Full Text of HB0510 94th General Assembly
HB0510 94TH GENERAL ASSEMBLY
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94TH GENERAL ASSEMBLY
State of Illinois
2005 and 2006 HB0510
Introduced 1/27/2005, by Rep. Kurt M. Granberg SYNOPSIS AS INTRODUCED: |
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70 ILCS 520/7 |
from Ch. 85, par. 6157 |
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Amends Southwestern Illinois Development Authority Act. Authorizes Authority to issue bonds for the promotion of tourism by capital improvement projects.
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FISCAL NOTE ACT MAY APPLY | |
STATE DEBT IMPACT NOTE ACT MAY APPLY |
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A BILL FOR
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HB0510 |
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LRB094 05049 AJO 35084 b |
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| AN ACT concerning special districts.
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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 Southwestern Illinois Development Authority | 5 |
| Act is amended by changing Section 7 as follows:
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| (70 ILCS 520/7) (from Ch. 85, par. 6157)
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| Sec. 7. (a) The Authority, with the written approval of the | 8 |
| Governor,
shall have the continuing power to issue bonds, | 9 |
| notes, or other evidences
of indebtedness for the purpose of | 10 |
| developing, constructing, acquiring or
improving projects, | 11 |
| including without limitation those established by
business | 12 |
| entities locating or expanding property within the territorial
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| jurisdiction of the Authority, for entering into venture | 14 |
| capital agreements
with businesses locating or expanding | 15 |
| within the territorial jurisdiction
of the Authority, for | 16 |
| acquiring and improving any property necessary and
useful in | 17 |
| connection therewith, for the purposes of the Employee | 18 |
| Ownership
Assistance Act, encouraging and promoting tourism by | 19 |
| capital improvement projects located within the territorial | 20 |
| jurisdiction of the Authority, and any local government | 21 |
| projects. With respect to any
local government project, the | 22 |
| Authority is authorized to purchase from time
to time pursuant | 23 |
| to negotiated sale or to otherwise acquire from time to
time | 24 |
| any local government security upon terms and conditions as the
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| Authority may prescribe in connection therewith. For the | 26 |
| purpose of
evidencing the obligations of the Authority to repay | 27 |
| any money borrowed for
any project, the Authority may, pursuant | 28 |
| to resolution, from time to time
issue and dispose of its | 29 |
| interest bearing revenue bonds, notes or other
evidences of | 30 |
| indebtedness and may also from time to time issue and dispose
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| of such bonds, notes or other evidences of indebtedness to | 32 |
| refund, at
maturity, at a redemption date or in advance of |
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HB0510 |
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LRB094 05049 AJO 35084 b |
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| either, any bonds, notes or
other evidences of indebtedness | 2 |
| pursuant to redemption provisions or at any
time before | 3 |
| maturity. All such bonds, notes or other evidences of
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| indebtedness shall be payable solely and only from the revenues | 5 |
| or income
to be derived from loans made with respect to | 6 |
| projects, from the leasing or
sale of the projects or from any | 7 |
| other funds available to the Authority for
such purposes. The | 8 |
| bonds, notes or other evidences of indebtedness may
bear such | 9 |
| date or dates, may mature at such time or times not exceeding | 10 |
| 40
years from their respective dates, notwithstanding any other | 11 |
| law to the
contrary may bear interest at such rate or rates | 12 |
| payable annually,
semi-annually, quarterly or monthly, may be | 13 |
| in such form, may carry such
registration privileges, may be | 14 |
| executed in such manner, may be payable at
such place or | 15 |
| places, may be made subject to redemption in such manner and
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| upon such terms, with or without premium as is stated on the | 17 |
| face thereof,
may be authenticated in such manner and may | 18 |
| contain such terms and
covenants as may be provided by an | 19 |
| applicable resolution.
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| (b)(1) The holder or holders of any bonds, notes or other | 21 |
| evidences of
indebtedness issued by the Authority may bring | 22 |
| suits at law or proceedings
in equity to compel the | 23 |
| performance and observance by any corporation or
person or | 24 |
| by the Authority or any of its agents or employees of any
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| contract or covenant made with the holders of such bonds, | 26 |
| notes or other
evidences of indebtedness, to compel such | 27 |
| corporation, person, the
Authority and any of its agents or | 28 |
| employees to perform any duties required
to be performed | 29 |
| for the benefit of the holders of any such bonds, notes or
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| other evidences of indebtedness by the provision of the | 31 |
| resolution
authorizing their issuance and to enjoin such | 32 |
| corporation, person, the
Authority and any of its agents or | 33 |
| employees from taking any action in
conflict with any such | 34 |
| contract or covenant.
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| (2) If the Authority fails to pay the principal of or | 36 |
| interest on any
of the bonds or premium, if any, as the |
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HB0510 |
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| same become due, a civil action to
compel payment may be | 2 |
| instituted in the appropriate circuit court by the
holder | 3 |
| or holders of the bonds on which such default of payment | 4 |
| exists or
by an indenture trustee acting on behalf of such | 5 |
| holders. Delivery of a
summons and a copy of the complaint | 6 |
| to the Chairman of the Board shall
constitute sufficient | 7 |
| service to give the circuit court jurisdiction of the
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| subject matter of such a suit and jurisdiction over the | 9 |
| Authority and its
officers named as defendants for the | 10 |
| purpose of compelling such payment.
