Illinois General Assembly - Illinois Compiled Statutes

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70 ILCS 525/2007

(70 ILCS 525/2007) (from Ch. 85, par. 7507)

Sec. 2007. Bonds.

(a) The Authority, with the written approval of the Governor,
shall have the continuing power to issue bonds, notes, or other evidences
of indebtedness in an aggregate amount outstanding not to exceed $250,000,000 for the
purpose of developing, constructing, acquiring or improving projects,
including 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 and for
the purposes of the Employee Ownership Assistance Act.  For the purpose of
evidencing the obligations of the Authority to repay any money borrowed,
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 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, may bear interest at such rate or rates not exceeding the maximum
rate permitted by the Bond Authorization Act, 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 evidences of
indebtedness issued by the Authority may bring suits at law or proceedings
in equity to compel the performance and observance by any corporation or
person or by the Authority or any of its agents or employees of any
contract or covenant made with the holders of such bonds, notes or other
evidences of indebtedness, to compel such corporation, person, the
Authority and any of its agents or employees to perform any duties required
to be performed for the benefit of the holders of any such bonds, notes or
other evidences of indebtedness by the provision of the resolution
authorizing their issuance and to enjoin such corporation, person, the
Authority and any of its agents or employees from taking any action in
conflict with any such contract or covenant.

(b-2) If the Authority fails to pay the principal of or interest on any
of the bonds or premium, if any, as the same become due, a civil action to
compel payment may be instituted in the appropriate circuit court by the
holder or holders of the bonds on which such default of payment exists or
by an indenture trustee acting on behalf of such holders.  Delivery of a
summons and a copy of the complaint to the Chairman of the Board shall
constitute sufficient service to give the circuit court jurisdiction of the
subject matter of such a suit and jurisdiction over the Authority and its
officers named as defendants for the purpose of compelling such payment.
Any case, controversy or cause of action concerning the validity of this
Article relates to the revenue of the State of Illinois.

(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 Article,
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.

(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. This subsection (f) shall not apply to any bond issued on or after the effective date of this amendatory Act of the 98th General Assembly.

(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 Article 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 pursuant to this Section.

(h) (Blank).

(Source: P.A. 98-750, eff. 1-1-15.)