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91_HB0063enr HB0063 Enrolled 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 owners 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 Program. 18 (a) The Department may make loans to public airport 19 owners for the purchase of any real estate interests as may 20 be needed for essential airport purposes, including future 21 needs, subject to the following conditions: 22 (1) loans may be made only to public airport owners 23 that are operating an airport as of January 1, 1999; and 24 (2) loans may not be made for airports that provide 25 scheduled commercial air service in counties of greater 26 than 5,000,000 population. The loans are payable from 27 the Airport Land Loan Revolving Fund, subject to 28 appropriation. All repayments of loans made pursuant to HB0063 Enrolled -2- LRB9100535NTsb 1 this Section, including interest thereon and penalties, 2 shall be deposited in the Airport Land Loan Revolving 3 Fund. The Treasurer shall deposit all investment 4 earnings arising from balances in the Airport Land Loan 5 Revolving Fund in that Fund. 6 (b) All loans under this Section shall be made by 7 contract between the Department and the public airport owner, 8 which contract shall include the following provisions: 9 (1) The annual rate of interest shall be 2 percent 10 below the Prime Rate charged by banks, as published by 11 the Federal Reserve Board, in effect at the time the 12 Department approves the loan, but in no event shall less 13 than 2 percent be charged. 14 (2) The term of any loan shall not exceed five 15 years, but it may be for less by mutual agreement. 16 (3) Loan payments shall be scheduled in equal 17 amounts for the periods determined under paragraph (4) of 18 this Section. The loan payments shall be calculated so 19 that the loan is completely repaid, with interest, on 20 outstanding balances, by the end of the term determined 21 under paragraph (2) of this Section. There shall be no 22 penalty for early payment ahead of the payment schedule. 23 (4) The period of loan payments shall be annual, 24 unless by mutual agreement a period of less than one year 25 is chosen. 26 (5) The loan shall be secured with the land 27 purchased, in whole or in part, with the loan and 28 considered as collateral. The public airport owner shall 29 assign a first priority interest in the property to the 30 State. 31 (6) If the loan payment is not made within 15 days 32 after the scheduled date determined under paragraph (3) 33 of this Section, a penalty of 10% of the payment shall be 34 assessed. If 30 days after the scheduled payment date no HB0063 Enrolled -3- LRB9100535NTsb 1 payment has been received, the loan shall be considered 2 in default. 3 (7) As soon as a loan is considered in default, the 4 Department shall notify the public airport owner and 5 attempt to enter into a renegotiation of the loan payment 6 amounts and schedule determined under paragraph (3) of 7 this Section. In no case shall the term of the loan be 8 extended beyond the initial term determined under 9 paragraph (2) of this Section; nor shall the interest 10 rate be lowered nor any interest be forgiven. If a 11 renegotiation of loan payment amounts and schedule is 12 obtained to the Department's satisfaction within 30 days 13 of notification of default, then the new payment schedule 14 shall replace the one determined by paragraph (3) of this 15 Section and shall be used to measure compliance with the 16 loan for purposes of default. If after 30 days of 17 notification of default the Department has not obtained a 18 renegotiation to its satisfaction, the Department shall 19 declare the loan balance due and payable immediately. If 20 the public airport owner cannot immediately pay the 21 balance of the loan, the Department shall proceed to 22 foreclose. 23 (c) The Department may promulgate any rules that it 24 finds appropriate to implement this Airport Land Loan 25 Program. 26 (d) The Airport Land Loan Revolving Fund is created in 27 the State Treasury. 28 Section 99. Effective date. This Act takes effect upon 29 becoming law.