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92_SB1010
LRB9204118MWdvB
1 AN ACT concerning consolidation of authorities.
2 Be it enacted by the People of the State of Illinois,
3 represented in the General Assembly:
4 ARTICLE 1
5 GENERAL PROVISIONS
6 Section 1-1. Short Title. This Act may be cited as the
7 Illinois State Finance Authority Act.
8 Section 1-5. Findings and declaration of policy. The
9 General Assembly hereby finds, determines and declares:
10 (a) that there are a number of existing State
11 authorities authorized to issue bonds to alleviate the
12 conditions and promote the objectives set forth below; and to
13 provide a stronger, better coordinated development effort, it
14 is determined to be in the interest of promoting the health,
15 safety, morals and general welfare of all the people of the
16 State to consolidate certain of such existing authorities
17 into one finance authority;
18 (b) that involuntary unemployment affects the health,
19 safety, morals and general welfare of the people of the State
20 of Illinois;
21 (c) that the economic burdens resulting from involuntary
22 unemployment fall in part upon the State in the form of
23 public assistance and reduced tax revenues, and in the event
24 the unemployed worker and his family migrate elsewhere to
25 find work, may also fall upon the municipalities and other
26 taxing districts within the areas of unemployment in the form
27 of reduced tax revenues, thereby endangering their financial
28 ability to support necessary governmental services for their
29 remaining inhabitants;
30 (d) that a vigorous growing economy is the basic source
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1 of job opportunities;
2 (e) that protection against involuntary unemployment,
3 its economic burdens and the spread of economic stagnation
4 can best be provided by promoting, attracting, stimulating
5 and revitalizing industry, manufacturing and commerce in the
6 State;
7 (f) that the State has a responsibility to help create a
8 favorable climate for new and improved job opportunities for
9 its citizens by encouraging the development of commercial
10 businesses and industrial and manufacturing plants within the
11 State;
12 (g) that increased availability of funds for
13 construction of new facilities and the expansion and
14 improvement of existing facilities for industrial, commercial
15 and manufacturing facilities will provide for new and
16 continued employment in the construction industry and
17 alleviate the burden of unemployment.
18 (h) that as a result of public actions involving
19 highways, public facilities and urban renewal projects and as
20 a result of the spread of slum conditions and blight to
21 formerly sound neighborhoods and as a result of high costs of
22 heating dwelling units, and as a result of the shortage of
23 and high cost of financing for housing, there exists within
24 Illinois a serious shortage, of decent, safe, and sanitary
25 housing available at low and moderate rentals to persons and
26 families of low and moderate income. This shortage is
27 inimical to the safety, health, morals and welfare of the
28 residents of this State and the sound growth of its
29 communities. Private enterprise and investment, without the
30 assistance contemplated in this Act, is not disposed to nor
31 can it economically achieve the needed construction of
32 decent, safe and sanitary housing at rentals which persons
33 and families of low and moderate income can afford, nor is it
34 disposed nor can it so achieve the urgently needed
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1 rehabilitation of existing housing or the provision of
2 existing housing to those persons and families at those
3 rentals. It is, therefore, imperative that the cost of
4 mortgage financing, a major factor materially affecting
5 rental levels in housing built by private enterprise, be made
6 lower in order to reduce rental levels for low and moderate
7 income persons and families; that the supply of housing for
8 persons and families displaced by public action or natural
9 disaster be increased; and that private enterprise be
10 encouraged to acquire, build and rehabilitate housing which
11 will help prevent the recurrence of slum conditions and
12 assist in their permanent elimination by housing persons of
13 varied economic means in the same structures and
14 neighborhoods.
15 (i) that the serious shortage of decent, safe and
16 sanitary housing in the State of Illinois is in large measure
17 caused by recurring critical shortages of funds in private
18 lending institutions available for residential mortgages at
19 reasonable interest rates. These shortages have contributed
20 to serious reductions in construction starts of new
21 residential units and in rehabilitation of existing housing.
22 The unaided operations of private enterprise have not met and
23 cannot consistently meet the need for increased funds for
24 residential mortgage financing.
25 (j) that urban growth in this State is not taking place
26 in an efficient and well-planned manner. Many existing and
27 planned industrial and commercial facilities are not easily
28 accessible to the places of residence of substantial numbers
29 of unemployed persons. The unaided efforts of private
30 enterprise have not met and cannot meet the needs of
31 providing residential dwellings in conjunction with or easily
32 accessible to such industrial and commercial facilities due
33 to problems encountered in assembling suitable building
34 sites, the lack of adequate public services, the
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1 unavailability of private capital for development in such
2 areas, and the inability of private enterprise alone to plan,
3 finance and coordinate industrial and commercial development
4 with residential development for persons and families of low
5 and moderate income and with public services and mass
6 transportation facilities.
7 (k) that the development and provision of decent, safe
8 and sanitary housing available at low and moderate rentals to
9 persons and families of low and moderate income is being
10 adversely affected, in various areas, by the failure of those
11 areas to have adequate commercial facilities to serve the
12 areas in which such housing may be provided under this Act.
13 It is further found and declared that the coordinated
14 development of commercial facilities in conjunction with
15 housing facilities can assist in providing decent, safe and
16 sanitary housing available at low and moderate rentals to
17 persons and families of low and moderate income. Moreover,
18 the provision of housing related commercial facilities will
19 serve to provide employment, which is needed in the State
20 because of the serious and long standing level of
21 unemployment in the State, with the consequential reduction
22 of public revenues and increased costs of public services.
23 (l) that in the absence of direct governmental subsidies
24 the unaided operations of private enterprise do not provide
25 sufficient resources for residential construction,
26 rehabilitation, rental or purchase, and that support from
27 housing related commercial facilities is one means of
28 stimulating residential construction, rehabilitation, rental
29 and purchase.
30 (m) that cost-effective construction materials and
31 techniques can significantly reduce normal heating costs, but
32 that the bargaining power of prospective low and moderate
33 income tenants or owners of housing developed under this Act
34 is insufficient to assure the utilization of such materials
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1 and techniques, and thus to assure affordable heat to those
2 who are the intended beneficiaries of this Act.
3 (n) that demolition and conversion of single room
4 occupancy hotels has exacerbated the shortage of affordable
5 housing for low-income persons.
6 (o) that the supply of decent, safe and sanitary housing
7 available at low and moderate rentals to persons and families
8 of low and moderate income is threatened by the potential
9 prepayment of federally subsidized mortgages.
10 (p) that it is in the public interest and the policy of
11 this State to foster and promote by all reasonable means the
12 provision of adequate capital markets and facilities for
13 borrowing money by units of local government, and for the
14 financing of their respective public improvements and other
15 governmental purposes within the State from proceeds of bonds
16 or notes issued by those governmental units; and to assist
17 local governmental units in fulfilling their needs for those
18 purposes by use of creation of indebtedness;
19 (q) that it is in the public interest and the policy of
20 this State to the extent possible, to reduce the costs of
21 indebtedness to taxpayers and residents of this State and to
22 encourage continued investor interest in the purchase of
23 bonds or notes of governmental units as sound and preferred
24 securities for investment; and to encourage governmental
25 units to continue their independent undertakings of public
26 improvements and other governmental purposes and the
27 financing thereof, and to assist them in those activities by
28 making funds available at reduced interest costs for orderly
29 financing of those purposes, especially during periods of
30 restricted credit or money supply, and particularly for those
31 governmental units not otherwise able to borrow for those
32 purposes.
33 (r) that in this State the following conditions exist:
34 (i) an inadequate supply of funds at interest rates
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1 sufficiently low to enable persons engaged in agriculture in
2 this State to pursue agricultural operations at present
3 levels; (ii) that such inability to pursue agricultural
4 operations lessens the supply of agricultural commodities
5 available to fulfill the needs of the citizens of this State;
6 (iii) that such inability to continue operations decreases
7 available employment in the agricultural sector of the State
8 and results in unemployment and its attendant problems; (iv)
9 that such conditions prevent the acquisition of an adequate
10 capital stock of farm equipment and machinery, much of which
11 is manufactured in this State, therefore impairing the
12 productivity of agricultural land and, further, causing
13 unemployment or lack of appropriate increase in employment in
14 such manufacturing; (v) that such conditions are conducive to
15 consolidation of acreage of agricultural land with fewer
16 individuals living and farming on the traditional family
17 farm; (vi) that these conditions result in a loss in
18 population, unemployment and movement of persons from rural
19 to urban areas accompanied by added costs to communities for
20 creation of new public facilities and services; (vii) that
21 there have been recurrent shortages of funds for agricultural
22 purposes from private market sources at reasonable rates of
23 interest; (viii) that these shortages have made the sale and
24 purchase of agricultural land to family farmers a virtual
25 impossibility in many parts of the State; (ix) that the
26 ordinary operations of private enterprise have not in the
27 past corrected these conditions; and (x) that a stable supply
28 of adequate funds for agricultural financing is required to
29 encourage family farmers in an orderly and sustained manner
30 and to reduce the problems described above.
31 (s) that the provision of a higher education for all
32 residents of this State who desire a higher education and are
33 properly qualified for higher education is important to the
34 welfare and security of this State and Nation and,
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1 consequently, is an important public purpose, and
2 (t) that many qualified students are deterred by
3 financial considerations from completing their education,
4 with a consequent irreparable loss to the State and nation of
5 talents vital to welfare and security. The number of
6 qualified persons who desire a higher education is increasing
7 rapidly, and the physical facilities, faculties, and staffs
8 of the institutions of higher learning operated by, within
9 and for the residents of the State will have to be expanded
10 greatly to accommodate those persons, with an attendant sharp
11 increase in the cost of educating them. A system of
12 financial assistance of scholarships, grants, and loans for
13 qualified residents of college age will enable them to attend
14 qualified institutions of their choice in the State, public
15 or private. The adoption of new federal student loan
16 legislation necessitates that the State update and broaden
17 its system of financial student assistance. As market
18 conditions permit, reasonable and affordable supplemental or
19 alternative educational loans may be offered to students who
20 seek to obtain these loans, and as part of these alternative
21 or supplemental direct lending initiatives, priority
22 consideration may be given to students assisted by need-based
23 programs.
24 (u) that for the benefit of the people of the State of
25 Illinois, the conduct and increase of their commerce, the
26 protection and enhancement of their welfare, the development
27 of continued prosperity and the improvement of their health
28 and living conditions it is essential that all the people of
29 the State be given the fullest opportunity to learn and to
30 develop their intellectual and mental capacities and skills;
31 that to achieve these end it is of the utmost importance that
32 private institutions of higher education within the State be
33 provided with appropriate additional means to assist the
34 people of the State in achieving the required levels of
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1 learning and development of their intellectual and mental
2 capacities and skills and that cultural institutions within
3 the State be provided with appropriate additional means to
4 expand the services and resources which they offer for the
5 cultural, intellectual, scientific, educational and artistic
6 enrichment of the people of the State;
7 (v) that in order to foster civic and neighborhood
8 pride, citizens require access to facilities such as
9 educational institutions, recreation, parks and open spaces,
10 entertainment and sports, a reliable transportation network,
11 cultural facilities and theaters and other facilities as
12 authorized by this Act, and that it is the best interests of
13 the State to lower the costs of all such facilities by
14 providing financing through the State;
15 (w) that to preserve and protect the health of the
16 citizens of the State, and lower the costs of health care,
17 that financing for health facilities should be provided
18 through the State; and
19 It is hereby declared to be the policy of the State, in
20 the interest of promoting the health, safety, morals and
21 general welfare of all the people of the State, to address
22 the conditions noted above, to increase job opportunities and
23 to retain existing jobs in the State, by making available
24 through the Illinois State Finance Authority, hereinafter
25 created, funds for the development, improvement and creation
26 of industrial, housing, local government, educational,
27 health, public purpose and other projects; and to grant the
28 powers to the Illinois State Finance Authority to issue notes
29 and bonds in order to make loans for the acquisition,
30 construction and rehabilitation of housing, community
31 facilities and housing related commercial facilities, acquire
32 and develop land for large-scale planned developments and new
33 communities and, as a means of encouraging home ownership,
34 make loans to and purchase residential mortgages from private
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1 lending institutions; and to borrow money; to issue its bonds
2 and notes to make funds at reduced rates and on more
3 favorable terms for borrowing by local governmental units
4 through the purchase of the bonds or notes of the
5 governmental units; and to make or acquire loans for the
6 acquisition and development of agricultural facilities; to
7 provide financing for private institutions of higher
8 education, cultural institutions, health facilities and other
9 facilities and projects as authorized by this Act; and to
10 grant broad powers to Illinois State Finance Authority to
11 accomplish and to carry out these policies of the State which
12 are in the public interest of the State and of its taxpayers
13 and residents.
14 Section 1-10. Definitions. The following terms,
15 whenever used or referred to in this Act, shall have the
16 following meanings, except in such instances where the
17 context may clearly indicate otherwise:
18 (a) The term "Authority" means the Illinois State
19 Finance Authority created by this Act.
20 (b) The term "project" means an industrial project,
21 housing project, public purpose project, higher education
22 project, health facility project, cultural institution
23 project, agricultural facility or agribusiness, and "project"
24 may include any combination of one or more of the foregoing
25 undertaken jointly by any person with one or more other
26 persons, but "project" shall not include any facility used or
27 to be used for sectarian instruction or as a place of
28 religious worship nor any facility which is used or to be
29 used primarily in connection with any part of the program of
30 a school or department of divinity for any religious
31 denomination or the training of ministers, priests, rabbis
32 or other professional persons in the field of religion.
33 (c) The term "public purpose project" means any project
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1 or facility including without limitation land, buildings,
2 structures, machinery, equipment and all other real and
3 personal property, which is authorized or required by law to
4 be acquired, constructed, improved, rehabilitated,
5 reconstructed, replaced or maintained by any unit of
6 government or any other lawful public purpose which is
7 authorized or required by law to be undertaken by any unit of
8 government.
9 (d) The term "industrial project" means the acquisition,
10 construction, refurbishment, creation, development or
11 redevelopment of any facility, equipment, machinery, real
12 property or personal property for use by any instrumentality
13 of the State or its political subdivisions, for use by any
14 person or institution, public or private, for profit or not
15 for profit, or for use in any trade or business including,
16 but not limited to, any industrial, manufacturing or
17 commercial enterprise and which is (1) a capital project
18 including but not limited to: (i) land and any rights
19 therein, one or more buildings, structures or other
20 improvements, machinery and equipment, whether now existing
21 or hereafter acquired, and whether or not located on the same
22 site or sites; (ii) all appurtenances and facilities
23 incidental to the foregoing, including, but not limited to
24 utilities, access roads, railroad sidings, track, docking and
25 similar facilities, parking facilities, dockage, wharfage,
26 railroad roadbed, track, trestle, depot, terminal, switching
27 and signaling or related equipment, site preparation and
28 landscaping; and (iii) all non-capital costs and expenses
29 relating thereto or (2) any addition to, renovation,
30 rehabilitation or improvement of a capital project or (3) any
31 activity or undertaking which the Authority determines will
32 aid, assist or encourage economic growth, development or
33 redevelopment within the State or any area thereof, will
34 promote the expansion, retention or diversification of
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1 employment opportunities within the State or any area thereof
2 or will aid in stabilizing or developing any industry or
3 economic sector of the State economy. The term "industrial
4 project" also means the production of motion pictures.
5 (e) The term "bond" or "bonds" shall include bonds,
6 notes (including bond, grant or revenue anticipation notes),
7 certificates and or other evidences of indebtedness
8 representing an obligation to pay money, including refunding
9 bonds.
10 (f) The terms "lease agreement" and "loan agreement"
11 shall mean: (i) an agreement whereby a project acquired by
12 the Authority by purchase, gift or lease is leased to any
13 person, corporation or unit of local government which will
14 use or cause the project to be used as a project as
15 heretofore defined upon terms providing for lease rental
16 payments at least sufficient to pay when due all principal
17 of, interest and premium, if any, on any bonds of the
18 Authority issued with respect to such project, providing for
19 the maintenance, insuring and operation of the project on
20 terms satisfactory to the Authority, providing for
21 disposition of the project upon termination of the lease
22 term, including purchase options or abandonment of the
23 premises, and such other terms as may be deemed desirable by
24 the Authority, or (ii) any agreement pursuant to which the
25 Authority agrees to loan the proceeds of its bonds issued
26 with respect to a project or other funds of the Authority to
27 any person which will use or cause the project to be used as
28 a project as heretofore defined upon terms providing for loan
29 repayment installments at least sufficient to pay when due
30 all principal of, interest and premium, if any, on any bonds
31 of the Authority, if any, issued with respect to the project,
32 and providing for maintenance, insurance and other matters as
33 may be deemed desirable by the Authority.
34 (g) The term "financial aid" means the expenditure of
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1 Authority funds or funds provided by the Authority through
2 the issuance of its bonds, notes or other evidences of
3 indebtedness or from other sources for the development,
4 construction, acquisition or improvement of a project.
5 (h) The term "person" means an individual, corporation,
6 unit of government, business trust, estate, trust,
7 partnership or association, 2 or more persons having a joint
8 or common interest, or any other legal entity.
9 (i) The term "unit of government" means the federal
10 government, the State or unit of local government, a school
11 district, or any agency or instrumentality, office, officer,
12 department, division, bureau, commission, college or
13 university thereof.
14 (j) The term "development costs" means the costs
15 approved by the Authority as appropriate expenditures which
16 may be incurred prior to commitment and initial closing of
17 assisted mortgage financing or of housing related commercial
18 facilities, including but not limited to: (1) payments for
19 options to purchase properties for the proposed development
20 or facilities, deposits on contracts of purchase, or, with
21 the prior approval of the Authority, payments for the
22 purchases of such properties; (2) legal, organizational and
23 consultants' expenses; (3) payment of fees for preliminary
24 feasibility studies and engineering and architectural work;
25 (4) necessary application and other fees to federal, State
26 and local government agencies; and (5) such other expenses as
27 the Authority may deem appropriate to effectuate the purposes
28 of this Act.
29 (k) The term "assisted mortgage financing" means a below
30 market interest rate mortgage insured or purchased, or a loan
31 made, by the Secretary of the United States Department of
32 Housing and Urban Development or by any other federal agency
33 or governmental corporation or by any political subdivision
34 of the State of Illinois or by any Illinois public
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1 corporation; a market interest rate mortgage insured or
2 purchased, or a loan made in combination with, or as
3 augmented by, a program of rent supplements, interest
4 subsidies, leasing, contributions or grants, or other
5 programs as are now or hereafter authorized by federal law to
6 serve low or moderate income persons; a mortgage or loan made
7 pursuant to this Act; or a mortgage or loan from any private
8 or public source with an interest rate and terms satisfactory
9 to the Authority and which will meet the requirements and
10 purposes of this Act.
11 (l) The term "lending institution" means, with respect
12 to housing financing, any bank, trust company, savings bank,
13 savings and loan association, credit union, national banking
14 association, mortgage banking association, federal savings
15 and loan association or federal credit unit maintaining an
16 office in the State, any insurance company or any other
17 entity or organization which makes or acquires loans secured
18 by real property.
19 (m) The term "residential mortgage" means a loan owed to
20 a lending institution, to the Authority or to a trustee for
21 holders of bonds or notes of the Authority or to a trustee
22 for owners of pools of mortgages, and secured by a lien on
23 real property located in the State and improved by a
24 residential structure or a mixed residential and commercial
25 structure, or unimproved if the proceeds of such loan shall
26 be used for the erection of a residential structure or a
27 mixed residential and commercial structure thereon, whether
28 or not such loan is insured or guaranteed by the United
29 States of America or any agency or corporation thereof.
30 (n) The term "development" with respect to housing means
31 a specific work or improvement undertaken to provide dwelling
32 accommodations, including the acquisition, construction or
33 rehabilitation of lands, buildings and community facilities
34 and in connection therewith to provide nonhousing facilities
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1 which are a part of a planned large-scale project or new
2 community.
3 (o) The term "persons and families of low and moderate
4 income" and "low income or moderate income persons" means
5 families and persons who cannot afford to pay the amounts at
6 which private enterprise, without assisted mortgage
7 financing, is providing a substantial supply of decent, safe
8 and sanitary housing. The income limits for the admission of
9 such families and persons to developments shall be those
10 established pursuant to the rules applicable to the assisted
11 mortgage financing program under which such developments are
12 financed.
13 (p) The term "moderate rentals" means rent charges less
14 than those rents generally charged for new dwelling units of
15 comparable size and location built by the unassisted efforts
16 of private enterprise and financed at then current market
17 interest rates.
18 (q) The term "low rentals" means rent charges at least
19 10% lower than moderate rentals.
20 (r) The term "rents" or "rentals" shall mean fees or
21 charges paid for use of a development under this Act, whether
22 the development is operated on a landlord-tenant basis or as
23 a condominium or cooperative.
24 (s) The term "limited-profit entity" means any
25 individual, joint venture, partnership, limited partnership,
26 trust or corporation organized or existing under the laws of
27 the State of Illinois or authorized to do business in this
28 State and having articles of incorporation or comparable
29 documents of organization or a written agreement with the
30 Authority which, in addition to other requirements of law,
31 provided (1) that if the limited-profit entity receives any
32 loan from the Authority as provided for in this Act, it shall
33 be authorized to enter into an agreement with the Authority
34 providing for regulations with respect to rents, profits,
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1 dividends and disposition of property or franchises; and (2)
2 that if the limited-profit entity receives a loan, as
3 provided for in this Act, the Chairperson of the Authority,
4 acting with the prior approval of the Authority, shall have
5 the power, if he determines that any such loan is in jeopardy
6 of not being repaid, or that the proposed development for
7 which such loan was made is in jeopardy of not being
8 constructed, or the limited-profit entity is otherwise in
9 violation of rules and regulations promulgated by the
10 Authority, to appoint to the board of directors or other
11 comparable controlling body of such limited-profit entity a
12 number of new directors or persons, which number shall be
13 sufficient to constitute a voting majority of such board or
14 controlling body, notwithstanding any other provisions of the
15 limited-profit entity's articles of incorporation or other
16 documents of organization, or of any other provisions of law,
17 provided that this requirement set forth in this paragraph
18 (2) is not mandatory in the case of loans made solely with
19 monies from the Authority's administrative fund.
20 (t) The term "land development" means the process of
21 clearing and grading land, making, installing, or
22 constructing waterlines and water supply installations, sewer
23 lines and sewage disposal installations, steam, gas, and
24 electric lines and installations, roads, streets, curbs,
25 gutters, sidewalks, storm drainage facilities, and other
26 installations or work, whether on or off the site, necessary
27 or desirable to prepare land for residential, commercial,
28 industrial, or other uses, or to provide facilities for
29 public or common use.
30 (u) "Nonprofit corporation", with respect to financing
31 of housing, means a nonprofit corporation incorporated
32 pursuant to the provisions of the Illinois General Not For
33 Profit Corporation Act or the State Housing Act of 1933 and
34 having articles of incorporation which, in addition to other
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1 requirements of law, provide:
2 (1) that the corporation has been organized to
3 provide housing facilities for persons of low and
4 moderate income;
5 (2) that all income and earnings of the corporation
6 shall be used exclusively for corporation purposes and
7 that no part of the net income or net earnings of the
8 corporation shall inure to the benefit or profit of any
9 private individual, firm, corporation, partnership, or
10 association;
11 (3) that the corporation is in no manner controlled
12 or under the direction or acting in the substantial
13 interest of private individuals, firms, corporations,
14 partnerships, or associations seeking to derive profit or
15 gain therefrom or seeking to eliminate or minimize losses
16 in any dealings or transactions therewith;
17 (4) that if the corporation receives any loan or
18 advance from the Authority as provided for in this Act,
19 it shall be authorized to enter into an agreement with
20 the Authority providing for regulation with respect to
21 rents, profits, dividends, and disposition of property or
22 franchises;
23 (5) that if the corporation receives a loan or
24 advance, as provided for in this Act, the chairperson of
25 the Authority, acting with the prior approval of the
26 majority of the members of the Authority, shall have the
27 power if he determines that any such loan or advance is
28 in jeopardy of not being repaid, or that the proposed
29 development for which such loan or advance was made is in
30 jeopardy of not being constructed, or that some part of
31 the net income or net earnings of the corporation is
32 inuring to the benefit of any private individual, firm,
33 corporation, partnership, or association, or that the
34 corporation is in some manner controlled or under the
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1 direction of or acting in the substantial interest of any
2 private individual, firm, corporation, partnership, or
3 association seeking to derive benefit or gain therefrom
4 or seeking to eliminate or minimize losses in any
5 dealings or transactions therewith, or is in violation of
6 rules and regulations promulgated by the Authority to
7 appoint to the board of directors of such corporation a
8 number of new directors, which number shall be sufficient
9 to constitute a majority of such board, notwithstanding
10 any other provisions of such articles of incorporation or
11 of any other provisions of law; and
12 (6) that each development of such corporation shall
13 be operated exclusively for the benefit of the persons
14 who are housed in such development which shall include
15 families or persons of low or moderate income as required
16 by this Act, and that such development shall reserve for
17 families or persons of low or moderate income the number
18 and types of dwelling units required by applicable
19 federal or State law. The requirements contained in
20 paragraphs (2), (3), (5) and (6) are not mandatory in the
21 case of loans made solely from the Authority's
22 administrative fund.
