State of Illinois
91st General Assembly
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[ Introduced ][ Enrolled ][ House Amendment 001 ]

91_HB1274eng

 
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 1        AN  ACT  to  amend  the  Illinois  Educational Facilities
 2    Authority Act.

 3        Be it enacted by the People of  the  State  of  Illinois,
 4    represented in the General Assembly:

 5        Section 5.  The Illinois Educational Facilities Authority
 6    Act  is amended by changing Sections 1, 3, 3.03, 3.06, 3.06a,
 7    3.07c, 3.08, 5.11, 5.12, 5.16, and  24  and  adding  Sections
 8    3.10, 5.11a, and 5.11b as follows:

 9        (110 ILCS 1015/1) (from Ch. 144, par. 1301)
10        Sec. 1.  Declaration of purpose.  It is declared that for
11    the  benefit  of  the  people  of  the State of Illinois, the
12    conduct and increase of their commerce,  the  protection  and
13    enhancement  of  their  welfare, the development of continued
14    prosperity and the improvement of  their  health  and  living
15    conditions  it  is essential that all the people of the State
16    be given the fullest opportunity  to  learn  and  to  develop
17    their  intellectual and mental capacities and skills; that to
18    achieve these ends  it  is  of  the  utmost  importance  that
19    private  institutions of higher education within the State be
20    provided with appropriate  additional  means  to  assist  the
21    people  of  the  State  in  achieving  the required levels of
22    learning and development of  their  intellectual  and  mental
23    capacities  and  skills and that cultural institutions within
24    the State be provided with appropriate  additional  means  to
25    expand  the  services  and resources which they offer for the
26    cultural, intellectual, scientific, educational and  artistic
27    enrichment of the people of the State; and that, in execution
28    of  the  public  policy set forth above, it is the purpose of
29    this  Act  to  provide  a  measure  of  assistance   and   an
30    alternative   method   of   financing   to   enable   private
31    institutions of higher education and cultural institutions in
 
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 1    the   State  to:  (i)  finance  or  to  refund  or  refinance
 2    outstanding   indebtedness   incurred   by   them   for   the
 3    construction or acquisition  of  educational  facilities  and
 4    structures  or cultural facilities and structures, whether or
 5    not constructed or acquired prior to the  effective  date  of
 6    this   Act,   (ii)  and  to  provide  the  needed  additional
 7    facilities and structures for the public  benefit  and  good,
 8    and (iii) enable these institutions to obtain working capital
 9    through financing or refinancing of their accounts receivable
10    or  otherwise  in  execution  of  the public policy set forth
11    above.
12    (Source: P.A. 88-555, eff. 7-27-94.)

13        (110 ILCS 1015/3) (from Ch. 144, par. 1303)
14        Sec. 3.  Definitions.  In this Act,  unless  the  context
15    otherwise  requires,  the  terms  specified  in Sections 3.01
16    through 3.10 3.09 have the meanings ascribed to them in those
17    Sections.
18    (Source: P.A. 84-995.)

19        (110 ILCS 1015/3.03) (from Ch. 144, par. 1303.03)
20        Sec.  3.03.  Cost.  "Cost",  as  applied  to  a   project
21    financed  under  this  Act,  means  all  costs  necessary  or
22    incident  to the acquisition, and construction, and financing
23    of  the  project,  including  the  costs  of   refunding   or
24    refinancing   outstanding   indebtedness   incurred  for  the
25    financing  of   such   project,   engineering,   legal   and,
26    architectural  fees, working capital, and all other necessary
27    and incidental expenses,  together  with  interest  on  bonds
28    issued  to  finance the project to a date 6 months subsequent
29    to the estimated date of completion.
30    (Source: P.A. 78-399.)

31        (110 ILCS 1015/3.06) (from Ch. 144, par. 1303.06)
 
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 1        Sec. 3.06.  Educational facility.  "Educational facility"
 2    may comprise any property located within the State or, if the
 3    property is owned, operated, or managed by or for the benefit
 4    of  a  participating  institution  or  an  affiliate  of  the
 5    institution,  located  outside  the  State,  constructed   or
 6    acquired  before  or  after  the  effective date of this Act,
 7    which is or will be, in whole or in part,  suitable  for  the
 8    instruction,  feeding, recreation or housing of students, the
 9    conducting of research or other work of a private institution
10    of higher education, the use  by  a  private  institution  of
11    higher education in connection with any educational, research
12    or  related  or  incidental  activities  then  being or to be
13    conducted  by  it,  or  any  combination  of  the  foregoing,
14    including, without limitation, any such property suitable for
15    use as  or  in  connection  with  any  one  or  more  of  the
16    following:  an  academic  facility,  administrative facility,
17    agricultural  facility,  assembly  hall,  athletic  facility,
18    auditorium, boating facility, campus, communication facility,
19    computer facility, continuing education facility,  classroom,
20    dining   hall,  dormitory,  exhibition  hall,  fire  fighting
21    facility,  fire  prevention  facility,   food   service   and
22    preparation  facility,  gymnasium,  greenhouse,  health  care
23    facility,    hospital,   housing,   instructional   facility,
24    laboratory, library, maintenance facility, medical  facility,
25    museum,  offices,  parking area, physical education facility,
26    recreational facility, research  facility,  stadium,  storage
27    facility,  student union, study facility, theatre or utility.
28    An educational facility shall not include any  property  used
29    or  to  be  used  for  sectarian instruction or study or as a
30    place for devotional activities or religious worship nor  any
31    property  which is used or to be used primarily in connection
32    with any part of the program of a  school  or  department  of
33    divinity for any religious denomination.
34    (Source: P.A. 78-399.)
 
