Sen. Jennifer Bertino-Tarrant

Filed: 4/13/2018

 

 


 

 


 
10000SB0043sam001LRB100 04951 RJF 38462 a

1
AMENDMENT TO SENATE BILL 43

2    AMENDMENT NO. ______. Amend Senate Bill 43 by replacing
3everything after the enacting clause with the following:
 
4    "Section 5. The Illinois Finance Authority Act is amended
5by changing Sections 801-5, 801-10, 801-40, 805-5, 805-15,
6825-65, 830-30, 830-35, 830-55, and 845-75 as follows:
 
7    (20 ILCS 3501/801-5)
8    Sec. 801-5. Findings and declaration of policy. The General
9Assembly hereby finds, determines and declares:
10    (a) that there are a number of existing State authorities
11authorized to issue bonds to alleviate the conditions and
12promote the objectives set forth below; and to provide a
13stronger, better coordinated development effort, it is
14determined to be in the interest of promoting the health,
15safety, morals and general welfare of all the people of the
16State to consolidate certain of such existing authorities into

 

 

10000SB0043sam001- 2 -LRB100 04951 RJF 38462 a

1one finance authority;
2    (b) that involuntary unemployment affects the health,
3safety, morals and general welfare of the people of the State
4of Illinois;
5    (c) that the economic burdens resulting from involuntary
6unemployment fall in part upon the State in the form of public
7assistance and reduced tax revenues, and in the event the
8unemployed worker and his family migrate elsewhere to find
9work, may also fall upon the municipalities and other taxing
10districts within the areas of unemployment in the form of
11reduced tax revenues, thereby endangering their financial
12ability to support necessary governmental services for their
13remaining inhabitants;
14    (d) that a vigorous growing economy is the basic source of
15job opportunities;
16    (e) that protection against involuntary unemployment, its
17economic burdens and the spread of economic stagnation can best
18be provided by promoting, attracting, stimulating and
19revitalizing industry, manufacturing and commerce in the
20State;
21    (f) that the State has a responsibility to help create a
22favorable climate for new and improved job opportunities for
23its citizens by encouraging the development of commercial
24businesses and industrial and manufacturing plants within the
25State;
26    (g) that increased availability of funds for construction

 

 

10000SB0043sam001- 3 -LRB100 04951 RJF 38462 a

1of new facilities and the expansion and improvement of existing
2facilities for industrial, commercial and manufacturing
3facilities will provide for new and continued employment in the
4construction industry and alleviate the burden of
5unemployment;
6    (h) that in the absence of direct governmental subsidies
7the unaided operations of private enterprise do not provide
8sufficient resources for residential construction,
9rehabilitation, rental or purchase, and that support from
10housing related commercial facilities is one means of
11stimulating residential construction, rehabilitation, rental
12and purchase;
13    (i) that it is in the public interest and the policy of
14this State to foster and promote by all reasonable means the
15provision of adequate capital markets and facilities for
16borrowing money by units of local government, and for the
17financing of their respective public improvements and other
18governmental purposes within the State from proceeds of bonds
19or notes issued by those governmental units; and to assist
20local governmental units in fulfilling their needs for those
21purposes by use of creation of indebtedness;
22    (j) that it is in the public interest and the policy of
23this State to the extent possible, to reduce the costs of
24indebtedness to taxpayers and residents of this State and to
25encourage continued investor interest in the purchase of bonds
26or notes of governmental units as sound and preferred

 

 

10000SB0043sam001- 4 -LRB100 04951 RJF 38462 a

1securities for investment; and to encourage governmental units
2to continue their independent undertakings of public
3improvements and other governmental purposes and the financing
4thereof, and to assist them in those activities by making funds
5available at reduced interest costs for orderly financing of
6those purposes, especially during periods of restricted credit
7or money supply, and particularly for those governmental units
8not otherwise able to borrow for those purposes;
9    (k) that in this State the following conditions exist: (i)
10an inadequate supply of funds at interest rates sufficiently
11low to enable persons engaged in agriculture in this State to
12pursue agricultural operations at present levels; (ii) that
13such inability to pursue agricultural operations lessens the
14supply of agricultural commodities available to fulfill the
15needs of the citizens of this State; (iii) that such inability
16to continue operations decreases available employment in the
17agricultural sector of the State and results in unemployment
18and its attendant problems; (iv) that such conditions prevent
19the acquisition of an adequate capital stock of farm equipment
20and machinery, much of which is manufactured in this State,
21therefore impairing the productivity of agricultural land and,
22further, causing unemployment or lack of appropriate increase
23in employment in such manufacturing; (v) that such conditions
24are conducive to consolidation of acreage of agricultural land
25with fewer individuals living and farming on the traditional
26family farm; (vi) that these conditions result in a loss in

 

 

10000SB0043sam001- 5 -LRB100 04951 RJF 38462 a

1population, unemployment and movement of persons from rural to
2urban areas accompanied by added costs to communities for
3creation of new public facilities and services; (vii) that
4there have been recurrent shortages of funds for agricultural
5purposes from private market sources at reasonable rates of
6interest; (viii) that these shortages have made the sale and
7purchase of agricultural land to family farmers a virtual
8impossibility in many parts of the State; (ix) that the
9ordinary operations of private enterprise have not in the past
10corrected these conditions; and (x) that a stable supply of
11adequate funds for agricultural financing is required to
12encourage family farmers in an orderly and sustained manner and
13to reduce the problems described above;
14    (l) that for the benefit of the people of the State of
15Illinois, the conduct and increase of their commerce, the
16protection and enhancement of their welfare, the development of
17continued prosperity and the improvement of their health and
18living conditions it is essential that all the people of the
19State be given the fullest opportunity to learn and to develop
20their intellectual and mental capacities and skills; that to
21achieve these ends it is of the utmost importance that private
22institutions of higher education within the State be provided
23with appropriate additional means to assist the people of the
24State in achieving the required levels of learning and
25development of their intellectual and mental capacities and
26skills and that cultural institutions within the State be

 

 

10000SB0043sam001- 6 -LRB100 04951 RJF 38462 a

1provided with appropriate additional means to expand the
2services and resources which they offer for the cultural,
3intellectual, scientific, educational and artistic enrichment
4of the people of the State;
5    (m) that in order to foster civic and neighborhood pride,
6citizens require access to facilities such as educational
7institutions, recreation, parks and open spaces, entertainment
8and sports, a reliable transportation network, cultural
9facilities and theaters and other facilities as authorized by
10this Act, and that it is in the best interests of the State to
11lower the costs of all such facilities by providing financing
12through the State;
13    (n) that to preserve and protect the health of the citizens
14of the State, and lower the costs of health care, that
15financing for health facilities should be provided through the
16State; and it is hereby declared to be the policy of the State,
17in the interest of promoting the health, safety, morals and
18general welfare of all the people of the State, to address the
19conditions noted above, to increase job opportunities and to
20retain existing jobs in the State, by making available through
21the Illinois Finance Authority, hereinafter created, funds for
22the development, improvement and creation of industrial,
23housing, local government, educational, health, public purpose
24and other projects; to issue its bonds and notes to make funds
25at reduced rates and on more favorable terms for borrowing by
26local governmental units through the purchase of the bonds or

 

 

10000SB0043sam001- 7 -LRB100 04951 RJF 38462 a

1notes of the governmental units; and to make or acquire loans
2for the acquisition and development of agricultural
3facilities; to provide financing for private institutions of
4higher education, cultural institutions, health facilities and
5other facilities and projects as authorized by this Act; and to
6grant broad powers to the Illinois Finance Authority to
7accomplish and to carry out these policies of the State which
8are in the public interest of the State and of its taxpayers
9and residents; and
10    (o) that providing financing alternatives for projects
11that are located outside the State that are owned, operated,
12leased, managed by, or otherwise affiliated with, institutions
13located within the State would promote the economy of the State
14for the benefit of the health, welfare, safety, trade,
15commerce, industry, and economy of the people of the State by
16creating employment opportunities in the State and lowering the
17cost of accessing healthcare, private education, or cultural
18institutions in the State by reducing the cost of financing or
19operating those projects; and .
20    (p) that the realization of the objectives of the Authority
21identified in this Act including, without limitation, those
22designed (1) to assist and enable veterans, minorities, women
23and disabled individuals to own and operate small businesses;
24(2) to assist in the delivery of agricultural assistance; and
25(3) to aid, assist, and encourage economic growth and
26development within this State, will be enhanced by empowering

 

 

10000SB0043sam001- 8 -LRB100 04951 RJF 38462 a

1the Authority to purchase loan participations from
2participating lenders.
3(Source: P.A. 96-1021, eff. 7-12-10.)
 
4    (20 ILCS 3501/801-10)
5    Sec. 801-10. Definitions. The following terms, whenever
6used or referred to in this Act, shall have the following
7meanings, except in such instances where the context may
8clearly indicate otherwise:
9    (a) The term "Authority" means the Illinois Finance
10Authority created by this Act.
11    (b) The term "project" means an industrial project,
12conservation project, housing project, public purpose project,
13higher education project, health facility project, cultural
14institution project, municipal bond program project, PACE
15Project, agricultural facility or agribusiness, and "project"
16may include any combination of one or more of the foregoing
17undertaken jointly by any person with one or more other
18persons.
19    (c) The term "public purpose project" means any project or
20facility, including without limitation land, buildings,
21structures, machinery, equipment and all other real and
22personal property, which is authorized or required by law to be
23acquired, constructed, improved, rehabilitated, reconstructed,
24replaced or maintained by any unit of government or any other
25lawful public purpose which is authorized or required by law to

 

 

10000SB0043sam001- 9 -LRB100 04951 RJF 38462 a

1be undertaken by any unit of government.
2    (d) The term "industrial project" means the acquisition,
3construction, refurbishment, creation, development or
4redevelopment of any facility, equipment, machinery, real
5property or personal property for use by any instrumentality of
6the State or its political subdivisions, for use by any person
7or institution, public or private, for profit or not for
8profit, or for use in any trade or business, including, but not
9limited to, any industrial, manufacturing or commercial
10enterprise that is located within or outside the State,
11provided that, with respect to a project involving property
12located outside the State, the property must be owned,
13operated, leased or managed by an entity located within the
14State or an entity affiliated with an entity located within the
15State, and which is (1) a capital project, including, but not
16limited to: (i) land and any rights therein, one or more
17buildings, structures or other improvements, machinery and
18equipment, whether now existing or hereafter acquired, and
19whether or not located on the same site or sites; (ii) all
20appurtenances and facilities incidental to the foregoing,
21including, but not limited to, utilities, access roads,
22railroad sidings, track, docking and similar facilities,
23parking facilities, dockage, wharfage, railroad roadbed,
24track, trestle, depot, terminal, switching and signaling or
25related equipment, site preparation and landscaping; and (iii)
26all non-capital costs and expenses relating thereto or (2) any

 

 

