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91_HB2261sam002
SRS91HB2261PMcbam01
1 AMENDMENT TO HOUSE BILL 2261
2 AMENDMENT NO. . Amend House Bill 2261 on page 1,
3 lines 2 and 6, by replacing "Section 4" each time it appears
4 with "Sections 4 and 7"; and
5 on page 4, by inserting below line 22 the following:
6 "(70 ILCS 530/7) (from Ch. 85, par. 7157)
7 Sec. 7. Bonds.
8 (a) The Authority, with the written approval of the
9 Governor, shall have the continuing power to issue bonds,
10 notes, or other evidences of indebtedness in an aggregate
11 amount not to exceed $250,000,000 $100,000,000 for the
12 purpose of developing, constructing, acquiring or improving
13 projects, including those established by business entities
14 locating or expanding property within the territorial
15 jurisdiction of the Authority, for entering into venture
16 capital agreements with businesses locating or expanding
17 within the territorial jurisdiction of the Authority, for
18 acquiring and improving any property necessary and useful in
19 connection therewith and for the purposes of the Employee
20 Ownership Assistance Act. For the purpose of evidencing the
21 obligations of the Authority to repay any money borrowed, the
22 Authority may, pursuant to resolution, from time to time
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1 issue and dispose of its interest bearing revenue bonds,
2 notes or other evidences of indebtedness and may also from
3 time to time issue and dispose of such bonds, notes or other
4 evidences of indebtedness to refund, at maturity, at a
5 redemption date or in advance of either, any bonds, notes or
6 other evidences of indebtedness pursuant to redemption
7 provisions or at any time before maturity. All such bonds,
8 notes or other evidences of indebtedness shall be payable
9 solely and only from the revenues or income to be derived
10 from loans made with respect to projects, from the leasing or
11 sale of the projects or from any other funds available to the
12 Authority for such purposes. The bonds, notes or other
13 evidences of indebtedness may bear such date or dates, may
14 mature at such time or times not exceeding 40 years from
15 their respective dates, may bear interest at such rate or
16 rates not exceeding the maximum rate permitted by "An Act to
17 authorize public corporations to issue bonds, other evidences
18 of indebtedness and tax anticipation warrants subject to
19 interest rate limitations set forth therein", approved May
20 26, 1970, as amended, may be in such form, may carry such
21 registration privileges, may be executed in such manner, may
22 be payable at such place or places, may be made subject to
23 redemption in such manner and upon such terms, with or
24 without premium as is stated on the face thereof, may be
25 authenticated in such manner and may contain such terms and
26 covenants as may be provided by an applicable resolution.
27 (b-1) The holder or holders of any bonds, notes or other
28 evidences of indebtedness issued by the Authority may bring
29 suits at law or proceedings in equity to compel the
30 performance and observance by any corporation or person or by
31 the Authority or any of its agents or employees of any
32 contract or covenant made with the holders of such bonds,
33 notes or other evidences of indebtedness, to compel such
34 corporation, person, the Authority and any of its agents or
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1 employees to perform any duties required to be performed for
2 the benefit of the holders of any such bonds, notes or other
3 evidences of indebtedness by the provision of the resolution
4 authorizing their issuance and to enjoin such corporation,
5 person, the Authority and any of its agents or employees from
6 taking any action in conflict with any such contract or
7 covenant.
8 (b-2) If the Authority fails to pay the principal of or
9 interest on any of the bonds or premium, if any, as the same
10 become due, a civil action to compel payment may be
11 instituted in the appropriate circuit court by the holder or
12 holders of the bonds on which such default of payment exists
13 or by an indenture trustee acting on behalf of such holders.
14 Delivery of a summons and a copy of the complaint to the
15 Chairman of the Board shall constitute sufficient service to
16 give the circuit court jurisdiction of the subject matter of
17 such a suit and jurisdiction over the Authority and its
18 officers named as defendants for the purpose of compelling
19 such payment. Any case, controversy or cause of action
20 concerning the validity of this Act relates to the revenue of
21 the State of Illinois.
22 (c) Notwithstanding the form and tenor of any such
23 bonds, notes or other evidences of indebtedness and in the
24 absence of any express recital on the face thereof that it is
25 non-negotiable, all such bonds, notes and other evidences of
26 indebtedness shall be negotiable instruments. Pending the
27 preparation and execution of any such bonds, notes or other
28 evidences of indebtedness, temporary bonds, notes or
29 evidences of indebtedness may be issued as provided by
30 ordinance.
