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91_HB0063ham001
LRB9100535KSgcam01
1 AMENDMENT TO HOUSE BILL 63
2 AMENDMENT NO. . Amend House Bill 63 by replacing the
3 title with the following:
4 "AN ACT in relation to real estate."; and
5 on page 2, by replacing lines 2 and 3 with the following:
6 "Section 900. The State Finance Act is amended by adding
7 Sections 5.490 and 8.36 as follows:
8 (30 ILCS 105/5.490 new)
9 Sec. 5.490. The Airport Land Loan Revolving Fund.
10 (30 ILCS 105/8.36 new)
11 Sec. 8.36. Airport Land Loan Revolving Fund.
12 Appropriations for loans to public airport authorities by the
13 Department of Transportation pursuant to Section 34b of the
14 Illinois Aeronautics Act shall be payable from the Airport
15 Land Loan Revolving Fund.
16 Section 905. The Illinois Aeronautics Act is amended by
17 adding Section 34b as follows:
18 (620 ILCS 5/34b new)
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1 Sec. 34b. Airport land loan revolving fund.
2 (a) The Department may make loans to public airport
3 owners, outside of the area of operation for the Northeastern
4 Illinois Metropolitan Area Planning Commission, for the
5 purchase of any real estate interests as may be needed for
6 essential airport purposes, including future needs. The
7 loans are payable from the Airport Land Loan Revolving Fund,
8 subject to appropriation. All repayments of loans made
9 pursuant to this Section, including interest thereon and
10 penalties, shall be deposited in the Airport Land Loan
11 Revolving Fund. The Treasurer shall deposit all investment
12 earnings arising from balances in the Airport Land Loan
13 Revolving Fund in that Fund.
14 (b) All loans under this Section shall be made by
15 contract between the Department and the public airport owner,
16 which contract shall include the following provisions:
17 (1) The annual rate of interest shall be 2 percent
18 below the Prime Rate charged by banks, as published by
19 the Federal Reserve, in effect at the time the Department
20 approves the loan, but in no event shall less than 2
21 percent be charged.
22 (2) The term of any loan shall not exceed five
23 years, but it may be for less by mutual agreement.
24 (3) Loan payments shall be scheduled in equal
25 amounts for the periods determined under paragraph (4) of
26 this Section. The loan payments shall be calculated so
27 that the loan is completely repaid, with interest, on
28 outstanding balances, by the end of the term determined
29 under paragraph (2) of this Section. There shall be no
30 penalty for early payment ahead of the payment schedule.
31 (4) The period of loan payments shall be annual,
32 unless by mutual agreement a period of less than one year
33 is chosen.
34 (5) The loan shall be secured with the land
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1 purchased, in whole or in part, with the loan and
2 considered as collateral. The public airport owner shall
3 assign a first priority interest in the property to the
4 State.
5 (6) If the loan payment is not made within 15 days
6 after the scheduled date determined under paragraph (3)
7 of this Section, a penalty of 10% of the payment shall be
8 assessed. If 30 days after the scheduled payment date no
9 payment has been received, the loan shall be considered
10 in default.
11 (7) As soon as a loan is considered in default, the
12 Department shall notify the public airport owner and
13 attempt to enter into a renegotiation of the loan payment
14 amounts and schedule determined under paragraph (3) of
15 this Section. In no case shall the term of the loan be
16 extended beyond the initial term determined under
17 paragraph (2) of this Section; nor shall the interest
18 rate be lowered nor any interest be forgiven. If a
19 renegotiation of loan payment amounts and schedule is
20 obtained to the Department's satisfaction within 30 days
21 of notification of default, then the new payment schedule
22 shall replace the one determined by paragraph (3) of this
23 Section and shall be used to measure compliance with the
24 loan for purposes of default. If after 30 days of
25 notification of default the Department has not obtained a
26 renegotiation to its satisfaction, the Department shall
27 declare the loan balance due and payable immediately. If
28 the public airport owner cannot immediately pay the
29 balance of the loan, the Department shall proceed to
30 foreclose.
31 (c) The Airport Land Loan Resolving Fund is created in
32 the State Treasury.
33 Section 999. Effective date. This Act takes effect upon
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1 becoming law.".