SB1783 Engrossed

LRB096 11147 RLJ 21516 b






1
    AN ACT concerning local government.

 
2
    Be it enacted by the People of the State of Illinois,
 
3
represented in the General Assembly:



 
4
    Section 5. The Quad Cities Regional Economic Development

5
Authority Act, approved September 22, 1987 is amended  by 
6
changing Section 9 as follows:
 



7
    (70 ILCS 510/9)  (from Ch. 85, par. 6209)



8
    Sec. 9. Bonds and notes. (a)(1) The Authority may, with the 
9
written
approval of the Governor, at any time and from time to 
10
time, issue bonds and
notes for any corporate purpose, 
11
including the establishment of reserves and
the payment of 
12
interest.  In this Act the term "bonds" includes notes of
any 
13
kind, interim certificates, refunding bonds or any other 
14
evidence of obligation.

15
    (2) The bonds of any issue shall be payable solely from the 
16
property or
receipts of the Authority, including, without 
17
limitation:

18
    (I) fees, charges or other revenues payable to the 
19
Authority;

20
    (II) payments by financial institutions, insurance 
21
companies, or others
pursuant to letters or lines of credit, 
22
policies of insurance, or purchase agreements;

23
    (III) investment earnings from funds or accounts 
 


 






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1
maintained pursuant to
a bond resolution or trust agreement; 
2
and

3
    (IV) proceeds of refunding bonds.

4
    (3) Bonds shall be authorized by a resolution of the 
5
Authority and may
be secured by a trust agreement by and 
6
between the Authority and a
corporate trustee or trustees, 
7
which may be any trust company or bank
having the powers of a 
8
trust company within or without the State.  Bonds shall:

9
    (I) be issued at, above or below par value, for cash or 
10
other valuable
consideration, and mature at time or times, 
11
whether as serial bonds or as
term bonds or both, not exceeding 
12
40 years from their respective date of
issue; however, the 
13
length of the term of the bond should bear a reasonable

14
relationship to the value life of the item financed;

15
    (II) bear interest at the fixed or variable rate or rates 
16
determined by
the method provided in the resolution or trust 
17
agreement;

18
    (III) be payable at a time or times, in the denominations 
19
and form,
either coupon or registered or both, and carry the 
20
registration and
privileges as to conversion and for the 
21
replacement of mutilated, lost or
destroyed bonds as the 
22
resolution or trust agreement may provide;

23
    (IV) be payable in lawful money of the United States at a 
24
designated place;

25
    (V) be subject to the terms of purchase, payment, 
26
redemption, refunding
or refinancing that the resolution or 
 


 






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1
trust agreement provides;

2
    (VI) be executed by the manual or facsimile signatures of 
3
the officers
of the Authority designated by the Authority, 
4
which signatures shall be
valid at delivery even for one who 
5
has ceased to hold office; and

6
    (VII) be sold in the manner and upon the terms determined 
7
by the Authority.

8
    (b) Any resolution or trust agreement may contain 
9
provisions which shall
be a part of the contract with the 
10
holders of the bonds as to:

11
    (1) pledging, assigning or directing the use, investment or 
12
disposition
of receipts of the Authority or proceeds or 
13
benefits of any contract and
conveying or otherwise securing 
14
any property or property rights;

15
    (2) the setting aside of loan funding deposits, debt 
16
service reserves,
capitalized interest accounts, cost of 
17
issuance accounts and sinking funds,
and the regulations, 
18
investment and disposition thereof;

19
    (3) limitations on the purpose to which or the investments 
20
in which the
proceeds of sale of any issue of bonds may be 
21
applied and restrictions to
investment of revenues or bond 
22
proceeds in government obligations for which
principal and 
23
interest are unconditionally guaranteed by the United States of 
24
America;

25
    (4) limitations on the issue of additional bonds, the terms 
26
upon which
additional bonds may be issued and secured, the 
 


 






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1
terms upon which additional
bonds may rank on a parity with, or 
2
be subordinate or superior to, other bonds;

3
    (5) the refunding or refinancing of outstanding bonds;

4
    (6) the procedure, if any, by which the terms of any 
5
contract with
bondholders may be altered or amended and the 
6
amount of bonds and holders
of which must consent thereto, and 
7
the manner in which consent shall be given;

8
    (7) defining the acts or omissions which shall constitute a 
9
default in
the duties of the Authority to holders of bonds and 
10
providing the rights or
remedies of such holders in the event 
11
of a default which may include
provisions restricting 
12
individual right of action by bondholders;

13
    (8) providing for guarantees, pledges of property, letters 
14
of credit, or
other security, or insurance for the benefit of 
15
bondholders; and

16
    (9) any other matter relating to the bonds which the 
17
Authority determines appropriate.

18
    (c) No member of the Authority nor any person executing the 
19
bonds shall
be liable personally on the bonds or subject to any 
20
personal liability by
reason of the issuance of the bonds.

21
    (d) The Authority may enter into agreements with agents, 
22
banks, insurers
or others for the purpose of enhancing the 
23
marketability of or as security for its bonds.

