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92_HB5159sam001
LRB9211688REpkam01
1 AMENDMENT TO HOUSE BILL 5159
2 AMENDMENT NO. . Amend House Bill 5159 by replacing
3 everything after the enacting clause with the following:
4 "Section 5. The Rural Bond Bank Act is amended by
5 changing Section 3-3 as follows:
6 (30 ILCS 360/3-3) (from Ch. 17, par. 7203-3)
7 Sec. 3-3. Bonds and notes of the Bank.
8 (a) The Bank may issue its bonds and notes from time to
9 time in any principal amounts that it considers necessary to
10 provide funds for any of the purposes authorized by this Act,
11 including:
12 (1) the making of loans;
13 (2) the payment, funding or refunding of the
14 principal of, or interest or redemption premiums on, any
15 bonds issued by the Bank, whether the bonds or interest
16 to be funded or refunded have or have not become due or
17 subject to redemption before maturity in accordance with
18 their terms;
19 (3) the establishment or increase of reserves to
20 secure or to pay bonds or interest on the bonds; and
21 (4) all other costs or expenses of the Bank
22 incident to and necessary or convenient to carry out its
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1 corporate purposes and powers.
2 (b) Except as expressly provided otherwise in this Act
3 or by the Bank, every issue of bonds shall be general
4 obligations of the Bank payable out of any revenues or funds
5 of the Bank, subject only to any agreements with the holders
6 of particular bonds pledging any particular revenues or
7 funds. General obligation bonds may be additionally secured
8 by a pledge of any grants, subsidies, contributions, funds or
9 money from the federal government, the State, any
10 governmental unit, any person or a pledge of any income or
11 revenues, funds or money of the Bank from any source.
12 Not less than 30 days prior to the commitment to issue
13 its bonds, or the making of loans or the purchasing of
14 securities for the purpose of financing residential
15 properties or related improvements, the Bank shall provide
16 notice to the Executive Director of the Illinois Housing
17 Development Authority. Within 30 days after notice is
18 provided, the Illinois Housing Development Authority shall
19 either in writing express interest in financing the
20 residential property or related improvements or notify the
21 Bank that it is not interested in providing such financing
22 and the Bank may finance it or seek alternative financing.
23 (c)(1) The Bank may issue its notes for any
24 corporate purpose of the Bank from time to time, in any
25 principal amounts that it considers necessary, and may
26 renew or pay and retire or refund the notes from the
27 proceeds of bonds or of other notes, or from any other
28 funds or money of the Bank available or to be made
29 available for that purpose in accordance with any
30 contract between the Bank and the noteholders, not
31 otherwise pledged. The notes shall be issued in the same
32 manner as bonds. The notes and the resolution or
33 resolutions authorizing the notes may contain any
34 provisions, conditions or limitations which the bonds or
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1 a bond resolution of the Bank may contain.
2 (2) Unless provided otherwise in any contract
3 between the Bank and the noteholders, and unless the
4 notes have been otherwise paid, funded or refunded, the
5 proceeds of any bonds of the Bank issued, among other
6 things, to fund such outstanding notes, shall be held,
7 used and applied by the Bank to the payment and
8 retirement of the principal of these notes and the
9 interest due and payable on the notes.
10 (3) The Bank may make contracts for the future sale
11 from time to time of the notes under which the purchaser
12 is committed to purchase the notes from time to time on
13 terms and conditions stated in the contracts. The Bank
14 may pay any consideration that it determines proper for
15 these commitments.
16 (d) Whether or not the bonds or notes of the Bank are of
17 such form and character as to be negotiable instruments under
18 Article 8 of the Uniform Commercial Code, the bonds and notes
19 shall be and are made negotiable instruments within the
20 meaning of and for all the purposes of the Uniform Commercial
21 Code, subject only to the provisions of the bonds and notes
22 for registration.
