Illinois General Assembly - Full Text of SB0043
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Full Text of SB0043  100th General Assembly

SB0043enr 100TH GENERAL ASSEMBLY

  
  
  

 


 
SB0043 EnrolledLRB100 04951 MLM 14961 b

1    AN ACT concerning finance.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 5. The Illinois Finance Authority Act is amended by
5changing 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
17one finance authority;
18    (b) that involuntary unemployment affects the health,
19safety, morals and general welfare of the people of the State
20of Illinois;
21    (c) that the economic burdens resulting from involuntary
22unemployment fall in part upon the State in the form of public
23assistance and reduced tax revenues, and in the event the

 

 

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1unemployed worker and his family migrate elsewhere to find
2work, may also fall upon the municipalities and other taxing
3districts within the areas of unemployment in the form of
4reduced tax revenues, thereby endangering their financial
5ability to support necessary governmental services for their
6remaining inhabitants;
7    (d) that a vigorous growing economy is the basic source of
8job opportunities;
9    (e) that protection against involuntary unemployment, its
10economic burdens and the spread of economic stagnation can best
11be provided by promoting, attracting, stimulating and
12revitalizing industry, manufacturing and commerce in the
13State;
14    (f) that the State has a responsibility to help create a
15favorable climate for new and improved job opportunities for
16its citizens by encouraging the development of commercial
17businesses and industrial and manufacturing plants within the
18State;
19    (g) that increased availability of funds for construction
20of new facilities and the expansion and improvement of existing
21facilities for industrial, commercial and manufacturing
22facilities will provide for new and continued employment in the
23construction industry and alleviate the burden of
24unemployment;
25    (h) that in the absence of direct governmental subsidies
26the unaided operations of private enterprise do not provide

 

 

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1sufficient resources for residential construction,
2rehabilitation, rental or purchase, and that support from
3housing related commercial facilities is one means of
4stimulating residential construction, rehabilitation, rental
5and purchase;
6    (i) that it is in the public interest and the policy of
7this State to foster and promote by all reasonable means the
8provision of adequate capital markets and facilities for
9borrowing money by units of local government, and for the
10financing of their respective public improvements and other
11governmental purposes within the State from proceeds of bonds
12or notes issued by those governmental units; and to assist
13local governmental units in fulfilling their needs for those
14purposes by use of creation of indebtedness;
15    (j) that it is in the public interest and the policy of
16this State to the extent possible, to reduce the costs of
17indebtedness to taxpayers and residents of this State and to
18encourage continued investor interest in the purchase of bonds
19or notes of governmental units as sound and preferred
20securities for investment; and to encourage governmental units
21to continue their independent undertakings of public
22improvements and other governmental purposes and the financing
23thereof, and to assist them in those activities by making funds
24available at reduced interest costs for orderly financing of
25those purposes, especially during periods of restricted credit
26or money supply, and particularly for those governmental units

 

 

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1not otherwise able to borrow for those purposes;
2    (k) that in this State the following conditions exist: (i)
3an inadequate supply of funds at interest rates sufficiently
4low to enable persons engaged in agriculture in this State to
5pursue agricultural operations at present levels; (ii) that
6such inability to pursue agricultural operations lessens the
7supply of agricultural commodities available to fulfill the
8needs of the citizens of this State; (iii) that such inability
9to continue operations decreases available employment in the
10agricultural sector of the State and results in unemployment
11and its attendant problems; (iv) that such conditions prevent
12the acquisition of an adequate capital stock of farm equipment
13and machinery, much of which is manufactured in this State,
14therefore impairing the productivity of agricultural land and,
15further, causing unemployment or lack of appropriate increase
16in employment in such manufacturing; (v) that such conditions
17are conducive to consolidation of acreage of agricultural land
18with fewer individuals living and farming on the traditional
19family farm; (vi) that these conditions result in a loss in
20population, unemployment and movement of persons from rural to
21urban areas accompanied by added costs to communities for
22creation of new public facilities and services; (vii) that
23there have been recurrent shortages of funds for agricultural
24purposes from private market sources at reasonable rates of
25interest; (viii) that these shortages have made the sale and
26purchase of agricultural land to family farmers a virtual

 

 

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1impossibility in many parts of the State; (ix) that the
2ordinary operations of private enterprise have not in the past
3corrected these conditions; and (x) that a stable supply of
4adequate funds for agricultural financing is required to
5encourage family farmers in an orderly and sustained manner and
6to reduce the problems described above;
7    (l) that for the benefit of the people of the State of
8Illinois, the conduct and increase of their commerce, the
9protection and enhancement of their welfare, the development of
10continued prosperity and the improvement of their health and
11living conditions it is essential that all the people of the
12State be given the fullest opportunity to learn and to develop
13their intellectual and mental capacities and skills; that to
14achieve these ends it is of the utmost importance that private
15institutions of higher education within the State be provided
16with appropriate additional means to assist the people of the
17State in achieving the required levels of learning and
18development of their intellectual and mental capacities and
19skills and that cultural institutions within the State be
20provided with appropriate additional means to expand the
21services and resources which they offer for the cultural,
22intellectual, scientific, educational and artistic enrichment
23of the people of the State;
24    (m) that in order to foster civic and neighborhood pride,
25citizens require access to facilities such as educational
26institutions, recreation, parks and open spaces, entertainment

 

 

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1and sports, a reliable transportation network, cultural
2facilities and theaters and other facilities as authorized by
3this Act, and that it is in the best interests of the State to
4lower the costs of all such facilities by providing financing
5through the State;
6    (n) that to preserve and protect the health of the citizens
7of the State, and lower the costs of health care, that
8financing for health facilities should be provided through the
9State; and it is hereby declared to be the policy of the State,
10in the interest of promoting the health, safety, morals and
11general welfare of all the people of the State, to address the
12conditions noted above, to increase job opportunities and to
13retain existing jobs in the State, by making available through
14the Illinois Finance Authority, hereinafter created, funds for
15the development, improvement and creation of industrial,
16housing, local government, educational, health, public purpose
17and other projects; to issue its bonds and notes to make funds
18at reduced rates and on more favorable terms for borrowing by
19local governmental units through the purchase of the bonds or
20notes of the governmental units; and to make or acquire loans
21for the acquisition and development of agricultural
22facilities; to provide financing for private institutions of
23higher education, cultural institutions, health facilities and
24other facilities and projects as authorized by this Act; and to
25grant broad powers to the Illinois Finance Authority to
26accomplish and to carry out these policies of the State which

 

 

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1are in the public interest of the State and of its taxpayers
2and residents; and
3    (o) that providing financing alternatives for projects
4that are located outside the State that are owned, operated,
5leased, managed by, or otherwise affiliated with, institutions
6located within the State would promote the economy of the State
7for the benefit of the health, welfare, safety, trade,
8commerce, industry, and economy of the people of the State by
9creating employment opportunities in the State and lowering the
10cost of accessing healthcare, private education, or cultural
11institutions in the State by reducing the cost of financing or
12operating those projects; and .
13    (p) that the realization of the objectives of the Authority
14identified in this Act including, without limitation, those
15designed (1) to assist and enable veterans, minorities, women
16and disabled individuals to own and operate small businesses;
17(2) to assist in the delivery of agricultural assistance; and
18(3) to aid, assist, and encourage economic growth and
19development within this State, will be enhanced by empowering
20the Authority to purchase loan participations from
21participating lenders.
22(Source: P.A. 96-1021, eff. 7-12-10.)
 
23    (20 ILCS 3501/801-10)
24    Sec. 801-10. Definitions. The following terms, whenever
25used or referred to in this Act, shall have the following

 

 

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1meanings, except in such instances where the context may
2clearly indicate otherwise:
3    (a) The term "Authority" means the Illinois Finance
4Authority created by this Act.
5    (b) The term "project" means an industrial project,
6conservation project, housing project, public purpose project,
7higher education project, health facility project, cultural
8institution project, municipal bond program project, PACE
9Project, agricultural facility or agribusiness, and "project"
10may include any combination of one or more of the foregoing
11undertaken jointly by any person with one or more other
12persons.
13    (c) The term "public purpose project" means any project or
14facility, including without limitation land, buildings,
15structures, machinery, equipment and all other real and
16personal property, which is authorized or required by law to be
17acquired, constructed, improved, rehabilitated, reconstructed,
18replaced or maintained by any unit of government or any other
19lawful public purpose which is authorized or required by law to
20be undertaken by any unit of government.
21    (d) The term "industrial project" means the acquisition,
22construction, refurbishment, creation, development or
23redevelopment of any facility, equipment, machinery, real
24property or personal property for use by any instrumentality of
25the State or its political subdivisions, for use by any person
26or institution, public or private, for profit or not for

 

 

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1profit, or for use in any trade or business, including, but not
2limited to, any industrial, manufacturing or commercial
3enterprise that is located within or outside the State,
4provided that, with respect to a project involving property
5located outside the State, the property must be owned,
6operated, leased or managed by an entity located within the
7State or an entity affiliated with an entity located within the
8State, and which is (1) a capital project, including, but not
9limited to: (i) land and any rights therein, one or more
10buildings, structures or other improvements, machinery and
11equipment, whether now existing or hereafter acquired, and
12whether or not located on the same site or sites; (ii) all
13appurtenances and facilities incidental to the foregoing,
14including, but not limited to, utilities, access roads,
15railroad sidings, track, docking and similar facilities,
16parking facilities, dockage, wharfage, railroad roadbed,
17track, trestle, depot, terminal, switching and signaling or
18related equipment, site preparation and landscaping; and (iii)
19all non-capital costs and expenses relating thereto or (2) any
20addition to, renovation, rehabilitation or improvement of a
21capital project or (3) any activity or undertaking within or
22outside the State, provided that, with respect to a project
23involving property located outside the State, the property must
24be owned, operated, leased or managed by an entity located
25within the State or an entity affiliated with an entity located
26within the State, which the Authority determines will aid,

 

 

