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| [ Introduced ] | [ House Amendment 001 ] |
90_HB3407eng
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.
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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, except as otherwise provided herein, shall have the
11 continuing power to issue bonds, notes, or other evidences of
12 indebtedness in an aggregate amount not to exceed
13 $100,000,000 for the purpose of developing, constructing,
14 acquiring or improving projects, including those established
15 by business entities locating or expanding property within
16 the territorial jurisdiction of the Authority, for entering
17 into venture capital agreements with businesses locating or
18 expanding within the territorial jurisdiction of the
19 Authority, for acquiring and improving any property necessary
20 and useful in connection therewith and for the purposes of
21 the Employee Ownership Assistance Act. Written approval of
22 the Governor is not required for issuances of bonds, notes,
23 or other evidences of indebtedness as to which the Authority
24 has determined that subsection (f) of this Section shall not
25 apply. For the purpose of evidencing the obligations of the
26 Authority to repay any money borrowed, the Authority may,
27 pursuant to resolution, from time to time issue and dispose
28 of its interest bearing revenue bonds, notes or other
29 evidences of indebtedness and may also from time to time
30 issue and dispose of such bonds, notes or other evidences of
31 indebtedness to refund, at maturity, at a redemption date or
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1 in advance of either, any bonds, notes or other evidences of
2 indebtedness pursuant to redemption provisions or at any time
3 before maturity. All such bonds, notes or other evidences of
4 indebtedness shall be payable solely and only from the
5 revenues or income to be derived from loans made with respect
6 to projects, from the leasing or sale of the projects or from
7 any other funds available to the Authority for such purposes.
8 The bonds, notes or other evidences of indebtedness may bear
9 such date or dates, may mature at such time or times not
10 exceeding 40 years from their respective dates, may bear
11 interest at such rate or rates not exceeding the maximum rate
12 permitted by "An Act to authorize public corporations to
13 issue bonds, other evidences of indebtedness and tax
14 anticipation warrants subject to interest rate limitations
15 set forth therein", approved May 26, 1970, as amended, may be
16 in such form, may carry such registration privileges, may be
17 executed in such manner, may be payable at such place or
18 places, may be made subject to redemption in such manner and
19 upon such terms, with or without premium as is stated on the
20 face thereof, may be authenticated in such manner and may
21 contain such terms and covenants as may be provided by an
22 applicable resolution.
23 (b-1) The holder or holders of any bonds, notes or other
24 evidences of indebtedness issued by the Authority may bring
25 suits at law or proceedings in equity to compel the
26 performance and observance by any corporation or person or by
27 the Authority or any of its agents or employees of any
28 contract or covenant made with the holders of such bonds,
29 notes or other evidences of indebtedness, to compel such
30 corporation, person, the Authority and any of its agents or
31 employees to perform any duties required to be performed for
32 the benefit of the holders of any such bonds, notes or other
33 evidences of indebtedness by the provision of the resolution
34 authorizing their issuance and to enjoin such corporation,
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1 person, the Authority and any of its agents or employees from
2 taking any action in conflict with any such contract or
3 covenant.
4 (b-2) If the Authority fails to pay the principal of or
5 interest on any of the bonds or premium, if any, as the same
6 become due, a civil action to compel payment may be
7 instituted in the appropriate circuit court by the holder or
8 holders of the bonds on which such default of payment exists
9 or by an indenture trustee acting on behalf of such holders.
10 Delivery of a summons and a copy of the complaint to the
11 Chairman of the Board shall constitute sufficient service to
12 give the circuit court jurisdiction of the subject matter of
13 such a suit and jurisdiction over the Authority and its
14 officers named as defendants for the purpose of compelling
15 such payment. Any case, controversy or cause of action
16 concerning the validity of this Act relates to the revenue of
17 the State of Illinois.
18 (c) Notwithstanding the form and tenor of any such
19 bonds, notes or other evidences of indebtedness and in the
20 absence of any express recital on the face thereof that it is
21 non-negotiable, all such bonds, notes and other evidences of
22 indebtedness shall be negotiable instruments. Pending the
23 preparation and execution of any such bonds, notes or other
24 evidences of indebtedness, temporary bonds, notes or
25 evidences of indebtedness may be issued as provided by
26 ordinance.
