Full Text of SB1783 96th General Assembly
SB1783 96TH GENERAL ASSEMBLY
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96TH GENERAL ASSEMBLY
State of Illinois
2009 and 2010 SB1783
Introduced 2/20/2009, by Sen. Mike Jacobs SYNOPSIS AS INTRODUCED: |
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70 ILCS 510/4 |
from Ch. 85, par. 6204 |
70 ILCS 510/9 |
from Ch. 85, par. 6209 |
70 ILCS 515/4 |
from Ch. 85, par. 6504 |
70 ILCS 515/9 |
from Ch. 85, par. 6509 |
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Amends both the Quad Cities Regional Economic Development
Authority Acts. Provides that the territory of the Authority shall also include JoDaviess, Carroll, Whiteside, and Stephenson Counties. Provides for the appointment of additional members to the Board of the Authority. Provides that the additional members shall be appointed by the county board chairpersons of JoDaviess, Carroll, Whiteside, and Stephenson Counties. Increases the bonding power of the Authority to $250,000,000 (now, $100,000,000).
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FISCAL NOTE ACT MAY APPLY | |
HOUSING AFFORDABILITY IMPACT NOTE ACT MAY APPLY |
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A BILL FOR
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SB1783 |
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LRB096 11147 RLJ 21516 b |
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| 1 |
| AN ACT concerning local government.
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| 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 Sections 4 and 9 as follows:
| 7 |
| (70 ILCS 510/4) (from Ch. 85, par. 6204)
| 8 |
| Sec. 4. (a) There is hereby created a political | 9 |
| subdivision, body politic
and municipal corporation named the | 10 |
| Quad Cities Regional Economic Development
Authority.
The | 11 |
| territorial jurisdiction of the Authority is that geographic | 12 |
| area
within the boundaries of JoDaviess, Carroll, Whiteside, | 13 |
| Stephenson, Rock Island, Henry, Knox, and Mercer counties in
| 14 |
| the State of
Illinois and any navigable waters and air space | 15 |
| located therein.
| 16 |
| (b) The governing and administrative powers of the | 17 |
| Authority shall be
vested in a body consisting of 15
11 members | 18 |
| including, as an ex officio
member,
the Director of Commerce | 19 |
| and Economic Opportunity, or his or her
designee.
The other 10 | 20 |
| members of the Authority
shall be designated "public members", | 21 |
| 6 of whom shall be
appointed by the Governor
with the advice | 22 |
| and consent of the Senate. Of the 6 members
appointed by
the | 23 |
| Governor, one shall be from a city within the Authority's |
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| territory
with a population of 25,000 or more and the remainder | 2 |
| shall be appointed at
large. Of the 6 members appointed by the | 3 |
| Governor, 2 members shall
have
business or finance experience. | 4 |
| One member shall be appointed by each of
the county board | 5 |
| chairmen of Rock Island, Henry, Knox, and Mercer
Counties with | 6 |
| the advice and consent of the respective county board.
Within | 7 |
| 60 days of the effective date of this amendatory Act of the | 8 |
| 96th General Assembly, one additional public member shall be | 9 |
| appointed by each of the county board chairpersons of | 10 |
| JoDaviess, Carroll, Whiteside, and Stephenson counties with | 11 |
| the advice and consent of the respective county board. Of the | 12 |
| public members added by this amendatory Act of the 96th General | 13 |
| Assembly, one shall serve for a one-year term, one shall serve | 14 |
| for a 2-year term, and 2 shall serve for 3-year terms, to be | 15 |
| determined by lot. Their successors shall serve for 3-year | 16 |
| terms. All public members shall reside within the territorial | 17 |
| jurisdiction of this
Act. Eight
Six members shall constitute a | 18 |
| quorum.
The public members shall be
persons of recognized | 19 |
| ability and
experience in one or more of the following areas: | 20 |
| economic development,
finance, banking, industrial | 21 |
| development, small business management, real
estate | 22 |
| development, community development, venture finance, organized | 23 |
| labor
or civic, community or neighborhood organization. The | 24 |
| Chairman of the
Authority shall be a public member elected by | 25 |
| the affirmative vote of not
fewer than 6 members of the | 26 |
| Authority , except that any chairperson elected on or after the |
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| effective date of this amendatory Act of the 96th General | 2 |
| Assembly shall be elected by the affirmative vote of not fewer | 3 |
| than 8 members . The term of the Chairman
shall be one year.
