State of Illinois
90th General Assembly
Legislation

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[ Introduced ][ Enrolled ][ House Amendment 001 ]
[ House Amendment 002 ]

90_HB3406eng

      50 ILCS 425/12 new
          Amends the Revenue Anticipation Act.   Provides  that  if
      anticipated  revenues  under the Act are proceeds or receipts
      of a loan or  grant,  or  both,  from  a  federal  agency  in
      connection with waterworks or wastewater facilities, or both,
      and   related   facilities,   improvements,  and  costs,  and
      reasonable  provision  has  been  made  for  the  payment  of
      interest  on  the  notes  when  due  while  the   notes   are
      outstanding; (i) the requirement in the Act for a filing with
      the  County Clerk shall not apply, (ii) the 12-month limit on
      the due date of the notes in the Act shall be 18 months,  and
      (iii)  the 85% limitation on the anticipatory revenues in the
      Act shall be 100%.
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HB3406 Engrossed                               LRB9009735KDpc
 1        AN ACT in relation to government moneys.
 2        Be it enacted by the People of  the  State  of  Illinois,
 3    represented in the General Assembly:
 4        Section  3.   The  Rural  Bond  Bank  Act  is  amended by
 5    changing Sections 1-3 and 3-3 as follows:
 6        (30 ILCS 360/1-3) (from Ch. 17, par. 7201-3)
 7        Sec. 1-3. Definitions. As used in this  Act,  unless  the
 8    context otherwise indicates:
 9        (a)  "Bank"  or "Bond Bank" means the Illinois Rural Bond
10    Bank created by Section 2-1.
11        (b)  "Bondholder" or  "holder"  or  "noteholder"  or  any
12    similar  term  when  used with reference to a bond or note of
13    the  Bank  means  any  person  who  is  the  bearer  of   any
14    outstanding  bond or note of the Bank registered to bearer or
15    not registered, or the registered owner  of  any  outstanding
16    bond  of  the Bank which at the time is registered other than
17    to bearer.
18        (c)  "Bonds" means bonds of the Bank  issued  under  this
19    Act.
20        (d)  "Fully  marketable  form" means a local governmental
21    security duly executed and accompanied by an approving  legal
22    opinion of a bond counsel of recognized standing in the field
23    of  local  governmental  law  whose  opinions  are  generally
24    accepted by purchasers of local governmental bonds. The local
25    governmental  security  so  executed  need  not be printed or
26    lithographed nor be in more than one denomination.
27        (e)  "General  fund"  means  the  fund   established   as
28    provided in Section 3-7.
29        (f)  "Governmental  unit"  means any rural county; or any
30    municipality, excluding  any  home  rule  municipality  in  a
31    county contiguous with a county having a population in excess
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 1    of 3,000,000 or any home rule municipality in a county with a
 2    population  of  3,000,000  or  greater,  or township having a
 3    population  less  than  25,000,  school  district,  community
 4    college district, special  district,  municipal  corporation,
 5    public  corporation,  any  other local governmental body, any
 6    other  local  public  entity  as   defined   in   the   Local
 7    Governmental and Governmental Employees Tort Immunity Act, or
 8    other  unit designated as a rural unit of local government by
 9    the Governor's Executive Order creating the Rural Fair  Share
10    Initiative, located in a rural county or having a majority of
11    the  territory  within  its corporate boundaries and at least
12    90% of its population located in a rural county.
13        (g)  "Local governmental security" means a bond  or  note
14    or evidence of debt issued by a governmental unit and payable
15    from taxes or from rates, charges or assessments.
16        (h)  "Notes"  means  any  notes  of the Bank issued under
17    this Act.
18        (i)  "Required debt service  reserve"  means  the  amount
19    required  to  be on deposit in the reserve fund as prescribed
20    by Section 3-6.
21        (j)  "Reserve fund" means the  Rural  Bond  Bank  Reserve
22    Fund established as provided in Section 3-6.
23        (k)  "Revenues" means all fees, charges, moneys, profits,
24    payments  of  principal  of or interest on local governmental
25    securities   and   other    investments,    gifts,    grants,
26    contributions, appropriations and all other income derived or
27    to be derived by the Bank under this Act.
28        (l)  "Rural  county" means any county other than a county
29    having a population in excess of 3,000,000.
30    (Source: P.A. 89-211, eff. 8-3-95.)
