(70 ILCS 3205/13) (from Ch. 85, par. 6013)
Sec. 13. Bonds and notes.
(A) (1) The Authority may at any time and
from time to time issue bonds and notes for any corporate purpose,
including the establishment of reserves and the payment of interest and
costs of issuance. In this Act the term "bonds" includes notes of any
kind, interim certificates, refunding bonds, or any other evidence of
obligation for borrowed money issued under this Section 13. Bonds may be
issued in one or more series and may be payable and secured either on a
parity with or separately from other bonds.
(2) The bonds of any issue shall be payable solely from all or any part
of the property or
revenues of the Authority, including, without limitation:
(i) Rents, rates, fees, charges or other revenues |
| payable to or any receipts of the Authority, including amounts which are deposited pursuant to the Act with a trustee for bondholders;
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(ii) Payments by financial institutions, insurance
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| companies, or others pursuant to letters or lines of credit, policies of insurance, or purchase agreements;
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(iii) Investment earnings from funds or accounts
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| maintained pursuant to a bond resolution or trust agreement; and
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(iv) Proceeds of refunding bonds.
(3) Bonds may be authorized by a resolution of the Authority and may
be secured by a trust agreement by and between the Authority and a
corporate trustee or trustees, which may be any trust company or bank
having the powers of a trust company within or without the State. Bonds may:
(i) Mature at a time or times, whether as serial
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| bonds or as term bonds or both, not exceeding 40 years from their respective dates of issue;
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(ii) Notwithstanding the provision of "An Act to
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| authorize public corporations to issue bonds, other evidences of indebtedness and tax anticipation warrants subject to interest rate limitations set forth therein", approved May 26, 1970, as now or hereafter amended, or any other provision of law, bear interest at any fixed or variable rate or rates determined by the method provided in the resolution or trust agreement;
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(iii) Be payable at a time or times, in the
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| denominations and form, either coupon or registered or both, and carry the registration and privileges as to exchange, transfer or conversion and for the replacement of mutilated, lost, or destroyed bonds as the resolution or trust agreement may provide;
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(iv) Be payable in lawful money of the United States
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(v) Be subject to the terms of purchase, payment,
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| redemption, refunding or refinancing that the resolution or trust agreement provides;
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(vi) Be executed by the manual or facsimile
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| signatures of the officers of the Authority designated by the Authority which signatures shall be valid at delivery even for one who has ceased to hold office; and
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(vii) Be sold in the manner and upon the terms
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| determined by the Authority.
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(B) Any resolution or trust agreement may contain provisions which shall
be a part of the contract with the holders of the bonds as to:
(1) Pledging, assigning or directing the use,
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| investment, or disposition of all or any part of the revenues of the Authority or proceeds or benefits of any contract including, without limit, any management agreement or assistance agreement and conveying or otherwise securing any property or property rights;
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(2) The setting aside of loan funding deposits, debt
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| service reserves, capitalized interest accounts, replacement or operating reserves, cost of issuance accounts and sinking funds, and the regulation, investment, and disposition thereof;
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(3) Limitations on the purposes to which or the
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| investments in which the proceeds of sale of any issue of bonds or the Authority's revenues and receipts may be applied or made;
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(4) Limitations on the issue of additional bonds, the
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| terms upon which additional bonds may be issued and secured, the terms upon which additional bonds may rank on a parity with, or be subordinate or superior to, other bonds;
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(5) The refunding, advance refunding or refinancing
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(6) The procedure, if any, by which the terms of any
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| contract with bondholders may be altered or amended and the amount of bonds and holders of which must consent thereto, and the manner in which consent shall be given;
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(7) Defining the acts or omissions which shall
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| constitute a default in the duties of the Authority to holders of bonds and providing the rights or remedies of such holders in the event of a default which may include provisions restricting individual right of action by bondholders;
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(8) Providing for guarantees, pledges of property,
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| letters of credit, or other security, or insurance for the benefit of bondholders; and
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(9) Any other matter relating to the bonds which the
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| Authority determines appropriate.
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(C) No member of the Authority nor any person executing the bonds shall
be liable personally on the bonds or subject to any personal liability by
reason of the issuance of the bonds.