23 (v) The term "State" means the State of Illinois.
24 (w) The term "housing" means relating to shelter and
25 related facilities for single or multiple families or
26 individuals, and includes housing-related commercial
27 facilities.
28 (x) The term "housing related commercial facilities"
29 means commercial facilities which are or are to be related to
30 a development. Commercial facilities are related to a
31 development if they are, in the sole judgment of the
32 Authority, located in the same area as the development and
33 (i) necessary or desirable in order to provide services for
34 residents of that area in which the development is located;
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1 or (ii) a portion of the revenues of the commercial
2 facilities are to be used to provide funds for paying costs
3 of construction, acquisition, rehabilitation, operation,
4 maintenance of or payment of debt service on the development
5 or (iii) necessary or desirable in order to make the
6 development successful, such as, without limitation,
7 eliminating or preventing slum or blighted conditions,
8 preserving historic structures or ensuring that facilities
9 are not inconsistent with the development. For purposes of
10 this Section, "commercial facilities" includes land,
11 buildings, improvements, equipment and all ancillary
12 facilities for use for offices, stores, retirement homes,
13 hotels, financial institutions, service health care,
14 education, recreation or research establishments or any other
15 commercial purpose.
16 (y) The term "affordable housing program trust fund
17 bonds or notes" means bonds or notes issued by the Authority
18 pursuant to the provisions of this Act for the purposes of
19 providing affordable housing to low and very low income
20 persons as provided in the Illinois Affordable Housing Act
21 through the use or pledge, in whole or in part, of Trust Fund
22 Moneys dedicated or otherwise made available to the
23 Authority.
24 (z) The term "trust fund moneys" has the meaning given
25 to that term in Section 3 of the Illinois Affordable Housing
26 Act.
27 (aa) The term "health facility" means: (a) any public
28 or private institution, place, building, or agency required
29 to be licensed under the Hospital Licensing Act; (b) any
30 public or private institution, place, building, or agency
31 required to be licensed under the Nursing Home Care Act, as
32 now or hereafter amended; (c) any public or licensed private
33 hospital as defined in the Mental Health and Developmental
34 Disabilities Code; (d) any such facility exempted from such
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1 licensure when the Director of Public Health attests that
2 such exempted facility meets the statutory definition of a
3 facility subject to licensure; (e) any other public or
4 private health service institution, place, building, or
5 agency which the Director of Public Health attests is subject
6 to certification by the Secretary, U.S. Department of Health
7 and Human Services under the Social Security Act, as now or
8 hereafter amended, or which the Director of Public Health
9 attests is subject to standard-setting by a recognized public
10 or voluntary accrediting or standard-setting agency; (f) any
11 public or private institution, place, building or agency
12 engaged in providing one or more supporting services to a
13 health facility; (g) any public or private institution,
14 place, building or agency engaged in providing training in
15 the healing arts, including but not limited to schools of
16 medicine, dentistry, osteopathy, optometry, podiatry,
17 pharmacy or nursing, schools for the training of x-ray,
18 laboratory or other health care technicians and schools for
19 the training of para-professionals in the health care field;
20 (h) any public or private congregate, life or extended care
21 or elderly housing facility or any public or private home for
22 the aged or infirm, including, without limitation, any
23 Facility as defined in the Life Care Facilities Act; (i) any
24 public or private mental, emotional or physical
25 rehabilitation facility or any public or private
26 educational, counseling, or rehabilitation facility or home,
27 for those persons with a developmental disability, those who
28 are physically ill or disabled, the emotionally disturbed,
29 those persons with a mental illness or persons with learning
30 or similar disabilities or problems; (j) any public or
31 private alcohol, drug or substance abuse diagnosis,
32 counseling treatment or rehabilitation facility, (k) any
33 public or private institution, place, building or agency
34 licensed by the Department of Children and Family Services or
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1 which is not so licensed but which the Director of Children
2 and Family Services attests provides child care, child
3 welfare or other services of the type provided by facilities
4 subject to such licensure; (l) any public or private adoption
5 agency or facility; and (m) any public or private blood bank
6 or blood center. "Health facility" also means a public or
7 private structure or structures suitable primarily for use as
8 a laboratory, laundry, nurses or interns residence or other
9 housing or hotel facility used in whole or in part for staff,
10 employees or students and their families, patients or
11 relatives of patients admitted for treatment or care in a
12 health facility, or persons conducting business with a health
13 facility, physician's facility, surgicenter, administration
14 building, research facility, maintenance, storage or utility
15 facility and all structures or facilities related to any of
16 the foregoing or required or useful for the operation of a
17 health facility, including parking or other facilities or
18 other supporting service structures required or useful for
19 the orderly conduct of such health facility.
20 (bb) The term "participating health institution" means a
21 private corporation or association or public entity of this
22 State, authorized by the laws of this State to provide or
23 operate a health facility as defined in this Act and which,
24 pursuant to the provisions of this Act, undertakes the
25 financing, construction or acquisition of a project or
26 undertakes the refunding or refinancing of obligations,
27 loans, indebtedness or advances as provided in this Act.
28 (cc) The term "health facility project", means a
29 specific health facility work or improvement to be financed
30 or refinanced (including without limitation through
31 reimbursement of prior expenditures), acquired, constructed,
32 enlarged, remodeled, renovated, improved, furnished, or
33 equipped, with funds provided in whole or in part hereunder,
34 any accounts receivable, working capital, liability or
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1 insurance cost or operating expense financing or refinancing
2 program of a health facility with or involving funds provided
3 in whole or in part hereunder, or any combination thereof.
4 (dd) The term "bond resolution" means the resolution or
5 resolutions authorizing the issuance of, or providing terms
6 and conditions related to, bonds issued under this Act and
7 includes, where appropriate, any trust agreement, trust
8 indenture, indenture of mortgage or deed of trust providing
9 terms and conditions for such bonds.
10 (ee) The term "property" means any real, personal or
11 mixed property, whether tangible or intangible, or any
12 interest therein, including, without limitation, any real
13 estate, leasehold interests, appurtenances, buildings,
14 easements, equipment, furnishings, furniture, improvements,
15 machinery, rights of way, structures, accounts, contract
16 rights or any interest therein.
17 (ff) The term "revenues" means, with respect to any
18 project, the rents, fees, charges, interest, principal
19 repayments, collections and other income or profit derived
20 therefrom.
21 (gg) The term "higher education project" means, in the
22 case of a private institution of higher education, an
23 educational facility to be acquired, constructed, enlarged,
24 remodeled, renovated, improved, furnished, or equipped, or
25 any combination thereof.
26 (hh) The term "cultural institution project" means, in
27 the case of a cultural institution, a cultural facility to be
28 acquired, constructed, enlarged, remodeled, renovated,
29 improved, furnished, or equipped, or any combination thereof.
30 (ii) The term "educational facility" means any property
31 located within the State constructed or acquired before or
32 after the effective date of this Act, which is or will be, in
33 whole or in part, suitable for the instruction, feeding,
34 recreation or housing of students, the conducting of research
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1 or other work of a private institution of higher education,
2 the use by a private institution of higher education in
3 connection with any educational, research or related or
4 incidental activities then being or to be conducted by it, or
5 any combination of the foregoing, including, without
6 limitation, any such property suitable for use as or in
7 connection with any one or more of the following: an
8 academic facility, administrative facility, agricultural
9 facility, assembly hall, athletic facility, auditorium,
10 boating facility, campus, communication facility, computer
11 facility, continuing education facility, classroom, dining
12 hall, dormitory, exhibition hall, fire fighting facility,
13 fire prevention facility, food service and preparation
14 facility, gymnasium, greenhouse, health care facility,
15 hospital, housing, instructional facility, laboratory,
16 library, maintenance facility, medical facility, museum,
17 offices, parking area, physical education facility,
18 recreational facility, research facility, stadium, storage
19 facility, student union, study facility, theatre or utility.
20 An educational facility shall not include any property used
21 or to be used for sectarian instruction or study or as a
22 place for devotional activities or religious worship nor any
23 property which is used or to be used primarily in connection
24 with any part of the program of a school or department of
25 divinity for any religious denomination.
26 (jj) The term "cultural facility" means any property
27 located within the State constructed or acquired before or
28 after the effective date of this Act, which is or will be, in
29 whole or in part, suitable for the particular purposes or
30 needs of a cultural institution, including, without
31 limitation, any such property suitable for use as or in
32 connection with any one or more of the following: an
33 administrative facility, aquarium, assembly hall, auditorium,
34 botanical garden, exhibition hall, gallery, greenhouse,
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1 library, museum, scientific laboratory, theater or zoological
2 facility, and shall also include, without limitation, books,
3 works of art or music, animal, plant or aquatic life or
4 other items for display, exhibition or performance. The term
5 "cultural facility" includes buildings on the National
6 Register of Historic Places which are owned or operated by
7 nonprofit entities. A cultural facility shall not include
8 any property used or to be used for sectarian instruction or
9 study or as a place for devotional activities or religious
10 worship nor any property which is used or to be used
11 primarily in connection with any part of the program of a
12 school or department of divinity for any religious
13 denomination.
14 (kk) "Private institution of higher education" means a
15 not for profit educational institution which is not owned by
16 the State or any political subdivision, agency,
17 instrumentality, district or municipality thereof, which is
18 authorized by law to provide a program of education beyond
19 the high school level and which
20 (a) admits as regular students only individuals
21 having a certificate of graduation from a high school, or
22 the recognized equivalent of such a certificate;
23 (b) provides an educational program for which it
24 awards a bachelor's degree, or provides an educational
25 program, admission into which is conditioned upon the
26 prior attainment of a bachelor's degree or its
27 equivalent, for which it awards a postgraduate degree, or
28 provides not less than a 2-year program which is
29 acceptable for full credit toward such a degree, or
30 offers a 2-year program in engineering, mathematics, or
31 the physical or biological sciences which is designed to
32 prepare the student to work as a technician and at a
33 semiprofessional level in engineering, scientific, or
34 other technological fields which require the
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1 understanding and application of basic engineering,
2 scientific, or mathematical principles or knowledge;
3 (c) is accredited by a nationally recognized
4 accrediting agency or association or, if not so
5 accredited, is an institution whose credits are accepted,
6 on transfer, by not less than 3 institutions which are so
7 accredited, for credit on the same basis as if
8 transferred from an institution so accredited, and holds
9 an unrevoked certificate of approval under the Private
10 College Act from the State Superintendent of Education,
11 or is qualified as a "degree granting institution" under
12 the Academic Degree Act; and
13 (d) does not discriminate in the admission of
14 students on the basis of race, color or creed. "Private
15 institution of higher education" also includes (except
16 for purposes of the definition in (kk)(a)) any "academic
17 institution".
18 (ll) The term "academic institution" means any not for
19 profit institution which is not owned by the State or any
20 political subdivision, agency, instrumentality, district or
21 municipality thereof, which institution engages in, or
22 facilitates academic, scientific, educational or professional
23 research or learning in a field or fields of study taught at
24 a private institution of higher education. Academic
25 institutions include, without limitation, libraries,
26 archives, academic, scientific, educational or professional
27 societies, institutions, associations or foundations having
28 such purposes. Academic institution does not include any
29 school or any institution primarily engaged in religious or
30 sectarian activities.
31 (mm) The term "cultural institution" means any not for
32 profit institution which is not owned by the State or any
33 political subdivision, agency, instrumentality, district or
34 municipality thereof, which institution engages in the
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1 cultural, intellectual, scientific, educational or artistic
2 enrichment of the people of the State. Cultural institutions
3 include, without limitation, aquaria, botanical societies,
4 historical societies, libraries, museums, performing arts
5 associations or societies, scientific societies and
6 zoological societies. Cultural institution does not include
7 any institution primarily engaged in religious or sectarian
8 activities.
9 (nn) The term "local governmental security" means any
10 bond, note or other evidence of indebtedness which a unit of
11 local government is legally authorized to issue for the
12 purpose of financing any public purpose project or to issue
13 for any other lawful public purpose under any provision of
14 the State Constitution or laws of the State, whether such
15 obligation is payable from taxes or revenues, rates, charges,
16 assessments, appropriations, grants or any other lawful
17 source or combination thereof, and shall specifically
18 include, without limitation, obligations under any lease or
19 lease-purchase agreement lawfully entered into by the unit of
20 local government for the acquisition or use of facilities or
21 equipment..
22 (oo) The term "enrollment" means the establishment and
23 maintenance of an individual's status as a student in an
24 institution of higher learning, regardless of the terms used
25 at the institution to describe that status.
26 (pp) The term "approved high school" means any public
27 high school located in this State; and any high school,
28 located in this State or elsewhere (whether designated as a
29 high school, secondary school, academy, preparatory school,
30 or otherwise) which in the judgment of the State
31 Superintendent of Education provides a course of instruction
32 at the secondary level and maintains standards of instruction
33 substantially equivalent to those of the public high schools
34 located in this State.
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1 (qq) The terms "institution of higher learning",
2 "qualified institution", or "institution" mean an educational
3 organization located in this State which:
4 (1) provides at least an organized 2-year program
5 of collegiate grade in the liberal arts or sciences, or
6 both, directly applicable toward the attainment of a
7 baccalaureate degree or a program in health education
8 directly applicable toward the attainment of a
9 certificate, diploma, or an associate degree;
10 (2) either is (i) operated by this State, or (ii)
11 operated publicly or privately, not for profit, or (iii)
12 operated for profit, provided such for profit
13 organization
14 (3) offers degree programs which have been approved
15 by the Board of Higher Education for a minimum of 3 years
16 under the Academic Degree Act, and
17 (4) enrolls a majority of its students in such
18 degree programs, and
19 (5) maintains an accredited status with the
20 Authority on Institutions of Higher Education of the
21 North Central Association of Colleges and Schools;
22 (6) in the judgment of the Authority meets
23 standards substantially equivalent to those of comparable
24 institutions operated by this State; and
25 (7) if so required by the Authority, uses the State
26 as its primary guarantor of student loans made under the
27 federal Higher Education Act of 1965. For otherwise
28 eligible educational organizations which provide academic
29 programs for incarcerated students, the terms
30 "institution of higher learning", "qualified
31 institutions", and "institution" shall specifically
32 exclude academic programs for incarcerated students.
33 (rr) The term "academic year" means a 12-month period of
34 time, normally but not exclusively, from September 1 of any
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1 year through August 31 of the ensuing year.
2 (ss) The term "full-time student" means any
3 undergraduate student enrolled in 12 or more semester or
4 quarter hours of credit courses in any given semester or
5 quarter or in the equivalent number of units of registration
6 as determined by the Authority.
7 (tt) The term "part-time student" means any
8 undergraduate student, other than a full-time student,
9 enrolled in 6 or more semester or quarter hours of credit
10 courses in any given semester or quarter or in the equivalent
11 number of units of registration as determined by the
12 Authority. Beginning with fiscal year 1999, the Authority
13 may, on a program by program basis, expand this definition of
14 "part-time student" to include students who enroll in less
15 than 6 semester or quarter hours of credit courses in any
16 given semester or quarter.
17 (uu) "Purchase Program" means the Authority exercising
18 its power to establish a secondary market for certain student
19 loans of borrowers by the purchase thereof with the proceeds
20 from the sale of the bonds of the Authority issued pursuant
21 to this Act, with the earnings received by the Authority from
22 any authorized investment, or with eligible loan receipts.
23 (vv) "Eligible loans" means loans of student borrowers
24 made, purchased, or guaranteed by or transferred to the
25 Authority, including but not limited to loans on which:
26 (1) the borrower is contractually delinquent in his
27 repayment obligations within time limitations specified
28 by the Authority; or
29 (2) the borrower is temporarily unable to meet his
30 repayment obligations for reasons of unemployment, or
31 financial, medical or other hardship as determined by the
32 Authority; or
33 (3) the borrower has at least one loan held by the
34 Authority under the Purchase Program; or
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1 (4) the borrower's lender, because of the
2 bankruptcy of that lender, is no longer able or the
3 Authority otherwise determines that such lender is no
4 longer able to satisfactorily service the borrower's
5 loan or fulfill the borrower's credit needs under the
6 Authority's program; or
7 (5) the borrower has defaulted on his loan, but has
8 subsequently established a satisfactory repayment history
9 under the rules of the Authority; and notwithstanding the
10 limitations of this Act, the Purchase Program shall have
11 the authority to purchase those defaulted accounts in
12 order to restore the borrower's credit rating and
13 continued eligibility for benefits under other Federal
14 student assistance programs. Nothing in this Act shall
15 be construed to prohibit the Authority from making or
16 purchasing any category of loans if the Authority
17 determines that the making or purchasing of such loans
18 would tend to make more loans available to eligible
19 borrowers. Nothing in this Act shall be construed to
20 excuse the holder of an eligible loan from exercising
21 reasonable care and diligence in the making and
22 collecting of such loans. If the Authority finds that
23 the lender has substantially failed to exercise that care
24 and diligence, the Authority shall disqualify the lender
25 from participation in Authority programs until the
26 Authority is satisfied that the lender's failure has
27 ceased and finds that there is reasonable assurance that
28 the lender will in the future exercise necessary care and
29 diligence and comply with the rules and regulations of
30 the Authority.
31 (ww) "Eligible loan receipts" means any of the
32 following:
33 (1) Principal, accrued interest, late charges and
34 other sums paid on eligible loans held by the Authority.
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1 (2) Reimbursements paid by the federal government,
2 the State of Illinois, the Authority exercising its power
3 to guarantee the loans of borrowers, or any other source
4 held by the Authority.
5 (3) Accruing interest payments and special
6 allowance payments paid by the federal government
7 pursuant to the Higher Education Act of 1965 or any other
8 federal statute providing for federal payment of interest
9 and special allowances on loans or by any other source on
10 eligible loans held by the Authority.
11 (4) Any other sums paid by any source to the
12 Authority on or for eligible loans held by the Authority.
13 (xx) The term "affiliate" means, with respect to
14 financing of an agricultural facility or an agribusiness, any
15 lender, any person, firm or corporation controlled by, or
16 under common control with, such lender, and any person, firm
17 or corporation controlling such lender.
18 (yy) The term "agricultural facility" means land, any
19 building or other improvement thereon or thereto, and any
20 personal properties deemed necessary or suitable for use,
21 whether or not now in existence, in farming, ranching, the
22 production of agricultural commodities (including, without
23 limitation, the products of aquaculture, hydroponics and
24 silviculture) or the treating, processing or storing of such
25 agricultural commodities when such activities are customarily
26 engaged in by farmers as a part of farming.
27 (zz) The term "lender" with respect to financing of an
28 agricultural facility or an agribusiness, means any federal
29 or State chartered bank, Federal Land Bank, Production Credit
30 Association, Bank for Cooperatives, federal or State
31 chartered savings and loan association or building and loan
32 association, Small Business Investment Company or any other
33 institution qualified within this State to originate and
34 service loans, including, but without limitation to,
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1 insurance companies, credit unions and mortgage loan
2 companies. "Lender" also means a wholly owned subsidiary of
3 a manufacturer, seller or distributor of goods or services
4 that makes loans to businesses or individuals, commonly known
5 as a "captive finance company".
6 (aaa) The term "agribusiness" means any sole
7 proprietorship, limited partnership, copartnership, joint
8 venture, corporation or cooperative which operates or will
9 operate a facility located within the State of Illinois that
10 is related to the processing of agricultural commodities
11 (including, without limitation, the products of aquaculture,
12 hydroponics and silviculture) or the manufacturing,
13 production or construction of agricultural buildings,
14 structures, equipment, implements, and supplies, or any other
15 facilities or processes used in agricultural production.
16 Agribusiness includes but is not limited to the following:
17 (1) grain handling and processing, including grain
18 storage, drying, treatment, conditioning, mailing and
19 packaging;
20 (2) seed and feed grain development and processing;
21 (3) fruit and vegetable processing, including
22 preparation, canning and packaging;
23 (4) processing of livestock and livestock products,
24 dairy products, poultry and poultry products, fish or
25 apiarian products, including slaughter, shearing,
26 collecting, preparation, canning and packaging;
27 (5) fertilizer and agricultural chemical
28 manufacturing, processing, application and supplying;
29 (6) farm machinery, equipment and implement
30 manufacturing and supplying;
31 (7) manufacturing and supplying of agricultural
32 commodity processing machinery and equipment, including
33 machinery and equipment used in slaughter, treatment,
34 handling, collecting, preparation, canning or packaging
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1 of agricultural commodities;
2 (8) farm building and farm structure manufacturing,
3 construction and supplying;
4 (9) construction, manufacturing, implementation,
5 supplying or servicing of irrigation, drainage and soil
6 and water conservation devices or equipment;
7 (10) fuel processing and development facilities
8 that produce fuel from agricultural commodities or
9 by-products;
10 (11) facilities and equipment for processing and
11 packaging agricultural commodities specifically for
12 export;
13 (12) facilities and equipment for forestry product
14 processing and supplying, including sawmilling
15 operations, wood chip operations, timber harvesting
16 operations, and manufacturing of prefabricated buildings,
17 paper, furniture or other goods from forestry products;
18 (13) facilities and equipment for research and
19 development of products, processes and equipment for the
20 production, processing, preparation or packaging of
21 agricultural commodities and by-products.
22 (bbb) The term "asset" with respect to financing of any
23 agricultural facility or any agribusiness, means, but is not
24 be limited to the following: cash crops or feed on hand;
25 livestock held for sale; breeding stock; marketable bonds and
26 securities; securities not readily marketable; accounts
27 receivable; notes receivable; cash invested in growing crops;
28 net cash value of life insurance; machinery and equipment;
29 cars and trucks; farm and other real estate including life
30 estates and personal residence; value of beneficial interests
31 in trusts; government payments or grants; and any other
32 assets.
33 (ccc) The term "liability" with respect to financing of
34 any agricultural facility or any agribusiness shall include,
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1 but not be limited to the following: accounts payable; notes
2 or other indebtedness owed to any source; taxes, rent;
3 amounts owed on real estate contracts or real estate
4 mortgages; judgments; accrued interest payable; and any other
5 liability.
6 (ddd) The term "Predecessor Authorities" means those
7 authorities as described in Section 50-15.
8 Section 1-15. There is hereby created a body politic and
9 corporate to be known as the Illinois State Finance
10 Authority. The exercise of the powers conferred by law shall
11 be an essential public function. The Authority shall consist
12 of 15 members, who shall be appointed by the Governor, with
13 the advice and consent of the Senate. Upon the appointment
14 of the Board and every two years thereafter, the chairperson
15 of the Authority shall be selected by the Governor to serve
16 as chairperson for 2 years.
17 Appointments to the Authority shall be persons of
18 recognized ability and experience in one or more of the
19 following areas: economic development, finance, banking,
20 industrial development, small business management, real
21 estate development, housing, health facilities financing,
22 local government financing, community development, venture
23 finance, construction and labor relations.
24 At the time of appointment, the Governor shall designate
25 5 members to serve until the third Monday in January 2003, 5
26 members to serve until the third Monday in January 2004 and 5
27 members to serve until the third Monday in January 2005.
28 Thereafter, appointments shall be for 3 year terms. A member
29 shall serve until his or her successor shall be appointed and
30 have qualified for office by filing the oath and bond.
31 Members of the Authority shall not be entitled to
32 compensation for their services as members, but shall be
33 entitled to reimbursement for all necessary expenses incurred
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1 in connection with the performance of their duties as
2 members.
