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Public Act 91-0905
HB2261 Enrolled LRB9104860DHmg
AN ACT to amend the Upper Illinois River Valley
Development Authority Act by changing Sections 4 and 7.
Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
Section 5. The Upper Illinois River Valley Development
Authority Act is amended by changing Sections 4 and 7 as
follows:
(70 ILCS 530/4) (from Ch. 85, par. 7154)
Sec. 4. Establishment.
(a) There is hereby created a political subdivision,
body politic and municipal corporation named the Upper
Illinois River Valley Development Authority. The territorial
jurisdiction of the Authority is that geographic area within
the boundaries of Grundy, LaSalle, Bureau, Putnam, Kendall,
Kane, McHenry, and Marshall counties in the State of Illinois
and any navigable waters and air space located therein.
(b) The governing and administrative powers of the
Authority shall be vested in a body consisting of 20 18
members including, as ex officio members, the Director of the
Department of Commerce and Community Affairs, or his or her
designee, and the Director of the Department of Central
Management Services, or his or her designee. The other 18 16
members of the Authority shall be designated "public
members", 10 of whom shall be appointed by the Governor with
the advice and consent of the Senate and 8 6 of whom shall be
appointed one each by the county board chairmen of Grundy,
LaSalle, Bureau, Putnam, Kendall, Kane, McHenry, and Marshall
counties. All public members shall reside within the
territorial jurisdiction of this Act. Eleven Ten members
shall constitute a quorum. The public members shall be
persons of recognized ability and experience in one or more
of the following areas: economic development, finance,
banking, industrial development, small business management,
real estate development, community development, venture
finance, organized labor or civic, community or neighborhood
organization. The Chairman of the Authority shall be elected
by the Board annually from the 8 6 members appointed by the
county board chairmen.
(c) The terms of all initial members of the Authority
shall begin 30 days after the effective date of this Act. Of
the 14 public members appointed pursuant to this Act, 4
appointed by the Governor shall serve until the third Monday
in January, 1992, 4 appointed by the Governor shall serve
until the third Monday in January, 1993, one appointed by the
Governor shall serve until the third Monday in January, 1994,
one appointed by the Governor shall serve until the third
Monday in January 1999, the member appointed by the county
board chairman of LaSalle County shall serve until the third
Monday in January, 1992, the members appointed by the county
board chairmen of Grundy County, Bureau County, Putnam
County, and Marshall County shall serve until the third
Monday in January, 1994, and the member appointed by the
county board chairman of Kendall County shall serve until the
third Monday in January, 1999. The initial members appointed
by the chairmen of the county boards of Kane and McHenry
counties shall serve until the third Monday in January, 2003.
All successors shall be appointed by the original appointing
authority and hold office for a term of 3 years commencing
the third Monday in January of the year in which their term
commences, except in case of an appointment to fill a
vacancy. Vacancies occurring among the public members shall
be filled for the remainder of the term. In case of vacancy
in a Governor-appointed membership when the Senate is not in
session, the Governor may make a temporary appointment until
the next meeting of the Senate when a person shall be
nominated to fill such office, and any person so nominated
who is confirmed by the Senate shall hold office during the
remainder of the term and until a successor shall be
appointed and qualified. Members of the Authority shall not
be entitled to compensation for their services as members but
shall be entitled to reimbursement for all necessary expenses
incurred in connection with the performance of their duties
as members.
(d) The Governor may remove any public member of the
Authority in case of incompetency, neglect of duty, or
malfeasance in office.
(e) The Board shall appoint an Executive Director who
shall have a background in finance, including familiarity
with the legal and procedural requirements of issuing bonds,
real estate or economic development and administration. The
Executive Director shall hold office at the discretion of the
Board. The Executive Director shall be the chief
administrative and operational officer of the Authority,
shall direct and supervise its administrative affairs and
general management, shall perform such other duties as may be
prescribed from time to time by the members and shall receive
compensation fixed by the Authority. The Executive Director
shall attend all meetings of the Authority; however, no
action of the Authority shall be invalid on account of the
absence of the Executive Director from a meeting. The
Authority may engage the services of such other agents and
employees, including attorneys, appraisers, engineers,
accountants, credit analysts and other consultants, as it may
deem advisable and may prescribe their duties and fix their
compensation.