10000SB0043sam001- 10 -LRB100 04951 RJF 38462 a

1addition to, renovation, rehabilitation or improvement of a
2capital project or (3) any activity or undertaking within or
3outside the State, provided that, with respect to a project
4involving property located outside the State, the property must
5be owned, operated, leased or managed by an entity located
6within the State or an entity affiliated with an entity located
7within the State, which the Authority determines will aid,
8assist or encourage economic growth, development or
9redevelopment within the State or any area thereof, will
10promote the expansion, retention or diversification of
11employment opportunities within the State or any area thereof
12or will aid in stabilizing or developing any industry or
13economic sector of the State economy. The term "industrial
14project" also means the production of motion pictures.
15    (e) The term "bond" or "bonds" shall include bonds, notes
16(including bond, grant or revenue anticipation notes),
17certificates and/or other evidences of indebtedness
18representing an obligation to pay money, including refunding
19bonds.
20    (f) The terms "lease agreement" and "loan agreement" shall
21mean: (i) an agreement whereby a project acquired by the
22Authority by purchase, gift or lease is leased to any person,
23corporation or unit of local government which will use or cause
24the project to be used as a project as heretofore defined upon
25terms providing for lease rental payments at least sufficient
26to pay when due all principal of, interest and premium, if any,

 

 

10000SB0043sam001- 11 -LRB100 04951 RJF 38462 a

1on any bonds of the Authority issued with respect to such
2project, providing for the maintenance, insuring and operation
3of the project on terms satisfactory to the Authority,
4providing for disposition of the project upon termination of
5the lease term, including purchase options or abandonment of
6the premises, and such other terms as may be deemed desirable
7by the Authority, or (ii) any agreement pursuant to which the
8Authority agrees to loan the proceeds of its bonds issued with
9respect to a project or other funds of the Authority to any
10person which will use or cause the project to be used as a
11project as heretofore defined upon terms providing for loan
12repayment installments at least sufficient to pay when due all
13principal of, interest and premium, if any, on any bonds of the
14Authority, if any, issued with respect to the project, and
15providing for maintenance, insurance and other matters as may
16be deemed desirable by the Authority.
17    (g) The term "financial aid" means the expenditure of
18Authority funds or funds provided by the Authority through the
19issuance of its bonds, notes or other evidences of indebtedness
20or from other sources for the development, construction,
21acquisition or improvement of a project.
22    (h) The term "person" means an individual, corporation,
23unit of government, business trust, estate, trust, partnership
24or association, 2 or more persons having a joint or common
25interest, or any other legal entity.
26    (i) The term "unit of government" means the federal

 

 

10000SB0043sam001- 12 -LRB100 04951 RJF 38462 a

1government, the State or unit of local government, a school
2district, or any agency or instrumentality, office, officer,
3department, division, bureau, commission, college or
4university thereof.
5    (j) The term "health facility" means: (a) any public or
6private institution, place, building, or agency required to be
7licensed under the Hospital Licensing Act; (b) any public or
8private institution, place, building, or agency required to be
9licensed under the Nursing Home Care Act, the Specialized
10Mental Health Rehabilitation Act of 2013, the ID/DD Community
11Care Act, or the MC/DD Act; (c) any public or licensed private
12hospital as defined in the Mental Health and Developmental
13Disabilities Code; (d) any such facility exempted from such
14licensure when the Director of Public Health attests that such
15exempted facility meets the statutory definition of a facility
16subject to licensure; (e) any other public or private health
17service institution, place, building, or agency which the
18Director of Public Health attests is subject to certification
19by the Secretary, U.S. Department of Health and Human Services
20under the Social Security Act, as now or hereafter amended, or
21which the Director of Public Health attests is subject to
22standard-setting by a recognized public or voluntary
23accrediting or standard-setting agency; (f) any public or
24private institution, place, building or agency engaged in
25providing one or more supporting services to a health facility;
26(g) any public or private institution, place, building or

 

 

10000SB0043sam001- 13 -LRB100 04951 RJF 38462 a

1agency engaged in providing training in the healing arts,
2including, but not limited to, schools of medicine, dentistry,
3osteopathy, optometry, podiatry, pharmacy or nursing, schools
4for the training of x-ray, laboratory or other health care
5technicians and schools for the training of para-professionals
6in the health care field; (h) any public or private congregate,
7life or extended care or elderly housing facility or any public
8or private home for the aged or infirm, including, without
9limitation, any Facility as defined in the Life Care Facilities
10Act; (i) any public or private mental, emotional or physical
11rehabilitation facility or any public or private educational,
12counseling, or rehabilitation facility or home, for those
13persons with a developmental disability, those who are
14physically ill or disabled, the emotionally disturbed, those
15persons with a mental illness or persons with learning or
16similar disabilities or problems; (j) any public or private
17alcohol, drug or substance abuse diagnosis, counseling
18treatment or rehabilitation facility, (k) any public or private
19institution, place, building or agency licensed by the
20Department of Children and Family Services or which is not so
21licensed but which the Director of Children and Family Services
22attests provides child care, child welfare or other services of
23the type provided by facilities subject to such licensure; (l)
24any public or private adoption agency or facility; and (m) any
25public or private blood bank or blood center. "Health facility"
26also means a public or private structure or structures suitable

 

 

10000SB0043sam001- 14 -LRB100 04951 RJF 38462 a

1primarily for use as a laboratory, laundry, nurses or interns
2residence or other housing or hotel facility used in whole or
3in part for staff, employees or students and their families,
4patients or relatives of patients admitted for treatment or
5care in a health facility, or persons conducting business with
6a health facility, physician's facility, surgicenter,
7administration building, research facility, maintenance,
8storage or utility facility and all structures or facilities
9related to any of the foregoing or required or useful for the
10operation of a health facility, including parking or other
11facilities or other supporting service structures required or
12useful for the orderly conduct of such health facility. "Health
13facility" also means, with respect to a project located outside
14the State, any public or private institution, place, building,
15or agency which provides services similar to those described
16above, provided that such project is owned, operated, leased or
17managed by a participating health institution located within
18the State, or a participating health institution affiliated
19with an entity located within the State.
20    (k) The term "participating health institution" means (i) a
21private corporation or association or (ii) a public entity of
22this State, in either case authorized by the laws of this State
23or the applicable state to provide or operate a health facility
24as defined in this Act and which, pursuant to the provisions of
25this Act, undertakes the financing, construction or
26acquisition of a project or undertakes the refunding or

 

 

10000SB0043sam001- 15 -LRB100 04951 RJF 38462 a

1refinancing of obligations, loans, indebtedness or advances as
2provided in this Act.
3    (l) The term "health facility project", means a specific
4health facility work or improvement to be financed or
5refinanced (including without limitation through reimbursement
6of prior expenditures), acquired, constructed, enlarged,
7remodeled, renovated, improved, furnished, or equipped, with
8funds provided in whole or in part hereunder, any accounts
9receivable, working capital, liability or insurance cost or
10operating expense financing or refinancing program of a health
11facility with or involving funds provided in whole or in part
12hereunder, or any combination thereof.
13    (m) The term "bond resolution" means the resolution or
14resolutions authorizing the issuance of, or providing terms and
15conditions related to, bonds issued under this Act and
16includes, where appropriate, any trust agreement, trust
17indenture, indenture of mortgage or deed of trust providing
18terms and conditions for such bonds.
19    (n) The term "property" means any real, personal or mixed
20property, whether tangible or intangible, or any interest
21therein, including, without limitation, any real estate,
22leasehold interests, appurtenances, buildings, easements,
23equipment, furnishings, furniture, improvements, machinery,
24rights of way, structures, accounts, contract rights or any
25interest therein.
26    (o) The term "revenues" means, with respect to any project,

 

 

10000SB0043sam001- 16 -LRB100 04951 RJF 38462 a

1the rents, fees, charges, interest, principal repayments,
2collections and other income or profit derived therefrom.
3    (p) The term "higher education project" means, in the case
4of a private institution of higher education, an educational
5facility to be acquired, constructed, enlarged, remodeled,
6renovated, improved, furnished, or equipped, or any
7combination thereof.
8    (q) The term "cultural institution project" means, in the
9case of a cultural institution, a cultural facility to be
10acquired, constructed, enlarged, remodeled, renovated,
11improved, furnished, or equipped, or any combination thereof.
12    (r) The term "educational facility" means any property
13located within the State, or any property located outside the
14State, provided that, if the property is located outside the
15State, it must be owned, operated, leased or managed by an
16entity located within the State or an entity affiliated with an
17entity located within the State, in each case constructed or
18acquired before or after the effective date of this Act, which
19is or will be, in whole or in part, suitable for the
20instruction, feeding, recreation or housing of students, the
21conducting of research or other work of a private institution
22of higher education, the use by a private institution of higher
23education in connection with any educational, research or
24related or incidental activities then being or to be conducted
25by it, or any combination of the foregoing, including, without
26limitation, any such property suitable for use as or in

 

 

10000SB0043sam001- 17 -LRB100 04951 RJF 38462 a

1connection with any one or more of the following: an academic
2facility, administrative facility, agricultural facility,
3assembly hall, athletic facility, auditorium, boating
4facility, campus, communication facility, computer facility,
5continuing education facility, classroom, dining hall,
6dormitory, exhibition hall, fire fighting facility, fire
7prevention facility, food service and preparation facility,
8gymnasium, greenhouse, health care facility, hospital,
9housing, instructional facility, laboratory, library,
10maintenance facility, medical facility, museum, offices,
11parking area, physical education facility, recreational
12facility, research facility, stadium, storage facility,
13student union, study facility, theatre or utility.
14    (s) The term "cultural facility" means any property located
15within the State, or any property located outside the State,
16provided that, if the property is located outside the State, it
17must be owned, operated, leased or managed by an entity located
18within the State or an entity affiliated with an entity located
19within the State, in each case constructed or acquired before
20or after the effective date of this Act, which is or will be,
21in whole or in part, suitable for the particular purposes or
22needs of a cultural institution, including, without
23limitation, any such property suitable for use as or in
24connection with any one or more of the following: an
25administrative facility, aquarium, assembly hall, auditorium,
26botanical garden, exhibition hall, gallery, greenhouse,

 

 

10000SB0043sam001- 18 -LRB100 04951 RJF 38462 a

1library, museum, scientific laboratory, theater or zoological
2facility, and shall also include, without limitation, books,
3works of art or music, animal, plant or aquatic life or other
4items for display, exhibition or performance. The term
5"cultural facility" includes buildings on the National
6Register of Historic Places which are owned or operated by
7nonprofit entities.
8    (t) "Private institution of higher education" means a
9not-for-profit educational institution which is not owned by
10the State or any political subdivision, agency,
11instrumentality, district or municipality thereof, which is
12authorized by law to provide a program of education beyond the
13high school level and which:
14        (1) Admits as regular students only individuals having
15    a certificate of graduation from a high school, or the
16    recognized equivalent of such a certificate;
17        (2) Provides an educational program for which it awards
18    a bachelor's degree, or provides an educational program,
19    admission into which is conditioned upon the prior
20    attainment of a bachelor's degree or its equivalent, for
21    which it awards a postgraduate degree, or provides not less
22    than a 2-year program which is acceptable for full credit
23    toward such a degree, or offers a 2-year program in
24    engineering, mathematics, or the physical or biological
25    sciences which is designed to prepare the student to work
26    as a technician and at a semiprofessional level in

 

 

10000SB0043sam001- 19 -LRB100 04951 RJF 38462 a

1    engineering, scientific, or other technological fields
2    which require the understanding and application of basic
3    engineering, scientific, or mathematical principles or
4    knowledge;
5        (3) Is accredited by a nationally recognized
6    accrediting agency or association or, if not so accredited,
7    is an institution whose credits are accepted, on transfer,
8    by not less than 3 institutions which are so accredited,
9    for credit on the same basis as if transferred from an
10    institution so accredited, and holds an unrevoked
11    certificate of approval under the Private College Act from
12    the Board of Higher Education, or is qualified as a "degree
13    granting institution" under the Academic Degree Act; and
14        (4) Does not discriminate in the admission of students
15    on the basis of race or color. "Private institution of
16    higher education" also includes any "academic
17    institution".
18    (u) The term "academic institution" means any
19not-for-profit institution which is not owned by the State or
20any political subdivision, agency, instrumentality, district
21or municipality thereof, which institution engages in, or
22facilitates academic, scientific, educational or professional
23research or learning in a field or fields of study taught at a
24private institution of higher education. Academic institutions
25include, without limitation, libraries, archives, academic,
26scientific, educational or professional societies,

