[ Search ] [ Legislation ] [ Bill Summary ]
[ Home ] [ Back ] [ Bottom ]
| [ Engrossed ] | [ House Amendment 001 ] |
90_HB3407
70 ILCS 530/7 from Ch. 85, par. 7157
Amends the Upper Illinois River Valley Development
Authority Act. Deletes requirement that the Upper Illinois
River Valley Development Authority obtain the written
approval of the Governor before issuing bonds, notes, or
other evidences of indebtedness.
LRB9009738KDks
LRB9009738KDks
1 AN ACT to amend the Upper Illinois River Valley
2 Development Authority Act by changing Section 7.
3 Be it enacted by the People of the State of Illinois,
4 represented in the General Assembly:
5 Section 5. The Upper Illinois River Valley Development
6 Authority Act is amended by changing Section 7 as follows:
7 (70 ILCS 530/7) (from Ch. 85, par. 7157)
8 Sec. 7. Bonds.
9 (a) The Authority, with the written approval of the
10 Governor, shall have the continuing power to issue bonds,
11 notes, or other evidences of indebtedness in an aggregate
12 amount not to exceed $100,000,000 for the purpose of
13 developing, constructing, acquiring or improving projects,
14 including those established by business entities locating or
15 expanding property within the territorial jurisdiction of the
16 Authority, for entering into venture capital agreements with
17 businesses locating or expanding within the territorial
18 jurisdiction of the Authority, for acquiring and improving
19 any property necessary and useful in connection therewith and
20 for the purposes of the Employee Ownership Assistance Act.
21 For the purpose of evidencing the obligations of the
22 Authority to repay any money borrowed, the Authority may,
23 pursuant to resolution, from time to time issue and dispose
24 of its interest bearing revenue bonds, notes or other
25 evidences of indebtedness and may also from time to time
26 issue and dispose of such bonds, notes or other evidences of
27 indebtedness to refund, at maturity, at a redemption date or
28 in advance of either, any bonds, notes or other evidences of
29 indebtedness pursuant to redemption provisions or at any time
30 before maturity. All such bonds, notes or other evidences of
31 indebtedness shall be payable solely and only from the
-2- LRB9009738KDks
1 revenues or income to be derived from loans made with respect
2 to projects, from the leasing or sale of the projects or from
3 any other funds available to the Authority for such purposes.
4 The bonds, notes or other evidences of indebtedness may bear
5 such date or dates, may mature at such time or times not
6 exceeding 40 years from their respective dates, may bear
7 interest at such rate or rates not exceeding the maximum rate
8 permitted by "An Act to authorize public corporations to
9 issue bonds, other evidences of indebtedness and tax
10 anticipation warrants subject to interest rate limitations
11 set forth therein", approved May 26, 1970, as amended, may be
12 in such form, may carry such registration privileges, may be
13 executed in such manner, may be payable at such place or
14 places, may be made subject to redemption in such manner and
15 upon such terms, with or without premium as is stated on the
16 face thereof, may be authenticated in such manner and may
17 contain such terms and covenants as may be provided by an
18 applicable resolution.
19 (b-1) The holder or holders of any bonds, notes or other
20 evidences of indebtedness issued by the Authority may bring
21 suits at law or proceedings in equity to compel the
22 performance and observance by any corporation or person or by
23 the Authority or any of its agents or employees of any
24 contract or covenant made with the holders of such bonds,
25 notes or other evidences of indebtedness, to compel such
26 corporation, person, the Authority and any of its agents or
27 employees to perform any duties required to be performed for
28 the benefit of the holders of any such bonds, notes or other
29 evidences of indebtedness by the provision of the resolution
30 authorizing their issuance and to enjoin such corporation,
31 person, the Authority and any of its agents or employees from
32 taking any action in conflict with any such contract or
33 covenant.
34 (b-2) If the Authority fails to pay the principal of or
-3- LRB9009738KDks
1 interest on any of the bonds or premium, if any, as the same
2 become due, a civil action to compel payment may be
3 instituted in the appropriate circuit court by the holder or
4 holders of the bonds on which such default of payment exists
5 or by an indenture trustee acting on behalf of such holders.
6 Delivery of a summons and a copy of the complaint to the
7 Chairman of the Board shall constitute sufficient service to
8 give the circuit court jurisdiction of the subject matter of
9 such a suit and jurisdiction over the Authority and its
10 officers named as defendants for the purpose of compelling
11 such payment. Any case, controversy or cause of action
12 concerning the validity of this Act relates to the revenue of
13 the State of Illinois.
