Full Text of HB0753 100th General Assembly
HB0753 100TH GENERAL ASSEMBLY |
| | 100TH GENERAL ASSEMBLY
State of Illinois
2017 and 2018 HB0753 Introduced , by Rep. C.D. Davidsmeyer SYNOPSIS AS INTRODUCED: |
| 20 ILCS 3501/830-20 | | 20 ILCS 3501/830-30 | | 20 ILCS 3501/830-35 | | 20 ILCS 3501/830-45 | |
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Amends the Illinois Finance Authority Act. In Sections concerning State guarantees for loans to farmers, provides that the total amount of the guarantees shall not exceed $2,000,000 per farmer (instead of $500,000). Provides that guarantees may be made if the farmer's net worth does not exceed $2,000,000 (instead of $500,000). In a Section concerning guarantees for existing debt, provides that the Illinois Agricultural Loan Guarantee Fund shall guarantee receipt of payment
of 90% (instead of 85%) of the principal and interest owed on the State Guarantee Loan by the
farmer to the guarantee holder. Effective immediately.
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| | | FISCAL NOTE ACT MAY APPLY | |
| | A BILL FOR |
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| 1 | | AN ACT concerning finance.
| 2 | | Be it enacted by the People of the State of Illinois,
| 3 | | represented in the General Assembly:
| 4 | | Section 5. The Illinois Finance Authority Act is amended by | 5 | | changing Sections 830-20, 830-30, 830-35, and 830-45 as | 6 | | follows:
| 7 | | (20 ILCS 3501/830-20)
| 8 | | Sec. 830-20.
The Authority may not pass a resolution | 9 | | authorizing the
issuance
of any notes or bonds in excess of | 10 | | $2,000,000 $450,000 for any one agricultural real
estate
| 11 | | borrower. In any calendar year after 2007, the $450,000 amount | 12 | | shall be increased by an amount equal to such dollar amount | 13 | | multiplied by the inflation percentage determined under | 14 | | Section 305(c) of the federal Consolidated Farm and Rural | 15 | | Development Act (7 U.S.C. 1925) as of June 18, 2008. Any | 16 | | increase determined under the preceding sentence shall be | 17 | | rounded to the nearest multiple of $100. No proceeds from any | 18 | | bonds issued by the Authority shall be loaned to
any natural | 19 | | person who has a net worth in excess of $2,000,000 $500,000 for | 20 | | the purchase
of
new depreciable agricultural property or to any | 21 | | agribusiness that, including
all
affiliates and subsidiaries, | 22 | | has more than 100 employees and a gross income
exceeding | 23 | | $2,000,000 for the preceding calendar year; provided, however, |
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| 1 | | that
the employee size and gross income limitations shall not | 2 | | apply to any loans to
agribusinesses for research and | 3 | | development purposes, and provided further that
the Authority | 4 | | shall retain the power to waive such limitations for any
| 5 | | agribusiness that, at the time of application, does not operate | 6 | | a facility
within this State.
| 7 | | (Source: P.A. 96-531, eff. 8-14-09.)
| 8 | | (20 ILCS 3501/830-30)
| 9 | | Sec. 830-30. State Guarantees for existing debt.
| 10 | | (a) The Authority is authorized to issue State Guarantees | 11 | | for farmers'
existing
debts held by a lender. For the purposes | 12 | | of this
Section, a farmer shall be a
resident of Illinois, who | 13 | | is a principal operator of a farm or land, at least
50% of | 14 | | whose annual gross income is derived from farming and whose | 15 | | debt to
asset
ratio shall not be less than 40%, except in those | 16 | | cases where the applicant has
previously used the guarantee | 17 | | program there shall be no debt to asset ratio or
income | 18 | | restriction. For the purposes of this
Section, debt to asset | 19 | | ratio shall
mean the current outstanding liabilities of the | 20 | | farmer divided by the current
outstanding assets of the farmer. | 21 | | The Authority shall establish the maximum
permissible debt to | 22 | | asset ratio based on criteria established by the Authority.