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| (c) The terms of the initial
all members of the Authority | 5 |
| shall begin 30 days after
the effective date of this Act, | 6 |
| except (i) the terms of those
members added by this
amendatory | 7 |
| Act of 1989 shall begin 30 days after the effective
date of | 8 |
| this amendatory Act of 1989 and (ii) the terms of those members | 9 |
| added
by this amendatory Act of the 92nd General Assembly shall | 10 |
| begin 30 days after
the effective date of this amendatory Act | 11 |
| of the 92nd General Assembly. Of
the 10 public members
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| appointed pursuant to this Act, 2 (one of whom shall be | 13 |
| appointed by the
Governor) shall serve until the
third Monday | 14 |
| in January, 1989, 2 (one of whom shall be appointed by the
| 15 |
| Governor) shall serve until the third Monday in
January, 1990, | 16 |
| 2
(one of whom shall be appointed by the Governor) shall serve | 17 |
| until the
third Monday in January, 1991, 2 (both of whom shall | 18 |
| be appointed by
the Governor) shall serve until the third | 19 |
| Monday in January, 1992, and 2 (one
of whom shall be appointed | 20 |
| by the Governor and one of whom shall be appointed
by the | 21 |
| county board chairman of Knox County) shall serve until the | 22 |
| third Monday
in January, 2004.
The initial terms of the members | 23 |
| appointed by the county board chairmen
(other than the county | 24 |
| board chairman of Knox County)
shall be determined by lot. All | 25 |
| successors shall be appointed by the
original appointing | 26 |
| authority and
hold office for a term of 3 years commencing the |
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| third
Monday in January of the year in which their term | 2 |
| commences, except in case
of an appointment to fill a vacancy.
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| Vacancies
occurring among the public members shall be filled | 4 |
| for the
remainder of the term.
In case of vacancy in a | 5 |
| Governor-appointed membership when
the Senate is not in | 6 |
| session, the Governor may make a temporary appointment
until | 7 |
| the next meeting of the Senate when a person shall be nominated | 8 |
| to
fill such office, and any person so nominated who is | 9 |
| confirmed by the
Senate shall hold office during the remainder | 10 |
| of the term and until a
successor shall be appointed and | 11 |
| qualified.
Members of the Authority shall not be entitled to | 12 |
| compensation for their
services
as members but shall be | 13 |
| entitled to reimbursement for all necessary
expenses incurred | 14 |
| in connection with the performance of their duties as members.
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| (d) The Governor may remove any public member of the | 16 |
| Authority appointed
by the Governor in case
of incompetency, | 17 |
| neglect of duty, or malfeasance in office. The Chairman
of a | 18 |
| county board may remove any public member of the Authority | 19 |
| appointed
by such Chairman in the case of incompetency, neglect | 20 |
| of duty, or malfeasance in office.
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| (e) The Board shall appoint an Executive Director who shall | 22 |
| have a
background in finance, including familiarity with the | 23 |
| legal and
procedural requirements of issuing bonds, real estate | 24 |
| or economic
development and administration. The Executive | 25 |
| Director shall hold office
at the discretion of the Board. The | 26 |
| Executive Director shall be the chief
administrative and |
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| operational officer of the Authority, shall direct
and | 2 |
| supervise its administrative affairs and general management, | 3 |
| shall perform
such other duties as may be prescribed from time | 4 |
| to time by the members and
shall receive compensation fixed by | 5 |
| the Authority.
The Authority may engage the services of such
| 6 |
| other agents and employees, including attorneys, appraisers, | 7 |
| engineers,
accountants, credit analysts and other consultants, | 8 |
| as it may deem
advisable and may prescribe their duties and fix | 9 |
| their compensation.
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| (f) The Board shall create a task force to study and make
| 11 |
| recommendations to the Board on the economic development of the | 12 |
| territory
within the jurisdiction of this Act. The number of | 13 |
| members
constituting the task force shall be set by the Board | 14 |
| and may vary from
time to time. The Board may set a specific | 15 |
| date by which the task force is
to submit its final report and | 16 |
| recommendations to the Board.
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| (Source: P.A. 94-793, eff. 5-19-06.)
