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90_SB0801sam002
LRB9002421JSgcam03
1 AMENDMENT TO SENATE BILL 801
2 AMENDMENT NO. . Amend Senate Bill 801, AS AMENDED,
3 with reference to the page and line numbers of Senate
4 Amendment No. 1, on page 9, line 20, by replacing "126.5(D)"
5 with "126.5(D);"; and
6 on page 12 by replacing lines 16 through 24 with the
7 following:
8 "LL. "Hedging transaction" means:
9 (1) A derivative transaction that is entered into and
10 maintained to reduce:
11 (a) the risk of a change in the value, yield,
12 price, cash flow, or quantity of assets or liabilities
13 that the insurer has acquired or incurred or anticipates
14 acquiring or incurring; or
15 (b) the currency exchange rate risk or the degree
16 of exposure as to assets or liabilities that the insurer
17 has acquired or incurred or anticipates acquiring or
18 incurring; or
19 (2) Such other derivative transactions as may be
20 specified to constitute hedging transactions in rules adopted
21 pursuant to Section 126.8."; and
22 on page 12, line 26, by replacing "instruments" with
23 "instrument;"; and
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1 on page 26, line 7, by replacing "Article" with "amendatory
2 Act of 1997"; and
3 on page 26, line 8, by replacing "under Article VIII" with
4 "immediately prior to the effective date of this amendatory
5 Act of 1997"; and
6 on page 26, line 11, by replacing "Article" with "Article
7 immediately prior to the effective date of this amendatory
8 Act of 1997"; and
9 on page 26, line 13, by replacing "Article" with "amendatory
10 Act of 1997"; and
11 on page 29, line 29, by replacing "Article" with "amendatory
12 Act of 1997"; and
13 on page 29, line 32, by replacing "Article" with "amendatory
14 Act of 1997"; and
15 on page 30, line 2, by replacing "Article" with "amendatory
16 Act of 1997"; and
17 on page 32 by replacing line 25 with the following:
18 "NAIC. The Director shall promulgate rules for determining
19 and calculating values to be used in financial statements
20 submitted to the Department for investments not subject to
21 published National Association of Insurance Commissioners
22 valuation standards."; and
23 on page 34, line 22, by deleting "medium and"; and
24 on page 35, line 6, by changing "asset- backed" to
25 "asset-backed"; and
26 on page 39, line 9, by changing "subsection" to "subsection
27 A(2)"; and
28 on page 42, line 16, by changing "(7) Transactions" to
29 "F. Except for the formation of the investment pool,
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1 transactions"; and
2 on page 42, line 30, by replacing "assets. Except" with
3 "assets or, except"; and
4 on page 44, line 30, by replacing "Article VIII 1/2." with
5 "Section 131.20a(1)(a)(iv)."; and
6 on page 52, line 3, by replacing "to agreement" with "to the
7 agreement"; and
8 on page 56 by replacing lines 28 through 31 with the
9 following:
10 "(2) An insurer may use derivative instruments for
11 replication transactions only after the Director promulgates
12 reasonable rules that set forth methods of disclosure,
13 reserving for risk-based capital, and determining the asset
14 valuation reserve"; and
15 on page 57, line 4, by changing "An" to "With respect to all
16 hedging transactions, an"; and
17 on page 57, line 32, by deleting "Section 126.18,"; and
18 on page 58, line 15, by replacing "sold;" with "sold; or";
19 and
20 on page 58, line 20, by replacing "outstanding; or" with
21 "outstanding."; and
22 on page 59 by replacing lines 2, 3, and 4 with the following:
23 "Section or for other risk management purposes."; and
24 on page 61, line 14, by replacing "100%" with "the lesser of
25 $500,000,000 or 100%"; and
26 on page 65, line 19, by changing "126.4" to "126.24"; and
27 on page 66, line 16, by changing "asset- backed" to
28 "asset-backed"; and
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1 on page 69 by replacing line 15 with the following:
2 "would exceed 5% of its admitted assets. The Director may,
3 by rule, identify certain special rated credit instruments
4 that are exempt from the limitation imposed by this
5 subsection."; and
6 on page 70, line 16, by changing "subsection" to "subsection
7 A(2)"; and
8 on page 73, line 23, by replacing "(7)" with "F."; and
9 on page 73, line 32, by changing "laws" to "laws of"; and
10 on page 82, line 26, by replacing "agreement" with "the
11 agreement"; and
12 on page 85, line 12, by replacing "admitted" with "admitted
13 assets"; and
14 on page 87 by replacing lines 19 through 22 with the
15 following:
16 "(2) An insurer may use derivative instruments for
17 replication transactions only after the Director promulgates
18 reasonable rules that set forth methods of disclosure,
