Public Act 90-0709 of the 90th General Assembly
Public Act 90-0709
HB3406 Enrolled LRB9009735KDpc
AN ACT in relation to government moneys.
Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
Section 3. The Rural Bond Bank Act is amended by
changing Sections 1-3 and 3-3 as follows:
(30 ILCS 360/1-3) (from Ch. 17, par. 7201-3)
Sec. 1-3. Definitions. As used in this Act, unless the
context otherwise indicates:
(a) "Bank" or "Bond Bank" means the Illinois Rural Bond
Bank created by Section 2-1.
(b) "Bondholder" or "holder" or "noteholder" or any
similar term when used with reference to a bond or note of
the Bank means any person who is the bearer of any
outstanding bond or note of the Bank registered to bearer or
not registered, or the registered owner of any outstanding
bond of the Bank which at the time is registered other than
to bearer.
(c) "Bonds" means bonds of the Bank issued under this
Act.
(d) "Fully marketable form" means a local governmental
security duly executed and accompanied by an approving legal
opinion of a bond counsel of recognized standing in the field
of local governmental law whose opinions are generally
accepted by purchasers of local governmental bonds. The local
governmental security so executed need not be printed or
lithographed nor be in more than one denomination.
(e) "General fund" means the fund established as
provided in Section 3-7.
(f) "Governmental unit" means any rural county; or any
municipality, excluding any home rule municipality in a
county contiguous with a county having a population in excess
of 3,000,000 or any home rule municipality in a county with a
population of 3,000,000 or greater, or township having a
population less than 25,000, school district, community
college district, special district, municipal corporation,
public corporation, any other local governmental body, any
other local public entity as defined in the Local
Governmental and Governmental Employees Tort Immunity Act, or
other unit designated as a rural unit of local government by
the Governor's Executive Order creating the Rural Fair Share
Initiative, located in a rural county or having a majority of
the territory within its corporate boundaries and at least
90% of its population located in a rural county.
(g) "Local governmental security" means a bond or note
or evidence of debt issued by a governmental unit and payable
from taxes or from rates, charges or assessments.
(h) "Notes" means any notes of the Bank issued under
this Act.
(i) "Required debt service reserve" means the amount
required to be on deposit in the reserve fund as prescribed
by Section 3-6.
(j) "Reserve fund" means the Rural Bond Bank Reserve
Fund established as provided in Section 3-6.
(k) "Revenues" means all fees, charges, moneys, profits,
payments of principal of or interest on local governmental
securities and other investments, gifts, grants,
contributions, appropriations and all other income derived or
to be derived by the Bank under this Act.
(l) "Rural county" means any county other than a county
having a population in excess of 3,000,000.
(Source: P.A. 89-211, eff. 8-3-95.)
(30 ILCS 360/3-3) (from Ch. 17, par. 7203-3)
Sec. 3-3. Bonds and notes of the Bank.
(a) The Bank may issue its bonds and notes from time to
time in any principal amounts that it considers necessary to
provide funds for any of the purposes authorized by this Act,
including:
(1) the making of loans;
(2) the payment, funding or refunding of the
principal of, or interest or redemption premiums on, any
bonds issued by the Bank, whether the bonds or interest
to be funded or refunded have or have not become due or
subject to redemption before maturity in accordance with
their terms;
(3) the establishment or increase of reserves to
secure or to pay bonds or interest on the bonds; and
(4) all other costs or expenses of the Bank
incident to and necessary or convenient to carry out its
corporate purposes and powers.
(b) Except as expressly provided otherwise in this Act
or by the Bank, every issue of bonds shall be general
obligations of the Bank payable out of any revenues or funds
of the Bank, subject only to any agreements with the holders
of particular bonds pledging any particular revenues or
funds. General obligation bonds may be additionally secured
by a pledge of any grants, subsidies, contributions, funds or
money from the federal government, the State, any
governmental unit, any person or a pledge of any income or
revenues, funds or money of the Bank from any source.
Not less than 30 days prior to the commitment to issue
its bonds, or the making of loans or the purchasing of
securities for the purpose of financing residential
properties or related improvements, the Bank shall provide
notice to the Executive Director of the Illinois Housing
Development Authority. Within 30 days after notice is
provided, the Illinois Housing Development Authority shall
either in writing express interest in financing the
residential property or related improvements or notify the
Bank that it is not interested in providing such financing
and the Bank may finance it or seek alternative financing.
(c)(1) The Bank may issue its notes for any
corporate purpose of the Bank from time to time, in any
principal amounts that it considers necessary, and may
renew or pay and retire or refund the notes from the
proceeds of bonds or of other notes, or from any other
funds or money of the Bank available or to be made
available for that purpose in accordance with any
contract between the Bank and the noteholders, not
otherwise pledged. The notes shall be issued in the same
manner as bonds. The notes and the resolution or
resolutions authorizing the notes may contain any
provisions, conditions or limitations which the bonds or
a bond resolution of the Bank may contain.