14 (c) Notwithstanding the form and tenor of any such
15 bonds, notes or other evidences of indebtedness and in the
16 absence of any express recital on the face thereof that it is
17 non-negotiable, all such bonds, notes and other evidences of
18 indebtedness shall be negotiable instruments. Pending the
19 preparation and execution of any such bonds, notes or other
20 evidences of indebtedness, temporary bonds, notes or
21 evidences of indebtedness may be issued as provided by
22 ordinance.
23 (d) To secure the payment of any or all of such bonds,
24 notes or other evidences of indebtedness, the revenues to be
25 received by the Authority from a lease agreement or loan
26 agreement shall be pledged, and, for the purpose of setting
27 forth the covenants and undertakings of the Authority in
28 connection with the issuance thereof and the issuance of any
29 additional bonds, notes or other evidences of indebtedness
30 payable from such revenues, income or other funds to be
31 derived from projects, the Authority may execute and deliver
32 a mortgage or trust agreement. A remedy for any breach or
33 default of the terms of any such mortgage or trust agreement
34 by the Authority may be by mandamus proceedings in the
-4- LRB9009738KDks
1 appropriate circuit court to compel the performance and
2 compliance therewith, but the trust agreement may prescribe
3 by whom or on whose behalf such action may be instituted.
4 (e) Such bonds or notes shall be secured as provided in
5 the authorizing ordinance which may, notwithstanding any
6 other provision of this Act, include in addition to any other
7 security a specific pledge or assignment of and lien on or
8 security interest in any or all revenues or money of the
9 Authority from whatever source which may by law be used for
10 debt service purposes and a specific pledge or assignment of
11 and lien on or security interest in any funds or accounts
12 established or provided for by ordinance of the Authority
13 authorizing the issuance of such bonds or notes.
14 (f) In the event that the Authority determines that
15 monies of the Authority will not be sufficient for the
16 payment of the principal of and interest on its bonds during
17 the next State fiscal year, the Chairman, as soon as
18 practicable, shall certify to the Governor the amount
19 required by the Authority to enable it to pay such principal
20 of and interest on the bonds. The Governor shall submit the
21 amount so certified to the General Assembly as soon as
22 practicable, but no later than the end of the current State
23 fiscal year. This Section shall not apply to any bonds or
24 notes as to which the Authority shall have determined, in the
25 resolution authorizing the issuance of the bonds or notes,
26 that this Section shall not apply. Whenever the Authority
27 makes such a determination, that fact shall be plainly stated
28 on the face of the bonds or notes and that fact shall also be
29 reported to the Governor.
30 In the event of a withdrawal of moneys from a reserve
31 fund established with respect to any issue or issues of bonds
32 of the Authority to pay principal or interest on those bonds,
33 the Chairman of the Authority, as soon as practicable, shall
34 certify to the Governor the amount required to restore the
-5- LRB9009738KDks
1 reserve fund to the level required in the resolution or
2 indenture securing those bonds. The Governor shall submit the
3 amount so certified to the General Assembly as soon as
4 practicable, but no later than the end of the current State
5 fiscal year.
6 (g) The State of Illinois pledges to and agrees with the
7 holders of the bonds and notes of the Authority issued
8 pursuant to this Section that the State will not limit or
9 alter the rights and powers vested in the Authority by this
10 Act so as to impair the terms of any contract made by the
11 Authority with such holders or in any way impair the rights
12 and remedies of such holders until such bonds and notes,
13 together with interest thereon, with interest on any unpaid
14 installments of interest, and all costs and expenses in
15 connection with any action or proceedings by or on behalf of
16 such holders, are fully met and discharged. In addition, the
17 State pledges to and agrees with the holders of the bonds and
18 notes of the Authority issued pursuant to this Section that
19 the State will not limit or alter the basis on which State
20 funds are to be paid to the Authority as provided in this
21 Act, or the use of such funds, so as to impair the terms of
22 any such contract. The Authority is authorized to include
23 these pledges and agreements of the State in any contract
24 with the holders of bonds or notes issued pursuant to this
25 Section.
26 (h) Not less than 30 days prior to the commitment to
27 issue bonds, notes, or other evidences of indebtedness for
28 the purpose of developing, constructing, acquiring or
29 improving housing or residential projects, as defined in
30 Section 3, the Authority shall provide notice to the
31 Executive Director of the Illinois Housing Development
32 Authority. Within 30 days after notice is provided, the
33 Illinois Housing Development Authority shall either in
34 writing express interest in financing the project or notify
-6- LRB9009738KDks
1 the Authority that it is not interested in providing such
2 financing and the Authority may finance the project or seek
3 alternative financing.
4 (Source: P.A. 86-1024; 86-1313; 87-158; 87-778.)