19 reserving for risk-based capital, and determining the asset
20 valuation reserve"; and
21 on page 87, line 28, by replacing "An" with "With respect to
22 all hedging transactions, an"; and
23 on page 88, line 34, by replacing "sold;"' with "sold; or";
24 and
25 on page 89, line 6, by replacing "sold; or" with "sold."; and
26 on page 89 by replacing lines 20, 21, and 22 with the
27 following:
28 "Section or for other risk management purposes."; and
29 on page 89, line 27, by deleting "this"; and
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1 on page 90 by inserting immediately below line 14 the
2 following:
3 "Section 15. The Illinois Insurance Code is amended by
4 changing Sections 3.1, 26, 53, 74, 111, 131.3, 136, and
5 245.21 as follows:
6 (215 ILCS 5/3.1) (from Ch. 73, par. 615.1)
7 Sec. 3.1. Definitions of admitted assets. "Admitted
8 Assets" includes the investments authorized or permitted by
9 this Code, the credit for reinsurance allowed by this Code,
10 and in addition thereto, only the following:
11 (a) Petty cash and other cash funds in the company's
12 principal or any official branch office and under the control
13 of the company.
14 (b) Immediately withdrawable funds on deposit in demand
15 accounts, in a bank or trust company as defined in Section
16 126.2MMM(1) 124.7c or like funds actually in the principal or
17 any official branch office at statement date, and, in transit
18 to such bank or trust company with authentic deposit credit
19 given prior to the close of business on the fifth bank
20 working day following the statement date.
21 (c) The amount fairly estimated as recoverable on cash
22 deposited in a closed bank or trust company, if qualifying
23 under the provisions of this Section prior to the suspension
24 of such bank or trust company.
25 (d) Bills and accounts receivable collateralized by
26 securities of the kind in which the company is authorized to
27 invest.
28 (e) Bills receivable not past due covering uncollected
29 premiums taken by a company in the transaction of business
30 described in Class 3 of Section 4, in an amount not to exceed
31 the unearned premium reserve liability calculated on each
32 respective policy.
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1 (f) For in force insurance coverages written by fire,
2 casualty, and reciprocal companies, excluding group accident
3 and health business, premium deposits, gross premiums, and
4 agents' balances (net of related commissions) not more than
5 90 days past due; installments booked but deferred and not
6 yet due (net of related commissions), provided that all
7 amounts having become due from the insured are not more than
8 90 days past due; and audit and retrospective premium to the
9 extent permitted to be admitted pursuant to the Annual
10 Statement Instructions and the Accounting Practices and
11 Procedures Manual for Property and Casualty Insurers
12 published by the National Association of Insurance
13 Commissioners, unless the Director prescribes otherwise.
14 However, audit and retrospective premiums that represent
15 anticipated additional premiums on policies for which the
16 policy period has not yet expired may not be admitted.
17 (g) Net amount of uncollected premiums on group life and
18 group accident and health policies, not more than 90 days
19 past due.
20 (h) Due and uncollected accident and health premiums on
21 in force individual policies, on insurance written by Class
22 1, Section 4 companies, less commissions due thereon to
23 agents; not exceeding in the aggregate the premium reserve
24 liability computed on such business.
25 (i) Premium notes, policy loans and liens, and the net
26 amount of uncollected and deferred premiums on individual
27 life insurance policies, not in excess of the liability for
28 the legal reserves specified in Section 223 or 281 of this
29 Code on such individual life insurance policies.
30 (j) Premium and assessment notes, certificate loans and
31 liens, and the gross amount less loading, of premiums or
32 assessments actually collected by subordinate lodges not yet
33 turned over to the Supreme Lodge on individual life insurance
34 certificates not in excess of the liability for the legal
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1 reserves specified in Section 297.1 or 305.1 on such
2 individual life insurance certificates.
3 (k) Mortuary assessments due and unpaid on last call
4 made within 60 days, on insurance in force and for which
5 notices have been issued, not in excess of the liability for
6 the unpaid claims which are to be paid by the proceeds.
7 (l) Amounts fairly estimated as recoverable from
8 advances made on contracts under surety bonds.