(2) Unless provided otherwise in any contract
between the Bank and the noteholders, and unless the
notes have been otherwise paid, funded or refunded, the
proceeds of any bonds of the Bank issued, among other
things, to fund such outstanding notes, shall be held,
used and applied by the Bank to the payment and
retirement of the principal of these notes and the
interest due and payable on the notes.
(3) The Bank may make contracts for the future sale
from time to time of the notes under which the purchaser
is committed to purchase the notes from time to time on
terms and conditions stated in the contracts. The Bank
may pay any consideration that it determines proper for
these commitments.
(d) Whether or not the bonds or notes of the Bank are of
such form and character as to be negotiable instruments under
Article 8 of the Uniform Commercial Code, the bonds and notes
shall be and are made negotiable instruments within the
meaning of and for all the purposes of the Uniform Commercial
Code, subject only to the provisions of the bonds and notes
for registration.
(e) Bonds or notes of the Bank shall be authorized by
resolution of the Bank and may be issued in one or more
series. The resolution or resolutions may provide:
(1) the date or dates the bonds or notes will bear;
(2) the time or times the bonds or notes will
mature;
(3) the rate or rates of interest per year the
bonds or notes will bear;
(4) the denomination or denominations of the bonds
or notes;
(5) the form of the bonds or notes, either coupon
or registered;
(6) the conversion or registration privileges
carried by the bonds or notes;
(7) the rank or priority of the bonds or notes;
(8) the manner of execution of the bonds or notes;
(9) the sources, medium and place or places, within
or outside this State, of payment; and
(10) the terms of redemption of the bonds or notes,
with or without premium.
(f) Bonds or notes of the Bank may be sold at public or
private sale at the time or times and at the price or prices
determined by the Bank.
(g) Upon approval of the Governor, except as otherwise
provided herein, bonds or notes of the Bank may be issued
under this Act without obtaining the consent of any other
department, division, commission, board, bureau or agency of
the State, and without any other proceeding or the happening
of any other conditions or things than those proceedings,
conditions or things which are specifically required by this
Act. Approval of the Governor is not required for issuances
of bonds or notes as to which the Bank has determined that
subsection (c) of Section 2-6 shall not apply.
(h) The Bank may from time to time issue its notes as
provided in this Act and pay and retire or fund or refund
those notes from proceeds of bonds or of other notes, or from
any other funds or money of the Bank available or to be made
available for those purposes in accordance with any contract
between the Bank and the noteholders. Unless provided
otherwise in any contract between the Bank and the holders of
notes, and unless the notes have been otherwise paid, funded
or refunded, the proceeds of any bonds of the Bank issued,
among other things, to fund those outstanding notes, shall be
held, used and applied by the Bank to the payments and
retirement of the principal of the notes and the interest due
and payable on the notes.
(i) The total aggregate original principal amount of all
bonds and notes issued by the Bank shall not exceed
$200,000,000 $150,000,000. No more than $50,000,000
$25,000,000 in aggregate original principal amount of all
bonds and notes issued by the Bank shall be used to purchase
local governmental securities issued by governmental units
located in a county having a population in excess of
3,000,000 or in a County contiguous with a county having a
population in excess of 3,000,000.
The bonds and notes issued by the Bank may bear interest
at such rate or rates not exceeding the maximum rate
permitted by the Bond Authorization Act.
(j) The State of Illinois pledges to and agrees with the
holders of the bonds and notes of the Bank issued pursuant to
this Act that the State will not limit or alter the rights
and powers vested in the Bank by this Act so as to impair the
terms of any contract made by the Bank with those holders or
in any way impair the rights and remedies of those holders
until those bonds and notes, together with interest thereon,
with interest on any unpaid installments of interest, and all
costs and expenses in connection with any action or
proceedings by or on behalf of such holders, are fully met
and discharged. In addition, the State pledges to and agrees
with the holders of the bonds and notes of the Bank issued
pursuant to this Act that the State will not limit or alter
the basis on which State funds are to be paid to the Bank as
provided in this Act, or the use of such funds, so as to
impair the terms of any such contract. The Bank is authorized
to include these pledges and agreements of the State in any
contract with the holders of bonds or notes issued pursuant
to this Act.
(Source: P.A. 89-211, eff. 8-3-95.)
Section 5. The Revenue Anticipation Act is amended by
adding Section 12 as follows:
(50 ILCS 425/12 new)
Sec. 12. Anticipation of certain federal revenues. In
the event the anticipated revenues under this Act are
proceeds or receipts of a loan or grant, or both, from a
federal agency in connection with waterworks or wastewater
facilities, or both, and related facilities, improvements,
and costs, and reasonable provision has been made for the
payment of interest on the notes when due while the notes are
outstanding; (i) the requirement in Section 2 of this Act for
a filing with the County Clerk shall not apply, (ii) the 12
month limit on the due date of the notes in Section 3 shall
be 18 months, and (iii) the 85% limitation on the
anticipatory revenues in Section 7 of this Act shall be 100%.
Section 99. Effective date. This Act takes effect on
July 1, 1998.