3 The Governor may remove any member of the Authority in
4 case of incompetency, neglect of duty, or malfeasance in
5 office, after service on him of a copy of the written charges
6 against him and an opportunity to be publicly heard in person
7 or by counsel in his own defense upon not less than 10-days
8 notice.
9 The Governor shall appoint, by and with the advice and
10 consent of the Senate, an Executive Director who shall be a
11 person knowledgeable in the areas of financial markets and
12 instruments. The initial term of the Executive Director
13 shall commence upon appointment and shall terminate upon the
14 third Monday in January 2003, or until a successor is
15 appointed and qualified. Thereafter, the Executive Director
16 shall hold office for term of 2 years from the third Monday
17 in January of each odd-numbered year and until a successor is
18 appointed and qualified. The Executive Director shall be the
19 chief administrative and operational officer of the Authority
20 and shall direct and supervise its administrative affairs and
21 general management and perform such other duties as may be
22 prescribed from time to time by the members. The Executive
23 Director shall receive an annual salary as set by the
24 Governor from time to time or an amount set by the
25 Compensation Reivew Board, whiever is greater. If the
26 Executive Director's salary is set by the Governor, the
27 salary may not exceed 85% of the Governor's annual salary.
28 The Executive Director or any committee of the members may
29 carry out such responsibilities of the members as the members
30 by resolution may delegate. The Executive Director shall
31 attend all meetings of the Authority; however, no action of
32 the Authority shall be invalid on account of the absence of
33 the Executive Director from a meeting. The Authority may
34 engage the services of such other agents and employees,
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1 including attorneys, appraisers, engineers, accountants,
2 credit analysts and other consultants, as it may deem
3 advisable and may prescribe their duties and fix their
4 compensation.
5 The Authority may appoint Advisory Councils to (1) assist
6 in the formulation of policy goals and objectives, (2) assist
7 in the coordination of the delivery of services, (3) assist
8 in establishment of funding priorities for the various
9 activities of the Authority, and (4) target the activities of
10 the Authority to specific geographic regions.
11 At a minimum, there shall be an Advisory Council on
12 Housing, an Advisory Council on Economic Development and an
13 Advisory Council on Education. Each Advisory Council shall
14 consist of no more than 12 members, who shall serve at the
15 pleasure of the Authority. Members of the Advisory Council
16 shall receive no compensation for their services, but may be
17 reimbursed for expenses incurred with their service on the
18 Advisory Council.
19 Section 1-20. All official acts of the Authority shall
20 require the approval of at least 8 members. All meetings of
21 the Authority and the Advisory Councils shall be conducted in
22 accordance with the Open Meetings Act. All meetings shall be
23 conducted at a single location within this State among
24 members physically present at this location. The Auditor
25 General shall conduct financial audits and program audits of
26 the Authority, in accordance with the Illinois State Auditing
27 Act.
28 Section 1-25. The Authority possesses all the powers as
29 a body corporate necessary and convenient to accomplish the
30 purposes of this Act, including, without any intended
31 limitation upon the general powers hereby conferred, the
32 following:
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1 (a) to enter, subject to the Illinois Procurement Code,
2 into loans, contracts, agreements and mortgages in any manner
3 connected with any of its corporate purposes and to invest
4 its funds;
5 (b) to sue and be sued;
6 (c) to employ, pursuant to the Personnel Code, agents
7 and employees and independent contractors necessary to carry
8 out its purposes and to fix their compensation, benefits and
9 terms and conditions of their employment;
10 (d) to have and use a common seal and to alter the same
11 at pleasure;
12 (e) to adopt all needful ordinances, resolutions,
13 by-laws, rules and regulations for the conduct of its
14 business and affairs and for the management and use of the
15 projects developed, constructed, acquired and improved in
16 furtherance of its purposes;
17 (f) to have and exercise all powers and be subject to
18 all duties usually incident to boards of directors of
19 corporations;
20 (g) to report, no later than September 30 of each year,
21 to the Governor and the General Assembly on the Authority's
22 operations for the preceding fiscal year, including a
23 description of all financing and other activities of the
24 Authority.
25 Section 1-30. The Authority shall not issue any bonds
26 relating to the financing of any manufacturing, solid-waste
27 or environmental project (as such projects are defined by the
28 Authority) located within the planning and subdivision
29 control jurisdiction of any municipality unless: (1) notice,
30 including a description of the proposed project and the
31 financing for the project, is submitted to the corporate
32 authorities of the municipality; and (2) the corporate
33 authorities, within 45 days after mailing of the notice, have
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1 failed to notify the Authority that the municipality has
2 adopted a resolution disapproving the project or have
3 notified the Authority that the municipality has adopted a
4 resolution approving the project. This Section shall not
5 apply to any bonds issued to refund any outstanding bonds or
6 to any bonds maturing within 15 months after the date of
7 issuance. A project description shall be sufficient for
8 purposes of this Section if it describes the proposed use and
9 approximate size of the project and its general geographic
10 location by postal zip code, census tract, or other generally
11 recognized description of geographic areas. A specific
12 address shall not be required. If any of the powers set
13 forth in this Act are exercised within the jurisdictional
14 limits of any municipality, all ordinances of the
15 municipality shall remain in full force and effect and shall
16 be controlling.
17 Section 1-35. In addition to the powers otherwise
18 authorized by law and in addition to the foregoing general
19 corporate powers, the Authority shall also have the following
20 additional specific powers to be exercised in furtherance of
21 the purposes of this Act.
22 (a) The Authority shall have power (i) to accept grants,
23 loans or appropriations from the Federal government or the
24 State, or any agency or instrumentality thereof, to be used
25 for the operating expenses of the Authority, or for any
26 purposes of the Authority, including the making of direct
27 loans of such funds with respect to projects, and (ii) to
28 enter into any agreement with the Federal government or the
29 State, or any agency or instrumentality thereof, in
30 relationship to such grants, loans or appropriations.
31 (b) The Authority shall have power to procure and enter
32 into contracts for any type of insurance and indemnity
33 agreements covering loss or damage to property from any
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1 cause, including loss of use and occupancy, or covering any
2 other insurable risk.
3 (c) The Authority shall have the continuing power to
4 issue bonds for its corporate purposes. Bonds may be issued
5 by the Authority in one or more series and may provide for
6 the payment of any interest deemed necessary on such bonds,
7 of the costs of issuance of such bonds, of any premium on any
8 insurance, or of the cost of any guarantees, letters of
9 credit or other similar documents, may provide for the
10 funding of the reserves deemed necessary in connection with
11 such bonds, and may provide for the refunding or advance
12 refunding of any bonds or for accounts deemed necessary in
13 connection with any purpose of the Authority. The bonds may
14 bear interest payable at any time or times and at any rate or
15 rates, notwithstanding any other provision of law to the
16 contrary, and such rate or rates may be established by an
17 index or formula which may be implemented or established by
18 persons appointed or retained therefor by the Authority, or
19 may bear no interest or may bear interest payable at maturity
20 or upon redemption prior to maturity, may bear such date or
21 dates, may be payable at such time or times and at such place
22 or places, may mature at any time or times not later than 40
23 years from the date of issuance, may be sold at public or
24 private sale at such time or times and at such price or
25 prices, may be secured by such pledges, reserves, guarantees,
26 letters of credit, insurance contracts or other similar
27 credit support or liquidity instruments, may be executed in
28 such manner, may be subject to redemption prior to maturity,
29 may provide for the registration of the bonds, and may be
30 subject to such other terms and conditions all as may be
31 provided by the resolution or indenture authorizing the
32 issuance of such bonds. The holder or holders of any bonds
33 issued by the Authority may bring suits at law or proceedings
34 in equity to compel the performance and observance by any
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1 person or by the Authority or any of its agents or employees
2 of any contract or covenant made with the holders of such
3 bonds and to compel such person or the Authority and any of
4 its agents or employees to perform any duties required to be
5 performed for the benefit of the holders of any such bonds by
6 the provision of the resolution authorizing their issuance,
7 and to enjoin such person or the Authority and any of its
8 agents or employees from taking any action in conflict with
9 any such contract or covenant.
10 Notwithstanding the form and tenor of any such bonds and
11 in the absence of any express recital on the face thereof
12 that it is non-negotiable, all such bonds shall be negotiable
13 instruments. Pending the preparation and execution of any
14 such bonds, temporary bonds may be issued as provided by the
15 resolution.
16 The bonds shall be sold by the Authority in such manner
17 as it shall determine.
18 The bonds may be secured as provided in the authorizing
19 resolution by the receipts, revenues, income and other
20 available funds of the Authority and by any amounts derived
21 by the Authority from the loan agreement or lease agreement
22 with respect to the project or projects; and bonds may be
23 issued as general obligations of the Authority payable from
24 such revenues, funds and obligations of the Authority as the
25 bond resolution shall provide, or may be issued as limited
26 obligations with a claim for payment solely from such
27 revenues, funds and obligations as the bond resolution shall
28 provide. The Authority may grant a specific pledge or
29 assignment of and lien on or security interest in such
30 rights, revenues, income, or amounts and may grant a specific
31 pledge or assignment of and lien on or security interest in
32 any reserves, funds or accounts established in the resolution
33 authorizing the issuance of bonds. Any such pledge,
34 assignment, lien or security interest for the benefit of the
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1 holders of the Authority's bonds shall be valid and binding
2 from the time the bonds are issued without any physical
3 delivery or further act, and shall be valid and binding as
4 against and prior to the claims of all other parties having
5 claims against the Authority or any other person irrespective
6 of whether the other parties have notice of the pledge,
7 assignment, lien or security interest. As evidence of such
8 pledge, assignment, lien and security interest, the Authority
9 may execute and deliver a mortgage, trust agreement,
10 indenture or security agreement or an assignment thereof.
11 A remedy for any breach or default of the terms of any
12 such agreement by the Authority may be by mandamus
13 proceedings in any court of competent jurisdiction to compel
14 the performance and compliance therewith, but the agreement
15 may prescribe by whom or on whose behalf such action may be
16 instituted.
17 It is expressly understood that the Authority may, but
18 need not, acquire title to any project with respect to which
19 it exercises its authority.
20 (d) With respect to the powers granted by this Act, the
21 Authority may adopt rules and regulations prescribing the
22 procedures by which persons may apply for assistance under
23 this Act. Nothing herein shall be deemed to preclude the
24 Authority, prior to the filing of any formal application,
25 from conducting preliminary discussions and investigations
26 with respect to the subject matter of any prospective
27 application.
28 (e) The Authority shall have power to acquire by
29 purchase, lease, gift or otherwise any property or rights
30 therein from any person useful for its purposes, whether
31 improved for the purposes of any prospective project, or
32 unimproved. The Authority may also accept any donation of
33 funds for its purposes from any such source. The Authority
34 shall have no independent power of condemnation but may
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1 acquire any property or rights therein obtained upon
2 condemnation by any other authority, governmental entity or
3 unit of local government with such power.
4 (f) The Authority shall have power to develop, construct
5 and improve either under its own direction, or through
6 collaboration with any approved applicant, or to acquire
7 through purchase or otherwise, any project, using for such
8 purpose the proceeds derived from the sale of its bonds or
9 from governmental loans or grants, and to hold title in the
10 name of the Authority to such projects.
11 (g) The Authority shall have power to lease pursuant to
12 a lease agreement any project so developed and constructed or
13 acquired to the approved tenant on such terms and conditions
14 as may be appropriate to further the purposes of this Act and
15 to maintain the credit of the Authority. Any such lease may
16 provide for either the Authority or the approved tenant to
17 assume initially, in whole or in part, the costs of
18 maintenance, repair and improvements during the leasehold
19 period. In no case, however, shall the total rentals from
20 any project during any initial leasehold period or the total
21 loan repayments to be made pursuant to any loan agreement, be
22 less than an amount necessary to return over such lease or
23 loan period (1) all costs incurred in connection with the
24 development, construction, acquisition or improvement of the
25 project and for repair, maintenance and improvements thereto
26 during the period of the lease or loan; provided, however,
27 that the rentals or loan repayments need not include costs
28 met through the use of funds other than those obtained by the
29 Authority through the issuance of its bonds or governmental
30 loans; (2) a reasonable percentage additive to be agreed upon
31 by the Authority and the borrower or tenant to cover a
32 properly allocable portion of the Authority's general
33 expenses, including, but not limited to, administrative
34 expenses, salaries and general insurance, and (3) an amount
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1 sufficient to pay when due all principal of, interest and
2 premium, if any on, any bonds issued by the Authority with
3 respect to the project. The portion of total rentals payable
4 under clause (3) of this subsection (g) shall be deposited in
5 such special accounts, including all sinking fund,
6 acquisition or construction funds, debt service and other
7 funds as provided by any resolution, mortgage or trust
8 agreement of the Authority pursuant to which any bond is
9 issued.
10 (h) The Authority has the power, upon the termination of
11 any leasehold period of any project, to sell or lease for a
12 further term or terms such project on such terms and
13 conditions as the Authority shall deem reasonable and
14 consistent with the purposes of the Act. The net proceeds
15 from all such sales and the revenues or income from such
16 leases shall be used to satisfy any indebtedness of the
17 Authority with respect to such project and any balance may be
18 used to pay any expenses of the Authority or be used for the
19 further development, construction, acquisition or improvement
20 of projects.
21 In the event any project is vacated by a tenant prior to
22 the termination of the initial leasehold period, the
23 Authority shall sell or lease the facilities of the project
24 on the most advantageous terms available. The net proceeds
25 of any such disposition shall be treated in the same manner
26 as the proceeds from sales or the revenues or income from
27 leases subsequent to the termination of any initial leasehold
28 period.
29 (i) The Authority shall have the power to make loans to
30 persons to finance a project, to enter into loan agreements
31 with respect thereto, and to accept guarantees from persons
32 of its loans or the resultant evidences of obligations of the
33 Authority.
34 (j) The Authority may fix, determine, charge and collect
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1 any premiums, fees, charges, costs and expenses, including,
2 without limitation, any application fees, commitment fees,
3 program fees, financing charges or publication fees from any
4 person in connection with its activities under this Act.
5 (k) In addition to the funds established as provided
6 herein, the Authority shall have the power to create and
7 establish such reserve funds and accounts as may be necessary
8 or desirable to accomplish its purposes under this Act and to
9 deposit its available monies into the funds and accounts.
10 (l) At the request of the governing body of any unit of
11 local government, the Authority is authorized to market such
12 local government's revenue bond offerings by preparing bond
13 issues for sale, advertising for sealed bids, receiving bids
14 at its offices, making the award to the bidder that offers
15 the most favorable terms or arranging for negotiated
16 placements or underwritings of such securities. The
17 Authority may, at its discretion, offer for concurrent sale
18 the revenue bonds of several local governments. Sales by the
19 Authority of revenue bonds under this Section shall in no way
20 imply State guarantee of such debt issue. The Authority may
21 require such financial information from participating local
22 governments as it deems necessary in order to carry out the
23 purposes of this subsection (1).
24 (m) The Authority may make grants to any county to which
25 Division 5-37 of the Counties Code is applicable to assist in
26 the financing of capital development, construction and
27 renovation of new or existing facilities for hospitals and
28 health care facilities under that Act. Such grants may only
29 be made from funds appropriated for such purposes from the
30 Build Illinois Bond Fund or the Build Illinois Purposes Fund.
31 (n) The Authority may establish an urban development
32 action grant program for the purpose of assisting
33 municipalities in Illinois which are experiencing severe
34 economic distress to help stimulate economic development
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1 activities needed to aid in economic recovery. The Authority
2 shall determine the types of activities and projects for
3 which the urban development action grants may be used,
4 provided that such projects and activities are broadly
5 defined to include all reasonable projects and activities the
6 primary objectives of which are the development of viable
7 urban communities, including decent housing and a suitable
8 living environment, and expansion of economic opportunity,
9 principally for persons of low and moderate incomes. The
10 Authority shall enter into grant agreements from monies
11 appropriated for such purposes from the Build Illinois Bond
12 Fund or the Build Illinois Purposes Fund. The Authority
13 shall monitor the use of the grants, and shall provide for
14 audits of the funds as well as recovery by the Authority of
15 any funds determined to have been spent in violation of this
16 subsection (n) or any rule or regulation promulgated
17 hereunder. The Authority shall provide technical assistance
18 with regard to the effective use of the urban development
19 action grants. The Authority shall file an annual report to
20 the General Assembly concerning the progress of the grant
21 program.
22 (o) The Authority may establish a Housing Partnership
23 Program whereby the Authority provides zero-interest loans to
24 municipalities for the purpose of assisting in the financing
25 of projects for the rehabilitation of affordable multi-family
26 housing for low and moderate income residents. The Authority
27 may provide such loans only upon a municipality's providing
28 evidence that it has obtained private funding for the
29 rehabilitation project. The Authority shall provide 3 State
30 dollars for every 7 dollars obtained by the municipality from
31 sources other than the State of Illinois. The loans shall be
32 made from monies appropriated for such purpose from the Build
33 Illinois Bond Fund or the Build Illinois Purposes Fund.
34 State loan monies under this subsection shall be used only
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1 for the acquisition and rehabilitation of existing buildings
2 containing 4 or more dwelling units. The terms of any loan
3 made by the municipality under this subsection shall require
4 repayment of the loan to the municipality upon any sale or
5 other transfer of the project.
6 (p) The Authority may award grants to universities and
7 research institutions, research consortiums and other
8 not-for-profit entities for the purposes of: remodeling or
9 otherwise physically altering existing laboratory or research
10 facilities, expansion or physical additions to existing
11 laboratory or research facilities, construction of new
12 laboratory or research facilities or acquisition of modern
13 equipment to support laboratory or research operations
14 provided that such grants (i) be used solely in support of
15 project and equipment acquisitions which enhance technology
16 transfer, and (ii) not constitute more than 60 percent of the
17 total project or acquisition cost.
18 (q) Grants may be awarded by the Authority to units of
19 local government for the purpose of developing the
20 appropriate infrastructure or defraying other costs to the
21 local government in support of laboratory or research
22 facilities provided that such grants may not exceed 40% of
23 the cost to the unit of local government.
24 (r) The Authority may establish a Direct Loan Program to
25 make loans to individuals, partnerships or corporations for
26 the purpose of an industrial project, as defined in Section 3
27 of this Act. For the purposes of such program and not by way
28 of limitation on any other program of the Authority, the
29 Authority shall have the power to issue bonds, notes, or
30 other evidences of indebtedness including commercial paper
31 for purposes of providing a fund of capital from which it may
32 make such loans. The Authority shall have power to use any
33 appropriations from the State made especially for the
34 Authority's Direct Loan Program for additional capital to
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1 make such loans or for the purposes of reserve funds or
2 pledged funds which secure the Authority's obligations of
3 repayment of any bond, note or other form of indebtedness
4 established for the purpose of providing capital for which it
5 intends to make such loans under the Direct Loan Program.
6 For the purpose of obtaining such capital, the Authority may
7 also enter into agreements with financial institutions and
8 other persons for the purpose of selling loans and developing
9 a secondary market for such loans.
10 Loans made under the Direct Loan Program may be in an
11 amount not to exceed $300,000 and shall be made for a portion
12 of an industrial project which does not exceed 50% of the
13 total project. No loan may be made by the Authority unless
14 approved by the affirmative vote of at least 8 members of the
15 board. The Authority shall establish procedures and publish
16 rules which shall provide for the submission, review, and
17 analysis of each direct loan application and which shall
18 preserve the ability of each board member to reach an
19 individual business judgment regarding the propriety of
20 making each direct loan. The collective discretion of the
21 board to approve or disapprove each loan shall be
22 unencumbered.
23 The Authority may establish and collect such fees and
24 charges, determine and enforce such terms and conditions, and
25 charge such interest rates as it determines to be necessary
26 and appropriate to the successful administration of the
27 Direct Loan Program. The Authority may require such
28 interests in collateral and such guarantees as it determines
29 are necessary to project the Authority's interest in the
30 repayment of the principal and interest of each loan made
31 under the Direct Loan Program.
32 (s) The Authority may guarantee private loans to third
33 parties up to a specified dollar amount in order to promote
34 economic development in this State.
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1 (t) The Authority may adopt rules and regulations as may
2 be necessary or advisable to implement the powers conferred
3 by this Act.
4 (u) The Authority shall have the power to issue bonds,
5 notes or other evidences of indebtedness, which may be used
6 to make loans to units of local government which are
7 authorized to enter into loan agreements and other documents
8 and to issue bonds, notes and other evidences of indebtedness
9 for the purpose of financing the protection of storm sewer
10 outfalls, the construction of adequate storm sewer outfalls,
11 and the provision for flood protection of sanitary sewage
12 treatment plans, in counties that have established a
13 stormwater management planning committee in accordance with
14 Section 5-1062 of the Counties Code. Any such loan shall be
15 made by the Authority pursuant to the provisions of Article
16 20 of this Act. The unit of local government shall pay back
17 to the Authority the principal amount of the loan, plus
18 annual interest as determined by the Authority. The
19 Authority shall have the power, subject to appropriations by
20 the General Assembly, to subsidize or buy down a portion of
21 the interest on such loans, up to 4% per annum.
22 (v) The Authority may accept security interests as
23 provided in Sections 11-3 and 11-3.3 of the Illinois Public
24 Aid Code.
25 (w) Moral Obligation. In the event that the Authority
26 determines that monies of the Authority will not be
27 sufficient for the payment of the principal of and interest
28 on its bonds during the next State fiscal year, the
29 Chairperson, as soon as practicable, shall certify to the
30 Governor the amount required by the Authority to enable it to
31 pay such principal of and interest on the bonds. The
32 Governor shall submit the amount so certified to the General
33 Assembly as soon as practicable, but no later than the end of
34 the current State fiscal year. This subsection shall not
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1 apply to any bonds or notes as to which the Authority shall
2 have determined, in the resolution authorizing the issuance
3 of the bonds or notes, that this subsection shall not apply.
4 Whenever the Authority makes such a determination, that fact
5 shall be plainly stated on the face of the bonds or notes and
6 that fact shall also be reported to the Governor. In the
7 event of a withdrawal of moneys from a reserve fund
8 established with respect to any issue or issues of bonds of
9 the Authority to pay principal or interest on those bonds,
10 the Chairperson of the Authority, as soon as practicable,
11 shall certify to the Governor the amount required to restore
12 the reserve fund to the level required in the resolution or
13 indenture securing those bonds. The Governor shall submit
14 the amount so certified to the General Assembly as soon as
15 practicable, but no later than the end of the current State
16 fiscal year. The Authority shall obtain written approval from
17 the Governor for any bonds and notes to be issued under this
18 subsection. The principal amount of Authority bonds
19 outstanding that were issued under this subsection or under
20 70 ILCS 520/7(f), 70 ILCS 530/7(f), 20 ILCS 3805/26.1, 70
21 ILCS 535/7(f), 20 ILCS 3505/7.84, 70 ILCS 510/9.1, 70 ILCS
22 515/9.1 or 30 ILCS 360/2-6 (c) which have been assumed by the
23 Authority shall not exceed $850,000,000. In no event shall
24 the Governor approve more than $50,000,000 in bonds issued
25 under this subsection in any fiscal year; provided that if
26 less than $50,000,000 is approved in any fiscal year, the
27 balance shall be added to the $50,000,000 limit for the next
28 fiscal year but in no event shall more than $100,000,000 be
29 approved in any fiscal year.
30 ARTICLE 5
31 INDUSTRIAL REVENUE BOND INSURANCE FUND
32 Section 5-5. Findings and Declaration of Policy. It is
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1 hereby found and declared that a continuing need exists to
2 maintain and develop the State's economy; that there are
3 significant barriers in the capital markets inhibiting the
4 issuance by the Authority of industrial revenue bonds to
5 assist in financing industrial projects in the State,
6 particularly for smaller firms; that the establishment of the
7 Industrial Revenue Bond Insurance Fund and the exercise by
8 the Authority of the powers granted in Article 5 of this Act
9 will promote economic development by widening the market for
10 the Authority's revenue bonds.