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| (70 ILCS 510/9) (from Ch. 85, par. 6209)
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| Sec. 9. Bonds and notes. (a)(1) The Authority may, with the | 20 |
| written
approval of the Governor, at any time and from time to | 21 |
| time, issue bonds and
notes for any corporate purpose, | 22 |
| including the establishment of reserves and
the payment of | 23 |
| interest. In this Act the term "bonds" includes notes of
any | 24 |
| kind, interim certificates, refunding bonds or any other | 25 |
| evidence of obligation.
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| (2) The bonds of any issue shall be payable solely from the | 2 |
| property or
receipts of the Authority, including, without | 3 |
| limitation:
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| (I) fees, charges or other revenues payable to the | 5 |
| Authority;
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| (II) payments by financial institutions, insurance | 7 |
| companies, or others
pursuant to letters or lines of credit, | 8 |
| policies of insurance, or purchase agreements;
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| (III) investment earnings from funds or accounts | 10 |
| maintained pursuant to
a bond resolution or trust agreement; | 11 |
| and
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| (IV) proceeds of refunding bonds.
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| (3) Bonds shall be authorized by a resolution of the | 14 |
| Authority and may
be secured by a trust agreement by and | 15 |
| between the Authority and a
corporate trustee or trustees, | 16 |
| which may be any trust company or bank
having the powers of a | 17 |
| trust company within or without the State. Bonds shall:
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| (I) be issued at, above or below par value, for cash or | 19 |
| other valuable
consideration, and mature at time or times, | 20 |
| whether as serial bonds or as
term bonds or both, not exceeding | 21 |
| 40 years from their respective date of
issue; however, the | 22 |
| length of the term of the bond should bear a reasonable
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| relationship to the value life of the item financed;
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| (II) bear interest at the fixed or variable rate or rates | 25 |
| determined by
the method provided in the resolution or trust | 26 |
| agreement;
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| (III) be payable at a time or times, in the denominations | 2 |
| and form,
either coupon or registered or both, and carry the | 3 |
| registration and
privileges as to conversion and for the | 4 |
| replacement of mutilated, lost or
destroyed bonds as the | 5 |
| resolution or trust agreement may provide;
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| (IV) be payable in lawful money of the United States at a | 7 |
| designated place;
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| (V) be subject to the terms of purchase, payment, | 9 |
| redemption, refunding
or refinancing that the resolution or | 10 |
| trust agreement provides;
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| (VI) be executed by the manual or facsimile signatures of | 12 |
| the officers
of the Authority designated by the Authority, | 13 |
| which signatures shall be
valid at delivery even for one who | 14 |
| has ceased to hold office; and
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| (VII) be sold in the manner and upon the terms determined | 16 |
| by the Authority.
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| (b) Any resolution or trust agreement may contain | 18 |
| provisions which shall
be a part of the contract with the | 19 |
| holders of the bonds as to:
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| (1) pledging, assigning or directing the use, investment or | 21 |
| disposition
of receipts of the Authority or proceeds or | 22 |
| benefits of any contract and
conveying or otherwise securing | 23 |
| any property or property rights;
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| (2) the setting aside of loan funding deposits, debt | 25 |
| service reserves,
capitalized interest accounts, cost of | 26 |
| issuance accounts and sinking funds,
and the regulations, |
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| investment and disposition thereof;
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| (3) limitations on the purpose to which or the investments | 3 |
| in which the
proceeds of sale of any issue of bonds may be | 4 |
| applied and restrictions to
investment of revenues or bond | 5 |
| proceeds in government obligations for which
principal and | 6 |
| interest are unconditionally guaranteed by the United States of | 7 |
| America;
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| (4) limitations on the issue of additional bonds, the terms | 9 |
| upon which
additional bonds may be issued and secured, the | 10 |
| terms upon which additional
bonds may rank on a parity with, or | 11 |
| be subordinate or superior to, other bonds;
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| (5) the refunding or refinancing of outstanding bonds;
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| (6) the procedure, if any, by which the terms of any | 14 |
| contract with
bondholders may be altered or amended and the | 15 |
| amount of bonds and holders
of which must consent thereto, and | 16 |
| the manner in which consent shall be given;
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| (7) defining the acts or omissions which shall constitute a | 18 |
| default in
the duties of the Authority to holders of bonds and | 19 |
| providing the rights or
remedies of such holders in the event | 20 |
| of a default which may include
provisions restricting | 21 |
| individual right of action by bondholders;
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| (8) providing for guarantees, pledges of property, letters | 23 |
| of credit, or
other security, or insurance for the benefit of | 24 |
| bondholders; and
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| (9) any other matter relating to the bonds which the | 26 |
| Authority determines appropriate.
