Full Text of HB4862 102nd General Assembly
HB4862 102ND GENERAL ASSEMBLY |
| | 102ND GENERAL ASSEMBLY
State of Illinois
2021 and 2022 HB4862 Introduced 1/27/2022, by Rep. Deanne M. Mazzochi SYNOPSIS AS INTRODUCED: |
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Creates the Better Opportunities for Learning and Development (BOLD) Act. Provides that a governmental unit may establish a property assessed individualized learning opportunity program and create a BOLD area or BOLD areas under the program. Provides that, under the program, the governmental unit may enter into an assessment contract with the record owner of property within a BOLD area to finance or refinance one or more individualized learning opportunity for a resident who owns the property or a child or ward of the resident owner. Sets forth required provisions for the contract with the resident owner. Contains other provisions. Effective immediately.
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| | 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 1. Short title. This Act may be cited as the Better | 5 | | Opportunities for Learning and Development (BOLD) Act. | 6 | | Section 5. Definitions. As used in this Act: | 7 | | "Assessment" means a special assessment imposed by a | 8 | | governmental unit pursuant to an assessment contract. | 9 | | "Assessment contract" means a voluntary written contract | 10 | | between the applicable governmental unit (or a permitted | 11 | | assignee) and record owner governing the terms and conditions | 12 | | of financing and assessment under a program. | 13 | | "Authority" means the Illinois Finance Authority. | 14 | | "BOLD area" means an area designated by a governmental | 15 | | unit under Section 10. | 16 | | "Capital provider" means any credit union, federally | 17 | | insured depository institution, insurance company, trust | 18 | | company, or other entity approved by a governmental unit or | 19 | | its program administrator or program administrators that | 20 | | finances or refinances an individualized learning opportunity | 21 | | by purchasing BOLD bonds issued by the governmental unit or | 22 | | the Authority for that purpose. "Capital provider" also means | 23 | | any special purpose vehicle that is directly or indirectly |
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| 1 | | wholly owned by one or more of the entities listed in this | 2 | | definition or any bond underwriter. | 3 | | "Educational instructor" shall mean any instructor or | 4 | | provider of curriculum content for an individualized learning | 5 | | opportunity. | 6 | | "Governmental unit" means a county or municipality located | 7 | | in the State. | 8 | | "Individualized learning opportunity" means any | 9 | | educational program of study directed toward students aged 5 | 10 | | through 18, as well as job training opportunities for those | 11 | | students. | 12 | | Section 10. Property assessed individualized learning | 13 | | opportunity program; creation. | 14 | | (a) Pursuant to the procedures provided in Section 15, a | 15 | | governmental unit may establish a property assessed | 16 | | individualized learning opportunity program and, from time to | 17 | | time, create a BOLD area or BOLD areas under the program. | 18 | | (b) Under a program, the governmental unit may enter into | 19 | | an assessment contract with the record owner of property | 20 | | within a BOLD area to finance or refinance one or more | 21 | | individualized learning opportunity for a resident who owns | 22 | | the property or a child or ward of the resident owner. The | 23 | | assessment contract shall provide for the repayment of all or | 24 | | a portion of the cost of an individualized learning | 25 | | opportunity program through assessments upon the property |
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| 1 | | benefited. The amount of the financing or refinancing may | 2 | | include any and all of the following: the cost of books and | 3 | | instruction; the cost of labor to provide the instruction; if | 4 | | online instruction is provided, the cost of a router and | 5 | | computer; application and administrative fees; financing fees; | 6 | | reserves; capitalized interest; costs of billing the | 7 | | assessment; and all other fees, costs, and expenses that may | 8 | | be incurred by the record owner pursuant to the provisions of | 9 | | the individualized learning opportunity; provided, however, | 10 | | that this amount in total may not exceed the lesser of $7,500 | 11 | | per year or 90% of the existing property tax levy by a local | 12 | | unit of government that provides