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91_SB1924
LRB9110416MWgc
1 AN ACT in relation to public airports.
2 Be it enacted by the People of the State of Illinois,
3 represented in the General Assembly:
4 Section 5. The State Finance Act is amended by changing
5 Section 8.36 as follows:
6 (30 ILCS 105/8.36)
7 Sec. 8.36. Airport Land Loan Revolving Fund;
8 Transportation Bond, Series B Fund. Appropriations for loans
9 to public airport owners by the Department of Transportation
10 pursuant to Section 34b of the Illinois Aeronautics Act shall
11 be payable from the Airport Land Loan Revolving Fund or the
12 Transportation Bond, Series B Fund.
13 (Source: P.A. 91-543, eff. 8-14-99.)
14 Section 10. The General Obligation Bond Act is amended
15 by changing Section 13 as follows:
16 (30 ILCS 330/13) (from Ch. 127, par. 663)
17 Sec. 13. Appropriation of Proceeds from Sale of Bonds.
18 (a) At all times, the proceeds from the sale of Bonds
19 issued pursuant to this Act are subject to appropriation by
20 the General Assembly and may be obligated or expended only
21 with the written approval of the Governor, in such amounts,
22 at such times, and for such purposes as the respective State
23 agencies, as defined in Section 1-7 of the Illinois State
24 Auditing Act, as amended, deem necessary or desirable for the
25 specific purposes contemplated in Sections 2 through 8 of
26 this Act.
27 (b) Proceeds from the sale of Bonds for the purpose of
28 development of coal and alternative forms of energy shall be
29 expended in such amounts and at such times as the Department
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1 of Commerce and Community Affairs, with the advice and
2 recommendation of the Illinois Coal Development Board for
3 coal development projects, may deem necessary and desirable
4 for the specific purpose contemplated by Section 7 of this
5 Act. In considering the approval of projects to be funded,
6 the Department of Commerce and Community Affairs shall give
7 special consideration to projects designed to remove sulfur
8 and other pollutants in the preparation and utilization of
9 coal, and in the use and operation of electric utility
10 generating plants and industrial facilities which utilize
11 Illinois coal as their primary source of fuel.
12 (c) Except as provided in subsection (d), any moneys
13 monies received by any officer or employee of the State
14 representing a reimbursement of expenditures previously paid
15 from general obligation bond proceeds shall be deposited into
16 the General Obligation Bond Retirement and Interest Fund
17 authorized in Section 14 of this Act.
18 (d) All moneys representing repayments for loans made
19 from the Transportation Bond, Series B Fund to public airport
20 owners as part of the Airport Land Loan Program under Section
21 34b of the Illinois Aeronautics Act shall be deposited into
22 the Airport Land Loan Revolving Fund.
23 (Source: P.A. 89-445, eff. 2-7-96; 90-348, eff. 1-1-98.)
24 Section 15. The Illinois Aeronautics Act is amended by
25 changing 34b as follows:
26 (620 ILCS 5/34b)
27 Sec. 34b. Airport Land Loan Program.
28 (a) The Department may make loans to public airport
29 owners for the purchase of any real estate interests as may
30 be needed for essential airport purposes, including future
31 needs, subject to the following conditions:
32 (1) loans may be made only to public airport owners
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1 that are operating an airport as of January 1, 1999; and
2 (2) loans may not be made for airports that provide
3 scheduled commercial air service in counties of greater
4 than 5,000,000 population. The Airport Land Loan
5 Revolving Fund may be financed with repayments of loans
6 from the Transportation Bond, Series B Fund as part of
7 the program created in this Section. The Loans may also
8 be made are payable from the Airport Land Loan Revolving
9 Fund, subject to appropriation. All repayments of loans
10 made pursuant to this Section, including interest thereon
11 and penalties, shall be deposited in the Airport Land
12 Loan Revolving Fund. The Treasurer shall deposit all
13 investment earnings arising from balances in the Airport
14 Land Loan Revolving Fund in that Fund.
15 (b) All loans under this Section shall be made by
16 contract between the Department and the public airport owner,
17 which contract shall include the following provisions:
18 (1) The annual rate of interest shall be 2 percent
19 below the Prime Rate charged by banks, as published by
20 the Federal Reserve Board, in effect at the time the
21 Department approves the loan, but in no event shall less
22 than 2 percent be charged.
23 (2) The term of any loan shall not exceed five
24 years, but it may be for less by mutual agreement.
25 (3) Loan payments shall be scheduled in equal
26 amounts for the periods determined under paragraph (4) of
27 this Section. The loan payments shall be calculated so
28 that the loan is completely repaid, with interest, on
29 outstanding balances, by the end of the term determined
30 under paragraph (2) of this Section. There shall be no
31 penalty for early payment ahead of the payment schedule.
32 (4) The period of loan payments shall be annual,
33 unless by mutual agreement a period of less than one year
34 is chosen.
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1 (5) The loan shall be secured with the land
2 purchased, in whole or in part, with the loan and
3 considered as collateral. The public airport owner shall
4 assign a first priority interest in the property to the
5 State.
6 (6) If the loan payment is not made within 15 days
7 after the scheduled date determined under paragraph (3)
8 of this Section, a penalty of 10% of the payment shall be
9 assessed. If 30 days after the scheduled payment date no
10 payment has been received, the loan shall be considered
11 in default.
12 (7) As soon as a loan is considered in default, the
13 Department shall notify the public airport owner and
14 attempt to enter into a renegotiation of the loan payment
15 amounts and schedule determined under paragraph (3) of
16 this Section. In no case shall the term of the loan be
17 extended beyond the initial term determined under
18 paragraph (2) of this Section; nor shall the interest
19 rate be lowered nor any interest be forgiven. If a
20 renegotiation of loan payment amounts and schedule is
21 obtained to the Department's satisfaction within 30 days
22 of notification of default, then the new payment schedule
23 shall replace the one determined by paragraph (3) of this
24 Section and shall be used to measure compliance with the
25 loan for purposes of default. If after 30 days of
26 notification of default the Department has not obtained a
27 renegotiation to its satisfaction, the Department shall
28 declare the loan balance due and payable immediately. If
29 the public airport owner cannot immediately pay the
30 balance of the loan, the Department shall proceed to
31 foreclose.
32 (c) The Department may promulgate any rules that it
33 finds appropriate to implement this Airport Land Loan
34 Program.
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1 (d) The Airport Land Loan Revolving Fund is created in
2 the State Treasury.
3 (Source: P.A. 91-543, eff. 8-14-99.)
4 Section 99. Effective date. This Act takes effect upon
5 becoming law.