(310 ILCS 65/9) (from Ch. 67 1/2, par. 1259)
Sec. 9.
Notes and bonds.
(a) Subject to the restrictions on purposes and uses contained in this Act
and the limit on amount contained in Section 22 of the Illinois Housing
Development Act, the Program Administrator may issue Affordable Housing Program
Trust Fund Bonds or Notes pursuant to the Illinois Housing Development Act.
Such bonds and notes shall be secured as provided in the authorizing resolution
of the Program Administrator under the Illinois Housing Development Act which
may, notwithstanding any other provision of this Act, include in addition to
any other security, a specific pledge or assignment of lien on or security
interest in, Trust Fund Moneys received or to be received by the Program
Administrator from the Trust Fund pursuant to Section 8(b) of this Act. Any
such pledge, assignment, lien or security interest shall be for the benefit of
the holders of such bonds or notes and shall be valid, binding from the times
bonds or notes are issued without any physical delivery or further act, and
shall be valid and binding as against and prior to the claims of all other
parties having claims of any kind against the Program Administrator or any
other person irrespective of whether such other parties have notice of such
pledge, assignment, lien or security interest. The
pledge by the Program Administrator of Trust Fund Moneys obtained pursuant to
Section 8(b) of this Act and pledged pursuant to this Section shall be superior
to and have priority over any other use of such moneys by the Program
Administrator under this Act. The resolution authorizing the issuance of any
such bonds or notes may provide, as part of the contract with the holders of
the bonds or notes, for the creation of a separate fund or funds to provide for
the payment of principal, premium, if any, interest and other amounts in
respect of such bonds or notes and for the deposit in such funds of any or all
Trust Fund Moneys certified to the State Treasurer, the Comptroller and the
Funding Agent by the Program Administrator as provided in Section 8(b) of this
Act, as well as any other amounts, all as provided in such resolution, to meet
the debt service requirements on such bonds or notes, including principal,
premium, if any, and interest in respect of such bonds or notes, and any
sinking fund, reserve fund or other fund or account requirements as may be
provided by such resolution, and all expenses incident to or in connection with
such fund or account or the issuance, administration and payment of such bonds
or notes.
(b) The resolution of the Program Administrator authorizing the issuance of
Affordable Housing Program Trust Fund Bonds or Notes may further secure such
bonds or notes by providing for the assignment and direct payment to the
corporate or indenture trustee, if any, for the holders of such bonds and notes
of any or all Trust Fund Moneys transferred or certified or dedicated for
transfer to the Program Administrator pursuant to Section 8(b) of this Act.
Subject to annual appropriation, upon receipt of notice of any such
assignment, the Funding Agent, the Treasurer
and the Comptroller of the State of Illinois shall thereafter, notwithstanding
the provisions of any other Act, including Section 5 of the State Finance Act,
provide for such assigned
amounts to be paid directly to the trustee instead of the Program
Administrator, all in accordance with the terms of the resolution making the
assignment. The resolution shall provide that Trust Fund Moneys paid pursuant
to Section 8(b) and this Section to the trustee which are not
required to be deposited, held or invested in funds and accounts created by the
resolution with respect to Affordable Housing Program Trust Fund Bonds or
Notes, may be paid by the trustee to the Program Administrator and the Program
Administrator may use such amounts or funds as provided in Section 8(c) of this
Act.
(c) In issuing Affordable Housing Program Trust Fund Bonds or Notes
pursuant to the Illinois Housing Development Act, the Program Administrator may
include in the
resolution authorizing such issue a covenant as part of the contract with the
holders of the bonds or notes, that as long as such obligations are
outstanding, it shall make the deposits or transfers of Trust Fund Moneys it
receives or is entitled to receive pursuant to Section 8(b) of this Act. A
certified copy of the resolution authorizing the issuance of any of such bonds
or notes shall be filed at or prior to the issuance of such obligations with
the Governor, the Treasurer and Comptroller of the State of Illinois and with
the Funding Agent.
(d) The State of Illinois pledges to and agrees with the holders of
Affordable Housing Program Trust Fund Bonds or Notes issued pursuant to the
Illinois Housing Development Act that the State will not limit or alter the
rights and powers vested in the Program Administrator by this Act or the
Illinois Housing Development Act so as to impair the terms of any contract made
by the Program Administrator with such holders or in any way impair the rights
and remedies of such holders until the principal and premium, if
any, of 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 such bonds and notes that the State will not limit or alter the basis on
which Trust Fund Moneys are to be collected and paid to the Program
Administrator as provided in this Act, or the use of such funds, and the State
will not take action to repeal or reduce the Real Estate Transfer Tax, as
amended, so as to impair the terms of any such contract. The Program
Administrator is authorized to include these pledges and agreements of the
State in any contract with the holders of Affordable Housing Program Trust Fund
Bonds or Notes.
(e) Illinois Affordable Housing Program Trust Fund Bonds or Notes do not
constitute general obligations of the State and shall not be secured by a
pledge
of the full faith and credit of the State. Each such bond or note shall
describe the limited nature of the State's obligation on the face of the bond
or note.
(Source: P.A. 88-93.)
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