educational services at the | 13 | | level of instruction in the prior year for the property, less | 14 | | expenses levied by the school district unit for pension | 15 | | payments and capital expenditures. | 16 | | (c) A governmental unit may sell or assign, for | 17 | | consideration, any and all assessment contracts; the permitted | 18 | | assignee of the assessment contract shall have and possess the | 19 | | same delegable powers and rights at law or in equity as the | 20 | | applicable governmental unit would have if the assessment | 21 | | contract had not been assigned with regard to (i) the | 22 | | precedence and priority of liens evidenced by the assessment | 23 | | contract, (ii) the accrual of interest, and (iii) the fees and | 24 | | expenses of collection. The permitted assignee shall have the | 25 | | right to enforce such liens pursuant to subsection (a) of | 26 | | Section 30. No costs or attorney's fees incurred shall be |
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| 1 | | assigned to the recipient of the permitted assignee as a | 2 | | result of any foreclosure action or other legal proceeding | 3 | | brought pursuant to this Act for each record owner subject to | 4 | | the proceedings. Because a current market value for the | 5 | | assessment contracts is presently unknown, a governmental unit | 6 | | or the Authority may sell or assign assessment contracts | 7 | | without competitive bidding or the solicitation of requests | 8 | | for proposals or requests for qualifications through December | 9 | | 31, 2030; however, on and after January 1, 2031, competitive | 10 | | bidding or the solicitation of requests for proposals or | 11 | | requests for qualifications shall be required thereafter. | 12 | | (d) A program shall be administered by either one or more | 13 | | than one program administrators or the governmental unit, as | 14 | | determined by the governing body. | 15 | | (e) If expenses are incurred for elementary or secondary | 16 | | education for a child or ward of a property owner for a period | 17 | | of at least 5 years, or for a period of at least 3 years for | 18 | | multiple students, a governing body may further allow for the | 19 | | creation of an amortization schedule where the assessment may | 20 | | be amortized on a schedule where payoff amounts are to be | 21 | | completed by the time the property owner reaches the age of 65, | 22 | | and where the assessment payoff shall be accelerated in the | 23 | | event of a sale or transfer of property. | 24 | | Section 15. Program established. | 25 | | (a) To establish a property assessed individualized |
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| 1 | | learning opportunity, the governing body shall adopt a | 2 | | resolution or ordinance that includes all of the following: | 3 | | (1) a finding that one or more property owners within | 4 | | the BOLD district is subject to a local school district or | 5 | | community college district levy, and that educational | 6 | | attainment, job training, or preferred curriculum choices | 7 | | are not currently provided within existing school | 8 | | districts; | 9 | | (2) a statement of intent to facilitate access to
| 10 | | educational funding (which may be from one or more program | 11 | | administrators or as otherwise permitted by this Act) to | 12 | | provide funds for individualized learning opportunities, | 13 | | which will be repaid by assessments on the property | 14 | | benefited with the agreement of the record owners subject | 15 | | to the limitations provided in subsection (b) of Section | 16 | | 10 above; | 17 | | (3) a description of the proposed arrangements for
| 18 | | financing the program through the issuance of BOLD bonds | 19 | | under or in accordance with Section 35; those BOLD bonds | 20 | | may be purchased by one or more capital providers; | 21 | | (4) the types of individualized learning opportunities | 22 | | that may be financed or refinanced; | 23 | | (5) a description of the territory within the BOLD
| 24 | | area;
| 25 | | (6) a transcript of public comments if any
| 26 | | discretionary public hearing on the proposed program was |
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| 1 | | previously held by the governmental unit prior to the | 2 | | consideration of the resolution or ordinance establishing | 3 | | the program; and | 4 | | (7) the report on the proposed program as described
in | 5 | | Section 20; for this purpose, the resolution or ordinance | 6 | | may incorporate the report or an amended version thereof | 7 | | by reference and shall be available for public inspection.
