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95TH GENERAL ASSEMBLY
State of Illinois
2007 and 2008 HB1412
Introduced 2/21/2007, by Rep. Kurt M. Granberg SYNOPSIS AS INTRODUCED: |
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20 ILCS 3501/801-25 |
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20 ILCS 3501/801-40 |
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20 ILCS 3501/801-50 new |
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20 ILCS 3501/845-40 |
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Amends the Illinois Finance Authority Act. Provides that all official acts of the Authority require the approval of a majority of the members then holding office (instead of 8 members). Provides that a majority of the members of the Authority holding office constitutes a quorum (instead of 8 members). Provides that the Authority may enter into agreements with respect to its bond payment obligations. Provides that any pledge of revenues or other moneys made by the Authority shall be binding from the time the pledge is made, and that revenues and other moneys pledged shall be held outside of the State treasury and shall be subject to certain liens. Allows the Executive Director to countersign checks and drafts. Makes other changes.
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A BILL FOR
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HB1412 |
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LRB095 09807 RCE 30017 b |
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| AN ACT concerning finance.
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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 Illinois Finance Authority Act is amended by |
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| changing Sections 801-25, 801-40, and 845-20 and by adding |
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| Section 801-50 as follows:
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| (20 ILCS 3501/801-25)
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| Sec. 801-25. All official acts of the Authority shall |
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| require the approval
of
a majority of the members then holding |
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| office
at least 8 members . All meetings of the Authority and |
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| the Advisory Councils
shall be conducted in accordance with the |
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| Open Meetings Act. A majority
Eight members of the members then |
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| holding office
Authority shall constitute a quorum. All |
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| meetings shall
be conducted at a single location within this |
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| State with a quorum of members physically present at this |
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| location. Other members who are not physically present at this |
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| location may participate in the meeting and vote on all matters |
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| by means of a video or audio conference. The Auditor General |
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| shall conduct financial audits
and program audits of the |
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| Authority, in accordance with the Illinois State
Auditing Act.
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| (Source: P.A. 93-205, eff. 1-1-04; 93-1101, eff. 3-31-05.)
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| (20 ILCS 3501/801-40)
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HB1412 |
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LRB095 09807 RCE 30017 b |
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| Sec. 801-40. In addition to the powers otherwise authorized |
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| by law and in
addition to the foregoing general corporate |
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| powers, the Authority shall also
have the following additional |
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| specific powers to be exercised in furtherance of
the purposes |
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| of this Act.
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| (a) The Authority shall have power (i) to accept grants, |
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| loans or
appropriations from the federal government or the |
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| State, or any agency or
instrumentality thereof, to be used for |
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| the operating expenses of the
Authority,
or for any purposes of |
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| the Authority, including the making of direct loans of
such |
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| funds with respect to projects, and (ii) to enter into any |
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| agreement with
the federal government or the State, or any |
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| agency or instrumentality thereof,
in relationship to such |
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| grants, loans or appropriations.
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| (b) The Authority shall have power to procure and enter |
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| into contracts for
any
type of insurance and indemnity |
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| agreements covering loss or damage to property
from any cause, |
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| including loss of use and occupancy, or covering any other
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| insurable risk.
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| (c) The Authority shall have the continuing power to issue |
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| bonds for its
corporate purposes. Bonds may be issued by the |
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| Authority in one or more series
and may provide for the payment |
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| of any interest deemed necessary on such bonds,
of the costs of |
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| issuance of such bonds, of any premium on any insurance, or of
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| the cost of any guarantees, letters of credit or other similar |
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| documents, may
provide for the funding of the reserves deemed |
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HB1412 |
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LRB095 09807 RCE 30017 b |
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| necessary in connection with
such bonds, and may provide for |
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| the refunding or advance refunding of any bonds
or
for accounts |
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| deemed necessary in connection with any purpose of the |
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| Authority.
