(30 ILCS 305/0.01) (from Ch. 17, par. 6600)
Sec. 0.01.
Short title.
This Act may be cited as the Bond Authorization Act.
(Source: P.A. 86-4.)
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(30 ILCS 305/1) (from Ch. 17, par. 6601)
Sec. 1.
(a) As used in this Act "public corporations" mean any body corporate
organized by or pursuant to the laws of this State to carry out a public
governmental or proprietary function, including, without limitation of the
foregoing, the state, any school district, park district, city, village,
incorporated town, county, drainage or any other type of district,
commission, authority, university, public community college or any combination thereof,
acting through the corporate authorities thereof.
(b) "Bonds" or "other evidences of indebtedness" mean any instrument
providing for the payment of money executed by or on behalf of a public
corporation or which the public corporation has assumed or agreed to pay,
including, without limitation of the foregoing, bonds, notes, contracts,
leases, certificates and tax anticipation warrants.
(Source: P.A. 82-622.)
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(30 ILCS 305/2) (from Ch. 17, par. 6602)
Sec. 2.
Notwithstanding the provisions of any other law to the
contrary, any public corporation may agree or contract to pay interest
on bonds or other evidences of indebtedness and tax anticipation
warrants issued pursuant to law at an interest rate or rates not exceeding
the greater of 9% per annum or 125% of the rate for the most recent date
shown in the 20 G.O. Bonds Index of average municipal bond yields as published
in the most recent edition of The Bond Buyer, published in New York, New
York (or any successor publication or index, or if such publication or
index is no longer published, then any index of long term municipal
tax-exempt bond yields then selected by a governing body), at the time
the contract is made for the sale of the bonds or other
evidences of indebtedness or tax anticipation warrants. A contract is
made with respect to notes or bonds when the public corporation is
contractually
obligated to issue notes, bonds, or other evidences of indebtedness or tax
anticipation warrants to a purchaser who is contractually obligated to
purchase them; and, with respect to bonds or notes bearing interest at a
variable rate or subject to payment upon periodic demand or put or
otherwise subject to remarketing by or for the public corporation, a
contract is made on each date of change in the variable rate or such
demand, put or remarketing. When bonds or other evidences of indebtedness
or tax anticipation warrants are to be issued by a public corporation on a
basis which is not tax-exempt under Section 103 of the Internal Revenue
Code of 1986, as now or hereafter amended, or successor code or provision,
then the interest rate or rates payable thereon shall be determined by
substituting 13 1/2% for 9% and 200% for 125% in the first sentence of this Section.
These amendatory Acts of 1971, 1972, 1973, 1975, 1979, 1982, 1983,
1987 and 1988 are not limits upon any home rule unit.
This Act is not a limit with respect to any bonds,
notes and other evidences of obligation for borrowed money issued by any
public corporation and purchased or otherwise acquired by the Illinois Finance
Authority, pursuant to
the Illinois Finance Authority Act, and such bonds,
notes and
other evidences of obligation for borrowed money may bear interest at any
rate or rates, and such rate or rates may be established by an index or
formula which may be implemented or established by persons appointed or
retained therefor, notwithstanding any other provision of law to the contrary.
(Source: P.A. 93-205, eff. 1-1-04.)
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(30 ILCS 305/3) (from Ch. 17, par. 6603)
Sec. 3.
The provisions of this Act shall be cumulative and in addition to any
powers or authority granted in any other laws of the State, and shall not
be deemed to have repealed any provisions of existing laws.
(Source: P.A. 76-1971.)
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(30 ILCS 305/5) (from Ch. 17, par. 6605)
Sec. 5.
Industrial projects financed pursuant to "The Industrial
Project Revenue Bond Act" under the "Illinois Municipal Code", approved
May 29, 1961, as now or hereafter amended, and the "Industrial Building
Revenue Bond Act", approved July 26, 1967, as now or hereafter amended,
shall not be subject to the provisions of this Act. Obligations issued
by the Illinois Housing Development Authority pursuant to any provision of
the Illinois Housing Development Act, as now or hereafter amended, shall be
subject to the provisions of this Act only to the extent expressly set
forth in Section 16 of the Illinois Housing Development Act.
(Source: P.A. 86-1017.)
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(30 ILCS 305/6) (from Ch. 17, par. 6606)
Sec. 6.