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1assist or encourage economic growth, development or
2redevelopment within the State or any area thereof, will
3promote the expansion, retention or diversification of
4employment opportunities within the State or any area thereof
5or will aid in stabilizing or developing any industry or
6economic sector of the State economy. The term "industrial
7project" also means the production of motion pictures.
8    (e) The term "bond" or "bonds" shall include bonds, notes
9(including bond, grant or revenue anticipation notes),
10certificates and/or other evidences of indebtedness
11representing an obligation to pay money, including refunding
12bonds.
13    (f) The terms "lease agreement" and "loan agreement" shall
14mean: (i) an agreement whereby a project acquired by the
15Authority by purchase, gift or lease is leased to any person,
16corporation or unit of local government which will use or cause
17the project to be used as a project as heretofore defined upon
18terms providing for lease rental payments at least sufficient
19to pay when due all principal of, interest and premium, if any,
20on any bonds of the Authority issued with respect to such
21project, providing for the maintenance, insuring and operation
22of the project on terms satisfactory to the Authority,
23providing for disposition of the project upon termination of
24the lease term, including purchase options or abandonment of
25the premises, and such other terms as may be deemed desirable
26by the Authority, or (ii) any agreement pursuant to which the

 

 

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1Authority agrees to loan the proceeds of its bonds issued with
2respect to a project or other funds of the Authority to any
3person which will use or cause the project to be used as a
4project as heretofore defined upon terms providing for loan
5repayment installments at least sufficient to pay when due all
6principal of, interest and premium, if any, on any bonds of the
7Authority, if any, issued with respect to the project, and
8providing for maintenance, insurance and other matters as may
9be deemed desirable by the Authority.
10    (g) The term "financial aid" means the expenditure of
11Authority funds or funds provided by the Authority through the
12issuance of its bonds, notes or other evidences of indebtedness
13or from other sources for the development, construction,
14acquisition or improvement of a project.
15    (h) The term "person" means an individual, corporation,
16unit of government, business trust, estate, trust, partnership
17or association, 2 or more persons having a joint or common
18interest, or any other legal entity.
19    (i) The term "unit of government" means the federal
20government, the State or unit of local government, a school
21district, or any agency or instrumentality, office, officer,
22department, division, bureau, commission, college or
23university thereof.
24    (j) The term "health facility" means: (a) any public or
25private institution, place, building, or agency required to be
26licensed under the Hospital Licensing Act; (b) any public or

 

 

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1private institution, place, building, or agency required to be
2licensed under the Nursing Home Care Act, the Specialized
3Mental Health Rehabilitation Act of 2013, the ID/DD Community
4Care Act, or the MC/DD Act; (c) any public or licensed private
5hospital as defined in the Mental Health and Developmental
6Disabilities Code; (d) any such facility exempted from such
7licensure when the Director of Public Health attests that such
8exempted facility meets the statutory definition of a facility
9subject to licensure; (e) any other public or private health
10service institution, place, building, or agency which the
11Director of Public Health attests is subject to certification
12by the Secretary, U.S. Department of Health and Human Services
13under the Social Security Act, as now or hereafter amended, or
14which the Director of Public Health attests is subject to
15standard-setting by a recognized public or voluntary
16accrediting or standard-setting agency; (f) any public or
17private institution, place, building or agency engaged in
18providing one or more supporting services to a health facility;
19(g) any public or private institution, place, building or
20agency engaged in providing training in the healing arts,
21including, but not limited to, schools of medicine, dentistry,
22osteopathy, optometry, podiatry, pharmacy or nursing, schools
23for the training of x-ray, laboratory or other health care
24technicians and schools for the training of para-professionals
25in the health care field; (h) any public or private congregate,
26life or extended care or elderly housing facility or any public

 

 

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1or private home for the aged or infirm, including, without
2limitation, any Facility as defined in the Life Care Facilities
3Act; (i) any public or private mental, emotional or physical
4rehabilitation facility or any public or private educational,
5counseling, or rehabilitation facility or home, for those
6persons with a developmental disability, those who are
7physically ill or disabled, the emotionally disturbed, those
8persons with a mental illness or persons with learning or
9similar disabilities or problems; (j) any public or private
10alcohol, drug or substance abuse diagnosis, counseling
11treatment or rehabilitation facility, (k) any public or private
12institution, place, building or agency licensed by the
13Department of Children and Family Services or which is not so
14licensed but which the Director of Children and Family Services
15attests provides child care, child welfare or other services of
16the type provided by facilities subject to such licensure; (l)
17any public or private adoption agency or facility; and (m) any
18public or private blood bank or blood center. "Health facility"
19also means a public or private structure or structures suitable
20primarily for use as a laboratory, laundry, nurses or interns
21residence or other housing or hotel facility used in whole or
22in part for staff, employees or students and their families,
23patients or relatives of patients admitted for treatment or
24care in a health facility, or persons conducting business with
25a health facility, physician's facility, surgicenter,
26administration building, research facility, maintenance,

 

 

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1storage or utility facility and all structures or facilities
2related to any of the foregoing or required or useful for the
3operation of a health facility, including parking or other
4facilities or other supporting service structures required or
5useful for the orderly conduct of such health facility. "Health
6facility" also means, with respect to a project located outside
7the State, any public or private institution, place, building,
8or agency which provides services similar to those described
9above, provided that such project is owned, operated, leased or
10managed by a participating health institution located within
11the State, or a participating health institution affiliated
12with an entity located within the State.
13    (k) The term "participating health institution" means (i) a
14private corporation or association or (ii) a public entity of
15this State, in either case authorized by the laws of this State
16or the applicable state to provide or operate a health facility
17as defined in this Act and which, pursuant to the provisions of
18this Act, undertakes the financing, construction or
19acquisition of a project or undertakes the refunding or
20refinancing of obligations, loans, indebtedness or advances as
21provided in this Act.
22    (l) The term "health facility project", means a specific
23health facility work or improvement to be financed or
24refinanced (including without limitation through reimbursement
25of prior expenditures), acquired, constructed, enlarged,
26remodeled, renovated, improved, furnished, or equipped, with

 

 

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1funds provided in whole or in part hereunder, any accounts
2receivable, working capital, liability or insurance cost or
3operating expense financing or refinancing program of a health
4facility with or involving funds provided in whole or in part
5hereunder, or any combination thereof.
6    (m) The term "bond resolution" means the resolution or
7resolutions authorizing the issuance of, or providing terms and
8conditions related to, bonds issued under this Act and
9includes, where appropriate, any trust agreement, trust
10indenture, indenture of mortgage or deed of trust providing
11terms and conditions for such bonds.
12    (n) The term "property" means any real, personal or mixed
13property, whether tangible or intangible, or any interest
14therein, including, without limitation, any real estate,
15leasehold interests, appurtenances, buildings, easements,
16equipment, furnishings, furniture, improvements, machinery,
17rights of way, structures, accounts, contract rights or any
18interest therein.
19    (o) The term "revenues" means, with respect to any project,
20the rents, fees, charges, interest, principal repayments,
21collections and other income or profit derived therefrom.
22    (p) The term "higher education project" means, in the case
23of a private institution of higher education, an educational
24facility to be acquired, constructed, enlarged, remodeled,
25renovated, improved, furnished, or equipped, or any
26combination thereof.

 

 

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1    (q) The term "cultural institution project" means, in the
2case of a cultural institution, a cultural facility to be
3acquired, constructed, enlarged, remodeled, renovated,
4improved, furnished, or equipped, or any combination thereof.
5    (r) The term "educational facility" means any property
6located within the State, or any property located outside the
7State, provided that, if the property is located outside the
8State, it must be owned, operated, leased or managed by an
9entity located within the State or an entity affiliated with an
10entity located within the State, in each case constructed or
11acquired before or after the effective date of this Act, which
12is or will be, in whole or in part, suitable for the
13instruction, feeding, recreation or housing of students, the
14conducting of research or other work of a private institution
15of higher education, the use by a private institution of higher
16education in connection with any educational, research or
17related or incidental activities then being or to be conducted
18by it, or any combination of the foregoing, including, without
19limitation, any such property suitable for use as or in
20connection with any one or more of the following: an academic
21facility, administrative facility, agricultural facility,
22assembly hall, athletic facility, auditorium, boating
23facility, campus, communication facility, computer facility,
24continuing education facility, classroom, dining hall,
25dormitory, exhibition hall, fire fighting facility, fire
26prevention facility, food service and preparation facility,

 

 

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1gymnasium, greenhouse, health care facility, hospital,
2housing, instructional facility, laboratory, library,
3maintenance facility, medical facility, museum, offices,
4parking area, physical education facility, recreational
5facility, research facility, stadium, storage facility,
6student union, study facility, theatre or utility.
7    (s) The term "cultural facility" means any property located
8within the State, or any property located outside the State,
9provided that, if the property is located outside the State, it
10must be owned, operated, leased or managed by an entity located
11within the State or an entity affiliated with an entity located
12within the State, in each case constructed or acquired before
13or after the effective date of this Act, which is or will be,
14in whole or in part, suitable for the particular purposes or
15needs of a cultural institution, including, without
16limitation, any such property suitable for use as or in
17connection with any one or more of the following: an
18administrative facility, aquarium, assembly hall, auditorium,
19botanical garden, exhibition hall, gallery, greenhouse,
20library, museum, scientific laboratory, theater or zoological
21facility, and shall also include, without limitation, books,
22works of art or music, animal, plant or aquatic life or other
23items for display, exhibition or performance. The term
24"cultural facility" includes buildings on the National
25Register of Historic Places which are owned or operated by
26nonprofit entities.