| 8 | | (b) A property assessed individualized learning | 9 | | opportunity may be amended in accordance with the resolution | 10 | | or ordinance establishing the program. | 11 | | Section 20. Program report. The report on the proposed | 12 | | program required under Section 15 shall include all of the | 13 | | following: | 14 | | (1) a form of assessment contract between the
| 15 | | governmental unit and record owner governing the terms and | 16 | | conditions of financing and assessment under the program;
| 17 | | (2) identification of one or more officials
authorized | 18 | | to enter into an assessment contract on behalf of the | 19 | | governmental unit;
| 20 | | (3) after the first 2 years of operation, | 21 | | identification of the 5 most prevalent courses of study | 22 | | selected for the individualized learning opportunities, | 23 | | and the 5 most common ages or age ranges of those selecting | 24 | | the program in prior years; | 25 | | (4) an application process and eligibility
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| 1 | | requirements for financing or refinancing individualized | 2 | | learning opportunities under the program;
| 3 | | (5) a method for determining interest rates on
amounts | 4 | | financed or refinanced under assessment contracts, | 5 | | repayment periods, and the maximum amount of an | 6 | | assessment, if any;
| 7 | | (6) an explanation of the process for billing and
| 8 | | collecting assessments;
| 9 | | (7) a plan to finance the program pursuant to the
| 10 | | issuance of BOLD bonds under or in accordance with Section | 11 | | 35;
| 12 | | (8) information regarding all of the following, to
the | 13 | | extent known, or procedures to determine the following in | 14 | | the future:
| 15 | | (A) any revenue source or reserve fund or funds
to | 16 | | be used as security for BOLD bonds described in | 17 | | paragraph (7); and | 18 | | (B) any application, administration, or other
| 19 | | program fees to be charged to record owners | 20 | | participating in the program that will be used to | 21 | | finance and reimburse all or a portion of costs | 22 | | incurred by the governmental unit as a result of its | 23 | | program, but which may not exceed as to the property | 24 | | owner $250 or 5% of the amounts assessed, whichever is | 25 | | less; | 26 | | (9) a requirement that the term of an assessment not
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| 1 | | exceed the period of one year; and that the assessment may | 2 | | not exceed 5% of the value of the property per year; | 3 | | provided that an assessment contract financing or | 4 | | refinancing multiple children's individualized learning | 5 | | opportunities may have a term that may be amortized over a | 6 | | period of five years, as calculated in accordance with the | 7 | | principles established by the program report;
| 8 | | (10) If the 5% limit is to be modified, a requirement | 9 | | for an appropriate ratio of the
amount of the assessment | 10 | | to the greater of any of the following: | 11 | | (A) the value of the property as determined by
the | 12 | | office of the county assessor; or
| 13 | | (B) the value of the property as determined by an
| 14 | | appraisal conducted by a licensed appraiser; | 15 | | (11) a requirement that the record owner of property
| 16 | | subject to a mortgage obtain written consent from the | 17 | | mortgage holder before participating in the program;
| 18 | | (12) provisions for marketing and participant
| 19 | | education;
| 20 | | (13) provisions to avoid predatory lending practices; | 21 | | and | 22 | | (14) quality assurance and antifraud measures. | 23 | | Section 25. Assessment contracts with record owners of | 24 | | property. | 25 | | (a) A record owner of property within the BOLD area may |
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| 1 | | apply to the governmental unit or its program administrator or | 2 | | program administrators to finance or refinance an | 3 | | individualized learning opportunity under the governmental | 4 | | unit's program. | 5 | | (b) A governmental unit may impose an assessment under a | 6 | | property assessed individualized learning opportunity only | 7 | | pursuant to the terms of a recorded assessment contract with | 8 | | the record owner of the property to be assessed. | 9 | | (c) Before entering into an assessment contract with a | 10 | | record owner under a program, the governmental unit or its | 11 | | program administrator or program administrators shall verify | 12 | | that the applicable property is entirely within the BOLD area | 13 | | and receive evidence of all of the following: | 14 | | (1) a description of the curriculum for the proposed | 15 | | individualized learning opportunity; | 16 | | (2) that there are no delinquent taxes, special