The bonds may bear interest payable at any time or |
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| times and at any rate or
rates, notwithstanding any other |
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| provision of law to the contrary, and such
rate or rates may be |
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| established by an index or formula which may be
implemented or
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| established by persons appointed or retained therefor by the |
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| Authority, or may
bear no interest or may bear interest payable |
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| at maturity or upon redemption
prior to maturity, may bear such |
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| date or dates, may be payable at such time or
times and at such |
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| place or places, may mature at any time or times not later
than |
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| 40 years from the date of issuance, may be sold at public or |
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| private sale
at such time or times and at such price or prices, |
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| may be secured by such
pledges, reserves, guarantees, letters |
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| of credit, insurance contracts or other
similar credit support |
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| or liquidity instruments, may be executed in such
manner, may |
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| be subject to redemption prior to maturity, may provide for the
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| registration of the bonds, and may be subject to such other |
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| terms and
conditions all as may
be provided by the resolution |
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| or indenture authorizing the issuance of such
bonds. The holder |
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| or holders of any bonds issued by the Authority may bring
suits |
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| at law or proceedings in equity to compel the performance and |
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| observance
by any person or by the Authority or any of its |
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| agents or employees of any
contract or covenant made with the |
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| holders of such bonds and to compel such
person or the |
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HB1412 |
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LRB095 09807 RCE 30017 b |
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| Authority and any of its agents or employees to perform any
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| duties
required to be performed for the benefit of the holders |
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| of any such bonds by
the provision of the resolution |
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| authorizing their issuance, and to enjoin such
person or the |
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| Authority and any of its agents or employees from taking any
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| action in conflict with any such contract or covenant.
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| Notwithstanding the form and tenor of any such bonds and in the |
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| absence of any
express recital on the face thereof that it is |
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| non-negotiable, all such bonds
shall be negotiable |
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| instruments. Pending the preparation and execution of any
such |
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| bonds, temporary bonds may be issued as provided by the |
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| resolution.
The bonds shall be sold by the Authority in such |
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| manner as it shall determine.
The bonds may be secured as |
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| provided in the authorizing resolution by the
receipts, |
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| revenues, income and other available funds of the Authority and |
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| by
any amounts derived by the Authority from the loan agreement |
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| or lease agreement
with respect to the project or projects; and |
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| bonds may be issued as general
obligations of the Authority |
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| payable from such revenues, funds and obligations
of the |
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| Authority as the bond resolution shall provide, or may be |
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| issued as
limited obligations with a claim for payment solely |
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| from such revenues, funds
and obligations as the bond |
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| resolution shall provide. The Authority may grant a
specific |
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| pledge or assignment of and lien on or security interest in |
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| such
rights, revenues, income, or amounts and may grant a |
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| specific pledge or
assignment of and lien on or security |
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HB1412 |
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LRB095 09807 RCE 30017 b |
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| interest in any reserves, funds or
accounts established in the |
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| resolution authorizing the issuance of bonds. Any
such pledge, |
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| assignment, lien or security interest for the benefit of the
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| holders of the Authority's bonds shall be valid and binding |
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| from the time the
bonds are issued without any physical |
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| delivery or further act, and shall be
valid and binding as |
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| against and prior to the claims of all other parties
having |
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| claims against the Authority or any other person irrespective |
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| of whether
the
other parties have notice of the pledge, |
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| assignment, lien or security interest.
As evidence of such |
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| pledge, assignment, lien and security interest, the
Authority |
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| may execute and deliver a mortgage, trust agreement, indenture |
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| or
security agreement or an assignment thereof.
A remedy for |
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| any breach or default of the terms of any such agreement by the
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| Authority may be by mandamus proceedings in any court of |
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| competent jurisdiction
to compel the performance and |
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| compliance therewith, but the agreement may
prescribe by whom |
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| or on whose behalf such action may be instituted.
It is |
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| expressly understood that the Authority may, but need not, |
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| acquire title
to any project with respect to which it exercises |
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| its authority.
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| (d) With respect to the powers granted by this Act, the |
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| Authority may adopt
rules and regulations prescribing the |
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| procedures by which persons may apply for
assistance under this |
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| Act. Nothing herein shall be deemed to preclude the
Authority, |
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| prior to the filing of any formal application, from conducting
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HB1412 |
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LRB095 09807 RCE 30017 b |
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| preliminary discussions and investigations with respect to the |
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| subject matter
of any prospective application.
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| (e) The Authority shall have power to acquire by purchase, |
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| lease, gift or
otherwise any property or rights therein from |
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| any person useful for its
purposes, whether improved for the |
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| purposes of any prospective project, or
unimproved. The |
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| Authority may also accept any donation of funds for its
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| purposes from any such source. The Authority shall have no |
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| independent power of
condemnation but may acquire any property |
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| or rights therein obtained upon
condemnation by any other |
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| authority, governmental entity or unit of local
government with |
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| such power.