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| (c) No member of the Authority nor any person executing the | 2 |
| bonds shall
be liable personally on the bonds or subject to any | 3 |
| personal liability by
reason of the issuance of the bonds.
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| (d) The Authority may enter into agreements with agents, | 5 |
| banks, insurers
or others for the purpose of enhancing the | 6 |
| marketability of or as security for its bonds.
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| (e)(1) A pledge by the Authority of revenues as security | 8 |
| for an issue of
bonds shall be valid and binding from the time | 9 |
| when the pledge is made.
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| (2) The revenues pledged shall immediately be subject to | 11 |
| the lien of the
pledge without any physical delivery or further | 12 |
| act, and the lien of any
pledge shall be valid and binding | 13 |
| against any person having any claim of
any kind in tort, | 14 |
| contract or otherwise against the Authority, irrespective
of | 15 |
| whether the person has notice.
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| (3) No resolution, trust agreement or financing statement, | 17 |
| continuation
statement, or other instrument adopted or entered | 18 |
| into by the Authority
need be filed or recorded in any public | 19 |
| record other than the records of
the authority in order to | 20 |
| perfect the lien against third persons,
regardless of any | 21 |
| contrary provision of law.
| 22 |
| (f) The Authority may issue bonds to refund any of its | 23 |
| bonds then
outstanding, including the payment of any redemption | 24 |
| premium and any
interest accrued or to accrue to the earliest | 25 |
| or any subsequent date of
redemption, purchase or maturity of | 26 |
| the bonds. Refunding bonds may be
issued for the public |
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| purposes of realizing savings in the effective costs
of debt | 2 |
| service, directly or through a debt restructuring, for | 3 |
| alleviating
impending or actual default and may be issued in | 4 |
| one or more series in an
amount in excess of that of the bonds | 5 |
| to be refunded.
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| (g) Bonds or notes of the Authority may be sold by the | 7 |
| Authority through
the process of competitive bid or negotiated | 8 |
| sale.
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| (h) At no time shall the total outstanding bonds and notes | 10 |
| of the
Authority exceed $250,000,000
$100 million .
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| (i) The bonds and notes of the Authority shall not be debts | 12 |
| of the State.
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| (j) In no event may proceeds of bonds or notes issued by | 14 |
| the Authority
be used to finance any structure which is not | 15 |
| constructed pursuant to an
agreement between the Authority and | 16 |
| a party, which provides for the
delivery by the party of a | 17 |
| completed structure constructed pursuant to a
fixed price | 18 |
| contract, and which provides for the delivery of such structure
| 19 |
| at such fixed price to be insured or guaranteed by a third | 20 |
| party determined
by the Authority to be capable of completing | 21 |
| construction of such a structure.
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| (Source: P.A. 85-713.)
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| Section 10. The Quad Cities Regional Economic Development
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| Authority Act, certified December 30, 1987, is amended by | 25 |
| changing Sections 4 and 9 as follows:
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LRB096 11147 RLJ 21516 b |
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| (70 ILCS 515/4) (from Ch. 85, par. 6504)
| 2 |
| Sec. 4. (a) There is hereby created a political | 3 |
| subdivision, body politic
and municipal corporation named the | 4 |
| Quad Cities Regional Economic Development Authority.
The | 5 |
| territorial jurisdiction of the Authority is that geographic | 6 |
| area
within the boundaries of JoDaviess, Carroll, Whiteside, | 7 |
| Stephenson, Rock Island, Henry and Mercer counties in the State | 8 |
| of
Illinois and any navigable waters and air space located | 9 |
| therein.
| 10 |
| (b) The governing and administrative powers of the | 11 |
| Authority shall be
vested in a body consisting of 11
7 members | 12 |
| including, as an ex officio member,
the Director of Commerce | 13 |
| and Economic Opportunity, or his or her
designee.
The other 8 | 14 |
| members of the Authority
shall be designated "public members", | 15 |
| 3 of whom shall be appointed by the Governor
with the advice | 16 |
| and consent of the Senate. Of the 3 members appointed by
the | 17 |
| Governor, one shall be from a city within the Authority's | 18 |
| territory
with a population of 25,000 or more and the remainder | 19 |
| shall be appointed at
large. One member shall be appointed by | 20 |
| each of
the county board chairmen of Rock Island, Henry and | 21 |
| Mercer
counties with the advice and consent of the respective | 22 |
| county board.