| 17 | | assessments, or water or sewer charges on the property;
| 18 | | (3) that there are no delinquent assessments on the
| 19 | | program;
| 20 | | (4) whether there are any involuntary liens on the
| 21 | | property, including, but not limited to, construction or | 22 | | mechanics liens, lis pendens or judgments against the | 23 | | record owner, environmental proceedings, or eminent domain | 24 | | proceedings;
| 25 | | (5) that no notices of default or other evidence of
| 26 | | property-based debt delinquency have been recorded and not |
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| 1 | | cured;
| 2 | | (6) that the record owner is current on all mortgage
| 3 | | debt on the property, the record owner has not filed for | 4 | | bankruptcy in the last 2 years, and the property is not an | 5 | | asset in a current bankruptcy proceeding;
| 6 | | (7) that the individualized learning opportunity shall | 7 | | be performed under the supervision of an accredited | 8 | | program, certified educator in the State of Illinois or | 9 | | another State, and for job training opportunities that are | 10 | | supervised by a professional in the industry or a | 11 | | vocational educator in which the job training is being | 12 | | taught
or other individual licensed under the Department | 13 | | of Financial and Professional Regulation, or who has been | 14 | | certified by a national professional organization, who has | 15 | | agreed to adhere to a set of terms and conditions through a | 16 | | process established by the governmental unit or its | 17 | | program administrator or program administrators;
| 18 | | (8) that the educational instructor or instructors | 19 | | providing the individualized learning opportunity has or
| 20 | | have signed a written acknowledgment that the governmental | 21 | | unit or its program administrator or program | 22 | | administrators will not authorize final payment to the | 23 | | educational instructor or instructors until the | 24 | | governmental unit has received written confirmation from | 25 | | the record owner that the individualized learning | 26 | | opportunity was properly completed; and if any |
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| 1 | | certification standard was agreed upon, that the student | 2 | | has achieved the applicable certification; provided, | 3 | | however, that the educational instructor or instructors | 4 | | retain all legal rights and remedies in the event there is | 5 | | a disagreement with the record owner;
| 6 | | (9) that the aggregate amount financed or refinanced
| 7 | | under one or more assessment contracts beyond the tax | 8 | | levies that the property would already incur in connection | 9 | | with a local school district does not exceed 25% in | 10 | | relation to the greater of any of the following: | 11 | | (A) the value of the property as determined by
the | 12 | | office of the county assessor; or
| 13 | | (B) the value of the property as determined by an
| 14 | | appraisal conducted by a licensed appraiser; and | 15 | | (10) that there is a process for evaluation of the | 16 | | value and quality of the individualized learning | 17 | | opportunity. | 18 | | (d) Before entering into an assessment contract with the | 19 | | governmental unit, the record owner shall provide to the | 20 | | mortgage holders of any existing mortgages encumbering or | 21 | | otherwise secured by the property a notice of the record | 22 | | owner's intent to enter into an assessment contract with the | 23 | | governmental unit, together with the maximum principal amount | 24 | | to be financed or refinanced and the maximum annual assessment | 25 | | necessary to repay that amount, along with an additional | 26 | | request that the mortgage holders of any existing mortgages |