 

 

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1    (t) "Private institution of higher education" means a
2not-for-profit educational institution which is not owned by
3the State or any political subdivision, agency,
4instrumentality, district or municipality thereof, which is
5authorized by law to provide a program of education beyond the
6high school level and which:
7        (1) Admits as regular students only individuals having
8    a certificate of graduation from a high school, or the
9    recognized equivalent of such a certificate;
10        (2) Provides an educational program for which it awards
11    a bachelor's degree, or provides an educational program,
12    admission into which is conditioned upon the prior
13    attainment of a bachelor's degree or its equivalent, for
14    which it awards a postgraduate degree, or provides not less
15    than a 2-year program which is acceptable for full credit
16    toward such a degree, or offers a 2-year program in
17    engineering, mathematics, or the physical or biological
18    sciences which is designed to prepare the student to work
19    as a technician and at a semiprofessional level in
20    engineering, scientific, or other technological fields
21    which require the understanding and application of basic
22    engineering, scientific, or mathematical principles or
23    knowledge;
24        (3) Is accredited by a nationally recognized
25    accrediting agency or association or, if not so accredited,
26    is an institution whose credits are accepted, on transfer,

 

 

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

 

 

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1enrichment of the people of the State. Cultural institutions
2include, without limitation, aquaria, botanical societies,
3historical societies, libraries, museums, performing arts
4associations or societies, scientific societies and zoological
5societies.
6    (w) The term "affiliate" means, with respect to financing
7of an agricultural facility or an agribusiness, any lender, any
8person, firm or corporation controlled by, or under common
9control with, such lender, and any person, firm or corporation
10controlling such lender.
11    (x) The term "agricultural facility" means land, any
12building or other improvement thereon or thereto, and any
13personal properties deemed necessary or suitable for use,
14whether or not now in existence, in farming, ranching, the
15production of agricultural commodities (including, without
16limitation, the products of aquaculture, hydroponics and
17silviculture) or the treating, processing or storing of such
18agricultural commodities when such activities are customarily
19engaged in by farmers as a part of farming and which land,
20building, improvement or personal property is located within
21the State, or is located outside the State, provided that, if
22such property is located outside the State, it must be owned,
23operated, leased, or managed by an entity located within the
24State or an entity affiliated with an entity located within the
25State.
26    (y) The term "lender" with respect to financing of an

 

 

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1agricultural facility or an agribusiness, means any federal or
2State chartered bank, Federal Land Bank, Production Credit
3Association, Bank for Cooperatives, federal or State chartered
4savings and loan association or building and loan association,
5Small Business Investment Company or any other institution
6qualified within this State to originate and service loans,
7including, but without limitation to, insurance companies,
8credit unions and mortgage loan companies. "Lender" also means
9a wholly owned subsidiary of a manufacturer, seller or
10distributor of goods or services that makes loans to businesses
11or individuals, commonly known as a "captive finance company".
12    (z) The term "agribusiness" means any sole proprietorship,
13limited partnership, co-partnership, joint venture,
14corporation or cooperative which operates or will operate a
15facility located within the State or outside the State,
16provided that, if any facility is located outside the State, it
17must be owned, operated, leased, or managed by an entity
18located within the State or an entity affiliated with an entity
19located within the State, that is related to the processing of
20agricultural commodities (including, without limitation, the
21products of aquaculture, hydroponics and silviculture) or the
22manufacturing, production or construction of agricultural
23buildings, structures, equipment, implements, and supplies, or
24any other facilities or processes used in agricultural
25production. Agribusiness includes but is not limited to the
26following:

 

 

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1        (1) grain handling and processing, including grain
2    storage, drying, treatment, conditioning, mailing and
3    packaging;
4        (2) seed and feed grain development and processing;
5        (3) fruit and vegetable processing, including
6    preparation, canning and packaging;
7        (4) processing of livestock and livestock products,
8    dairy products, poultry and poultry products, fish or
9    apiarian products, including slaughter, shearing,
10    collecting, preparation, canning and packaging;
11        (5) fertilizer and agricultural chemical
12    manufacturing, processing, application and supplying;
13        (6) farm machinery, equipment and implement
14    manufacturing and supplying;
15        (7) manufacturing and supplying of agricultural
16    commodity processing machinery and equipment, including
17    machinery and equipment used in slaughter, treatment,
18    handling, collecting, preparation, canning or packaging of
19    agricultural commodities;
20        (8) farm building and farm structure manufacturing,
21    construction and supplying;
22        (9) construction, manufacturing, implementation,
23    supplying or servicing of irrigation, drainage and soil and
24    water conservation devices or equipment;
25        (10) fuel processing and development facilities that
26    produce fuel from agricultural commodities or byproducts;

 

 

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1        (11) facilities and equipment for processing and
2    packaging agricultural commodities specifically for
3    export;
4        (12) facilities and equipment for forestry product
5    processing and supplying, including sawmilling operations,
6    wood chip operations, timber harvesting operations, and
7    manufacturing of prefabricated buildings, paper, furniture
8    or other goods from forestry products;
9        (13) facilities and equipment for research and
10    development of products, processes and equipment for the
11    production, processing, preparation or packaging of
12    agricultural commodities and byproducts.
13    (aa) The term "asset" with respect to financing of any
14agricultural facility or any agribusiness, means, but is not
15limited to the following: cash crops or feed on hand; livestock
16held for sale; breeding stock; marketable bonds and securities;
17securities not readily marketable; accounts receivable; notes
18receivable; cash invested in growing crops; net cash value of
19life insurance; machinery and equipment; cars and trucks; farm
20and other real estate including life estates and personal
21residence; value of beneficial interests in trusts; government
22payments or grants; and any other assets.
23    (bb) The term "liability" with respect to financing of any
24agricultural facility or any agribusiness shall include, but
25not be limited to the following: accounts payable; notes or
26other indebtedness owed to any source; taxes; rent; amounts

 

 

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1owed on real estate contracts or real estate mortgages;
2judgments; accrued interest payable; and any other liability.
3    (cc) The term "Predecessor Authorities" means those
4authorities as described in Section 845-75.
5    (dd) The term "housing project" means a specific work or
6improvement located within the State or outside the State and
7undertaken to provide residential dwelling accommodations,
8including the acquisition, construction or rehabilitation of
9lands, buildings and community facilities and in connection
10therewith to provide nonhousing facilities which are part of
11the housing project, including land, buildings, improvements,
12equipment and all ancillary facilities for use for offices,
13stores, retirement homes, hotels, financial institutions,
14service, health care, education, recreation or research
15establishments, or any other commercial purpose which are or
16are to be related to a housing development, provided that any
17work or improvement located outside the State is owned,
18operated, leased or managed by an entity located within the
19State, or any entity affiliated with an entity located within
20the State.
21    (ee) The term "conservation project" means any project
22including the acquisition, construction, rehabilitation,
23maintenance, operation, or upgrade that is intended to create
24or expand open space or to reduce energy usage through
25efficiency measures. For the purpose of this definition, "open
26space" has the definition set forth under Section 10 of the

 

 

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1Illinois Open Land Trust Act.
2    (ff) The term "significant presence" means the existence
3within the State of the national or regional headquarters of an
4entity or group or such other facility of an entity or group of
5entities where a significant amount of the business functions
6are performed for such entity or group of entities.
7    (gg) The term "municipal bond issuer" means the State or
8any other state or commonwealth of the United States, or any
9unit of local government, school district, agency or
10instrumentality, office, department, division, bureau,
11commission, college or university thereof located in the State
12or any other state or commonwealth of the United States.
13    (hh) The term "municipal bond program project" means a
14program for the funding of the purchase of bonds, notes or
15other obligations issued by or on behalf of a municipal bond
16issuer.
17    (ii) The term "participating lender" means any trust
18company, bank, savings bank, credit union, merchant bank,
19investment bank, broker, investment trust, pension fund,
20building and loan association, savings and loan association,
21insurance company, venture capital company, or other
22institution approved by the Authority which provides a portion
23of the financing for a project.
24    (jj) The term "loan participation" means any loan in which
25the Authority co-operates with a participating lender to
26provide all or a portion of the financing for a project.

 

 

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1    (kk) The term "PACE Project" means an energy project as
2defined in Section 5 of the Property Assessed Clean Energy Act.
3(Source: P.A. 98-90, eff. 7-15-13; 98-104, eff. 7-22-13;
498-756, eff. 7-16-14; 99-180, eff. 7-29-15.)
 
5    (20 ILCS 3501/801-40)
6    Sec. 801-40. In addition to the powers otherwise authorized
7by law and in addition to the foregoing general corporate
8powers, the Authority shall also have the following additional
9specific powers to be exercised in furtherance of the purposes
10of this Act.
11    (a) The Authority shall have power (i) to accept grants,
12loans or appropriations from the federal government or the
13State, or any agency or instrumentality thereof, to be used for
14the operating expenses of the Authority, or for any purposes of
15the Authority, including the making of direct loans of such
16funds with respect to projects, and (ii) to enter into any
17agreement with the federal government or the State, or any
18agency or instrumentality thereof, in relationship to such
19grants, loans or appropriations.
20    (b) The Authority shall have power to procure and enter
21into contracts for any type of insurance and indemnity
22agreements covering loss or damage to property from any cause,
23including loss of use and occupancy, or covering any other
24insurable risk.
25    (c) The Authority shall have the continuing power to issue

 

 

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1bonds for its corporate purposes. Bonds may be issued by the
2Authority in one or more series and may provide for the payment
3of any interest deemed necessary on such bonds, of the costs of
4issuance of such bonds, of any premium on any insurance, or of
5the cost of any guarantees, letters of credit or other similar
6documents, may provide for the funding of the reserves deemed
7necessary in connection with such bonds, and may provide for
8the refunding or advance refunding of any bonds or for accounts
9deemed necessary in connection with any purpose of the
10Authority. The bonds may bear interest payable at any time or
11times and at any rate or rates, notwithstanding any other
12provision of law to the contrary, and such rate or rates may be
13established by an index or formula which may be implemented or
14established by persons appointed or retained therefor by the
15Authority, or may bear no interest or may bear interest payable
16at maturity or upon redemption prior to maturity, may bear such
17date or dates, may be payable at such time or times and at such
18place or places, may mature at any time or times not later than
1940 years from the date of issuance, may be sold at public or
20private sale at such time or times and at such price or prices,
21may be secured by such pledges, reserves, guarantees, letters
22of credit, insurance contracts or other similar credit support
23or liquidity instruments, may be executed in such manner, may
24be subject to redemption prior to maturity, may provide for the
25registration of the bonds, and may be subject to such other
26terms and conditions all as may be provided by the resolution

 

 

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1or indenture authorizing the issuance of such bonds. The holder
2or holders of any bonds issued by the Authority may bring suits
3at law or proceedings in equity to compel the performance and
4observance by any person or by the Authority or any of its
5agents or employees of any contract or covenant made with the
6holders of such bonds and to compel such person or the
7Authority and any of its agents or employees to perform any
8duties required to be performed for the benefit of the holders
9of any such bonds by the provision of the resolution
10authorizing their issuance, and to enjoin such person or the
11Authority and any of its agents or employees from taking any
12action in conflict with any such contract or covenant.
13Notwithstanding the form and tenor of any such bonds and in the
14absence of any express recital on the face thereof that it is
15non-negotiable, all such bonds shall be negotiable
16instruments. Pending the preparation and execution of any such
17bonds, temporary bonds may be issued as provided by the
18resolution. The bonds shall be sold by the Authority in such
19manner as it shall determine. The bonds may be secured as
20provided in the authorizing resolution by the receipts,
21revenues, income and other available funds of the Authority and
22by any amounts derived by the Authority from the loan agreement
23or lease agreement with respect to the project or projects; and
24bonds may be issued as general obligations of the Authority
25payable from such revenues, funds and obligations of the
26Authority as the bond resolution shall provide, or may be

