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| [ Introduced ] | [ Engrossed ] | [ Senate Amendment 002 ] |
91_HB2261enr HB2261 Enrolled LRB9104860DHmg 1 AN ACT to amend the Upper Illinois River Valley 2 Development Authority Act by changing Sections 4 and 7. 3 Be it enacted by the People of the State of Illinois, 4 represented in the General Assembly: 5 Section 5. The Upper Illinois River Valley Development 6 Authority Act is amended by changing Sections 4 and 7 as 7 follows: 8 (70 ILCS 530/4) (from Ch. 85, par. 7154) 9 Sec. 4. Establishment. 10 (a) There is hereby created a political subdivision, 11 body politic and municipal corporation named the Upper 12 Illinois River Valley Development Authority. The territorial 13 jurisdiction of the Authority is that geographic area within 14 the boundaries of Grundy, LaSalle, Bureau, Putnam, Kendall, 15 Kane, McHenry, and Marshall counties in the State of Illinois 16 and any navigable waters and air space located therein. 17 (b) The governing and administrative powers of the 18 Authority shall be vested in a body consisting of 201819 members including, as ex officio members, the Director of the 20 Department of Commerce and Community Affairs, or his or her 21 designee, and the Director of the Department of Central 22 Management Services, or his or her designee. The other 181623 members of the Authority shall be designated "public 24 members", 10 of whom shall be appointed by the Governor with 25 the advice and consent of the Senate and 86of whom shall be 26 appointed one each by the county board chairmen of Grundy, 27 LaSalle, Bureau, Putnam, Kendall, Kane, McHenry, and Marshall 28 counties. All public members shall reside within the 29 territorial jurisdiction of this Act. ElevenTenmembers 30 shall constitute a quorum. The public members shall be 31 persons of recognized ability and experience in one or more HB2261 Enrolled -2- LRB9104860DHmg 1 of the following areas: economic development, finance, 2 banking, industrial development, small business management, 3 real estate development, community development, venture 4 finance, organized labor or civic, community or neighborhood 5 organization. The Chairman of the Authority shall be elected 6 by the Board annually from the 86members appointed by the 7 county board chairmen. 8 (c) The terms of all initial members of the Authority 9 shall begin 30 days after the effective date of this Act. Of 10 the 14 public members appointed pursuant to this Act, 4 11 appointed by the Governor shall serve until the third Monday 12 in January, 1992, 4 appointed by the Governor shall serve 13 until the third Monday in January, 1993, one appointed by the 14 Governor shall serve until the third Monday in January, 1994, 15 one appointed by the Governor shall serve until the third 16 Monday in January 1999, the member appointed by the county 17 board chairman of LaSalle County shall serve until the third 18 Monday in January, 1992, the members appointed by the county 19 board chairmen of Grundy County, Bureau County, Putnam 20 County, and Marshall County shall serve until the third 21 Monday in January, 1994, and the member appointed by the 22 county board chairman of Kendall County shall serve until the 23 third Monday in January, 1999. The initial members appointed 24 by the chairmen of the county boards of Kane and McHenry 25 counties shall serve until the third Monday in January, 2003. 26 All successors shall be appointed by the original appointing 27 authority and hold office for a term of 3 years commencing 28 the third Monday in January of the year in which their term 29 commences, except in case of an appointment to fill a 30 vacancy. Vacancies occurring among the public members shall 31 be filled for the remainder of the term. In case of vacancy 32 in a Governor-appointed membership when the Senate is not in 33 session, the Governor may make a temporary appointment until 34 the next meeting of the Senate when a person shall be HB2261 Enrolled -3- LRB9104860DHmg 1 nominated to fill such office, and any person so nominated 2 who is confirmed by the Senate shall hold office during the 3 remainder of the term and until a successor shall be 4 appointed and qualified. Members of the Authority shall not 5 be entitled to compensation for their services as members but 6 shall be entitled to reimbursement for all necessary expenses 7 incurred in connection with the performance of their duties 8 as members. 9 (d) The Governor may remove any public member of the 10 Authority in case of incompetency, neglect of duty, or 11 malfeasance in office. 12 (e) The Board shall appoint an Executive Director who 13 shall have a background in finance, including familiarity 14 with the legal and procedural requirements of issuing bonds, 15 real estate or economic development and administration. The 16 Executive Director shall hold office at the discretion of the 17 Board. The Executive Director shall be the chief 18 administrative and operational officer of the Authority, 19 shall direct and supervise its administrative affairs and 20 general management, shall perform such other duties as may be 21 prescribed from time to time by the members and shall receive 22 compensation fixed by the Authority. The Executive Director 23 shall attend all meetings of the Authority; however, no 24 action of the Authority shall be invalid on account of the 25 absence of the Executive Director from a meeting. The 26 Authority may engage the services of such other agents and 27 employees, including attorneys, appraisers, engineers, 28 accountants, credit analysts and other consultants, as it may 29 deem advisable and may prescribe their duties and fix their 30 compensation. 