| ||||
| Public Act 097-0790 | ||||
| ||||
| ||||
AN ACT concerning local government.
| ||||
Be it enacted by the People of the State of Illinois,
| ||||
represented in the General Assembly:
| ||||
Section 5. The Will-Kankakee Regional Development | ||||
Authority Law is amended by changing Section 7 and by adding | ||||
Section 14 as follows:
| ||||
(70 ILCS 535/7) (from Ch. 85, par. 7457)
| ||||
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 outstanding 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 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 the Bond | ||
Authorization Act, 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 subsection 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 subsection 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. 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.
| ||
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.
| ||
(Source: P.A. 86-1481; 87-778.)
| ||
(70 ILCS 535/14 new) | ||
Sec. 14. 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.
| ||
Section 99. Effective date. This Act takes effect upon | ||
becoming law.
| ||