 

 

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1issued as limited obligations with a claim for payment solely
2from such revenues, funds and obligations as the bond
3resolution shall provide. The Authority may grant a specific
4pledge or assignment of and lien on or security interest in
5such rights, revenues, income, or amounts and may grant a
6specific pledge or assignment of and lien on or security
7interest in any reserves, funds or accounts established in the
8resolution authorizing the issuance of bonds. Any such pledge,
9assignment, lien or security interest for the benefit of the
10holders of the Authority's bonds shall be valid and binding
11from the time the bonds are issued without any physical
12delivery or further act, and shall be valid and binding as
13against and prior to the claims of all other parties having
14claims against the Authority or any other person irrespective
15of whether the other parties have notice of the pledge,
16assignment, lien or security interest. As evidence of such
17pledge, assignment, lien and security interest, the Authority
18may execute and deliver a mortgage, trust agreement, indenture
19or security agreement or an assignment thereof. A remedy for
20any breach or default of the terms of any such agreement by the
21Authority may be by mandamus proceedings in any court of
22competent jurisdiction to compel the performance and
23compliance therewith, but the agreement may prescribe by whom
24or on whose behalf such action may be instituted. It is
25expressly understood that the Authority may, but need not,
26acquire title to any project with respect to which it exercises

 

 

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1its authority.
2    (d) With respect to the powers granted by this Act, the
3Authority may adopt rules and regulations prescribing the
4procedures by which persons may apply for assistance under this
5Act. Nothing herein shall be deemed to preclude the Authority,
6prior to the filing of any formal application, from conducting
7preliminary discussions and investigations with respect to the
8subject matter of any prospective application.
9    (e) The Authority shall have power to acquire by purchase,
10lease, gift or otherwise any property or rights therein from
11any person useful for its purposes, whether improved for the
12purposes of any prospective project, or unimproved. The
13Authority may also accept any donation of funds for its
14purposes from any such source. The Authority shall have no
15independent power of condemnation but may acquire any property
16or rights therein obtained upon condemnation by any other
17authority, governmental entity or unit of local government with
18such power.
19    (f) The Authority shall have power to develop, construct
20and improve either under its own direction, or through
21collaboration with any approved applicant, or to acquire
22through purchase or otherwise, any project, using for such
23purpose the proceeds derived from the sale of its bonds or from
24governmental loans or grants, and to hold title in the name of
25the Authority to such projects.
26    (g) The Authority shall have power to lease pursuant to a

 

 

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1lease agreement any project so developed and constructed or
2acquired to the approved tenant on such terms and conditions as
3may be appropriate to further the purposes of this Act and to
4maintain the credit of the Authority. Any such lease may
5provide for either the Authority or the approved tenant to
6assume initially, in whole or in part, the costs of
7maintenance, repair and improvements during the leasehold
8period. In no case, however, shall the total rentals from any
9project during any initial leasehold period or the total loan
10repayments to be made pursuant to any loan agreement, be less
11than an amount necessary to return over such lease or loan
12period (1) all costs incurred in connection with the
13development, construction, acquisition or improvement of the
14project and for repair, maintenance and improvements thereto
15during the period of the lease or loan; provided, however, that
16the rentals or loan repayments need not include costs met
17through the use of funds other than those obtained by the
18Authority through the issuance of its bonds or governmental
19loans; (2) a reasonable percentage additive to be agreed upon
20by the Authority and the borrower or tenant to cover a properly
21allocable portion of the Authority's general expenses,
22including, but not limited to, administrative expenses,
23salaries and general insurance, and (3) an amount sufficient to
24pay when due all principal of, interest and premium, if any on,
25any bonds issued by the Authority with respect to the project.
26The portion of total rentals payable under clause (3) of this

 

 

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1subsection (g) shall be deposited in such special accounts,
2including all sinking funds, acquisition or construction
3funds, debt service and other funds as provided by any
4resolution, mortgage or trust agreement of the Authority
5pursuant to which any bond is issued.
6    (h) The Authority has the power, upon the termination of
7any leasehold period of any project, to sell or lease for a
8further term or terms such project on such terms and conditions
9as the Authority shall deem reasonable and consistent with the
10purposes of the Act. The net proceeds from all such sales and
11the revenues or income from such leases shall be used to
12satisfy any indebtedness of the Authority with respect to such
13project and any balance may be used to pay any expenses of the
14Authority or be used for the further development, construction,
15acquisition or improvement of projects. In the event any
16project is vacated by a tenant prior to the termination of the
17initial leasehold period, the Authority shall sell or lease the
18facilities of the project on the most advantageous terms
19available. The net proceeds of any such disposition shall be
20treated in the same manner as the proceeds from sales or the
21revenues or income from leases subsequent to the termination of
22any initial leasehold period.
23    (i) The Authority shall have the power to make loans, or to
24purchase loan participations in loans made, to persons to
25finance a project, to enter into loan agreements or agreements
26with participating lenders with respect thereto, and to accept

 

 

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1guarantees from persons of its loans or the resultant evidences
2of obligations of the Authority.
3    (j) The Authority may fix, determine, charge and collect
4any premiums, fees, charges, costs and expenses, including,
5without limitation, any application fees, commitment fees,
6program fees, financing charges or publication fees from any
7person in connection with its activities under this Act.
8    (k) In addition to the funds established as provided
9herein, the Authority shall have the power to create and
10establish such reserve funds and accounts as may be necessary
11or desirable to accomplish its purposes under this Act and to
12deposit its available monies into the funds and accounts.
13    (l) At the request of the governing body of any unit of
14local government, the Authority is authorized to market such
15local government's revenue bond offerings by preparing bond
16issues for sale, advertising for sealed bids, receiving bids at
17its offices, making the award to the bidder that offers the
18most favorable terms or arranging for negotiated placements or
19underwritings of such securities. The Authority may, at its
20discretion, offer for concurrent sale the revenue bonds of
21several local governments. Sales by the Authority of revenue
22bonds under this Section shall in no way imply State guarantee
23of such debt issue. The Authority may require such financial
24information from participating local governments as it deems
25necessary in order to carry out the purposes of this subsection
26(1).

 

 

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1    (m) The Authority may make grants to any county to which
2Division 5-37 of the Counties Code is applicable to assist in
3the financing of capital development, construction and
4renovation of new or existing facilities for hospitals and
5health care facilities under that Act. Such grants may only be
6made from funds appropriated for such purposes from the Build
7Illinois Bond Fund.
8    (n) The Authority may establish an urban development action
9grant program for the purpose of assisting municipalities in
10Illinois which are experiencing severe economic distress to
11help stimulate economic development activities needed to aid in
12economic recovery. The Authority shall determine the types of
13activities and projects for which the urban development action
14grants may be used, provided that such projects and activities
15are broadly defined to include all reasonable projects and
16activities the primary objectives of which are the development
17of viable urban communities, including decent housing and a
18suitable living environment, and expansion of economic
19opportunity, principally for persons of low and moderate
20incomes. The Authority shall enter into grant agreements from
21monies appropriated for such purposes from the Build Illinois
22Bond Fund. The Authority shall monitor the use of the grants,
23and shall provide for audits of the funds as well as recovery
24by the Authority of any funds determined to have been spent in
25violation of this subsection (n) or any rule or regulation
26promulgated hereunder. The Authority shall provide technical

 

 

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1assistance with regard to the effective use of the urban
2development action grants. The Authority shall file an annual
3report to the General Assembly concerning the progress of the
4grant program.
5    (o) The Authority may establish a Housing Partnership
6Program whereby the Authority provides zero-interest loans to
7municipalities for the purpose of assisting in the financing of
8projects for the rehabilitation of affordable multi-family
9housing for low and moderate income residents. The Authority
10may provide such loans only upon a municipality's providing
11evidence that it has obtained private funding for the
12rehabilitation project. The Authority shall provide 3 State
13dollars for every 7 dollars obtained by the municipality from
14sources other than the State of Illinois. The loans shall be
15made from monies appropriated for such purpose from the Build
16Illinois Bond Fund. The total amount of loans available under
17the Housing Partnership Program shall not exceed $30,000,000.
18State loan monies under this subsection shall be used only for
19the acquisition and rehabilitation of existing buildings
20containing 4 or more dwelling units. The terms of any loan made
21by the municipality under this subsection shall require
22repayment of the loan to the municipality upon any sale or
23other transfer of the project.
24    (p) The Authority may award grants to universities and
25research institutions, research consortiums and other
26not-for-profit entities for the purposes of: remodeling or

 

 

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1otherwise physically altering existing laboratory or research
2facilities, expansion or physical additions to existing
3laboratory or research facilities, construction of new
4laboratory or research facilities or acquisition of modern
5equipment to support laboratory or research operations
6provided that such grants (i) be used solely in support of
7project and equipment acquisitions which enhance technology
8transfer, and (ii) not constitute more than 60 percent of the
9total project or acquisition cost.
10    (q) Grants may be awarded by the Authority to units of
11local government for the purpose of developing the appropriate
12infrastructure or defraying other costs to the local government
13in support of laboratory or research facilities provided that
14such grants may not exceed 40% of the cost to the unit of local
15government.
16    (r) In addition to the powers granted to the Authority
17under subsection (i), and in all cases supplemental to it, the
18The Authority may establish a direct loan program Direct Loan
19Program to make loans to, or may purchase participations in
20loans made by participating lenders to, individuals,
21partnerships, or corporations, or other business entities for
22the purpose of financing an industrial project, as defined in
23Section 801-10 of this Act. For the purposes of such program
24and not by way of limitation on any other program of the
25Authority, including, without limitation, programs established
26under subsection (i), the Authority shall have the power to

 

 

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1issue bonds, notes, or other evidences of indebtedness
2including commercial paper for purposes of providing a fund of
3capital from which it may make such loans. The Authority shall
4have the power to use any appropriations from the State made
5especially for the Authority's direct loan program, or moneys
6at any time held by the Authority under this Act outside the
7State treasury in the custody of either the Treasurer of the
8Authority or a trustee or depository appointed by the
9Authority, Direct Loan Program for additional capital to make
10such loans or purchase such loan participations, or for the
11purposes of reserve funds or pledged funds which secure the
12Authority's obligations of repayment of any bond, note or other
13form of indebtedness established for the purpose of providing
14capital for which it intends to make such loans or purchase
15such loan participations under the Direct Loan Program. For the
16purpose of obtaining such capital, the Authority may also enter
17into agreements with financial institutions, participating
18lenders, and other persons for the purpose of administering a
19loan participation program, selling loans or and developing a
20secondary market for such loans or loan participations. Loans
21made under the direct loan program specifically established
22under this subsection (r), including loans under such program
23made by participating lenders in which the Authority purchases
24a participation, Direct Loan Program may be in an amount not to
25exceed $600,000 $300,000 and shall be made for a portion of an
26industrial project which does not exceed 50% of the total

