(50 ILCS 465/10)
Sec. 10.
Powers.
In addition to powers that an Authority may now
have, Authorities have the following powers:
(a) To acquire, and to contract and enter into advance commitments to
acquire, directly or indirectly, home mortgages owned by lending institutions
at any prices and upon any other terms and conditions that are determined by
the Authority or trustee that the Authority designates as its agent.
(b) To make and execute contracts with lending institutions for the
origination and servicing of home mortgage loans on behalf of an Authority and
to pay the reasonable value of services rendered in accordance with those
contracts.
(c) To make loans to lenders to enable those lenders to make home mortgage
loans in accordance with this Act.
(d) To establish, by rules, regulations, or ordinances relating to the
issuance of bonds or in any financing documents relating to the issuance of
bonds, any standards and requirements applicable to the purchase of home
mortgage loans or the origination of home mortgage loans or loans to lenders
that the Authority deems necessary or desirable to effectuate the public
purposes of this Act, including but not limited to: (i) the time within which
lending institutions must make participation commitments and make disbursements
for home mortgage loans; (ii) the terms and conditions of home mortgage loans
to be acquired or originated; (iii) the standards and criteria to be applied by
the Authority in defining persons of low or moderate income; (iv) the amounts
and types of insurance coverage required on homes, home mortgage loans, and
bonds; (v) the representations and warranties to be required of persons and
lending institutions as evidence of compliance with the standards and
requirements; (vi) restrictions as to interest rate and other terms of home
mortgage loans or the return realized therefrom by lending institutions; (vii)
the type and amount of collateral security to be provided to assure repayment
of any loans to lenders by the Authority and to assure repayment of bonds; and
(viii) any other matters related to the purchase or origination of home
mortgage loans or the making of loans to lenders that shall be deemed relevant
or necessary by the corporate authorities.
(e) To require from each lending institution from which home mortgage loans
are to be purchased or that will originate home mortgage loans on behalf of the
Authority or from lenders to which loans are made the submission, at the time
of making participation commitments, of evidence satisfactory to the Authority
of the ability and intention of the lending institutions to make home mortgage
loans and the submission, within the time specified by the Authority for making
disbursements for home mortgage loans, of evidence satisfactory to the
Authority of the making of home mortgage loans and of compliance with any
standards and requirements established by the Authority.
(f) To require that a lending institution or lender furnish, prior to or
concurrent with the delivery of any participation commitment by a lending
institution, a commitment fee in the form of a cash deposit, letter of credit,
promissory note, surety bond, or other instrument approved by the corporate
authorities executed by or on behalf of the lending institution, in an amount
to be determined by the corporate authorities.
(g) To issue its bonds to defray, in whole or in part, (i) the cost of
acquiring or originating home mortgage loans or making loans to lenders in
order to enable them to make home mortgage loans; (ii) if deemed necessary or
advisable, the cost of paying interest on bonds during a reasonable period
necessary to acquire or originate the home mortgage loans or to make the loans
to the lender; (iii) the costs of studies and surveys, insurance premiums,
underwriting fees, legal, accounting, and marketing services incurred in
connection with the issuance and the sale of the bonds, including amounts
required to establish reasonably necessary bond and interest reserve accounts,
and trustee, custodian, and rating agency fees; (iv) the costs of reasonable
reserves; and (v) any other costs that are reasonably related to the foregoing.
(h) To authorize the sale or other disposition of any home mortgage loan, in
whole or in part, upon any terms, at any price and time, and from time to time,
as may be necessary to assure that the revenues and receipts to be derived with
respect to the home mortgage loans, together with any insurance proceeds, funds
held in reserve accounts, and earnings thereon, shall produce and provide
revenues and receipts at least sufficient to provide for the prompt payment of
the principal, redemption premiums, if any, and interest at maturity of all
bonds issued pursuant to this Act or to otherwise authorize the sale or other
disposition of any home mortgage loan after the bonds have been paid or deemed
to be paid.
(i) To pledge any revenues and receipts to be received from any home
mortgage loans to the punctual payment of bonds authorized under this Act, and
the interest and redemption premiums, if any, on the bonds.
(j) To mortgage, pledge, or grant security interests in any home mortgage
loans, notes, or other property in favor of the holder or holders of bonds
issued therefor.
(k) To issue its bonds in any amount that may be necessary (and not limited
by the amount of bonds refunded) for the purpose of refunding, in whole or in
part, at any time, bonds previously issued, the proceeds of which refunding
bonds may be used, at the discretion of the corporate authorities, for paying
bonds at maturity, calling bonds for payment, and paying bonds prior to
maturity, or for deposit into an escrow or trust fund in advance of maturity of
bonds to be held for payment thereof at maturity or earlier.
(l) To appoint or designate a trustee or trustees for the benefit of the
bondholders and to delegate and assign thereto, insofar as it may lawfully do
so, its rights, duties, and responsibilities with respect to carrying out and
enforcing the terms and provisions of its residential housing finance plan.
(m) To provide for and authorize the use and disposition of any funds
remaining in the possession of the Authority or its trustees following payment
and retirement of the bonds of a designated series issued under this Act.
(n) To make and execute contracts and other instruments necessary or
convenient to the exercise of any of the powers granted in this Act.
(Source: P.A. 92-142, eff. 7-24-01.)
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