093_SB1075

 
                                     LRB093 08352 JAM 08571 b

 1        AN ACT concerning the Rural Bond Bank.

 2        Be it enacted by the People of  the  State  of  Illinois,
 3    represented in the General Assembly:

 4        Section  5.   The  Rural  Bond  Bank  Act  is  amended by
 5    changing Section 3-3 as follows:

 6        (30 ILCS 360/3-3) (from Ch. 17, par. 7203-3)
 7        Sec. 3-3.  Bonds and notes of the Bank.
 8        (a)  The Bank may issue its bonds and notes from time  to
 9    time  in any principal amounts that it considers necessary to
10    provide funds for any of the purposes authorized by this Act,
11    including:
12             (1)  the making of loans;
13             (2)  the  payment,  funding  or  refunding  of   the
14        principal  of, or interest or redemption premiums on, any
15        bonds issued by the Bank, whether the bonds  or  interest
16        to  be  funded or refunded have or have not become due or
17        subject to redemption before maturity in accordance  with
18        their terms;
19             (3)  the  establishment  or  increase of reserves to
20        secure or to pay bonds or interest on the bonds; and
21             (4)  all  other  costs  or  expenses  of  the   Bank
22        incident  to and necessary or convenient to carry out its
23        corporate purposes and powers.
24        (b)  Except as expressly provided otherwise in  this  Act
25    or  by  the  Bank,  every  issue  of  bonds  shall be general
26    obligations of the Bank payable out of any revenues or  funds
27    of  the Bank, subject only to any agreements with the holders
28    of particular  bonds  pledging  any  particular  revenues  or
29    funds.  General  obligation bonds may be additionally secured
30    by a pledge of any grants, subsidies, contributions, funds or
31    money  from  the   federal   government,   the   State,   any
 
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 1    governmental  unit,  any  person or a pledge of any income or
 2    revenues, funds or money of the Bank from any source.
 3        Not less than 30 days prior to the  commitment  to  issue
 4    its  bonds,  or  the  making  of  loans  or the purchasing of
 5    securities  for  the   purpose   of   financing   residential
 6    properties  or  related  improvements, the Bank shall provide
 7    notice to the Executive  Director  of  the  Illinois  Housing
 8    Development  Authority.   Within  30  days  after  notice  is
 9    provided,  the  Illinois  Housing Development Authority shall
10    either  in  writing  express  interest   in   financing   the
11    residential  property  or  related improvements or notify the
12    Bank that it is not interested in  providing  such  financing
13    and the Bank may finance it or seek alternative financing.
14             (c)(1)  The   Bank  may  issue  its  notes  for  any
15        corporate purpose of the Bank from time to time,  in  any
16        principal  amounts  that  it considers necessary, and may
17        renew or pay and retire or  refund  the  notes  from  the
18        proceeds  of  bonds  or of other notes, or from any other
19        funds or money of  the  Bank  available  or  to  be  made
20        available   for  that  purpose  in  accordance  with  any
21        contract  between  the  Bank  and  the  noteholders,  not
22        otherwise pledged. The notes shall be issued in the  same
23        manner   as  bonds.  The  notes  and  the  resolution  or
24        resolutions  authorizing  the  notes  may   contain   any
25        provisions,  conditions or limitations which the bonds or
26        a bond resolution of the Bank may contain.
27             (2)  Unless  provided  otherwise  in  any   contract
28        between  the  Bank  and  the  noteholders, and unless the
29        notes have been otherwise paid, funded or  refunded,  the
30        proceeds  of  any  bonds  of the Bank issued, among other
31        things, to fund such outstanding notes,  shall  be  held,
32        used   and  applied  by  the  Bank  to  the  payment  and
33        retirement of  the  principal  of  these  notes  and  the
34        interest due and payable on the notes.
 