(f) The Board may, by majority vote, nominate up to 4
non-voting members for appointment by the Governor.
Non-voting members shall be persons of recognized ability and
experience in one or more of the following areas: economic
development, finance, banking, industrial development, small
business management, real estate development, community
development, venture finance, organized labor or civic,
community or neighborhood organization. Non-voting members
shall serve at the pleasure of the Board. All non-voting
members may attend meetings of the Board and shall be
reimbursed as provided in subsection (c).
(g) The Board shall create a task force to study and
make recommendations to the Board on the economic development
of the territory within the jurisdiction of this Act. The
members of the task force shall reside within the territorial
jurisdiction of this Act, shall serve at the pleasure of the
Board and shall be persons of recognized ability and
experience in one or more of the following areas: economic
development, finance, banking, industrial development, small
business management, real estate development, community
development, venture finance, organized labor or civic,
community or neighborhood organization. The number of
members constituting the task force shall be set by the Board
and may vary from time to time. The Board may set a specific
date by which the task force is to submit its final report
and recommendations to the Board.
(Source: P.A. 89-211, eff. 8-3-95.)
(70 ILCS 530/7) (from Ch. 85, par. 7157)
Sec. 7. Bonds.
(a) The Authority, with the written approval of the
Governor, shall have the continuing power to issue bonds,
notes, or other evidences of indebtedness in an aggregate
amount not to exceed $250,000,000 $100,000,000 for the
purpose of developing, constructing, acquiring or improving
projects, including those established by business entities
locating or expanding property within the territorial
jurisdiction of the Authority, for entering into venture
capital agreements with businesses locating or expanding
within the territorial jurisdiction of the Authority, for
acquiring and improving any property necessary and useful in
connection therewith and for the purposes of the Employee
Ownership Assistance Act. For the purpose of evidencing the
obligations of the Authority to repay any money borrowed, the
Authority may, pursuant to resolution, from time to time
issue and dispose of its interest bearing revenue bonds,
notes or other evidences of indebtedness and may also from
time to time issue and dispose of such bonds, notes or other
evidences of indebtedness to refund, at maturity, at a
redemption date or in advance of either, any bonds, notes or
other evidences of indebtedness pursuant to redemption
provisions or at any time before maturity. All such bonds,
notes or other evidences of indebtedness shall be payable
solely and only from the revenues or income to be derived
from loans made with respect to projects, from the leasing or
sale of the projects or from any other funds available to the
Authority for such purposes. The bonds, notes or other
evidences of indebtedness may bear such date or dates, may
mature at such time or times not exceeding 40 years from
their respective dates, may bear interest at such rate or
rates not exceeding the maximum rate permitted by "An Act to
authorize public corporations to issue bonds, other evidences
of indebtedness and tax anticipation warrants subject to
interest rate limitations set forth therein", approved May
26, 1970, as amended, may be in such form, may carry such
registration privileges, may be executed in such manner, may
be payable at such place or places, may be made subject to
redemption in such manner and upon such terms, with or
without premium as is stated on the face thereof, may be
authenticated in such manner and may contain such terms and
covenants as may be provided by an applicable resolution.
(b-1) The holder or holders of any bonds, notes or other
evidences of indebtedness issued by the Authority may bring
suits at law or proceedings in equity to compel the
performance and observance by any corporation or person or by
the Authority or any of its agents or employees of any
contract or covenant made with the holders of such bonds,
notes or other evidences of indebtedness, to compel such
corporation, person, the Authority and any of its agents or
employees to perform any duties required to be performed for
the benefit of the holders of any such bonds, notes or other
evidences of indebtedness by the provision of the resolution
authorizing their issuance and to enjoin such corporation,
person, the Authority and any of its agents or employees from
taking any action in conflict with any such contract or
covenant.
(b-2) If the Authority fails to pay the principal of or
interest on any of the bonds or premium, if any, as the same
become due, a civil action to compel payment may be
instituted in the appropriate circuit court by the holder or
holders of the bonds on which such default of payment exists
or by an indenture trustee acting on behalf of such holders.