In addition, within 60 days after the effective | 23 |
| date of this amendatory Act of the 96th General Assembly, one | 24 |
| additional public member shall be appointed by each of the | 25 |
| county board chairpersons of JoDaviess, Carroll, Whiteside, |
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| and Stephenson counties with the advice and consent of the | 2 |
| respective county board. Of the public members added by this | 3 |
| amendatory Act of the 96th General Assembly, one shall serve | 4 |
| for a one-year term, one shall serve for a 2-year term, and 2 | 5 |
| shall serve for 3-year terms, to be determined by lot. Their | 6 |
| successors shall serve for 3-year terms. All public members | 7 |
| shall reside within the territorial jurisdiction of this
Act. | 8 |
| Six
Four members shall constitute a quorum.
The public members | 9 |
| shall be
persons of recognized ability and
experience in one or | 10 |
| more of the following areas: economic development,
finance, | 11 |
| banking, industrial development, small business management, | 12 |
| real
estate development, community development, venture | 13 |
| finance, organized labor
or civic, community or neighborhood | 14 |
| organization. The Chairman of the
Authority shall be a public | 15 |
| member elected by the affirmative vote of not
fewer than 4 | 16 |
| members of the Authority , except that any chairperson elected | 17 |
| on or after the effective date of this amendatory Act of the | 18 |
| 96th General Assembly shall be elected by the affirmative vote | 19 |
| of not fewer than 6 members . The term of the Chairman shall be | 20 |
| one year.
| 21 |
| (c) The terms of all members of the Authority shall begin | 22 |
| 30 days after
the effective date of this Act. Of the 6 initial | 23 |
| public members
appointed pursuant to this Act, 2 (one of whom | 24 |
| shall be appointed by the
Governor) shall serve until the
third | 25 |
| Monday in January, 1989, 2 (one of whom shall be appointed by | 26 |
| the
Governor) shall serve until the third Monday in
January, |
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LRB096 11147 RLJ 21516 b |
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| 1990, and 2
(one of whom shall be appointed by the Governor) | 2 |
| shall serve until the
third Monday in January, 1991.
The | 3 |
| initial terms of the members appointed by the county board | 4 |
| chairmen
shall be determined by lot. All successors shall be | 5 |
| appointed by the
original appointing authority and
hold office | 6 |
| for a term of 3 years commencing the third
Monday in January of | 7 |
| the year in which their term commences, except in case
of an | 8 |
| appointment to fill a vacancy.
Vacancies
occurring among the | 9 |
| public members shall be filled for the
remainder of the term.
| 10 |
| In case of vacancy in a Governor-appointed membership when
the | 11 |
| Senate is not in session, the Governor may make a temporary | 12 |
| appointment
until the next meeting of the Senate when a person | 13 |
| shall be nominated to
fill such office, and any person so | 14 |
| nominated who is confirmed by the
Senate shall hold office | 15 |
| during the remainder of the term and until a
successor shall be | 16 |
| appointed and qualified.
Members of the Authority shall not be | 17 |
| entitled to compensation for their services
as members but | 18 |
| shall be entitled to reimbursement for all necessary
expenses | 19 |
| incurred in connection with the performance of their duties as | 20 |
| members.
| 21 |
| (d) The Governor may remove any public member of the | 22 |
| Authority appointed
by the Governor in case
of incompetency, | 23 |
| neglect of duty, or malfeasance in office. The Chairman
of a | 24 |
| county board may remove any public member of the Authority | 25 |
| appointed
by such Chairman in the case of incompetency, neglect | 26 |
| of duty, or malfeasance in office.
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LRB096 11147 RLJ 21516 b |
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| 1 |
| (e) The Board shall appoint an Executive Director who shall | 2 |
| have a
background in finance, including familiarity with the | 3 |
| legal and
procedural requirements of issuing bonds, real estate | 4 |
| or economic
development and administration. The Executive | 5 |
| Director shall hold office
at the discretion of the Board. The | 6 |
| Executive Director shall be the chief
administrative and | 7 |
| operational officer of the Authority, shall direct
and | 8 |
| supervise its administrative affairs and general management, | 9 |
| shall perform
such other duties as may be prescribed from time | 10 |
| to time by the members and
shall receive compensation fixed by | 11 |
| the Authority.
