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95TH GENERAL ASSEMBLY
State of Illinois
2007 and 2008 HB0176
Introduced 1/19/2007, by Rep. Jim Watson SYNOPSIS AS INTRODUCED: |
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Amends the Illinois Development Finance Authority Act. Provides that specialized livestock operations include livestock operations using anaerobic digestors to generate electricity for the purposes of a Section providing certain financing benefits to livestock operations.
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A BILL FOR
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HB0176 |
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LRB095 03786 HLH 23816 b |
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| AN ACT concerning State government.
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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 Section 830-50 as follows:
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| (20 ILCS 3501/830-50)
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| Sec. 830-50. Specialized Livestock Guarantee Program.
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| (a) The Authority is authorized to issue State Guarantees |
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| to lenders for
loans
to finance or refinance debts for |
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| specialized livestock operations that are or
will be located in |
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| Illinois. For purposes of this
Section, a "specialized
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| livestock operation" includes, but is not limited to, dairy, |
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| beef, and swine
enterprises. For purposes of this Section, a |
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| specialized livestock operation also includes livestock |
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| operations using anaerobic digestors to generate electricity.
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| (b) Lenders shall apply for the State Guarantees on forms |
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| provided by the
Authority and certify that the application and |
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| any other documents submitted
are true and correct. The lender |
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| or borrower, or both in combination, shall pay
an |
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| administrative fee as determined by the Authority. The |
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| applicant shall be
responsible for paying any fee or charge |
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| involved in recording mortgages,
releases, financing |
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| statements, insurance for secondary market issues, and any
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HB0176 |
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LRB095 03786 HLH 23816 b |
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| other similar fee or charge that the Authority may require. The |
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| application
shall, at a minimum, contain the farmer's name, |
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| address, present credit and
financial information, including |
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| cash flow statements, financial statements,
balance sheets, |
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| and any other information pertinent to the application, and the
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| collateral to be used to secure the State Guarantee. In |
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| addition, the borrower
must certify to the Authority that, at |
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| the time the State Guarantee is
provided,
the borrower will not |
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| be delinquent in the repayment of any debt. The lender
must |
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| agree to charge a fixed or adjustable interest rate that the |
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| Authority
determines to be below the market rate of interest |
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| generally available to the
borrower. If both the lender and |
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| applicant agree, the interest rate on the
State guaranteed loan |
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| can be converted to a fixed interest rate at any time
during |
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| the term of the loan.
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| (c) State Guarantees provided under this
Section (i) shall |
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| not exceed
$1,000,000 per applicant, (ii) shall be no longer |
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| than 15 years in duration,
and
(iii) shall be subject to an |
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| annual review and renewal by the lender and the
Authority. An |
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| applicant may use this program more than once, provided that |
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| the
aggregate principal amount of State Guarantees under this
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| Section to that
applicant does not exceed $1,000,000. A State |
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| Guarantee shall not be revoked by
the Authority without a |
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| 90-day notice, in writing, to all parties.
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| (d) The Authority shall provide or renew a State Guarantee |
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| to a lender if:
(i) The lender pays a fee equal to 25 basis |
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HB0176 |
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LRB095 03786 HLH 23816 b |
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| points on the loan to the Authority
on
an annual basis. (ii) |
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| The application provides collateral acceptable to the
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| Authority that is at least equal to the State Guarantee. (iii) |
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| The lender
assumes all responsibility and costs for pursuing |
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| legal action on collecting
any
loan that is delinquent or in |
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| default. (iv) The lender is at risk for the first
15% of the |
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| outstanding principal of the note for which the State Guarantee |
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| is
provided.
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| (e) The Illinois Farmer and Agribusiness Loan Guarantee |
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| Fund may be used to
secure State Guarantees issued under this
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| Section as provided in
Section 830-35.
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| (f) Notwithstanding the provisions of this
Section 830-50 |
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| with respect to the
specialized livestock operations and |
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| lenders who may obtain State Guarantees,
the Authority may |
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| promulgate rules establishing the eligibility of specialized
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| livestock operations and lenders to participate in the State |
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| Guarantee program
and the terms, standards, and procedures that |
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| will apply, when the Authority
finds that emergency conditions |
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| in Illinois agriculture have created the need
for State |
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| Guarantees pursuant to terms, standards, and procedures other |
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| than
those specified in this Section.
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| (Source: P.A. 93-205, eff. 1-1-04.)
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