[ Search ] [ Legislation ] [ Bill Summary ]
[ Home ] [ Back ] [ Bottom ]
| [ Introduced ] | [ Engrossed ] | [ Enrolled ] |
| [ House Amendment 002 ] |
90_HB3406ham001
LRB9009735MWksam
1 AMENDMENT TO HOUSE BILL 3406
2 AMENDMENT NO. . Amend House Bill 3406 on page 1, by
3 replacing lines 1 and 2 with the following:
4 "AN ACT in relation to government moneys."; and
5 on page 1, by inserting above line 5 the following:
6 "Section 3. The Rural Bond Bank Act is amended by
7 changing Sections 1-3 and 3-3 as follows:
8 (30 ILCS 360/1-3) (from Ch. 17, par. 7201-3)
9 Sec. 1-3. Definitions. As used in this Act, unless the
10 context otherwise indicates:
11 (a) "Bank" or "Bond Bank" means the Illinois Rural Bond
12 Bank created by Section 2-1.
13 (b) "Bondholder" or "holder" or "noteholder" or any
14 similar term when used with reference to a bond or note of
15 the Bank means any person who is the bearer of any
16 outstanding bond or note of the Bank registered to bearer or
17 not registered, or the registered owner of any outstanding
18 bond of the Bank which at the time is registered other than
19 to bearer.
20 (c) "Bonds" means bonds of the Bank issued under this
21 Act.
-2- LRB9009735MWksam
1 (d) "Fully marketable form" means a local governmental
2 security duly executed and accompanied by an approving legal
3 opinion of a bond counsel of recognized standing in the field
4 of local governmental law whose opinions are generally
5 accepted by purchasers of local governmental bonds. The local
6 governmental security so executed need not be printed or
7 lithographed nor be in more than one denomination.
8 (e) "General fund" means the fund established as
9 provided in Section 3-7.
10 (f) "Governmental unit" means any rural county; or any
11 municipality, excluding any home rule municipality in a
12 county contiguous with a county having a population in excess
13 of 3,000,000 or any home rule municipality in a county with a
14 population of 3,000,000 or greater, or township having a
15 population less than 25,000, school district, community
16 college district, special district, municipal corporation,
17 public corporation, any other local governmental body, any
18 other local public entity as defined in the Local
19 Governmental and Governmental Employees Tort Immunity Act, or
20 other unit designated as a rural unit of local government by
21 the Governor's Executive Order creating the Rural Fair Share
22 Initiative, located in a rural county or having a majority of
23 the territory within its corporate boundaries and at least
24 90% of its population located in a rural county.
25 (g) "Local governmental security" means a bond or note
26 or evidence of debt issued by a governmental unit and payable
27 from taxes or from rates, charges or assessments.
28 (h) "Notes" means any notes of the Bank issued under
29 this Act.
30 (i) "Required debt service reserve" means the amount
31 required to be on deposit in the reserve fund as prescribed
32 by Section 3-6.
33 (j) "Reserve fund" means the Rural Bond Bank Reserve
34 Fund established as provided in Section 3-6.
-3- LRB9009735MWksam
1 (k) "Revenues" means all fees, charges, moneys, profits,
2 payments of principal of or interest on local governmental
3 securities and other investments, gifts, grants,
4 contributions, appropriations and all other income derived or
5 to be derived by the Bank under this Act.
6 (l) "Rural county" means any county other than a county
7 having a population in excess of 3,000,000.
8 (Source: P.A. 89-211, eff. 8-3-95.)
9 (30 ILCS 360/3-3) (from Ch. 17, par. 7203-3)
10 Sec. 3-3. Bonds and notes of the Bank.
11 (a) The Bank may issue its bonds and notes from time to
12 time in any principal amounts that it considers necessary to
13 provide funds for any of the purposes authorized by this Act,
14 including:
15 (1) the making of loans;
16 (2) the payment, funding or refunding of the
17 principal of, or interest or redemption premiums on, any
18 bonds issued by the Bank, whether the bonds or interest
19 to be funded or refunded have or have not become due or
20 subject to redemption before maturity in accordance with
21 their terms;
22 (3) the establishment or increase of reserves to
23 secure or to pay bonds or interest on the bonds; and
24 (4) all other costs or expenses of the Bank
25 incident to and necessary or convenient to carry out its
26 corporate purposes and powers.
27 (b) Except as expressly provided otherwise in this Act
28 or by the Bank, every issue of bonds shall be general
29 obligations of the Bank payable out of any revenues or funds
30 of the Bank, subject only to any agreements with the holders
31 of particular bonds pledging any particular revenues or
32 funds. General obligation bonds may be additionally secured
33 by a pledge of any grants, subsidies, contributions, funds or
-4- LRB9009735MWksam
1 money from the federal government, the State, any
2 governmental unit, any person or a pledge of any income or
3 revenues, funds or money of the Bank from any source.
4 Not less than 30 days prior to the commitment to issue
5 its bonds, or the making of loans or the purchasing of
6 securities for the purpose of financing residential
7 properties or related improvements, the Bank shall provide
8 notice to the Executive Director of the Illinois Housing
9 Development Authority. Within 30 days after notice is
10 provided, the Illinois Housing Development Authority shall
11 either in writing express interest in financing the
12 residential property or related improvements or notify the
13 Bank that it is not interested in providing such financing
14 and the Bank may finance it or seek alternative financing.