31 (d) To secure the payment of any or all of such bonds,
32 notes or other evidences of indebtedness, the revenues to be
33 received by the Authority from a lease agreement or loan
34 agreement shall be pledged, and, for the purpose of setting
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1 forth the covenants and undertakings of the Authority in
2 connection with the issuance thereof and the issuance of any
3 additional bonds, notes or other evidences of indebtedness
4 payable from such revenues, income or other funds to be
5 derived from projects, the Authority may execute and deliver
6 a mortgage or trust agreement. A remedy for any breach or
7 default of the terms of any such mortgage or trust agreement
8 by the Authority may be by mandamus proceedings in the
9 appropriate circuit court to compel the performance and
10 compliance therewith, but the trust agreement may prescribe
11 by whom or on whose behalf such action may be instituted.
12 (e) Such bonds or notes shall be secured as provided in
13 the authorizing ordinance which may, notwithstanding any
14 other provision of this Act, include in addition to any other
15 security a specific pledge or assignment of and lien on or
16 security interest in any or all revenues or money of the
17 Authority from whatever source which may by law be used for
18 debt service purposes and a specific pledge or assignment of
19 and lien on or security interest in any funds or accounts
20 established or provided for by ordinance of the Authority
21 authorizing the issuance of such bonds or notes.
22 (f) In the event that the Authority determines that
23 monies of the Authority will not be sufficient for the
24 payment of the principal of and interest on its bonds during
25 the next State fiscal year, the Chairman, as soon as
26 practicable, shall certify to the Governor the amount
27 required by the Authority to enable it to pay such principal
28 of and interest on the bonds. The Governor shall submit the
29 amount so certified to the General Assembly as soon as
30 practicable, but no later than the end of the current State
31 fiscal year. This Section shall not apply to any bonds or
32 notes as to which the Authority shall have determined, in the
33 resolution authorizing the issuance of the bonds or notes,
34 that this Section shall not apply. Whenever the Authority
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1 makes such a determination, that fact shall be plainly stated
2 on the face of the bonds or notes and that fact shall also be
3 reported to the Governor.
4 In the event of a withdrawal of moneys from a reserve
5 fund established with respect to any issue or issues of bonds
6 of the Authority to pay principal or interest on those bonds,
7 the Chairman of the Authority, as soon as practicable, shall
8 certify to the Governor the amount required to restore the
9 reserve fund to the level required in the resolution or
10 indenture securing those bonds. The Governor shall submit the
11 amount so certified to the General Assembly as soon as
12 practicable, but no later than the end of the current State
13 fiscal year.
14 (g) The State of Illinois pledges to and agrees with the
15 holders of the bonds and notes of the Authority issued
16 pursuant to this Section that the State will not limit or
17 alter the rights and powers vested in the Authority by this
18 Act so as to impair the terms of any contract made by the
19 Authority with such holders or in any way impair the rights
20 and remedies of such holders until such bonds and notes,
21 together with interest thereon, with interest on any unpaid
22 installments of interest, and all costs and expenses in
23 connection with any action or proceedings by or on behalf of
24 such holders, are fully met and discharged. In addition, the
25 State pledges to and agrees with the holders of the bonds and
26 notes of the Authority issued pursuant to this Section that
27 the State will not limit or alter the basis on which State
28 funds are to be paid to the Authority as provided in this
29 Act, or the use of such funds, so as to impair the terms of
30 any such contract. The Authority is authorized to include
31 these pledges and agreements of the State in any contract
32 with the holders of bonds or notes issued pursuant to this
33 Section.
34 (h) Not less than 30 days prior to the commitment to
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1 issue bonds, notes, or other evidences of indebtedness for
2 the purpose of developing, constructing, acquiring or
3 improving housing or residential projects, as defined in
4 Section 3, the Authority shall provide notice to the
5 Executive Director of the Illinois Housing Development
6 Authority. Within 30 days after notice is provided, the
7 Illinois Housing Development Authority shall either in
8 writing express interest in financing the project or notify
9 the Authority that it is not interested in providing such
10 financing and the Authority may finance the project or seek
11 alternative financing.
12 (Source: P.A. 86-1024; 86-1313; 87-158; 87-778.)
13 Section 99. Effective date. This Act takes effect upon
14 becoming law.".