11 Section 5-10. Definitions. The following terms,
12 whenever used or referred to in Article 5 of this Act, shall
13 have the following meanings ascribed to them, except where
14 the context clearly requires otherwise:
15 (a) "Financial Institution" means a financial
16 institution which is a trust company, a bank, a savings bank,
17 a credit union, an investment bank, a broker, an investment
18 trust, a pension fund, a building and loan association, a
19 savings and loan association, an insurance company, or any
20 other institution acceptable to the Authority, authorized to
21 do business in the State and approved by the Authority to
22 insure bonds or loans for industrial projects authorized by
23 this Act.
24 (b) "Participating lender" means any trust company,
25 bank, savings bank, credit union, investment bank, broker,
26 investment trust, pension fund, building and loan
27 association, savings and loan association, insurance company
28 or other institution approved by the Authority which assumes
29 a portion of the risk on a loan for an industrial project as
30 provided in Article 5 of this Act.
31 Section 5-15. Industrial Project Insurance Fund. There
32 is created the Industrial Project Insurance Fund, hereafter
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1 referred to in Article 5 of this Act as the "Fund." The
2 Treasurer shall have custody of the Fund, which shall be held
3 outside of the State Treasury, except that custody may be
4 transferred to and held by any bank, trust company or other
5 fiduciary with whom the Authority executes a trust agreement
6 as authorized by paragraph (h) of Section 5-20 of this Act.
7 Any portion of the Fund against which a charge has been made,
8 shall be held for the benefit of the holders of the loans or
9 bonds insured under Section 5-20 of this Act.
10 There shall be deposited in the Fund such amounts,
11 including but not limited to:
12 (a) All receipts of bond and loan insurance premiums;
13 (b) All proceeds of assets of whatever nature received
14 by the Authority as a result of default or delinquency with
15 respect to insured loans or bonds with respect to which
16 payments from the Fund have been made, including proceeds
17 from the sale, disposal, lease or rental of real or personal
18 property which the Authority may receive under the provisions
19 of Article 5 of this Act, but excluding the proceeds of
20 insurance hereunder;
21 (c) All receipts from any applicable contract or
22 agreement entered into by the Authority under paragraph (b)
23 of Section 5-20 of this Act;
24 (d) Any State appropriations, transfers of
25 appropriations, or transfers of general obligation bond
26 proceeds or other monies made available to the Fund.
27 Amounts in the Fund shall be used in accordance with the
28 provisions of Article 5 of this Act to satisfy any valid
29 insurance claim payable therefrom and may be used for any
30 other purpose determined by the Authority in accordance with
31 insurance contract or contracts with financial institutions
32 entered into pursuant to this Act, including without
33 limitation protecting the interest of the Authority in
34 industrial projects during periods of loan delinquency or
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1 upon loan default through the purchase of industrial projects
2 in foreclosure proceedings or in lieu of foreclosure or
3 through any other means. Such amounts may also be used to
4 pay administrative costs and expenses reasonably allocable to
5 the activities in connection with the Fund and to pay taxes,
6 maintenance, insurance, security and any other costs and
7 expenses of bidding for, acquiring, owning, carrying and
8 disposing of industrial projects which were financed with the
9 proceeds of insured bonds or loans. In the case of a default
10 in payment with respect to any loan, mortgage or other
11 agreement so insured, the amount of the default shall
12 immediately, and at all times during the continuance of such
13 default, and to the extent provided in any applicable
14 agreement, constitute a charge on the Fund.
15 Any amounts in the Fund not currently needed to meet the
16 obligations of the Fund may be invested as provided by law in
17 obligations designated by the Authority, and all income from
18 such investments shall become part of the Fund. In making
19 such investments, the Authority shall act with the care,
20 skill, diligence and prudence under the circumstances of a
21 prudent person acting in a like capacity in the conduct of an
22 enterprise of like character and with like aims. It shall
23 diversify such investments of the Authority so as to minimize
24 the risk of large losses, unless under the circumstances it
25 is clearly not prudent to do so.
26 Any amounts in the Fund not needed to meet the
27 obligations of the Fund may be transferred to the Credit
28 Enhancement Development Fund of the Authority pursuant to
29 resolution of the members of the Authority.
30 Section 5-20. Powers and Duties; Industrial Project
31 Insurance Program. The Authority has the power:
32 (a) To insure and make advance commitments to insure all
33 or any part of the payments required on the bonds issued or a
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1 loan made to finance any environmental facility under the
2 Illinois Environmental Facilities Financing Act or for any
3 industrial project upon such terms and conditions as the
4 Authority may prescribe in accordance with Article 5 of this
5 Act. The insurance provided by the Authority shall be
6 payable solely from the Fund created by Section 5-20 and
7 shall not constitute a debt or pledge of the full faith and
8 credit of the State, the Authority, or any political
9 subdivision thereof;
10 (b) To enter into insurance contracts, letters of credit
11 or any other agreements or contracts with financial
12 institutions with respect to the Fund and any bonds or loans
13 insured thereunder. Any such agreement or contract may
14 contain terms and provisions necessary or desirable in
15 connection with the program, subject to the requirements
16 established by this Act, including without limitation terms
17 and provisions relating to loan documentation, review and
18 approval procedures, origination and servicing rights and
19 responsibilities, default conditions, procedures and
20 obligations with respect to insurance contracts made under
21 this Act. The agreements or contracts may be executed on an
22 individual, group or master contract basis with financial
23 institutions;
24 (c) To charge reasonable fees to defray the cost of
25 obtaining letters of credit or other similar documents, other
26 than insurance contracts under paragraph (b). Any such fees
27 shall be payable by such person, in such amounts and at such
28 times as the Authority shall determine, and the amount of the
29 fees need not be uniform among the various bonds or loans
30 insured;
31 (d) To fix insurance premiums for the insurance of
32 payments under the provisions of Article 5 of this Act. Such
33 premiums shall be computed as determined by the Authority.
34 Any premiums for the insurance of loan payments under the
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1 provisions of this Act shall be payable by such person, in
2 such amounts and at such times as the Authority shall
3 determine, and the amount of the premiums need not be uniform
4 among the various bonds or loans insured;
5 (e) To establish application fees and prescribe
6 application, notification, contract and insurance forms,
7 rules and regulations it deems necessary or appropriate;
8 (f) To make loans and to issue bonds secured by
9 insurance or other agreements authorized by paragraphs (a)
10 and (b) of this Section 5-20 and to issue bonds secured by
11 loans that are guaranteed by the federal government or
12 agencies thereof;
13 (g) To issue a single bond issue, or a series of bond
14 issues, for a group of industrial projects, a group of
15 corporations, or a group of business entities or any
16 combination thereof insured by insurance or backed by any
17 other agreement authorized by paragraphs (a) and (b) of this
18 Section 5-20 or secured by loans that are guaranteed by the
19 federal government or agencies thereof;
20 (h) To enter into trust agreements for the management of
21 the Fund created under Section 5-15 of this Act; and
22 (i) To exercise such other powers as are necessary or
23 incidental to the foregoing.
24 Section 5-25. Insurance Contracts; Claim Responsibility.
25 Any contract of insurance made by the Authority with a lender
26 or bondholder or for the benefit thereof under this Act shall
27 provide that claims payable under such contract shall be paid
28 from any amounts available in the Fund and from any amounts
29 available under the terms of any applicable contract or
30 agreement with other financial institutions, in such order of
31 priority as the Authority shall deem appropriate. The
32 obligation of the Authority to make payments under any such
33 contract shall be limited solely to the amounts provided in
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1 such contract and shall not constitute a debt or liability of
2 the State, the Authority or any subdivision thereof.
3 Any insurance contract or other agreement with a lender
4 or bondholder or for the benefit thereof and any rule or
5 regulation of the Authority implementing the insurance
6 program may contain such other terms, provisions or
7 conditions as the Authority deems necessary or appropriate,
8 including, without limitation, those relating to the payment
9 of insurance premiums, the giving of notice, claim
10 procedures, the sources of payment for claims, the priority
11 of competing claims for payment, the release or termination
12 of loan security and borrower liability, the timing of
13 payment, the maintenance and disposition of industrial
14 projects and the use of amounts received during periods of
15 delinquency or upon default, and any other provisions
16 concerning the rights of insured parties or conditions to the
17 payment of insurance claims.
18 Section 5-30. Applications for Insured Industrial
19 Project Loans; Procedures. Applications received by the
20 Authority shall be forwarded to a credit review committee
21 consisting of 3 persons experienced in industrial financing
22 selected by the Authority for a review and report concerning
23 the advisability of approving the proposed insurance. The
24 review and report shall include facts about the company's
25 history, job opportunities, stability of employment,
26 financial condition and structure, income statements, market
27 prospects and management, and any other facts material to the
28 insurance request. The report shall include a reasoned
29 opinion as to whether providing the insurance would tend to
30 fulfill the purposes of the Authority and the insurance
31 program. The report shall be advisory in nature only.
32 Payment shall be made to the members of the committee
33 selected by the Authority on a reasonable consultant basis,
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1 as the Authority may determine. The credit review committee
2 shall be of such composition, act for such time and have such
3 powers as shall be specified in the agreement or agreements
4 establishing its existence and, to the extent so specified,
5 shall act for the Authority in matters concerning the
6 insurance program authorized by Article 5 of this Act.
7 The Authority shall, on the basis of the application, the
8 report of the credit review committee, the information
9 provided by the local or regional industrial development
10 agency, and any other appropriate information, prepare a
11 report concerning the credit worthiness of the proposed
12 borrower, the loan record of the participating lender, the
13 financial commitment of the participating lender, the manner
14 in which the proposed industrial project will advance the
15 economy of the State and the soundness of the proposed loan.
16 The Fund, or any portion thereof against which a charge
17 has been made, shall be held for the benefit of the holders
18 of the bonds or loans insured under Section 5-20 of this Act,
19 as provided by agreement between the Authority and such
20 holders.
21 The Authority shall be satisfied that the Fund is
22 protected by adequate security on all bonds or loans insured
23 by the Authority.
24 Section 5-35. Loan Approval Standards. Before approving
25 any bond or loan insurance under this Act, the Authority
26 shall find that any loan insured by or to be made from the
27 proceeds of bonds insured by the Authority under this Act
28 shall:
29 (a) Be made for an industrial project or any
30 environmental facility under the Illinois Environmental
31 Facilities Financing Act;
32 (b) Be made to a borrower approved by the Authority as
33 responsible and creditworthy;
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1 (c) Be reviewed for insurance by the credit review
2 committee established by the Authority pursuant to this Act;
3 (d) In the case of real property, be secured by a first
4 mortgage on the property, or by any other security
5 satisfactory to the Authority to secure payment of the loans,
6 and have a maturity date not later than 25 years after the
7 date of the loan;
8 (e) In the case of machinery and equipment, be secured
9 by a first security interest in the machinery and equipment,
10 or by any other security satisfactory to the Authority to
11 secure payment of the loan, and have a maturity date not
12 later than 12 years from the date of the loan;
13 (f) Contain complete amortization provisions
14 satisfactory to the Authority;
15 (g) Be in such principal amount and form, and contain
16 such terms and provisions with respect to property insurance,
17 repairs, alterations, payment of taxes and assessments,
18 delinquency charges, default remedies, additional security
19 and other matters as the Authority shall determine;
20 (h) Be made only after the Authority has made a
21 determination that, in its sole opinion, the loan has the
22 potential to provide or retain substantial employment in
23 relation to the principal amount of the loan to be insured,
24 which employment, so far as feasible, may be expected to be
25 of residents of areas of critical labor surplus as defined in
26 Section 3 of this Act;
27 (i) Be made only after the Authority has made a
28 determination that, in its sole opinion, adequate provision
29 is being or will be made to meet any increased demand upon
30 community public facilities that will likely result form the
31 project; and
32 (j) Be made only after the Authority has made a
33 determination that, in its sole opinion, the public interest
34 is adequately protected by the terms of the loan and of the
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1 insurance contract or other agreements.
2 Any contract of insurance executed by the Authority under
3 this Act shall be conclusive evidence of eligibility for such
4 insurance, and the validity of any contract of insurance so
5 executed or of an advance commitment to insure shall be
6 incontestable in the hands of a borrower or bondholder from
7 the date of execution and delivery of the contract or
8 commitment, except for fraud, or misrepresentation on the
9 part of the borrower and, as to commitments to insure,
10 noncompliance with the commitment or Authority rules or
11 regulations in force at the time of issuance of the
12 commitment.
13 Nothing in this Act shall be construed as creating any
14 rights of a competitor of an approved borrower or any
15 applicant whose application is denied by the Authority to
16 challenge any application which is accepted by the Authority
17 and any loan, contract of insurance or other agreement
18 executed in connection therewith.
19 Section 5-40. Investments in Insured Debts of the
20 Authority. The State and all counties, municipalities and
21 other public corporations, political subdivisions and public
22 bodies, and public officers of any thereof, all banks,
23 bankers, trust companies, savings banks and institutions,
24 building and loan associations, savings and loan
25 associations, investment companies and other persons carrying
26 on a banking business, all insurance companies, insurance
27 associations and other persons carrying on an insurance
28 business and all executors, administrators, guardians,
29 trustees and other fiduciaries may legally invest any sinking
30 funds, moneys or other funds belonging to them or within
31 their control in any bonds, loans or extension of credit
32 which are the subject of insurance pursuant to Article 5 of
33 this Act, it being the purpose of this Section to authorize
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1 the investment of such bonds, loans or extension of credit of
2 all sinking, insurance, retirement, compensation, pension and
3 trust funds, whether owned or controlled by private or public
4 persons or officers; provided, however, that nothing
5 contained in this Section may be construed as relieving any
6 persons from any duty of exercising reasonable care in
7 selecting securities for purchase or investment.
8 The bonds and any loan or extension of credit which are
9 the subject of insurance pursuant to Article 5 of this Act
10 are also hereby made securities which may properly and
11 legally be deposited with and received by all public officers
12 and bodies of the State or any agency or political
13 subdivisions thereof and all municipalities and public
14 corporations for any purpose for which the deposit of bonds
15 is now or may hereafter be authorized by law.
16 Section 5-45. Cooperation with Local Industrial
17 Development Agencies. When the Authority receives an
18 application from a potential insured loan borrower, it shall
19 promptly notify the local industrial development agency of
20 that fact in writing if such an agency exists in the
21 municipality or county where such industrial project is
22 proposed to be financed; or the corporate authorities in such
23 municipality where no such agency exists. The Authority
24 shall provide the local industrial development agency with
25 any available information that the agency needs to prepare a
26 recommendation concerning the advisability of the industrial
27 project and its impact, economic and otherwise, on the
28 community and the State. Such application shall include a
29 written authorization by the applicant that such notification
30 and information be made available to such agency or
31 municipality to the extent that such information is not
32 deemed to be confidential under Section 5-50 of this Act.
33 The Authority shall not consider any application which does
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1 not include such written authorization.
2 The Authority shall encourage financial participation by
3 local industrial development agencies by giving priority
4 consideration to insured loan applicants from areas serviced
5 by those agencies that have demonstrated a commitment to
6 economic development.
7 Section 5-50. Documentary material concerning trade
8 secrets; Commercial or financial information;
9 Confidentiality. Any documentary materials or data made or
10 received by any member, agent, or employee of the Authority
11 or the credit review committees, to the extent that such
12 materials or data consist of trade secrets, commercial or
13 financial information regarding the operation of any
14 enterprise conducted by an applicant for, or recipient of,
15 any form of assistance which the Authority is empowered to
16 render under Article 5 of this Act, or regarding the
17 competitive position of such enterprise in a particular field
18 of endeavor, shall not be deemed public records.
19 ARTICLE 10
20 VENTURE INVESTMENT FUND
21 Section 10-5. Findings and Declaration of Policy. It is
22 hereby found and declared that a continuing need exists to
23 maintain and develop the State's economy; that assisting and
24 encouraging economic development through private enterprise
25 will help to create and maintain employment and governmental
26 revenues and is an important function of the State; that the
27 availability of seed capital and equity capital is an
28 important inducement to enterprises to remain, locate and
29 expand in the State; that there exists in the State gaps in
30 the availability of capital for the development and
31 exploitation of new technologies, products, processes and
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1 inventions and that this shortage has resulted and will
2 continue to result in a shortfall in the development of new
3 enterprises and employment in Illinois; that the
4 establishment of the Illinois Venture Investment Fund and the
5 exercise by the Authority of the powers granted in Article 10
6 of this Act will promote economic development resulting in
7 increased employment and public revenues; and that the
8 provisions of this Act are hereby declared to be in the
9 public interest and for the public benefit.
10 Section 10-10. Definitions. The following terms,
11 whenever used or referred to in Article 10 of this Act, shall
12 have the following meanings ascribed to them, except where
13 the context clearly requires otherwise:
14 (a) "Co-venture investment" means a venture capital or
15 seed capital investment by the Authority in qualified
16 securities of an enterprise that is made after or in
17 conjunction with one or more professional investors that have
18 or are making equity investments in that enterprise, as
19 provided in this Act. A direct investment made by the
20 Authority may later be treated as a co-venture upon such
21 investment made by a professional investor.
22 (b) "Direct investment" means a venture capital or seed
23 capital investment by the Authority in qualified securities
24 of an enterprise in which no professional investor or seed
25 capital investor is also making an equity investment.
26 (c) "Enterprise" means an individual, corporation,
27 partnership, joint venture, trust, estate, or unincorporated
28 association.
29 (d) "Professional investor" means any bank, bank holding
30 company, savings institution, trust company, credit union,
31 insurance company, investment company registered under the
32 Federal Investment Company Act of 1940, pension or
33 profit-sharing trust or other financial institution or
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1 institutional buyer, licensee under the Federal Small
2 Business Investment Act of 1958, or any person, partnership,
3 or other entity whose principal business is making venture
4 capital investments and whose net worth exceeds $250,000.
5 (e) "Qualified security" means any note, stock,
6 convertible security, treasury stock, bond, debenture,
7 evidence of indebtedness, limited partnership interest,
8 certificate of interest or participation in any
9 profit-sharing agreement, preorganization certificate or
10 subscription, transferable share, investment contract,
11 certificate of deposit for a security, certificate of
12 interest or participation in a patent or application
13 therefor, or in royalty or other payments under a patent or
14 application, or, in general, any interest or instrument
15 commonly known as a "security" or any certificate for,
16 receipt for, guarantee of, or option, warrant, or right to
17 subscribe to or purchase any of the foregoing.
18 (f) "Seed capital" means financing in the form of
19 investments in qualified securities that is provided for
20 applied research, development, testing, and initial marketing
21 of a technology, product, process, or invention and
22 associated working capital.
23 (g) "Seed capital investor" means any person,
24 partnership, corporation, trust, or other entity making a
25 seed capital investment.
26 (h) "Director" means the person designated by the
27 Authority to manage the activities associated with the
28 Illinois Venture Investment Fund.
29 (i) "Venture capital" means financing in the form of
30 investments in qualified securities that is provided for the
31 capital needs of a company that is developing a new
32 technology, product, process, or invention.
33 Section 10-15. Illinois Venture Investment Fund. There
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1 is created the Illinois Venture Investment Fund, hereafter
2 referred to in Article 10 of this Act as the "Fund." The
3 Treasurer of the Authority shall have custody of the Fund,
4 which shall be held outside of the State Treasury. The
5 Authority is authorized to accept any and all grants, loans,
6 including loans from State public employee pension funds, as
7 authorized by this Act or any other statute, subsidies,
8 matching funds, reimbursements, appropriations, transfers of
9 appropriations, federal grant monies, income derived from
10 investments, or other things of value from the federal or
11 state governments or any agency of any other state or from
12 any institution, person, firm or corporation, public or
13 private, for deposit in the Fund.
14 The Authority is authorized to use monies deposited in
15 the Fund expressly for the purposes specified in and
16 according to the procedures established by Sections 10-20
17 through 10-40 of this Act. The Authority may appoint a
18 Director to manage the activities associated with the Fund.
19 Such Director shall receive compensation as determined by the
20 Authority.
21 Section 10-20. Powers and Duties; Illinois Venture
22 Investment Fund Limits. The Authority shall invest and
23 reinvest the Fund and the income, thereof, in the following
24 ways:
25 (a) To make a direct investment in qualified securities
26 issued by enterprises and to dispose of those securities
27 within 10 years after the date of the direct investment as
28 determined by the Authority for the purpose of providing
29 venture capital or seed capital, provided that the investment
30 shall not exceed 49% of the estimated cost of development,
31 testing, and initial production and marketing and associated
32 working capital for the technology, product, process, or
33 invention, or $750,000, whichever is less;
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1 (b) To enter into written agreements or contracts
2 (including limited partnership agreements) with one or more
3 professional investors or one or more seed capital investors,
4 if any, for the purpose of establishing a pool of funds to be
5 used exclusively as venture capital or seed capital
6 investments. The Authority shall not invest more than
7 $2,000,000 in a single pool of funds or affiliated pools of
8 funds.
9 The agreement or contract shall provide for the pool of
10 funds to be managed by a professional investor. The manager
11 may be the general partner of a limited partnership of which
12 the Authority is a limited partner.
13 The agreement or contract may provide for reimbursement
14 of expenses of, and payment of a fee to, the manager. The
15 agreement or contract may also provide for payment to the
16 manager of a percentage, not to exceed 40% (computed on an
17 annual basis), of cash and other property payable to the
18 Authority as its pro-rata share of distributions to investors
19 in the pool of funds, provided that (i) no amount shall be
20 received by the manager upon sale or other disposition of
21 qualified investments in enterprises until recovery by the
22 Authority of its investment and upon liquidation or
23 withdrawal of the Authority from the pool of funds, the
24 manager shall be obligated to refund any amount received by
25 it from such percentage if necessary to allow the Authority
26 to recover its investment or (ii) the terms of payment of
27 cash and other property to the Authority are no less
28 favorable to the Authority than payments to other seed
29 capital investors (other than the manager) who are parties to
30 the agreement or contract.
31 (c) To make co-venture investments by entering into
32 agreements with one or more professional investors or one or
33 more seed capital investors, if any, who have formally agreed
34 to invest at least 50% as much as the Authority invests in
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1 the enterprise, for the purpose of providing venture capital
2 or seed capital; but no more than $1,000,000 shall be
3 invested by the Authority in the qualified securities of a
4 single enterprise. A total of not more than $1,500,000 may
5 be invested in the securities of a single enterprise, if the
6 Authority shall find, after the initial investment by the
7 Authority, that additional investments in the enterprise are
8 necessary to protect or enhance the initial investment of the
9 Authority.
10 Each co-venture investment agreement shall provide that
11 the Authority will recover its investment before or
12 simultaneously with any distribution to participating
13 professional investors or seed capital investors. The
14 Authority and participating professional investors and seed
15 capital investors shall share ratably in the profits earned
16 in any form on the co-venture investment, but the Authority
17 may, at its discretion, agree to pay to a participating
18 professional investor a percentage, not to exceed 40%
19 (computed on an annual basis), of cash and other property
20 payable to the Authority as its pro-rata share of
21 distributions to investors in the pool of funds, provided
22 that (i) no amount shall be received by the participating
23 professional investor upon sale or other disposition of
24 qualified investments in the enterprises until recovery by
25 the Authority of its investment and upon liquidation or
26 withdrawal of the Authority from the pool of funds, the
27 participating professional investor shall be obligated to
28 refund any amount received by it from such percentage if
29 necessary to allow the Authority to recover its investment or
30 (ii) the terms of payment of cash and other property to the
31 Authority are no less favorable to the Authority than
32 payments to other seed capital investors or professional
33 investors (other than the professional investor) who are
34 parties to the agreement or contract;
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1 (d) To purchase qualified securities of certified
2 development corporations created under Section 503 of the
3 federal Small Business Administration Act, including the
4 Illinois Small Business Growth Corporation, for the purpose
5 of making loans to enterprises that have the potential to
6 create substantial employment within the State per dollar
7 invested by the Authority, provided that the investment does
8 not exceed 25% of the total investment in each corporation at
9 the time the investment is approved by the Authority.
