SB1977 Engrossed

LRB094 11537 BDD 42507 b






1
    AN ACT concerning finance.

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


 
4
    Section 5. The Quad Cities Regional Economic Development

5
Authority Act, approved September 22, 1987 is amended  by 
6
changing Section 9 as follows:
 



7
    (70 ILCS 510/9)  (from Ch. 85, par. 6209)



8
    Sec. 9. Bonds and notes. (a)(1) The Authority may, with the 
9
written
approval of the Governor, at any time and from time to 
10
time, issue bonds and
notes for any corporate purpose, 
11
including the establishment of reserves and
the payment of 
12
interest.  In this Act the term "bonds" includes notes of
any 
13
kind, interim certificates, refunding bonds or any other 
14
evidence of obligation.

15
    (2) The bonds of any issue shall be payable solely from the 
16
property or
receipts of the Authority, including, without 
17
limitation:

18
    (I) fees, charges or other revenues payable to the 
19
Authority;

20
    (II) payments by financial institutions, insurance 
21
companies, or others
pursuant to letters or lines of credit, 
22
policies of insurance, or purchase agreements;

23
    (III) investment earnings from funds or accounts 
24
maintained pursuant to
a bond resolution or trust agreement; 
25
and

26
    (IV) proceeds of refunding bonds.

27
    (3) Bonds shall be authorized by a resolution of the 
28
Authority and may
be secured by a trust agreement by and 
29
between the Authority and a
corporate trustee or trustees, 
30
which may be any trust company or bank
having the powers of a 
31
trust company within or without the State.  Bonds shall:

32
    (I) be issued at, above or below par value, for cash or 
 


 






SB1977 Engrossed
- 2 -
LRB094 11537 BDD 42507 b




1
other valuable
consideration, and mature at time or times, 
2
whether as serial bonds or as
term bonds or both, not exceeding 
3
40 years from their respective date of
issue; however, the 
4
length of the term of the bond should bear a reasonable

5
relationship to the value life of the item financed;

6
    (II) bear interest at the fixed or variable rate or rates 
7
determined by
the method provided in the resolution or trust 
8
agreement;

9
    (III) be payable at a time or times, in the denominations 
10
and form,
either coupon or registered or both, and carry the 
11
registration and
privileges as to conversion and for the 
12
replacement of mutilated, lost or
destroyed bonds as the 
13
resolution or trust agreement may provide;

14
    (IV) be payable in lawful money of the United States at a 
15
designated place;

16
    (V) be subject to the terms of purchase, payment, 
17
redemption, refunding
or refinancing that the resolution or 
18
trust agreement provides;

19
    (VI) be executed by the manual or facsimile signatures of 
20
the officers
of the Authority designated by the Authority, 
21
which signatures shall be
valid at delivery even for one who 
22
has ceased to hold office; and

23
    (VII) be sold in the manner and upon the terms determined 
24
by the Authority.

25
    (b) Any resolution or trust agreement may contain 
26
provisions which shall
be a part of the contract with the 
27
holders of the bonds as to:

28
    (1) pledging, assigning or directing the use, investment or 
29
disposition
of receipts of the Authority or proceeds or 
30
benefits of any contract and
conveying or otherwise securing 
31
any property or property rights;

32
    (2) the setting aside of loan funding deposits, debt 
33
service reserves,
capitalized interest accounts, cost of 
34
issuance accounts and sinking funds,
and the regulations, 
35
investment and disposition thereof;

36
    (3) limitations on the purpose to which or the investments 
 


 






SB1977 Engrossed
- 3 -
LRB094 11537 BDD 42507 b




1
in which the
proceeds of sale of any issue of bonds may be 
2
applied and restrictions to
investment of revenues or bond 
3
proceeds in government obligations for which
principal and 
4
interest are unconditionally guaranteed by the United States of 
5
America;

6
    (4) limitations on the issue of additional bonds, the terms 
7
upon which
additional bonds may be issued and secured, the 
8
terms upon which additional
bonds may rank on a parity with, or 
9
be subordinate or superior to, other bonds;

10
    (5) the refunding or refinancing of outstanding bonds;

11
    (6) the procedure, if any, by which the terms of any 
12
contract with
bondholders may be altered or amended and the 
13
amount of bonds and holders
of which must consent thereto, and 
14
the manner in which consent shall be given;

15
    (7) defining the acts or omissions which shall constitute a 
16
default in
the duties of the Authority to holders of bonds and 
17
providing the rights or
remedies of such holders in the event 
18
of a default which may include
provisions restricting 
19
individual right of action by bondholders;

20
    (8) providing for guarantees, pledges of property, letters 
21
of credit, or
other security, or insurance for the benefit of 
22
bondholders; and

23
    (9) any other matter relating to the bonds which the 
24
Authority determines appropriate.

25
    (c) No member of the Authority nor any person executing the 
26
bonds shall
be liable personally on the bonds or subject to any 
27
personal liability by
reason of the issuance of the bonds.