24
    (e)(1) A pledge by the Authority of revenues as security 
25
for an issue of
bonds shall be valid and binding from the time 
26
when the pledge is made.

 


 






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1
    (2) The revenues pledged shall immediately be subject to 
2
the lien of the
pledge without any physical delivery or further 
3
act, and the lien of any
pledge shall be valid and binding 
4
against any person having any claim of
any kind in tort, 
5
contract or otherwise against the Authority, irrespective
of 
6
whether the person has notice.

7
    (3) No resolution, trust agreement or financing statement, 
8
continuation
statement, or other instrument adopted or entered 
9
into by the Authority
need be filed or recorded in any public 
10
record other than the records of
the authority in order to 
11
perfect the lien against third persons,
regardless of any 
12
contrary provision of law.

13
    (f) The Authority may issue bonds to refund any of its 
14
bonds then
outstanding, including the payment of any redemption 
15
premium and any
interest accrued or to accrue to the earliest 
16
or any subsequent date of
redemption, purchase or maturity of 
17
the bonds.  Refunding bonds may be
issued for the public 
18
purposes of realizing savings in the effective costs
of debt 
19
service, directly or through a debt restructuring, for 
20
alleviating
impending or actual default and may be issued in 
21
one or more series in an
amount in excess of that of the bonds 
22
to be refunded.

23
    (g) Bonds or notes of the Authority may be sold by the 
24
Authority through
the process of competitive bid or negotiated 
25
sale.

26
    (h) At no time shall the total outstanding bonds and notes 
 


 






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1
of the
Authority exceed $250 $100 million.

2
    (i) The bonds and notes of the Authority shall not be debts 
3
of the State.

4
    (j) In no event may proceeds of bonds or notes issued by 
5
the Authority
be used to finance any structure which is not 
6
constructed pursuant to an
agreement between the Authority and 
7
a party, which provides for the
delivery by the party of a 
8
completed structure constructed pursuant to a
fixed price 
9
contract, and which provides for the delivery of such structure

10
at such fixed price to be insured or guaranteed by a third 
11
party determined
by the Authority to be capable of completing 
12
construction of such a structure.

13
(Source: P.A. 85-713.)


 
14
    Section 10. The Quad Cities Regional Economic Development

15
Authority Act, certified December 30, 1987 is amended  by 
16
changing Section 9 as follows:
 



17
    (70 ILCS 515/9)  (from Ch. 85, par. 6509)


18
    Sec. 9. Bonds and notes. (a)(1) The Authority may, with the 
19
written
approval of the Governor, at any time and from time to 
20
time, issue bonds and
notes for any corporate purpose, 
21
including the establishment of reserves and
the payment of 
22
interest.  In this Act the term "bonds" includes notes of
any 
23
kind, interim certificates, refunding bonds or any other 
24
evidence of obligation.

 


 






SB1783 Engrossed
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LRB096 11147 RLJ 21516 b




1
    (2) The bonds of any issue shall be payable solely from the 
2
property or
receipts of the Authority, including, without 
3
limitation:

4
    (I) fees, charges or other revenues payable to the 
5
Authority;

6
    (II) payments by financial institutions, insurance 
7
companies, or others
pursuant to letters or lines of credit, 
8
policies of insurance, or purchase agreements;

9
    (III) investment earnings from funds or accounts 
10
maintained pursuant to
a bond resolution or trust agreement; 
11
and

12
    (IV) proceeds of refunding bonds.

13
    (3) Bonds shall be authorized by a resolution of the 
14
Authority and may
be secured by a trust agreement by and 
15
between the Authority and a
corporate trustee or trustees, 
16
which may be any trust company or bank
having the powers of a 
17
trust company within or without the State.  Bonds shall:

18
    (I) be issued at, above or below par value, for cash or 
19
other valuable
consideration, and mature at time or times, 
20
whether as serial bonds or as
term bonds or both, not exceeding 
21
40 years from their respective date of
issue; however, the 
22
length of the term of the bond should bear a reasonable

23
relationship to the value life of the item financed;

24
    (II) bear interest at the fixed or variable rate or rates 
25
determined by
the method provided in the resolution or trust 
26
agreement;

 


 






SB1783 Engrossed
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LRB096 11147 RLJ 21516 b




1
    (III) be payable at a time or times, in the denominations 
2
and form,
either coupon or registered or both, and carry the 
3
registration and
privileges as to conversion and for the 
4
replacement of mutilated, lost or
destroyed bonds as the 
5
resolution or trust agreement may provide;

6
    (IV) be payable in lawful money of the United States at a 
7
designated place;

8
    (V) be subject to the terms of purchase, payment, 
9
redemption, refunding
or refinancing that the resolution or 
10
trust agreement provides;

11
    (VI) be executed by the manual or facsimile signatures of 
12
the officers
of the Authority designated by the Authority, 
13
which signatures shall be
valid at delivery even for one who 
14
has ceased to hold office; and

15
    (VII) be sold in the manner and upon the terms determined 
16
by the Authority.