10 Investment by the Authority in the Illinois Small Business
11 Growth Corporation is not limited by the foregoing provision;
12 (e) To purchase qualified securities of small business
13 investment companies and minority enterprise small business
14 investment corporations certified by the federal Small
15 Business Administration which are committed to making 60% of
16 their investments in the State, provided that investments
17 from the Fund do not exceed 25% of the total investment in
18 these entities at the time the investment is approved by the
19 Authority;
20 (f) To make the investments of any funds held in
21 reserves or sinking funds, or any funds not required for
22 immediate disbursement, as may be lawful investments for
23 fiduciaries in the State;
24 (g) To facilitate and promote the acquisition and
25 revitalization of existing manufacturing enterprises by
26 developing and maintaining a list of firms, or divisions
27 thereof, located within the State that are available for
28 purchase, merger, or acquisition. The list shall be made
29 available at such charges as the Authority may determine to
30 all interested persons and institutions upon request. No
31 firm shall appear on the list without its prior written
32 permission. The list may contain such additional financial,
33 technical, market and other information as may be supplied by
34 the listed firm. The Authority shall bear no responsibility
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1 for the accuracy of the information contained on the list,
2 and each listed firm shall hold the Authority harmless
3 against any claim of inaccuracy.
4 Enterprises supported by investments from the Fund shall
5 receive consideration by the Authority in the allocation of
6 loans to be insured or loans to be made from the proceeds of
7 bonds to be insured by the Industrial Revenue Bond Insurance
8 Fund established under Sections 9 through 18 of this Act and
9 the Authority shall coordinate its activities under the 2
10 programs.
11 Section 10-25. Direct and Co-venture Investments. An
12 enterprise seeking a direct investment form the Illinois
13 Venture Investment Fund shall file an application with the
14 Authority along with an applicable fee to be determined by
15 the Authority. A valid application shall contain a business
16 plan, including a description of the enterprise and its
17 management, a statement of the amount, timing, and projected
18 use of the capital required, a statement concerning the
19 feasibility of the proposed technology, product, process, or
20 invention, its state of development and likelihood of
21 commercial success, a statement of the potential economic
22 impact of the enterprise on the State, including the number,
23 location, and types of jobs expected to be created, and such
24 other information as the Authority shall require.
25 In addition to the foregoing, the Authority shall approve
26 an application for a direct investment and shall approve a
27 co-venture investment only after it has made the following
28 findings:
29 (a) The enterprise has a reasonable chance of success;
30 (b) If the application is for a direct investment,
31 Authority participation is necessary to the success of the
32 enterprise because conventional, private funding is
33 unavailable in the traditional capital markets, or because
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1 funding has been offered on terms that would substantially
2 hinder the success of the enterprise;
3 (c) The technology, product, process, or invention for
4 which the investment is being made is feasible, has the
5 potential to achieve commercial success and the enterprise
6 has the potential to create substantial employment within the
7 State per dollar invested and that this employment, so far as
8 feasible, may be expected to be for residents of areas of
9 critical labor surplus as defined in Section 3 of this Act;
10 (d) The entrepreneur, investors, shareholders, and other
11 founders of the enterprise have already made or are obligated
12 to make a substantial financial and time commitment to the
13 enterprise;
14 (e) The securities to be purchased are qualified
15 securities;
16 (f) The Authority determines that the possible gains on
17 the investment are at least commensurate with the risk of
18 loss and that there is a reasonable possibility that the
19 Authority will recoup its investment, within 10 years after
20 the investment or such other time period as negotiated by the
21 Authority, through the receipt of interest payments,
22 dividends, capital gains, or other distribution of profits,
23 or royalties on investments made by the Authority; and
24 (g) Binding commitments have been made to the Authority
25 by the enterprise for adequate reporting of financial data to
26 the Authority and any participating professional investors or
27 seed capital investors. The report shall include an annual
28 audit of the books of the enterprise by an independent
29 certified public accountant if the Authority so requires.
30 The Authority and any participating professional investors or
31 seed capital investors shall secure sufficient contractual
32 rights from the enterprise as the Authority shall consider
33 prudent to protect the investment of the Authority,
34 including, at the discretion of the Authority and without
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1 limitation, a right of access to financial and other records
2 of the enterprise.
3 The Authority's interest in qualified securities from
4 investments shall not represent more than 49% of the voting
5 stock of any single enterprise at the time of purchase after
6 giving effect to the conversion of all outstanding
7 convertible securities of the enterprise. In the event of
8 severe financial difficulty that in the judgment of the
9 Authority threatens the investment of the Authority therein,
10 a greater percentage of those securities may be owned or
11 acquired by the Authority.
12 Section 10-30. Investment in Pools of Funds. Proposals
13 for the establishment of pools of funds under paragraph (b)
14 of Section 10-20 of this Act shall be submitted on a form,
15 contain the information, and be accompanied by a fee as
16 prescribed by the Authority.
17 The Authority shall not enter into any agreement or
18 contract under paragraph (b) of Section 10-20 of this Act
19 unless the agreement or contract provides that the pool of
20 funds will be invested in an enterprise only if the manager
21 finds all of the following:
22 (a) The enterprise has a reasonable chance of success.
23 (b) The technology, product, process, or invention for
24 which the investment is being made is feasible and has the
25 potential to achieve commercial success.
26 (c) The enterprise has the potential to create
27 substantial employment within the State.
28 (d) The entrepreneur, investors, shareholders, or
29 founders of the enterprise have made or are obligated to make
30 a substantial commitment of time and funds to the enterprise.
31 (e) The possible gains in the investment are at least
32 commensurable with the risk of loss and there is a reasonable
33 possibility that the investors, including the Authority, will
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1 recoup their investment within 10 years after the investment,
2 through the receipt of interest, dividends, capital gains, or
3 other distributions of profit or royalties.
4 (f) The enterprise shall have made binding commitments
5 for adequate reporting of and access to financing data of the
6 enterprise.
7 Section 10-35. Documentary materials concerning trade
8 secrets; Commercial or financial information; Confidentially.
9 Any documentary materials or data made or received by any
10 member, agent or employee of the Authority, to the extent
11 that such material or data consist of trade secrets,
12 commercial or financial information regarding the operation
13 of any enterprise conducted by an applicant for, or recipient
14 of, any form of assistance which the Authority is empowered
15 to render, or regarding the competitive position of such
16 enterprise in a particular field of endeavor, shall not be
17 deemed public records; provided, however, that if the
18 Authority purchases a qualified security from such
19 enterprise, the commercial and financial information,
20 excluding trade secrets, shall be deemed to become a public
21 record of the Authority after the expiration of 3 years from
22 the date of purchase of such qualified security, or, in the
23 case of such information made or received by any member,
24 agent or employee of the Authority after the purchase of such
25 qualified security, 3 years from the date such information
26 was made or received. Any discussion or consideration of
27 such trade secrets or commercial or financial information may
28 be held by the Authority, in executive sessions closed to the
29 public, notwithstanding the provisions of the Open Meetings
30 Act; provided, however, that the purpose of any such
31 executive session shall be set forth in the official minutes
32 of the Authority and business which is not related to such
33 purpose shall not be transacted, nor shall any vote be taken
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1 during such executive sessions.
2 Section 10-40. Tax Exemption. The Illinois Venture
3 Investment Fund and all its proceeds shall be and are hereby
4 declared exempt from all franchise and income taxes levied by
5 the State, provided nothing herein shall be construed to
6 exempt from any such taxes, or from any taxes levied in
7 connection with the manufacture, production, use or sale of
8 any technologies, products, processes or inventions which are
9 the subject of any agreement earned by any enterprise in
10 which the Authority has invested.
11 ARTICLE 15
12 LAND BANK FUND
13 Section 15-5. Findings and Declaration of Policy. It is
14 hereby found and declared that there exists within the State
15 a condition of substantial and persistent unemployment which
16 is detrimental to the welfare of the people of the State;
17 that the absence of an orderly conversion and development of
18 certain property results in blight, economic dislocation, and
19 additional unemployment; that there exists within the State a
20 significant resource of under utilized property which, if
21 returned to productive economic use, will increase
22 employment, increase revenues for the State and units of
23 local government, and lead to a more stable economy; that the
24 acquisition, development or disposition of such land or
25 property in conjunction with units of local government, local
26 industrial development agencies and private enterprise in
27 accordance with development plans will stimulate economic
28 development within the State; that the establishment of the
29 Illinois Land Bank Fund and the exercise by the Authority of
30 the powers granted in Article 15 of this Act will promote
31 economic development resulting in increased employment and
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1 public revenues; and that the provisions of this Act are
2 hereby declared to be in the public interest and benefit and
3 a valid public purpose.
4 Section 15-10. Definitions. The following terms,
5 whenever used or referred to in Article 15 of this Act, shall
6 have the following meanings ascribed to them, except where
7 the context clearly requires otherwise:
8 (a) "Property" means land, parcels or combination of
9 parcels, structures, and all improvements, easements and
10 franchises;
11 (b) "Redevelopment area" means any property which is a
12 contiguous area of at least 2 acres but less than 160 acres
13 in the aggregate located within one and one-half miles of the
14 corporate limits of a municipality and not included within
15 any municipality, where, (1) if improved, a substantial
16 proportion of the industrial, commercial and residential
17 buildings or improvements are detrimental to the public
18 safety, health, morals or welfare because of a combination of
19 any of the following factors: age; physical configuration;
20 dilapidation; structural or economic obsolescence;
21 deterioration; illegal use of individual structures; presence
22 of structures below minimum code standards; excessive and
23 sustained vacancies; overcrowding of structures and community
24 facilities; inadequate ventilation, light, sewer, water,
25 transportation and other infrastructure facilities;
26 inadequate utilities; excessive land coverage; deleterious
27 land use or layout; depreciation or lack of physical
28 maintenance; and lack of community planning; or (2) if
29 vacant, the sound utilization of land for industrial projects
30 is impaired by a combination of 2 or more of the following
31 factors: obsolete platting of the vacant land; diversity of
32 ownership of such land; tax and special assessment
33 delinquencies on such land; and deterioration of structures
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1 or site improvements in neighboring areas to the vacant land,
2 or the area immediately prior to becoming vacant qualified as
3 a redevelopment improved area; or (3) if an improved area
4 within the boundaries of a development project is located
5 within the corporate limits of the municipality in which 50%
6 or more of the structures in the area have an age of 35 years
7 or more, such area does not qualify under clause (1) but is
8 detrimental to the public safety, health morals or welfare
9 and such area may become a redevelopment area pursuant to
10 clause (1) because of a combination of 3 or more of the
11 factors specified in clause (1).
12 (c) "Enterprise" means an individual, corporation,
13 partnership, joint venture, trust, estate or unincorporated
14 association;
15 (d) "Development plan" means the comprehensive program
16 of the Authority and the participating entity to reduce or
17 eliminate those conditions the existence of which qualified
18 the project area as a redevelopment area. Each development
19 plan shall set forth in writing the program to be undertaken
20 to accomplish such objectives and shall include, without
21 limitation, estimated development project costs, the sources
22 of funds to pay costs, the nature and term of any obligations
23 to be issued, the most recent equalized assessed valuation of
24 the project area, an estimate as to the equalized assessed
25 valuation after development and the general land uses to
26 apply in the project area.
27 (e) "Development project" means any project in
28 furtherance of the objectives of a development plan,
29 including any building or buildings or building addition or
30 other structures to be newly constructed, renovated or
31 improved and suitable for use by an enterprise as an
32 industrial project, and includes the sites and other rights
33 in the property on which such buildings or structures are
34 located.
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1 (f) "Participating entity" means a municipality, a local
2 industrial development agency or an enterprise or any
3 combination thereof.
4 Section 15-15. Illinois Land Bank Fund; Creation; Use.
5 There is hereby created the Illinois Land Bank Fund,
6 hereafter referred to in Article 15 of this Act as the
7 "Fund". The Treasurer of the Authority shall have custody of
8 the Fund, which shall be held outside of the State Treasury.
9 The Authority is authorized to accept any and all grants,
10 loans, subsidies, matching funds, reimbursements,
11 appropriations, transfers of appropriations, federal grant
12 monies, income derived from investments, or other things of
13 value from the federal or state governments or units of local
14 government or any agency thereof or from an enterprise for
15 deposit in the Fund. The Authority is authorized to use
16 monies deposited in the Fund expressly for the purposes
17 specified in and according to the procedures established by
18 Sections 15-20 through 15-30 of this Act.
19 Section 15-20. Powers and Duties.
20 (a) The Authority shall have the following powers with
21 respect to redevelopment areas:
22 (1) To acquire and possess property in a
23 redevelopment area;
24 (2) To clear any such areas so acquired by
25 demolition of existing structures and buildings and to
26 make necessary improvements to the property essential to
27 its reuse in conformity with a development plan;
28 (3) To convey property for use in accordance with a
29 development plan.
30 (b) Before acquiring property under this Section the
31 Authority shall hold a public hearing after notice published
32 in a newspaper of general circulation in the county in which
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1 the property is located and shall find:
2 (1) The property is in a redevelopment area;
3 (2) Such acquisition or possession is necessary or
4 reasonably required to retain existing enterprises or
5 attract new enterprises and to promote sound economic
6 growth and to carry out the purposes of Article 15 of
7 this Act;
8 (3) The assembly of property is not unduly
9 competitive with similar assemblies by private enterprise
10 in the area or surrounding areas; and
11 (4) The participating entity, without the
12 involvement of the Authority, would be unlikely,
13 unwilling or unable to undertake such redevelopment of
14 the property as was necessary for economic development.
15 (c) No property may be acquired by the Authority unless
16 the acquisition is consented to by resolution of the
17 corporate authorities of the municipality with jurisdiction
18 over the property under Section 11-12-6 of the Municipal
19 Code.
20 (d) The Authority may acquire any interest in property
21 in a redevelopment area by purchase, lease, or gift, but
22 shall not have the power of condemnation.
23 (e) No property shall be acquired under this Section
24 unless the Authority has adopted a development plan under the
25 provisions of Section 15-25.
26 Section 15-25. Development Plans.
27 (a) No development plan shall be approved by the
28 Authority unless after a public hearing held upon notice
29 published in a newspaper of general circulation in the county
30 where the property is located, the Authority finds:
31 (1) The plan provides for projects which will
32 reduce unemployment;
33 (2) The redevelopment area on the whole has not
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1 been subject to growth and development through investment
2 by private enterprise and would not reasonably be
3 anticipated to be developed without the adoption of the
4 development plan;
5 (3) The corporate authorities of the municipality
6 with jurisdiction over the property under Section 11-12-6
7 of the Municipal Code have by resolution found that the
8 development plan conforms to the comprehensive plan of
9 the municipality; and
10 (4) A participating entity has agreed to enter into
11 such contracts and other agreements as are necessary to
12 acquire, redevelop and improve the property in accordance
13 with the development plan;
14 (5) The acquisition of the property, its possession
15 and ultimate use according to the development plan can be
16 financed by participating entities and the Authority and
17 the development plan will be completed and all
18 obligations of the Authority incurred in connection with
19 the redevelopment plan will be retired within 20 years
20 from the Authority's approval of the development plan;
21 (6) The development plan meets such other
22 requirements as the Authority may establish by rule.
23 (b) The Authority may dispose of any property which is
24 the subject of a development plan in such manner, whether by
25 sale, lease or otherwise, and for such price, rental or other
26 consideration, including an amount not less than 2/3 of its
27 acquisition cost, payable over such term, and bearing
28 interest as to deferred payments, and secured in such manner,
29 by mortgage or otherwise, all as the Authority shall provide
30 in the development plan.
31 (c) Pending disposition of such land, any existing
32 property acquired by the Authority in the course of carrying
33 out the provisions of this Act may be adequately and properly
34 preserved, and may be maintained, leased or administered by
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1 the Authority by a contract made by the Authority with any
2 participating entity, enterprise or individual with
3 experience in the area of property development, management or
4 administration.
5 (d) Whenever the Authority shall have approved a
6 development plan, the Authority may amend the development
7 plan from time to time in conformity with this Section.
8 Section 15-30. Local Planning; Relocation Costs. The
9 Authority may arrange or contract with a municipality or
10 municipalities for the planning, replanning, opening, grading
11 or closing of streets, roads, alleys or other places or for
12 the furnishing of facilities or for the acquisition by the
13 municipality or municipalities of property or property rights
14 or for the furnishing of property or services in connection
15 with a development project or projects.
16 The Authority is hereby authorized to pay the reasonable
17 relocation costs, up to a total of $25,000 per relocatee, of
18 persons and businesses displaced as a result of carrying out
19 a development plan as authorized by Article 15 of this Act.
20 ARTICLE 20
21 LOCAL GOVERNMENT
22 Section 20-5. Findings and Declaration of Policy. It is
23 hereby found and declared that there exists an urgent need to
24 upgrade and expand the capital facilities, infrastructure and
25 public purpose projects of units of local government and to
26 promote other public purposes to be carried out by units of
27 local government; that federal funding reductions combined
28 with shifting economic conditions have impeded efforts by
29 units of local governments to provide the necessary
30 improvements to their capital facilities, infrastructure
31 systems and public purpose projects and to accomplish other
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1 public purposes in recent years; that adequate and well
2 maintained capital facilities, infrastructure systems and
3 public purpose projects throughout this State and the
4 performance of other public purposes by units of local
5 government throughout this State can offer significant
6 economic benefits and an improved quality of life for all
7 citizens of this State; that the exercise by the Authority of
8 the powers granted in Article 20 will promote economic
9 development by enhancing the capital stock of units of local
10 governments and will facilitate the accomplishment of other
11 public purposes by units of local government; that
12 authorizing the Authority to borrow money in the public and
13 private capital markets in order to provide money to purchase
14 or otherwise acquire obligations of units of local government
15 will assist such units of local government in borrowing money
16 to finance and refinance the public purpose projects, capital
17 facilities and infrastructure of the units and to finance
18 other public purposes of such units of local government, in
19 providing access to adequate capital markets and facilities
20 for borrowing money by such units of local government, in
21 encouraging continued investor interest in the obligations of
22 such units of local government, in providing for the orderly
23 marketing of the obligations of such units of local
24 government, and in achieving lower overall borrowing cost and
25 more favorable terms for such borrowing; and that the
26 provisions of Article 20 of this Act are hereby declared to
27 be in the public interest and for the public benefit.
28 Section 20-10. Definitions. The following words or
29 terms, whenever used or referred to in Article 20 of this
30 Act, shall have the following meanings ascribed to them,
31 except where the context clearly requires otherwise:
32 (a) "Department" means the Illinois Department of
33 Commerce and Community Affairs.
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1 (b) "Unit of local government" means any unit of local
2 government, as defined in Article VII, Section 1 of the 1970
3 State Constitution and any local public entity as that term
4 is defined by the Local Governmental and Governmental
5 Employees Tort Immunity Act and also includes the State and
6 any instrumentality, office, officer, department, division,
7 bureau, commission, college or university thereof.
8 (c) "Energy conservation project" means any
9 improvement, repair, alteration or betterment of any
10 building or facility or any equipment, fixture or furnishing
11 including its energy using mechanical devices to be added
12 to or used in any building or facility that the Director of
13 the Department has certified to the Authority will be a cost
14 effective energy related project that will lower energy or
15 utility costs in connection with the operation or maintenance
16 of such building or facility, and will achieve energy cost
17 savings sufficient to cover bond debt service and other
18 project costs within 10 years from the date of project
19 installation.
20 Section 20-15. Creation of Reserve Funds. The Authority
21 may establish and maintain one or more reserve funds in which
22 there may be one or more accounts in which there may be
23 deposited:
24 (a) Any proceeds of bonds issued by the Authority
25 required to be deposited therein by the terms of any contract
26 between the Authority and its bondholders or any resolution
27 of the Authority;
28 (b) Any other moneys or funds of the Authority which it
29 may determine to deposit therein from any other source; and
30 (c) Any other moneys or funds made available to the
31 Authority, including without limitation any proceeds of any
32 local government security or any taxes or revenues, rates,
33 charges, assessments, grants, or other funds pledged or
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1 assigned to pay, repay or secure any local government
2 security.
3 Subject to the terms of any pledge to the owners of any
4 bond, moneys in any reserve fund may be held and applied to
5 the payment of the interest, premium, if any, or principal of
6 bonds or local government securities or for any other purpose
7 authorized by the Authority.
8 Section 20-20. Powers and Duties; Illinois Local
9 Government Financing Assistance Program. The Authority has
10 the power:
11 (a) To purchase from time to time pursuant to negotiated
12 sale or to otherwise acquire from time to time any local
13 government securities issued by one or more units of local
14 government upon such terms and conditions as the Authority
15 may prescribe;
16 (b) to issue bonds in one or more series pursuant to one
17 or more resolutions of the Authority for any purpose
18 authorized under Article 20 of this Act, including without
19 limitation purchasing or acquiring local government
20 securities, providing for the payment of any interest deemed
21 necessary on such bonds, paying for the cost of issuance of
22 such bonds, providing for the payment of the cost of any
23 guarantees, letters of credit, insurance contracts or other
24 similar credit support or liquidity instruments, or providing
25 for the funding of any reserves deemed necessary in
26 connection with such bonds and refunding or advance refunding
27 of any such bonds and the interest and any premium thereon,
28 pursuant to this Act;
29 (c) To provide for the funding of any reserves or other
30 funds or accounts deemed necessary by the Authority in
31 connection with any bonds issued by the Authority or local
32 government securities purchased or otherwise acquired by the
33 Authority.
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1 (d) To pledge any local government security, including
2 any payments thereon, and any other funds of the Authority or
3 funds made available to the Authority which may be applied to
4 such purpose, as security for any bonds or any guarantees,
5 letters of credit, insurance contracts or similar credit
6 support or liquidity instruments securing the bonds;
7 (e) To enter into agreements or contracts with third
8 parties, whether public or private, including without
9 limitation the United States of America, the State, or any
10 department or agency thereof to obtain any appropriations,
11 grants, loans or guarantees which are deemed necessary or
12 desirable by the Authority. Any such guarantee, agreement or
13 contract may contain terms and provisions necessary or
14 desirable in connection with the program, subject to the
15 requirements established by Article 20 of this Act;
16 (f) To charge reasonable fees to defray the cost of
17 obtaining letters of credit, insurance contracts or other
18 similar documents, and to charge such other reasonable fees
19 to defray the cost of trustees, depositories, paying agents,
20 bond registrars, escrow agents and other administrative
21 expenses. Any such fees shall be payable by units of local
22 government whose local government securities are purchased or
23 otherwise acquired by the Authority pursuant to Article 20 of
24 this Act, in such amounts and at such times as the Authority
25 shall determine, and the amount of the fees need not be
26 uniform among the various units of local government whose
27 local government securities are purchased or otherwise
28 acquired by the Authority pursuant to Article 20 of this Act;
29 (g) To obtain and maintain guarantees, letters of
30 credit, insurance contracts or similar credit support or
31 liquidity instruments which are deemed necessary or desirable
32 in connection with any bonds or other obligations of the
33 Authority or any local government securities;
34 (h) To establish application fees and other service fees
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1 and prescribe application, notification, contract, agreement,
2 security and insurance forms and rules and regulations it
3 deems necessary or appropriate;
4 (i) To provide technical assistance, at the request of
5 any unit of local government, with respect to the financing
6 or refinancing for any public purpose. In fulfillment of
7 this purpose, the Authority may request assistance from the
8 Department as necessary; any unit of local government that is
9 experiencing either a financial emergency as defined in the
10 Local Government Financial Planning and Supervision Act or a
11 condition of fiscal crisis evidenced by an impaired ability
12 to obtain financing for its public purpose projects from
13 traditional financial channels or impaired ability to fully
14 fund its obligations to fire, police and municipal employee
15 pension funds, or to bond payments or reserves, may request
16 technical assistance from the Authority in the form of a
17 diagnostic evaluation of its financial condition;
18 (j) To purchase any obligations of the Authority issued
19 pursuant to Article 20 of this Act;
20 (k) To sell, transfer or otherwise dispose of local
21 government securities purchased or otherwise acquired by the
22 Authority pursuant to Article 20 of this Act, including
23 without limitation, the sale, transfer or other disposition
24 of undivided fractionalized interests in the right to receive
25 payments of principal and premium, if any, or the right to
26 receive payments of interest or the right to receive payments
27 of principal of and premium, if any, and interest on pools of
28 such local government securities;
29 (l) To acquire, purchase, lease, sell, transfer and
30 otherwise dispose of real and personal property, or any
31 interest therein, and to issue its bonds and enter into
32 leases, contracts and other agreements with units of local
33 government in connection with such acquisitions, purchases,
34 leases, sales and other dispositions of such real and
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1 personal property;
2 (m) to make loans to banks, savings and loans and other
3 financial institutions for the purpose of purchasing or
4 otherwise acquiring local government securities, and to issue
5 its bonds, and enter into agreements and contracts in
6 connection with such loans;
7 (n) To enter into agreements or contracts with any
8 person necessary or appropriate to place the payment
9 obligations of the Authority under any of its bonds in whole
10 or in part on any interest rate basis, cash flow basis, or
11 other basis desired by the Authority, including without
12 limitation agreements or contracts commonly known as
13 "interest rate swap agreements," "forward payment conversion
14 agreements," and "futures," or agreements or contracts to
15 exchange cash flows or a series of payments, or agreements or
16 contracts, including without limitation agreements or
17 contracts commonly known as "options," "puts" or "calls," to
18 hedge payment, rate spread, or similar exposure; provided,
19 that any such agreement or contract shall not constitute an
20 obligation for borrowed money, and shall not be taken into
21 account under Section 45-5 of this Act or any other debt
22 limit of the Authority or the State of Illinois;
23 (o) To make and enter into all other agreements and
24 contracts and execute all instruments necessary or incidental
25 to performance of its duties and the execution of its powers
26 under Article 20 of this Act; and
27 (p) To contract for and finance the costs of energy
28 audits, project-specific engineering and design
29 specifications, and any other related analyses preliminary to
30 an energy conservation project; and, to contract for and
31 finance the cost of project monitoring and data collection to
32 verify post-installation energy consumption and
33 energy-related operating costs. Any such contract shall be
34 executed only after it has been jointly negotiated by the
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1 Authority and the Department.