| 23 | | Lenders shall apply for the State Guarantees on forms provided | 24 | | by the Authority
and certify that the application and any other | 25 | | documents submitted are true and
correct. The lender or |
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| 1 | | borrower, or both in combination, shall pay an
administrative | 2 | | fee as determined by the Authority. The applicant shall be
| 3 | | responsible for paying any fees or charges involved in | 4 | | recording mortgages,
releases, financing statements, insurance | 5 | | for secondary market issues and any
other similar fees or | 6 | | charges as the Authority may require. The application
shall at | 7 | | a minimum contain the farmer's name, address, present credit | 8 | | and
financial information, including cash flow statements, | 9 | | financial statements,
balance sheets, and any other | 10 | | information pertinent to the application, and the
collateral to | 11 | | be used to secure the State Guarantee. In addition, the lender
| 12 | | must agree to bring the farmer's debt to a current status at | 13 | | the time the State
Guarantee is provided and must also agree to | 14 | | charge a fixed or adjustable
interest rate which the Authority | 15 | | determines to be below the market rate of
interest generally | 16 | | available to the borrower. If both the lender and applicant
| 17 | | agree, the interest rate on the State Guarantee Loan can be | 18 | | converted to a fixed
interest rate at any time during the term | 19 | | of the loan.
Any State Guarantees provided under this
Section | 20 | | (i) shall not exceed $2,000,000 $500,000
per farmer, (ii) shall | 21 | | be set up on a payment schedule not to exceed 30 years,
and | 22 | | shall be no longer than 30 years in duration, and (iii) shall | 23 | | be subject to
an annual review and renewal by the lender and | 24 | | the Authority; provided that
only
one such State Guarantee | 25 | | shall be outstanding per farmer at any one time. No
State | 26 | | Guarantee shall be revoked by the Authority without a 90-day |
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| 1 | | notice, in
writing, to all parties. In those cases where the | 2 | | borrower has not previously
used the guarantee program, the | 3 | | lender shall not call due any loan during the
first 3 years for | 4 | | any reason except for lack of performance or insufficient
| 5 | | collateral. The lender can review and withdraw or continue with | 6 | | the State
Guarantee on an annual basis after the first 3 years | 7 | | of the loan, provided a
90-day notice, in writing, to all | 8 | | parties has been given.
| 9 | | (b) The Authority shall provide or renew a State Guarantee | 10 | | to a lender if:
| 11 | | (i) A fee equal to 25 basis points on the loan is paid | 12 | | to the Authority on
an
annual
basis by the lender.
| 13 | | (ii) The application provides collateral acceptable to | 14 | | the
Authority that is at least equal to the State's portion | 15 | | of the Guarantee to be
provided.
| 16 | | (iii) The lender assumes all responsibility and costs | 17 | | for pursuing
legal action on collecting any loan that is | 18 | | delinquent or in default.
| 19 | | (iv) The
lender is responsible for the first 10% 15% of | 20 | | the outstanding principal of the
note
for which the State | 21 | | Guarantee has been applied.