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| (f) The Authority shall have power to develop, construct |
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| and improve either
under its own direction, or through |
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| collaboration with any approved applicant,
or to acquire |
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| through purchase or otherwise, any project, using for such
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| purpose the proceeds derived from the sale of its bonds or from |
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| governmental
loans or
grants, and to hold title in the name of |
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| the Authority to such projects.
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| (g) The Authority shall have power to lease pursuant to a |
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| lease agreement
any
project so developed and constructed or |
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| acquired to the approved tenant on such
terms and conditions as |
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| may be appropriate to further the purposes of this Act
and to |
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| maintain the credit of the Authority. Any such lease may |
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| provide for
either the Authority or the approved tenant to |
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| assume initially, in whole or in
part, the costs of |
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HB1412 |
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LRB095 09807 RCE 30017 b |
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| maintenance, repair and improvements during the leasehold
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| period. In no case, however, shall the total rentals from any |
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| project during
any initial leasehold period or the total loan |
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| repayments to be made pursuant
to any loan agreement, be less |
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| than an amount necessary to return over such
lease
or loan |
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| period (1) all costs incurred in connection with the |
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| development,
construction, acquisition or improvement of the |
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| project and for repair,
maintenance and improvements thereto |
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| during the period of the lease or loan;
provided, however, that |
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| the rentals or loan repayments need not include costs
met |
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| through the use of funds other than those obtained by the |
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| Authority through
the issuance of its bonds or governmental |
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| loans; (2) a reasonable percentage
additive to be agreed upon |
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| by the Authority and the borrower or tenant to cover
a properly |
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| allocable portion of the Authority's general expenses, |
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| including,
but not limited to, administrative expenses, |
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| salaries and general insurance,
and
(3) an amount sufficient to |
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| pay when due all principal of, interest and
premium, if
any on, |
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| any bonds issued by the Authority with respect to the project. |
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| The
portion of total rentals payable under clause (3) of this |
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| subsection (g) shall
be deposited in such special accounts, |
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| including all sinking funds, acquisition
or construction |
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| funds, debt service and other funds as provided by any
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| resolution, mortgage or trust agreement of the Authority |
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| pursuant to which any
bond is issued.
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| (h) The Authority has the power, upon the termination of |
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HB1412 |
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LRB095 09807 RCE 30017 b |
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| any leasehold
period
of any project, to sell or lease for a |
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| further term or terms such project on
such terms and conditions |
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| as the Authority shall deem reasonable and consistent
with the |
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| purposes of the Act. The net proceeds from all such sales and |
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| the
revenues or income from such leases shall be used to |
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| satisfy any indebtedness
of
the Authority with respect to such |
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| project and any balance may be used to pay
any expenses of the |
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| Authority or be used for the further development,
construction, |
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| acquisition or improvement of projects.
In the event any |
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| project is vacated by a tenant prior to the termination of the
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| initial leasehold period, the Authority shall sell or lease the |
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| facilities of
the project on the most advantageous terms |
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| available. The net proceeds of any
such disposition shall be |
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| treated in the same manner as the proceeds from sales
or the |
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| revenues or income from leases subsequent to the termination of |
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| any
initial leasehold period.
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| (i) The Authority shall have the power to make loans to |
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| persons to finance a
project, to enter into loan agreements |
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| with respect thereto, and to accept
guarantees from persons of |
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| its loans or the resultant evidences of obligations
of the |
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| Authority.
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| (j) The Authority may fix, determine, charge and collect |
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| any premiums, fees,
charges, costs and expenses, including, |
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| without limitation, any application
fees, commitment fees, |
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| program fees, financing charges or publication fees from
any |
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| person in connection with its activities under this Act.
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HB1412 |
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LRB095 09807 RCE 30017 b |
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| (k) In addition to the funds established as provided |
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| herein, the Authority
shall have the power to create and |
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| establish such reserve funds and accounts as
may be necessary |
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| or desirable to accomplish its purposes under this Act and to
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| deposit its available monies into the funds and accounts.
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| (l) At the request of the governing body of any unit of |
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| local government,
the
Authority is authorized to market such |
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| local government's revenue bond
offerings by preparing bond |
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| issues for sale, advertising for sealed bids,
receiving bids
at |
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| its offices, making the award to the bidder that offers the |
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| most favorable
terms or arranging for negotiated placements or |
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| underwritings of such
securities. The Authority may, at its |
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| discretion, offer for concurrent sale the
revenue bonds of |
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| several local governments. Sales by the Authority of revenue
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| bonds under this Section shall in no way imply State guarantee |
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| of such debt
issue. The Authority may require such financial |
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| information from participating
local governments as it deems |
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| necessary in order to carry out the purposes of
this subsection |
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| (1).