Delivery of a summons and a copy of the complaint to the
Chairman of the Board shall constitute sufficient service to
give the circuit court jurisdiction of the subject matter of
such a suit and jurisdiction over the Authority and its
officers named as defendants for the purpose of compelling
such payment. Any case, controversy or cause of action
concerning the validity of this Act relates to the revenue of
the State of Illinois.
(c) Notwithstanding the form and tenor of any such
bonds, notes or other evidences of indebtedness and in the
absence of any express recital on the face thereof that it is
non-negotiable, all such bonds, notes and other evidences of
indebtedness shall be negotiable instruments. Pending the
preparation and execution of any such bonds, notes or other
evidences of indebtedness, temporary bonds, notes or
evidences of indebtedness may be issued as provided by
ordinance.
(d) To secure the payment of any or all of such bonds,
notes or other evidences of indebtedness, the revenues to be
received by the Authority from a lease agreement or loan
agreement shall be pledged, and, for the purpose of setting
forth the covenants and undertakings of the Authority in
connection with the issuance thereof and the issuance of any
additional bonds, notes or other evidences of indebtedness
payable from such revenues, income or other funds to be
derived from projects, the Authority may execute and deliver
a mortgage or trust agreement. A remedy for any breach or
default of the terms of any such mortgage or trust agreement
by the Authority may be by mandamus proceedings in the
appropriate circuit court to compel the performance and
compliance therewith, but the trust agreement may prescribe
by whom or on whose behalf such action may be instituted.
(e) Such bonds or notes shall be secured as provided in
the authorizing ordinance which may, notwithstanding any
other provision of this Act, include in addition to any other
security a specific pledge or assignment of and lien on or
security interest in any or all revenues or money of the
Authority from whatever source which may by law be used for
debt service purposes and a specific pledge or assignment of
and lien on or security interest in any funds or accounts
established or provided for by ordinance of the Authority
authorizing the issuance of such bonds or notes.
(f) In the event that the Authority determines that
monies of the Authority will not be sufficient for the
payment of the principal of and interest on its bonds during
the next State fiscal year, the Chairman, as soon as
practicable, shall certify to the Governor the amount
required by the Authority to enable it to pay such principal
of and interest on the bonds. The Governor shall submit the
amount so certified to the General Assembly as soon as
practicable, but no later than the end of the current State
fiscal year. This Section shall not apply to any bonds or
notes as to which the Authority shall have determined, in the
resolution authorizing the issuance of the bonds or notes,
that this Section shall not apply. Whenever the Authority
makes such a determination, that fact shall be plainly stated
on the face of the bonds or notes and that fact shall also be
reported to the Governor.
In the event of a withdrawal of moneys from a reserve
fund established with respect to any issue or issues of bonds
of the Authority to pay principal or interest on those bonds,
the Chairman of the Authority, as soon as practicable, shall
certify to the Governor the amount required to restore the
reserve fund to the level required in the resolution or
indenture securing those bonds. The Governor shall submit the
amount so certified to the General Assembly as soon as
practicable, but no later than the end of the current State
fiscal year.
(g) The State of Illinois pledges to and agrees with the
holders of the bonds and notes of the Authority issued
pursuant to this Section that the State will not limit or
alter the rights and powers vested in the Authority by this
Act so as to impair the terms of any contract made by the
Authority with such holders or in any way impair the rights
and remedies of such holders until such 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 Authority issued pursuant to this Section that
the State will not limit or alter the basis on which State
funds are to be paid to the Authority as provided in this
Act, or the use of such funds, so as to impair the terms of
any such contract. The Authority 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
Section.
(h) Not less than 30 days prior to the commitment to
issue bonds, notes, or other evidences of indebtedness for
the purpose of developing, constructing, acquiring or
improving housing or residential projects, as defined in
Section 3, the Authority 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 project or notify
the Authority that it is not interested in providing such
financing and the Authority may finance the project or seek
alternative financing.
(Source: P.A. 86-1024; 86-1313; 87-158; 87-778.)
Section 99. Effective date. This Act takes effect upon
becoming law.
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