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91_HB1274eng HB1274 Engrossed LRB9102393NTsb 1 AN ACT to amend the Illinois Educational Facilities 2 Authority Act. 3 Be it enacted by the People of the State of Illinois, 4 represented in the General Assembly: 5 Section 5. The Illinois Educational Facilities Authority 6 Act is amended by changing Sections 1, 3, 3.03, 3.06, 3.06a, 7 3.07c, 3.08, 5.11, 5.12, 5.16, and 24 and adding Sections 8 3.10, 5.11a, and 5.11b as follows: 9 (110 ILCS 1015/1) (from Ch. 144, par. 1301) 10 Sec. 1. Declaration of purpose. It is declared that for 11 the benefit of the people of the State of Illinois, the 12 conduct and increase of their commerce, the protection and 13 enhancement of their welfare, the development of continued 14 prosperity and the improvement of their health and living 15 conditions it is essential that all the people of the State 16 be given the fullest opportunity to learn and to develop 17 their intellectual and mental capacities and skills; that to 18 achieve these ends it is of the utmost importance that 19 private institutions of higher education within the State be 20 provided with appropriate additional means to assist the 21 people of the State in achieving the required levels of 22 learning and development of their intellectual and mental 23 capacities and skills and that cultural institutions within 24 the State be provided with appropriate additional means to 25 expand the services and resources which they offer for the 26 cultural, intellectual, scientific, educational and artistic 27 enrichment of the people of the State; and that, in execution 28 of the public policy set forth above, it is the purpose of 29 this Act to provide a measure of assistance and an 30 alternative method of financing to enable private 31 institutions of higher education and cultural institutions in HB1274 Engrossed -2- LRB9102393NTsb 1 the State to: (i) finance or to refund or refinance 2 outstanding indebtedness incurred by them for the 3 construction or acquisition of educational facilities and 4 structures or cultural facilities and structures, whether or 5 not constructed or acquired prior to the effective date of 6 this Act, (ii)and toprovide the needed additional 7 facilities and structures for the public benefit and good, 8 and (iii) enable these institutions to obtain working capital 9 through financing or refinancing of their accounts receivable 10 or otherwisein execution of the public policy set forth11above. 12 (Source: P.A. 88-555, eff. 7-27-94.) 13 (110 ILCS 1015/3) (from Ch. 144, par. 1303) 14 Sec. 3. Definitions. In this Act, unless the context 15 otherwise requires, the terms specified in Sections 3.01 16 through 3.103.09have the meanings ascribed to them in those 17 Sections. 18 (Source: P.A. 84-995.) 19 (110 ILCS 1015/3.03) (from Ch. 144, par. 1303.03) 20 Sec. 3.03. Cost. "Cost", as applied to a project 21 financed under this Act, means all costs necessary or 22 incident to the acquisition,andconstruction, and financing 23 of the project, including the costs of refunding or 24 refinancing outstanding indebtedness incurred for the 25 financing of such project, engineering, legal and,26 architectural fees, working capital, and all other necessary 27 and incidental expenses, together with interest on bonds 28 issued to finance the project to a date 6 months subsequent 29 to the estimated date of completion. 30 (Source: P.A. 78-399.) 31 (110 ILCS 1015/3.06) (from Ch. 144, par. 1303.06) HB1274 Engrossed -3- LRB9102393NTsb 1 Sec. 3.06. Educational facility. "Educational facility" 2 may comprise any property located within the State or, if the 3 property is owned, operated, or managed by or for the benefit 4 of a participating institution or an affiliate of the 5 institution, located outside the State, constructed or 6 acquired before or after the effective date of this Act, 7 which is or will be, in whole or in part, suitable for the 8 instruction, feeding, recreation or housing of students, the 9 conducting of research or other work of a private institution 10 of higher education, the use by a private institution of 11 higher education in connection with any educational, research 12 or related or incidental activities then being or to be 13 conducted by it, or any combination of the foregoing, 14 including, without limitation, any such property suitable for 15 use as or in connection with any one or more of the 16 following: an academic facility, administrative facility, 17 agricultural facility, assembly hall, athletic facility, 18 auditorium, boating facility, campus, communication facility, 19 computer facility, continuing education facility, classroom, 20 dining hall, dormitory, exhibition hall, fire fighting 21 facility, fire prevention facility, food service and 22 preparation facility, gymnasium, greenhouse, health care 23 facility, hospital, housing, instructional facility, 24 laboratory, library, maintenance facility, medical facility, 25 museum, offices, parking area, physical education facility, 26 recreational facility, research facility, stadium, storage 27 facility, student union, study facility, theatre or utility. 