The Authority may engage the services of such
| 12 |
| other agents and employees, including attorneys, appraisers, | 13 |
| engineers,
accountants, credit analysts and other consultants, | 14 |
| as it may deem
advisable and may prescribe their duties and fix | 15 |
| their compensation.
| 16 |
| (f) The Board shall create a task force to study and make
| 17 |
| recommendations to the Board on the economic development of the | 18 |
| territory
within the jurisdiction of this Act. The number of | 19 |
| members
constituting the task force shall be set by the Board | 20 |
| and may vary from
time to time. The Board may set a specific | 21 |
| date by which the task force is
to submit its final report and | 22 |
| recommendations to the Board.
| 23 |
| (Source: P.A. 94-793, eff. 5-19-06.)
| 24 |
| (70 ILCS 515/9) (from Ch. 85, par. 6509)
| 25 |
| Sec. 9. Bonds and notes. (a)(1) The Authority may, with the |
|
|
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SB1783 |
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LRB096 11147 RLJ 21516 b |
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| 1 |
| written
approval of the Governor, at any time and from time to | 2 |
| time, issue bonds and
notes for any corporate purpose, | 3 |
| including the establishment of reserves and
the payment of | 4 |
| interest. In this Act the term "bonds" includes notes of
any | 5 |
| kind, interim certificates, refunding bonds or any other | 6 |
| evidence of obligation.
| 7 |
| (2) The bonds of any issue shall be payable solely from the | 8 |
| property or
receipts of the Authority, including, without | 9 |
| limitation:
| 10 |
| (I) fees, charges or other revenues payable to the | 11 |
| Authority;
| 12 |
| (II) payments by financial institutions, insurance | 13 |
| companies, or others
pursuant to letters or lines of credit, | 14 |
| policies of insurance, or purchase agreements;
| 15 |
| (III) investment earnings from funds or accounts | 16 |
| maintained pursuant to
a bond resolution or trust agreement; | 17 |
| and
| 18 |
| (IV) proceeds of refunding bonds.
| 19 |
| (3) Bonds shall be authorized by a resolution of the | 20 |
| Authority and may
be secured by a trust agreement by and | 21 |
| between the Authority and a
corporate trustee or trustees, | 22 |
| which may be any trust company or bank
having the powers of a | 23 |
| trust company within or without the State. Bonds shall:
| 24 |
| (I) be issued at, above or below par value, for cash or | 25 |
| other valuable
consideration, and mature at time or times, | 26 |
| whether as serial bonds or as
term bonds or both, not exceeding |
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LRB096 11147 RLJ 21516 b |
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| 40 years from their respective date of
issue; however, the | 2 |
| length of the term of the bond should bear a reasonable
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| relationship to the value life of the item financed;
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| (II) bear interest at the fixed or variable rate or rates | 5 |
| determined by
the method provided in the resolution or trust | 6 |
| agreement;
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| (III) be payable at a time or times, in the denominations | 8 |
| and form,
either coupon or registered or both, and carry the | 9 |
| registration and
privileges as to conversion and for the | 10 |
| replacement of mutilated, lost or
destroyed bonds as the | 11 |
| resolution or trust agreement may provide;
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| (IV) be payable in lawful money of the United States at a | 13 |
| designated place;
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| (V) be subject to the terms of purchase, payment, | 15 |
| redemption, refunding
or refinancing that the resolution or | 16 |
| trust agreement provides;
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| (VI) be executed by the manual or facsimile signatures of | 18 |
| the officers
of the Authority designated by the Authority, | 19 |
| which signatures shall be
valid at delivery even for one who | 20 |
| has ceased to hold office; and
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| (VII) be sold in the manner and upon the terms determined | 22 |
| by the Authority.