28
    (d) The Authority may enter into agreements with agents, 
29
banks, insurers
or others for the purpose of enhancing the 
30
marketability of or as security for its bonds.

31
    (e)(1) A pledge by the Authority of revenues as security 
32
for an issue of
bonds shall be valid and binding from the time 
33
when the pledge is made.

34
    (2) The revenues pledged shall immediately be subject to 
35
the lien of the
pledge without any physical delivery or further 
36
act, and the lien of any
pledge shall be valid and binding 
 


 






SB1977 Engrossed
- 4 -
LRB094 11537 BDD 42507 b




1
against any person having any claim of
any kind in tort, 
2
contract or otherwise against the Authority, irrespective
of 
3
whether the person has notice.

4
    (3) No resolution, trust agreement or financing statement, 
5
continuation
statement, or other instrument adopted or entered 
6
into by the Authority
need be filed or recorded in any public 
7
record other than the records of
the authority in order to 
8
perfect the lien against third persons,
regardless of any 
9
contrary provision of law.

10
    (f) The Authority may issue bonds to refund any of its 
11
bonds then
outstanding, including the payment of any redemption 
12
premium and any
interest accrued or to accrue to the earliest 
13
or any subsequent date of
redemption, purchase or maturity of 
14
the bonds.  Refunding bonds may be
issued for the public 
15
purposes of realizing savings in the effective costs
of debt 
16
service, directly or through a debt restructuring, for 
17
alleviating
impending or actual default and may be issued in 
18
one or more series in an
amount in excess of that of the bonds 
19
to be refunded.

20
    (g) Bonds or notes of the Authority may be sold by the 
21
Authority through
the process of competitive bid or negotiated 
22
sale.

23
    (h) At no time shall the total outstanding bonds and notes 
24
of the
Authority exceed $250 million
$100 million.

25
    (i) The bonds and notes of the Authority shall not be debts 
26
of the State.

27
    (j) In no event may proceeds of bonds or notes issued by 
28
the Authority
be used to finance any structure which is not 
29
constructed pursuant to an
agreement between the Authority and 
30
a party, which provides for the
delivery by the party of a 
31
completed structure constructed pursuant to a
fixed price 
32
contract, and which provides for the delivery of such structure

33
at such fixed price to be insured or guaranteed by a third 
34
party determined
by the Authority to be capable of completing 
35
construction of such a structure.

36
(Source: P.A. 85-713.)


 
 


 






SB1977 Engrossed
- 5 -
LRB094 11537 BDD 42507 b




1
    Section 10. The Quad Cities Regional Economic Development

2
Authority Act, certified December 30, 1987 is amended  by 
3
changing Section 9 as follows:
 



4
    (70 ILCS 515/9)  (from Ch. 85, par. 6509)


5
    Sec. 9. Bonds and notes. (a)(1) The Authority may, with the 
6
written
approval of the Governor, at any time and from time to 
7
time, issue bonds and
notes for any corporate purpose, 
8
including the establishment of reserves and
the payment of 
9
interest.  In this Act the term "bonds" includes notes of
any 
10
kind, interim certificates, refunding bonds or any other 
11
evidence of obligation.

12
    (2) The bonds of any issue shall be payable solely from the 
13
property or
receipts of the Authority, including, without 
14
limitation:

15
    (I) fees, charges or other revenues payable to the 
16
Authority;

17
    (II) payments by financial institutions, insurance 
18
companies, or others
pursuant to letters or lines of credit, 
19
policies of insurance, or purchase agreements;

20
    (III) investment earnings from funds or accounts 
21
maintained pursuant to
a bond resolution or trust agreement; 
22
and

23
    (IV) proceeds of refunding bonds.

24
    (3) Bonds shall be authorized by a resolution of the 
25
Authority and may
be secured by a trust agreement by and 
26
between the Authority and a
corporate trustee or trustees, 
27
which may be any trust company or bank
having the powers of a 
28
trust company within or without the State.  Bonds shall:

29
    (I) be issued at, above or below par value, for cash or 
30
other valuable
consideration, and mature at time or times, 
31
whether as serial bonds or as
term bonds or both, not exceeding 
32
40 years from their respective date of
issue; however, the 
33
length of the term of the bond should bear a reasonable

34
relationship to the value life of the item financed;

 


 






SB1977 Engrossed
- 6 -
LRB094 11537 BDD 42507 b




1
    (II) bear interest at the fixed or variable rate or rates 
2
determined by
the method provided in the resolution or trust 
3
agreement;

4
    (III) be payable at a time or times, in the denominations 
5
and form,
either coupon or registered or both, and carry the 
6
registration and
privileges as to conversion and for the 
7
replacement of mutilated, lost or
destroyed bonds as the 
8
resolution or trust agreement may provide;

9
    (IV) be payable in lawful money of the United States at a 
10
designated place;

11
    (V) be subject to the terms of purchase, payment, 
12
redemption, refunding
or refinancing that the resolution or 
13
trust agreement provides;

14
    (VI) be executed by the manual or facsimile signatures of 
15
the officers
of the Authority designated by the Authority, 
16
which signatures shall be
valid at delivery even for one who 
17
has ceased to hold office; and

18
    (VII) be sold in the manner and upon the terms determined 
19
by the Authority.