17
    (b) Any resolution or trust agreement may contain 
18
provisions which shall
be a part of the contract with the 
19
holders of the bonds as to:

20
    (1) pledging, assigning or directing the use, investment or 
21
disposition
of receipts of the Authority or proceeds or 
22
benefits of any contract and
conveying or otherwise securing 
23
any property or property rights;

24
    (2) the setting aside of loan funding deposits, debt 
25
service reserves,
capitalized interest accounts, cost of 
26
issuance accounts and sinking funds,
and the regulations, 
 


 






SB1783 Engrossed
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LRB096 11147 RLJ 21516 b




1
investment and disposition thereof;

2
    (3) limitations on the purpose to which or the investments 
3
in which the
proceeds of sale of any issue of bonds may be 
4
applied and restrictions to
investment of revenues or bond 
5
proceeds in government obligations for which
principal and 
6
interest are unconditionally guaranteed by the United States of 
7
America;

8
    (4) limitations on the issue of additional bonds, the terms 
9
upon which
additional bonds may be issued and secured, the 
10
terms upon which additional
bonds may rank on a parity with, or 
11
be subordinate or superior to, other bonds;

12
    (5) the refunding or refinancing of outstanding bonds;

13
    (6) the procedure, if any, by which the terms of any 
14
contract with
bondholders may be altered or amended and the 
15
amount of bonds and holders
of which must consent thereto, and 
16
the manner in which consent shall be given;

17
    (7) defining the acts or omissions which shall constitute a 
18
default in
the duties of the Authority to holders of bonds and 
19
providing the rights or
remedies of such holders in the event 
20
of a default which may include
provisions restricting 
21
individual right of action by bondholders;

22
    (8) providing for guarantees, pledges of property, letters 
23
of credit, or
other security, or insurance for the benefit of 
24
bondholders; and

25
    (9) any other matter relating to the bonds which the 
26
Authority determines appropriate.

 


 






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LRB096 11147 RLJ 21516 b




1
    (c) No member of the Authority nor any person executing the 
2
bonds shall
be liable personally on the bonds or subject to any 
3
personal liability by
reason of the issuance of the bonds.

4
    (d) The Authority may enter into agreements with agents, 
5
banks, insurers
or others for the purpose of enhancing the 
6
marketability of or as security for its bonds.

7
    (e)(1) A pledge by the Authority of revenues as security 
8
for an issue of
bonds shall be valid and binding from the time 
9
when the pledge is made.

10
    (2) The revenues pledged shall immediately be subject to 
11
the lien of the
pledge without any physical delivery or further 
12
act, and the lien of any
pledge shall be valid and binding 
13
against any person having any claim of
any kind in tort, 
14
contract or otherwise against the Authority, irrespective
of 
15
whether the person has notice.

16
    (3) No resolution, trust agreement or financing statement, 
17
continuation
statement, or other instrument adopted or entered 
18
into by the Authority
need be filed or recorded in any public 
19
record other than the records of
the authority in order to 
20
perfect the lien against third persons,
regardless of any 
21
contrary provision of law.

22
    (f) The Authority may issue bonds to refund any of its 
23
bonds then
outstanding, including the payment of any redemption 
24
premium and any
interest accrued or to accrue to the earliest 
25
or any subsequent date of
redemption, purchase or maturity of 
26
the bonds.  Refunding bonds may be
issued for the public 
 


 






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LRB096 11147 RLJ 21516 b




1
purposes of realizing savings in the effective costs
of debt 
2
service, directly or through a debt restructuring, for 
3
alleviating
impending or actual default and may be issued in 
4
one or more series in an
amount in excess of that of the bonds 
5
to be refunded.

6
    (g) Bonds or notes of the Authority may be sold by the 
7
Authority through
the process of competitive bid or negotiated 
8
sale.

9
    (h) At no time shall the total outstanding bonds and notes 
10
of the
Authority exceed $250 $100 million.

11
    (i) The bonds and notes of the Authority shall not be debts 
12
of the State.

13
    (j) In no event may proceeds of bonds or notes issued by 
14
the Authority
be used to finance any structure which is not 
15
constructed pursuant to an
agreement between the Authority and 
16
a party, which provides for the
delivery by the party of a 
17
completed structure constructed pursuant to a
fixed price 
18
contract, and which provides for the delivery of such structure

19
at such fixed price to be insured or guaranteed by a third 
20
party determined
by the Authority to be capable of completing 
21
construction of such a structure.

22
(Source: P.A. 85-988.)




 

23
    (70 ILCS 510/9.1 rep.)


24
    Section 15. The Quad Cities Regional Economic Development

25
Authority Act, approved September 22, 1987 is amended  by 
 


 






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1
repealing Section 9.1.
 

2
    (70 ILCS 515/9.1 rep.)


3
    Section 20. The Quad Cities Regional Economic Development

4
Authority Act, certified December 30, 1987 is amended  by 
5
repealing Section 9.1.