31 (f) The Board may, by majority vote, nominate up to 4 32 non-voting members for appointment by the Governor. 33 Non-voting members shall be persons of recognized ability and 34 experience in one or more of the following areas: economic HB2261 Enrolled -4- LRB9104860DHmg 1 development, finance, banking, industrial development, small 2 business management, real estate development, community 3 development, venture finance, organized labor or civic, 4 community or neighborhood organization. Non-voting members 5 shall serve at the pleasure of the Board. All non-voting 6 members may attend meetings of the Board and shall be 7 reimbursed as provided in subsection (c). 8 (g) The Board shall create a task force to study and 9 make recommendations to the Board on the economic development 10 of the territory within the jurisdiction of this Act. The 11 members of the task force shall reside within the territorial 12 jurisdiction of this Act, shall serve at the pleasure of the 13 Board and shall be persons of recognized ability and 14 experience in one or more of the following areas: economic 15 development, finance, banking, industrial development, small 16 business management, real estate development, community 17 development, venture finance, organized labor or civic, 18 community or neighborhood organization. The number of 19 members constituting the task force shall be set by the Board 20 and may vary from time to time. The Board may set a specific 21 date by which the task force is to submit its final report 22 and recommendations to the Board. 23 (Source: P.A. 89-211, eff. 8-3-95.) 24 (70 ILCS 530/7) (from Ch. 85, par. 7157) 25 Sec. 7. Bonds. 26 (a) The Authority, with the written approval of the 27 Governor, shall have the continuing power to issue bonds, 28 notes, or other evidences of indebtedness in an aggregate 29 amount not to exceed $250,000,000$100,000,000for the 30 purpose of developing, constructing, acquiring or improving 31 projects, including those established by business entities 32 locating or expanding property within the territorial 33 jurisdiction of the Authority, for entering into venture HB2261 Enrolled -5- LRB9104860DHmg 1 capital agreements with businesses locating or expanding 2 within the territorial jurisdiction of the Authority, for 3 acquiring and improving any property necessary and useful in 4 connection therewith and for the purposes of the Employee 5 Ownership Assistance Act. For the purpose of evidencing the 6 obligations of the Authority to repay any money borrowed, the 7 Authority may, pursuant to resolution, from time to time 8 issue and dispose of its interest bearing revenue bonds, 9 notes or other evidences of indebtedness and may also from 10 time to time issue and dispose of such bonds, notes or other 11 evidences of indebtedness to refund, at maturity, at a 12 redemption date or in advance of either, any bonds, notes or 13 other evidences of indebtedness pursuant to redemption 14 provisions or at any time before maturity. All such bonds, 15 notes or other evidences of indebtedness shall be payable 16 solely and only from the revenues or income to be derived 17 from loans made with respect to projects, from the leasing or 18 sale of the projects or from any other funds available to the 19 Authority for such purposes. The bonds, notes or other 20 evidences of indebtedness may bear such date or dates, may 21 mature at such time or times not exceeding 40 years from 22 their respective dates, may bear interest at such rate or 23 rates not exceeding the maximum rate permitted by "An Act to 24 authorize public corporations to issue bonds, other evidences 25 of indebtedness and tax anticipation warrants subject to 26 interest rate limitations set forth therein", approved May 27 26, 1970, as amended, may be in such form, may carry such 28 registration privileges, may be executed in such manner, may 29 be payable at such place or places, may be made subject to 30 redemption in such manner and upon such terms, with or 31 without premium as is stated on the face thereof, may be 32 authenticated in such manner and may contain such terms and 33 covenants as may be provided by an applicable resolution. 34 (b-1) The holder or holders of any bonds, notes or other HB2261 Enrolled -6- LRB9104860DHmg 1 evidences of indebtedness issued by the Authority may bring 2 suits at law or proceedings in equity to compel the 3 performance and observance by any corporation or person or by 4 the Authority or any of its agents or employees of any 5 contract or covenant made with the holders of such bonds, 6 notes or other evidences of indebtedness, to compel such 7 corporation, person, the Authority and any of its agents or 8 employees to perform any duties required to be performed for 9 the benefit of the holders of any such bonds, notes or other 10 evidences of indebtedness by the provision of the resolution 11 authorizing their issuance and to enjoin such corporation, 12 person, the Authority and any of its agents or employees from 13 taking any action in conflict with any such contract or 14 covenant. 15 (b-2) If the Authority fails to pay the principal of or 16 interest on any of the bonds or premium, if any, as the same 17 become due, a civil action to compel payment may be 18 instituted in the appropriate circuit court by the holder or 19 holders of the bonds on which such default of payment exists 20 or by an indenture trustee acting on behalf of such holders. 21 Delivery of a summons and a copy of the complaint to the 22 Chairman of the Board shall constitute sufficient service to 23 give the circuit court jurisdiction of the subject matter of 24 such a suit and jurisdiction over the Authority and its 25 officers named as defendants for the purpose of compelling 26 such payment. Any case, controversy or cause of action 27 concerning the validity of this Act relates to the revenue of 28 the State of Illinois. 