9 (m) Amounts receivable from insurance companies
10 authorized to do business in this State and from associations
11 or bureaus owned or controlled by 5 or more separate and
12 nonaffiliated, by ownership or management, insurance
13 companies of which a majority thereof are authorized to
14 transact business in this State. The amount of those
15 receivables allowed as admitted assets may not exceed the
16 lesser of 5% of the company's total admitted assets or 10% of
17 the company's surplus as regards policyholders. Amounts
18 receivable from insurance companies or associations or
19 bureaus not meeting the preceding standards of this Section
20 if collateralized in the manner prescribed by Section 173.1.
21 (n) Tax refunds due from the United States or any state,
22 the Government of Canada or any province, or the Commonwealth
23 of Puerto Rico or amounts due to a subsidiary from a parent
24 under a tax allocation agreement that conforms with rules
25 adopted by the Director.
26 (o) The interest accrued on mortgage loans conforming to
27 this Code, not exceeding an aggregate amount on an individual
28 loan of one year's total due and accrued interest.
29 (p) The rents accrued and owing to the company on real
30 and personal property, directly or beneficially owned, not
31 exceeding on each individual property the amount of one
32 year's total due and accrued rent.
33 (q) Interest or rents accrued on conditional sales
34 agreements, security interests, chattel mortgages and real or
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1 personal property under lease to other corporations, all
2 conforming to this Code, and not exceeding on any individual
3 investment, the amount of one year's total due and accrued
4 interest or rent.
5 (r) The fixed and required interest due and accrued on
6 bonds and other like evidences of indebtedness, conforming to
7 this Code, and not in default.
8 (s) Dividends receivable on shares of stock conforming
9 to this Code; provided that the market price taken for
10 valuation purposes does not include the value of the
11 dividend.
12 (t) The interest or dividends due and payable, but not
13 credited, on deposits in banks and trust companies or on
14 accounts with savings and loan associations.
15 (u) Interest accrued on secured loans conforming to this
16 Code, not exceeding the amount of one year's interest on any
17 loan.
18 (v) Interest accrued on tax anticipation warrants.
19 (w) The value of electronic computer or data processing
20 machines or systems purchased for use in connection with the
21 business of the company, if such machines or systems whenever
22 purchased have an aggregate original cost to the company of
23 at least $75,000. The amortized value of such machines or
24 systems at the end of any calendar year shall not be greater
25 than the original purchase price less 10% for each completed
26 year, or pro rata portion for any fraction thereof, after
27 such purchase, with the total admissible value at any
28 statement date to be limited to an amount not exceeding 2% of
29 the company's admitted assets at such statement date.
30 (x) Amounts, other than premium, receivable from
31 affiliates, not outstanding for more than 3 months, and
32 arising under, management contracts or service agreements
33 which meet the requirements of Section 141.1 of the Illinois
34 Insurance Code to the extent that the affiliate has liquid
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1 assets sufficient to pay the balance. The amount of those
2 receivables included in admitted assets may not exceed the
3 lesser of 5% of the company's admitted assets or 10% of the
4 company's surplus as regards policyholders. For purposes of
5 this subsection, "affiliate" has the meaning given that term
6 in Article VIII 1/2 of the Illinois Insurance Code.
7 (y) Property and liability guaranty fund or guaranty
8 association assessments paid in any state, but only to the
9 extent it is probable the company will be able to offset
10 those assessments against present or future premium taxes or
11 income taxes payable in the state in which the assessments
12 were paid. The amount of those assessments allowed as
13 admitted assets may not exceed the lesser of 5% of the
14 company's total admitted assets or 10% of the company's
15 surplus as regards policyholders. The Director may disallow
16 any such assessment as an admitted asset to the extent he
17 determines a company is unlikely to realize a present or
18 future premium tax or income tax offset as a result of the
19 assessment.
20 (Source: P.A. 88-364; 88-535; 88-627, eff. 9-9-94; 89-97,
21 eff. 7-7-95; 89-669, eff. 1-1-97.)
22 (215 ILCS 5/26) (from Ch. 73, par. 638)
23 Sec. 26. Deposit. Every company subject to the provisions
24 of this Article shall make and maintain with the Director for
25 the protection of all creditors, policyholders and policy
26 obligations of the company, a deposit of securities which are
27 authorized investments under Section 126.11A(1), 126.11A(2),
28 126.24A(1), or 126.24A(2) Sections 125.1a and 125.2a having a
29 fair market value equal to the minimum capital and surplus
30 required to be maintained under Section 13.