2 (q) To exercise such other powers as are necessary or
3 incidental to the foregoing.
4 Section 20-25. Unit of Local Government Participation.
5 Any unit of local government is authorized to voluntarily
6 participate in this program. Any unit of local government
7 which is authorized to issue, sell and deliver its local
8 government securities under any provision of the Constitution
9 or laws of the State may issue, sell and deliver such local
10 government securities to the Authority under Article 20 of
11 this Act; provided that and notwithstanding any other
12 provision of law to the contrary, any such unit of local
13 government may issue and sell any such local government
14 security at any interest rate or rates, which rate or rates
15 may be established by an index or formula which may be
16 implemented by persons appointed or retained therefor,
17 payable at such time or times, and at such price or prices to
18 which the unit of local government and the Authority may
19 agree. Any unit of local government may pay any amount
20 charged by the Authority pursuant to Article 20 of this Act.
21 Any unit of local government participating in this program
22 may pay out of the proceeds of its local government
23 securities or out of any other moneys or funds available to
24 it for such purposes any costs, fees, interest deemed
25 necessary, premium or reserves incurred or required for
26 financing or refinancing this program, including without
27 limitation any fees charged by the Authority pursuant to
28 Article 20 of this Act and its share, as determined by the
29 Authority, of any costs, fees, interest deemed necessary,
30 premium or reserves incurred or required pursuant to Section
31 20-20 of this Act. All local government securities purchased
32 or otherwise acquired by the Authority pursuant to this Act
33 shall upon delivery to the Authority be accompanied by an
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1 approving opinion of bond counsel as to the validity of such
2 securities. The Authority shall have discretion to purchase
3 or otherwise acquire those local government securities as it
4 shall deem to be in the best interest of its financing
5 program for all units of local government taken as a whole.
6 Section 20-30. Criteria for Participation in the
7 Program. If the Authority requires an application for
8 participation in the Program, upon submission of any such
9 application, the Authority or any entity on behalf of the
10 Authority shall review such application for its completeness
11 and may at its discretion, accept or reject such application
12 or request such additional information as it deems necessary
13 or advisable to aid its review.
14 In the course of its review, the Authority may consider
15 but shall not be limited to the following factors:
16 (a) Whether the public purpose for which the local
17 government security is to be issued will have a significant
18 impact on the economy, environment, health or safety of the
19 unit of local government;
20 (b) The extent to which the public purpose for which the
21 local government security is to be issued will provide
22 reinforcement for other community and economic development
23 related investments by such units of local government;
24 (c) The credit worthiness of the unit of local
25 government and the local government security, including,
26 without limitation, the ability of the unit of local
27 government to comply with the credit requirements of the
28 provider of any guarantees, letters of credit, insurance
29 contracts or other similar credit support or liquidity
30 instruments; and
31 (d) Such other factors as deemed necessary by the
32 Authority which are consistent with the intent of this Act.
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1 Section 20-35. The Authority shall assist the Department
2 to establish and implement a program to assist units of local
3 government to identify and arrange financing for energy
4 conservation projects in buildings and facilities owned or
5 leased by units of local government.
6 Such bonds shall not constitute an indebtedness or
7 obligation of the State of Illinois and it shall be plainly
8 stated on the face of each bond that it does not constitute
9 such an indebtedness or obligation but is payable solely from
10 the revenues, income or other assets of the Authority pledged
11 therefor.
12 Section 20-40. Investment of Moneys. Any moneys at any
13 time held by the Authority pursuant to Article 20 of this Act
14 shall be held outside the State Treasury in the custody of
15 either the Treasurer of the Authority or a trustee or
16 depository appointed by the Authority. Such moneys may be
17 invested in (a) investments authorized in "An Act relating to
18 certain investments of public funds by public agencies",
19 approved July 23, l943, as amended, (b) obligations issued by
20 any State, unit of local government or school district, which
21 obligations are rated at the time of purchase by a national
22 rating service within the 2 highest rating classifications
23 without regard to any rating refinement or gradation by
24 numerical or other modifier, (c) equity securities of an
25 investment company registered under the Investment Company
26 Act of l940 whose sole assets, other than cash and other
27 temporary investments, are obligations which are eligible
28 investments for the Authority, or (d) investment contracts
29 under which securities are to be purchased and sold at a
30 predetermined price on a future date, or pursuant to which
31 moneys are deposited with a bank or other financial
32 institution and the deposits are to bear interest at an
33 agreed upon rate, provided that such investments contracts
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1 are with a bank or other financial institution whose
2 obligations are rated at the time of purchase by a national
3 rating service within the 2 highest rating classifications
4 without regard to any rating refinement or gradation by
5 numerical or other modifier. The interest, dividends or
6 other earnings from such investments may be used to pay
7 administrative costs of the Authority incurred in
8 administering the program or trustee or depository fees
9 incurred in connection with such program.
10 Section 20-45. Pledge of Revenues by the Authority. Any
11 pledge of revenues or other moneys made by the Authority
12 shall be binding from the time the pledge is made. Revenues
13 and other moneys so pledged shall be held outside of the
14 State Treasury and in the custody of either the Treasurer of
15 the Authority or a trustee or a depository appointed by the
16 Authority. Revenues or other moneys so pledged and
17 thereafter received by the Authority or such trustee or
18 depository shall immediately be subject to the lien of the
19 pledge without any physical delivery thereof or further act,
20 and the lien of any pledge shall be binding against all
21 parties having claims of any kind of tort, contract or
22 otherwise against the Authority, irrespective of whether the
23 parties have notice thereof. Neither the resolution nor any
24 other instrument by which a pledge is created need be filed
25 or recorded except in the records of the Authority.
26 The State does pledge to and agree with the holders of
27 bonds, and the beneficial owners of the local government
28 securities, that the State will not limit or restrict the
29 rights hereby vested in the Authority to purchase, acquire,
30 hold, sell or dispose of local government securities or other
31 investments or to establish and collect such fees or other
32 charges as may be convenient or necessary to produce
33 sufficient revenues to meet the expenses of operation of the
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1 Authority, and to fulfill the terms of any agreement made
2 with the holders of the bonds or the beneficial owners of the
3 local government securities or in any way impair the rights
4 or remedies of the holders of those bonds or the beneficial
5 owners of the local government securities until such bonds or
6 local government securities are fully paid and discharged or
7 provision for their payment has been made.
8 Section 20-50. Pledge of Funds by Units of Local
9 Government.
10 (a) Pledge of Funds. Any unit of local government which
11 receives funds from the Department of Revenue, including
12 without limitation funds received pursuant to Sections
13 8-11-1, 8-11-1.4, 8-11-5 or 8-11-6 of the "Illinois Municipal
14 Code", the Home Rule County Retailers' Occupation Tax Act,
15 the Home Rule County Service Occupation Tax Act, Sections
16 25.05-2, 25.05-3 or 25.05-10 of "An Act to revise the law in
17 relation to counties", Section 5.01 of the "Local Mass
18 Transit District Act", Section 4.03 of the "Regional
19 Transportation Authority Act", Sections 2 or 12 of "An Act in
20 relation to State revenue sharing with local governmental
21 entities," or from the Department of Transportation pursuant
22 to Section 8 of the Motor Fuel Tax Law, or from the State
23 Superintendent of Education (directly or indirectly through
24 regional superintendents of schools) pursuant to Article 18
25 of The School Code, or any unit of government which receives
26 other funds which are at any time in the custody of the State
27 Treasurer, the State Comptroller, the Department of Revenue,
28 the Department of Transportation or the State Superintendent
29 of Education may by appropriate proceedings, pledge to the
30 Authority or any entity acting on behalf of the Authority
31 (including, without limitation, any trustee), any or all of
32 such receipts to the extent that such receipts are necessary
33 to provide revenues to pay the principal of, premium, if any,
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1 and interest on, and other fees related to, or to secure, any
2 of the local government securities of such unit of local
3 government which have been sold or delivered to the Authority
4 or its designee or to pay lease rental payments to be made by
5 such unit of local government to the extent that such lease
6 rental payments secure the payment of the principal of,
7 premium, if any, and interest on, and other fees related to,
8 any local government securities which have been sold or
9 delivered to the Authority or its designee. Any pledge of
10 such receipts (or any portion thereof) shall constitute a
11 first and prior lien thereon and shall be binding from the
12 time the pledge is made.
13 (b) Direct Payment of Pledged Receipts. Any such unit
14 of local government may, by such proceedings, direct that all
15 or any of such pledged receipts payable to such unit of local
16 government be paid directly to the Authority or such other
17 entity (including without limitation any trustee) for the
18 purpose of paying the principal of, premium, if any, and
19 interest on, and fees relating to, such local government
20 securities or for the purpose of paying such lease rental
21 payments to the extent necessary to pay the principal of,
22 premium, if any, and interest on, and other fees related to,
23 such local government securities secured by such lease rental
24 payments. Upon receipt of a certified copy of such
25 proceedings by the State Treasurer, the State Comptroller,
26 the Department of Revenue, the Department of Transportation
27 or the State Superintendent of Education, as the case may be,
28 such Department or State Superintendent shall direct the
29 State Comptroller and State Treasurer to pay to, or on behalf
30 of, the Authority or such other entity (including, without
31 limitation, any trustee) all or such portion of the pledged
32 receipts from the Department of Revenue, or the Department of
33 Transportation or the State Superintendent of Education
34 (directly or indirectly through regional superintendents of
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1 schools), as the case may be, sufficient to pay the principal
2 of and premium, if any, and interest on, and other fees
3 related to, the local governmental securities for which the
4 pledge was made or to pay such lease rental payments securing
5 such local government securities for which the pledge was
6 made. The proceedings shall constitute authorization for
7 such a directive to the State Comptroller to cause orders to
8 be drawn and to the State Treasurer to pay in accordance with
9 such directive. To the extent that the Authority or its
10 designee notifies the Department of Revenue, the Department
11 of Transportation or the State Superintendent of Education,
12 as the case may be, that the unit of local government has
13 previously paid to the Authority or its designee the amount
14 of any principal, premium, interest and fees payable from
15 such pledged receipts, the State Comptroller shall cause
16 orders to be drawn and the State Treasurer shall pay such
17 pledged receipts to the unit of local government as if they
18 were not pledged receipts. To the extent that such receipts
19 are pledged and paid to the Authority or such other entity,
20 any taxes which have been levied or fees or charges assessed
21 pursuant to law on account of the issuance of such local
22 government securities shall be paid to the unit of local
23 government and may be used for the purposes for which the
24 pledged receipts would have been used.
25 (c) Payment of Pledged Receipts upon Default. Any such
26 unit of local government may, by such proceedings, direct
27 that such pledged receipts payable to such unit of local
28 government be paid to the authority or such other entity
29 (including without limitation any trustee) upon a default in
30 the payment of any principal of, premium, if any, or interest
31 on, or fees relating to, any of the local government
32 securities of such unit of local government which have been
33 sold or delivered to the Authority or its designee or any of
34 the local government securities which have been sold or
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1 delivered to the Authority or its designee and which are
2 secured by such lease rental payments. If such local
3 governmental security is in default as to the payment of
4 principal thereof, premium, if any, or interest thereon, or
5 fees relating thereto, to the extent that the State
6 Treasurer, the State Comptroller, the Department of Revenue,
7 the Department of Transportation or the State Superintendent
8 of Education (directly or indirectly through regional
9 superintendents of schools) shall be the custodian at any
10 time of any other available funds or moneys pledged to the
11 payment of such local government securities or such lease
12 rental payments securing such local government securities
13 pursuant to this Section and due or payable to such a unit of
14 local government at any time subsequent to written notice to
15 the State Comptroller and State Treasurer from the Authority
16 or any entity acting on behalf of the Authority (including
17 without limitation any trustee) to the effect that such unit
18 of local government has not paid or is in default as to
19 payment of the principal of, premium, if any, or interest on,
20 or fees relating to, any local government security sold or
21 delivered to the Authority or any such entity (including
22 without limitation any trustee) or has not paid or is in
23 default as to the payment of such lease rental payments
24 securing the payment of the principal of, premiums, if any,
25 or interest on, or other fees relating to, any local
26 government security sold or delivered to the Authority or
27 such other entity (including without limitation any trustee):
28 (i) The State Comptroller and the State Treasurer
29 shall withhold the payment of such funds or moneys from
30 such unit of local government until the amount of such
31 principal, premium, if any, interest or fees then due and
32 unpaid has been paid to the Authority or any such entity
33 (including without limitation any trustee), or the State
34 Comptroller and the State Treasurer have been advised
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1 that arrangements, satisfactory to the Authority or such
2 entity, have been made for the payment of such principal,
3 premium, if any, interest and fees; and
4 (ii) Within ten days after a demand for payment by
5 the Authority or such entity given to such unit of local
6 government, the State Treasurer and the State
7 Comptroller, the State Treasurer shall pay such funds or
8 moneys as are legally available therefor to the Authority
9 or such entity for the payment of principal of, premium,
10 if any, or interest on, or fees relating to, such local
11 government securities. The Authority or any such entity
12 may carry out this Section and exercise all the rights,
13 remedies and provisions provided or referred to in this
14 Section.
15 (d) Remedies. Upon the sale or delivery of any local
16 government securities of the Authority or its designee, the
17 local government which issued such local government
18 securities shall be deemed to have agreed that upon its
19 failure to pay interest or premium, if any, on, or principal
20 of, or fees relating to, the local government securities sold
21 or delivered to the Authority or any entity acting on behalf
22 of the Authority (including without limitation any trustee)
23 when payable, all statutory defenses to nonpayment are
24 thereby waived. Upon a default in payment of principal of or
25 interest on any local government securities issued by a unit
26 of local government and sold or delivered to the Authority or
27 its designee, and upon demand on the unit of local government
28 for payment, if the local government securities are payable
29 from property taxes and funds are not legally available in
30 the treasury of the unit of local government to make payment,
31 an action in mandamus for the levy of a tax by the unit of
32 local government to pay the principal of or interest on the
33 local government securities shall lie, and the Authority or
34 such entity shall be constituted a holder or owner of the
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1 local government securities as being in default. Upon the
2 occurrence of any failure or default with respect to any
3 local government securities issued by a unit of local
4 government, the Authority or such entity may thereupon avail
5 itself of all remedies, rights and provisions of law
6 applicable in the circumstances, and the failure to exercise
7 or exert any rights or remedies within a time or period
8 provided by law may not be raised as a defense by the unit of
9 local government.
10 Section 20-55. Eligible Investments. Bonds, issued by
11 the Authority pursuant to the provisions of Article 20 of
12 this Act, shall be permissible investments within the
13 provisions of Section 45-35 of this Act.
14 ARTICLE 25
15 OTHER POWERS
16 Section 25-5. Motion Picture Production Program;
17 Findings and Declaration of Policy. It is hereby found and
18 declared that the production of motion pictures has an
19 enormous potential for contributing to the economic
20 well-being of the State and its communities; that a critical
21 mass of movie productions is essential to the continuing
22 viability of this fledgling industry in Illinois; that to
23 achieve this critical mass, a financial inducement to attract
24 movie productions to the State is required; and that the
25 provisions of this Act are hereby declared to be in the
26 public interest and for the public benefit.
27 Section 25-10. The Authority may develop a program for
28 financing the production of motion pictures in the State of
29 Illinois. All projects financed by the Authority shall
30 require the approval of both the Illinois Arts Council and
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1 the Authority.
2 Section 25-15. Credit Enhancement Development Fund.
3 (a) There is hereby created the Credit Enhancement
4 Development Fund in the Authority. The Treasurer shall have
5 custody of the fund, which shall be held outside the State
6 Treasury. Custody may be transferred to and held by any
7 fiduciary with whom the Authority executes a trust agreement.
8 All or any portion of such amounts may be used (i) to pay
9 principal, interest and premium, if any, on any bonds issued
10 by the Authority or to fund any reserves or accounts created
11 for such purpose, (ii) to pay the cost of any letter of
12 credit, insurance or third party guarantee provided with
13 respect to any bond issued by the Authority or loan made by
14 the Authority, (iii) to guarantee or otherwise enhance the
15 credit of any bond issued by the Authority or loan made by
16 the Authority, or (iv) to make loans to any person,
17 corporation or unit of local government for any project
18 authorized to be financed by the Authority under this Act.
19 (b) The Authority shall report to the Governor and the
20 General Assembly no later than June 1, 2003, on the extent to
21 which its use of monies in this Fund has enhanced the credit
22 worthiness of its bonds issued or loans made with respect to
23 any person, thereby reducing the cost of financing projects
24 authorized by this Act.
25 ARTICLE 27
26 STUDENT ASSISTANCE
27 Section 27-5. Student Assistance Functions of Authority.
28 (a) The Authority, in accordance with this Act, shall
29 prepare and supervise the issuance of public information
30 concerning its student assistance provisions; prescribe the
31 form and regulate the submission of applications for
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1 assistance; provide for and conduct, or cause to be
2 conducted, all eligibility determinations of applicants;
3 award the appropriate student financial assistance; and, upon
4 request by a member of the General Assembly, nominate or
5 evaluate and recommend for nomination applicants for General
6 Assembly scholarships in accordance with criteria specified
7 by the member under Section 30-9 of the School Code.
8 (b) The Authority is authorized to participate in any
9 programs for monetary assistance to students and to receive,
10 hold, and disburse all such funds made available by any
11 agency or organization for the purpose or purposes for which
12 they are made available. The Authority is authorized to
13 administer a program of grant assistance as authorized by the
14 Baccalaureate Savings Act. The Authority is authorized to
15 participate in any programs established to improve student
16 financial aid services or the proficiency of persons engaged
17 in student financial aid services and to receive, hold, and
18 disburse all funds made available by any agency or
19 organization for the purpose or purposes for which they are
20 made available subject to the appropriations of the General
21 Assembly.
22 (c) The Authority is authorized to deny a scholarship or
23 a grant to any person who has defaulted on a guaranteed
24 student loan and who is not maintaining a satisfactory
25 repayment record. If a person has a defaulted guaranteed
26 student loan but is otherwise eligible for assistance
27 pursuant to Section 27-55, the Authority shall award one term
28 of assistance during which a satisfactory repayment record
29 must be established. If such a repayment record is not
30 established, additional assistance shall be denied until a
31 satisfactory repayment record is established.
32 (d) The Authority is authorized to participate with
33 federal, state, county, local, and university law enforcement
34 agencies in cooperative efforts to detect and prosecute
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1 incidents of fraud in student assistance programs.
2 Section 27-25. State scholar program.
3 (a) An applicant is eligible to be designated a State
4 Scholar when the Authority finds the candidate:
5 (1) is a resident of this State and a citizen or
6 permanent resident of the United States;
7 (2) has successfully completed the program of
8 instruction at an approved high school, or is a student
9 in good standing at such a school and is engaged in a
10 program which in due course will be completed by the end
11 of the academic year, and in either event that the
12 candidate's academic standing is above the class median;
13 and that the candidate has not had any university,
14 college, normal school, private junior college or public
15 community college, or other advanced training subsequent
16 to graduation from high school; and
17 (3) has superior capacity to profit by a higher
18 education. In determining an applicant's superior
19 capacity to profit by a higher education, the Authority
20 shall consider the candidate's scholastic record in high
21 school and the results of the examination conducted under
22 the provisions of this Act. The Authority shall
23 establish by rule the minimum conditions of eligibility
24 in terms of the foregoing factors, and the relative
25 weight to be accorded to those factors.
26 (b) The Authority shall base its State Scholar
27 designations upon the eligibility formula prescribed in its
28 rules, except that notwithstanding those rules or any other
29 provision of this Section, a student nominated by his or her
30 school shall be designated a State Scholar if that student
31 achieves an Illinois Standard Test Score at or above the 95th
32 percentile among students taking the designated examinations
33 in Illinois that year, as determined by the Authority.
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1 (c) The Authority shall obtain the results of a
2 competitive examination from the applicants this Act. The
3 examination shall provide a measure of each candidate's
4 ability to perform college work and shall have demonstrated
5 utility in such a selection program. The Authority shall
6 select, and designate by rule, the specific examinations to
7 be used in determining the applicant's superior capacity to
8 profit from a higher education. Candidates may be asked by
9 the Authority to take those steps necessary to provide
10 results of the designated examination as part of their
11 applications. Any nominal cost of obtaining or providing the
12 examination results shall be paid by the candidate to the
13 agency designated by the Authority to provide the examination
14 service.
15 In the event that a candidate or candidates are unable to
16 participate in the examination for financial reasons, the
17 Authority may choose to pay the examination fee on the
18 candidate's or candidates' behalf. Any notary fee which may
19 also be required as part of the total application shall be
20 paid by the applicant.
21 (d) The Authority shall award to each State Scholar a
22 certificate or other suitable form of recognition. The
23 decision to attend a non-qualified institution of higher
24 learning shall not disqualify applicants who are otherwise
25 fully qualified.
26 Section 27-30. Merit Recognition Scholarship program.
27 (a) As used in this Section: "Eligible applicant" means
28 a student from any high school in this State, either
29 approved by or not recognized by the State Board of
30 Education, who is engaged in a program of study that in due
31 course will be complete by the end of the academic year, and
32 (i) whose cumulative high school grade point average is at or
33 above the 95th percentile of his or her high school class
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1 after completion of the 6th semester of a high school program
2 of instruction or (ii) whose score on a standardized
3 examination determined by the Authority, taken before or
4 during the 6th semester of high school, is at or above the
5 95th percentile of students in the State who take the
6 standardized college entrance examination. These high school
7 students are all eligible to receive a scholarship to be
8 awarded under this Section. "Qualified student" means a
9 person:
10 (1) who is a resident of this State and a citizen
11 or permanent resident of the United States;
12 (2) who, as an eligible applicant, is in good
13 academic standing at the high school in which he or she
14 is enrolled and has made a timely application for a Merit
15 Recognition Scholarship under this Section;
16 (3) who has successfully completed the program of
17 instruction at any high school located in this State; and
18 (4) who enrolls or is enrolled in a qualified
19 Illinois institution of higher learning or a Service
20 Academy as an undergraduate student or cadet and has not
21 received a baccalaureate degree. "Merit Recognition
22 Scholarship" means a $1,000 academic scholarship awarded
23 under this Section during an academic year to a qualified
24 student, without regard to financial need, as a
25 scholarship to any qualified Illinois institution of
26 higher learning or a Service Academy in which the student
27 is or will be enrolled as an undergraduate student or
28 cadet. "Service Academy" means the U.S. Air Force
29 Academy, the U.S. Coast Guard Academy, the U.S. Military
30 Academy, or the U.S. Naval Academy.
31 (b) In order to identify, encourage, promote, and reward
32 the distinguished academic achievement of students from every
33 high school located in this State, each qualified student
34 shall be awarded a Merit Recognition Scholarship by the
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1 Authority to any qualified Illinois institution of higher
2 learning or to any Service Academy.