20
    (b) Any resolution or trust agreement may contain 
21
provisions which shall
be a part of the contract with the 
22
holders of the bonds as to:

23
    (1) pledging, assigning or directing the use, investment or 
24
disposition
of receipts of the Authority or proceeds or 
25
benefits of any contract and
conveying or otherwise securing 
26
any property or property rights;

27
    (2) the setting aside of loan funding deposits, debt 
28
service reserves,
capitalized interest accounts, cost of 
29
issuance accounts and sinking funds,
and the regulations, 
30
investment and disposition thereof;

31
    (3) limitations on the purpose to which or the investments 
32
in which the
proceeds of sale of any issue of bonds may be 
33
applied and restrictions to
investment of revenues or bond 
34
proceeds in government obligations for which
principal and 
35
interest are unconditionally guaranteed by the United States of 
36
America;

 


 






SB1977 Engrossed
- 7 -
LRB094 11537 BDD 42507 b




1
    (4) limitations on the issue of additional bonds, the terms 
2
upon which
additional bonds may be issued and secured, the 
3
terms upon which additional
bonds may rank on a parity with, or 
4
be subordinate or superior to, other bonds;

5
    (5) the refunding or refinancing of outstanding bonds;

6
    (6) the procedure, if any, by which the terms of any 
7
contract with
bondholders may be altered or amended and the 
8
amount of bonds and holders
of which must consent thereto, and 
9
the manner in which consent shall be given;

10
    (7) defining the acts or omissions which shall constitute a 
11
default in
the duties of the Authority to holders of bonds and 
12
providing the rights or
remedies of such holders in the event 
13
of a default which may include
provisions restricting 
14
individual right of action by bondholders;

15
    (8) providing for guarantees, pledges of property, letters 
16
of credit, or
other security, or insurance for the benefit of 
17
bondholders; and

18
    (9) any other matter relating to the bonds which the 
19
Authority determines appropriate.

20
    (c) No member of the Authority nor any person executing the 
21
bonds shall
be liable personally on the bonds or subject to any 
22
personal liability by
reason of the issuance of the bonds.

23
    (d) The Authority may enter into agreements with agents, 
24
banks, insurers
or others for the purpose of enhancing the 
25
marketability of or as security for its bonds.

26
    (e)(1) A pledge by the Authority of revenues as security 
27
for an issue of
bonds shall be valid and binding from the time 
28
when the pledge is made.

29
    (2) The revenues pledged shall immediately be subject to 
30
the lien of the
pledge without any physical delivery or further 
31
act, and the lien of any
pledge shall be valid and binding 
32
against any person having any claim of
any kind in tort, 
33
contract or otherwise against the Authority, irrespective
of 
34
whether the person has notice.

35
    (3) No resolution, trust agreement or financing statement, 
36
continuation
statement, or other instrument adopted or entered 
 


 






SB1977 Engrossed
- 8 -
LRB094 11537 BDD 42507 b




1
into by the Authority
need be filed or recorded in any public 
2
record other than the records of
the authority in order to 
3
perfect the lien against third persons,
regardless of any 
4
contrary provision of law.

5
    (f) The Authority may issue bonds to refund any of its 
6
bonds then
outstanding, including the payment of any redemption 
7
premium and any
interest accrued or to accrue to the earliest 
8
or any subsequent date of
redemption, purchase or maturity of 
9
the bonds.  Refunding bonds may be
issued for the public 
10
purposes of realizing savings in the effective costs
of debt 
11
service, directly or through a debt restructuring, for 
12
alleviating
impending or actual default and may be issued in 
13
one or more series in an
amount in excess of that of the bonds 
14
to be refunded.

15
    (g) Bonds or notes of the Authority may be sold by the 
16
Authority through
the process of competitive bid or negotiated 
17
sale.

18
    (h) At no time shall the total outstanding bonds and notes 
19
of the
Authority exceed $250 million
$100 million.

20
    (i) The bonds and notes of the Authority shall not be debts 
21
of the State.

22
    (j) In no event may proceeds of bonds or notes issued by 
23
the Authority
be used to finance any structure which is not 
24
constructed pursuant to an
agreement between the Authority and 
25
a party, which provides for the
delivery by the party of a 
26
completed structure constructed pursuant to a
fixed price 
27
contract, and which provides for the delivery of such structure

28
at such fixed price to be insured or guaranteed by a third 
29
party determined
by the Authority to be capable of completing 
30
construction of such a structure.

31
(Source: P.A. 85-988.)