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| (m) The Authority may make grants to any county to which |
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| Division 5-37 of
the
Counties Code is applicable to assist in |
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| the financing of capital development,
construction and |
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| renovation of new or existing facilities for hospitals and
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| health care facilities under that Act. Such grants may only be |
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| made from funds
appropriated for such purposes from the Build |
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| Illinois Bond Fund.
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LRB095 09807 RCE 30017 b |
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| (n) The Authority may establish an urban development action |
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| grant program
for
the purpose of assisting municipalities in |
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| Illinois which are experiencing
severe economic distress to |
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| help stimulate economic development activities
needed to aid in |
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| economic recovery. The Authority shall determine the types of
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| activities and projects for which the urban development action |
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| grants may be
used, provided that such projects and activities |
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| are broadly defined to include
all reasonable projects and |
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| activities the primary objectives of which are the
development |
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| of viable urban communities, including decent housing and a
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| suitable living environment, and expansion of economic |
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| opportunity, principally
for
persons of low and moderate |
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| incomes. The Authority shall enter into grant
agreements from |
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| monies appropriated for such purposes from the Build Illinois
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| Bond Fund. The Authority shall monitor the
use of the grants, |
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| and shall provide for audits of the funds as well as
recovery |
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| by the Authority of any funds determined to have been spent in
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| violation of this
subsection (n) or any rule or regulation |
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| promulgated hereunder. The Authority
shall provide technical |
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| assistance with regard to the effective use of the
urban |
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| development action grants. The Authority shall file an annual |
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| report to
the
General Assembly concerning the progress of the |
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| grant program.
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| (o) The Authority may establish a Housing Partnership |
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| Program whereby the
Authority provides zero-interest loans to |
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| municipalities for the purpose of
assisting in the financing of |
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HB1412 |
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LRB095 09807 RCE 30017 b |
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| projects for the rehabilitation of affordable
multi-family |
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| housing for low and moderate income residents. The Authority |
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| may
provide such loans only upon a municipality's providing |
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| evidence that it has
obtained private funding for the |
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| rehabilitation project. The Authority shall
provide 3 State |
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| dollars for every 7 dollars obtained by the municipality from
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| sources other than the State of Illinois. The loans shall be |
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| made from monies
appropriated for such purpose from the Build |
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| Illinois Bond Fund. The total amount of loans available under |
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| the Housing
Partnership Program shall not exceed $30,000,000. |
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| State loan monies under this
subsection shall be used only for |
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| the acquisition and rehabilitation of
existing
buildings |
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| containing 4 or more dwelling units. The terms of any loan made |
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| by
the municipality under this subsection shall require |
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| repayment of the loan to
the municipality upon any sale or |
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| other transfer of the project.
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| (p) The Authority may award grants to universities and |
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| research
institutions,
research consortiums and other |
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| not-for-profit entities for the purposes of:
remodeling or |
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| otherwise physically altering existing laboratory or research
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| facilities, expansion or physical additions to existing |
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| laboratory or research
facilities, construction of new |
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| laboratory or research facilities or
acquisition of modern |
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| equipment to support laboratory or research operations
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| provided that
such grants (i) be used solely in support of |
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| project and equipment acquisitions
which enhance technology |
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LRB095 09807 RCE 30017 b |
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| transfer, and (ii) not constitute more than 60 percent
of the |
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| total project or acquisition cost.
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| (q) Grants may be awarded by the Authority to units of |
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| local government for
the
purpose of developing the appropriate |
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| infrastructure or defraying other costs
to
the local government |
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| in support of laboratory or research facilities provided
that |
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| such grants may not exceed 40% of the cost to the unit of local
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| government.