31        (30 ILCS 360/3-3) (from Ch. 17, par. 7203-3)
32        Sec. 3-3. Bonds and notes of the Bank.
33        (a)  The Bank may issue its bonds and notes from time  to
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 1    time  in any principal amounts that it considers necessary to
 2    provide funds for any of the purposes authorized by this Act,
 3    including:
 4             (1)  the making of loans;
 5             (2)  the  payment,  funding  or  refunding  of   the
 6        principal  of, or interest or redemption premiums on, any
 7        bonds issued by the Bank, whether the bonds  or  interest
 8        to  be  funded or refunded have or have not become due or
 9        subject to redemption before maturity in accordance  with
10        their terms;
11             (3)  the  establishment  or  increase of reserves to
12        secure or to pay bonds or interest on the bonds; and
13             (4)  all  other  costs  or  expenses  of  the   Bank
14        incident  to and necessary or convenient to carry out its
15        corporate purposes and powers.
16        (b)  Except as expressly provided otherwise in  this  Act
17    or  by  the  Bank,  every  issue  of  bonds  shall be general
18    obligations of the Bank payable out of any revenues or  funds
19    of  the Bank, subject only to any agreements with the holders
20    of particular  bonds  pledging  any  particular  revenues  or
21    funds.   General obligation bonds may be additionally secured
22    by a pledge of any grants, subsidies, contributions, funds or
23    money  from  the   federal   government,   the   State,   any
24    governmental  unit,  any  person or a pledge of any income or
25    revenues, funds or money of the Bank from any source.
26        Not less than 30 days prior to the  commitment  to  issue
27    its  bonds,  or  the  making  of  loans  or the purchasing of
28    securities  for  the   purpose   of   financing   residential
29    properties  or  related  improvements, the Bank shall provide
30    notice to the Executive  Director  of  the  Illinois  Housing
31    Development  Authority.   Within  30  days  after  notice  is
32    provided,  the  Illinois  Housing Development Authority shall
33    either  in  writing  express  interest   in   financing   the
34    residential  property  or  related improvements or notify the
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 1    Bank that it is not interested in  providing  such  financing
 2    and the Bank may finance it or seek alternative financing.
 3             (c)(1)  The   Bank  may  issue  its  notes  for  any
 4        corporate purpose of the Bank from time to time,  in  any
 5        principal  amounts  that  it considers necessary, and may
 6        renew or pay and retire or  refund  the  notes  from  the
 7        proceeds  of  bonds  or of other notes, or from any other
 8        funds or money of  the  Bank  available  or  to  be  made
 9        available   for  that  purpose  in  accordance  with  any
10        contract  between  the  Bank  and  the  noteholders,  not
11        otherwise pledged. The notes shall be issued in the  same
12        manner  as  bonds.    The  notes  and  the  resolution or
13        resolutions  authorizing  the  notes  may   contain   any
14        provisions,  conditions or limitations which the bonds or
15        a bond resolution of the Bank may contain.
16             (2)  Unless  provided  otherwise  in  any   contract
17        between  the  Bank  and  the  noteholders, and unless the
18        notes have been otherwise paid, funded or  refunded,  the
19        proceeds  of  any  bonds  of the Bank issued, among other
20        things, to fund such outstanding notes,  shall  be  held,
21        used   and  applied  by  the  Bank  to  the  payment  and
22        retirement of  the  principal  of  these  notes  and  the
23        interest due and payable on the notes.
24             (3)  The Bank may make contracts for the future sale
25        from  time to time of the notes under which the purchaser
26        is committed to purchase the notes from time to  time  on
27        terms  and  conditions stated in the contracts.  The Bank
28        may pay any consideration that it determines  proper  for
29        these commitments.
30        (d)  Whether or not the bonds or notes of the Bank are of
31    such form and character as to be negotiable instruments under
32    Article 8 of the Uniform Commercial Code, the bonds and notes
33    shall  be  and  are  made  negotiable  instruments within the
34    meaning of and for all the purposes of the Uniform Commercial
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 1    Code, subject only to the provisions of the bonds  and  notes
 2    for registration.
 3        (e)  Bonds  or  notes  of the Bank shall be authorized by
 4    resolution of the Bank and may  be  issued  in  one  or  more
 5    series.  The resolution or resolutions may provide:
 6             (1)  the date or dates the bonds or notes will bear;
 7             (2)  the  time  or  times  the  bonds  or notes will
 8        mature;
 9             (3)  the rate or rates  of  interest  per  year  the
10        bonds or notes will bear;
11             (4)  the  denomination or denominations of the bonds
12        or notes;
13             (5)  the form of the bonds or notes,  either  coupon
14        or registered;
15             (6)  the   conversion   or  registration  privileges
16        carried by the bonds or notes;
17             (7)  the rank or priority of the bonds or notes;
18             (8)  the manner of execution of the bonds or notes;
19             (9)  the sources, medium and place or places, within
20        or outside this State, of payment; and
21             (10)  the terms of redemption of the bonds or notes,
22        with or without premium.