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 1             (3)  The Bank may make contracts for the future sale
 2        from  time to time of the notes under which the purchaser
 3        is committed to purchase the notes from time to  time  on
 4        terms  and  conditions stated in the contracts.  The Bank
 5        may pay any consideration that it determines  proper  for
 6        these commitments.
 7        (d)  Whether or not the bonds or notes of the Bank are of
 8    such form and character as to be negotiable instruments under
 9    Article 8 of the Uniform Commercial Code, the bonds and notes
10    shall  be  and  are  made  negotiable  instruments within the
11    meaning of and for all the purposes of the Uniform Commercial
12    Code, subject only to the provisions of the bonds  and  notes
13    for registration.
14        (e)  Bonds  or  notes  of the Bank shall be authorized by
15    resolution of the Bank and may  be  issued  in  one  or  more
16    series.  The resolution or resolutions may provide:
17             (1)  the date or dates the bonds or notes will bear;
18             (2)  the  time  or  times  the  bonds  or notes will
19        mature;
20             (3)  the rate or rates  of  interest  per  year  the
21        bonds or notes will bear;
22             (4)  the  denomination or denominations of the bonds
23        or notes;
24             (5)  the form of the bonds or notes,  either  coupon
25        or registered;
26             (6)  the   conversion   or  registration  privileges
27        carried by the bonds or notes;
28             (7)  the rank or priority of the bonds or notes;
29             (8)  the manner of execution of the bonds or notes;
30             (9)  the sources, medium and place or places, within
31        or outside this State, of payment; and
32             (10)  the terms of redemption of the bonds or notes,
33        with or without premium.
34        (f)  Bonds or notes of the Bank may be sold at public  or
 
                            -4-      LRB093 08352 JAM 08571 b
 1    private  sale at the time or times and at the price or prices
 2    determined by the Bank.
 3        (g)  Upon approval of the Governor, except  as  otherwise
 4    provided  herein,  bonds  or  notes of the Bank may be issued
 5    under this Act without obtaining the  consent  of  any  other
 6    department,  division, commission, board, bureau or agency of
 7    the State, and without any other proceeding or the  happening
 8    of  any  other  conditions  or things than those proceedings,
 9    conditions or things which are specifically required by  this
10    Act.  Approval  of the Governor is not required for issuances
11    of bonds or notes as to which the Bank  has  determined  that
12    subsection (c) of Section 2-6 shall not apply.
13        (h)  The  Bank  may  from time to time issue its notes as
14    provided in this Act and pay and retire  or  fund  or  refund
15    those notes from proceeds of bonds or of other notes, or from
16    any  other funds or money of the Bank available or to be made
17    available for those purposes in accordance with any  contract
18    between  the  Bank  and  the  noteholders.   Unless  provided
19    otherwise in any contract between the Bank and the holders of
20    notes,  and unless the notes have been otherwise paid, funded
21    or refunded, the proceeds of any bonds of  the  Bank  issued,
22    among other things, to fund those outstanding notes, shall be
23    held,  used  and  applied  by  the  Bank  to the payments and
24    retirement of the principal of the notes and the interest due
25    and payable on the notes.
26        (i)  The total aggregate original principal amount of all
27    bonds and notes issued by the Bank and outstanding at any one
28    time shall not exceed  $500,000,000  $245,000,000,  excluding
29    bonds and notes issued to refund outstanding bonds and notes.
30    No  more  than  $87,500,000 $60,000,000 in aggregate original
31    principal amount of all bonds and notes issued  by  the  Bank
32    shall  be  used  to  purchase  local  governmental securities
33    issued by governmental units located in  a  county  having  a
34    population  in  excess of 3,000,000 or in a County contiguous
 
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 1    with a county having a population  in  excess  of  3,000,000.
 2    All  bonds  and  notes issued by the Bank heretofore shall be
 3    deemed to be included in said limits.
 4        The bonds and notes issued by the Bank may bear  interest
 5    at  such  rate  or  rates  not  exceeding  the  maximum  rate
 6    permitted by the Bond Authorization Act.
 7        (j)  The State of Illinois pledges to and agrees with the
 8    holders of the bonds and notes of the Bank issued pursuant to
 9    this  Act  that  the State will not limit or alter the rights
10    and powers vested in the Bank by this Act so as to impair the
11    terms of any contract made by the Bank with those holders  or
12    in  any  way  impair the rights and remedies of those holders
13    until those bonds and notes, together with interest  thereon,
14    with interest on any unpaid installments of interest, and all
15    costs   and   expenses  in  connection  with  any  action  or
16    proceedings by or on behalf of such holders,  are  fully  met
17    and  discharged. In addition, the State pledges to and agrees
18    with the holders of the bonds and notes of  the  Bank  issued
19    pursuant  to  this Act that the State will not limit or alter
20    the basis on which State funds are to be paid to the Bank  as
21    provided  in  this  Act,  or  the use of such funds, so as to
22    impair the terms of any such contract. The Bank is authorized
23    to include these pledges and agreements of the State  in  any
24    contract  with  the holders of bonds or notes issued pursuant
25    to this Act.
26    (Source: P.A. 92-882, eff. 1-13-03.)

27        Section 99.  Effective date.  This Act takes effect  upon
28    becoming law.