| 22 | | (c) There is hereby created outside of the State treasury a | 23 | | special fund to
be
known as the Illinois Agricultural Loan | 24 | | Guarantee Fund. The State Treasurer
shall be custodian of this | 25 | | Fund. Any amounts in the Illinois Agricultural Loan
Guarantee | 26 | | Fund not currently needed to meet the obligations of the Fund |
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| 1 | | shall
be
invested as provided by law, and all interest earned | 2 | | from these investments
shall be deposited into the Fund until | 3 | | the Fund reaches the maximum amount
authorized in this Act; | 4 | | thereafter, interest earned shall be deposited into the
General | 5 | | Revenue Fund. After September 1, 1989, annual investment | 6 | | earnings equal
to 1.5% of the Fund shall remain in the Fund to | 7 | | be used for the purposes
established in
Section 830-40 of this | 8 | | Act. The Authority is authorized to
transfer to the Fund such | 9 | | amounts as are necessary to satisfy claims during the
duration | 10 | | of the State Guarantee program to secure State Guarantees | 11 | | issued under
this
Section, provided that amounts to be paid | 12 | | from the Industrial Project Insurance Fund created under | 13 | | Article 805 of this Act may be paid by the Authority directly | 14 | | to satisfy claims and need not
be deposited first into the | 15 | | Illinois Agricultural Loan Guarantee Fund. If for any reason | 16 | | the General Assembly fails to make an
appropriation sufficient | 17 | | to meet these obligations, this Act shall constitute
an
| 18 | | irrevocable and continuing appropriation of an amount | 19 | | necessary to secure
guarantees as defaults occur and the | 20 | | irrevocable and continuing authority for,
and direction to, the | 21 | | State Treasurer and the Comptroller to make the necessary
| 22 | | transfers to the Illinois Agricultural Loan Guarantee Fund, as | 23 | | directed by the
Governor, out of the General Revenue Fund. | 24 | | Within 30 days after November 15,
1985, the Authority may | 25 | | transfer up to $7,000,000 from available appropriations
into | 26 | | the Illinois Agricultural Loan Guarantee Fund for the purposes |
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| 1 | | of this
Act.
Thereafter, the Authority may transfer additional | 2 | | amounts into the Illinois
Agricultural Loan Guarantee Fund to | 3 | | secure guarantees for defaults as defaults
occur. In the event | 4 | | of default by the farmer, the lender shall be entitled to,
and | 5 | | the Authority shall direct payment on, the State Guarantee | 6 | | after 90 days of
delinquency. All payments by the Authority to | 7 | | satisfy claims against the State Guarantee shall be made, in | 8 | | whole or in part, from any of the following funds in such order | 9 | | and in such amounts as the Authority shall determine: (1) the | 10 | | Industrial Project Insurance Fund created under Article 805 of | 11 | | this Act (if the Authority exercises its discretion under | 12 | | subsection (j) of Section 805-20); (2) the Illinois | 13 | | Agricultural Loan Guarantee Fund; or (3) the Illinois Farmer | 14 | | and Agribusiness Loan Guarantee Fund.
The Illinois | 15 | | Agricultural Loan Guarantee Fund shall guarantee receipt of | 16 | | payment
of 90% the 85% of the principal and interest owed on | 17 | | the State Guarantee Loan by the
farmer to the guarantee holder, | 18 | | provided that payments by the Authority to satisfy claims | 19 | | against the State Guarantee shall be made in accordance with | 20 | | the preceding sentence. It shall be the responsibility of the | 21 | | lender to
proceed with the collecting and disposing of | 22 | | collateral on the State Guarantee under this Section, Section | 23 | | 830-35, Section 830-45, Section 830-50, Section 830-55, or | 24 | | Article 835
within 14 months of the time the State Guarantee is | 25 | | declared delinquent;
provided, however, that the lender shall | 26 | | not collect or dispose of collateral on
the State Guarantee |
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| 1 | | without the express written prior approval of the Authority.
If | 2 | | the lender does not dispose of the collateral within 14 months, | 3 | | the lender
shall be liable to repay to the State interest on | 4 | | the State Guarantee equal to
the same rate which the lender | 5 | | charges on the State Guarantee; provided,
however, that the | 6 | | Authority may extend the 14-month period for a lender in the
| 7 | | case of bankruptcy or extenuating circumstances. The Fund from | 8 | | which a payment is made shall be reimbursed
for any amounts | 9 | | paid from that Fund under this
Section, Section 830-35, Section | 10 | | 830-45, Section 830-50, Section 830-55, or Article 835 upon | 11 | | liquidation of the collateral. The
Authority, by resolution of | 12 | | the Board, may borrow sums from the Fund and
provide
for | 13 | | repayment as soon as may be practical upon receipt of payments | 14 | | of principal
and interest by a farmer. Money may be borrowed | 15 | | from the Fund by the Authority
for the sole purpose of paying | 16 | | certain interest costs for farmers associated
with selling a | 17 | | loan subject to a State Guarantee in a secondary market as may
| 18 | | be
deemed reasonable and necessary by the Authority.