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| 1 | | consent to the record owner subjecting the property to the | 2 | | program. The governmental unit shall be provided with a copy | 3 | | or other proof of those notices and the written consent of the | 4 | | mortgage holder for the record owner to enter into the | 5 | | assessment contract which acknowledges that (i) the existing | 6 | | mortgage or mortgages for which the consent was received will | 7 | | be subordinate to the assessment contract and the lien created | 8 | | thereby and (ii) the governmental unit or its permitted | 9 | | assignee can foreclose the property if the assessments are not | 10 | | paid. | 11 | | (e) The first recourse for securing funds to repay | 12 | | assessments associated with an individualized learning | 13 | | opportunity program under this Act are the existing property | 14 | | tax levies imposed each year by the local school district | 15 | | taxing body for that property owner, provided that neither the | 16 | | property owner, nor the property owner's children or wards, | 17 | | are currently attending the unit of local government for which | 18 | | a levy is being imposed. | 19 | | (f) If the record owner has signed a certification that | 20 | | the governmental unit has complied with the provisions of this | 21 | | Section, then this shall be conclusive evidence as to | 22 | | compliance with these provisions, but shall not relieve any | 23 | | educational instructor or the governmental unit from any | 24 | | potential liability. | 25 | | (g) If assessments cannot be paid by the property owner, | 26 | | best efforts shall be made to amortize the outstanding |
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| 1 | | assessed amounts over the life of the owner up to the age of | 2 | | 65, with interest to accrue at a rate not to exceed 5% per | 3 | | year. | 4 | | (h) The imposition of any assessment pursuant to this Act | 5 | | shall be exempt from any other statutory procedures or | 6 | | requirements that condition the imposition of special | 7 | | assessments or taxes against property, except as specifically | 8 | | set forth in this Act. | 9 | | Section 30. Assessments constitute a lien; billing and | 10 | | collecting. | 11 | | (a) An assessment contract shall be recorded with the | 12 | | county in which the BOLD area is located. An assessment | 13 | | imposed under a property assessed individualized learning | 14 | | opportunity pursuant to an assessment contract, including any | 15 | | interest on the assessment and any penalty, shall, upon | 16 | | recording of the assessment contract in the county in which | 17 | | the BOLD area is located, constitute a lien against the | 18 | | property on which the assessment is imposed until the | 19 | | assessment, including any interest or penalty, is paid in | 20 | | full. The lien of the assessment contract shall run with the | 21 | | property until the assessment is paid in full and a | 22 | | satisfaction or release for the same has been recorded by the | 23 | | governmental unit or its program administrator or program | 24 | | administrators and shall have the same lien priority and | 25 | | status as other property tax and special assessment liens as |
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| 1 | | provided in the Property Tax Code. The governmental unit (or | 2 | | any permitted assignee) shall have all rights and remedies in | 3 | | the case of default or delinquency in the payment of an | 4 | | assessment as it does with respect to delinquent property | 5 | | taxes and other delinquent special assessments as set forth in | 6 | | Article 9 of the Illinois Municipal Code, including the lien, | 7 | | sale, and foreclosure remedies described in that Article, | 8 | | provided that, if the individualized learning opportunity | 9 | | involves students under the age of 18, no foreclosure action | 10 | | may occur until the student reaches the age of majority; or | 11 | | five years from the date on which the student has completed the | 12 | | individualized learning opportunity that generated the | 13 | | assessment, whichever is later. When the assessment, including | 14 | | any interest and penalty, is paid in full, the lien shall be | 15 | | removed and released from the property. | 16 | | (b) The assessment shall be imposed by the governmental | 17 | | unit against each lot, block, tract, and parcel of land set | 18 | | forth in the assessment contract. | 19 | | (c) Assessments created under this Act may be billed and | 20 | | collected as follows: | 21 | | (1) A county which has established a program may
| 22 | | include assessments in the regular property tax bills of | 23 | | the county. The county collector of the county in which a | 24 | | BOLD area is located may bill and collect assessments with | 25 | | the regular property tax bills of the county if requested | 26 | | by a municipality within its jurisdiction; no municipality |