 

 

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1project. No loan may be made by the Authority unless approved
2by the affirmative vote of at least 8 members of the board. The
3Authority shall establish procedures and publish rules which
4shall provide for the submission, review, and analysis of each
5direct loan and loan participation application and which shall
6preserve the ability of each board member and the Executive
7Director, as applicable, to reach an individual business
8judgment regarding the propriety of making each direct loan or
9loan participation. The collective discretion of the board to
10approve or disapprove each loan shall be unencumbered. The
11Authority may establish and collect such fees and charges,
12determine and enforce such terms and conditions, and charge
13such interest rates as it determines to be necessary and
14appropriate to the successful administration of the direct loan
15program, including purchasing loan participations Direct Loan
16Program. The Authority may require such interests in collateral
17and such guarantees as it determines are necessary to protect
18project the Authority's interest in the repayment of the
19principal and interest of each loan and loan participation made
20under the direct loan program Direct Loan Program. The
21restrictions established under this subsection (r) shall not be
22applicable to any loan or loan participation made under
23subsection (i) or to any loan or loan participation made under
24any other Section of this Act.
25    (s) The Authority may guarantee private loans to third
26parties up to a specified dollar amount in order to promote

 

 

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1economic development in this State.
2    (t) The Authority may adopt rules and regulations as may be
3necessary or advisable to implement the powers conferred by
4this Act.
5    (u) The Authority shall have the power to issue bonds,
6notes or other evidences of indebtedness, which may be used to
7make loans to units of local government which are authorized to
8enter into loan agreements and other documents and to issue
9bonds, notes and other evidences of indebtedness for the
10purpose of financing the protection of storm sewer outfalls,
11the construction of adequate storm sewer outfalls, and the
12provision for flood protection of sanitary sewage treatment
13plans, in counties that have established a stormwater
14management planning committee in accordance with Section
155-1062 of the Counties Code. Any such loan shall be made by the
16Authority pursuant to the provisions of Section 820-5 to 820-60
17of this Act. The unit of local government shall pay back to the
18Authority the principal amount of the loan, plus annual
19interest as determined by the Authority. The Authority shall
20have the power, subject to appropriations by the General
21Assembly, to subsidize or buy down a portion of the interest on
22such loans, up to 4% per annum.
23    (v) The Authority may accept security interests as provided
24in Sections 11-3 and 11-3.3 of the Illinois Public Aid Code.
25    (w) Moral Obligation. In the event that the Authority
26determines that monies of the Authority will not be sufficient

 

 

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1for the payment of the principal of and interest on its bonds
2during the next State fiscal year, the Chairperson, as soon as
3practicable, shall certify to the Governor the amount required
4by the Authority to enable it to pay such principal of and
5interest on the bonds. The Governor shall submit the amount so
6certified to the General Assembly as soon as practicable, but
7no later than the end of the current State fiscal year. This
8subsection shall apply only to any bonds or notes as to which
9the Authority shall have determined, in the resolution
10authorizing the issuance of the bonds or notes, that this
11subsection shall apply. Whenever the Authority makes such a
12determination, that fact shall be plainly stated on the face of
13the bonds or notes and that fact shall also be reported to the
14Governor. In the event of a withdrawal of moneys from a reserve
15fund established with respect to any issue or issues of bonds
16of the Authority to pay principal or interest on those bonds,
17the Chairperson of the Authority, as soon as practicable, shall
18certify to the Governor the amount required to restore the
19reserve fund to the level required in the resolution or
20indenture securing those bonds. The Governor shall submit the
21amount so certified to the General Assembly as soon as
22practicable, but no later than the end of the current State
23fiscal year. The Authority shall obtain written approval from
24the Governor for any bonds and notes to be issued under this
25Section. In addition to any other bonds authorized to be issued
26under Sections 825-60, 825-65(e), 830-25 and 845-5, the

 

 

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1principal amount of Authority bonds outstanding issued under
2this Section 801-40(w) or under 20 ILCS 3850/1-80 or 30 ILCS
3360/2-6(c), which have been assumed by the Authority, shall not
4exceed $150,000,000. This subsection (w) shall in no way be
5applied to any bonds issued by the Authority on behalf of the
6Illinois Power Agency under Section 825-90 of this Act.
7    (x) The Authority may enter into agreements or contracts
8with any person necessary or appropriate to place the payment
9obligations of the Authority under any of its bonds in whole or
10in part on any interest rate basis, cash flow basis, or other
11basis desired by the Authority, including without limitation
12agreements or contracts commonly known as "interest rate swap
13agreements", "forward payment conversion agreements", and
14"futures", or agreements or contracts to exchange cash flows or
15a series of payments, or agreements or contracts, including
16without limitation agreements or contracts commonly known as
17"options", "puts", or "calls", to hedge payment, rate spread,
18or similar exposure; provided that any such agreement or
19contract shall not constitute an obligation for borrowed money
20and shall not be taken into account under Section 845-5 of this
21Act or any other debt limit of the Authority or the State of
22Illinois.
23    (y) The Authority shall publish summaries of projects and
24actions approved by the members of the Authority on its
25website. These summaries shall include, but not be limited to,
26information regarding the:

 

 

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1        (1) project;
2        (2) Board's action or actions;
3        (3) purpose of the project;
4        (4) Authority's program and contribution;
5        (5) volume cap;
6        (6) jobs retained;
7        (7) projected new jobs;
8        (8) construction jobs created;
9        (9) estimated sources and uses of funds;
10        (10) financing summary;
11        (11) project summary;
12        (12) business summary;
13        (13) ownership or economic disclosure statement;
14        (14) professional and financial information;
15        (15) service area; and
16        (16) legislative district.
17    The disclosure of information pursuant to this subsection
18shall comply with the Freedom of Information Act.
19(Source: P.A. 95-470, eff. 8-27-07; 95-481, eff. 8-28-07;
2095-876, eff. 8-21-08; 96-795, eff. 7-1-10 (see Section 5 of
21P.A. 96-793 for the effective date of changes made by P.A.
2296-795).)
 
23    (20 ILCS 3501/805-5)
24    Sec. 805-5. Findings and Declaration of Policy. It is
25hereby found and declared that a continuing need exists to

 

 

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1maintain and develop the State's economy; that there are
2significant barriers in the capital markets inhibiting the
3issuance by the Authority of industrial revenue bonds, loans,
4and State Guarantees to assist in financing industrial
5projects, PACE Projects, farmers, and agribusiness in the
6State, particularly for smaller firms; and that the
7establishment of the Industrial Revenue Bond Insurance Fund and
8the exercise by the Authority of the powers granted in this
9Article will promote economic development by widening the
10market for the Authority's revenue bonds, loans, PACE Projects,
11and State Guarantees.
12(Source: P.A. 96-897, eff. 5-24-10.)
 
13    (20 ILCS 3501/805-15)
14    Sec. 805-15. Industrial Project Insurance Fund. There is
15created the Industrial Project Insurance Fund, hereafter
16referred to in Sections 805-15 through 805-50 of this Act as
17the "Fund". The Treasurer shall have custody of the Fund, which
18shall be held outside of the State treasury, except that
19custody may be transferred to and held by any bank, trust
20company or other fiduciary with whom the Authority executes a
21trust agreement as authorized by paragraph (h) of Section
22805-20 of this Act. Any portion of the Fund against which a
23charge has been made, shall be held for the benefit of the
24holders of the loans or bonds insured under Section 805-20 of
25this Act or the holders of State Guarantees under Article 830

 

 

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1of this Act. There shall be deposited in the Fund such amounts,
2including but not limited to:
3    (a) All receipts of bond and loan insurance premiums;
4    (b) All proceeds of assets of whatever nature received by
5the Authority as a result of default or delinquency with
6respect to insured loans or bonds or State Guarantees with
7respect to which payments from the Fund have been made,
8including proceeds from the sale, disposal, lease or rental of
9real or personal property which the Authority may receive under
10the provisions of this Article but excluding the proceeds of
11insurance hereunder;
12    (c) All receipts from any applicable contract or agreement
13entered into by the Authority under paragraph (b) of Section
14805-20 of this Act;
15    (d) Any State appropriations, transfers of appropriations,
16or transfers of general obligation bond proceeds or other
17monies made available to the Fund. Amounts in the Fund shall be
18used in accordance with the provisions of this Article to
19satisfy any valid insurance claim payable therefrom and may be
20used for any other purpose determined by the Authority in
21accordance with insurance contract or contracts with financial
22institutions entered into pursuant to this Act, including
23without limitation protecting the interest of the Authority in
24industrial projects during periods of loan delinquency or upon
25loan default through the purchase of industrial projects in
26foreclosure proceedings or in lieu of foreclosure or through

 

 

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1any other means. Such amounts may also be used to pay
2administrative costs and expenses reasonably allocable to the
3activities in connection with the Fund and to pay taxes,
4maintenance, insurance, security and any other costs and
5expenses of bidding for, acquiring, owning, carrying and
6disposing of industrial projects or PACE Projects, which were
7financed with the proceeds of loans or insured bonds or loans ,
8including loans or loan participations made under subsections
9(i) or (r) of Section 801-40. In the case of a default in
10payment with respect to any loan, mortgage or other agreement
11so insured or otherwise representing possible loss to the
12Authority, the amount of the default shall immediately, and at
13all times during the continuance of such default, and to the
14extent provided in any applicable agreement, constitute a
15charge on the Fund. Any amounts in the Fund not currently
16needed to meet the obligations of the Fund may be invested as
17provided by law in obligations designated by the Authority, or
18used to make direct loans or purchase loan participations under
19subsections (i) or (r) of Section 801-40. All and all income
20from such investments shall become part of the Fund. All income
21from direct loans or loan participations made under subsections
22(i) or (r) of Section 801-40 shall become funds of the
23Authority. In making such investments, the Authority shall act
24with the care, skill, diligence and prudence under the
25circumstances of a prudent person acting in a like capacity in
26the conduct of an enterprise of like character and with like

 

 

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1aims. It shall diversify such investments of the Authority so
2as to minimize the risk of large losses, unless under the
3circumstances it is clearly not prudent to do so. Amounts in
4the Fund may also be used to satisfy State Guarantees under
5Article 830 of this Act.
6(Source: P.A. 96-897, eff. 5-24-10.)
 