Any case, controversy | 11 |
| or cause of action concerning the validity of this Act
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| relates to the revenue of the State of Illinois.
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| (c) Notwithstanding the form and tenor of any such bonds, | 14 |
| notes or other
evidences of indebtedness and in the absence of | 15 |
| any express recital on the
face thereof that it is | 16 |
| non-negotiable, all such bonds, notes and other
evidences of | 17 |
| indebtedness shall be negotiable instruments. Pending the
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| preparation and execution of any such bonds, notes or other | 19 |
| evidences of
indebtedness, temporary bonds, notes or evidences | 20 |
| of indebtedness may be
issued as provided by ordinance.
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| (d) To secure the payment of any or all of such bonds, | 22 |
| notes or other
evidences of indebtedness, the revenues to be | 23 |
| received by the Authority from
a lease agreement or loan | 24 |
| agreement shall be pledged, and, for the purpose
of setting | 25 |
| forth the covenants and undertakings of the Authority in
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| connection with the issuance thereof and the issuance of any | 27 |
| additional
bonds, notes or other evidences of indebtedness | 28 |
| payable from such revenues,
income or other funds to be derived | 29 |
| from projects, the Authority may
execute and deliver a mortgage | 30 |
| or trust agreement. A remedy for any breach
or default of the | 31 |
| terms of any such mortgage or trust agreement by the
Authority | 32 |
| may be by mandamus proceedings in the appropriate circuit court
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| to compel the performance and compliance therewith, but the | 34 |
| trust agreement
may prescribe by whom or on whose behalf such | 35 |
| action may be instituted.
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| (e) Such bonds or notes shall be secured as provided in the |
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| authorizing
ordinance which may, notwithstanding any other | 2 |
| provision of this Act,
include in addition to any other | 3 |
| security a specific pledge or assignment
of and lien on or | 4 |
| security interest in any or all revenues or money of the
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| Authority from whatever source which may by law be used for | 6 |
| debt
service purposes and a specific pledge or assignment of | 7 |
| and lien on or
security interest in any funds or accounts | 8 |
| established or provided for by
ordinance of the Authority | 9 |
| authorizing the issuance of such bonds or notes
and, with | 10 |
| respect to any local government project, may include without
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| limitation a pledge of any local government securities, | 12 |
| including any
payments thereon.
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| (f) In the event that the Authority determines that monies | 14 |
| of the
Authority will not be sufficient for the payment of the | 15 |
| principal of and
interest on its bonds during the next State | 16 |
| fiscal year, the Chairman, as
soon as practicable, shall | 17 |
| certify to the Governor the amount required by
the Authority to | 18 |
| enable it to pay such principal of and interest on the
bonds. | 19 |
| The Governor shall submit the amount so certified to the | 20 |
| General
Assembly as soon as practicable, but no later than the | 21 |
| end of the current
State fiscal year. This subsection shall not | 22 |
| apply to any bonds or notes as
to which the Authority shall | 23 |
| have determined, in the resolution authorizing
the issuance of | 24 |
| the bonds or notes, that this subsection shall not apply.
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| Whenever the Authority makes such a determination, that fact | 26 |
| shall be
plainly stated on the face of the bonds or notes, and | 27 |
| that fact shall also
be reported to the Governor.
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| In the event of a withdrawal of moneys from a reserve fund | 29 |
| established
with respect to any issue or issues of bonds of the | 30 |
| Authority to pay
principal or interest on those bonds, the | 31 |
| Chairman of the Authority, as
soon as practicable, shall | 32 |
| certify to the Governor the amount required
to restore the | 33 |
| reserve fund to the level required in the resolution or
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| indenture securing those bonds. The Governor shall submit the | 35 |
| amount so
certified to the General Assembly as soon as | 36 |
| practicable, but no later than
the end of the current State |
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| fiscal year.
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| (g) The State of Illinois pledges to and agrees with the | 3 |
| holders of the
bonds and notes of the Authority issued pursuant | 4 |
| to this Section that the
State will not limit or alter the | 5 |
| rights and powers vested in the Authority
by this Act so as to | 6 |
| impair the terms of any contract made by the Authority
with | 7 |
| such holders or in any way impair the rights and remedies of | 8 |
| such
holders until such bonds and notes, together with interest | 9 |
| thereon, with
interest on any unpaid installments of interest, | 10 |
| and all costs and expenses
in connection with any action or | 11 |
| proceedings by or on behalf of such
holders, are fully met and | 12 |
| discharged. In addition, the State pledges to
and agrees with | 13 |
| the holders of the bonds and notes of the Authority issued
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| pursuant to this Section that the State will not limit or alter | 15 |
| the basis
on which State funds are to be paid to the Authority | 16 |
| as provided in this
Act, or the use of such funds, so as to | 17 |
| impair the terms of any such
contract. The Authority is | 18 |
| authorized to include these pledges and
agreements of the State | 19 |
| in any contract with the holders of bonds or notes
issued under | 20 |
| this Section.
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| (Source: P.A. 86-1455; 87-778.)
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