(D) The Authority may enter into agreements with agents, banks,
insurers, or others for the purpose of enhancing the marketability of or
security for its bonds.
(E) (1) A pledge by the Authority of revenues and receipts as security
for an issue of bonds or for the performance of its obligations under any
management agreement or assistance agreement shall be valid and binding
from
the time when the pledge is made.
(2) The revenues and receipts pledged shall immediately be subject
to the lien of the pledge without any physical delivery or further act, and
the lien of any pledge shall be valid and binding against any person having
any claim of any kind in tort, contract or otherwise against the Authority,
irrespective of whether the person has notice.
(3) No resolution, trust agreement, management agreement or assistance
agreement or any financing statement, continuation statement, or other
instrument adopted or entered into by the Authority need be filed or recorded
in any public record other than the records of the Authority in order to
perfect the lien against third persons, regardless of any contrary provision of
law.
(F) The Authority may issue bonds to refund, advance refund or
refinance any of its bonds then outstanding, including the payment of any
redemption premium and any interest accrued or to accrue to the earliest or
any subsequent date of redemption, purchase or maturity of the bonds.
Refunding or advance refunding bonds may be
issued for the public purposes of realizing savings in the effective costs
of debt service, directly or through a debt restructuring, for alleviating
impending or actual default, or for paying principal of, redemption
premium, if any, and interest on bonds as they mature or are subject to
redemption, and may be issued in one or more series in an
amount in excess of that of the bonds to be refunded.
(G) At no time shall the total outstanding bonds and notes of the
Authority issued under this Section 13 exceed (i)
$150,000,000 in connection with facilities owned by the Authority or in connection with other authorized corporate purposes of the Authority and (ii)
$399,000,000 in connection with facilities owned by a governmental owner other
than the Authority; however, the limit on the total outstanding bond and notes set forth in this sentence shall not apply to any refunding or restructuring bonds issued by the Authority on and after the effective date of this amendatory Act of the 102nd General Assembly but prior to December 31, 2024. Bonds
which are being paid or retired by issuance, sale or
delivery of bonds or notes, and bonds or notes for which sufficient funds
have been deposited with the paying agent or trustee to provide for payment of
principal and interest thereon, and any redemption premium, as provided in
the authorizing resolution, shall not be considered outstanding for the
purposes of this paragraph.
(H) The bonds and notes of the Authority shall not be indebtedness of
the City of Chicago, of the State, or of any political subdivision of the
State other than the Authority. The bonds and notes of the Authority are
not general obligations of the State of Illinois or the City of Chicago, or
of any other political subdivision of the State other than the Authority,
and are not secured by a pledge of the full faith and credit of the State
of Illinois or the City of Chicago, or of any other political subdivision of
the State other than the Authority, and the holders of bonds and notes of
the Authority may not require the levy or imposition by the State or the
City of Chicago, or any other political subdivision of the State other than
the Authority, of any taxes or, except as provided in this Act, the
application of revenues or funds of the State of Illinois or the City of
Chicago or any other political subdivision of the State other than the
Authority to the
payment of bonds and notes of the Authority.
(I) In order to provide for the payment of debt service requirements
(including amounts for reserve funds and to pay the costs of credit
enhancements) on bonds issued pursuant to this Act, the Authority may
provide in any trust agreement securing such bonds for a pledge and
assignment of its right to all amounts to be received from the Illinois
Sports Facilities Fund and for a pledge and assignment (subject to the
terms of any management agreement or assistance agreement) of all taxes and
other amounts to be
received under Section 19 of this Act and may further provide by written
notice to the State Treasurer and State Comptroller
(which notice shall constitute a direction to those officers) for a direct
payment of these amounts to the trustee for its bondholders.
(J) The State of Illinois pledges to and agrees with the holders of
the bonds and notes of the Authority issued pursuant to this Act 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 Act that the State will not limit or alter the basis on
which State funds are to be allocated, deposited and 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 pursuant to this Section. Nothing in this amendatory Act of the 102nd General Assembly is intended to limit or alter the rights and powers of the Authority so as to impair the terms of any contract made by the Authority with the holders of the bonds and notes of the Authority issued pursuant to this Act.
(Source: P.A. 102-16, eff. 6-17-21.)
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