(50 ILCS 20/14.1) (from Ch. 85, par. 1044.1)
Sec. 14.1.
In addition to the permanent financing authorized by Sections
14 and 15 of this Act, the board of commissioners of any public building
commission may borrow money and issue interim notes in evidence thereof, in
the manner following:
(a) Whenever it is deemed advisable and in the interests of the
Commission to borrow funds temporarily for any of the purposes herein
provided, in advance of permanent financing, the Board of Commissioners may
from time to time and pursuant to appropriate resolution, borrow money and
issue interim notes to evidence borrowings for the purpose of obtaining
funds for any of its projects or to perform any of the duties or functions
authorized under this Act, and, in addition, to obtain funds with which to
acquire the area or site selected and approved, and for the erection,
alteration, improvement, maintenance, operation or demolition of a building
or buildings or other facilities located or to be located thereon for the
purposes provided for by this Act, and with which to pay all necessary and
incidental costs and expenses in connection therewith, including, but
without in any way limiting the generality of the foregoing, general
administrative expenses of the commission, preliminary project planning,
area or site planning, surveying, appraisal, architectural, engineering,
demolition, maintenance, operation and insurance costs and expenses, and
interest on such borrowings until the date of the permanent financing. Any
resolution authorizing the issuance of such notes shall describe the nature
of the project, the area or site to be acquired, if the same shall have
then been selected, located, designated and approved, or the work to be
done and shall specify the principal amount, rate of interest (not
exceeding the maximum rate authorized by the Bond Authorization Act, as
amended at the time of the making of the contract) and maturity date which
shall be the same for all interim notes but not to exceed 5 years from date
of issue of the first of such notes so issued, and such other terms as may
be specified in such resolution. However, the time of payment of any such
notes may be extended for a period of not exceeding 2 years from the
maturity date thereof.
The Board of Commissioners may provide for the registration of the notes
in the name of the owner either as to principal alone, or as to both
principal and interest, on such terms and conditions as the Board may
determine by the resolution authorizing their issue. The notes shall be
issued from time to time by the Board of Commissioners as funds are
borrowed, in the manner the Board of Commissioners may determine. Interest
on the notes may be made payable semiannually, annually or at maturity. The
notes may be made redeemable, prior to maturity, at the option of the
Commission, in the manner and upon the terms fixed by the resolution
authorizing their issuance. The notes may be executed in the name of the
Commission by the Chairman of the Board of Commissioners or by any other
officer or officers of the Commission as the Board by resolution may
direct, shall be attested by the Secretary or such other officer or
officers of the Commission as the Board may by resolution direct, and be
sealed with the Commission's corporate seal. All such notes and the
interest thereon may be secured by a pledge of any income and revenue
derived by the Commission from the property to be acquired with the
proceeds of the notes, after deducting from such income and revenue any
reasonable and necessary maintenance and operation expenses, and shall be
payable solely from such income and revenue and from the proceeds to be
derived from the sale of any revenue bonds for permanent financing
authorized to be issued under Sections 14 and 15 of this Act, and from the
property acquired with the proceeds of the notes.
Contemporaneously with the issue, as provided by this Act, of revenue
bonds all interim notes, even though they may not then have matured, shall
be paid, both principal and interest to date of payment, from the funds
derived from the sale of revenue bonds for the permanent financing and such
interim notes shall be surrendered and canceled.
(b) The Commission, in order further to secure the payment of the
interim notes, is, in addition to the foregoing, authorized and empowered
to do the following:
1. Pledge or mortgage all or any part of the property to be acquired
with the proceeds of the interim notes, or provide otherwise for the sale,
public or private and with or without notice, of all or any part of the
property, in the event of default in payment of principal of or interest on
the interim notes or on any covenant or agreement of the Commission in
connection with the interim notes, and in the event of any such default to
permit the acceleration of the maturity of the interim notes. Except with
respect to the funds derived from revenue bonds, as provided in this
Section no pledge, mortgage or provision for the sale of any property
shall relate to any property, other than the property to be acquired with
the proceeds of any and all such interim notes, and any net income and
revenue derived from the property.
2. Covenant against pledging or mortgaging or otherwise disposing of all
or any part of or interest in the property to be acquired with proceeds of
the interim notes, or any net income derived from the property; and against
permitting or allowing any lien on the property or its net income; and
against any borrowings or incurring liabilities in addition to the
borrowings and liabilities, evidenced by the interim notes, prior to the
issuance of revenue bonds; and against the issue of interim notes in excess
of a specified principal amount; and against preference of any interim note
over any other interim note as to payment of interest or principal; and
against making any substitutions for or additions or improvements to such
property except with the proceeds derived from borrowings evidenced by any
and all such interim notes; or with the net income derived from such property.
3. Make any other or additional covenants, terms and conditions not
inconsistent with the provisions of subparagraph (a) of this Section, and
do any and all acts and things as may be necessary or convenient or
desirable in order to secure payment of its interim notes, or, in the
discretion of the Commission, as will tend to make the interim notes more
acceptable to lenders, notwithstanding that the covenants, acts or things
may not be enumerated herein. However, nothing contained in this
subparagraph shall authorize the Commission to secure the payment of the
interim notes out of property, other than the property acquired with the
proceeds of the interim notes, and any net income and revenue derived from
the property and the proceeds of revenue bonds as provided in this Section.
(c) The interim notes shall not constitute an indebtedness within the
meaning of any constitutional or statutory debt limitation or restriction.
(d) No member, officer, agent or employee of the Commission, nor any
other person who executes interim notes, shall be liable personally thereon
by reason of the issuance thereof.
With respect to instruments for the payment of money issued under this
Section either before, on, or after the effective date of this amendatory
Act of 1989, it is and always has been the intention of the General
Assembly (i) that the Omnibus Bond Acts are and always have been
supplementary grants of power to issue instruments in accordance with the
Omnibus Bond Acts, regardless of any provision of this Act that may appear
to be or to have been more restrictive than those Acts, (ii) that the
provisions of this Section are not a limitation on the supplementary
authority granted by the Omnibus Bond Acts, and (iii) that instruments
issued under this Section within the supplementary authority granted
by the Omnibus Bond Acts are not invalid because of any provision of
this Act that may appear to be or to have been more restrictive than
those Acts.
(Source: P.A. 86-4.)
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