| 19 | | (d) Notwithstanding the provisions of this
Section 830-30 | 20 | | with respect to the
farmers and lenders who may obtain State | 21 | | Guarantees, the Authority may
promulgate rules establishing | 22 | | the eligibility of farmers and lenders to
participate in the | 23 | | State guarantee program and the terms, standards, and
| 24 | | procedures that will apply, when the Authority finds that | 25 | | emergency conditions
in Illinois agriculture have created the | 26 | | need for State Guarantees pursuant to
terms, standards, and |
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| 1 | | procedures other than those specified in this
Section.
| 2 | | (Source: P.A. 99-509, eff. 6-24-16.)
| 3 | | (20 ILCS 3501/830-35)
| 4 | | Sec. 830-35. State Guarantees for loans to farmers and | 5 | | agribusiness;
eligibility. | 6 | | (a) The Authority is authorized to issue State Guarantees | 7 | | to lenders for
loans
to eligible farmers and agribusinesses for | 8 | | purposes set forth in this
Section.
For purposes of this
| 9 | | Section, an eligible farmer shall be a resident of Illinois
(i) | 10 | | who is principal operator of a farm or land, at least 50% of | 11 | | whose annual
gross income is derived from farming, (ii) whose | 12 | | annual total sales of
agricultural products, commodities, or | 13 | | livestock exceeds $20,000, and (iii)
whose net worth does not | 14 | | exceed $2,000,000 $500,000 . An eligible agribusiness shall be
| 15 | | that as defined in
Section 801-10 of this Act.
The Authority | 16 | | may approve applications by farmers and agribusinesses that
| 17 | | promote diversification of the farm economy of this State | 18 | | through the growth
and
development of new crops or livestock | 19 | | not customarily grown or produced in this
State or that | 20 | | emphasize a vertical integration of grain or livestock produced
| 21 | | or
raised in this State into a finished agricultural product | 22 | | for consumption or
use. "New crops or livestock not customarily | 23 | | grown or produced in this State"
shall not include corn, | 24 | | soybeans, wheat, swine, or beef or dairy cattle.
"Vertical | 25 | | integration of grain or livestock produced or raised in this |
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| 1 | | State"
shall include any new or existing grain or livestock | 2 | | grown or produced in this
State.
Lenders shall apply for the | 3 | | State Guarantees on forms provided by the
Authority,
certify | 4 | | that the application and any other documents submitted are true | 5 | | and
correct, and pay an administrative fee as determined by the | 6 | | Authority. The
applicant shall be responsible for paying any | 7 | | fees or charges involved in
recording mortgages, releases, | 8 | | financing statements, insurance for secondary
market issues | 9 | | and any other similar fees or charges as the Authority may
| 10 | | require. The application shall at a minimum contain the | 11 | | farmer's or
agribusiness' name, address, present credit and | 12 | | financial information,
including cash flow statements, | 13 | | financial statements, balance sheets, and any
other
| 14 | | information pertinent to the application, and the collateral to | 15 | | be used to
secure the State Guarantee. In addition, the lender | 16 | | must agree to charge an
interest rate, which may vary, on the | 17 | | loan that the Authority determines to be
below the market rate | 18 | | of interest generally available to the borrower. If both
the | 19 | | lender and applicant agree, the interest rate on the State | 20 | | Guarantee Loan
can be converted to a fixed interest rate at any | 21 | | time during the term of the
loan.
Any State Guarantees provided | 22 | | under this
Section (i) shall not exceed $2,000,000 $500,000
per | 23 | | farmer or an amount as determined by the Authority on a | 24 | | case-by-case
basis for an agribusiness, (ii) shall not exceed a | 25 | | term of 15 years, and (iii)
shall be subject to an annual | 26 | | review and renewal by the lender and the
Authority; provided |
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| 1 | | that only one such State Guarantee shall be made per farmer
or | 2 | | agribusiness, except that additional State Guarantees may be | 3 | | made for
purposes of expansion of projects financed in part by | 4 | | a previously issued State
Guarantee. No State Guarantee shall | 5 | | be revoked by the Authority without a
90-day notice, in | 6 | | writing, to all parties. The lender shall not call due any
loan
| 7 | | for any reason except for lack of performance, insufficient | 8 | | collateral, or
maturity. A lender may review and withdraw or | 9 | | continue with a State Guarantee
on an annual basis after the | 10 | | first 5 years following closing of the loan
application if the | 11 | | loan contract provides for an interest rate that shall not
| 12 | | vary. A lender shall not withdraw a State Guarantee if the loan | 13 | | contract
provides for an interest rate that may vary, except | 14 | | for reasons set forth
herein.