28 An educational facility shall not include any property used 29 or to be used for sectarian instruction or study or as a 30 place for devotional activities or religious worship nor any 31 property which is used or to be used primarily in connection 32 with any part of the program of a school or department of 33 divinity for any religious denomination. 34 (Source: P.A. 78-399.) HB1274 Engrossed -4- LRB9102393NTsb 1 (110 ILCS 1015/3.06a) (from Ch. 144, par. 1303.06a) 2 Sec. 3.06a. Cultural facility. "Cultural facility" may 3 comprise any property located within the State or, if the 4 property is owned, operated, or managed by or for the benefit 5 of a participating institution or an affiliate of the 6 institution, located outside the State, constructed or 7 acquired before or after the effective date of this Act, 8 which is or will be, in whole or in part, suitable for the 9 particular purposes or needs of a cultural institution, 10 including, without limitation, any such property suitable for 11 use as or in connection with any one or more of the 12 following: an administrative facility, aquarium, assembly 13 hall, auditorium, botanical garden, exhibition hall, gallery, 14 greenhouse, library, museum, scientific laboratory, theater 15 or zoological facility, and shall also include, without 16 limitation, books, works of art or music, animal, plant or 17 aquatic life or other items for display, exhibition or 18 performance. The term "cultural facility" includes buildings 19 on the National Register of Historic Places which are owned 20 or operated by nonprofit entities. A cultural facility shall 21 not include any property used or to be used for sectarian 22 instruction or study or as a place for devotional activities 23 or religious worship nor any property which is used or to be 24 used primarily in connection with any part of the program of 25 a school or department of divinity for any religious 26 denomination. 27 (Source: P.A. 84-995.) 28 (110 ILCS 1015/3.07c) (from Ch. 144, par. 1303.07c) 29 Sec. 3.07c. Participating institution. "Participating 30 institution" means a private institution of higher education, 31 a cultural institution, or a not for profit organization that 32 provides financial or other assistance to or for the benefit 33 of private institutions of higher education or cultural HB1274 Engrossed -5- LRB9102393NTsb 1 institutions, as the case may be, which, pursuant to the 2 provisions of this Act, undertakes a project or the refunding 3 or refinancing of outstanding indebtedness incurred for the 4 financing of a project or undertakes the financing of working 5 capital. 6 (Source: P.A. 88-555, eff. 7-27-94.) 7 (110 ILCS 1015/3.08) (from Ch. 144, par. 1303.08) 8 Sec. 3.08. Property. "Property" means any real, personal 9 or mixed property, or any interest therein, including, 10 without limitation, any real estate, appurtenances, 11 buildings, easements, equipment, furnishings, furniture, 12 improvements, machinery, commodities, rights of way and 13 structures, or any interest therein. 14 (Source: P.A. 76-1810.) 15 (110 ILCS 1015/3.10 new) 16 Sec. 3.10. Working capital. "Working capital" means, 17 with respect to any participating institution, funds to be 18 used in or reserved for the operations of the participating 19 institution. 20 (110 ILCS 1015/5.11) (from Ch. 144, par. 1305.11) 21 Sec. 5.11. Loans for cost of project and related capital 22 needs. To make loans to any participating institution for 23 the cost of a project and other related capital needs in 24 accordance with an agreement between the Authority and the 25 participating institution; provided that no such loan shall26exceed the total cost of the project as determined by the27participating institution and approved by the Authority. 28 (Source: P.A. 84-995.) 29 (110 ILCS 1015/5.11a new) 30 Sec. 5.11a. Working capital bonds. In accordance with HB1274 Engrossed -6- LRB9102393NTsb 1 applicable law, to issue bonds for the purpose of financing 2 working capital for one or more participating institutions, 3 whether through a financing of their accounts receivable or 4 otherwise, either singly or on a combined basis with other 5 participating institutions. 