreement may contain | ||
provisions which shall
be a part of the contract with the | ||
holders of the bonds as to:
| ||
(1) pledging, assigning or directing the use, investment or | ||
disposition
of receipts of the Authority or proceeds or | ||
benefits of any contract and
conveying or otherwise securing | ||
any property or property rights;
| ||
(2) the setting aside of loan funding deposits, debt | ||
service reserves,
capitalized interest accounts, cost of | ||
issuance accounts and sinking funds,
and the regulations, | ||
investment and disposition thereof;
| ||
(3) limitations on the purpose to which or the investments | ||
in which the
proceeds of sale of any issue of bonds may be | ||
applied and restrictions to
investment of revenues or bond | ||
proceeds in government obligations for which
principal and | ||
interest are unconditionally guaranteed by the United States of | ||
America;
| ||
(4) limitations on the issue of additional bonds, the terms | ||
upon which
additional bonds may be issued and secured, the | ||
terms upon which additional
bonds may rank on a parity with, or | ||
be subordinate or superior to, other bonds;
| ||
(5) the refunding or refinancing of outstanding bonds;
| ||
(6) the procedure, if any, by which the terms of any | ||
contract with
bondholders may be altered or amended and the | ||
amount of bonds and holders
of which must consent thereto, and | ||
the manner in which consent shall be given;
| ||
(7) defining the acts or omissions which shall constitute a | ||
default in
the duties of the Authority to holders of bonds and | ||
providing the rights or
remedies of such holders in the event | ||
of a default which may include
provisions restricting | ||
individual right of action by bondholders;
| ||
(8) providing for guarantees, pledges of property, letters | ||
of credit, or
other security, or insurance for the benefit of | ||
bondholders; and
| ||
(9) any other matter relating to the bonds which the | ||
Authority determines appropriate.
| ||
(c) No member of the Authority nor any person executing the | ||
bonds shall
be liable personally on the bonds or subject to any | ||
personal liability by
reason of the issuance of the bonds.
| ||
(d) The Authority may enter into agreements with agents, | ||
banks, insurers
or others for the purpose of enhancing the | ||
marketability of or as security for its bonds.
| ||
(e)(1) A pledge by the Authority of revenues as security | ||
for an issue of
bonds shall be valid and binding from the time | ||
when the pledge is made.
| ||
(2) The revenues pledged shall immediately be subject to | ||
the lien of the
pledge without any physical delivery or further | ||
act, and the lien of any
pledge shall be valid and binding | ||
against any person having any claim of
any kind in tort, | ||
contract or otherwise against the Authority, irrespective
of | ||
whether the person has notice.
| ||
(3) No resolution, trust agreement or financing statement, | ||
continuation
statement, or other instrument adopted or entered | ||
into by the Authority
need be filed or recorded in any public | ||
record other than the records of
the authority in order to | ||
perfect the lien against third persons,
regardless of any | ||
contrary provision of law.
| ||
(f) The Authority may issue bonds to refund any of its | ||
bonds then
outstanding, including the payment of any redemption | ||
premium and any
interest accrued or to accrue to the earliest | ||
or any subsequent date of
redemption, purchase or maturity of | ||
the bonds. Refunding bonds may be
issued for the public | ||
purposes of realizing savings in the effective costs
of debt | ||
service, directly or through a debt restructuring, for | ||
alleviating
impending or actual default and may be issued in | ||
one or more series in an
amount in excess of that of the bonds | ||
to be refunded.
| ||
(g) Bonds or notes of the Authority may be sold by the | ||
Authority through
the process of competitive bid or negotiated | ||
sale.
| ||
(h) At no time shall the total outstanding bonds and notes | ||
of the
Authority exceed $250 $100 million.
| ||
(i) The bonds and notes of the Authority shall not be debts | ||
of the State.
| ||
(j) In no event may proceeds of bonds or notes issued by | ||
the Authority
be used to finance any structure which is not | ||
constructed pursuant to an
agreement between the Authority and | ||
a party, which provides for the
delivery by the party of a | ||
completed structure constructed pursuant to a
fixed price | ||
contract, and which provides for the delivery of such structure
| ||
at such fixed price to be insured or guaranteed by a third | ||
party determined
by the Authority to be capable of completing | ||
construction of such a structure.
| ||
(Source: P.A. 85-988.)
| ||
(70 ILCS 510/9.1 rep.)
| ||
Section 15. The Quad Cities Regional Economic Development
| ||
Authority Act, approved September 22, 1987 is amended by | ||
repealing Section 9.1.
| ||
(70 ILCS 515/9.1 rep.)
| ||
Section 20. The Quad Cities Regional Economic Development
| ||
Authority Act, certified December 30, 1987 is amended by | ||
repealing Section 9.1. | ||