| 15 | | (b) The Authority shall provide or renew a State Guarantee | 16 | | to a lender if:
| 17 | | (i) A fee equal to 25 basis points on the loan is paid | 18 | | to the Authority on
an annual
basis by the lender.
| 19 | | (ii) The application provides collateral acceptable to | 20 | | the
Authority that is at least equal to the State's portion | 21 | | of the Guarantee to be
provided.
| 22 | | (iii) The lender assumes all responsibility and costs | 23 | | for pursuing
legal action on collecting any loan that is | 24 | | delinquent or in default.
| 25 | | (iv) The
lender is responsible for the first 10% 15% of | 26 | | the outstanding principal of the
note
for which the State |
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| 1 | | Guarantee has been applied.
| 2 | | (c) There is hereby created outside of the State treasury a | 3 | | special fund to
be
known as the Illinois Farmer and | 4 | | Agribusiness Loan Guarantee Fund. The State
Treasurer shall be | 5 | | custodian of this Fund. Any amounts in the Fund not
currently | 6 | | needed to meet the obligations of the Fund shall be invested as
| 7 | | provided by law, and all interest earned from these investments | 8 | | shall be
deposited into the Fund until the Fund reaches the | 9 | | maximum amounts authorized
in
this Act; thereafter, interest | 10 | | earned shall be deposited into the General
Revenue Fund. After | 11 | | September 1, 1989, annual investment earnings equal to 1.5%
of | 12 | | the Fund shall remain in the Fund to be used for the purposes | 13 | | established in
Section 830-40 of this Act. The Authority is | 14 | | authorized to transfer such
amounts
as are necessary to satisfy | 15 | | claims from available appropriations and from fund
balances of | 16 | | the Farm Emergency Assistance Fund as of June 30 of each year | 17 | | to
the
Illinois Farmer and Agribusiness Loan Guarantee Fund to | 18 | | secure State Guarantees
issued under this
Section,
Sections | 19 | | 830-30, 830-45, 830-50, and 830-55, and Article 835 of this | 20 | | Act. Amounts to be paid from the Industrial Project Insurance | 21 | | Fund created under Article 805 of this Act may be paid by the | 22 | | Authority directly to satisfy claims and need not be deposited | 23 | | first into the Illinois Farmer and Agribusiness Loan Guarantee | 24 | | Fund. If for any reason the
General Assembly fails to make an | 25 | | appropriation sufficient to meet these
obligations, this Act | 26 | | shall constitute an irrevocable and continuing
appropriation |
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| 1 | | of an amount necessary to secure guarantees as defaults occur | 2 | | and
the irrevocable and continuing authority for, and direction | 3 | | to, the State
Treasurer and the Comptroller to make the | 4 | | necessary transfers to the Illinois
Farmer and Agribusiness | 5 | | Loan Guarantee Fund, as directed by the Governor, out
of
the | 6 | | General Revenue Fund. In the event of default by the borrower | 7 | | on State
Guarantee Loans under this
Section,
Section 830-45,
| 8 | | Section 830-50, or Section 830-55, the lender
shall be entitled | 9 | | to, and the Authority shall direct payment on, the State
| 10 | | Guarantee after 90 days of delinquency. All payments by the | 11 | | Authority to satisfy
claims against the State Guarantee shall | 12 | | be made, in whole or in part, from any of the following funds | 13 | | in such order and in such amounts as the Authority shall | 14 | | determine: (1) the Industrial Project Insurance Fund created | 15 | | under Article 805 of this Act (if the Authority exercises its | 16 | | discretion under subsection (j) of Section 805-20); (2) the | 17 | | Illinois Farmer and Agribusiness Loan Guarantee Fund; or (3) | 18 | | the Illinois Farmer and Agribusiness Loan Guarantee Fund. It | 19 | | shall be the responsibility of the