7    (20 ILCS 3501/825-65)
8    Sec. 825-65. Clean Coal, Coal, Energy Efficiency, PACE, and
9Renewable Energy Project Financing.
10    (a) Findings and declaration of policy.
11        (i) It is hereby found and declared that Illinois has
12    abundant coal resources and, in some areas of Illinois, the
13    demand for power exceeds the generating capacity.
14    Incentives to encourage the construction of coal-fueled
15    electric generating plants in Illinois to ensure power
16    generating capacity into the future and to advance clean
17    coal technology and the use of Illinois coal are in the
18    best interests of all of the citizens of Illinois.
19        (ii) It is further found and declared that Illinois has
20    abundant potential and resources to develop renewable
21    energy resource projects and that there are many
22    opportunities to invest in cost-effective energy
23    efficiency projects throughout the State. The development
24    of those projects will create jobs and investment as well
25    as decrease environmental impacts and promote energy

 

 

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1    independence in Illinois. Accordingly, the development of
2    those projects is in the best interests of all of the
3    citizens of Illinois.
4        (iii) The Authority is authorized to issue bonds to
5    help finance Clean Coal, Coal, Energy Efficiency, PACE, and
6    Renewable Energy projects pursuant to this Section.
7    (b) Definitions.
8        (i) "Clean Coal Project" means (A) "clean coal
9    facility", as defined in Section 1-10 of the Illinois Power
10    Agency Act; (B) "clean coal SNG facility", as defined in
11    Section 1-10 of the Illinois Power Agency Act; (C)
12    transmission lines and associated equipment that transfer
13    electricity from points of supply to points of delivery for
14    projects described in this subsection (b); (D) pipelines or
15    other methods to transfer carbon dioxide from the point of
16    production to the point of storage or sequestration for
17    projects described in this subsection (b); or (E) projects
18    to provide carbon abatement technology for existing
19    generating facilities.
20        (ii) "Coal Project" means new electric generating
21    facilities or new gasification facilities, as defined in
22    Section 605-332 of the Department of Commerce and Economic
23    Opportunity Law of the Civil Administrative Code of
24    Illinois, which may include mine-mouth power plants,
25    projects that employ the use of clean coal technology,
26    projects to provide scrubber technology for existing

 

 

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1    energy generating plants, or projects to provide electric
2    transmission facilities or new gasification facilities.
3        (iii) "Energy Efficiency Project" means measures that
4    reduce the amount of electricity or natural gas required to
5    achieve a given end use, consistent with Section 1-10 of
6    the Illinois Power Agency Act. "Energy Efficiency Project"
7    also includes measures that reduce the total Btus of
8    electricity and natural gas needed to meet the end use or
9    uses consistent with Section 1-10 of the Illinois Power
10    Agency Act.
11        (iv) "Renewable Energy Project" means (A) a project
12    that uses renewable energy resources, as defined in Section
13    1-10 of the Illinois Power Agency Act; (B) a project that
14    uses environmentally preferable technologies and practices
15    that result in improvements to the production of renewable
16    fuels, including but not limited to, cellulosic
17    conversion, water and energy conservation, fractionation,
18    alternative feedstocks, or reduced greenhouse gas
19    emissions; (C) transmission lines and associated equipment
20    that transfer electricity from points of supply to points
21    of delivery for projects described in this subsection (b);
22    or (D) projects that use technology for the storage of
23    renewable energy, including, without limitation, the use
24    of battery or electrochemical storage technology for
25    mobile or stationary applications.
26    (c) Creation of reserve funds. The Authority may establish

 

 

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1and maintain one or more reserve funds to enhance bonds issued
2by the Authority for a Clean Coal Project, a Coal Project, an
3Energy Efficiency Project, a PACE Project, or a Renewable
4Energy Project. There may be one or more accounts in these
5reserve funds in which there may be deposited:
6        (1) any proceeds of the bonds issued by the Authority
7    required to be deposited therein by the terms of any
8    contract between the Authority and its bondholders or any
9    resolution of the Authority;
10        (2) any other moneys or funds of the Authority that it
11    may determine to deposit therein from any other source; and
12        (3) any other moneys or funds made available to the
13    Authority. Subject to the terms of any pledge to the owners
14    of any bonds, moneys in any reserve fund may be held and
15    applied to the payment of principal, premium, if any, and
16    interest of such bonds.
17    (d) Powers and duties. The Authority has the power:
18        (1) To issue bonds in one or more series pursuant to
19    one or more resolutions of the Authority for any Clean Coal
20    Project, Coal Project, Energy Efficiency Project, PACE
21    Project, or Renewable Energy Project authorized under this
22    Section, within the authorization set forth in subsection
23    (e).
24        (2) To provide for the funding of any reserves or other
25    funds or accounts deemed necessary by the Authority in
26    connection with any bonds issued by the Authority.

 

 

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1        (3) To pledge any funds of the Authority or funds made
2    available to the Authority that may be applied to such
3    purpose as security for any bonds or any guarantees,
4    letters of credit, insurance contracts or similar credit
5    support or liquidity instruments securing the bonds.
6        (4) To enter into agreements or contracts with third
7    parties, whether public or private, including, without
8    limitation, the United States of America, the State or any
9    department or agency thereof, to obtain any
10    appropriations, grants, loans or guarantees that are
11    deemed necessary or desirable by the Authority. Any such
12    guarantee, agreement or contract may contain terms and
13    provisions necessary or desirable in connection with the
14    program, subject to the requirements established by the
15    Act.
16        (4.5) To make loans under subsection (i) of Section
17    801-40 to finance loans for PACE Projects.
18        (5) To exercise such other powers as are necessary or
19    incidental to the foregoing.
20    (e) Clean Coal Project, Coal Project, Energy Efficiency
21Project, PACE Project, and Renewable Energy Project bond
22authorization and financing limits. In addition to any other
23bonds authorized to be issued under Sections 801-40(w), 825-60,
24830-25 and 845-5, the Authority may have outstanding, at any
25time, bonds for the purpose enumerated in this Section 825-65
26in an aggregate principal amount that shall not exceed

 

 

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1$3,000,000,000, subject to the following limitations: (i) up to
2$300,000,000 may be issued to finance projects, as described in
3clause (C) of subsection (b)(i) and clause (C) of subsection
4(b)(iv) of this Section 825-65; (ii) up to $500,000,000 may be
5issued to finance projects, as described in clauses (D) and (E)
6of subsection (b)(i) of this Section 825-65; (iii) up to
7$2,000,000,000 may be issued to finance Clean Coal Projects, as
8described in clauses (A) and (B) of subsection (b)(i) of this
9Section 825-65 and Coal Projects, as described in subsection
10(b)(ii) of this Section 825-65; and (iv) up to $2,000,000,000
11may be issued to finance Energy Efficiency Projects, as
12described in subsection (b)(iii) of this Section 825-65, and
13Renewable Energy Projects, as described in clauses (A), (B),
14and (D) of subsection (b)(iv) (iii) of this Section 825-65, and
15PACE Projects. An application for a loan financed from bond
16proceeds from a borrower or its affiliates for a Clean Coal
17Project, a Coal Project, Energy Efficiency Project, PACE
18Project, or a Renewable Energy Project may not be approved by
19the Authority for an amount in excess of $450,000,000 for any
20borrower or its affiliates. A Clean Coal Project, or Coal
21Project, or PACE Project must be located within the State. An
22Energy Efficiency Project may be located within the State or
23outside the State, provided that, if the Energy Efficiency
24Project is located outside of the State, it must be owned,
25operated, leased, or managed by an entity located within the
26State or any entity affiliated with an entity located within

 

 

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1the State. These bonds shall not constitute an indebtedness or
2obligation of the State of Illinois and it shall be plainly
3stated on the face of each bond that it does not constitute an
4indebtedness or obligation of the State of Illinois, but is
5payable solely from the revenues, income or other assets of the
6Authority pledged therefor.
7    (f) The bonding authority granted under this Section is in
8addition to and not limited by the provisions of Section 845-5.
9(Source: P.A. 100-201, eff. 8-18-17.)
 
10    (20 ILCS 3501/830-30)
11    Sec. 830-30. State Guarantees for existing debt.
12    (a) The Authority is authorized to issue State Guarantees
13for farmers' existing debts held by a lender. For the purposes
14of this Section, a farmer shall be a resident of Illinois, who
15is a principal operator of a farm or land, at least 50% of
16whose annual gross income is derived from farming and whose
17debt to asset ratio shall not be less than 40%, except in those
18cases where the applicant has previously used the guarantee
19program there shall be no debt to asset ratio or income
20restriction. For the purposes of this Section, debt to asset
21ratio shall mean the current outstanding liabilities of the
22farmer divided by the current outstanding assets of the farmer.
23The Authority shall establish the maximum permissible debt to
24asset ratio based on criteria established by the Authority.
25Lenders shall apply for the State Guarantees on forms provided

 

 

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1by the Authority and certify that the application and any other
2documents submitted are true and correct. The lender or
3borrower, or both in combination, shall pay an administrative
4fee as determined by the Authority. The applicant shall be
5responsible for paying any fees or charges involved in
6recording mortgages, releases, financing statements, insurance
7for secondary market issues and any other similar fees or
8charges as the Authority may require. The application shall at
9a minimum contain the farmer's name, address, present credit
10and financial information, including cash flow statements,
11financial statements, balance sheets, and any other
12information pertinent to the application, and the collateral to
13be used to secure the State Guarantee. In addition, the lender
14must agree to bring the farmer's debt to a current status at
15the time the State Guarantee is provided and must also agree to
16charge a fixed or adjustable interest rate which the Authority
17determines to be below the market rate of interest generally
18available to the borrower. If both the lender and applicant
19agree, the interest rate on the State Guarantee Loan can be
20converted to a fixed interest rate at any time during the term
21of the loan. Any State Guarantees provided under this Section
22(i) shall not exceed $500,000 per farmer, (ii) shall be set up
23on a payment schedule not to exceed 30 years, and shall be no
24longer than 30 years in duration, and (iii) shall be subject to
25an annual review and renewal by the lender and the Authority;
26provided that only one such State Guarantee shall be

 

 