3 (c) No Merit Recognition Scholarship provided for a
4 qualified student under this Section shall be considered in
5 evaluating the financial situation of that student or be
6 deemed a financial resource of or a form of financial aid or
7 assistance to that student, for purposes of determining the
8 eligibility of the student for any scholarship, grant, or
9 monetary assistance awarded by the Authority, the State, or
10 any agency thereof pursuant to the provisions of any other
11 Section of this Act or any other law of this State; nor shall
12 any Merit Recognition Scholarship provided for a qualified
13 student under this Section reduce the amount of any
14 scholarship, grant, or monetary assistance that that student
15 is eligible to be awarded by the Authority, the State, or any
16 agency thereof in accordance with the provisions of any other
17 Section of this Act or any other law of this State.
18 (d) The Authority is designated as administrator of the
19 Merit Recognition Scholarship program. Each high school
20 located in this State shall certify to the Authority the
21 names of its students who are eligible applicants, specifying
22 which of the students certified as eligible applicants have
23 completed the program of instruction at that high school and
24 the graduation date fixed for their high school class and
25 specifying for each of the other eligible applicants whose
26 names appear on the certification the semester of high school
27 last completed by them. The Authority shall promptly notify
28 those eligible applicants so certified who are reasonably
29 assured of receiving a Merit Recognition Scholarship in
30 accordance with the annual funding levels recommended in the
31 Governor's budget of their eligibility to apply for a
32 scholarship under this Section, other than any eligible
33 applicant named on any such certification who, as an eligible
34 applicant, has previously made application to the Authority
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1 for a Merit Recognition Scholarship under this Section. An
2 otherwise eligible applicant who fails to make a timely
3 application (as determined by the Authority) for a Merit
4 Recognition Scholarship under this Section shall no longer be
5 deemed an eligible applicant and shall not qualify for the
6 award.
7 (e) All applications for Merit Recognition Scholarships
8 to be awarded under this Section shall be made to the
9 Authority on forms that the Authority shall provide for
10 eligible applicants. The form of applications and the
11 information required to be set forth therein shall be
12 determined by the Authority, and the Authority shall require
13 eligible applicants to submit with their applications such
14 supporting documents as the Authority deems necessary.
15 (f) The names and addresses of Merit Recognition
16 Scholarship recipients are a matter of public record.
17 (e) Whenever an eligible applicant who has completed the
18 program of instruction at any high school located in this
19 State thereafter makes timely application to the Authority
20 for a Merit Recognition Scholarship under this Section, the
21 Authority shall promptly determine whether that eligible
22 applicant is a qualified student as defined in subsection (a)
23 of this Section. Each such eligible applicant so determined
24 by the Authority to be a qualified student shall be awarded a
25 Merit Recognition Scholarship in the amount of $1,000,
26 effective exclusively during the academic year following the
27 qualified student's high school graduation, subject to
28 appropriation by the General Assembly.
29 (f) Subject to a separate appropriation for purposes of
30 this Section, payment of any Merit Recognition Scholarship
31 awarded under this Section shall be determined exclusively by
32 the Authority. All scholarship funds distributed in
33 accordance with this subsection shall be paid to the
34 qualified Illinois institution of higher learning or Service
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1 Academy and used only for payment of the educational expenses
2 incurred by the student in connection with his or her
3 attendance as an undergraduate student or cadet at that
4 institution or Service Academy, including but not limited to
5 tuition and fees, room and board, books and supplies,
6 required service Academy uniforms, and travel and personal
7 expenses related to the student's attendance at that
8 institution or Service Academy. Any Merit Recognition
9 Scholarship awarded under this Section shall be applicable to
10 2 semesters or 3 quarters of enrollment. Should a qualified
11 student withdraw from enrollment prior to completion of the
12 first semester or quarter for which the Merit Recognition
13 Scholarship is applicable, the student shall refund to the
14 Authority the amount of the scholarship received.
15 (g) The Authority shall administer the Merit Recognition
16 Scholarship program established by this Section and shall
17 make all necessary and proper rules, not inconsistent with
18 this Section, for its effective implementation.
19 (h) When an appropriation to the Authority for purposes
20 of this Section is insufficient to provide scholarships to
21 all qualified students, the Authority shall allocate the
22 appropriation in accordance with this subsection.
23 (i) If funds are insufficient to provide all qualified
24 students with a scholarship as authorized by subsection (g)
25 of this Section, the Authority shall allocate the
26 scholarships to qualified students in order of decreasing
27 relative academic rank, as determined by the Authority using
28 a formula based upon the qualified student's grade point
29 average, score on the appropriate statewide standardized
30 examination, or a combination of grade point average and
31 standardized test score. All Merit Recognition Scholarships
32 awarded shall be in the amount of $1,000.
33 (j) The Authority, in determining the number of Merit
34 Recognition Scholarships to be offered pursuant to subsection
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1 (j) of this Section, shall take into consideration past
2 experience with the rate of merit scholarship funds unclaimed
3 by qualified students. To the extent necessary to avoid an
4 over-commitment of funds, the Authority may allocate
5 scholarship funds on the basis of the date the Authority
6 receives a completed application form.
7 Section 27-35. Monetary award program.
8 (a) The Authority shall, each year, receive and consider
9 applications for grant assistance under this Section.
10 Subject to a separate appropriation for such purposes, an
11 applicant is eligible for a grant under this Section when the
12 Authority finds that the applicant: (1) is a resident of
13 this State and a citizen or permanent resident of the United
14 States; and (2) in the absence of grant assistance, will be
15 deterred by financial considerations from completing an
16 educational program at the qualified institution of his or
17 her choice.
18 (b) The Authority shall award renewals only upon the
19 student's application and upon the Authority's finding that
20 the applicant: (1) has remained a student in good standing;
21 (2) remains a resident of this State; and (3) is in a
22 financial situation that continues to warrant assistance.
23 (c) All grants shall be applicable only to tuition and
24 necessary fee costs for 2 semesters or 3 quarters in an
25 academic year. Requests for summer term assistance will be
26 made separately and shall be considered on an individual
27 basis according to Authority policy. Each student who is
28 awarded a grant under this Section and is enrolled in summer
29 school classes shall be eligible for a summer school grant.
30 The summer school grant amount shall not exceed the lesser of
31 50 percent of the maximum annual grant amount authorized by
32 this Section or the actual cost of tuition and fees at the
33 institution at which the student is enrolled at least
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1 part-time. For the regular academic year, the Authority
2 shall determine the grant amount for each full-time and
3 part-time student, which shall be the smallest of the
4 following amounts:
5 (1) $4,740 for 2 semesters or 3 quarters of
6 full-time undergraduate enrollment or $2,370 for 2
7 semesters or 3 quarters of part-time undergraduate
8 enrollment, or such lesser amount as the Authority finds
9 to be available; or
10 (2) the amount which equals the 2 semesters or 3
11 quarters tuition and other necessary fees required
12 generally by the institution of all full-time
13 undergraduate students, or in the case of part-time
14 students an amount of tuition and fees for 2 semesters
15 or 3 quarters which shall not exceed one-half the amount
16 of tuition and necessary fees generally charged to
17 full-time undergraduate students by the institution; or
18 (3) such amount as the Authority finds to be
19 appropriate in view of the applicant's financial
20 resources. "Tuition and other necessary fees" as used in
21 this Section include the customary charge for instruction
22 and use of facilities in general, and the additional
23 fixed fees charged for specified purposes, which are
24 required generally of nongrant recipients for each
25 academic period for which the grant applicant actually
26 enrolls, but do not include fees payable only once or
27 breakage fees and other contingent deposits which are
28 refundable in whole or in part. The Authority may
29 prescribe, by rule not inconsistent with this Section,
30 detailed provisions concerning the computation of tuition
31 and other necessary fees.
32 (d) No applicant, including those presently receiving
33 scholarship assistance under this Act, is eligible for
34 monetary award program consideration under this Act after
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1 receiving a baccalaureate degree or the equivalent of 10
2 semesters or 15 quarters of award payments. The Authority
3 shall determine when award payments for part-time enroll
4 mentor interim or summer terms shall be counted as a partial
5 semester or quarter of payment.
6 (e) The Authority, in determining the number of grants
7 to be offered, shall take into consideration past experience
8 with the rate of grant funds unclaimed by recipients. The
9 Authority shall notify applicants that grant assistance is
10 contingent upon the availability of appropriated funds.
11 (f) The Authority may request appropriations for deposit
12 into the Monetary Award Program Reserve Fund. Monies
13 deposited into the Monetary Award Program Reserve Fund may be
14 expended exclusively for one purpose: to make Monetary Award
15 Program grants to eligible students. Amounts on deposit in
16 the Monetary Award Program Reserve Fund may not exceed 2% of
17 the current annual State appropriation for the Monetary Award
18 Program. The purpose of the Monetary Award Program Reserve
19 Fund is to enable the Authority each year to assure as many
20 students as possible of their eligibility for a Monetary
21 Award Program grant and to do so before commencement of the
22 academic year. Moneys deposited in this Reserve Fund are
23 intended to enhance the Authority's management of the
24 Monetary Award Program, minimizing the necessity, magnitude,
25 and frequency of adjusting award amounts and ensuring that
26 the annual Monetary Award Program appropriation can be fully
27 utilized.
28 (g) The Authority shall determine the eligibility of and
29 make grants to applicants enrolled at qualified for-profit
30 institutions in accordance with the criteria set forth in
31 this Section. The eligibility of applicants enrolled at such
32 for-profit institutions shall be limited as follows:
33 (1) Beginning with the academic year 1997, only to
34 eligible first-time freshmen and first-time transfer
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1 students who have attained an associate degree.
2 (2) Beginning with the academic year 1998, only to
3 eligible freshmen students, transfer students who have
4 attained an associate degree, and students who receive a
5 grant under paragraph (1) for the academic year 1997 and
6 whose grants are being renewed for the academic year
7 1998.
8 (3) Beginning with the academic year 1999, to all
9 eligible students.
10 Section 27-40. Illinois Incentive for Access grant
11 program.
12 (a) The Authority each year shall determine eligibility
13 for the Illinois Incentive for Access grant from applications
14 received for Monetary Award Program grant assistance under
15 Section 35 of this Act. An applicant shall be determined as
16 eligible for an Illinois Incentive for Access grant under
17 this Section when the Authority finds that the applicant:
18 (1) is a resident of this State and a citizen or
19 permanent resident of the United States;
20 (2) has no personal or family financial resources
21 available for expenditure on educational expenses, as
22 defined by current federal student financial aid
23 methodology;
24 (3) has not already received a baccalaureate
25 degree; and
26 (4) is enrolled at least one-half time as a
27 freshman undergraduate student at an approved Illinois
28 institution of higher learning participating in the
29 Monetary Award Program administered by the Authority.
30 (b) Subject to a separate appropriation made for
31 purposes of awarding grants under this Section, Illinois
32 Incentive for Access grants shall be paid in multiple
33 disbursements as determined by the Authority in an amount not
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1 to exceed $500 per applicant per year. No recipient may
2 receive a grant under this Section for more than 2 semesters
3 or 3 quarters of award payments.
4 (c) Eligibility for grants awarded under this Section
5 shall be determined solely on the basis of the financial
6 resources of the applicant and the applicant's family. Cost
7 of attendance at the institution in which the applicant is
8 enrolled shall not affect eligibility for an award, except
9 that State student financial assistance awarded under this
10 Act, including the Illinois Incentive for Access award, may
11 not exceed the institution's cost of attendance.
12 (d) The Authority shall notify applicants that grant
13 assistance is contingent upon availability of appropriated
14 funds.
15 Section 27-45. Higher education license plate grant
16 program.
17 (a) Each year, the Authority shall receive a separate
18 appropriation for the purpose of providing grant assistance
19 to students enrolled at Illinois private colleges and
20 universities. Subject to a separate appropriation for such
21 purposes, an applicant is eligible for a grant to a
22 degree-granting, not-for-profit private college or university
23 located in this State under this Section when the institution
24 finds that the applicant: (1) is a resident of this State
25 and a citizen or permanent resident of the United States; and
26 (2) in the absence of grant assistance, will be deterred by
27 financial considerations from completing an educational
28 program at the qualified institution of his or her choice.
29 (b) The private college or university shall award
30 renewals only upon the student's application and upon the
31 institution's finding that the applicant: (1) has remained a
32 student in good standing at a degree-granting, not-for-profit
33 private college or university located in this State; (2)
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1 remains a resident of this State; and (3) is in a financial
2 situation that continues to warrant assistance.
3 (c) All grants shall be applicable only to tuition and
4 necessary fee costs for 2 semesters or 3 quarters in an
5 academic year. Requests for summer term assistance must be
6 made separately and shall be considered on an individual
7 basis according to Authority policy. The institution shall
8 determine the grant amount for each full-time and part-time
9 student, which shall be the smallest of the following
10 amounts:
11 (1) $2,000 for 2 semesters or 3 quarters of
12 full-time undergraduate enrollment or $1,000 for 2
13 semesters or 3 quarters of part-time undergraduate
14 enrollment, or such lesser amount as the institution
15 finds to be available; or
16 (2) the amount that equals the tuition and other
17 necessary fees for 2 semesters or 3 quarters required
18 generally by the institution of all full-time
19 undergraduate students, or in the case of part-time
20 students an amount of tuition and fees for 2 semesters or
21 3 quarters that does not exceed one-half the amount of
22 tuition and necessary fees generally charged to full-time
23 undergraduate students by the institution; or
24 (3) such amount as the institution finds to be
25 appropriate in view of the applicant's financial
26 resources. "Tuition and other necessary fees" as used in
27 this Section includes the customary charge for
28 instruction and use of facilities in general, and the
29 additional fixed fees charged for specified purposes,
30 which are required generally of nongrant recipients for
31 each academic period for which the grant applicant
32 actually enrolls, but does not include fees payable only
33 once or breakage fees and other contingent deposits that
34 are refundable in whole or in part. The Authority may
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1 prescribe, by rule not inconsistent with this Section,
2 detailed provisions concerning the computation of tuition
3 and other necessary fees.
4 (d) No applicant, including those presently receiving
5 scholarship assistance under this Act, is eligible for grant
6 program consideration under this Section after receiving a
7 baccalaureate degree or the equivalent of 10 semesters or 15
8 quarters of award payments. The institution shall determine
9 when award payments for part-time enrollment or interim or
10 summer terms shall be counted as a partial semester or
11 quarter of payment.
12 (e) The Authority shall ensure that in each school year
13 the total amount of grants awarded under this Section for
14 study at each degree-granting, not-for-profit private college
15 or university in this State shall be at least equal to the
16 total amount deposited into the University Grant Fund from
17 the issuance or renewal of license plates bearing the name of
18 that degree-granting, not- for-profit private college or
19 university during the calendar year preceding the calendar
20 year in which the school year begins. The institution shall
21 notify applicants that grant assistance is contingent upon
22 the availability of appropriated funds.
23 Section 27-50. Monetary award program accountability.
24 The Authority is directed to assess the educational
25 persistence of monetary award program recipients. An
26 assessment under this Section shall include an analysis of
27 such factors as undergraduate educational goals, chosen field
28 of study, retention rates, and expected time to complete a
29 degree. The assessment also shall include an analysis of
30 the academic success of monetary award program recipients
31 through a review of measures that are typically associated
32 with academic success, such as grade point average,
33 satisfactory academic progress, and credit hours earned.
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1 Each analysis should take into consideration student class
2 level, dependency types, and the type of higher education
3 institution at which each monetary award program recipient is
4 enrolled. The Authority shall report its findings to the
5 General Assembly and the Board of Higher Education by
6 February 1, 1999 and at least every 2 years thereafter.
7 Section 27-55. Veteran grant. Any person who served in
8 the armed forces of the United States, not including members
9 of the Student Army Training Corps, who at the time of
10 entering service was an Illinois resident or was an Illinois
11 resident within 6 months of entering such service, and who
12 returned to Illinois within 6 months after leaving service
13 or, if married to a person in continued military service
14 stationed outside Illinois, within 6 months after his or her
15 spouse has left service or has been stationed within
16 Illinois, and who has been honorably discharged from such
17 service, and who possesses all necessary entrance
18 requirements shall, except as otherwise provided in this Act,
19 upon application and proper proof, be awarded an Illinois
20 Veteran Grant consisting of the equivalent of 4 calendar
21 years of full-time enrollment, including summer terms, to the
22 State-controlled college or university or community college
23 of his choice. Such veterans shall also be entitled, upon
24 proper proof and application, to enroll in any extension
25 course offered by a State-controlled college or university or
26 community college without the payment of tuition or fees.
27 Any veteran who so served, and who, at the time of entering
28 such service, was a student at a State-controlled college or
29 university or community college, and who was honorably
30 discharged from such service, shall, upon application and
31 proper proof be awarded a Veteran Grant entitling him to
32 complete his course of study at any State-controlled college
33 or university or community college of his choice, but shall
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1 not be entitled to a grant consisting of more than the
2 equivalent of 4 calendar years of full-time enrollment
3 including summer sessions. Any member of the armed forces of
4 the United States who either (i) has served in such armed
5 forces at least one year, or (ii) has served in the armed
6 forces of the United States for less than one year in a time
7 of hostilities in a foreign country, and who would be
8 qualified for a grant under this Section if he had been
9 discharged from such service shall be eligible to receive a
10 Veteran Grant under this Section. The holder of a Veteran
11 Grant to the State-controlled college or university or
12 community college of his choice as authorized under this
13 Section shall not be required to pay any matriculation or
14 application fees, tuition, activities fees, graduation fees,
15 or other fees except multipurpose building fees or similar
16 fees for supplies and materials. Any veteran who has been or
17 shall be awarded a Veteran Grant shall be reimbursed by the
18 appropriate college, university, or community college for any
19 fees which he has paid and for which exemption is granted
20 under this Section, if application for reimbursement is made
21 within 2 months following the school term for which the fees
22 were paid. A Veteran Grant shall be considered an
23 entitlement which the State-controlled college or university
24 or community college in which the holder is enrolled shall
25 honor without any condition other than the holder's
26 maintenance of minimum grade levels and a satisfactory
27 student loan repayment record pursuant to subsection (c) of
28 Section 27-5. A grant authorized under this Section shall
29 not be awarded to veterans who received a discharge from the
30 armed forces of the United States under dishonorable
31 conditions, or to any veteran whose service with the armed
32 forces was for less than one year unless he received an
33 honorable discharge from such service for medical reasons
34 directly connected with such service, except for those
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1 veterans discharged prior to August 11, 1967 whose service
2 may be for less than one year, and except for those veterans
3 (i) who serve in the armed forces of the United States for
4 less than one year in a time of hostilities in a foreign
5 country and (ii) who receive an honorable discharge. The
6 amounts that become due to any State-controlled college or
7 university or community college shall be payable by the
8 Comptroller to that institution on vouchers approved by the
9 Authority. The Authority, or its designated representative
10 at that institution, shall determine the eligibility of the
11 persons who make application for the benefits provided for in
12 this Section. The Department of Veterans' Affairs shall
13 assist the Authority in determining the eligibility of
14 applicants. On July 29, 1986, the Illinois Department of
15 Veterans' Affairs shall transfer and deliver to the Authority
16 all books, records, papers, documents, applications and
17 pending business in any way pertaining to the duties,
18 responsibilities and authority theretofore exercised or
19 performed by the Illinois Department of Veterans' Affairs
20 under and pursuant to Section 4.1 of the Department of
21 Veterans Affairs Act. The benefits provided for in this
22 Section shall be available as long as the federal government
23 provides educational benefits to veterans. No benefits shall
24 be paid under this Section, except for veterans who already
25 have begun their education under this Section, after 6 months
26 following the termination of educational benefits to veterans
27 by the federal government. If the federal government
28 terminates educational benefits to veterans and at a later
29 time resumes those benefits, the benefits of this Section
30 shall resume. As used in this Section, "time of hostilities
31 in a foreign country" means any action by the armed forces of
32 the United States that is recognized by the issuance of a
33 Presidential proclamation or a Presidential executive order
34 and in which the armed forces expeditionary medal or other
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1 campaign service medals are awarded according to Presidential
2 executive order.
3 Section 27-60. Illinois National Guard grant program.
4 (a) As used in this Section: "State controlled
5 university or community college" means those institutions
6 under the administration of the Chicago State University
7 Board of Trustees, the Eastern Illinois University Board of
8 Trustees, the Governors State University Board of Trustees,
9 the Illinois State University Board of Trustees, the
10 Northeastern Illinois University Board of Trustees, the
11 Northern Illinois University Board of Trustees, the Western
12 Illinois University Board of Trustees, Southern Illinois
13 University Board of Trustees, University of Illinois Board of
14 Trustees, or the Illinois Community College Board. "Tuition
15 and fees" shall not include expenses for any sectarian or
16 denominational instruction, the construction or maintenance
17 of sectarian or denominational facilities, or any other
18 sectarian or denominational purposes or activity. "Fees"
19 means matriculation, graduation, activity, term, or
20 incidental fees. Exemption shall not be granted from any
21 other fees, including book rental, service, laboratory,
22 supply, and union building fees, hospital and medical
23 insurance fees, and any fees established for the operation
24 and maintenance of buildings, the income of which is pledged
25 to the payment of interest and principal on bonds issued by
26 the governing board of any university or community college.
27 (b) Any enlisted person or any company grade officer,
28 including warrant officers, First and Second Lieutenants, and
29 Captains in the Army and Air National Guard, who has served
30 at least one year in the Illinois National Guard and who
31 possesses all necessary entrance requirements shall, upon
32 application and proper proof, be awarded a grant to the
33 State-controlled university or community college of his or
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1 her choice, consisting of exemption from tuition and fees for
2 not more than the equivalent of 4 years of full-time
3 enrollment in relation to his or her course of study at that
4 State controlled university or community college while he or
5 she is a member of the Illinois National Guard. If the
6 recipient of any grant awarded under this Section ceases to
7 be a member of the Illinois National Guard while enrolled in
8 a course of study under that grant, the grant shall be
9 terminated as of the date membership in the Illinois National
10 Guard ended, and the recipient shall be permitted to complete
11 the school term in which he or she is then enrolled only upon
12 payment of tuition and other fees allocable to the part of
13 the term then remaining. A grant awarded under this Section
14 shall be considered an entitlement which the State-controlled
15 university or community college in which the holder is
16 enrolled shall honor without any condition other than the
17 holder's maintenance of minimum grade levels and a
18 satisfactory student loan repayment record pursuant to
19 subsection (c) of Section 27-5 of this Act.
20 (c) Subject to a separate appropriation for such
21 purposes, the Authority may reimburse the State-controlled
22 university or community college for grants authorized by this
23 Section.
24 Section 27-65. Minority Teachers of Illinois scholarship
25 program.
26 (a) As used in this Section: "Eligible applicant" means
27 a minority student who has graduated from high school or has
28 received a General Educational Development Certification and
29 has maintained a cumulative grade point average at the
30 postsecondary level of no less than 2.5 on a 4.0 scale, and
31 who by reason thereof is entitled to apply for scholarships
32 to be awarded under this Section. "Minority student" means a
33 student who is either (i) Black (a person having origins in
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1 any of the black racial groups in Africa); (ii) Hispanic (a
2 person of Spanish or Portuguese culture with origins in
3 Mexico, South or Central America, or the Caribbean islands,
4 regardless of race); (iii) Asian American (a person with
5 origins in any of the original peoples of the Far East,
6 Southeast Asia, the Indian subcontinent, including Pakistan,
7 and the Pacific Islands, including, among others, Hawaii,
8 Melanesia, Micronesia and Polynesia); or (iv) Native American
9 (a person who is a member of a federally or state recognized
10 Indian tribe, or whose parents or grandparents have such
11 membership) and to include the native people of Alaska.
12 "Qualified student" means a person (i) who is a resident of
13 this State and a citizen or permanent resident of the United
14 States; (ii) who is a minority student, as defined in this
15 Section; (iii) who, as an eligible applicant, has made a
16 timely application for a minority teaching scholarship under
17 this Section; (iv) who is enrolled on a full time basis at
18 the sophomore level or above until his or her last semester
19 at a qualified Illinois institution of higher learning as an
20 undergraduate student and has not received a baccalaureate
21 degree, except that last semester seniors must enroll only
22 for a minimum of 6 credit hours in order to retain minority
23 scholarship eligibility under this Section; (v) who is
24 enrolled in a course of study leading to teacher
25 certification; (vi) who maintains a grade point average of no
26 less than 2.5 on a 4.0 scale while enrolled at the
27 postsecondary level; and (vii) who continues to advance
28 satisfactorily toward the attainment of a degree.