 

 

10000SB0043sam001- 20 -LRB100 04951 RJF 38462 a

1institutions, associations or foundations having such
2purposes.
3    (v) The term "cultural institution" means any
4not-for-profit institution which is not owned by the State or
5any political subdivision, agency, instrumentality, district
6or municipality thereof, which institution engages in the
7cultural, intellectual, scientific, educational or artistic
8enrichment of the people of the State. Cultural institutions
9include, without limitation, aquaria, botanical societies,
10historical societies, libraries, museums, performing arts
11associations or societies, scientific societies and zoological
12societies.
13    (w) The term "affiliate" means, with respect to financing
14of an agricultural facility or an agribusiness, any lender, any
15person, firm or corporation controlled by, or under common
16control with, such lender, and any person, firm or corporation
17controlling such lender.
18    (x) The term "agricultural facility" means land, any
19building or other improvement thereon or thereto, and any
20personal properties deemed necessary or suitable for use,
21whether or not now in existence, in farming, ranching, the
22production of agricultural commodities (including, without
23limitation, the products of aquaculture, hydroponics and
24silviculture) or the treating, processing or storing of such
25agricultural commodities when such activities are customarily
26engaged in by farmers as a part of farming and which land,

 

 

10000SB0043sam001- 21 -LRB100 04951 RJF 38462 a

1building, improvement or personal property is located within
2the State, or is located outside the State, provided that, if
3such property is located outside the State, it must be owned,
4operated, leased, or managed by an entity located within the
5State or an entity affiliated with an entity located within the
6State.
7    (y) The term "lender" with respect to financing of an
8agricultural facility or an agribusiness, means any federal or
9State chartered bank, Federal Land Bank, Production Credit
10Association, Bank for Cooperatives, federal or State chartered
11savings and loan association or building and loan association,
12Small Business Investment Company or any other institution
13qualified within this State to originate and service loans,
14including, but without limitation to, insurance companies,
15credit unions and mortgage loan companies. "Lender" also means
16a wholly owned subsidiary of a manufacturer, seller or
17distributor of goods or services that makes loans to businesses
18or individuals, commonly known as a "captive finance company".
19    (z) The term "agribusiness" means any sole proprietorship,
20limited partnership, co-partnership, joint venture,
21corporation or cooperative which operates or will operate a
22facility located within the State or outside the State,
23provided that, if any facility is located outside the State, it
24must be owned, operated, leased, or managed by an entity
25located within the State or an entity affiliated with an entity
26located within the State, that is related to the processing of

 

 

10000SB0043sam001- 22 -LRB100 04951 RJF 38462 a

1agricultural commodities (including, without limitation, the
2products of aquaculture, hydroponics and silviculture) or the
3manufacturing, production or construction of agricultural
4buildings, structures, equipment, implements, and supplies, or
5any other facilities or processes used in agricultural
6production. Agribusiness includes but is not limited to the
7following:
8        (1) grain handling and processing, including grain
9    storage, drying, treatment, conditioning, mailing and
10    packaging;
11        (2) seed and feed grain development and processing;
12        (3) fruit and vegetable processing, including
13    preparation, canning and packaging;
14        (4) processing of livestock and livestock products,
15    dairy products, poultry and poultry products, fish or
16    apiarian products, including slaughter, shearing,
17    collecting, preparation, canning and packaging;
18        (5) fertilizer and agricultural chemical
19    manufacturing, processing, application and supplying;
20        (6) farm machinery, equipment and implement
21    manufacturing and supplying;
22        (7) manufacturing and supplying of agricultural
23    commodity processing machinery and equipment, including
24    machinery and equipment used in slaughter, treatment,
25    handling, collecting, preparation, canning or packaging of
26    agricultural commodities;

 

 

10000SB0043sam001- 23 -LRB100 04951 RJF 38462 a

1        (8) farm building and farm structure manufacturing,
2    construction and supplying;
3        (9) construction, manufacturing, implementation,
4    supplying or servicing of irrigation, drainage and soil and
5    water conservation devices or equipment;
6        (10) fuel processing and development facilities that
7    produce fuel from agricultural commodities or byproducts;
8        (11) facilities and equipment for processing and
9    packaging agricultural commodities specifically for
10    export;
11        (12) facilities and equipment for forestry product
12    processing and supplying, including sawmilling operations,
13    wood chip operations, timber harvesting operations, and
14    manufacturing of prefabricated buildings, paper, furniture
15    or other goods from forestry products;
16        (13) facilities and equipment for research and
17    development of products, processes and equipment for the
18    production, processing, preparation or packaging of
19    agricultural commodities and byproducts.
20    (aa) The term "asset" with respect to financing of any
21agricultural facility or any agribusiness, means, but is not
22limited to the following: cash crops or feed on hand; livestock
23held for sale; breeding stock; marketable bonds and securities;
24securities not readily marketable; accounts receivable; notes
25receivable; cash invested in growing crops; net cash value of
26life insurance; machinery and equipment; cars and trucks; farm

 

 

10000SB0043sam001- 24 -LRB100 04951 RJF 38462 a

1and other real estate including life estates and personal
2residence; value of beneficial interests in trusts; government
3payments or grants; and any other assets.
4    (bb) The term "liability" with respect to financing of any
5agricultural facility or any agribusiness shall include, but
6not be limited to the following: accounts payable; notes or
7other indebtedness owed to any source; taxes; rent; amounts
8owed on real estate contracts or real estate mortgages;
9judgments; accrued interest payable; and any other liability.
10    (cc) The term "Predecessor Authorities" means those
11authorities as described in Section 845-75.
12    (dd) The term "housing project" means a specific work or
13improvement located within the State or outside the State and
14undertaken to provide residential dwelling accommodations,
15including the acquisition, construction or rehabilitation of
16lands, buildings and community facilities and in connection
17therewith to provide nonhousing facilities which are part of
18the housing project, including land, buildings, improvements,
19equipment and all ancillary facilities for use for offices,
20stores, retirement homes, hotels, financial institutions,
21service, health care, education, recreation or research
22establishments, or any other commercial purpose which are or
23are to be related to a housing development, provided that any
24work or improvement located outside the State is owned,
25operated, leased or managed by an entity located within the
26State, or any entity affiliated with an entity located within

 

 

10000SB0043sam001- 25 -LRB100 04951 RJF 38462 a

1the State.
2    (ee) The term "conservation project" means any project
3including the acquisition, construction, rehabilitation,
4maintenance, operation, or upgrade that is intended to create
5or expand open space or to reduce energy usage through
6efficiency measures. For the purpose of this definition, "open
7space" has the definition set forth under Section 10 of the
8Illinois Open Land Trust Act.
9    (ff) The term "significant presence" means the existence
10within the State of the national or regional headquarters of an
11entity or group or such other facility of an entity or group of
12entities where a significant amount of the business functions
13are performed for such entity or group of entities.
14    (gg) The term "municipal bond issuer" means the State or
15any other state or commonwealth of the United States, or any
16unit of local government, school district, agency or
17instrumentality, office, department, division, bureau,
18commission, college or university thereof located in the State
19or any other state or commonwealth of the United States.
20    (hh) The term "municipal bond program project" means a
21program for the funding of the purchase of bonds, notes or
22other obligations issued by or on behalf of a municipal bond
23issuer.
24    (ii) The term "participating lender" means any trust
25company, bank, savings bank, credit union, merchant bank,
26investment bank, broker, investment trust, pension fund,

 

 

10000SB0043sam001- 26 -LRB100 04951 RJF 38462 a

1building and loan association, savings and loan association,
2insurance company, venture capital company, or other
3institution approved by the Authority which provides a portion
4of the financing for a project.
5    (jj) The term "loan participation" means any loan in which
6the Authority co-operates with a participating lender to
7provide all or a portion of the financing for a project.
8    (kk) The term "PACE Project" means an energy project as
9defined in Section 5 of the Property Assessed Clean Energy Act.
10(Source: P.A. 98-90, eff. 7-15-13; 98-104, eff. 7-22-13;
1198-756, eff. 7-16-14; 99-180, eff. 7-29-15.)
 
12    (20 ILCS 3501/801-40)
13    Sec. 801-40. In addition to the powers otherwise authorized
14by law and in addition to the foregoing general corporate
15powers, the Authority shall also have the following additional
16specific powers to be exercised in furtherance of the purposes
17of this Act.
18    (a) The Authority shall have power (i) to accept grants,
19loans or appropriations from the federal government or the
20State, or any agency or instrumentality thereof, to be used for
21the operating expenses of the Authority, or for any purposes of
22the Authority, including the making of direct loans of such
23funds with respect to projects, and (ii) to enter into any
24agreement with the federal government or the State, or any
25agency or instrumentality thereof, in relationship to such

 

 

10000SB0043sam001- 27 -LRB100 04951 RJF 38462 a

1grants, loans or appropriations.
2    (b) The Authority shall have power to procure and enter
3into contracts for any type of insurance and indemnity
4agreements covering loss or damage to property from any cause,
5including loss of use and occupancy, or covering any other
6insurable risk.
7    (c) The Authority shall have the continuing power to issue
8bonds for its corporate purposes. Bonds may be issued by the
9Authority in one or more series and may provide for the payment
10of any interest deemed necessary on such bonds, of the costs of
11issuance of such bonds, of any premium on any insurance, or of
12the cost of any guarantees, letters of credit or other similar
13documents, may provide for the funding of the reserves deemed
14necessary in connection with such bonds, and may provide for
15the refunding or advance refunding of any bonds or for accounts
16deemed necessary in connection with any purpose of the
17Authority. The bonds may bear interest payable at any time or
18times and at any rate or rates, notwithstanding any other
19provision of law to the contrary, and such rate or rates may be
20established by an index or formula which may be implemented or
21established by persons appointed or retained therefor by the
22Authority, or may bear no interest or may bear interest payable
23at maturity or upon redemption prior to maturity, may bear such
24date or dates, may be payable at such time or times and at such
25place or places, may mature at any time or times not later than
2640 years from the date of issuance, may be sold at public or

 

 

10000SB0043sam001- 28 -LRB100 04951 RJF 38462 a

1private sale at such time or times and at such price or prices,
2may be secured by such pledges, reserves, guarantees, letters
3of credit, insurance contracts or other similar credit support
4or liquidity instruments, may be executed in such manner, may
5be subject to redemption prior to maturity, may provide for the
6registration of the bonds, and may be subject to such other
7terms and conditions all as may be provided by the resolution
8or indenture authorizing the issuance of such bonds. The holder
9or holders of any bonds issued by the Authority may bring suits
10at law or proceedings in equity to compel the performance and
11observance by any person or by the Authority or any of its
12agents or employees of any contract or covenant made with the
13holders of such bonds and to compel such person or the
14Authority and any of its agents or employees to perform any
15duties required to be performed for the benefit of the holders
16of any such bonds by the provision of the resolution
17authorizing their issuance, and to enjoin such person or the
18Authority and any of its agents or employees from taking any
19action in conflict with any such contract or covenant.
20Notwithstanding the form and tenor of any such bonds and in the
21absence of any express recital on the face thereof that it is
22non-negotiable, all such bonds shall be negotiable
23instruments. Pending the preparation and execution of any such
24bonds, temporary bonds may be issued as provided by the
25resolution. The bonds shall be sold by the Authority in such
26manner as it shall determine. The bonds may be secured as