31 (Source: P.A. 88-364.)
32 (215 ILCS 5/53) (from Ch. 73, par. 665)
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1 Sec. 53. Deposit. Each company subject to the provisions
2 of this Article shall make and maintain with the Director for
3 the protection of all creditors, policyholders and policy
4 obligations of the company, a deposit of securities which are
5 authorized investments under Section 126.11A(1), 126.11A(2),
6 126.24A(1), or 126.24A(2) Sections 125.1a and 125.2a having a
7 fair market value equal to the minimum surplus required to be
8 maintained under Section 43.
9 (Source: P.A. 88-364.)
10 (215 ILCS 5/74) (from Ch. 73, par. 686)
11 Sec. 74. Deposit.
12 (1) Each domestic reciprocal subject to the provisions
13 of this Article shall make and maintain with the Director
14 for the protection of all creditors, policyholders and policy
15 obligations of such reciprocal, a deposit of securities which
16 are authorized investments under Section 126.11A(1),
17 126.11A(2), 126.24A(1), or 126.24A(2) Sections 125.1a and
18 125.2a having a fair market value equal to the surplus
19 required to be maintained under Section 66.
20 (Source: P.A. 88-364.)
21 (215 ILCS 5/111) (from Ch. 73, par. 723)
22 Sec. 111. Conditions of issuance of certificate of
23 authority.
24 (1) Before a certificate of authority to transact
25 business in this State is issued to a foreign or alien
26 company, such company shall satisfy the Director that:
27 (a) the company is duly organized under the laws of
28 the state or country under whose laws it professes to be
29 organized and authorized to do the business it is
30 transacting or proposes to transact;
31 (b) its name is not the same as, or deceptively
32 similar to, the name of any domestic company, or of any
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1 foreign or alien company authorized to transact business
2 in this State;
3 (c) if a company transacting business of the kind
4 or kinds enumerated in Class 1 of Section 4, it is not
5 engaging in practices in any state which if engaged in
6 this State, would constitute a violation of Section 237;
7 and it is not transacting any kinds of business other
8 than those enumerated in Class 1 of Section 4;
9 (d) if a stock company, it has a paid up capital
10 and surplus at least equal to the capital and original
11 surplus required by this Code for a domestic company
12 doing the same kind or kinds of business or, if a mutual
13 company or reciprocal, it has a surplus and provision for
14 contingent liability of policyholders, at least equal to
15 the original surplus and provision for contingent
16 liability of policyholders required for a similar
17 domestic company doing the same kind or kinds of
18 business, or, if a fraternal benefit society, it meets
19 the requirements prescribed in this Code for the
20 organization of a domestic company or society, or if a
21 Lloyds it meets the requirements of Article V;
22 (e) its funds are invested in accordance with the
23 laws of its domicile; and
24 (f) in the case of a stock company its minimum
25 capital and surplus and required reserves, or in the case
26 of a mutual company or a reciprocal proposing to issue
27 policies without contingent liability, its minimum
28 surplus and required reserves, or in the case of any
29 other company, all its funds, are invested in securities
30 or property which afford a degree of financial security
31 equal to that required for similar domestic companies,
32 provided that this clause shall not be construed as
33 requiring the application of limitations relating either
34 to the kind or amount of securities prescribed by this
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1 Code for the investments of domestic companies.
2 (2) In determining whether an alien company complies
3 with the provisions of subsection (1) of this section the
4 Director shall consider only business transacted in the
5 United States, only the assets described in Section 60j and
6 only liabilities in connection with its United States
7 business.
8 (3) Before a certificate of authority is issued to a
9 foreign or alien company, other than a Lloyds, it shall
10 deposit with the Director securities which are authorized
11 investments for similar domestic companies under Section
12 126.11A(1), 126.11A(2), 126.24A(1), or 126.24A(2) Sections
13 125.1a and 125.2a of the amount, if any, required of a
14 domestic company similarly organized and doing the same kind
15 or kinds of business; or in lieu of such deposit such foreign
16 or alien company shall satisfy the Director that it has on
17 deposit with an official of a state of the United States or a
18 depositary designated or authorized for such purpose by such
19 official, authorized by the law of such state to accept such
20 deposit, securities of at least a like amount, for the
21 benefit and security of all creditors, policyholders and
22 policy obligations of such company in the United States.