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1outstanding per farmer at any one time. No State Guarantee
2shall be revoked by the Authority without a 90-day notice, in
3writing, to all parties. In those cases where the borrower has
4not previously used the guarantee program, the lender shall not
5call due any loan during the first 3 years for any reason
6except for lack of performance or insufficient collateral. The
7lender can review and withdraw or continue with the State
8Guarantee on an annual basis after the first 3 years of the
9loan, provided a 90-day notice, in writing, to all parties has
10been given.
11    (b) The Authority shall provide or renew a State Guarantee
12to a lender if:
13        (i) A fee equal to 25 basis points on the loan is paid
14    to the Authority on an annual basis by the lender.
15        (ii) The application provides collateral acceptable to
16    the Authority that is at least equal to the State's portion
17    of the Guarantee to be provided.
18        (iii) The lender assumes all responsibility and costs
19    for pursuing legal action on collecting any loan that is
20    delinquent or in default.
21        (iv) The lender is responsible for the first 15% of the
22    outstanding principal of the note for which the State
23    Guarantee has been applied.
24    (c) There is hereby created outside of the State treasury a
25special fund to be known as the Illinois Agricultural Loan
26Guarantee Fund. The State Treasurer shall be custodian of this

 

 

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1Fund. Any amounts in the Illinois Agricultural Loan Guarantee
2Fund not currently needed to meet the obligations of the Fund
3shall be invested as provided by law or used by the Authority
4to make direct loans or originate or purchase loan
5participations under subsections (i) or (r) of Section 801-40.
6All , and all interest earned from these investments shall be
7deposited into the Fund until the Fund reaches the maximum
8amount authorized in this Act; thereafter, interest earned
9shall be deposited into the General Revenue Fund. After
10September 1, 1989, annual investment earnings equal to 1.5% of
11the Fund shall remain in the Fund to be used for the purposes
12established in Section 830-40 of this Act. All earnings on
13direct loans or loan participations made by the Authority under
14subsections (i) or (r) of Section 801-40 with amounts in this
15Fund shall become funds of the Authority. The Authority is
16authorized to transfer to the Fund such amounts as are
17necessary to satisfy claims during the duration of the State
18Guarantee program to secure State Guarantees issued under this
19Section, provided that amounts to be paid from the Industrial
20Project Insurance Fund created under Article 805 of this Act
21may be paid by the Authority directly to satisfy claims and
22need not be deposited first into the Illinois Agricultural Loan
23Guarantee Fund. If for any reason the General Assembly fails to
24make an appropriation sufficient to meet these obligations,
25this Act shall constitute an irrevocable and continuing
26appropriation of an amount necessary to secure guarantees as

 

 

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1defaults occur and the irrevocable and continuing authority
2for, and direction to, the State Treasurer and the Comptroller
3to make the necessary transfers to the Illinois Agricultural
4Loan Guarantee Fund, as directed by the Governor, out of the
5General Revenue Fund. Within 30 days after November 15, 1985,
6the Authority may transfer up to $7,000,000 from available
7appropriations into the Illinois Agricultural Loan Guarantee
8Fund for the purposes of this Act. Thereafter, the Authority
9may transfer additional amounts into the Illinois Agricultural
10Loan Guarantee Fund to secure guarantees for defaults as
11defaults occur. In the event of default by the farmer, the
12lender shall be entitled to, and the Authority shall direct
13payment on, the State Guarantee after 90 days of delinquency.
14All payments by the Authority to satisfy claims against the
15State Guarantee shall be made, in whole or in part, from any of
16the following funds in such order and in such amounts as the
17Authority shall determine: (1) the Industrial Project
18Insurance Fund created under Article 805 of this Act (if the
19Authority exercises its discretion under subsection (j) of
20Section 805-20); (2) the Illinois Agricultural Loan Guarantee
21Fund; or (3) the Illinois Farmer and Agribusiness Loan
22Guarantee Fund. The Illinois Agricultural Loan Guarantee Fund
23shall guarantee receipt of payment of the 85% of the principal
24and interest owed on the State Guarantee Loan by the farmer to
25the guarantee holder, provided that payments by the Authority
26to satisfy claims against the State Guarantee shall be made in

 

 

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1accordance with the preceding sentence. It shall be the
2responsibility of the lender to proceed with the collecting and
3disposing of collateral on the State Guarantee under this
4Section, Section 830-35, Section 830-45, Section 830-50,
5Section 830-55, or Article 835 within 14 months of the time the
6State Guarantee is declared delinquent; provided, however,
7that the lender shall not collect or dispose of collateral on
8the State Guarantee without the express written prior approval
9of the Authority. If the lender does not dispose of the
10collateral within 14 months, the lender shall be liable to
11repay to the State interest on the State Guarantee equal to the
12same rate which the lender charges on the State Guarantee;
13provided, however, that the Authority may extend the 14-month
14period for a lender in the case of bankruptcy or extenuating
15circumstances. The Fund from which a payment is made shall be
16reimbursed for any amounts paid from that Fund under this
17Section, Section 830-35, Section 830-45, Section 830-50,
18Section 830-55, or Article 835 upon liquidation of the
19collateral. The Authority, by resolution of the Board, may
20borrow sums from the Fund and provide for repayment as soon as
21may be practical upon receipt of payments of principal and
22interest by a farmer. Money may be borrowed from the Fund by
23the Authority for the sole purpose of paying certain interest
24costs for farmers associated with selling a loan subject to a
25State Guarantee in a secondary market as may be deemed
26reasonable and necessary by the Authority.

 

 

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1    (d) Notwithstanding the provisions of this Section 830-30
2with respect to the farmers and lenders who may obtain State
3Guarantees, the Authority may promulgate rules establishing
4the eligibility of farmers and lenders to participate in the
5State guarantee program and the terms, standards, and
6procedures that will apply, when the Authority finds that
7emergency conditions in Illinois agriculture have created the
8need for State Guarantees pursuant to terms, standards, and
9procedures other than those specified in this Section.
10(Source: P.A. 99-509, eff. 6-24-16.)
 
11    (20 ILCS 3501/830-35)
12    Sec. 830-35. State Guarantees for loans to farmers and
13agribusiness; eligibility.
14    (a) The Authority is authorized to issue State Guarantees
15to lenders for loans to eligible farmers and agribusinesses for
16purposes set forth in this Section. For purposes of this
17Section, an eligible farmer shall be a resident of Illinois (i)
18who is principal operator of a farm or land, at least 50% of
19whose annual gross income is derived from farming, (ii) whose
20annual total sales of agricultural products, commodities, or
21livestock exceeds $20,000, and (iii) whose net worth does not
22exceed $500,000. An eligible agribusiness shall be that as
23defined in Section 801-10 of this Act. The Authority may
24approve applications by farmers and agribusinesses that
25promote diversification of the farm economy of this State

 

 

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1through the growth and development of new crops or livestock
2not customarily grown or produced in this State or that
3emphasize a vertical integration of grain or livestock produced
4or raised in this State into a finished agricultural product
5for consumption or use. "New crops or livestock not customarily
6grown or produced in this State" shall not include corn,
7soybeans, wheat, swine, or beef or dairy cattle. "Vertical
8integration of grain or livestock produced or raised in this
9State" shall include any new or existing grain or livestock
10grown or produced in this State. Lenders shall apply for the
11State Guarantees on forms provided by the Authority, certify
12that the application and any other documents submitted are true
13and correct, and pay an administrative fee as determined by the
14Authority. The applicant shall be responsible for paying any
15fees or charges involved in recording mortgages, releases,
16financing statements, insurance for secondary market issues
17and any other similar fees or charges as the Authority may
18require. The application shall at a minimum contain the
19farmer's or agribusiness' name, address, present credit and
20financial information, including cash flow statements,
21financial statements, balance sheets, and any other
22information pertinent to the application, and the collateral to
23be used to secure the State Guarantee. In addition, the lender
24must agree to charge an interest rate, which may vary, on the
25loan that the Authority determines to be below the market rate
26of interest generally available to the borrower. If both the

 

 

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1lender and applicant agree, the interest rate on the State
2Guarantee Loan can be converted to a fixed interest rate at any
3time during the term of the loan. Any State Guarantees provided
4under this Section (i) shall not exceed $500,000 per farmer or
5an amount as determined by the Authority on a case-by-case
6basis for an agribusiness, (ii) shall not exceed a term of 15
7years, and (iii) shall be subject to an annual review and
8renewal by the lender and the Authority; provided that only one
9such State Guarantee shall be made per farmer or agribusiness,
10except that additional State Guarantees may be made for
11purposes of expansion of projects financed in part by a
12previously issued State Guarantee. No State Guarantee shall be
13revoked by the Authority without a 90-day notice, in writing,
14to all parties. The lender shall not call due any loan for any
15reason except for lack of performance, insufficient
16collateral, or maturity. A lender may review and withdraw or
17continue with a State Guarantee on an annual basis after the
18first 5 years following closing of the loan application if the
19loan contract provides for an interest rate that shall not
20vary. A lender shall not withdraw a State Guarantee if the loan
21contract provides for an interest rate that may vary, except
22for reasons set forth herein.
23    (b) The Authority shall provide or renew a State Guarantee
24to a lender if:
25        (i) A fee equal to 25 basis points on the loan is paid
26    to the Authority on an annual basis by the lender.

 

 

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1        (ii) The application provides collateral acceptable to
2    the Authority that is at least equal to the State's portion
3    of the Guarantee to be provided.
4        (iii) The lender assumes all responsibility and costs
5    for pursuing legal action on collecting any loan that is
6    delinquent or in default.
7        (iv) The lender is responsible for the first 15% of the
8    outstanding principal of the note for which the State
9    Guarantee has been applied.
10    (c) There is hereby created outside of the State treasury a
11special fund to be known as the Illinois Farmer and
12Agribusiness Loan Guarantee Fund. The State Treasurer shall be
13custodian of this Fund. Any amounts in the Fund not currently
14needed to meet the obligations of the Fund shall be invested as
15provided by law, or used by the Authority to make direct loans
16or originate or purchase loan participations under subsections
17(i) or (r) of Section 801-40. All and all interest earned from
18these investments shall be deposited into the Fund until the
19Fund reaches the maximum amounts authorized in this Act;
20thereafter, interest earned shall be deposited into the General
21Revenue Fund. After September 1, 1989, annual investment
22earnings equal to 1.5% of the Fund shall remain in the Fund to
23be used for the purposes established in Section 830-40 of this
24Act. All earnings on direct loans or loan participations made
25by the Authority under subsections (i) or (r) of Section 801-40
26with amounts in this Fund shall become funds of the Authority.