 

 

10000SB0043sam001- 29 -LRB100 04951 RJF 38462 a

1provided in the authorizing resolution by the receipts,
2revenues, income and other available funds of the Authority and
3by any amounts derived by the Authority from the loan agreement
4or lease agreement with respect to the project or projects; and
5bonds may be issued as general obligations of the Authority
6payable from such revenues, funds and obligations of the
7Authority as the bond resolution shall provide, or may be
8issued as limited obligations with a claim for payment solely
9from such revenues, funds and obligations as the bond
10resolution shall provide. The Authority may grant a specific
11pledge or assignment of and lien on or security interest in
12such rights, revenues, income, or amounts and may grant a
13specific pledge or assignment of and lien on or security
14interest in any reserves, funds or accounts established in the
15resolution authorizing the issuance of bonds. Any such pledge,
16assignment, lien or security interest for the benefit of the
17holders of the Authority's bonds shall be valid and binding
18from the time the bonds are issued without any physical
19delivery or further act, and shall be valid and binding as
20against and prior to the claims of all other parties having
21claims against the Authority or any other person irrespective
22of whether the other parties have notice of the pledge,
23assignment, lien or security interest. As evidence of such
24pledge, assignment, lien and security interest, the Authority
25may execute and deliver a mortgage, trust agreement, indenture
26or security agreement or an assignment thereof. A remedy for

 

 

10000SB0043sam001- 30 -LRB100 04951 RJF 38462 a

1any breach or default of the terms of any such agreement by the
2Authority may be by mandamus proceedings in any court of
3competent jurisdiction to compel the performance and
4compliance therewith, but the agreement may prescribe by whom
5or on whose behalf such action may be instituted. It is
6expressly understood that the Authority may, but need not,
7acquire title to any project with respect to which it exercises
8its authority.
9    (d) With respect to the powers granted by this Act, the
10Authority may adopt rules and regulations prescribing the
11procedures by which persons may apply for assistance under this
12Act. Nothing herein shall be deemed to preclude the Authority,
13prior to the filing of any formal application, from conducting
14preliminary discussions and investigations with respect to the
15subject matter of any prospective application.
16    (e) The Authority shall have power to acquire by purchase,
17lease, gift or otherwise any property or rights therein from
18any person useful for its purposes, whether improved for the
19purposes of any prospective project, or unimproved. The
20Authority may also accept any donation of funds for its
21purposes from any such source. The Authority shall have no
22independent power of condemnation but may acquire any property
23or rights therein obtained upon condemnation by any other
24authority, governmental entity or unit of local government with
25such power.
26    (f) The Authority shall have power to develop, construct

 

 

10000SB0043sam001- 31 -LRB100 04951 RJF 38462 a

1and improve either under its own direction, or through
2collaboration with any approved applicant, or to acquire
3through purchase or otherwise, any project, using for such
4purpose the proceeds derived from the sale of its bonds or from
5governmental loans or grants, and to hold title in the name of
6the Authority to such projects.
7    (g) The Authority shall have power to lease pursuant to a
8lease agreement any project so developed and constructed or
9acquired to the approved tenant on such terms and conditions as
10may be appropriate to further the purposes of this Act and to
11maintain the credit of the Authority. Any such lease may
12provide for either the Authority or the approved tenant to
13assume initially, in whole or in part, the costs of
14maintenance, repair and improvements during the leasehold
15period. In no case, however, shall the total rentals from any
16project during any initial leasehold period or the total loan
17repayments to be made pursuant to any loan agreement, be less
18than an amount necessary to return over such lease or loan
19period (1) all costs incurred in connection with the
20development, construction, acquisition or improvement of the
21project and for repair, maintenance and improvements thereto
22during the period of the lease or loan; provided, however, that
23the rentals or loan repayments need not include costs met
24through the use of funds other than those obtained by the
25Authority through the issuance of its bonds or governmental
26loans; (2) a reasonable percentage additive to be agreed upon

 

 

10000SB0043sam001- 32 -LRB100 04951 RJF 38462 a

1by the Authority and the borrower or tenant to cover a properly
2allocable portion of the Authority's general expenses,
3including, but not limited to, administrative expenses,
4salaries and general insurance, and (3) an amount sufficient to
5pay when due all principal of, interest and premium, if any on,
6any bonds issued by the Authority with respect to the project.
7The portion of total rentals payable under clause (3) of this
8subsection (g) shall be deposited in such special accounts,
9including all sinking funds, acquisition or construction
10funds, debt service and other funds as provided by any
11resolution, mortgage or trust agreement of the Authority
12pursuant to which any bond is issued.
13    (h) The Authority has the power, upon the termination of
14any leasehold period of any project, to sell or lease for a
15further term or terms such project on such terms and conditions
16as the Authority shall deem reasonable and consistent with the
17purposes of the Act. The net proceeds from all such sales and
18the revenues or income from such leases shall be used to
19satisfy any indebtedness of the Authority with respect to such
20project and any balance may be used to pay any expenses of the
21Authority or be used for the further development, construction,
22acquisition or improvement of projects. In the event any
23project is vacated by a tenant prior to the termination of the
24initial leasehold period, the Authority shall sell or lease the
25facilities of the project on the most advantageous terms
26available. The net proceeds of any such disposition shall be

 

 

10000SB0043sam001- 33 -LRB100 04951 RJF 38462 a

1treated in the same manner as the proceeds from sales or the
2revenues or income from leases subsequent to the termination of
3any initial leasehold period.
4    (i) The Authority shall have the power to make loans, or to
5purchase loan participations in loans made, to persons to
6finance a project, to enter into loan agreements or agreements
7with participating lenders with respect thereto, and to accept
8guarantees from persons of its loans or the resultant evidences
9of obligations of the Authority.
10    (j) The Authority may fix, determine, charge and collect
11any premiums, fees, charges, costs and expenses, including,
12without limitation, any application fees, commitment fees,
13program fees, financing charges or publication fees from any
14person in connection with its activities under this Act.
15    (k) In addition to the funds established as provided
16herein, the Authority shall have the power to create and
17establish such reserve funds and accounts as may be necessary
18or desirable to accomplish its purposes under this Act and to
19deposit its available monies into the funds and accounts.
20    (l) At the request of the governing body of any unit of
21local government, the Authority is authorized to market such
22local government's revenue bond offerings by preparing bond
23issues for sale, advertising for sealed bids, receiving bids at
24its offices, making the award to the bidder that offers the
25most favorable terms or arranging for negotiated placements or
26underwritings of such securities. The Authority may, at its

 

 

10000SB0043sam001- 34 -LRB100 04951 RJF 38462 a

1discretion, offer for concurrent sale the revenue bonds of
2several local governments. Sales by the Authority of revenue
3bonds under this Section shall in no way imply State guarantee
4of such debt issue. The Authority may require such financial
5information from participating local governments as it deems
6necessary in order to carry out the purposes of this subsection
7(1).
8    (m) The Authority may make grants to any county to which
9Division 5-37 of the Counties Code is applicable to assist in
10the financing of capital development, construction and
11renovation of new or existing facilities for hospitals and
12health care facilities under that Act. Such grants may only be
13made from funds appropriated for such purposes from the Build
14Illinois Bond Fund.
15    (n) The Authority may establish an urban development action
16grant program for the purpose of assisting municipalities in
17Illinois which are experiencing severe economic distress to
18help stimulate economic development activities needed to aid in
19economic recovery. The Authority shall determine the types of
20activities and projects for which the urban development action
21grants may be used, provided that such projects and activities
22are broadly defined to include all reasonable projects and
23activities the primary objectives of which are the development
24of viable urban communities, including decent housing and a
25suitable living environment, and expansion of economic
26opportunity, principally for persons of low and moderate

 

 

10000SB0043sam001- 35 -LRB100 04951 RJF 38462 a

1incomes. The Authority shall enter into grant agreements from
2monies appropriated for such purposes from the Build Illinois
3Bond Fund. The Authority shall monitor the use of the grants,
4and shall provide for audits of the funds as well as recovery
5by the Authority of any funds determined to have been spent in
6violation of this subsection (n) or any rule or regulation
7promulgated hereunder. The Authority shall provide technical
8assistance with regard to the effective use of the urban
9development action grants. The Authority shall file an annual
10report to the General Assembly concerning the progress of the
11grant program.
12    (o) The Authority may establish a Housing Partnership
13Program whereby the Authority provides zero-interest loans to
14municipalities for the purpose of assisting in the financing of
15projects for the rehabilitation of affordable multi-family
16housing for low and moderate income residents. The Authority
17may provide such loans only upon a municipality's providing
18evidence that it has obtained private funding for the
19rehabilitation project. The Authority shall provide 3 State
20dollars for every 7 dollars obtained by the municipality from
21sources other than the State of Illinois. The loans shall be
22made from monies appropriated for such purpose from the Build
23Illinois Bond Fund. The total amount of loans available under
24the Housing Partnership Program shall not exceed $30,000,000.
25State loan monies under this subsection shall be used only for
26the acquisition and rehabilitation of existing buildings

 

 

10000SB0043sam001- 36 -LRB100 04951 RJF 38462 a

1containing 4 or more dwelling units. The terms of any loan made
2by the municipality under this subsection shall require
3repayment of the loan to the municipality upon any sale or
4other transfer of the project.
5    (p) The Authority may award grants to universities and
6research institutions, research consortiums and other
7not-for-profit entities for the purposes of: remodeling or
8otherwise physically altering existing laboratory or research
9facilities, expansion or physical additions to existing
10laboratory or research facilities, construction of new
11laboratory or research facilities or acquisition of modern
12equipment to support laboratory or research operations
13provided that such grants (i) be used solely in support of
14project and equipment acquisitions which enhance technology
15transfer, and (ii) not constitute more than 60 percent of the
16total project or acquisition cost.
17    (q) Grants may be awarded by the Authority to units of
18local government for the purpose of developing the appropriate
19infrastructure or defraying other costs to the local government
20in support of laboratory or research facilities provided that
21such grants may not exceed 40% of the cost to the unit of local
22government.
23    (r) In addition to the powers granted to the Authority
24under subsection (i), and in all cases supplemental to it, the
25The Authority may establish a direct loan program Direct Loan
26Program to make loans to, or may purchase participations in

 

 

10000SB0043sam001- 37 -LRB100 04951 RJF 38462 a

1loans made by participating lenders to, individuals,
2partnerships, or corporations, or other business entities for
3the purpose of financing an industrial project, as defined in
4Section 801-10 of this Act. For the purposes of such program
5and not by way of limitation on any other program of the
6Authority, including, without limitation, programs established
7under subsection (i), the Authority shall have the power to
8issue bonds, notes, or other evidences of indebtedness
9including commercial paper for purposes of providing a fund of
10capital from which it may make such loans. The Authority shall
11have the power to use any appropriations from the State made
12especially for the Authority's direct loan program, or moneys
13at any time held by the Authority under this Act outside the
14State treasury in the custody of either the Treasurer of the
15Authority or a trustee or depository appointed by the
16Authority, Direct Loan Program for additional capital to make
17such loans or purchase such loan participations, or for the
18purposes of reserve funds or pledged funds which secure the
19Authority's obligations of repayment of any bond, note or other
20form of indebtedness established for the purpose of providing
21capital for which it intends to make such loans or purchase
22such loan participations under the Direct Loan Program. For the
23purpose of obtaining such capital, the Authority may also enter
24into agreements with financial institutions, participating
25lenders, and other persons for the purpose of administering a
26loan participation program, selling loans or and developing a