23 (4) Before issuing a certificate of authority to a
24 foreign or alien company, the Director may cause an
25 examination to be made of the condition and affairs of such
26 company.
27 (Source: P.A. 88-364.)
28 (215 ILCS 5/131.3) (from Ch. 73, par. 743.3)
29 Sec. 131.3. (1) Investments in common stock, preferred
30 stock, debt obligations or other securities of subsidiaries
31 made under Section 131.2 of this Article are subject to
32 Sections 126.3, 126.4, 126.5, 126.6, 126.7, 124.1, 124.2,
33 124.3, 124.6, 125a and 133 of this Code but are not subject
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1 to any other of the otherwise applicable restrictions or
2 prohibitions contained in this Code applicable to such
3 investments of a domestic company subject to this Code.
4 (2) If a company ceases to control a subsidiary, it must
5 dispose of any investment therein made under this section
6 within 3 years from the time of the cessation of control or
7 within such further time as the Director may prescribe,
8 unless at any time after the investment is made, the
9 investment meets the requirements for investment under any
10 other section of this Code, and the company has notified the
11 Director thereof.
12 (Source: P.A. 84-805.)
13 (215 ILCS 5/136) (from Ch. 73, par. 748)
14 Sec. 136. Annual statement.
15 (1) Every company authorized to do business in this
16 State or accredited by this State shall file with the
17 Director by March 1st in each year 2 copies of its financial
18 statement for the year ending December 31st immediately
19 preceding on forms prescribed by the Director, which shall
20 conform substantially to the form of statement adopted by the
21 National Association of Insurance Commissioners. Unless the
22 Director provides otherwise, the annual statement is to be
23 prepared in accordance with the annual statement instructions
24 and the Accounting Practices and Procedures Manual adopted by
25 the National Association of Insurance Commissioners. The
26 Director shall have power to make such modifications and
27 additions in this form as he may deem desirable or necessary
28 to ascertain the condition and affairs of the company. The
29 Director shall have authority to extend the time for filing
30 any statement by any company for reasons which he considers
31 good and sufficient. In every statement the admitted assets
32 shall be shown at the actual values as of the last day of the
33 preceding year, in accordance with Section 126.7 124.6. The
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1 statement shall be verified by oaths of the president and
2 secretary of the company or, in their absence, by 2 other
3 principal officers. In addition, any company may be required
4 by the Director, when he considers that action to be
5 necessary and appropriate for the protection of
6 policyholders, creditors, shareholders, or claimants, to
7 file, within 60 days after mailing to the company a notice
8 that such is required, a supplemental summary statement as of
9 the last day of any calendar month occurring during the 100
10 days next preceding the mailing of such notice designated by
11 him on forms prescribed and furnished by the Director. The
12 Director may require supplemental summary statements to be
13 certified by an independent actuary deemed competent by the
14 Director or by an independent certified public accountant.
15 (2) The statement of an alien company shall embrace only
16 its condition and transactions in the United States and shall
17 be verified by the oaths of its resident manager or principal
18 representative in the United States, except that in the case
19 of any life company organized under the laws of Canada or any
20 province thereof, the statement may be verified by the oaths
21 of any of its principal officers designated for that purpose
22 by its board of directors.
23 (3) For the information of the public generally the
24 Director shall cause an abstract of the information contained
25 in the annual statement to be made available to the public as
26 soon as practicable after filing with the Department, by
27 printing those abstracts in pamphlet tabular form for free
28 general distribution by the Department, or by such other
29 publication in the city of Springfield or in the city of
30 Chicago as may be reasonably necessary more fully to inform
31 the public of the financial condition of companies
32 transacting business in this State.
33 (4) Each domestic, foreign, and alien insurer authorized
34 to do business in this State or accredited by this State
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1 shall participate in the National Association of Insurance
2 Commissioners' Insurance Regulatory Information System,
3 including the payment of all fees and charges of the system.
4 Each company shall, on or before March 1 of each year, file
5 with the National Association of Insurance Commissioners a
6 copy of its annual financial statement along with any
7 additional filings prescribed by the Director for the
8 preceding year. The statement filed with the National
9 Association of Insurance Commissioners shall be in the same
10 format and scope as that required by this Code and shall
11 include a signed jurat page and actuarial certification. Any
12 amendments and addendums to the annual statement shall also
13 be filed with the National Association of Insurance
14 Commissioners. Each company shall also file with the National
15 Association of Insurance Commissioners annual and quarterly
16 financial statement information in computer readable format
17 as required by the Insurance Regulatory Information System.
