Public Act 097-0790
 
HB5616 EnrolledLRB097 18446 KMW 63673 b


  
    AN ACT concerning local government.
  
 
    Be it enacted by the People of the State of Illinois,
 
represented in the General Assembly:
  
 
 
    Section 5. The Will-Kankakee Regional Development 
Authority Law is amended  by changing Section 7 and  by adding 
Section 14 as follows:
 



    (70 ILCS 535/7)  (from Ch. 85, par. 7457)



    Sec. 7. Bonds. 

    (a) The Authority, with the written approval of the 
Governor,
shall have the continuing power to issue bonds, 
notes, or other evidences
of indebtedness in an aggregate 
amount outstanding not to exceed $250,000,000 $100,000,000 for 
the
purpose of developing, constructing, acquiring or 
improving projects,
including those established by business 
entities locating or expanding
property within the territorial 
jurisdiction of the Authority, for entering
into venture 
capital agreements with businesses locating or expanding

within the territorial jurisdiction of the Authority, for 
acquiring and
improving any property necessary and useful in 
connection therewith and for
the purposes of the Employee 
Ownership Assistance Act.  For the purpose of
evidencing the 
obligations of the Authority to repay any money borrowed,
the 
Authority may, pursuant to resolution, from time to time issue 
and
dispose of its interest bearing revenue bonds, notes or 
other evidences of
indebtedness and may also from time to time 
issue and dispose of such
bonds, notes or other evidences of 
indebtedness to refund, at maturity, at
a redemption date or in 
advance of either, any bonds, notes or other
evidences of 
indebtedness pursuant to redemption provisions or at any time

before maturity.  All such bonds, notes or other evidences of 
indebtedness
shall be payable from the revenues or income to be 
derived from loans made
with respect to projects, from the 
leasing or sale of the projects or from
any other funds 
available to the Authority for such purposes.  The bonds,
notes 
or other evidences of indebtedness may bear such date or dates, 
may
mature at such time or times not exceeding 40 years from 
their respective
dates, may bear interest at such rate or rates 
not exceeding the maximum
rate permitted by the Bond 
Authorization Act, may be in such form, may
carry such 
registration privileges, may be executed in such manner, may be

payable at such place or places, may be made subject to 
redemption in such
manner and upon such terms, with or without 
premium as is stated on the
face thereof, may be authenticated 
in such manner and may contain such
terms and covenants as may 
be provided by an applicable resolution.

    (b-1) The holder or holders of any bonds, notes or other 
evidences of
indebtedness issued by the Authority may bring 
suits at law or proceedings
in equity to compel the performance 
and observance by any corporation or
person or by the Authority 
or any of its agents or employees of any
contract or covenant 
made with the holders of such bonds, notes or other
evidences 
of indebtedness, to compel such corporation, person, 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, notes or
other evidences of indebtedness by 
the provision of the resolution
authorizing their issuance and 
to enjoin such corporation, person, the
Authority and any of 
its agents or employees from taking any action in
conflict with 
any such contract or covenant.

    (b-2) If the Authority fails to pay the principal of or 
interest on any
of the bonds or premium, if any, as the same 
become due, a civil action to
compel payment may be instituted 
in the appropriate circuit court by the
holder or holders of 
the bonds on which such default of payment exists or
by an 
indenture trustee acting on behalf of such holders.  Delivery of 
a
summons and a copy of the complaint to the Chairman of the 
Board shall
constitute sufficient service to give the circuit 
court jurisdiction of the
subject matter of such a suit and 
jurisdiction over the Authority and its
officers named as 
defendants for the purpose of compelling such payment.
Any 
case, controversy or cause of action concerning the validity of 
this Act
relates to the revenue of the State of Illinois.

    (c) Notwithstanding the form and tenor of any such bonds, 
notes or other
evidences of indebtedness and in the absence of 
any express recital on the
face thereof that it is 
non-negotiable, all such bonds, notes and other
evidences of 
indebtedness shall be negotiable instruments.  Pending the

preparation and execution of any such bonds, notes or other 
evidences of
indebtedness, temporary bonds, notes or evidences 
of indebtedness may be
issued as provided by ordinance.

    (d) To secure the payment of any or all of such bonds, 
notes or other
evidences of indebtedness, the revenues to be 
received by the Authority from
a lease agreement or loan 
agreement shall be pledged, and, for the purpose
of setting 
forth the covenants and undertakings of the Authority in

connection with the issuance thereof and the issuance of any 
additional
bonds, notes or other evidences of indebtedness 
payable from such revenues,
income or other funds to be derived 
from projects, the Authority may
execute and deliver a mortgage 
or trust agreement.  A remedy for any breach
or default of the 
terms of any such mortgage or trust agreement by the
Authority 
may be by mandamus proceedings in the appropriate circuit court

to compel the performance and compliance therewith, but the 
trust agreement
may prescribe by whom or on whose behalf such 
action may be instituted.

    (e) Such bonds or notes shall be secured as provided in the 
authorizing
ordinance which may, notwithstanding any other 
provision of this Act,
include in addition to any other 
security a specific pledge or assignment
of and lien on or 
security interest in any or all revenues or money of the

Authority from whatever source which may by law be used for 
debt
service purposes and a specific pledge or assignment of 
and lien on or
security interest in any funds or accounts 
established or provided for by
ordinance of the Authority 
authorizing the issuance of such bonds or notes.

    (f) 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
Chairman, 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 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 shall also be reported to the
Governor. This 
subsection (f) shall not apply to any bond issued on or after 
the effective date of this amendatory Act of the 97th General 
Assembly.

    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 
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.

    (g) The State of Illinois pledges to and agrees with the 
holders of the
bonds and notes of the Authority issued pursuant 
to this Section that the
State will not limit or alter the 
rights and powers vested in the Authority
by this Act so as to 
impair the terms of any contract made by the Authority
with 
such holders or in any way impair the rights and remedies of 
such
holders until such bonds and notes, together with interest 
thereon, with
interest on any unpaid installments of interest, 
and all costs and expenses
in connection with any action or 
proceedings by or on behalf of such
holders, are fully met and 
discharged.  In addition, the State pledges to
and agrees with 
the holders of the bonds and notes of the Authority issued

pursuant to this Section that the State will not limit or alter 
the basis
on which State funds are to be paid to the Authority 
as provided in this
Act, or the use of such funds, so as to 
impair the terms of any such
contract.  The Authority is 
authorized to include these pledges and
agreements of the State 
in any contract with the holders of bonds or notes
issued 
pursuant to this Section.

(Source: P.A. 86-1481; 87-778.)

 
    (70 ILCS 535/14 new)
    Sec. 14. Bonds and notes; exemption from taxation. The 
creation of the Authority is in all respects for the benefit of 
the people of Illinois and for the improvement of their health, 
safety, welfare, comfort, and security, and its purposes are 
public purposes. In consideration thereof, the notes and bonds 
of the Authority issued pursuant to this Act and the income 
from these notes and bonds may be free from all taxation by the 
State or its political subdivisions, except for estate, 
transfer, and inheritance taxes. The exemption from taxation 
set forth in this Section shall apply to the income on any 
notes or bonds of the Authority only if the Authority in its 
sole judgment determines that the exemption enhances the 
marketability of the bonds or notes or reduces the interest 
rates that would otherwise be borne by the bonds or notes. For 
purposes of Section 250 of the Illinois Income Tax Act, the 
exemption of the Authority shall terminate after all of the 
bonds have been paid. The amount of the income that shall be 
added and then subtracted on the Illinois income tax return of 
a taxpayer, subject 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 99. Effective date. This Act takes effect upon 
becoming law.