 

 

10000SB0043sam001- 38 -LRB100 04951 RJF 38462 a

1secondary market for such loans or loan participations. Loans
2made under the direct loan program specifically established
3under this subsection (r), including loans under such program
4made by participating lenders in which the Authority purchases
5a participation, Direct Loan Program may be in an amount not to
6exceed $600,000 $300,000 and shall be made for a portion of an
7industrial project which does not exceed 50% of the total
8project. No loan may be made by the Authority unless approved
9by the affirmative vote of at least 8 members of the board. The
10Authority shall establish procedures and publish rules which
11shall provide for the submission, review, and analysis of each
12direct loan and loan participation application and which shall
13preserve the ability of each board member and the Executive
14Director, as applicable, to reach an individual business
15judgment regarding the propriety of making each direct loan or
16loan participation. The collective discretion of the board to
17approve or disapprove each loan shall be unencumbered. The
18Authority may establish and collect such fees and charges,
19determine and enforce such terms and conditions, and charge
20such interest rates as it determines to be necessary and
21appropriate to the successful administration of the direct loan
22program, including purchasing loan participations Direct Loan
23Program. The Authority may require such interests in collateral
24and such guarantees as it determines are necessary to protect
25project the Authority's interest in the repayment of the
26principal and interest of each loan and loan participation made

 

 

10000SB0043sam001- 39 -LRB100 04951 RJF 38462 a

1under the direct loan program Direct Loan Program. The
2restrictions established under this subsection (r) shall not be
3applicable to any loan or loan participation made under
4subsection (i) or to any loan or loan participation made under
5any other Section of this Act.
6    (s) The Authority may guarantee private loans to third
7parties up to a specified dollar amount in order to promote
8economic development in this State.
9    (t) The Authority may adopt rules and regulations as may be
10necessary or advisable to implement the powers conferred by
11this Act.
12    (u) The Authority shall have the power to issue bonds,
13notes or other evidences of indebtedness, which may be used to
14make loans to units of local government which are authorized to
15enter into loan agreements and other documents and to issue
16bonds, notes and other evidences of indebtedness for the
17purpose of financing the protection of storm sewer outfalls,
18the construction of adequate storm sewer outfalls, and the
19provision for flood protection of sanitary sewage treatment
20plans, in counties that have established a stormwater
21management planning committee in accordance with Section
225-1062 of the Counties Code. Any such loan shall be made by the
23Authority pursuant to the provisions of Section 820-5 to 820-60
24of this Act. The unit of local government shall pay back to the
25Authority the principal amount of the loan, plus annual
26interest as determined by the Authority. The Authority shall

 

 

10000SB0043sam001- 40 -LRB100 04951 RJF 38462 a

1have the power, subject to appropriations by the General
2Assembly, to subsidize or buy down a portion of the interest on
3such loans, up to 4% per annum.
4    (v) The Authority may accept security interests as provided
5in Sections 11-3 and 11-3.3 of the Illinois Public Aid Code.
6    (w) Moral Obligation. In the event that the Authority
7determines that monies of the Authority will not be sufficient
8for the payment of the principal of and interest on its bonds
9during the next State fiscal year, the Chairperson, as soon as
10practicable, shall certify to the Governor the amount required
11by the Authority to enable it to pay such principal of and
12interest on the bonds. The Governor shall submit the amount so
13certified to the General Assembly as soon as practicable, but
14no later than the end of the current State fiscal year. This
15subsection shall apply only to any bonds or notes as to which
16the Authority shall have determined, in the resolution
17authorizing the issuance of the bonds or notes, that this
18subsection shall apply. Whenever the Authority makes such a
19determination, that fact shall be plainly stated on the face of
20the bonds or notes and that fact shall also be reported to the
21Governor. In the event of a withdrawal of moneys from a reserve
22fund established with respect to any issue or issues of bonds
23of the Authority to pay principal or interest on those bonds,
24the Chairperson of the Authority, as soon as practicable, shall
25certify to the Governor the amount required to restore the
26reserve fund to the level required in the resolution or

 

 

10000SB0043sam001- 41 -LRB100 04951 RJF 38462 a

1indenture securing those bonds. The Governor shall submit the
2amount so certified to the General Assembly as soon as
3practicable, but no later than the end of the current State
4fiscal year. The Authority shall obtain written approval from
5the Governor for any bonds and notes to be issued under this
6Section. In addition to any other bonds authorized to be issued
7under Sections 825-60, 825-65(e), 830-25 and 845-5, the
8principal amount of Authority bonds outstanding issued under
9this Section 801-40(w) or under 20 ILCS 3850/1-80 or 30 ILCS
10360/2-6(c), which have been assumed by the Authority, shall not
11exceed $150,000,000. This subsection (w) shall in no way be
12applied to any bonds issued by the Authority on behalf of the
13Illinois Power Agency under Section 825-90 of this Act.
14    (x) The Authority may enter into agreements or contracts
15with any person necessary or appropriate to place the payment
16obligations of the Authority under any of its bonds in whole or
17in part on any interest rate basis, cash flow basis, or other
18basis desired by the Authority, including without limitation
19agreements or contracts commonly known as "interest rate swap
20agreements", "forward payment conversion agreements", and
21"futures", or agreements or contracts to exchange cash flows or
22a series of payments, or agreements or contracts, including
23without limitation agreements or contracts commonly known as
24"options", "puts", or "calls", to hedge payment, rate spread,
25or similar exposure; provided that any such agreement or
26contract shall not constitute an obligation for borrowed money

 

 

10000SB0043sam001- 42 -LRB100 04951 RJF 38462 a

1and shall not be taken into account under Section 845-5 of this
2Act or any other debt limit of the Authority or the State of
3Illinois.
4    (y) The Authority shall publish summaries of projects and
5actions approved by the members of the Authority on its
6website. These summaries shall include, but not be limited to,
7information regarding the:
8        (1) project;
9        (2) Board's action or actions;
10        (3) purpose of the project;
11        (4) Authority's program and contribution;
12        (5) volume cap;
13        (6) jobs retained;
14        (7) projected new jobs;
15        (8) construction jobs created;
16        (9) estimated sources and uses of funds;
17        (10) financing summary;
18        (11) project summary;
19        (12) business summary;
20        (13) ownership or economic disclosure statement;
21        (14) professional and financial information;
22        (15) service area; and
23        (16) legislative district.
24    The disclosure of information pursuant to this subsection
25shall comply with the Freedom of Information Act.
26(Source: P.A. 95-470, eff. 8-27-07; 95-481, eff. 8-28-07;

 

 

10000SB0043sam001- 43 -LRB100 04951 RJF 38462 a

195-876, eff. 8-21-08; 96-795, eff. 7-1-10 (see Section 5 of
2P.A. 96-793 for the effective date of changes made by P.A.
396-795).)
 
4    (20 ILCS 3501/805-5)
5    Sec. 805-5. Findings and Declaration of Policy. It is
6hereby found and declared that a continuing need exists to
7maintain and develop the State's economy; that there are
8significant barriers in the capital markets inhibiting the
9issuance by the Authority of industrial revenue bonds, loans,
10and State Guarantees to assist in financing industrial
11projects, PACE Projects, farmers, and agribusiness in the
12State, particularly for smaller firms; and that the
13establishment of the Industrial Revenue Bond Insurance Fund and
14the exercise by the Authority of the powers granted in this
15Article will promote economic development by widening the
16market for the Authority's revenue bonds, loans, PACE Projects,
17and State Guarantees.
18(Source: P.A. 96-897, eff. 5-24-10.)
 
19    (20 ILCS 3501/805-15)
20    Sec. 805-15. Industrial Project Insurance Fund. There is
21created the Industrial Project Insurance Fund, hereafter
22referred to in Sections 805-15 through 805-50 of this Act as
23the "Fund". The Treasurer shall have custody of the Fund, which
24shall be held outside of the State treasury, except that

 

 

10000SB0043sam001- 44 -LRB100 04951 RJF 38462 a

1custody may be transferred to and held by any bank, trust
2company or other fiduciary with whom the Authority executes a
3trust agreement as authorized by paragraph (h) of Section
4805-20 of this Act. Any portion of the Fund against which a
5charge has been made, shall be held for the benefit of the
6holders of the loans or bonds insured under Section 805-20 of
7this Act or the holders of State Guarantees under Article 830
8of this Act. There shall be deposited in the Fund such amounts,
9including but not limited to:
10    (a) All receipts of bond and loan insurance premiums;
11    (b) All proceeds of assets of whatever nature received by
12the Authority as a result of default or delinquency with
13respect to insured loans or bonds or State Guarantees with
14respect to which payments from the Fund have been made,
15including proceeds from the sale, disposal, lease or rental of
16real or personal property which the Authority may receive under
17the provisions of this Article but excluding the proceeds of
18insurance hereunder;
19    (c) All receipts from any applicable contract or agreement
20entered into by the Authority under paragraph (b) of Section
21805-20 of this Act;
22    (d) Any State appropriations, transfers of appropriations,
23or transfers of general obligation bond proceeds or other
24monies made available to the Fund. Amounts in the Fund shall be
25used in accordance with the provisions of this Article to
26satisfy any valid insurance claim payable therefrom and may be

 

 

10000SB0043sam001- 45 -LRB100 04951 RJF 38462 a

1used for any other purpose determined by the Authority in
2accordance with insurance contract or contracts with financial
3institutions entered into pursuant to this Act, including
4without limitation protecting the interest of the Authority in
5industrial projects during periods of loan delinquency or upon
6loan default through the purchase of industrial projects in
7foreclosure proceedings or in lieu of foreclosure or through
8any other means. Such amounts may also be used to pay
9administrative costs and expenses reasonably allocable to the
10activities in connection with the Fund and to pay taxes,
11maintenance, insurance, security and any other costs and
12expenses of bidding for, acquiring, owning, carrying and
13disposing of industrial projects or PACE Projects, which were
14financed with the proceeds of loans or insured bonds or loans ,
15including loans or loan participations made under subsections
16(i) or (r) of Section 801-40. In the case of a default in
17payment with respect to any loan, mortgage or other agreement
18so insured or otherwise representing possible loss to the
19Authority, the amount of the default shall immediately, and at
20all times during the continuance of such default, and to the
21extent provided in any applicable agreement, constitute a
22charge on the Fund. Any amounts in the Fund not currently
23needed to meet the obligations of the Fund may be invested as
24provided by law in obligations designated by the Authority, or
25used to make direct loans or purchase loan participations under
26subsections (i) or (r) of Section 801-40. All and all income

 

 

10000SB0043sam001- 46 -LRB100 04951 RJF 38462 a

1from such investments shall become part of the Fund. All income
2from direct loans or loan participations made under subsections
3(i) or (r) of Section 801-40 shall become funds of the
4Authority. In making such investments, the Authority shall act
5with the care, skill, diligence and prudence under the
6circumstances of a prudent person acting in a like capacity in
7the conduct of an enterprise of like character and with like
8aims. It shall diversify such investments of the Authority so
9as to minimize the risk of large losses, unless under the
10circumstances it is clearly not prudent to do so. Amounts in
11the Fund may also be used to satisfy State Guarantees under
12Article 830 of this Act.
13(Source: P.A. 96-897, eff. 5-24-10.)
 