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| 1 | | is required to make such a request of its county | 2 | | collector. If the county collector agrees to bill and | 3 | | collect assessments with the regular property tax bills of | 4 | | the county, then the applicable assessment contract shall | 5 | | be filed with the county collector and the annual amount | 6 | | due as set forth in an assessment contract shall become | 7 | | due in installments at the times property taxes shall | 8 | | become due in accordance with each regular property tax | 9 | | bill payable during the year in which such assessment | 10 | | comes due;
| 11 | | (2) If the county collector does not agree to bill
and | 12 | | collect assessments with the regular property tax bills of | 13 | | the county or the governmental unit in which the BOLD area | 14 | | is located declines to request the county collector to do | 15 | | so, then the governmental unit shall bill and collect the | 16 | | assessments, either directly or as permitted in paragraph | 17 | | (3) of this subsection, and the annual amount due as set | 18 | | forth in an assessment contract shall become due in | 19 | | installments on or about the times property taxes would | 20 | | otherwise become due in accordance with each regular | 21 | | property tax bill payable during the year in which such | 22 | | assessment comes due; or
| 23 | | (3) If a governmental unit is billing and collecting
| 24 | | assessments pursuant to paragraph (2) of this subsection, | 25 | | assessment installments may be billed and collected by the | 26 | | governmental unit's program administrator or program |
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| 1 | | administrators or another third party. | 2 | | The assessment installments for assessments billed as | 3 | | provided for under any paragraph of this subsection shall be | 4 | | payable at the times and in the manner as set forth in the | 5 | | applicable bill. | 6 | | (d) If a governmental unit, a program administrator, or | 7 | | another third party is billing and collecting assessments | 8 | | pursuant to subsection (b), and the applicable assessment | 9 | | becomes delinquent during any year, the applicable collector | 10 | | shall, on or before the date in such year required by the | 11 | | county in which the BOLD area is located, make a report in | 12 | | writing to the general office of the county in which the | 13 | | applicable property subject to the assessment is situated and | 14 | | authorized by the general revenue laws of this State to apply | 15 | | for judgment and sell lands for taxes due the county and the | 16 | | State, of the assessments or installments thereof the | 17 | | applicable collector has billed for and not received as | 18 | | required under the applicable bill, including any interest or | 19 | | penalties that may be due as set forth in the applicable | 20 | | assessment contract, unless otherwise limited in this Act. | 21 | | This report shall be certified by the applicable collector and | 22 | | shall include statements that (i) the report contains true and | 23 | | correct list of delinquent assessments that the collector has | 24 | | not received as required by the applicable bill and (ii) an | 25 | | itemization of the amount of the delinquent assessment, | 26 | | including interest and penalties, if applicable. The report of |
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| 1 | | the applicable collector, when so made, shall be prima facie | 2 | | evidence that all requirements of the law in relation to | 3 | | making the report have been complied with and that the | 4 | | assessments or the matured installments thereof, and the | 5 | | interest thereon, and the interest accrued on installments not | 6 | | yet matured, mentioned in the report, are due and unpaid. Upon | 7 | | proper filing of such report, at the direction of the | 8 | | governmental unit or its permitted assignee, the county | 9 | | collector shall enforce the collection of the assessments in | 10 | | the manner provided by law. | 11 | | (e) Payment received by mail and postmarked on or before | 12 | | the required due date is not delinquent. From and after the due | 13 | | date of any installment of an assessment, an additional rate | 14 | | of interest of 1/2% per month above the prime rate established | 15 | | by the Federal Reserve may be imposed with respect to the | 16 | | delinquent amount of such installment, which shall be payable | 17 | | to the applicable governmental unit or other permitted | 18 | | assignee as set forth in the applicable bill, unless otherwise | 19 | | limited by this Act. | 20 | | Section 35. Issuance of BOLD bonds. | 21 | | (a) Except as provided for in subsection (k), a | 22 | | governmental unit shall issue BOLD bonds under this Act, or | 23 | | the Authority shall issue BOLD bonds in accordance with this | 24 | | Act and pursuant to subsection (d) of Section 825-65 of the | 25 | | Illinois Finance Authority Act, in either case to finance or |