23 (e) Bonds or notes of the Bank shall be authorized by
24 resolution of the Bank and may be issued in one or more
25 series. The resolution or resolutions may provide:
26 (1) the date or dates the bonds or notes will bear;
27 (2) the time or times the bonds or notes will
28 mature;
29 (3) the rate or rates of interest per year the
30 bonds or notes will bear;
31 (4) the denomination or denominations of the bonds
32 or notes;
33 (5) the form of the bonds or notes, either coupon
34 or registered;
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1 (6) the conversion or registration privileges
2 carried by the bonds or notes;
3 (7) the rank or priority of the bonds or notes;
4 (8) the manner of execution of the bonds or notes;
5 (9) the sources, medium and place or places, within
6 or outside this State, of payment; and
7 (10) the terms of redemption of the bonds or notes,
8 with or without premium.
9 (f) Bonds or notes of the Bank may be sold at public or
10 private sale at the time or times and at the price or prices
11 determined by the Bank.
12 (g) Upon approval of the Governor, except as otherwise
13 provided herein, bonds or notes of the Bank may be issued
14 under this Act without obtaining the consent of any other
15 department, division, commission, board, bureau or agency of
16 the State, and without any other proceeding or the happening
17 of any other conditions or things than those proceedings,
18 conditions or things which are specifically required by this
19 Act. Approval of the Governor is not required for issuances
20 of bonds or notes as to which the Bank has determined that
21 subsection (c) of Section 2-6 shall not apply.
22 (h) The Bank may from time to time issue its notes as
23 provided in this Act and pay and retire or fund or refund
24 those notes from proceeds of bonds or of other notes, or from
25 any other funds or money of the Bank available or to be made
26 available for those purposes in accordance with any contract
27 between the Bank and the noteholders. Unless provided
28 otherwise in any contract between the Bank and the holders of
29 notes, and unless the notes have been otherwise paid, funded
30 or refunded, the proceeds of any bonds of the Bank issued,
31 among other things, to fund those outstanding notes, shall be
32 held, used and applied by the Bank to the payments and
33 retirement of the principal of the notes and the interest due
34 and payable on the notes.
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1 (i) The total aggregate original principal amount of
2 all bonds and notes issued by the Bank shall not exceed
3 $245,000,000, excluding bonds and notes issued to refund
4 outstanding bonds and notes $200,000,000. No more than
5 $60,000,000 $50,000,000 in aggregate original principal
6 amount of all bonds and notes issued by the Bank shall be
7 used to purchase local governmental securities issued by
8 governmental units located in a county having a population in
9 excess of 3,000,000 or in a County contiguous with a county
10 having a population in excess of 3,000,000. All bonds and
11 notes issued by the Bank heretofore shall be deemed to be
12 included in said limits.
13 The bonds and notes issued by the Bank may bear interest
14 at such rate or rates not exceeding the maximum rate
15 permitted by the Bond Authorization Act.
16 (j) The State of Illinois pledges to and agrees with the
17 holders of the bonds and notes of the Bank issued pursuant to
18 this Act that the State will not limit or alter the rights
19 and powers vested in the Bank by this Act so as to impair the
20 terms of any contract made by the Bank with those holders or
21 in any way impair the rights and remedies of those holders
22 until those bonds and notes, together with interest thereon,
23 with interest on any unpaid installments of interest, and all
24 costs and expenses in connection with any action or
25 proceedings by or on behalf of such holders, are fully met
26 and discharged. In addition, the State pledges to and agrees
27 with the holders of the bonds and notes of the Bank issued
28 pursuant to this Act that the State will not limit or alter
29 the basis on which State funds are to be paid to the Bank as
30 provided in this Act, or the use of such funds, so as to
31 impair the terms of any such contract. The Bank is authorized
32 to include these pledges and agreements of the State in any
33 contract with the holders of bonds or notes issued pursuant
34 to this Act.
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1 (Source: P.A. 89-211, eff. 8-3-95; 90-709, eff. 8-7-98.)
2 Section 99. Effective date. This Act takes effect upon
3 becoming law.".