14    (20 ILCS 3501/825-65)
15    Sec. 825-65. Clean Coal, Coal, Energy Efficiency, PACE, and
16Renewable Energy Project Financing.
17    (a) Findings and declaration of policy.
18        (i) It is hereby found and declared that Illinois has
19    abundant coal resources and, in some areas of Illinois, the
20    demand for power exceeds the generating capacity.
21    Incentives to encourage the construction of coal-fueled
22    electric generating plants in Illinois to ensure power
23    generating capacity into the future and to advance clean
24    coal technology and the use of Illinois coal are in the
25    best interests of all of the citizens of Illinois.

 

 

10000SB0043sam001- 47 -LRB100 04951 RJF 38462 a

1        (ii) It is further found and declared that Illinois has
2    abundant potential and resources to develop renewable
3    energy resource projects and that there are many
4    opportunities to invest in cost-effective energy
5    efficiency projects throughout the State. The development
6    of those projects will create jobs and investment as well
7    as decrease environmental impacts and promote energy
8    independence in Illinois. Accordingly, the development of
9    those projects is in the best interests of all of the
10    citizens of Illinois.
11        (iii) The Authority is authorized to issue bonds to
12    help finance Clean Coal, Coal, Energy Efficiency, PACE, and
13    Renewable Energy projects pursuant to this Section.
14    (b) Definitions.
15        (i) "Clean Coal Project" means (A) "clean coal
16    facility", as defined in Section 1-10 of the Illinois Power
17    Agency Act; (B) "clean coal SNG facility", as defined in
18    Section 1-10 of the Illinois Power Agency Act; (C)
19    transmission lines and associated equipment that transfer
20    electricity from points of supply to points of delivery for
21    projects described in this subsection (b); (D) pipelines or
22    other methods to transfer carbon dioxide from the point of
23    production to the point of storage or sequestration for
24    projects described in this subsection (b); or (E) projects
25    to provide carbon abatement technology for existing
26    generating facilities.

 

 

10000SB0043sam001- 48 -LRB100 04951 RJF 38462 a

1        (ii) "Coal Project" means new electric generating
2    facilities or new gasification facilities, as defined in
3    Section 605-332 of the Department of Commerce and Economic
4    Opportunity Law of the Civil Administrative Code of
5    Illinois, which may include mine-mouth power plants,
6    projects that employ the use of clean coal technology,
7    projects to provide scrubber technology for existing
8    energy generating plants, or projects to provide electric
9    transmission facilities or new gasification facilities.
10        (iii) "Energy Efficiency Project" means measures that
11    reduce the amount of electricity or natural gas required to
12    achieve a given end use, consistent with Section 1-10 of
13    the Illinois Power Agency Act. "Energy Efficiency Project"
14    also includes measures that reduce the total Btus of
15    electricity and natural gas needed to meet the end use or
16    uses consistent with Section 1-10 of the Illinois Power
17    Agency Act.
18        (iv) "Renewable Energy Project" means (A) a project
19    that uses renewable energy resources, as defined in Section
20    1-10 of the Illinois Power Agency Act; (B) a project that
21    uses environmentally preferable technologies and practices
22    that result in improvements to the production of renewable
23    fuels, including but not limited to, cellulosic
24    conversion, water and energy conservation, fractionation,
25    alternative feedstocks, or reduced greenhouse gas
26    emissions; (C) transmission lines and associated equipment

 

 

10000SB0043sam001- 49 -LRB100 04951 RJF 38462 a

1    that transfer electricity from points of supply to points
2    of delivery for projects described in this subsection (b);
3    or (D) projects that use technology for the storage of
4    renewable energy, including, without limitation, the use
5    of battery or electrochemical storage technology for
6    mobile or stationary applications.
7    (c) Creation of reserve funds. The Authority may establish
8and maintain one or more reserve funds to enhance bonds issued
9by the Authority for a Clean Coal Project, a Coal Project, an
10Energy Efficiency Project, a PACE Project, or a Renewable
11Energy Project. There may be one or more accounts in these
12reserve funds in which there may be deposited:
13        (1) any proceeds of the bonds issued by the Authority
14    required to be deposited therein by the terms of any
15    contract between the Authority and its bondholders or any
16    resolution of the Authority;
17        (2) any other moneys or funds of the Authority that it
18    may determine to deposit therein from any other source; and
19        (3) any other moneys or funds made available to the
20    Authority. Subject to the terms of any pledge to the owners
21    of any bonds, moneys in any reserve fund may be held and
22    applied to the payment of principal, premium, if any, and
23    interest of such bonds.
24    (d) Powers and duties. The Authority has the power:
25        (1) To issue bonds in one or more series pursuant to
26    one or more resolutions of the Authority for any Clean Coal

 

 

10000SB0043sam001- 50 -LRB100 04951 RJF 38462 a

1    Project, Coal Project, Energy Efficiency Project, PACE
2    Project, or Renewable Energy Project authorized under this
3    Section, within the authorization set forth in subsection
4    (e).
5        (2) To provide for the funding of any reserves or other
6    funds or accounts deemed necessary by the Authority in
7    connection with any bonds issued by the Authority.
8        (3) To pledge any funds of the Authority or funds made
9    available to the Authority that may be applied to such
10    purpose as security for any bonds or any guarantees,
11    letters of credit, insurance contracts or similar credit
12    support or liquidity instruments securing the bonds.
13        (4) To enter into agreements or contracts with third
14    parties, whether public or private, including, without
15    limitation, the United States of America, the State or any
16    department or agency thereof, to obtain any
17    appropriations, grants, loans or guarantees that are
18    deemed necessary or desirable by the Authority. Any such
19    guarantee, agreement or contract may contain terms and
20    provisions necessary or desirable in connection with the
21    program, subject to the requirements established by the
22    Act.
23        (4.5) To make loans under subsection (i) of Section
24    801-40 to finance loans for PACE Projects.
25        (5) To exercise such other powers as are necessary or
26    incidental to the foregoing.

 

 

10000SB0043sam001- 51 -LRB100 04951 RJF 38462 a

1    (e) Clean Coal Project, Coal Project, Energy Efficiency
2Project, PACE Project, and Renewable Energy Project bond
3authorization and financing limits. In addition to any other
4bonds authorized to be issued under Sections 801-40(w), 825-60,
5830-25 and 845-5, the Authority may have outstanding, at any
6time, bonds for the purpose enumerated in this Section 825-65
7in an aggregate principal amount that shall not exceed
8$3,000,000,000, subject to the following limitations: (i) up to
9$300,000,000 may be issued to finance projects, as described in
10clause (C) of subsection (b)(i) and clause (C) of subsection
11(b)(iv) of this Section 825-65; (ii) up to $500,000,000 may be
12issued to finance projects, as described in clauses (D) and (E)
13of subsection (b)(i) of this Section 825-65; (iii) up to
14$2,000,000,000 may be issued to finance Clean Coal Projects, as
15described in clauses (A) and (B) of subsection (b)(i) of this
16Section 825-65 and Coal Projects, as described in subsection
17(b)(ii) of this Section 825-65; and (iv) up to $2,000,000,000
18may be issued to finance Energy Efficiency Projects, as
19described in subsection (b)(iii) of this Section 825-65, and
20Renewable Energy Projects, as described in clauses (A), (B),
21and (D) of subsection (b)(iv) (iii) of this Section 825-65, and
22PACE Projects. An application for a loan financed from bond
23proceeds from a borrower or its affiliates for a Clean Coal
24Project, a Coal Project, Energy Efficiency Project, PACE
25Project, or a Renewable Energy Project may not be approved by
26the Authority for an amount in excess of $450,000,000 for any

 

 

10000SB0043sam001- 52 -LRB100 04951 RJF 38462 a

1borrower or its affiliates. A Clean Coal Project, or Coal
2Project, or PACE Project must be located within the State. An
3Energy Efficiency Project may be located within the State or
4outside the State, provided that, if the Energy Efficiency
5Project is located outside of the State, it must be owned,
6operated, leased, or managed by an entity located within the
7State or any entity affiliated with an entity located within
8the State. These bonds shall not constitute an indebtedness or
9obligation of the State of Illinois and it shall be plainly
10stated on the face of each bond that it does not constitute an
11indebtedness or obligation of the State of Illinois, but is
12payable solely from the revenues, income or other assets of the
13Authority pledged therefor.
14    (f) The bonding authority granted under this Section is in
15addition to and not limited by the provisions of Section 845-5.
16(Source: P.A. 100-201, eff. 8-18-17.)
 
17    (20 ILCS 3501/830-30)
18    Sec. 830-30. State Guarantees for existing debt.
19    (a) The Authority is authorized to issue State Guarantees
20for farmers' existing debts held by a lender. For the purposes
21of this Section, a farmer shall be a resident of Illinois, who
22is a principal operator of a farm or land, at least 50% of
23whose annual gross income is derived from farming and whose
24debt to asset ratio shall not be less than 40%, except in those
25cases where the applicant has previously used the guarantee

 

 

10000SB0043sam001- 53 -LRB100 04951 RJF 38462 a

1program there shall be no debt to asset ratio or income
2restriction. For the purposes of this Section, debt to asset
3ratio shall mean the current outstanding liabilities of the
4farmer divided by the current outstanding assets of the farmer.
5The Authority shall establish the maximum permissible debt to
6asset ratio based on criteria established by the Authority.
7Lenders shall apply for the State Guarantees on forms provided
8by the Authority and certify that the application and any other
9documents submitted are true and correct. The lender or
10borrower, or both in combination, shall pay an administrative
11fee as determined by the Authority. The applicant shall be
12responsible for paying any fees or charges involved in
13recording mortgages, releases, financing statements, insurance
14for secondary market issues and any other similar fees or
15charges as the Authority may require. The application shall at
16a minimum contain the farmer's name, address, present credit
17and financial information, including cash flow statements,
18financial statements, balance sheets, and any other
19information pertinent to the application, and the collateral to
20be used to secure the State Guarantee. In addition, the lender
21must agree to bring the farmer's debt to a current status at
22the time the State Guarantee is provided and must also agree to
23charge a fixed or adjustable interest rate which the Authority
24determines to be below the market rate of interest generally
25available to the borrower. If both the lender and applicant
26agree, the interest rate on the State Guarantee Loan can be

 

 

10000SB0043sam001- 54 -LRB100 04951 RJF 38462 a

1converted to a fixed interest rate at any time during the term
2of the loan. Any State Guarantees provided under this Section
3(i) shall not exceed $500,000 per farmer, (ii) shall be set up
4on a payment schedule not to exceed 30 years, and shall be no
5longer than 30 years in duration, and (iii) shall be subject to
6an annual review and renewal by the lender and the Authority;
7provided that only one such State Guarantee shall be
8outstanding per farmer at any one time. No State Guarantee
9shall be revoked by the Authority without a 90-day notice, in
10writing, to all parties. In those cases where the borrower has
11not previously used the guarantee program, the lender shall not
12call due any loan during the first 3 years for any reason
13except for lack of performance or insufficient collateral. The
14lender can review and withdraw or continue with the State
15Guarantee on an annual basis after the first 3 years of the
16loan, provided a 90-day notice, in writing, to all parties has
17been given.
18    (b) The Authority shall provide or renew a State Guarantee
19to a lender if:
20        (i) A fee equal to 25 basis points on the loan is paid
21    to the Authority on an annual basis by the lender.
22        (ii) The application provides collateral acceptable to
23    the Authority that is at least equal to the State's portion
24    of the Guarantee to be provided.
25        (iii) The lender assumes all responsibility and costs
26    for pursuing legal action on collecting any loan that is