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| (b) Any resolution or trust agreement may contain | 24 |
| provisions which shall
be a part of the contract with the | 25 |
| holders of the bonds as to:
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| (1) pledging, assigning or directing the use, investment or |
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LRB096 11147 RLJ 21516 b |
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| disposition
of receipts of the Authority or proceeds or | 2 |
| benefits of any contract and
conveying or otherwise securing | 3 |
| any property or property rights;
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| (2) the setting aside of loan funding deposits, debt | 5 |
| service reserves,
capitalized interest accounts, cost of | 6 |
| issuance accounts and sinking funds,
and the regulations, | 7 |
| investment and disposition thereof;
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| (3) limitations on the purpose to which or the investments | 9 |
| in which the
proceeds of sale of any issue of bonds may be | 10 |
| applied and restrictions to
investment of revenues or bond | 11 |
| proceeds in government obligations for which
principal and | 12 |
| interest are unconditionally guaranteed by the United States of | 13 |
| America;
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| (4) limitations on the issue of additional bonds, the terms | 15 |
| upon which
additional bonds may be issued and secured, the | 16 |
| terms upon which additional
bonds may rank on a parity with, or | 17 |
| be subordinate or superior to, other bonds;
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| (5) the refunding or refinancing of outstanding bonds;
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| (6) the procedure, if any, by which the terms of any | 20 |
| contract with
bondholders may be altered or amended and the | 21 |
| amount of bonds and holders
of which must consent thereto, and | 22 |
| the manner in which consent shall be given;
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| (7) defining the acts or omissions which shall constitute a | 24 |
| default in
the duties of the Authority to holders of bonds and | 25 |
| providing the rights or
remedies of such holders in the event | 26 |
| of a default which may include
provisions restricting |
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LRB096 11147 RLJ 21516 b |
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| individual right of action by bondholders;
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| (8) providing for guarantees, pledges of property, letters | 3 |
| of credit, or
other security, or insurance for the benefit of | 4 |
| bondholders; and
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| (9) any other matter relating to the bonds which the | 6 |
| Authority determines appropriate.
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| (c) No member of the Authority nor any person executing the | 8 |
| bonds shall
be liable personally on the bonds or subject to any | 9 |
| personal liability by
reason of the issuance of the bonds.
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| (d) The Authority may enter into agreements with agents, | 11 |
| banks, insurers
or others for the purpose of enhancing the | 12 |
| marketability of or as security for its bonds.
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| (e)(1) A pledge by the Authority of revenues as security | 14 |
| for an issue of
bonds shall be valid and binding from the time | 15 |
| when the pledge is made.
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| (2) The revenues pledged shall immediately be subject to | 17 |
| the lien of the
pledge without any physical delivery or further | 18 |
| act, and the lien of any
pledge shall be valid and binding | 19 |
| against any person having any claim of
any kind in tort, | 20 |
| contract or otherwise against the Authority, irrespective
of | 21 |
| whether the person has notice.
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| (3) No resolution, trust agreement or financing statement, | 23 |
| continuation
statement, or other instrument adopted or entered | 24 |
| into by the Authority
need be filed or recorded in any public | 25 |
| record other than the records of
the authority in order to | 26 |
| perfect the lien against third persons,
regardless of any |
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LRB096 11147 RLJ 21516 b |
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| contrary provision of law.
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| (f) The Authority may issue bonds to refund any of its | 3 |
| bonds then
outstanding, including the payment of any redemption | 4 |
| premium and any
interest accrued or to accrue to the earliest | 5 |
| or any subsequent date of
redemption, purchase or maturity of | 6 |
| the bonds. Refunding bonds may be
issued for the public | 7 |
| purposes of realizing savings in the effective costs
of debt | 8 |
| service, directly or through a debt restructuring, for | 9 |
| alleviating
impending or actual default and may be issued in | 10 |
| one or more series in an
amount in excess of that of the bonds | 11 |
| to be refunded.
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| (g) Bonds or notes of the Authority may be sold by the | 13 |
| Authority through
the process of competitive bid or negotiated | 14 |
| sale.
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| (h) At no time shall the total outstanding bonds and notes | 16 |
| of the
Authority exceed $250,000,000
$100 million .
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| (i) The bonds and notes of the Authority shall not be debts | 18 |
| of the State.
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| (j) In no event may proceeds of bonds or notes issued by | 20 |
| the Authority
be used to finance any structure which is not | 21 |
| constructed pursuant to an
agreement between the Authority and | 22 |
| a party, which provides for the
delivery by the party of a | 23 |
| completed structure constructed pursuant to a
fixed price | 24 |
| contract, and which provides for the delivery of such structure
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| at such fixed price to be insured or guaranteed by a third | 26 |
| party determined
by the Authority to be capable of completing |
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LRB096 11147 RLJ 21516 b |
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| construction of such a structure.
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| (Source: P.A. 85-988.)
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