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| (r) The Authority may establish a Direct Loan Program to |
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| make loans to
individuals, partnerships or corporations for the |
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| purpose of an industrial
project, as defined in
Section 801-10 |
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| of this Act. For the purposes of such program
and not by way of |
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| limitation on any other program of the Authority, the
Authority |
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| shall have the power to issue bonds, notes, or other evidences |
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| of
indebtedness including commercial paper for purposes of |
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| providing a fund of
capital from which it may make such loans. |
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| The Authority shall have the power
to use any appropriations |
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| from the State made especially for the Authority's
Direct Loan |
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| Program for additional capital to make such loans or for the
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| purposes of reserve funds or pledged funds which secure the |
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| Authority's
obligations of repayment of any bond, note or other |
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| form of indebtedness
established for the purpose of providing |
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| capital for which it intends to make
such loans under the |
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| Direct Loan Program. For the purpose of obtaining such
capital, |
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| the Authority may also enter into agreements with financial
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| institutions and other persons for the purpose of selling loans |
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HB1412 |
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LRB095 09807 RCE 30017 b |
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| and developing
a secondary market for such loans.
Loans made |
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| under the Direct Loan Program may be in an amount not to exceed
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| $300,000 and shall be made for a portion of an industrial |
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| project which does
not exceed 50% of the total project. No loan |
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| may be made by the Authority
unless
approved by the affirmative |
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| vote of at least 8 members of the board. The
Authority shall |
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| establish procedures and publish rules which shall provide for
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| the submission, review, and analysis of each direct loan |
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| application and which
shall preserve the ability of each board |
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| member to reach an individual business
judgment regarding the |
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| propriety of making each direct loan. The collective
discretion |
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| of the board to approve or disapprove each loan shall be
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| unencumbered.
The Authority may establish and collect such fees |
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| and charges, determine and
enforce such terms and conditions, |
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| and charge such interest rates as it
determines to be necessary |
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| and appropriate to the successful administration of
the Direct |
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| Loan Program. The Authority may require such interests in |
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| collateral
and such guarantees as it determines are necessary |
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| to project the Authority's
interest in the repayment of the |
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| principal and interest of each loan made under
the Direct Loan |
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| Program.
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| (s) The Authority may guarantee private loans to third |
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| parties up to a
specified dollar amount in order to promote |
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| economic development in this State.
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| (t) The Authority may adopt rules and regulations as may be |
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| necessary or
advisable to implement the powers conferred by |
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HB1412 |
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LRB095 09807 RCE 30017 b |
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| this Act.
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| (u) The Authority shall have the power to issue bonds, |
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| notes or other
evidences
of indebtedness, which may be used to |
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| make loans to units of local government
which are authorized to |
5 |
| enter into loan agreements and other documents and to
issue |
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| bonds, notes and other evidences of indebtedness for the |
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| purpose of
financing the protection of storm sewer outfalls, |
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| the construction of adequate
storm sewer outfalls, and the |
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| provision for flood protection of sanitary sewage
treatment |
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| plans, in counties that have established a stormwater |
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| management
planning committee in accordance with
Section |
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| 5-1062 of the Counties Code. Any
such loan shall be made by the |
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| Authority pursuant to the provisions of
Section
820-5 to 820-60 |
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| of this Act. The unit of local government shall pay back to the
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| Authority the principal amount of the loan, plus annual |
16 |
| interest as determined
by the Authority. The Authority shall |
17 |
| have the power, subject to appropriations
by the General |
18 |
| Assembly, to subsidize or buy down a portion of the interest on
|
19 |
| such loans, up to 4% per annum.
|
20 |
| (v) The Authority may accept security interests as provided |
21 |
| in
Sections 11-3
and 11-3.3 of the Illinois Public Aid Code.
|
22 |
| (w) Moral Obligation. In the event that the Authority |
23 |
| determines that monies
of the Authority will not be sufficient |
24 |
| for the payment of the principal of and
interest on its bonds |
25 |
| during the next State fiscal year, the Chairperson, as
soon as |
26 |
| practicable, shall certify to the Governor the amount required |
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| by the
Authority to enable it to pay such principal of and |
2 |
| interest on the bonds. The
Governor shall submit the amount so |
3 |
| certified to the General Assembly as soon
as
practicable, but |
4 |
| no later than the end of the current State fiscal year. This
|
5 |
| subsection shall apply only to any bonds or notes as to which |
6 |
| the Authority
shall have determined, in the resolution |
7 |
| authorizing the issuance of the bonds
or notes, that this |
8 |
| subsection shall apply. Whenever the Authority makes such a
|
9 |
| determination, that fact shall be plainly stated on the face of |
10 |
| the bonds or
notes and that fact shall also be reported to the |
11 |
| Governor. In the event of a
withdrawal of moneys from a reserve |
12 |
| fund established with respect to any issue
or issues of bonds |
13 |
| of the Authority to pay principal or interest on those
bonds,
|
14 |
| the Chairperson of the Authority, as soon as practicable, shall |
15 |
| certify to the
Governor the amount required to restore the |
16 |
| reserve fund to the level required
in the resolution or |
17 |
| indenture securing those bonds. The Governor shall submit
the |
18 |
| amount so certified to the General Assembly as soon as |
19 |
| practicable, but no
later than the end of the current State |
20 |
| fiscal year. The Authority shall obtain
written approval from |
21 |
| the Governor for any bonds and notes to be issued under
this |
22 |
| Section.