 

 

10000SB0043sam001- 55 -LRB100 04951 RJF 38462 a

1    delinquent or in default.
2        (iv) The lender is responsible for the first 15% of the
3    outstanding principal of the note for which the State
4    Guarantee has been applied.
5    (c) There is hereby created outside of the State treasury a
6special fund to be known as the Illinois Agricultural Loan
7Guarantee Fund. The State Treasurer shall be custodian of this
8Fund. Any amounts in the Illinois Agricultural Loan Guarantee
9Fund not currently needed to meet the obligations of the Fund
10shall be invested as provided by law or used by the Authority
11to make direct loans or originate or purchase loan
12participations under subsections (i) or (r) of Section 801-40.
13All , and all interest earned from these investments shall be
14deposited into the Fund until the Fund reaches the maximum
15amount authorized in this Act; thereafter, interest earned
16shall be deposited into the General Revenue Fund. After
17September 1, 1989, annual investment earnings equal to 1.5% of
18the Fund shall remain in the Fund to be used for the purposes
19established in Section 830-40 of this Act. All earnings on
20direct loans or loan participations made by the Authority under
21subsections (i) or (r) of Section 801-40 with amounts in this
22Fund shall become funds of the Authority. The Authority is
23authorized to transfer to the Fund such amounts as are
24necessary to satisfy claims during the duration of the State
25Guarantee program to secure State Guarantees issued under this
26Section, provided that amounts to be paid from the Industrial

 

 

10000SB0043sam001- 56 -LRB100 04951 RJF 38462 a

1Project Insurance Fund created under Article 805 of this Act
2may be paid by the Authority directly to satisfy claims and
3need not be deposited first into the Illinois Agricultural Loan
4Guarantee Fund. If for any reason the General Assembly fails to
5make an appropriation sufficient to meet these obligations,
6this Act shall constitute an irrevocable and continuing
7appropriation of an amount necessary to secure guarantees as
8defaults occur and the irrevocable and continuing authority
9for, and direction to, the State Treasurer and the Comptroller
10to make the necessary transfers to the Illinois Agricultural
11Loan Guarantee Fund, as directed by the Governor, out of the
12General Revenue Fund. Within 30 days after November 15, 1985,
13the Authority may transfer up to $7,000,000 from available
14appropriations into the Illinois Agricultural Loan Guarantee
15Fund for the purposes of this Act. Thereafter, the Authority
16may transfer additional amounts into the Illinois Agricultural
17Loan Guarantee Fund to secure guarantees for defaults as
18defaults occur. In the event of default by the farmer, the
19lender shall be entitled to, and the Authority shall direct
20payment on, the State Guarantee after 90 days of delinquency.
21All payments by the Authority to satisfy claims against the
22State Guarantee shall be made, in whole or in part, from any of
23the following funds in such order and in such amounts as the
24Authority shall determine: (1) the Industrial Project
25Insurance Fund created under Article 805 of this Act (if the
26Authority exercises its discretion under subsection (j) of

 

 

10000SB0043sam001- 57 -LRB100 04951 RJF 38462 a

1Section 805-20); (2) the Illinois Agricultural Loan Guarantee
2Fund; or (3) the Illinois Farmer and Agribusiness Loan
3Guarantee Fund. The Illinois Agricultural Loan Guarantee Fund
4shall guarantee receipt of payment of the 85% of the principal
5and interest owed on the State Guarantee Loan by the farmer to
6the guarantee holder, provided that payments by the Authority
7to satisfy claims against the State Guarantee shall be made in
8accordance with the preceding sentence. It shall be the
9responsibility of the lender to proceed with the collecting and
10disposing of collateral on the State Guarantee under this
11Section, Section 830-35, Section 830-45, Section 830-50,
12Section 830-55, or Article 835 within 14 months of the time the
13State Guarantee is declared delinquent; provided, however,
14that the lender shall not collect or dispose of collateral on
15the State Guarantee without the express written prior approval
16of the Authority. If the lender does not dispose of the
17collateral within 14 months, the lender shall be liable to
18repay to the State interest on the State Guarantee equal to the
19same rate which the lender charges on the State Guarantee;
20provided, however, that the Authority may extend the 14-month
21period for a lender in the case of bankruptcy or extenuating
22circumstances. The Fund from which a payment is made shall be
23reimbursed for any amounts paid from that Fund under this
24Section, Section 830-35, Section 830-45, Section 830-50,
25Section 830-55, or Article 835 upon liquidation of the
26collateral. The Authority, by resolution of the Board, may

 

 

10000SB0043sam001- 58 -LRB100 04951 RJF 38462 a

1borrow sums from the Fund and provide for repayment as soon as
2may be practical upon receipt of payments of principal and
3interest by a farmer. Money may be borrowed from the Fund by
4the Authority for the sole purpose of paying certain interest
5costs for farmers associated with selling a loan subject to a
6State Guarantee in a secondary market as may be deemed
7reasonable and necessary by the Authority.
8    (d) Notwithstanding the provisions of this Section 830-30
9with respect to the farmers and lenders who may obtain State
10Guarantees, the Authority may promulgate rules establishing
11the eligibility of farmers and lenders to participate in the
12State guarantee program and the terms, standards, and
13procedures that will apply, when the Authority finds that
14emergency conditions in Illinois agriculture have created the
15need for State Guarantees pursuant to terms, standards, and
16procedures other than those specified in this Section.
17(Source: P.A. 99-509, eff. 6-24-16.)
 
18    (20 ILCS 3501/830-35)
19    Sec. 830-35. State Guarantees for loans to farmers and
20agribusiness; eligibility.
21    (a) The Authority is authorized to issue State Guarantees
22to lenders for loans to eligible farmers and agribusinesses for
23purposes set forth in this Section. For purposes of this
24Section, an eligible farmer shall be a resident of Illinois (i)
25who is principal operator of a farm or land, at least 50% of

 

 

10000SB0043sam001- 59 -LRB100 04951 RJF 38462 a

1whose annual gross income is derived from farming, (ii) whose
2annual total sales of agricultural products, commodities, or
3livestock exceeds $20,000, and (iii) whose net worth does not
4exceed $500,000. An eligible agribusiness shall be that as
5defined in Section 801-10 of this Act. The Authority may
6approve applications by farmers and agribusinesses that
7promote diversification of the farm economy of this State
8through the growth and development of new crops or livestock
9not customarily grown or produced in this State or that
10emphasize a vertical integration of grain or livestock produced
11or raised in this State into a finished agricultural product
12for consumption or use. "New crops or livestock not customarily
13grown or produced in this State" shall not include corn,
14soybeans, wheat, swine, or beef or dairy cattle. "Vertical
15integration of grain or livestock produced or raised in this
16State" shall include any new or existing grain or livestock
17grown or produced in this State. Lenders shall apply for the
18State Guarantees on forms provided by the Authority, certify
19that the application and any other documents submitted are true
20and correct, and pay an administrative fee as determined by the
21Authority. The applicant shall be responsible for paying any
22fees or charges involved in recording mortgages, releases,
23financing statements, insurance for secondary market issues
24and any other similar fees or charges as the Authority may
25require. The application shall at a minimum contain the
26farmer's or agribusiness' name, address, present credit and

 

 

10000SB0043sam001- 60 -LRB100 04951 RJF 38462 a

1financial information, including cash flow statements,
2financial statements, balance sheets, and any other
3information pertinent to the application, and the collateral to
4be used to secure the State Guarantee. In addition, the lender
5must agree to charge an interest rate, which may vary, on the
6loan that the Authority determines to be below the market rate
7of interest generally available to the borrower. If both the
8lender and applicant agree, the interest rate on the State
9Guarantee Loan can be converted to a fixed interest rate at any
10time during the term of the loan. Any State Guarantees provided
11under this Section (i) shall not exceed $500,000 per farmer or
12an amount as determined by the Authority on a case-by-case
13basis for an agribusiness, (ii) shall not exceed a term of 15
14years, and (iii) shall be subject to an annual review and
15renewal by the lender and the Authority; provided that only one
16such State Guarantee shall be made per farmer or agribusiness,
17except that additional State Guarantees may be made for
18purposes of expansion of projects financed in part by a
19previously issued State Guarantee. No State Guarantee shall be
20revoked by the Authority without a 90-day notice, in writing,
21to all parties. The lender shall not call due any loan for any
22reason except for lack of performance, insufficient
23collateral, or maturity. A lender may review and withdraw or
24continue with a State Guarantee on an annual basis after the
25first 5 years following closing of the loan application if the
26loan contract provides for an interest rate that shall not

 

 

10000SB0043sam001- 61 -LRB100 04951 RJF 38462 a

1vary. A lender shall not withdraw a State Guarantee if the loan
2contract provides for an interest rate that may vary, except
3for reasons set forth herein.
4    (b) The Authority shall provide or renew a State Guarantee
5to a lender if:
6        (i) A fee equal to 25 basis points on the loan is paid
7    to the Authority on an annual basis by the lender.
8        (ii) The application provides collateral acceptable to
9    the Authority that is at least equal to the State's portion
10    of the Guarantee to be provided.
11        (iii) The lender assumes all responsibility and costs
12    for pursuing legal action on collecting any loan that is
13    delinquent or in default.
14        (iv) The lender is responsible for the first 15% of the
15    outstanding principal of the note for which the State
16    Guarantee has been applied.
17    (c) There is hereby created outside of the State treasury a
18special fund to be known as the Illinois Farmer and
19Agribusiness Loan Guarantee Fund. The State Treasurer shall be
20custodian of this Fund. Any amounts in the Fund not currently
21needed to meet the obligations of the Fund shall be invested as
22provided by law, or used by the Authority to make direct loans
23or originate or purchase loan participations under subsections
24(i) or (r) of Section 801-40. All and all interest earned from
25these investments shall be deposited into the Fund until the
26Fund reaches the maximum amounts authorized in this Act;

 

 

10000SB0043sam001- 62 -LRB100 04951 RJF 38462 a

1thereafter, interest earned shall be deposited into the General
2Revenue Fund. After September 1, 1989, annual investment
3earnings equal to 1.5% of the Fund shall remain in the Fund to
4be used for the purposes established in Section 830-40 of this
5Act. All earnings on direct loans or loan participations made
6by the Authority under subsections (i) or (r) of Section 801-40
7with amounts in this Fund shall become funds of the Authority.
8The Authority is authorized to transfer such amounts as are
9necessary to satisfy claims from available appropriations and
10from fund balances of the Farm Emergency Assistance Fund as of
11June 30 of each year to the Illinois Farmer and Agribusiness
12Loan Guarantee Fund to secure State Guarantees issued under
13this Section, Sections 830-30, 830-45, 830-50, and 830-55, and
14Article 835 of this Act. Amounts to be paid from the Industrial
15Project Insurance Fund created under Article 805 of this Act
16may be paid by the Authority directly to satisfy claims and
17need not be deposited first into the Illinois Farmer and
18Agribusiness Loan Guarantee Fund. If for any reason the General
19Assembly fails to make an appropriation sufficient to meet
20these obligations, this Act shall constitute an irrevocable and
21continuing appropriation of an amount necessary to secure
22guarantees as defaults occur and the irrevocable and continuing
23authority for, and direction to, the State Treasurer and the
24Comptroller to make the necessary transfers to the Illinois
25Farmer and Agribusiness Loan Guarantee Fund, as directed by the
26Governor, out of the General Revenue Fund. In the event of