lender to proceed with the | 20 | | collecting and disposing of collateral on the State
Guarantee | 21 | | under this
Section,
Section 830-45,
Section 830-50, or Section | 22 | | 830-55 within 14 months of
the time the State Guarantee is | 23 | | declared delinquent. If the lender does not
dispose of the | 24 | | collateral within 14 months, the lender shall be liable to | 25 | | repay
to the State interest on the State Guarantee equal to the | 26 | | same rate that the
lender charges on the State Guarantee, |
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| 1 | | provided that the Authority shall have
the authority to extend | 2 | | the 14-month period for a lender in the case of
bankruptcy or | 3 | | extenuating circumstances. The Fund shall be reimbursed for any
| 4 | | amounts paid under this
Section, Section 830-30,
Section | 5 | | 830-45,
Section 830-50, Section 830-55, or Article 835 upon | 6 | | liquidation
of the collateral.
The Authority, by resolution of | 7 | | the Board, may borrow sums from the Fund and
provide for | 8 | | repayment as soon as may be practical upon receipt of payments | 9 | | of
principal and interest by a borrower on State Guarantee | 10 | | Loans under this
Section, Section 830-30,
Section 830-45,
| 11 | | Section 830-50, Section 830-55, or Article 835. Money may be | 12 | | borrowed from the Fund by
the Authority for the sole purpose of | 13 | | paying certain interest costs for
borrowers associated with | 14 | | selling a loan subject to a State Guarantee under
this
Section, | 15 | | Section 830-30,
Section 830-45,
Section 830-50, Section | 16 | | 830-55, or Article 835 in a secondary market as may be deemed
| 17 | | reasonable and necessary by the Authority.
| 18 | | (d) Notwithstanding the provisions of this
Section 830-35 | 19 | | with respect to the
farmers, agribusinesses, and lenders who | 20 | | may obtain State Guarantees, the
Authority may promulgate rules | 21 | | establishing the eligibility of farmers,
agribusinesses, and | 22 | | lenders to participate in the State Guarantee program and
the | 23 | | terms, standards, and procedures that will apply, when the | 24 | | Authority finds
that emergency conditions in Illinois | 25 | | agriculture have created the need for
State Guarantees pursuant | 26 | | to terms, standards, and procedures other than those
specified |
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| 1 | | in this
Section.
| 2 | | (Source: P.A. 99-509, eff. 6-24-16.)
| 3 | | (20 ILCS 3501/830-45)
| 4 | | Sec. 830-45. Young Farmer Loan Guarantee Program.
| 5 | | (a) The Authority is authorized to issue State Guarantees | 6 | | to lenders for
loans
to finance or refinance debts of young | 7 | | farmers. For the purposes of this
Section, a young farmer is a | 8 | | resident of Illinois who is at least 18 years of
age and who is | 9 | | a principal operator of a farm or land, who derives at least | 10 | | 50%
of annual gross income from farming, whose net worth is not | 11 | | less than $10,000
and whose debt to asset ratio is not less | 12 | | than 40%. For the purposes of this
Section, debt to asset ratio | 13 | | means current outstanding liabilities, including
any debt to be | 14 | | financed or refinanced under this
Section 830-45, divided by
| 15 | | current outstanding assets. The Authority shall establish the | 16 | | maximum
permissible debt to asset ratio based on criteria | 17 | | established by the Authority.