Obligations issued to finance redevelopment projects pursuant to
the Tax Increment Allocation Redevelopment Act shall not be subject to the
provisions of this Act.
(Source: P.A. 84-1418.)
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(30 ILCS 305/7) (from Ch. 17, par. 6607)
Sec. 7.
Interest rate swaps.
For purposes of this Section, terms are as defined in the Local Government
Debt
Reform
Act.
With respect to all or part of any currently
outstanding or proposed issue
of its bonds, a governmental unit whose aggregate
principal amount of
bonds outstanding or proposed exceeds $10,000,000 may, without prior
appropriation, enter
into agreements or contracts with any necessary or appropriate person (the
counter party) that
will have the benefit of providing to the governmental unit: (i) an interest
rate basis, cash flow basis, or other basis different from that provided in
the bonds for the payment of interest
or (ii) with respect to a future delivery of bonds, one or more of a
guaranteed
interest rate, interest rate basis, cash flow basis, or purchase price.
Such agreements or contracts
include without limitation agreements or contracts commonly known as interest
rate swap, collar, cap, or derivative agreements, forward
payment conversion agreements,
interest rate locks, forward bond purchase agreements, bond warrant
agreements,
or bond purchase option agreements
and also include agreements or
contracts providing for
payments based on levels of or
changes in interest rates, including a change in an interest rate index, to
exchange cash flows or a series of payments,
or to hedge payment, rate spread, or similar exposure
(such agreements or contracts, collectively, being "swaps"). Without
limiting
other permitted terms which may be included in swaps, the
following provisions may or, if hereinafter so required, shall apply:
(a) Payments made pursuant to a swap (the swap payments) which are to be
made
by
the governmental unit may be paid by such governmental unit, without
limitation,
from
proceeds of the bonds, including bonds for future delivery, identified to such
swaps, or from bonds issued to refund such bonds, or from whatever enterprise
revenues or revenue source, including taxes pledged or to be pledged to the
payment of such bonds, which enterprise revenues or revenue source may be
increased to make such swap payments, and swap payments to be received by the
governmental unit, which may be periodic, up-front, or on termination, shall be
used solely for and limited to any lawful corporate purpose of the governmental
unit.
(b) Up-front or periodic net swap payments to be paid by the
governmental
unit under
the swaps (the standard swap payments) shall be treated as interest for the purpose
of calculating any interest rate limit applicable to the bonds, provided,
however, that for purposes of making such standard swap payments
only (and not with respect to the bonds so issued or to be issued), the bonds
shall be deemed not exempt from income taxation under the Internal Revenue Code
for purposes of State law, as contained in this Bond Authorization Act,
relating
to the permissible rate of interest to be borne thereon, and, provided further,
that if payments of any standard swap payments are to be made by the
governmental unit and the counterparty on different dates, the net effect of
such payments for purposes of such interest rate limitation shall be determined
using a true interest cost (yield) calculation.
(c) Any
such
agreement or contract and the swap payments to be made thereunder shall not
be taken into account with respect to any
debt limit applicable to the governmental unit.
(d) Swap payments upon the termination of any swap may be paid to a
counterparty
upon any terms customary for swaps, including, without limitation, provisions
using market quotations available for giving the net benefit of the swap at the
time of termination to the persons entitled thereto (viz., the governmental
unit
or the counterparty) or reasonable fair market value determinations of the
value
at termination made in good faith by either such persons.
(e) The term of the swap shall not exceed the term of any currently
outstanding
bonds identified to such swap or, for bonds to be delivered, not greater than
5
years plus the term of years proposed for such bonds to be delivered, but in no
event longer than 40 years, plus, in each case, any time period necessary to
cure any defaults under such swap.
(f) The choice of law for enforcement of swaps as to any counterparty may be
made for any state of these United States, but the law which shall apply to the
obligations of the governmental unit shall be the law of the State of Illinois,
and jurisdiction to enforce the swaps as against the governmental units shall
be
exclusively in the courts of the State of Illinois or in the applicable federal
court having jurisdiction and located within the State of Illinois.
(g) Governmental units, in entering into swaps, may not waive any sovereign
immunities from time to time available under the laws of the State of Illinois
as to jurisdiction, procedures, and remedies, but such swaps shall otherwise be
fully enforceable as valid and binding contracts as and to the extent provided
herein and by other applicable law.
(Source: P.A. 93-9, eff. 6-3-03.)
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