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 1        (110 ILCS 1015/3.06a) (from Ch. 144, par. 1303.06a)
 2        Sec.  3.06a.  Cultural facility.  "Cultural facility" may
 3    comprise any property located within the  State  or,  if  the
 4    property is owned, operated, or managed by or for the benefit
 5    of  a  participating  institution  or  an  affiliate  of  the
 6    institution,   located  outside  the  State,  constructed  or
 7    acquired before or after the  effective  date  of  this  Act,
 8    which  is  or  will be, in whole or in part, suitable for the
 9    particular purposes  or  needs  of  a  cultural  institution,
10    including, without limitation, any such property suitable for
11    use  as  or  in  connection  with  any  one  or  more  of the
12    following: an  administrative  facility,  aquarium,  assembly
13    hall, auditorium, botanical garden, exhibition hall, gallery,
14    greenhouse,  library,  museum, scientific laboratory, theater
15    or zoological  facility,  and  shall  also  include,  without
16    limitation,  books,  works  of art or music, animal, plant or
17    aquatic life  or  other  items  for  display,  exhibition  or
18    performance.  The term "cultural facility" includes buildings
19    on  the  National Register of Historic Places which are owned
20    or operated by nonprofit entities.  A cultural facility shall
21    not include any property used or to  be  used  for  sectarian
22    instruction  or study or as a place for devotional activities
23    or religious worship nor any property which is used or to  be
24    used  primarily in connection with any part of the program of
25    a  school  or  department  of  divinity  for  any   religious
26    denomination.
27    (Source: P.A. 84-995.)

28        (110 ILCS 1015/3.07c) (from Ch. 144, par. 1303.07c)
29        Sec.  3.07c.   Participating institution.  "Participating
30    institution" means a private institution of higher education,
31    a cultural institution, or a not for profit organization that
32    provides financial or other assistance to or for the  benefit
33    of  private  institutions  of  higher  education  or cultural
 
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 1    institutions, as the case may  be,  which,  pursuant  to  the
 2    provisions of this Act, undertakes a project or the refunding
 3    or  refinancing  of outstanding indebtedness incurred for the
 4    financing of a project or undertakes the financing of working
 5    capital.
 6    (Source: P.A. 88-555, eff. 7-27-94.)

 7        (110 ILCS 1015/3.08) (from Ch. 144, par. 1303.08)
 8        Sec. 3.08.  Property. "Property" means any real, personal
 9    or  mixed  property,  or  any  interest  therein,  including,
10    without   limitation,   any   real   estate,   appurtenances,
11    buildings,  easements,  equipment,  furnishings,   furniture,
12    improvements,  machinery,  commodities,  rights  of  way  and
13    structures, or any interest therein.
14    (Source: P.A. 76-1810.)

15        (110 ILCS 1015/3.10 new)
16        Sec.  3.10.  Working  capital.   "Working capital" means,
17    with respect to any participating institution,  funds  to  be
18    used  in  or reserved for the operations of the participating
19    institution.

20        (110 ILCS 1015/5.11) (from Ch. 144, par. 1305.11)
21        Sec. 5.11.  Loans for cost of project and related capital
22    needs.  To make loans to any  participating  institution  for
23    the  cost  of  a  project  and other related capital needs in
24    accordance with an agreement between the  Authority  and  the
25    participating  institution;  provided that no such loan shall
26    exceed the total cost of the project  as  determined  by  the
27    participating institution and approved by the Authority.
28    (Source: P.A. 84-995.)

29        (110 ILCS 1015/5.11a new)
30        Sec.  5.11a.  Working  capital bonds.  In accordance with
 
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 1    applicable law, to issue bonds for the purpose  of  financing
 2    working  capital  for one or more participating institutions,
 3    whether through a financing of their accounts  receivable  or
 4    otherwise,  either  singly  or on a combined basis with other
 5    participating institutions.