 

 

10000SB0043sam001- 63 -LRB100 04951 RJF 38462 a

1default by the borrower on State Guarantee Loans under this
2Section, Section 830-45, Section 830-50, or Section 830-55, the
3lender shall be entitled to, and the Authority shall direct
4payment on, the State Guarantee after 90 days of delinquency.
5All payments by the Authority to satisfy claims against the
6State Guarantee shall be made, in whole or in part, from any of
7the following funds in such order and in such amounts as the
8Authority shall determine: (1) the Industrial Project
9Insurance Fund created under Article 805 of this Act (if the
10Authority exercises its discretion under subsection (j) of
11Section 805-20); (2) the Illinois Farmer and Agribusiness Loan
12Guarantee Fund; or (3) the Illinois Farmer and Agribusiness
13Loan Guarantee Fund. It shall be the responsibility of the
14lender to proceed with the collecting and disposing of
15collateral on the State Guarantee under this Section, Section
16830-45, Section 830-50, or Section 830-55 within 14 months of
17the time the State Guarantee is declared delinquent. If the
18lender does not dispose of the collateral within 14 months, the
19lender shall be liable to repay to the State interest on the
20State Guarantee equal to the same rate that the lender charges
21on the State Guarantee, provided that the Authority shall have
22the authority to extend the 14-month period for a lender in the
23case of bankruptcy or extenuating circumstances. The Fund shall
24be reimbursed for any amounts paid under this Section, Section
25830-30, Section 830-45, Section 830-50, Section 830-55, or
26Article 835 upon liquidation of the collateral. The Authority,

 

 

10000SB0043sam001- 64 -LRB100 04951 RJF 38462 a

1by resolution of the Board, may borrow sums from the Fund and
2provide for repayment as soon as may be practical upon receipt
3of payments of principal and interest by a borrower on State
4Guarantee Loans under this Section, Section 830-30, Section
5830-45, Section 830-50, Section 830-55, or Article 835. Money
6may be borrowed from the Fund by the Authority for the sole
7purpose of paying certain interest costs for borrowers
8associated with selling a loan subject to a State Guarantee
9under this Section, Section 830-30, Section 830-45, Section
10830-50, Section 830-55, or Article 835 in a secondary market as
11may be deemed reasonable and necessary by the Authority.
12    (d) Notwithstanding the provisions of this Section 830-35
13with respect to the farmers, agribusinesses, and lenders who
14may obtain State Guarantees, the Authority may promulgate rules
15establishing the eligibility of farmers, agribusinesses, and
16lenders to participate in the State Guarantee program and the
17terms, standards, and procedures that will apply, when the
18Authority finds that emergency conditions in Illinois
19agriculture have created the need for State Guarantees pursuant
20to terms, standards, and procedures other than those specified
21in this Section.
22(Source: P.A. 99-509, eff. 6-24-16.)
 
23    (20 ILCS 3501/830-55)
24    Sec. 830-55. Working Capital Loan Guarantee Program.
25    (a) The Authority is authorized to issue State Guarantees

 

 

10000SB0043sam001- 65 -LRB100 04951 RJF 38462 a

1to lenders for loans to finance needed input costs related to
2and in connection with planting and raising agricultural crops
3and commodities in Illinois. Eligible input costs include, but
4are not limited to, fertilizer, chemicals, feed, seed, fuel,
5parts, and repairs. At the discretion of the Authority, the
6farmer, producer, or agribusiness must be able to provide the
7originating lender with a first lien on the proposed crop or
8commodity to be raised and an assignment of Federal Crop
9Insurance sufficient to secure the Working Capital Loan.
10Additional collateral may be required as deemed necessary by
11the lender and the Authority.
12    For the purposes of this Section, an eligible farmer,
13producer, or agribusiness is a resident of Illinois who is at
14least 18 years of age and who is a principal operator of a farm
15or land, who derives at least 50% of annual gross income from
16farming, and whose debt to asset ratio is not less than 40%.
17For the purposes of this Section, debt to asset ratio means
18current outstanding liabilities, including any debt to be
19financed or refinanced under this Section 830-55, divided by
20current outstanding assets. The Authority shall establish the
21maximum permissible debt to asset ratio based on criteria
22established by the Authority. Lenders shall apply for the State
23Guarantees on forms provided by the Authority and certify that
24the application and any other documents submitted are true and
25correct. The lender or borrower, or both in combination, shall
26pay an administrative fee as determined by the Authority. The

 

 

10000SB0043sam001- 66 -LRB100 04951 RJF 38462 a

1applicant shall be responsible for paying any fee or charge
2involved in recording mortgages, releases, financing
3statements, insurance for secondary market issues, and any
4other similar fee or charge that the Authority may require. The
5application shall at a minimum contain the borrower's name,
6address, present credit and financial information, including
7cash flow statements, financial statements, balance sheets,
8and any other information pertinent to the application, and the
9collateral to be used to secure the State Guarantee. In
10addition, the borrower must certify to the Authority that, at
11the time the State Guarantee is provided, the borrower will not
12be delinquent in the repayment of any debt. The lender must
13agree to charge a fixed or adjustable interest rate that the
14Authority determines to be below the market rate of interest
15generally available to the borrower. If both the lender and
16applicant agree, the interest rate on the State guaranteed loan
17can be converted to a fixed interest rate at any time during
18the term of the loan. State Guarantees provided under this
19Section (i) shall not exceed $250,000 per borrower, (ii) shall
20be repaid annually, and (iii) shall be subject to an annual
21review and renewal by the lender and the Authority. The State
22Guarantee may be renewed annually, for a period not to exceed 3
23total years per State Guarantee, if the borrower meets
24financial criteria and other conditions, as established by the
25Authority. A farmer or agribusiness may use this program more
26than once provided the aggregate principal amount of State

 

 

10000SB0043sam001- 67 -LRB100 04951 RJF 38462 a

1Guarantees under this Section to that farmer or agribusiness
2does not exceed $250,000 annually. No State Guarantee shall be
3revoked by the Authority without a 90-day notice, in writing,
4to all parties.
5    (b) The Authority shall provide a State Guarantee to a
6lender if:
7        (i) The borrower pays to the Authority a fee equal to
8    100 basis points on the loan.
9        (ii) The application provides collateral acceptable to
10    the Authority that is at least equal to the State
11    Guarantee.
12        (iii) The lender assumes all responsibility and costs
13    for pursuing legal action on collecting any loan that is
14    delinquent or in default.
15        (iv) The lender is at risk for the first 15% of the
16    outstanding principal of the note for which the State
17    Guarantee is provided.
18    (c) The Illinois Agricultural Loan Guarantee Fund, the
19Illinois Farmer and Agribusiness Loan Guarantee Fund, and the
20Industrial Project Insurance Fund may be used to secure State
21Guarantees issued under this Section as provided in Section
22830-30, Section 830-35, and subsection (j) of Section 805-20,
23respectively, or to make direct loans or purchase loan
24participations under subsections (i) or (r) of Section 801-40.
25If the Authority exercises its discretion under subsection (j)
26of Section 805-20 to secure a State Guarantee with the

 

 

10000SB0043sam001- 68 -LRB100 04951 RJF 38462 a

1Industrial Project Insurance Fund and also exercises its
2discretion under this subsection to secure the same State
3Guarantee with the Illinois Agricultural Loan Guarantee Fund,
4the Illinois Farmer and Agribusiness Loan Guarantee Fund, or
5both, all payments by the Authority to satisfy claims against
6the State Guarantee shall be made from the Industrial Project
7Insurance Fund, the Illinois Agricultural Loan Guarantee Fund,
8or the Illinois Farmer and Agribusiness Loan Guarantee Fund, as
9applicable, in such order and in such amounts as the Authority
10shall determine.
11    (d) Notwithstanding the provisions of this Section 830-55
12with respect to the borrowers and lenders who may obtain State
13Guarantees, the Authority may promulgate rules establishing
14the eligibility of borrowers and lenders to participate in the
15State Guarantee program and the terms, standards, and
16procedures that will apply, when the Authority finds that
17emergency conditions in Illinois agriculture have created the
18need for State Guarantees pursuant to terms, standards, and
19procedures other than those specified in this Section.
20(Source: P.A. 99-509, eff. 6-24-16.)
 
21    (20 ILCS 3501/845-75)
22    Sec. 845-75. Transfer of functions from previously
23existing authorities to the Illinois Finance Authority.
24    (a) The Illinois Finance Authority created by the Illinois
25Finance Authority Act shall succeed to, assume and exercise all

 

 

10000SB0043sam001- 69 -LRB100 04951 RJF 38462 a

1rights, powers, duties and responsibilities formerly exercised
2by the following Authorities and entities (herein called the
3"Predecessor Authorities") prior to the abolition of the
4Predecessor Authorities by this Act:
5        The Illinois Development Finance Authority
6        The Illinois Farm Development Authority
7        The Illinois Health Facilities Authority
8        The Illinois Educational Facilities Authority
9        The Illinois Community Development Finance Corporation
10        The Illinois Rural Bond Bank
11        The Illinois Research Park Authority
12    (b) All books, records, papers, documents and pending
13business in any way pertaining to the Predecessor Authorities
14are transferred to the Illinois Finance Authority, but any
15rights or obligations of any person under any contract made by,
16or under any rules, regulations, uniform standards, criteria
17and guidelines established or approved by, such Predecessor
18Authorities shall be unaffected thereby. All bonds, notes or
19other evidences of indebtedness outstanding on the effective
20date of this Act shall be unaffected by the transfer of
21functions to the Illinois Finance Authority. No rule,
22regulation, standard, criteria or guideline promulgated,
23established or approved by the Predecessor Authorities
24pursuant to an exercise of any right, power, duty or
25responsibility assumed by and transferred to the Illinois
26Finance Authority shall be affected by this Act, and all such

 

 

10000SB0043sam001- 70 -LRB100 04951 RJF 38462 a

1rules, regulations, standards, criteria and guidelines shall
2become those of the Illinois Finance Authority until such time
3as they are amended or repealed by the Illinois Finance
4Authority.
5    (c) The Illinois Finance Authority may exercise all of the
6rights, powers, duties, and responsibilities that were
7provided for the Illinois Research Park Authority under the
8provisions of the Illinois Research Park Authority Act, as the
9text of that Act existed on December 31, 2003, notwithstanding
10the fact that Public Act 88-669, which created the Illinois
11Research Park Authority Act, has been held to be
12unconstitutional as a violation of the single subject clause of
13the Illinois Constitution in People v. Olender, Docket No.
1498932, opinion filed December 15, 2005.
15    (d) The enactment of this amendatory Act of the 100th
16General Assembly shall not affect any right accrued or
17liability incurred prior to its enactment, including the
18validity or enforceability of any prior action taken by the
19Illinois Finance Authority with respect to loans made, or loan
20participations purchased, by the Authority under subsections
21(i) or (r) of Section 801-40.
22(Source: P.A. 93-205, eff. 1-1-04; 94-960, eff. 6-27-06.)
 
23    Section 99. Effective date. This Act takes effect upon
24becoming law.".