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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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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.