 6        (110 ILCS 1015/5.11b new)
 7        Sec. 5.11b.  Issuance of bonds for  bulk  purchases.   To
 8    issue  bonds  for  the  purpose  of  purchasing,  leasing, or
 9    otherwise acquiring, financing, selling, or transferring for,
10    to, or on behalf of itself and any participating institution,
11    either alone  or  in  partnership  with  other  participating
12    institutions, commodities or other property necessary for the
13    daily  operation  of  the educational facilities  or cultural
14    facilities of the participating institutions  and  for  their
15    employees   and  patrons,  including,  but  not  limited  to,
16    electricity, petroleum products, fuel oil, and natural gas.

17        (110 ILCS 1015/5.12) (from Ch. 144, par. 1305.12)
18        Sec. 5.12.  Loans to refund  outstanding  obligations  or
19    advances.   To  make  loans to a participating institution to
20    refund outstanding obligations or advances  issued,  made  or
21    given  by  such  participating  institution for the cost of a
22    project or for working capital.
23    (Source: P.A. 84-995.)

24        (110 ILCS 1015/5.16) (from Ch. 144, par. 1305.16)
25        Sec.   5.16.  Bonds   for   refunding   or    refinancing
26    outstanding  indebtedness.  To issue bonds for the purpose of
27    refunding or refinancing the outstanding  indebtedness  of  a
28    participating  institution,  whether or not outstanding prior
29    to or after the effective date of  this  Act,  provided  that
30    such  indebtedness was originally incurred for the purpose of
31    constructing  or  acquiring  an  educational  facility  or  a
 
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 1    cultural facility or for the  purpose  of  acquiring  working
 2    capital.
 3    (Source: P.A. 84-995.)

 4        (110 ILCS 1015/24) (from Ch. 144, par. 1324)
 5        Sec.  24.  Purchase  of  securities;  security;  title to
 6    facilities.
 7        (a)  Notwithstanding any other provision of this  Act  to
 8    the  contrary,  the  Authority  may  finance  the  cost of an
 9    educational facility or cultural  facility,  finance  working
10    capital, or finance other capital needs or refund outstanding
11    indebtedness incurred prior to or after the effective date of
12    this   Act   for   the  construction  or  acquisition  of  an
13    educational facility or cultural facility, for the  financing
14    of  working  capital,  or  for other related capital needs by
15    issuing  its  bonds  for  the  purpose  of   purchasing   the
16    securities   of   a   participating   institution.  Any  such
17    securities shall have the same principal amounts,  maturities
18    and  interest  rates  as  the  bonds  so being issued, may be
19    secured by a first mortgage lien on the educational  facility
20    or cultural facility so being financed or by a first mortgage
21    lien or security interests in other real or personal property
22    acceptable  to  the  Authority  and  created  by  a  mortgage
23    instrument   or   security   agreement  satisfactory  to  the
24    Authority, and may be insured or guaranteed  by  others.  Any
25    such  bonds  shall  be secured by a pledge of such securities
26    under the trust agreement or indenture  creating  such  bonds
27    and,  shall  be payable solely out of the payments to be made
28    on such securities and shall not exceed in  principal  amount
29    the cost of such educational facility or cultural facility as
30    determined  by  the participating institution and approved by
31    the Authority. In other respects, any  such  bonds  shall  be
32    subject  to  the  provisions of Section 9 (c) of this Act and
33    the trust agreement or  indenture  creating  such  bonds  may
 
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 1    contain  such  of  the  provisions set forth in Section 9 (d)
 2    hereof as the Authority may deem appropriate.
 3        (b)  In  the  event  that  an  educational  facility   or
 4    cultural  facility  is financed pursuant to this Section, the
 5    title to such facility  shall  remain  in  the  participating
 6    institution  owning  the  same,  subject  to  the lien of the
 7    mortgage,  if  any,  securing  the  securities   then   being
 8    purchased,  and  there  shall  be  no  lease of such facility
 9    between the Authority and such participating institution.
10        (c)  The provisions of Section 8 of this  Act  shall  not
11    apply  to  any  educational  facility  or  cultural  facility
12    financed  pursuant  to  this Section, but the Authority shall
13    return the securities, if any, purchased through the issuance
14    of bonds hereunder to the participating  institution  issuing
15    such  securities  when  such  bonds  have been fully paid and
16    retired or when adequate provision has been made to  pay  and
17    retire  the  same fully and all other conditions of the trust
18    agreement  or  indenture  creating  such  bonds   have   been
19    satisfied   and   the  lien  thereof  has  been  released  in
20    accordance with the provisions thereof.
21    (Source: P.A. 88-555, eff. 7-27-94.)

22        Section 99.  Effective date.  This Act takes effect  upon
23    becoming law.

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