 

 

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1The Authority is authorized to transfer such amounts as are
2necessary to satisfy claims from available appropriations and
3from fund balances of the Farm Emergency Assistance Fund as of
4June 30 of each year to the Illinois Farmer and Agribusiness
5Loan Guarantee Fund to secure State Guarantees issued under
6this Section, Sections 830-30, 830-45, 830-50, and 830-55, and
7Article 835 of this Act. Amounts to be paid from the Industrial
8Project Insurance Fund created under Article 805 of this Act
9may be paid by the Authority directly to satisfy claims and
10need not be deposited first into the Illinois Farmer and
11Agribusiness Loan Guarantee Fund. If for any reason the General
12Assembly fails to make an appropriation sufficient to meet
13these obligations, this Act shall constitute an irrevocable and
14continuing appropriation of an amount necessary to secure
15guarantees as defaults occur and the irrevocable and continuing
16authority for, and direction to, the State Treasurer and the
17Comptroller to make the necessary transfers to the Illinois
18Farmer and Agribusiness Loan Guarantee Fund, as directed by the
19Governor, out of the General Revenue Fund. In the event of
20default by the borrower on State Guarantee Loans under this
21Section, Section 830-45, Section 830-50, or Section 830-55, the
22lender shall be entitled to, and the Authority shall direct
23payment on, the State Guarantee after 90 days of delinquency.
24All payments by the Authority to satisfy claims against the
25State Guarantee shall be made, in whole or in part, from any of
26the following funds in such order and in such amounts as the

 

 

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1Authority shall determine: (1) the Industrial Project
2Insurance Fund created under Article 805 of this Act (if the
3Authority exercises its discretion under subsection (j) of
4Section 805-20); (2) the Illinois Farmer and Agribusiness Loan
5Guarantee Fund; or (3) the Illinois Farmer and Agribusiness
6Loan Guarantee Fund. It shall be the responsibility of the
7lender to proceed with the collecting and disposing of
8collateral on the State Guarantee under this Section, Section
9830-45, Section 830-50, or Section 830-55 within 14 months of
10the time the State Guarantee is declared delinquent. If the
11lender does not dispose of the collateral within 14 months, the
12lender shall be liable to repay to the State interest on the
13State Guarantee equal to the same rate that the lender charges
14on the State Guarantee, provided that the Authority shall have
15the authority to extend the 14-month period for a lender in the
16case of bankruptcy or extenuating circumstances. The Fund shall
17be reimbursed for any amounts paid under this Section, Section
18830-30, Section 830-45, Section 830-50, Section 830-55, or
19Article 835 upon liquidation of the collateral. The Authority,
20by resolution of the Board, may borrow sums from the Fund and
21provide for repayment as soon as may be practical upon receipt
22of payments of principal and interest by a borrower on State
23Guarantee Loans under this Section, Section 830-30, Section
24830-45, Section 830-50, Section 830-55, or Article 835. Money
25may be borrowed from the Fund by the Authority for the sole
26purpose of paying certain interest costs for borrowers

 

 

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1associated with selling a loan subject to a State Guarantee
2under this Section, Section 830-30, Section 830-45, Section
3830-50, Section 830-55, or Article 835 in a secondary market as
4may be deemed reasonable and necessary by the Authority.
5    (d) Notwithstanding the provisions of this Section 830-35
6with respect to the farmers, agribusinesses, and lenders who
7may obtain State Guarantees, the Authority may promulgate rules
8establishing the eligibility of farmers, agribusinesses, and
9lenders to participate in the State Guarantee program and the
10terms, standards, and procedures that will apply, when the
11Authority finds that emergency conditions in Illinois
12agriculture have created the need for State Guarantees pursuant
13to terms, standards, and procedures other than those specified
14in this Section.
15(Source: P.A. 99-509, eff. 6-24-16.)
 
16    (20 ILCS 3501/830-55)
17    Sec. 830-55. Working Capital Loan Guarantee Program.
18    (a) The Authority is authorized to issue State Guarantees
19to lenders for loans to finance needed input costs related to
20and in connection with planting and raising agricultural crops
21and commodities in Illinois. Eligible input costs include, but
22are not limited to, fertilizer, chemicals, feed, seed, fuel,
23parts, and repairs. At the discretion of the Authority, the
24farmer, producer, or agribusiness must be able to provide the
25originating lender with a first lien on the proposed crop or

 

 

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1commodity to be raised and an assignment of Federal Crop
2Insurance sufficient to secure the Working Capital Loan.
3Additional collateral may be required as deemed necessary by
4the lender and the Authority.
5    For the purposes of this Section, an eligible farmer,
6producer, or agribusiness is a resident of Illinois who is at
7least 18 years of age and who is a principal operator of a farm
8or land, who derives at least 50% of annual gross income from
9farming, and whose debt to asset ratio is not less than 40%.
10For the purposes of this Section, debt to asset ratio means
11current outstanding liabilities, including any debt to be
12financed or refinanced under this Section 830-55, divided by
13current outstanding assets. The Authority shall establish the
14maximum permissible debt to asset ratio based on criteria
15established by the Authority. Lenders shall apply for the State
16Guarantees on forms provided by the Authority and certify that
17the application and any other documents submitted are true and
18correct. The lender or borrower, or both in combination, shall
19pay an administrative fee as determined by the Authority. The
20applicant shall be responsible for paying any fee or charge
21involved in recording mortgages, releases, financing
22statements, insurance for secondary market issues, and any
23other similar fee or charge that the Authority may require. The
24application shall at a minimum contain the borrower's name,
25address, present credit and financial information, including
26cash flow statements, financial statements, balance sheets,

 

 

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1and any other information pertinent to the application, and the
2collateral to be used to secure the State Guarantee. In
3addition, the borrower must certify to the Authority that, at
4the time the State Guarantee is provided, the borrower will not
5be delinquent in the repayment of any debt. The lender must
6agree to charge a fixed or adjustable interest rate that the
7Authority determines to be below the market rate of interest
8generally available to the borrower. If both the lender and
9applicant agree, the interest rate on the State guaranteed loan
10can be converted to a fixed interest rate at any time during
11the term of the loan. State Guarantees provided under this
12Section (i) shall not exceed $250,000 per borrower, (ii) shall
13be repaid annually, and (iii) shall be subject to an annual
14review and renewal by the lender and the Authority. The State
15Guarantee may be renewed annually, for a period not to exceed 3
16total years per State Guarantee, if the borrower meets
17financial criteria and other conditions, as established by the
18Authority. A farmer or agribusiness may use this program more
19than once provided the aggregate principal amount of State
20Guarantees under this Section to that farmer or agribusiness
21does not exceed $250,000 annually. No State Guarantee shall be
22revoked by the Authority without a 90-day notice, in writing,
23to all parties.
24    (b) The Authority shall provide a State Guarantee to a
25lender if:
26        (i) The borrower pays to the Authority a fee equal to

 

 

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1    100 basis points on the loan.
2        (ii) The application provides collateral acceptable to
3    the Authority that is at least equal to the State
4    Guarantee.
5        (iii) The lender assumes all responsibility and costs
6    for pursuing legal action on collecting any loan that is
7    delinquent or in default.
8        (iv) The lender is at risk for the first 15% of the
9    outstanding principal of the note for which the State
10    Guarantee is provided.
11    (c) The Illinois Agricultural Loan Guarantee Fund, the
12Illinois Farmer and Agribusiness Loan Guarantee Fund, and the
13Industrial Project Insurance Fund may be used to secure State
14Guarantees issued under this Section as provided in Section
15830-30, Section 830-35, and subsection (j) of Section 805-20,
16respectively, or to make direct loans or purchase loan
17participations under subsections (i) or (r) of Section 801-40.
18If the Authority exercises its discretion under subsection (j)
19of Section 805-20 to secure a State Guarantee with the
20Industrial Project Insurance Fund and also exercises its
21discretion under this subsection to secure the same State
22Guarantee with the Illinois Agricultural Loan Guarantee Fund,
23the Illinois Farmer and Agribusiness Loan Guarantee Fund, or
24both, all payments by the Authority to satisfy claims against
25the State Guarantee shall be made from the Industrial Project
26Insurance Fund, the Illinois Agricultural Loan Guarantee Fund,

 

 

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1or the Illinois Farmer and Agribusiness Loan Guarantee Fund, as
2applicable, in such order and in such amounts as the Authority
3shall determine.
4    (d) Notwithstanding the provisions of this Section 830-55
5with respect to the borrowers and lenders who may obtain State
6Guarantees, the Authority may promulgate rules establishing
7the eligibility of borrowers and lenders to participate in the
8State Guarantee program and the terms, standards, and
9procedures that will apply, when the Authority finds that
10emergency conditions in Illinois agriculture have created the
11need for State Guarantees pursuant to terms, standards, and
12procedures other than those specified in this Section.
13(Source: P.A. 99-509, eff. 6-24-16.)
 
14    (20 ILCS 3501/845-75)
15    Sec. 845-75. Transfer of functions from previously
16existing authorities to the Illinois Finance Authority.
17    (a) The Illinois Finance Authority created by the Illinois
18Finance Authority Act shall succeed to, assume and exercise all
19rights, powers, duties and responsibilities formerly exercised
20by the following Authorities and entities (herein called the
21"Predecessor Authorities") prior to the abolition of the
22Predecessor Authorities by this Act:
23        The Illinois Development Finance Authority
24        The Illinois Farm Development Authority
25        The Illinois Health Facilities Authority

 

 

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

 

 

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1provisions of the Illinois Research Park Authority Act, as the
2text of that Act existed on December 31, 2003, notwithstanding
3the fact that Public Act 88-669, which created the Illinois
4Research Park Authority Act, has been held to be
5unconstitutional as a violation of the single subject clause of
6the Illinois Constitution in People v. Olender, Docket No.
798932, opinion filed December 15, 2005.
8    (d) The enactment of this amendatory Act of the 100th
9General Assembly shall not affect any right accrued or
10liability incurred prior to its enactment, including the
11validity or enforceability of any prior action taken by the
12Illinois Finance Authority with respect to loans made, or loan
13participations purchased, by the Authority under subsections
14(i) or (r) of Section 801-40.
15(Source: P.A. 93-205, eff. 1-1-04; 94-960, eff. 6-27-06.)
 
16    Section 99. Effective date. This Act takes effect upon
17becoming law.