15 (c)(1) The Bank may issue its notes for any
16 corporate purpose of the Bank from time to time, in any
17 principal amounts that it considers necessary, and may
18 renew or pay and retire or refund the notes from the
19 proceeds of bonds or of other notes, or from any other
20 funds or money of the Bank available or to be made
21 available for that purpose in accordance with any
22 contract between the Bank and the noteholders, not
23 otherwise pledged. The notes shall be issued in the same
24 manner as bonds. The notes and the resolution or
25 resolutions authorizing the notes may contain any
26 provisions, conditions or limitations which the bonds or
27 a bond resolution of the Bank may contain.
28 (2) Unless provided otherwise in any contract
29 between the Bank and the noteholders, and unless the
30 notes have been otherwise paid, funded or refunded, the
31 proceeds of any bonds of the Bank issued, among other
32 things, to fund such outstanding notes, shall be held,
33 used and applied by the Bank to the payment and
34 retirement of the principal of these notes and the
-5- LRB9009735MWksam
1 interest due and payable on the notes.
2 (3) The Bank may make contracts for the future sale
3 from time to time of the notes under which the purchaser
4 is committed to purchase the notes from time to time on
5 terms and conditions stated in the contracts. The Bank
6 may pay any consideration that it determines proper for
7 these commitments.
8 (d) Whether or not the bonds or notes of the Bank are of
9 such form and character as to be negotiable instruments under
10 Article 8 of the Uniform Commercial Code, the bonds and notes
11 shall be and are made negotiable instruments within the
12 meaning of and for all the purposes of the Uniform Commercial
13 Code, subject only to the provisions of the bonds and notes
14 for registration.
15 (e) Bonds or notes of the Bank shall be authorized by
16 resolution of the Bank and may be issued in one or more
17 series. The resolution or resolutions may provide:
18 (1) the date or dates the bonds or notes will bear;
19 (2) the time or times the bonds or notes will
20 mature;
21 (3) the rate or rates of interest per year the
22 bonds or notes will bear;
23 (4) the denomination or denominations of the bonds
24 or notes;
25 (5) the form of the bonds or notes, either coupon
26 or registered;
27 (6) the conversion or registration privileges
28 carried by the bonds or notes;
29 (7) the rank or priority of the bonds or notes;
30 (8) the manner of execution of the bonds or notes;
31 (9) the sources, medium and place or places, within
32 or outside this State, of payment; and
33 (10) the terms of redemption of the bonds or notes,
34 with or without premium.
-6- LRB9009735MWksam
1 (f) Bonds or notes of the Bank may be sold at public or
2 private sale at the time or times and at the price or prices
3 determined by the Bank.
4 (g) Upon approval of the Governor, bonds or notes of the
5 Bank may be issued under this Act without obtaining the
6 consent of any other department, division, commission, board,
7 bureau or agency of the State, and without any other
8 proceeding or the happening of any other conditions or things
9 than those proceedings, conditions or things which are
10 specifically required by this Act.
11 (h) The Bank may from time to time issue its notes as
12 provided in this Act and pay and retire or fund or refund
13 those notes from proceeds of bonds or of other notes, or from
14 any other funds or money of the Bank available or to be made
15 available for those purposes in accordance with any contract
16 between the Bank and the noteholders. Unless provided
17 otherwise in any contract between the Bank and the holders of
18 notes, and unless the notes have been otherwise paid, funded
19 or refunded, the proceeds of any bonds of the Bank issued,
20 among other things, to fund those outstanding notes, shall be
21 held, used and applied by the Bank to the payments and
22 retirement of the principal of the notes and the interest due
23 and payable on the notes.
24 (i) The total aggregate original principal amount of all
25 bonds and notes issued by the Bank shall not exceed
26 $150,000,000. No more than $25,000,000 in aggregate original
27 principal amount of all bonds and notes issued by the Bank
28 shall be used to purchase local governmental securities
29 issued by governmental units located in a county having a
30 population in excess of 3,000,000 or in a County contiguous
31 with a county having a population in excess of 3,000,000.
32 The bonds and notes issued by the Bank may bear interest
33 at such rate or rates not exceeding the maximum rate
34 permitted by the Bond Authorization Act.
-7- LRB9009735MWksam
1 (j) The State of Illinois pledges to and agrees with the
2 holders of the bonds and notes of the Bank issued pursuant to
3 this Act that the State will not limit or alter the rights
4 and powers vested in the Bank by this Act so as to impair the
5 terms of any contract made by the Bank with those holders or
6 in any way impair the rights and remedies of those holders
7 until those bonds and notes, together with interest thereon,
8 with interest on any unpaid installments of interest, and all
9 costs and expenses in connection with any action or
10 proceedings by or on behalf of such holders, are fully met
11 and discharged. In addition, the State pledges to and agrees
12 with the holders of the bonds and notes of the Bank issued
13 pursuant to this Act that the State will not limit or alter
14 the basis on which State funds are to be paid to the Bank as
15 provided in this Act, or the use of such funds, so as to
16 impair the terms of any such contract. The Bank is authorized
17 to include these pledges and agreements of the State in any
18 contract with the holders of bonds or notes issued pursuant
19 to this Act.
20 (Source: P.A. 89-211, eff. 8-3-95.)"; and
21 on page 1, by inserting below line 19 the following:
22 "Section 99. Effective date. This Act takes effect on
23 July 1, 1998.".