(20 ILCS 3501/805-15)
Industrial Project Insurance Fund.
There is created the
Industrial Project Insurance Fund, hereafter referred to in
through 805-50 of this Act as the "Fund". The Treasurer shall have custody of
Fund, which shall be held outside of the State treasury, except that custody
be transferred to and held by any bank, trust company or other fiduciary with
whom the Authority executes a trust agreement as authorized by paragraph (h) of
Section 805-20 of this Act. Any portion of the Fund against which a charge has
been made, shall be held for the benefit of the holders of the loans or bonds
Section 805-20 of this Act or the holders of State Guarantees under Article 830 of this Act.
There shall be deposited in the Fund such amounts, including but not limited
(a) All receipts of bond and loan insurance premiums;
(b) All proceeds of assets of whatever nature received by the Authority as a
result of default or delinquency with respect to insured loans or bonds or State Guarantees with
respect to which payments from the Fund have been made, including proceeds from
the sale, disposal, lease or rental of real or personal property which the
Authority may receive under the provisions of
this Article but excluding the proceeds of insurance hereunder;
(c) All receipts from any applicable contract or agreement entered into by
the Authority under paragraph (b) of Section 805-20 of this Act;
(d) Any State appropriations, transfers of appropriations, or transfers of
general obligation bond proceeds or other monies made available to the Fund.
Amounts in the Fund shall be used in accordance with the provisions of
this Article to satisfy any valid insurance claim payable
therefrom and may be used for any other purpose determined by the Authority in
accordance with insurance contract or contracts with financial institutions
entered into pursuant to this Act, including without limitation protecting the
interest of the Authority in industrial projects during periods of loan
delinquency or upon loan default through the purchase of industrial projects in
foreclosure proceedings or in lieu of foreclosure or through any other means.
Such amounts may also be used to pay administrative costs and expenses
reasonably allocable to the activities in connection with the Fund and to pay
taxes, maintenance, insurance, security and any other costs and expenses of
bidding for, acquiring, owning, carrying and disposing of industrial projects
which were financed with the proceeds of insured bonds or loans. In the case of
a default in payment with respect to any loan, mortgage or other agreement so
insured, the amount of the default shall immediately, and at all times during
the continuance of such default, and to the extent provided in any applicable
agreement, constitute a charge on the Fund.
Any amounts in the Fund not currently needed to meet the obligations of the
Fund may be invested as provided by law in obligations designated by the
and all income from such investments shall become part of the Fund. In making
such investments, the Authority shall act with the care, skill, diligence and
prudence under the circumstances of a prudent person acting in a like capacity
in the conduct of an enterprise of like character and with like aims. It shall
diversify such investments of the Authority so as to minimize the risk of large
losses, unless under the circumstances it is clearly not prudent to do so.
Amounts in the Fund may also be used to satisfy State Guarantees under Article 830 of this Act.
(Source: P.A. 96-897, eff. 5-24-10.)