27 (d) To secure the payment of any or all of such bonds,
28 notes or other evidences of indebtedness, the revenues to be
29 received by the Authority from a lease agreement or loan
30 agreement shall be pledged, and, for the purpose of setting
31 forth the covenants and undertakings of the Authority in
32 connection with the issuance thereof and the issuance of any
33 additional bonds, notes or other evidences of indebtedness
34 payable from such revenues, income or other funds to be
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1 derived from projects, the Authority may execute and deliver
2 a mortgage or trust agreement. A remedy for any breach or
3 default of the terms of any such mortgage or trust agreement
4 by the Authority may be by mandamus proceedings in the
5 appropriate circuit court to compel the performance and
6 compliance therewith, but the trust agreement may prescribe
7 by whom or on whose behalf such action may be instituted.
8 (e) Such bonds or notes shall be secured as provided in
9 the authorizing ordinance which may, notwithstanding any
10 other provision of this Act, include in addition to any other
11 security a specific pledge or assignment of and lien on or
12 security interest in any or all revenues or money of the
13 Authority from whatever source which may by law be used for
14 debt service purposes and a specific pledge or assignment of
15 and lien on or security interest in any funds or accounts
16 established or provided for by ordinance of the Authority
17 authorizing the issuance of such bonds or notes.
18 (f) In the event that the Authority determines that
19 monies of the Authority will not be sufficient for the
20 payment of the principal of and interest on its bonds during
21 the next State fiscal year, the Chairman, as soon as
22 practicable, shall certify to the Governor the amount
23 required by the Authority to enable it to pay such principal
24 of and interest on the bonds. The Governor shall submit the
25 amount so certified to the General Assembly as soon as
26 practicable, but no later than the end of the current State
27 fiscal year. This Section shall not apply to any bonds or
28 notes as to which the Authority shall have determined, in the
29 resolution authorizing the issuance of the bonds or notes,
30 that this Section shall not apply. Whenever the Authority
31 makes such a determination, that fact shall be plainly stated
32 on the face of the bonds or notes and that fact shall also be
33 reported to the Governor.
34 In the event of a withdrawal of moneys from a reserve
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1 fund established with respect to any issue or issues of bonds
2 of the Authority to pay principal or interest on those bonds,
3 the Chairman of the Authority, as soon as practicable, shall
4 certify to the Governor the amount required to restore the
5 reserve fund to the level required in the resolution or
6 indenture securing those bonds. The Governor shall submit the
7 amount so certified to the General Assembly as soon as
8 practicable, but no later than the end of the current State
9 fiscal year.
10 (g) The State of Illinois pledges to and agrees with the
11 holders of the bonds and notes of the Authority issued
12 pursuant to this Section that the State will not limit or
13 alter the rights and powers vested in the Authority by this
14 Act so as to impair the terms of any contract made by the
15 Authority with such holders or in any way impair the rights
16 and remedies of such holders until such bonds and notes,
17 together with interest thereon, with interest on any unpaid
18 installments of interest, and all costs and expenses in
19 connection with any action or proceedings by or on behalf of
20 such holders, are fully met and discharged. In addition, the
21 State pledges to and agrees with the holders of the bonds and
22 notes of the Authority issued pursuant to this Section that
23 the State will not limit or alter the basis on which State
24 funds are to be paid to the Authority as provided in this
25 Act, or the use of such funds, so as to impair the terms of
26 any such contract. The Authority is authorized to include
27 these pledges and agreements of the State in any contract
28 with the holders of bonds or notes issued pursuant to this
29 Section.
30 (h) Not less than 30 days prior to the commitment to
31 issue bonds, notes, or other evidences of indebtedness for
32 the purpose of developing, constructing, acquiring or
33 improving housing or residential projects, as defined in
34 Section 3, the Authority shall provide notice to the
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1 Executive Director of the Illinois Housing Development
2 Authority. Within 30 days after notice is provided, the
3 Illinois Housing Development Authority shall either in
4 writing express interest in financing the project or notify
5 the Authority that it is not interested in providing such
6 financing and the Authority may finance the project or seek
7 alternative financing.
8 (Source: P.A. 86-1024; 86-1313; 87-158; 87-778.)