(70 ILCS 520/7) (from Ch. 85, par. 6157)
Sec. 7.
(a) The Authority, with the written approval of the Governor,
shall have the continuing power to issue bonds, notes, or other evidences
of indebtedness for the purpose of developing, constructing, acquiring or
improving projects, including without limitation those established by
business entities locating or expanding property within the territorial
jurisdiction of the Authority, for entering into venture capital agreements
with businesses locating or expanding within the territorial jurisdiction
of the Authority, for acquiring and improving any property necessary and
useful in connection therewith, for the purposes of the Employee Ownership
Assistance Act, and any local government projects. With respect to any
local government project, the Authority is authorized to purchase from time
to time pursuant to negotiated sale or to otherwise acquire from time to
time any local government security upon terms and conditions as the
Authority may prescribe in connection therewith. For the purpose of
evidencing the obligations of the Authority to repay any money borrowed for
any project, the Authority may, pursuant to resolution, from time to time
issue and dispose of its interest bearing revenue bonds, notes or other
evidences of indebtedness and may also from time to time issue and dispose
of such bonds, notes or other evidences of indebtedness to refund, at
maturity, at a redemption date or in advance of either, any bonds, notes or
other evidences of indebtedness pursuant to redemption provisions or at any
time before maturity. All such bonds, notes or other evidences of
indebtedness shall be payable solely and only from the revenues or income
to be derived from loans made with respect to projects, from the leasing or
sale of the projects or from any other funds available to the Authority for
such purposes. The bonds, notes or other evidences of indebtedness may
bear such date or dates, may mature at such time or times not exceeding 40
years from their respective dates, notwithstanding any other law to the
contrary may bear interest at such rate or rates payable annually,
semi-annually, quarterly or monthly, may be in such form, may carry such
registration privileges, may be executed in such manner, may be payable at
such place or places, may be made subject to redemption in such manner and
upon such terms, with or without premium as is stated on the face thereof,
may be authenticated in such manner and may contain such terms and
covenants as may be provided by an applicable resolution.
(b)(1) The holder or holders of any bonds, notes or other |
(c) Notwithstanding the form and tenor of any such bonds, notes or other
evidences of indebtedness and in the absence of any express recital on the
face thereof that it is non-negotiable, all such bonds, notes and other
evidences of indebtedness shall be negotiable instruments. Pending the
preparation and execution of any such bonds, notes or other evidences of
indebtedness, temporary bonds, notes or evidences of indebtedness may be
issued as provided by ordinance.
(d) To secure the payment of any or all of such bonds, notes or other
evidences of indebtedness, the revenues to be received by the Authority from
a lease agreement or loan agreement shall be pledged, and, for the purpose
of setting forth the covenants and undertakings of the Authority in
connection with the issuance thereof and the issuance of any additional
bonds, notes or other evidences of indebtedness payable from such revenues,
income or other funds to be derived from projects, the Authority may
execute and deliver a mortgage or trust agreement. A remedy for any breach
or default of the terms of any such mortgage or trust agreement by the
Authority may be by mandamus proceedings in the appropriate circuit court
to compel the performance and compliance therewith, but the trust agreement
may prescribe by whom or on whose behalf such action may be instituted.
(e) Such bonds or notes shall be secured as provided in the authorizing
ordinance which may, notwithstanding any other provision of this Act,
include in addition to any other security a specific pledge or assignment
of and lien on or security interest in any or all revenues or money of the
Authority from whatever source which may by law be used for debt
service purposes and a specific pledge or assignment of and lien on or
security interest in any funds or accounts established or provided for by
ordinance of the Authority authorizing the issuance of such bonds or notes
and, with respect to any local government project, may include without
limitation a pledge of any local government securities, including any
payments thereon.
(f) In the event that the Authority determines that monies of the
Authority will not be sufficient for the payment of the principal of and
interest on its bonds during the next State fiscal year, the Chairman, as
soon as practicable, shall certify to the Governor the amount required by
the Authority to enable it to pay such principal of and interest on the
bonds. The Governor shall submit the amount so certified to the General
Assembly as soon as practicable, but no later than the end of the current
State fiscal year. This subsection shall not apply to any bonds or notes as
to which the Authority shall have determined, in the resolution authorizing
the issuance of the bonds or notes, that this subsection shall not apply.
Whenever the Authority makes such a determination, that fact shall be
plainly stated on the face of the bonds or notes, and that fact shall also
be reported to the Governor.
In the event of a withdrawal of moneys from a reserve fund established
with respect to any issue or issues of bonds of the Authority to pay
principal or interest on those bonds, the Chairman of the Authority, as
soon as practicable, shall certify to the Governor the amount required
to restore the reserve fund to the level required in the resolution or
indenture securing those bonds. The Governor shall submit the amount so
certified to the General Assembly as soon as practicable, but no later than
the end of the current State fiscal year.
(g) The State of Illinois pledges to and agrees with the holders of the
bonds and notes of the Authority issued pursuant to this Section that the
State will not limit or alter the rights and powers vested in the Authority
by this Act so as to impair the terms of any contract made by the Authority
with such holders or in any way impair the rights and remedies of such
holders until such bonds and notes, together with interest thereon, with
interest on any unpaid installments of interest, and all costs and expenses
in connection with any action or proceedings by or on behalf of such
holders, are fully met and discharged. In addition, the State pledges to
and agrees with the holders of the bonds and notes of the Authority issued
pursuant to this Section that the State will not limit or alter the basis
on which State funds are to be paid to the Authority as provided in this
Act, or the use of such funds, so as to impair the terms of any such
contract. The Authority is authorized to include these pledges and
agreements of the State in any contract with the holders of bonds or notes
issued under this Section.
(Source: P.A. 86-1455; 87-778.)
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