18 Failure of a company to file financial statement information
19 in computer readable format shall subject the company to the
20 provisions of Section 139.
21 (5) All financial analysis ratios and examination
22 synopsis concerning insurance companies that are submitted to
23 the Director by the National Association of Insurance
24 Commissioners' Insurance Regulatory Information System are
25 confidential and may not be disclosed by the Director.
26 (Source: P.A. 87-1090; 88-364.)
27 (215 ILCS 5/245.21) (from Ch. 73, par. 857.21)
28 Sec. 245.21. A domestic life company, including for the
29 purposes of this Article all domestic fraternal beneficiary
30 associations, societies or companies which operate on a legal
31 reserve basis, may establish one or more separate accounts,
32 and may allocate thereto amounts (including without
33 limitation proceeds applied under optional modes of
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1 settlement or under dividend options) to provide for life
2 insurance or annuities (and benefits incidental thereto),
3 payable in fixed or variable amounts or both, subject to the
4 following:
5 (1) The income, gains and losses, realized or
6 unrealized, from assets allocated to a separate account must
7 be credited to or charged against the account, without regard
8 to other income, gains or losses of the company.
9 (2) Except as may be provided with respect to reserves
10 for guaranteed benefits and funds referred to in paragraph
11 (3) of this Section (i) amounts allocated to any separate
12 account and accumulations thereon may be invested and
13 reinvested without regard to any requirements or limitations
14 of Part 2 or Part 3 of Article VIII Sections 125a through
15 125.24a of this Code and (ii) the investments in any separate
16 account or accounts may not be taken into account in applying
17 the investment limitations otherwise applicable to the
18 investments of the company.
19 (3) Except with the approval of the Director and under
20 the conditions as to investments and other matters as he may
21 prescribe, that must recognize the guaranteed nature of the
22 benefits provided, reserves for (i) benefits guaranteed as to
23 dollar amount and duration and (ii) funds guaranteed as to
24 principal amount or stated rate of interest may not be
25 maintained in a separate account.
26 (4) Unless otherwise approved by the Director, assets
27 allocated to a separate account must be valued at their
28 market value on the date of valuation, or if there is no
29 readily available market, then as provided in the contract or
30 the rules or other written agreement applicable to the
31 separate account. Unless otherwise approved by the Director,
32 the portion, if any, of the assets of the separate account
33 equal to the company's reserve liability with regard to the
34 guaranteed benefits and funds referred to in paragraph (3) of
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1 this Section must be valued in accordance with the rules
2 otherwise applicable to the company's assets.
3 (5) Amounts allocated to a separate account under this
4 Article are owned by the company, and the company may not be,
5 nor hold itself out to be, a trustee with respect to those
6 amounts. The assets of any separate account equal to the
7 reserves and other contract liabilities with respect to the
8 account may not be charged with liabilities arising out of
9 any other business the company may conduct.
10 (6) No sale, exchange or other transfer of assets may be
11 made by a company between any of its separate accounts or
12 between any other investment account and one or more of its
13 separate accounts unless, in case of a transfer into a
14 separate account, the transfer is made solely to establish
15 the account or to support the operation of the contracts with
16 respect to the separate account to which the transfer is
17 made, and unless the transfer, whether into or from a
18 separate account, is made (i) by a transfer of cash, or (ii)
19 by a transfer of securities having a readily determinable
20 market value, if the transfer of securities is approved by
21 the Director. The Director may approve other transfers among
22 those accounts if, in his opinion, the transfers would not be
23 inequitable.
24 (7) To the extent a company considers it necessary to
25 comply with any applicable federal or state laws, the
26 company, with respect to any separate account, including
27 without limitation any separate account which is a management
28 investment company or a unit investment trust, may provide
29 for persons having an interest therein appropriate voting and
30 other rights and special procedures for the conduct of the
31 business of the account, including without limitation special
32 rights and procedures relating to investment policy,
33 investment advisory services, selection of independent public
34 accountants, and the selection of a committee, the members of
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1 which need not be otherwise affiliated with the company, to
2 manage the business of the account.
3 (Source: P.A. 86-1154; 86-1156.)