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| 1 | | refinance energy projects under a property assessed | 2 | | individualized learning opportunity program. | 3 | | (b) BOLD bonds issued under this Act or in accordance with | 4 | | this Act and pursuant to subsection (d) of Section 825-65 of | 5 | | the Illinois Finance Authority Act: | 6 | | (1) shall not be general obligations of the
| 7 | | governmental unit or the Authority, as applicable, but | 8 | | shall be secured by the following:
| 9 | | (A) payments under one or more assessment
| 10 | | contracts on benefited property or properties within | 11 | | the BOLD area or BOLD areas specified;
| 12 | | (B) if applicable, municipal bond insurance,
| 13 | | letters of credit, or public or private guarantees or | 14 | | sureties;
| 15 | | (C) if applicable, revenue sources or reserves
| 16 | | established by the governmental unit or the Authority | 17 | | from bond proceeds or other lawfully available funds; | 18 | | and | 19 | | (D) the property owner's share of a property tax | 20 | | levy that has been imposed or would be imposed by a | 21 | | local school district. | 22 | | (2) may be secured on a parity basis with BOLD bonds
of | 23 | | another series or subseries issued by the governmental | 24 | | unit or the Authority pursuant to the terms of a master | 25 | | indenture entered into as authorized by an ordinance or | 26 | | resolution adopted by the governing body or the Authority, |
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| 1 | | as applicable;
| 2 | | (3) may bear interest at any rate or rates not to
| 3 | | exceed such rate or rates as the governing body or the | 4 | | Authority shall determine by ordinance or resolution, | 5 | | unless otherwise limited by this Act;
| 6 | | (4) may pay interest upon the date or dates described
| 7 | | in such BOLD bonds;
| 8 | | (5) shall have a maturity no more than 20 years from
| 9 | | the date of issuance;
| 10 | | (6) may be subject to redemption with or without
| 11 | | premium upon such terms and provisions as may be provided | 12 | | under the terms of a master indenture entered into as | 13 | | authorized by an ordinance or resolution adopted by the | 14 | | governing body or the Authority, as applicable, including, | 15 | | without limitation, terms as to the order of redemption | 16 | | (numerical, pro rata, by series, subseries, or otherwise) | 17 | | and as to the timing thereof;
| 18 | | (7) shall be negotiable instruments under Illinois
law | 19 | | and be subject to the Registered Bond Act; and
| 20 | | (8) may be payable either serially or at term, or any
| 21 | | combination thereof, in such order of preference, | 22 | | priority, lien position, or rank (including, without | 23 | | limitation, numerical, pro rata, by series, subseries, or | 24 | | otherwise) as the governing body or Authority may provide. | 25 | | (c) A pledge of assessments, funds, or contractual rights | 26 | | made by a governmental unit or the Authority in connection |
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| 1 | | with the issuance of BOLD bonds under this Act or in accordance | 2 | | with this Act and pursuant to Section 825-65 of the Illinois | 3 | | Finance Authority Act constitutes a statutory lien on the | 4 | | assessments, funds, or contractual rights so pledged in favor | 5 | | of the person or persons to whom the pledge is given, without | 6 | | further action taken by a governmental unit or the Authority, | 7 | | as applicable. The statutory lien is valid and binding against | 8 | | all other persons, with or without notice. | 9 | | (d) The State pledges to and agrees with the holders of any | 10 | | BOLD bonds issued under this Act or in accordance with the Act | 11 | | and pursuant to Section 825-65 of the Illinois Finance | 12 | | Authority Act that the State will not limit or alter the rights | 13 | | and powers vested in governmental units by this Act or in the | 14 | | Authority in accordance with this Act and pursuant to Section | 15 | | 825-65 of the Illinois Finance Authority Act so as to impair | 16 | | the terms of any contract made by a governmental unit or by the | 17 | | Authority with those bondholders or in any way to impair the | 18 | | rights or remedies of those bondholders until the BOLD bonds, | 19 | | together with the interest thereon, and all costs and expenses | 20 | | in connection with any actions or proceedings by or on behalf | 21 | | of those bondholders are fully met and discharged. | 22 | | (e) BOLD bonds issued under this Act or in accordance with | 23 | | this Act and pursuant to Section 825-65 of the Illinois | 24 | | Finance Authority Act further essential public and | 25 | | governmental purposes, including, but not limited to, | 26 | | expanding opportunity for educational development; workforce |