In addition to any other bonds authorized to be issued |
23 |
| under
Sections 825-60, 825-65(e), 830-25 and 845-5, the |
24 |
| principal amount of Authority
bonds outstanding
issued under |
25 |
| this
Section 801-40(w) or under 20 ILCS 3850/1-80 or 30 ILCS |
26 |
| 360/2-6(c), which have
been
assumed by the Authority, shall not |
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| exceed $150,000,000.
|
2 |
| (x) The Authority may enter into agreements or contracts |
3 |
| with any person necessary or appropriate to place the payment |
4 |
| obligations of the Authority under any of its bonds in whole or |
5 |
| in part on any interest rate basis, cash flow basis, or other |
6 |
| basis desired by the Authority, including without limitation |
7 |
| agreements or contracts commonly known as "interest rate swap |
8 |
| agreements", "forward payment conversion agreements", and |
9 |
| "futures", or agreements or contracts to exchange cash flows or |
10 |
| a series of payments, or agreements or contracts, including |
11 |
| without limitation agreements or contracts commonly known as |
12 |
| "options", "puts", or "calls", to hedge payment, rate spread, |
13 |
| or similar exposure; provided that any such agreement or |
14 |
| contract shall not constitute an obligation for borrowed money |
15 |
| and shall not be taken into account under Section 845-5 of this |
16 |
| Act or any other debt limit of the Authority or the State of |
17 |
| Illinois.
|
18 |
| (Source: P.A. 93-205, eff. 1-1-04; 94-91, eff. 7-1-05.)
|
19 |
| (20 ILCS 3501/801-50 new) |
20 |
| Sec. 801-50. Pledge of revenues by the Authority; |
21 |
| non-impairment. Any pledge of revenues or other moneys made by |
22 |
| the Authority shall be binding from the time the pledge is |
23 |
| made. Revenues and other moneys so pledged shall be held |
24 |
| outside of the State treasury and in the custody of either the |
25 |
| Treasurer of the Authority or a trustee or a depository |
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| appointed by the Authority. Revenues or other moneys so pledged |
2 |
| and thereafter received by the Authority or trustee or |
3 |
| depository shall immediately be subject to the lien of the |
4 |
| pledge without any physical delivery thereof or further act, |
5 |
| and the lien of any pledge shall be binding against all parties |
6 |
| having claims of any kind in tort, contract, or otherwise |
7 |
| against the Authority, irrespective of whether the parties have |
8 |
| notice thereof. Neither the resolution nor any other instrument |
9 |
| by which a pledge is created need be filed or recorded except |
10 |
| in the records of the Authority. The State pledges and agrees |
11 |
| with the holders of bonds or other obligations of the Authority |
12 |
| that the State will not limit or restrict the rights hereby |
13 |
| vested in the Authority to purchase, acquire, hold, sell, or |
14 |
| dispose of investments or to establish and collect such fees or |
15 |
| other charges as may be convenient or necessary to produce |
16 |
| sufficient revenues to meet the expenses of operation to the |
17 |
| Authority, and to fulfill the terms of any agreement made with |
18 |
| the holders of the bonds or other obligations of the Authority |
19 |
| or in any way impair the rights or remedies of the holders of |
20 |
| those bonds or other obligations of the Authority until such |
21 |
| bonds or other obligations are fully paid and discharged or |
22 |
| provision for their payment has been made.