4 Section 20. The Housing Development and Construction Act
5 is amended by changing Section 5 as follows:
6 (310 ILCS 20/5) (from Ch. 67 1/2, par. 57)
7 Sec. 5. Any grants paid hereunder to a housing authority
8 shall be deposited in a separate fund and, subject to the
9 approval of the Department of Commerce and Community Affairs,
10 may be used for any or all of the following purposes as the
11 needs of the community may require: the acquisition of land
12 by purchase, gift or condemnation and the improvement
13 thereof, the purchase and installation of temporary housing
14 facilities, the construction of housing units for rent or
15 sale to veterans, the families of deceased servicemen, and
16 for persons and families who by reason of overcrowded housing
17 conditions or displacement by eviction, fires or other
18 calamities, or slum clearance or other private or public
19 project involving relocation, are in urgent need of safe and
20 sanitary housing, the making of grants in connection with the
21 sale or lease of real property as provided in the following
22 paragraph of this section, and for any and all purposes
23 authorized by the "Housing Authorities Act," approved March
24 19, 1934, as amended, including administrative expenses of
25 the housing authorities in relation to the aforesaid
26 objectives, to the extent and for the purposes authorized and
27 approved by the Department of Commerce and Community Affairs.
28 Each housing authority is vested with power to exercise the
29 right of eminent domain for the purposes authorized by this
30 Act. Condemnation proceedings instituted by any such
31 authority shall be in all respects in the manner provided for
32 the exercise of the right of eminent domain under Article VII
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1 of the Code of Civil Procedure, as amended.
2 In addition to the foregoing, and for the purpose of
3 facilitating the development and construction of housing,
4 housing authorities may, with the approval of the Department
5 of Commerce and Community Affairs, enter into contracts and
6 agreements for the sale or lease of real property acquired by
7 the Authority through the use of the grant hereunder, and may
8 sell or lease such property to (1) housing corporations
9 operating under "An Act in relation to housing," approved
10 July 12, 1933, as amended; (2) neighborhood redevelopment
11 corporations operating under the "Neighborhood Redevelopment
12 Corporation Law," approved July 9, 1941; (3) insurance
13 companies operating under Article VIII Section 125 of the
14 "Illinois Insurance Code," approved June 29, 1937, as
15 amended; (4) non-profit corporations organized for the
16 purpose of constructing, managing and operating housing
17 projects and the improvement of housing conditions, including
18 the sale or rental of housing units to persons in need
19 thereof; or (5) to any other individual, association or
20 corporation, including bona fide housing cooperatives,
21 desiring to engage in a development or redevelopment project.
22 The term "corporation" as used in this section, means a
23 corporation organized under the laws of this or any other
24 state of the United States, or of any country, which may
25 legally make investments in this State of the character
26 herein prescribed, including foreign and alien insurance
27 companies as defined in Section 2 of the "Illinois Insurance
28 Code." No sale or lease shall be made hereunder to any of the
29 aforesaid corporations, associations or individuals unless a
30 plan approved by the Authority has been presented by the
31 purchaser or lessee for the development or redevelopment of
32 such property, together with a bond, with satisfactory
33 sureties, of not less than 10% of the cost of such
34 development or redevelopment, conditioned upon the completion
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1 of such development or redevelopment; provided that the
2 requirement of the bond may be waived by the Department of
3 Commerce and Community Affairs if it is satisfied of the
4 financial ability of the purchaser or lessee to complete such
5 development or redevelopment in accordance with the presented
6 plan. To further assure that the real property so sold or
7 leased shall be used in accordance with the plan, the
8 Department of Commerce and Community Affairs may require the
9 purchaser or lessee to execute in writing such undertakings
10 as the Department deems necessary to obligate such purchaser
11 or lessee (1) to use the property for the purposes presented
12 in the plan; (2) to commence and complete the building of the
13 improvements designated in the plan within the periods of
14 time that the Department of Commerce and Community Affairs
15 fixes as reasonable, and (3) to comply with such other
16 conditions as are necessary to carry out the purposes of this
17 Act. Any such property may be sold pursuant to this section
18 for any legal consideration in an amount to be approved by
19 the Department of Commerce and Community Affairs. Subject to
20 the approval of the Department of Commerce and Community
21 Affairs, a housing authority may pay to any non-profit
22 corporation of the character described in this section from
23 grants made available from state funds, such sum of money
24 which, when added to the value of the land so sold or leased
25 to such non-profit corporation and the value of other assets
26 of such non-profit corporation available for use in the
27 project, will enable such non-profit corporation to obtain
28 Federal Housing Administration insured construction
29 mortgages. Any such authority may also sell, transfer,
30 convey or assign to any such non-profit corporation any
31 personal property, including building materials and supplies,
32 as it deems necessary to facilitate the completion of the
33 development or redevelopment by such non-profit corporation.