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| 1 | | development; educational opportunity; improving access to | 2 | | gifted students to challenging curriculum; assisting special | 3 | | needs students whose current curriculum options are not | 4 | | adequately serving their needs; and attempting to more | 5 | | equitably distribute educational benefits, particularly to | 6 | | lower income homeowners whose children would otherwise be | 7 | | obligated to attend failing schools, and increased employment. | 8 | | (g) A capital provider can assign its rights to purchase | 9 | | BOLD bonds issued by the governmental unit or the Authority to | 10 | | a designated transferee. | 11 | | (h) A law firm shall be retained to give a written bond | 12 | | opinion in connection with any BOLD bond issued under this Act | 13 | | or in accordance with this Act and pursuant to Section 825-65 | 14 | | of the Illinois Finance Authority Act in form and substance as | 15 | | requested by the issuer of the BOLD bonds or the capital | 16 | | provider. | 17 | | (i) BOLD bonds issued by the Authority in accordance with | 18 | | this Act and pursuant to subsection (d) of Section 825-65 of | 19 | | the Illinois Finance Authority Act shall not be entitled to | 20 | | the benefits of Section 825-75 of the Illinois Finance | 21 | | Authority Act. | 22 | | (j) BOLD bonds issued by a governmental unit may otherwise | 23 | | have any attributes permitted to bonds under the Local | 24 | | Government Debt Reform Act, as the governing body may provide. | 25 | | (k) Interim financing prior to the issuance of BOLD bonds | 26 | | authorized by this Section may be provided only by a warehouse |
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| 1 | | fund, except that warehouse funds established by capital | 2 | | providers shall only interim finance energy projects secured | 3 | | by one or more assessment contracts for 36 months or less from | 4 | | the date of recording of the applicable assessment contract. | 5 | | Section 40. Supplemental powers. | 6 | | (a) The provisions of this Act are intended to be | 7 | | supplemental and in addition to all other powers or | 8 | | authorities granted to any governmental unit, shall be | 9 | | construed liberally, and shall not be construed as a | 10 | | limitation of any power or authority otherwise granted. | 11 | | (b) A governmental unit may use the provisions of this Act | 12 | | by referencing this Act in the resolution or ordinance | 13 | | described in Section 15. | 14 | | Section 45. Recital. BOLD bonds that are issued under this | 15 | | Act or in accordance with this Act and pursuant to Section | 16 | | 825-65 of the Illinois Finance Authority Act may contain a | 17 | | recital to that effect and any such recital shall be | 18 | | conclusive as against the issuer thereof and any other person | 19 | | as to the validity of the BOLD bonds and as to their compliance | 20 | | with the provisions of this Act and, as applicable, the | 21 | | provisions of Section 825-65 of the Illinois Finance Authority | 22 | | Act. | 23 | | Section 50. Validation. All actions taken by the Authority |
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| 1 | | or any governmental unit under this Act prior to the effective | 2 | | date of this Act, including, without limitation, creation of a | 3 | | property assessed individualized learning opportunity program | 4 | | under Section 10 and Section 15, preparation and approval of a | 5 | | report on the proposed program under Section 20, entering into | 6 | | assessment contracts under Section 25, and issuance of bonds, | 7 | | notes, and other evidences of indebtedness under Section 35 | 8 | | shall be unaffected by the enactment of an amendatory Act of a | 9 | | subsequent General Assembly and shall continue to be legal, | 10 | | valid, and in full force and effect.
| 11 | | Section 99. Effective date. This Act takes effect upon | 12 | | becoming law.
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