Lenders shall apply for the State | 18 | | Guarantees on forms provided by the Authority
and certify that | 19 | | the application and any other documents submitted are true and
| 20 | | correct. The lender or borrower, or both in combination, shall | 21 | | pay an
administrative fee as determined by the Authority. The | 22 | | applicant shall be
responsible for paying any fee or charge | 23 | | involved in recording mortgages,
releases, financing | 24 | | statements, insurance for secondary market issues, and any
| 25 | | other similar fee or charge that the Authority may require. The |
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| 1 | | application
shall at a minimum contain the young farmer's name, | 2 | | address, present credit and
financial information, including | 3 | | cash flow statements, financial statements,
balance sheets, | 4 | | and any other information pertinent to the application, and the
| 5 | | collateral to be used to secure the State Guarantee. In | 6 | | addition, the borrower
must certify to the Authority that, at | 7 | | the time the State Guarantee is
provided,
the borrower will not | 8 | | be delinquent in the repayment of any debt. The lender
must | 9 | | agree to charge a fixed or adjustable interest rate that the | 10 | | Authority
determines to be below the market rate of interest | 11 | | generally available to the
borrower. If both the lender and | 12 | | applicant agree, the interest rate on the
State guaranteed loan | 13 | | can be converted to a fixed interest rate at any time
during | 14 | | the term of the loan.
State Guarantees provided under this
| 15 | | Section (i) shall not exceed $2,000,000 $500,000 per
young | 16 | | farmer, (ii) shall be set up on a payment schedule not to | 17 | | exceed 30
years,
but shall be no longer than 15 years in | 18 | | duration, and (iii) shall be subject to
an annual review and | 19 | | renewal by the lender and the Authority. A young farmer
may
use | 20 | | this program more than once provided the aggregate principal | 21 | | amount of
State
Guarantees under this
Section to that young | 22 | | farmer does not exceed $2,000,000 $500,000 . No
State Guarantee | 23 | | shall be revoked by the Authority without a 90-day notice, in
| 24 | | writing, to all parties.
| 25 | | (b) The Authority shall provide or renew a State Guarantee | 26 | | to a lender if:
|
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| 1 | | (i) The lender pays a fee equal to 25 basis points on | 2 | | the loan to the
Authority on
an annual basis.
| 3 | | (ii) The application provides collateral acceptable to | 4 | | the
Authority that is at least equal to the State | 5 | | Guarantee.
| 6 | | (iii) The lender
assumes all responsibility and costs | 7 | | for pursuing legal action on collecting
any
loan that is | 8 | | delinquent or in default.
| 9 | | (iv) The lender is at risk for the
first 10% 15% of the | 10 | | outstanding principal of the note for which the State
| 11 | | Guarantee
is provided.
| 12 | | (c) The Illinois Agricultural Loan Guarantee Fund, the | 13 | | Illinois Farmer and Agribusiness Loan Guarantee Fund, and the | 14 | | Industrial Project Insurance Fund may be used to
secure State | 15 | | Guarantees issued under this
Section as provided in
Section | 16 | | 830-30, Section 830-35, and subsection (j) of Section 805-20, | 17 | | respectively. All payments by the Authority to satisfy claims | 18 | | against the State Guarantee shall be made, in whole or in part, | 19 | | from any of the following funds in such order and in such | 20 | | amounts as the Authority shall determine: (1) the Industrial | 21 | | Project Insurance Fund (if the Authority exercises its | 22 | | discretion under subsection (j) of Section 805-20); (2) the | 23 | | Illinois Agricultural Loan Guarantee Fund; or (3) the Illinois | 24 | | Farmer and Agribusiness Loan Guarantee Fund.
| 25 | | (d) Notwithstanding the provisions of this
Section 830-45 | 26 | | with respect to the
young farmers and lenders who may obtain |
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| 1 | | State Guarantees, the Authority may
promulgate rules | 2 | | establishing the eligibility of young farmers and lenders to
| 3 | | participate in the State Guarantee program and the terms, | 4 | | standards, and
procedures that will apply, when the Authority | 5 | | finds that emergency conditions
in Illinois agriculture have | 6 | | created the need for State Guarantees pursuant to
terms, | 7 | | standards, and procedures other than those specified in this
| 8 | | Section.
| 9 | | (Source: P.A. 99-509, eff. 6-24-16.)
| 10 | | Section 99. Effective date. This Act takes effect upon | 11 | | becoming law.
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