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| Public Act 097-0312 | ||||
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AN ACT concerning local government.
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Be it enacted by the People of the State of Illinois,
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represented in the General Assembly:
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Section 5. The Upper Illinois River Valley Development | ||||
Authority Act is amended by changing Section 7 and by adding | ||||
Section 7.1 as follows:
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(70 ILCS 530/7) (from Ch. 85, par. 7157)
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Sec. 7. Bonds.
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(a) The Authority, with the written approval of the
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Governor, shall have the continuing power to issue bonds, | ||||
notes, or other
evidences of indebtedness in an aggregate | ||||
amount outstanding not to exceed $500,000,000 $250,000,000
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
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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
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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
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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.
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(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
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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.
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(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.
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(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
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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.
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(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
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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
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to compel the performance and compliance therewith, but the | ||
trust agreement
may prescribe by whom or on whose behalf such | ||
action may be instituted.
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(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
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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.
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(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.
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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.
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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. This subsection (f) shall not apply to any bond | ||
issued on or after the effective date of this amendatory Act of | ||
the 97th General Assembly.
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(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
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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.
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(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.
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(Source: P.A. 91-905, eff. 7-7-00.)
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(70 ILCS 530/7.1 new) | ||
Sec. 7.1. Bonds and notes; exemption from taxation. The | ||
creation of the Authority is in all respects for the benefit of | ||
the people of Illinois and for the improvement of their health, | ||
safety, welfare, comfort, and security, and its purposes are | ||
public purposes. In consideration thereof, the notes and bonds | ||
of the Authority issued pursuant to this Act and the income | ||
from these notes and bonds may be free from all taxation by the | ||
State or its political subdivisions, except for estate, | ||
transfer, and inheritance taxes. The exemption from taxation | ||
set forth in this Section shall apply to the income on any | ||
notes or bonds of the Authority only if the Authority in its | ||
sole judgment determines that the exemption enhances the | ||
marketability of the bonds or notes or reduces the interest | ||
rates that would otherwise be borne by the bonds or notes. For | ||
purposes of Section 250 of the Illinois Income Tax Act, the | ||
exemption of the Authority shall terminate after all of the | ||
bonds have been paid. The amount of the income that shall be | ||
added and then subtracted on the Illinois income tax return of | ||
a taxpayer, subject to Section 203 of the Illinois Income Tax | ||
Act, from federal adjusted gross income or federal taxable | ||
income in computing Illinois base income shall be the interest | ||
net of any bond premium amortization.
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Section 99. Effective date. This Act takes effect upon | ||
becoming law.
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