|
23 |
| (20 ILCS 3501/845-40)
|
24 |
| Sec. 845-40. The Authority shall appoint a secretary and |
25 |
| treasurer, who
may,
but need not, be a member or members of the |
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| Authority to hold office during the
pleasure of the Authority. |
2 |
| Before entering upon the duties of the respective
offices such |
3 |
| person or persons shall take and subscribe to the |
4 |
| constitutional
oath of office, and the treasurer shall execute |
5 |
| a bond with corporate sureties
to be approved by the Authority. |
6 |
| The bond shall be payable to the Authority in
whatever penal |
7 |
| sum may be directed by the Authority conditioned upon the
|
8 |
| faithful performance of the duties of the office and the |
9 |
| payment of all money
received by him according to law and the |
10 |
| orders of the Authority. The Authority
may, at any time, |
11 |
| require a new bond from the treasurer in such penal sum as
may
|
12 |
| then be determined by the Authority. The obligation of the |
13 |
| sureties shall not
extend to any loss sustained by the |
14 |
| insolvency, failure or closing of any
savings and loan |
15 |
| association or national or state bank wherein the treasurer
has
|
16 |
| deposited funds if the bank or savings and loan association has |
17 |
| been approved
by
the Authority as a depository for these funds. |
18 |
| The oaths of office and the
treasurer's bond shall be filed in |
19 |
| the principal office of the Authority.
All funds of the |
20 |
| Authority, including without limitation, grants or loans from
|
21 |
| the federal government, the State or any agency or |
22 |
| instrumentality thereof,
fees, service charges, interest or |
23 |
| other investment earnings on its funds,
payments of principal |
24 |
| of and interest on loans of its funds and revenue from
any
|
25 |
| other source, except funds the application of which is |
26 |
| otherwise specifically
provided for by appropriation, |
|
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| resolution, grant agreement, lease agreement,
loan agreement, |
2 |
| indenture, mortgage or trust agreement or other agreement, may
|
3 |
| be held by the Authority in its treasury and be generally |
4 |
| available for
expenditure by the Authority for any of the |
5 |
| purposes authorized by this Act. In
addition to investments |
6 |
| authorized by
Section 2 of
the Public Funds Investment Act, |
7 |
| funds of the Authority may be invested in (a)
obligations |
8 |
| issued by
any
State, unit of local government or school |
9 |
| district which obligations are rated
at the time of purchase by |
10 |
| a national rating service within the two highest
rating |
11 |
| classifications without regard to any rating refinement or |
12 |
| gradation by
numerical or other modifier, or (b) equity |
13 |
| securities of an investment company
registered under the |
14 |
| Investment Company Act of 1940 whose sole assets, other
than |
15 |
| cash and other temporary investments, are obligations which are |
16 |
| eligible
investments for the Authority, provided that not more |
17 |
| than 20% of the assets of
the investment company may consist of |
18 |
| unrated obligations of the type described
in clause (a) which |
19 |
| the Board of Directors of the investment company has
determined |
20 |
| to be of comparable quality to rated obligations described in |
21 |
| clause
(a). Funds appropriated by the General Assembly to the |
22 |
| Authority shall be held
in the
State treasury unless this Act |
23 |
| or the Act making the appropriation specifically
states that |
24 |
| the monies are to be held in or appropriated to the Authority's
|
25 |
| treasury.
Such funds as are authorized to be held in the |
26 |
| Authority's treasury and
deposited in any bank or savings and |
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| loan association and placed in the name of
the Authority shall |
2 |
| be withdrawn or paid out only by check or draft upon the
bank |
3 |
| or savings and loan association, signed by the treasurer and |
4 |
| countersigned
by the Chairperson or the Executive Director of |
5 |
| the Authority. The Authority may designate any of its
members |
6 |
| or any officer or employee of the Authority to affix the |
7 |
| signature of
the Chairperson and another to affix the signature |
8 |
| of the treasurer to any
check
or draft for payment of salaries |
9 |
| or wages and for payment of any other
obligations of not more |
10 |
| than $2,500.
In case any officer whose signature appears upon |
11 |
| any check or draft, issued
pursuant to this Act, ceases to hold |
12 |
| his office before the delivery thereof to
the payee, his |
13 |
| signature nevertheless shall be valid and sufficient for all
|
14 |
| purposes with the same effect as if he had remained in office |
15 |
| until delivery
thereof.
No bank or savings and loan association |
16 |
| shall receive public funds as permitted
by this
Section, unless |
17 |
| it has complied with the requirements established
pursuant to
|
18 |
| Section 6 of the Public Funds Investment Act.
|
19 |
| (Source: P.A. 93-205, eff. 1-1-04.)
|