34 If the area of operation of a housing authority includes
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1 a city, village or incorporated town having a population in
2 excess of 500,000, as determined by the last preceding
3 Federal Census, no real property or interest in real property
4 shall be acquired in such municipality by the housing
5 authority until such time as the housing authority has
6 advised the governing body of such municipality of the
7 description of the real property, or interest therein,
8 proposed to be acquired, and the governing body of the
9 municipality has approved the acquisition thereof by the
10 housing authority.
11 (Source: P.A. 82-783.)
12 Section 25. The Blighted Areas Redevelopment Act of 1947
13 is amended by changing Section 19 as follows:
14 (315 ILCS 5/19) (from Ch. 67 1/2, par. 81)
15 Sec. 19. The Commission may at such times as it deems
16 expedient transfer and sell the fee simple title, or such
17 lesser estate as the Commission may have heretofore acquired
18 or may hereafter acquire, to all or any part of the real
19 property within the area of a redevelopment project not
20 disposed of in accordance with Sections 17, 18 and 18.1
21 hereof to (1) Neighborhood Redevelopment Corporations
22 operating under the "Neighborhood Redevelopment Corporation
23 Law", approved July 9, 1941, as amended, (2) Insurance
24 Companies operating under Article VIII Section 125.21a of the
25 "Illinois Insurance Code", approved June 29, 1937, as
26 amended, (3) any individual, association, or corporation,
27 organized under the laws of this State or of any other State
28 or country, which may legally make such investments in this
29 State, including foreign and alien insurance companies, as
30 defined in Section 2 of the Illinois Insurance Code, or (4)
31 bodies politic and corporate, public corporations, or any
32 private interests empowered by law to acquire, develop and
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1 use such real property for such uses, public or private, as
2 are in accordance with an approved plan; provided, however,
3 that any sale of real property to a Housing Authority shall
4 be made only in accordance with the provisions of Sections 18
5 and 18.1 hereof. To assure that the real property so sold is
6 used in accordance with the approved plan referred to in
7 Section 19.1 hereof, the Commission shall inquire into and
8 satisfy itself concerning the financial ability of the
9 purchaser to complete the redevelopment in accordance with
10 the approved plan and shall require the purchaser to execute
11 in writing such undertakings as the Commission may deem
12 necessary to obligate the purchaser: (1) to use the land for
13 the purposes designated in the approved plan, (2) to commence
14 and complete the building of the improvements within the
15 periods of time which the Commission fixes as reasonable, and
16 (3) to comply with such other conditions as are necessary to
17 carry out the purposes of this Act. Any such area may be sold
18 either as an entirety or in such parcels as the Commission
19 shall deem expedient. It shall not be necessary that title be
20 acquired to all real property within the area of a
21 redevelopment project before the sale of a part thereof may
22 be made as provided herein. Any real property sold pursuant
23 to the foregoing provisions of this Section shall be sold at
24 its use value (which may be less than its acquisition cost),
25 which represents the value at which the Commission determines
26 such land should be made available in order that it may be
27 developed or redeveloped for the purposes specified in the
28 approved plan.
29 Any real property lying within the area of a
30 redevelopment project which has not been sold by the
31 Commission within 5 years after the Commission has acquired
32 title to all the real property within the area of that
33 redevelopment project, shall be forthwith sold by the
34 Commission at public sale for cash to the highest bidder
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1 obligating himself in the manner set forth in the preceding
2 paragraph of this Section to redevelop the property in
3 accordance with the approved plan. Notice of such sale and of
4 the place where the approved plan may be inspected shall be
5 published once in a newspaper having a general circulation in
6 the municipality in which the real property is situated at
7 least 20 days prior to the date of such public sale, and
8 shall contain a description of the real property to be sold.
9 The Commission may reject the bids received if, in the
10 opinion of the Commission, the highest bid does not equal or
11 exceed the use value (as herein above defined) of the land to
12 be sold. At the expiration of six (6) months from the date of
13 rejecting bids, the Commission shall again advertise for sale
14 any real property then remaining unsold. Each publication
15 shall be subject to the same requirements and conditions as
16 the original publication.
17 (Source: P.A. 83-333.)".