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91_HB0063eng HB0063 Engrossed LRB9100535NTsb 1 AN ACT in relation to real estate. 2 Be it enacted by the People of the State of Illinois, 3 represented in the General Assembly: 4 Section 5. The State Finance Act is amended by adding 5 Sections 5.490 and 8.36 as follows: 6 (30 ILCS 105/5.490 new) 7 Sec. 5.490. The Airport Land Loan Revolving Fund. 8 (30 ILCS 105/8.36 new) 9 Sec. 8.36. Airport Land Loan Revolving Fund. 10 Appropriations for loans to public airport authorities by the 11 Department of Transportation pursuant to Section 34b of the 12 Illinois Aeronautics Act shall be payable from the Airport 13 Land Loan Revolving Fund. 14 Section 10. The Illinois Aeronautics Act is amended by 15 adding Section 34b as follows: 16 (620 ILCS 5/34b new) 17 Sec. 34b. Airport Land Loan Revolving Fund. 18 (a) The Department may make loans to public airport 19 owners, outside of the counties of Lake, Cook, Will, Kane, 20 and DuPage, for the purchase of any real estate interests as 21 may be needed for essential airport purposes, including 22 future needs. The loans are payable from the Airport Land 23 Loan Revolving Fund, subject to appropriation. All 24 repayments of loans made pursuant to this Section, including 25 interest thereon and penalties, shall be deposited in the 26 Airport Land Loan Revolving Fund. The Treasurer shall 27 deposit all investment earnings arising from balances in the 28 Airport Land Loan Revolving Fund in that Fund. HB0063 Engrossed -2- LRB9100535NTsb 1 (b) All loans under this Section shall be made by 2 contract between the Department and the public airport owner, 3 which contract shall include the following provisions: 4 (1) The annual rate of interest shall be 2 percent 5 below the Prime Rate charged by banks, as published by 6 the Federal Reserve, in effect at the time the Department 7 approves the loan, but in no event shall less than 2 8 percent be charged. 9 (2) The term of any loan shall not exceed five 10 years, but it may be for less by mutual agreement. 11 (3) Loan payments shall be scheduled in equal 12 amounts for the periods determined under paragraph (4) of 13 this Section. The loan payments shall be calculated so 14 that the loan is completely repaid, with interest, on 15 outstanding balances, by the end of the term determined 16 under paragraph (2) of this Section. There shall be no 17 penalty for early payment ahead of the payment schedule. 18 (4) The period of loan payments shall be annual, 19 unless by mutual agreement a period of less than one year 20 is chosen. 21 (5) The loan shall be secured with the land 22 purchased, in whole or in part, with the loan and 23 considered as collateral. The public airport owner shall 24 assign a first priority interest in the property to the 25 State. 26 (6) If the loan payment is not made within 15 days 27 after the scheduled date determined under paragraph (3) 28 of this Section, a penalty of 10% of the payment shall be 29 assessed. If 30 days after the scheduled payment date no 30 payment has been received, the loan shall be considered 31 in default. 32 (7) As soon as a loan is considered in default, the 33 Department shall notify the public airport owner and 34 attempt to enter into a renegotiation of the loan payment HB0063 Engrossed -3- LRB9100535NTsb 1 amounts and schedule determined under paragraph (3) of 2 this Section. In no case shall the term of the loan be 3 extended beyond the initial term determined under 4 paragraph (2) of this Section; nor shall the interest 5 rate be lowered nor any interest be forgiven. If a 6 renegotiation of loan payment amounts and schedule is 7 obtained to the Department's satisfaction within 30 days 8 of notification of default, then the new payment schedule 9 shall replace the one determined by paragraph (3) of this 10 Section and shall be used to measure compliance with the 11 loan for purposes of default. If after 30 days of 12 notification of default the Department has not obtained a 13 renegotiation to its satisfaction, the Department shall 14 declare the loan balance due and payable immediately. If 15 the public airport owner cannot immediately pay the 16 balance of the loan, the Department shall proceed to 17 foreclose. 18 (c) The Airport Land Loan Revolving Fund is created in 19 the State Treasury. 20 Section 99. Effective date. This Act takes effect upon 21 becoming law.