23        (f)  Bonds or notes of the Bank may be sold at public  or
24    private  sale at the time or times and at the price or prices
25    determined by the Bank.
26        (g)  Upon approval of the Governor, except  as  otherwise
27    provided  herein,  bonds  or  notes of the Bank may be issued
28    under this Act without obtaining the  consent  of  any  other
29    department,  division, commission, board, bureau or agency of
30    the State, and without any other proceeding or the  happening
31    of  any  other  conditions  or things than those proceedings,
32    conditions or things which are specifically required by  this
33    Act.  Approval  of the Governor is not required for issuances
34    of bonds or notes as to which the Bank  has  determined  that
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 1    subsection (c) of Section 2-6 shall not apply.
 2        (h)  The  Bank  may  from time to time issue its notes as
 3    provided in this Act and pay and retire  or  fund  or  refund
 4    those notes from proceeds of bonds or of other notes, or from
 5    any  other funds or money of the Bank available or to be made
 6    available for those purposes in accordance with any  contract
 7    between  the  Bank  and  the  noteholders.   Unless  provided
 8    otherwise in any contract between the Bank and the holders of
 9    notes,  and unless the notes have been otherwise paid, funded
10    or refunded, the proceeds of any bonds of  the  Bank  issued,
11    among other things, to fund those outstanding notes, shall be
12    held,  used  and  applied  by  the  Bank  to the payments and
13    retirement of the principal of the notes and the interest due
14    and payable on the notes.
15        (i)  The total aggregate original principal amount of all
16    bonds  and  notes  issued  by  the  Bank  shall  not   exceed
17    $200,000,000   $150,000,000.    No   more   than  $50,000,000
18    $25,000,000 in aggregate original  principal  amount  of  all
19    bonds  and notes issued by the Bank shall be used to purchase
20    local governmental securities issued  by  governmental  units
21    located  in  a  county  having  a  population  in  excess  of
22    3,000,000  or  in  a County contiguous with a county having a
23    population in excess of 3,000,000.
24        The bonds and notes issued by the Bank may bear  interest
25    at  such  rate  or  rates  not  exceeding  the  maximum  rate
26    permitted by the Bond Authorization Act.
27        (j)  The State of Illinois pledges to and agrees with the
28    holders of the bonds and notes of the Bank issued pursuant to
29    this  Act  that  the State will not limit or alter the rights
30    and powers vested in the Bank by this Act so as to impair the
31    terms of any contract made by the Bank with those holders  or
32    in  any  way  impair the rights and remedies of those holders
33    until those bonds and notes, together with interest  thereon,
34    with interest on any unpaid installments of interest, and all
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 1    costs   and   expenses  in  connection  with  any  action  or
 2    proceedings by or on behalf of such holders,  are  fully  met
 3    and  discharged. In addition, the State pledges to and agrees
 4    with the holders of the bonds and notes of  the  Bank  issued
 5    pursuant  to  this Act that the State will not limit or alter
 6    the basis on which State funds are to be paid to the Bank  as
 7    provided  in  this  Act,  or  the use of such funds, so as to
 8    impair the terms of any such contract. The Bank is authorized
 9    to include these pledges and agreements of the State  in  any
10    contract  with  the holders of bonds or notes issued pursuant
11    to this Act.
12    (Source: P.A. 89-211, eff. 8-3-95.)
13        Section 5.  The Revenue Anticipation Act  is  amended  by
14    adding Section 12 as follows:
15        (50 ILCS 425/12 new)
16        Sec.  12.  Anticipation  of certain federal revenues.  In
17    the  event  the  anticipated  revenues  under  this  Act  are
18    proceeds or receipts of a loan or  grant,  or  both,  from  a
19    federal  agency  in  connection with waterworks or wastewater
20    facilities, or both, and  related  facilities,  improvements,
21    and  costs,  and  reasonable  provision has been made for the
22    payment of interest on the notes when due while the notes are
23    outstanding; (i) the requirement in Section 2 of this Act for
24    a filing with the County Clerk shall not apply, (ii)  the  12
25    month  limit  on the due date of the notes in Section 3 shall
26    be  18  months,  and  (iii)  the  85%   limitation   on   the
27    anticipatory revenues in Section 7 of this Act shall be 100%.
28        Section  99.  Effective  date.   This Act takes effect on
29    July 1, 1998.

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