29 (c) Notwithstanding the form and tenor of any such 30 bonds, notes or other evidences of indebtedness and in the 31 absence of any express recital on the face thereof that it is 32 non-negotiable, all such bonds, notes and other evidences of 33 indebtedness shall be negotiable instruments. Pending the 34 preparation and execution of any such bonds, notes or other HB2261 Enrolled -7- LRB9104860DHmg 1 evidences of indebtedness, temporary bonds, notes or 2 evidences of indebtedness may be issued as provided by 3 ordinance. 4 (d) To secure the payment of any or all of such bonds, 5 notes or other evidences of indebtedness, the revenues to be 6 received by the Authority from a lease agreement or loan 7 agreement shall be pledged, and, for the purpose of setting 8 forth the covenants and undertakings of the Authority in 9 connection with the issuance thereof and the issuance of any 10 additional bonds, notes or other evidences of indebtedness 11 payable from such revenues, income or other funds to be 12 derived from projects, the Authority may execute and deliver 13 a mortgage or trust agreement. A remedy for any breach or 14 default of the terms of any such mortgage or trust agreement 15 by the Authority may be by mandamus proceedings in the 16 appropriate circuit court to compel the performance and 17 compliance therewith, but the trust agreement may prescribe 18 by whom or on whose behalf such action may be instituted. 19 (e) Such bonds or notes shall be secured as provided in 20 the authorizing ordinance which may, notwithstanding any 21 other provision of this Act, include in addition to any other 22 security a specific pledge or assignment of and lien on or 23 security interest in any or all revenues or money of the 24 Authority from whatever source which may by law be used for 25 debt service purposes and a specific pledge or assignment of 26 and lien on or security interest in any funds or accounts 27 established or provided for by ordinance of the Authority 28 authorizing the issuance of such bonds or notes. 29 (f) In the event that the Authority determines that 30 monies of the Authority will not be sufficient for the 31 payment of the principal of and interest on its bonds during 32 the next State fiscal year, the Chairman, as soon as 33 practicable, shall certify to the Governor the amount 34 required by the Authority to enable it to pay such principal HB2261 Enrolled -8- LRB9104860DHmg 1 of and interest on the bonds. The Governor shall submit the 2 amount so certified to the General Assembly as soon as 3 practicable, but no later than the end of the current State 4 fiscal year. This Section shall not apply to any bonds or 5 notes as to which the Authority shall have determined, in the 6 resolution authorizing the issuance of the bonds or notes, 7 that this Section shall not apply. Whenever the Authority 8 makes such a determination, that fact shall be plainly stated 9 on the face of the bonds or notes and that fact shall also be 10 reported to the Governor. 11 In the event of a withdrawal of moneys from a reserve 12 fund established with respect to any issue or issues of bonds 13 of the Authority to pay principal or interest on those bonds, 14 the Chairman of the Authority, as soon as practicable, shall 15 certify to the Governor the amount required to restore the 16 reserve fund to the level required in the resolution or 17 indenture securing those bonds. The Governor shall submit the 18 amount so certified to the General Assembly as soon as 19 practicable, but no later than the end of the current State 20 fiscal year. 21 (g) The State of Illinois pledges to and agrees with the 22 holders of the bonds and notes of the Authority issued 23 pursuant to this Section that the State will not limit or 24 alter the rights and powers vested in the Authority by this 25 Act so as to impair the terms of any contract made by the 26 Authority with such holders or in any way impair the rights 27 and remedies of such holders until such bonds and notes, 28 together with interest thereon, with interest on any unpaid 29 installments of interest, and all costs and expenses in 30 connection with any action or proceedings by or on behalf of 31 such holders, are fully met and discharged. In addition, the 32 State pledges to and agrees with the holders of the bonds and 33 notes of the Authority issued pursuant to this Section that 34 the State will not limit or alter the basis on which State HB2261 Enrolled -9- LRB9104860DHmg 1 funds are to be paid to the Authority as provided in this 2 Act, or the use of such funds, so as to impair the terms of 3 any such contract. The Authority is authorized to include 4 these pledges and agreements of the State in any contract 5 with the holders of bonds or notes issued pursuant to this 6 Section. 7 (h) Not less than 30 days prior to the commitment to 8 issue bonds, notes, or other evidences of indebtedness for 9 the purpose of developing, constructing, acquiring or 10 improving housing or residential projects, as defined in 11 Section 3, the Authority shall provide notice to the 12 Executive Director of the Illinois Housing Development 13 Authority. Within 30 days after notice is provided, the 14 Illinois Housing Development Authority shall either in 15 writing express interest in financing the project or notify 16 the Authority that it is not interested in providing such 17 financing and the Authority may finance the project or seek 18 alternative financing. 19 (Source: P.A. 86-1024; 86-1313; 87-158; 87-778.) 20 Section 99. Effective date. This Act takes effect upon 21 becoming law.