6 (110 ILCS 1015/5.11b new) 7 Sec. 5.11b. Issuance of bonds for bulk purchases. To 8 issue bonds for the purpose of purchasing, leasing, or 9 otherwise acquiring, financing, selling, or transferring for, 10 to, or on behalf of itself and any participating institution, 11 either alone or in partnership with other participating 12 institutions, commodities or other property necessary for the 13 daily operation of the educational facilities or cultural 14 facilities of the participating institutions and for their 15 employees and patrons, including, but not limited to, 16 electricity, petroleum products, fuel oil, and natural gas. 17 (110 ILCS 1015/5.12) (from Ch. 144, par. 1305.12) 18 Sec. 5.12. Loans to refund outstanding obligations or 19 advances. To make loans to a participating institution to 20 refund outstanding obligations or advances issued, made or 21 given by such participating institution for the cost of a 22 project or for working capital. 23 (Source: P.A. 84-995.) 24 (110 ILCS 1015/5.16) (from Ch. 144, par. 1305.16) 25 Sec. 5.16. Bonds for refunding or refinancing 26 outstanding indebtedness. To issue bonds for the purpose of 27 refunding or refinancing the outstanding indebtedness of a 28 participating institution, whether or not outstanding prior 29 to or after the effective date of this Act, provided that 30 such indebtedness was originally incurred for the purpose of 31 constructing or acquiring an educational facility or a HB1274 Engrossed -7- LRB9102393NTsb 1 cultural facility or for the purpose of acquiring working 2 capital. 3 (Source: P.A. 84-995.) 4 (110 ILCS 1015/24) (from Ch. 144, par. 1324) 5 Sec. 24. Purchase of securities; security; title to 6 facilities. 7 (a) Notwithstanding any other provision of this Act to 8 the contrary, the Authority may finance the cost of an 9 educational facility or cultural facility, finance working 10 capital, or finance other capital needs or refund outstanding 11 indebtedness incurred prior to or after the effective date of 12 this Act for the construction or acquisition of an 13 educational facility or cultural facility, for the financing 14 of working capital, or for other related capital needs by 15 issuing its bonds for the purpose of purchasing the 16 securities of a participating institution. Any such 17 securities shall have the same principal amounts, maturities 18 and interest rates as the bonds so being issued, may be 19 secured by a first mortgage lien on the educational facility 20 or cultural facility so being financed or by a first mortgage 21 lien or security interests in other real or personal property 22 acceptable to the Authority and created by a mortgage 23 instrument or security agreement satisfactory to the 24 Authority, and may be insured or guaranteed by others. Any 25 such bonds shall be secured by a pledge of such securities 26 under the trust agreement or indenture creating such bonds 27 and,shall be payable solely out of the payments to be made 28 on such securitiesand shall not exceed in principal amount29the cost of such educational facility or cultural facility as30determined by the participating institution and approved by31the Authority. In other respects, any such bonds shall be 32 subject to the provisions of Section 9 (c) of this Act and 33 the trust agreement or indenture creating such bonds may HB1274 Engrossed -8- LRB9102393NTsb 1 contain such of the provisions set forth in Section 9 (d) 2 hereof as the Authority may deem appropriate. 3 (b) In the event that an educational facility or 4 cultural facility is financed pursuant to this Section, the 5 title to such facility shall remain in the participating 6 institution owning the same, subject to the lien of the 7 mortgage, if any, securing the securities then being 8 purchased, and there shall be no lease of such facility 9 between the Authority and such participating institution. 10 (c) The provisions of Section 8 of this Act shall not 11 apply to any educational facility or cultural facility 12 financed pursuant to this Section, but the Authority shall 13 return the securities, if any, purchased through the issuance 14 of bonds hereunder to the participating institution issuing 15 such securities when such bonds have been fully paid and 16 retired or when adequate provision has been made to pay and 17 retire the same fully and all other conditions of the trust 18 agreement or indenture creating such bonds have been 19 satisfied and the lien thereof has been released in 20 accordance with the provisions thereof. 21 (Source: P.A. 88-555, eff. 7-27-94.) 22 Section 99. Effective date. This Act takes effect upon 23 becoming law.