29 (b) In order to encourage academically talented Illinois
30 minority students to pursue teaching careers at the
31 elementary or secondary school level, each qualified student
32 shall be awarded a minority teacher scholarship to any
33 qualified Illinois institution of higher learning.
34 (c) Each minority teacher scholarship awarded under this
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1 Section shall be in an amount sufficient to pay the tuition
2 and fees and room and board costs of the qualified Illinois
3 institution of higher learning at which the recipient is
4 enrolled, up to an annual maximum of $5,000; except that in
5 the case of a recipient who does not reside on-campus at the
6 institution at which he or she is enrolled, the amount of the
7 scholarship shall be sufficient to pay tuition and fee
8 expenses and a commuter allowance, up to an annual maximum of
9 $5,000.
10 (d) The total amount of minority teacher scholarship
11 assistance awarded by the Authority under this Section to an
12 individual in any given fiscal year, when added to other
13 financial assistance awarded to that individual for that
14 year, shall not exceed the cost of attendance at the
15 institution at which the student is enrolled. If the amount
16 of minority teacher scholarship to be awarded to a qualified
17 student as provided in subsection (c) of this Section exceeds
18 the cost of attendance at the institution at which the
19 student is enrolled, the minority teacher scholarship shall
20 be reduced by an amount equal to the amount by which the
21 combined financial assistance available to the student
22 exceeds the cost of attendance.
23 (e) The maximum number of academic terms for which a
24 qualified student can receive minority teacher scholarship
25 assistance shall be 8 semesters or 12 quarters of
26 undergraduate study.
27 (f) In any academic year for which an eligible applicant
28 under this Section accepts financial assistance through the
29 Paul Douglas Teacher Scholarship Program, as authorized by
30 Section 551 et seq. of the Higher Education Act of 1965, the
31 applicant shall not be eligible for scholarship assistance
32 awarded under this Section.
33 (g) All applications for minority teacher scholarships
34 to be awarded under this Section shall be made to the
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1 Authority on forms which the Authority shall provide for
2 eligible applicants. The form of applications and the
3 information required to be set forth therein shall be
4 determined by the Authority, and the Authority shall require
5 eligible applicants to submit with their applications such
6 supporting documents or recommendations as the Authority
7 deems necessary.
8 (h) Subject to a separate appropriation for such
9 purposes, payment of any minority teacher scholarship awarded
10 under this Section shall be determined by the Authority. All
11 scholarship funds distributed in accordance with this
12 subsection shall be paid to the institution and used only for
13 payment of the tuition and fee and room and board expenses
14 incurred by the student in connection with his or her
15 attendance as an undergraduate student at a qualified
16 Illinois institution of higher learning. Any minority
17 teacher scholarship awarded under this Section shall be
18 applicable to 2 semesters or 3 quarters of enrollment. If a
19 qualified student withdraws from enrollment prior to
20 completion of the first semester or quarter for which the
21 minority teacher scholarship is applicable, the school shall
22 refund to the Authority the full amount of the minority
23 teacher scholarship.
24 (i) The Authority shall administer the minority teacher
25 scholarship aid program established by this Section and shall
26 make all necessary and proper rules not inconsistent with
27 this Section for its effective implementation.
28 (j) When an appropriation to the Authority for a given
29 fiscal year is insufficient to provide scholarships to all
30 qualified students, the Authority shall allocate the
31 appropriation in accordance with this subsection. If funds
32 are insufficient to provide all qualified students with a
33 scholarship as authorized by this Section, the Authority
34 shall allocate the available scholarship funds for that
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1 fiscal year on the basis of the date the Authority receives a
2 complete application form.
3 (k) Notwithstanding the provisions of subsection (j) or
4 any other provision of this Section, at least 30% of the
5 funds appropriated for scholarships awarded under this
6 Section in each fiscal year shall be reserved for qualified
7 male minority applicants.
8 (l) Prior to receiving scholarship assistance for any
9 academic year, each recipient of a minority teacher
10 scholarship awarded under this Section shall be required by
11 the Authority to sign an agreement under which the recipient
12 pledges that, within the 5 year period following the
13 termination of the undergraduate program for which the
14 recipient was awarded a minority teacher scholarship, the
15 recipient (i) shall teach for a period of not less than one
16 year for each year of scholarship assistance he or she was
17 awarded under this Section; and (ii) shall fulfill this
18 teaching obligation at a nonprofit Illinois public, private,
19 or parochial preschool, elementary school, or secondary
20 school at which no less than 30% of the enrolled students are
21 minority students in the year during which the recipient
22 begins teaching at the school; and (iii) shall, upon request
23 by the Authority, provide the Authority with evidence that he
24 or she is fulfilling or has fulfilled the terms of the
25 teaching agreement provided for in this subsection.
26 (m) If a recipient of a minority teacher scholarship
27 awarded under this Section fails to fulfill the teaching
28 obligation set forth in subsection (l) of this Section, the
29 Authority shall require the recipient to repay the amount of
30 the scholarships received, prorated according to the fraction
31 of the teaching obligation not completed, at a rate of
32 interest equal to 5%, and if applicable, reasonable
33 collection fees. The Authority is authorized to establish
34 rules relating to its collection activities for repayment of
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1 scholarships under this Section. All repayments collected
2 under this Section shall be forwarded to the State
3 Comptroller for deposit into the State's General Revenue
4 Fund.
5 (n) A recipient of minority teacher scholarship shall
6 not be considered in violation of the agreement entered into
7 pursuant to subsection (l) if the recipient (i) enrolls on a
8 full time basis as a graduate student in a course of study
9 related to the field of teaching at a qualified Illinois
10 institution of higher learning; (ii) is serving, not in
11 excess of 3 years, as a member of the armed services of the
12 United States; (iii) is temporarily totally disabled for a
13 period of time not to exceed 3 years as established by sworn
14 affidavit of a qualified physician; (iv) is seeking and
15 unable to find full time employment as a teacher at an
16 Illinois public, private, or parochial preschool or
17 elementary or secondary school that satisfies the criteria
18 set forth in subsection (l) of this Section and is able to
19 provide evidence of that fact; or, (v) becomes permanently
20 totally disabled as established by sworn affidavit of a
21 qualified physician.
22 (o) Scholarship recipients under this Section who
23 withdraw from the Minority Teachers of Illinois scholarship
24 program but remain enrolled in school to continue their
25 postsecondary studies in another academic discipline shall
26 not be required to commence repayment of their Minority
27 Teachers of Illinois scholarship so long as they remain
28 enrolled in school on a full- time basis or if they can
29 document for the Authority special circumstances that warrant
30 extension of repayment.
31 Section 27-70. David A. DeBolt Teacher Shortage
32 Scholarship Program.
33 (a) In order to encourage academically talented Illinois
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1 students, especially minority students, to pursue teaching
2 careers in teacher shortage disciplines, the Authority shall,
3 each year, receive and consider applications for scholarship
4 assistance under this Section. An applicant is eligible for
5 a scholarship under this Section when the Authority finds
6 that the applicant is:
7 (1) a United States citizen or eligible noncitizen;
8 (2) a resident of Illinois;
9 (3) a high school graduate or a person who has
10 received a General Educational Development Certificate;
11 (4) enrolled or accepted for enrollment, on at
12 least a half-time basis at the sophomore level or above,
13 at an Illinois institution of higher learning; and
14 (5) pursuing a postsecondary course of study
15 leading to initial certification in a teacher shortage
16 discipline or pursuing additional course work needed to
17 gain State Board of Education approval to teach in an
18 approved specialized area in which a teacher shortage
19 exists.
20 (b) Recipients shall be selected from among applicants
21 qualified pursuant to subsection (a) based on a combination
22 of the following criteria as set forth by the Authority: (1)
23 academic excellence; (2) status as a minority student as
24 defined in Section 50; and (3) financial need. Preference
25 may be given to previous recipients of assistance under this
26 Section, provided they continue to maintain eligibility and
27 maintain satisfactory academic progress as determined by the
28 institution of higher learning at which they enroll.
29 (c) Each scholarship awarded under this Section shall be
30 in an amount sufficient to pay the tuition and fees and room
31 and board costs of the Illinois institution of higher
32 learning at which the recipient is enrolled, up to an annual
33 maximum of $5,000; except that in the case of a recipient who
34 does not reside on-campus at the institution of higher
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1 learning at which he or she is enrolled, the amount of the
2 scholarship shall be sufficient to pay tuition and fee
3 expenses and a commuter allowance, up to an annual maximum of
4 $5,000.
5 (d) The total amount of scholarship assistance awarded
6 by the Authority under this Section to an individual in any
7 given fiscal year, when added to other financial assistance
8 awarded to that individual for that year, shall not exceed
9 the cost of attendance at the institution of higher learning
10 at which the student is enrolled.
11 (e) A recipient may receive up to 8 semesters or 12
12 quarters of scholarship assistance under this Section.
13 (f) All applications for scholarship assistance to be
14 awarded under this Section shall be made to the Authority in
15 a form as set forth by the Authority. The form of
16 application and the information required to be set forth
17 therein shall be determined by the Authority, and the
18 Authority shall require eligible applicants to submit with
19 their applications such supporting documents as the Authority
20 deems necessary.
21 (g) Subject to a separate appropriation made for such
22 purposes, payment of any scholarship awarded under this
23 Section shall be determined by the Authority. All
24 scholarship funds distributed in accordance with this Section
25 shall be paid to the institution on behalf of the recipients.
26 Scholarship funds are applicable toward 2 semesters or 3
27 quarters of enrollment within an academic year.
28 (h) The Authority shall administer the David A. DeBolt
29 Teacher Shortage Scholarship Program established by this
30 Section and shall make all necessary and proper rules not
31 inconsistent with this Section for its effective
32 implementation.
33 (i) Prior to receiving scholarship assistance for any
34 academic year, each recipient of a scholarship awarded under
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1 this Section shall be required by the Authority to sign an
2 agreement under which the recipient pledges that, within the
3 5 year period following the termination of the academic
4 program for which the recipient was awarded a scholarship,
5 the recipient: (i) shall teach in a teacher shortage
6 discipline for a period of not less than one year for each
7 year of scholarship assistance awarded under this Section,
8 (ii) shall fulfill this teaching obligation at an Illinois
9 public, private, or parochial preschool or elementary or
10 secondary school, and (iii) shall, upon request of the
11 Authority, provide the Authority with evidence that he or she
12 is fulfilling or has fulfilled the terms of the teaching
13 agreement provided for in this subsection.
14 (j) If a recipient of a scholarship awarded under this
15 Section fails to fulfill the teaching obligation set forth in
16 subsection (i) of this Section, the Authority shall require
17 the recipient to repay the amount of the scholarships
18 received, prorated according to the fraction of the teaching
19 obligation not completed, plus interest at a rate no greater
20 than the highest rate applicable for educational loans made
21 pursuant to Title IV, Part B of the Higher Education Act of
22 1965, as amended, and if applicable, reasonable collection
23 fees. The Authority is authorized to establish rules
24 relating to its collection activities for repayment of
25 scholarships under this Section.
26 (k) A recipient of a scholarship awarded by the
27 Authority under this Section shall not be in violation of the
28 agreement entered into pursuant to subsection (i) if the
29 recipient (i) enrolls on a full-time basis as a graduate
30 student in a course of study related to the field of teaching
31 at an institution of higher learning; (ii) is serving as a
32 member of the armed services of the United States; (iii) is
33 temporarily totally disabled, as established by sworn
34 affidavit of a qualified physician; or (iv) is seeking and
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1 unable to find full-time employment as a teacher at a school
2 that satisfies the criteria set forth in subsection (i) and
3 is able to provide evidence of that fact. Any such extension
4 of the period during which the teaching requirement must be
5 fulfilled shall be subject to limitations of duration as
6 established by the Authority.
7 Section 27-75. Police officer or fire officer survivor
8 grant. Grants shall be provided for any spouse, natural
9 child, legally adopted child, or child in the legal custody
10 of police officers and fire officers killed or permanently
11 disabled with 90% to 100% disability in the line of duty
12 while employed by, or in the voluntary service of, this State
13 or any local public entity in this State. Beneficiaries need
14 not be Illinois residents at the time of enrollment in order
15 to receive this grant. Beneficiaries are entitled to 8
16 semesters or 12 quarters of full payment of tuition and
17 mandatory fees at any State-sponsored Illinois institution of
18 higher learning for either full or part-time study, or the
19 equivalent of 8 semesters or 12 quarters of payment of
20 tuition and mandatory fees at the rate established by the
21 Authority for private institutions in the State of Illinois,
22 provided the recipient is maintaining satisfactory academic
23 progress. This benefit may be used for undergraduate or
24 graduate study. The benefits of this Section shall be
25 administered by and paid out of funds available to the
26 Authority and shall accrue to the bona fide applicant without
27 the requirement of demonstrating financial need to qualify
28 for those benefits.
29 Section 27-80. Grants for dependents of Department of
30 Corrections employees killed or permanently disabled in the
31 line of duty. Any spouse, natural child, legally adopted
32 child, or child in the legal custody of an employee of the
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1 Department of Corrections who is assigned to a security
2 position with the Department with responsibility for inmates
3 of any correctional institution under the jurisdiction of the
4 Department and who is killed or permanently disabled with 90%
5 to 100% disability in the line of duty is entitled to 8
6 semesters or 12 quarters of full payment of tuition and
7 mandatory fees at any State-supported Illinois institution of
8 higher learning for either full or part- time study, or the
9 equivalent of 8 semesters or 12 quarters of payment of
10 tuition and mandatory fees at the rate established by the
11 Authority for private institutions in the State of Illinois,
12 provided the recipient is maintaining satisfactory academic
13 progress. This benefit may be used for undergraduate or
14 graduate study. Beneficiaries need not be Illinois residents
15 at the time of enrollment in order to receive this grant.
16 The benefits of this Section shall be administered by and
17 paid out of funds available to the Authority and shall accrue
18 to the bona fide applicant without the requirement of
19 demonstrating financial need to qualify for those benefits.
20 Section 27-85. Student to student grant program.
21 (a) As used in this Section: "Voluntary contribution"
22 includes fees collected from students by college or
23 university officials when the fee is optional or refundable
24 to students and has been approved by a majority of those
25 voting in a campus-wide referendum of students. "College or
26 university" means any of the State-supported institutions of
27 higher learning administered by the Board of Trustees of the
28 University of Illinois, the Board of Trustees of Southern
29 Illinois University, the Board of Trustees of Chicago State
30 University, the Board of Trustees of Eastern Illinois
31 University, the Board of Trustees of Governors State
32 University, the Board of Trustees of Illinois State
33 University, the Board of Trustees of Northeastern Illinois
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1 University, the Board of Trustees of Northern Illinois
2 University, the Board of Trustees of Western Illinois
3 University, or the boards of trustees of public community
4 college districts as established and defined by the Public
5 Community College Act.
6 (b) Subject to a separate appropriation for such
7 purposes, the Authority shall make matching grants to each
8 college or university for a program of student grant
9 assistance. Such grants shall match equally the amount
10 raised by college or university students for the grant
11 program. Contributions from individuals who are not then
12 enrolled as college or university students or from private or
13 eleemosynary groups and associations made directly to the
14 student fund or through a college or university student shall
15 not be included in the total amount that the State shall
16 match. If the sum appropriated is insufficient to match
17 equally the amount raised by students, the amount payable to
18 each college or university shall be proportionately reduced.
19 (c) Grant programs under this Section shall be
20 administered by each college or university, and grants under
21 those programs shall be awarded to individuals on a need
22 basis as prescribed by the Authority.
23 (d) No grant to any student from funds raised through
24 voluntary contributions and matched from the State
25 appropriation under this Section may exceed $1,000 per year.
26 (e) Each college or university shall submit to the
27 Authority an annual report of the activities, operation and
28 results of its grant program under this Section.
29 Section 27-90. Traineeship and fellowship program;
30 training of professional personnel.
31 (a) The Authority, with the advice of the Advisory
32 Council on Education of Children with Disabilities created
33 under Section 14-3.01 of the School Code, may make
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1 traineeship or fellowship grants to persons of good character
2 who are interested in working in programs for the education
3 of children with disabilities, for either part-time or
4 full-time study in programs designed to qualify them under
5 Section 14-1.10 of the School Code. Persons to qualify for a
6 traineeship must have earned at least 60 semester hours of
7 college credit, and persons to qualify for a fellowship must
8 be graduates of a recognized college or university. Such
9 traineeships and fellowships may be in amounts of not more
10 than $1,500 per academic year for traineeships and not more
11 than $3,000 per academic year for fellowships, except an
12 additional sum up to $2,500 annually for each grantee may be
13 allowed to any approved institution of higher learning in
14 Illinois for the actual cost to the institution, as certified
15 by the institution. Part-time students and summer session
16 students may be awarded grants on a pro rata basis. The
17 Authority shall make traineeship or fellowship grants
18 available to bilingual individuals who are interested in
19 working in programs for the education of children from
20 non-English speaking backgrounds, for either part-time or
21 full-time study programs to qualify them under Section
22 14-1.10 of the School Code.
23 (b) All grants shall be made under rules and regulations
24 prescribed by the Authority and issued pursuant to this Act;
25 provided that no rule or regulation promulgated by the State
26 Board of Education prior to July 1, 1994 pursuant to the
27 exercise of any right, power, duty, responsibility or matter
28 of pending business transferred from the State Board of
29 Education to the Authority under this Section shall be
30 affected thereby, and all such rules and regulations shall
31 become the rules and regulations of the Authority until
32 modified or changed by the Authority in accordance with law.
33 (c) The Authority, with the advice of and in
34 consultation with the State Board of Education, may contract
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1 with any approved institution of higher learning in Illinois
2 to offer courses required for the professional training of
3 special education personnel at such times and locations as
4 may best serve the needs of children with disabilities in
5 Illinois and may reimburse the institution of higher learning
6 for any financial loss incurred due to low enrollments,
7 distance from campus, or other good and substantial reason
8 satisfactory to the Advisory Council on Education of Children
9 with Disabilities.
10 (d) The Authority shall administer the traineeship and
11 fellowship account and related record of each person who is
12 attending an institution of higher learning under a
13 traineeship or fellowship awarded pursuant to this Section
14 and at each proper time shall certify to the State
15 Comptroller the current payment to be made to the holder of
16 each fellowship, in accordance with an appropriate
17 certificate of the holder of such fellowship endorsed by the
18 institution of higher learning attended by the holder.
19 (e) Following the completion of such program of study
20 the recipient of such traineeship or fellowship is expected
21 to accept employment within one year in an approved program
22 of special education for children with disabilities in
23 Illinois on the basis of 1/2 year of service for each
24 academic year of training received through a grant under
25 this Section. Persons who fail to comply with this provision
26 may, at the discretion of the Authority with the advice of
27 the Advisory Council on Education of Children with
28 Disabilities, be required to refund all or part of the
29 traineeship or fellowship moneys received.
30 (f) This Section is substantially the same as Section
31 14-10.01 of the School Code, which Section is repealed by
32 this amendatory Act of 1993, and shall be construed as a
33 continuation of the traineeship and fellowship program
34 established by that prior law, and not as a new or different
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1 traineeship or fellowship program. The State Board of
2 Education shall transfer to the Authority, as the successor
3 to the State Board of Education for all purposes of
4 administering and implementing the provisions of this
5 Section, all books, accounts, records, papers, documents,
6 contracts, agreements, and pending business in any way
7 relating to the traineeship and fellowship program continued
8 under this Section; and all traineeship and fellowship grants
9 at any time made under that program by, and all applications
10 for any such traineeship or fellowship grants at any time
11 made to, the State Board of Education shall be unaffected by
12 the transfer to the Authority of all responsibility for the
13 administration and implementation of the traineeship and
14 fellowship program continued under this Section. The State
15 Board of Education shall furnish to the Authority such other
16 information as the Authority may request to assist it in
17 administering this Section.
18 Section 27-95. Fellowship program. The Authority, with
19 the advice of the Advisory Council on Education of Gifted
20 Children created under Section 14A-4 of the School Code, may
21 make fellowship grants to persons of good character who are
22 graduates of a recognized college or university and are
23 interested in working in programs for the education of gifted
24 children, for full-time study at the graduate level in
25 programs designed to improve their competence for working in
26 such programs. Such grants shall not exceed 50 in any
27 academic year and may be in amounts of $2,000 per academic
28 year and shall be granted under rules and regulations
29 prescribed by the Authority and issued pursuant to this Act;
30 provided that no rule or regulation promulgated by the State
31 Board of Education prior to the effective date of this
32 amendatory Act of 1993 pursuant to the exercise of any right,
33 power, duty, responsibility or matter of pending business
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1 transferred from the State Board of Education to the
2 Authority under this Section shall be affected thereby, and
3 all such rules and regulations shall become the rules and
4 regulations of the Authority until modified or changed by the
5 Authority in accordance with law. The Authority shall
6 encourage the application of qualified teachers who are not
7 teaching because of a reduction in force in their school
8 districts.
9 Traineeship program. To encourage a greater number of
10 teachers in mathematics and science in the elementary and
11 secondary schools of Illinois, the Authority, with the advice
12 of the Advisory Council on Education of Gifted Children, may
13 make traineeship grants available to persons whose
14 undergraduate degree involves a major in science or
15 mathematics. These grants are intended to encourage
16 individuals to enter the teaching profession. Such grants
17 shall not exceed 25 in any academic year and may be in
18 amounts of $1,000 per academic year and shall be granted
19 under rules and regulations prescribed by the Authority and
20 issued pursuant to this Act; provided that no rule or
21 regulation promulgated by the State Board of Education prior
22 to the effective date of this amendatory Act of 1993 pursuant
23 to the exercise of any right, power, duty, responsibility or
24 matter of pending business transferred from the State Board
25 of Education to the Authority under this Section shall be
26 affected thereby, and all such rules and regulations shall
27 become the rules and regulations of the Authority until
28 modified or changed by the Authority in accordance with law.
29 The rules and regulations promulgated as provided in this
30 Section shall delineate the eligibility criteria to be
31 applied in determining applicants' eligibility for the
32 fellowship and traineeship grants, including the specific
33 criteria used to determine applicants' financial need for the
34 grants. These rules and regulations shall explain the method
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1 for evaluating the eligibility criteria, including the weight
2 given to each of the relevant factors.
3 The Authority shall administer the fellowship or
4 traineeship account and related record of each person who is
5 attending an institution of higher learning under a
6 fellowship or traineeship awarded pursuant to this Section
7 and at each proper time shall certify to the State
8 Comptroller the current payment to be made to the holder of
9 each fellowship or traineeship, in accordance with an
10 appropriate certificate of the holder of such fellowship or
11 traineeship endorsed by the institution of higher learning
12 attended by the holder. Following the completion of such
13 program of study the recipient of a traineeship grant is
14 expected not to reject employment within one year in an
15 elementary or secondary school in Illinois on the basis of
16 BD year of service for each academic year of training
17 received through a grant under this Article. The recipient
18 of a fellowship grant is expected to contribute to the
19 further development of educational programs for gifted
20 children in Illinois for a period of 2 years. Persons who
21 fail to comply with these provisions may, at the discretion
22 of the Authority and with the advice of the Advisory Council
23 on Education of Gifted Children, be required to refund all or
24 part of the traineeship or fellowship moneys received, and
25 this condition shall be agreed to in writing by all grant
26 recipients at the time the fellowship or traineeship is
27 initially awarded. The rules and regulations promulgated as
28 provided in this Section shall prescribe the standards used
29 by the Authority in determining whether to require that grant
30 recipients refund all or part of the traineeship or
31 fellowship moneys received.
32 This Section is substantially the same as Section 14A-8
33 of the School Code, which Section is repealed by this
34 amendatory Act of 1993, and shall be construed as a
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1 continuation of the fellowship and traineeship programs
2 established by that prior law and not as a new or different
3 fellowship or traineeship program. The State Board of
4 Education shall transfer to the Authority, as the successor
5 to the State Board of Education for all purposes of
6 administering and implementing the provisions of this
7 Section, all books, accounts, records, papers, documents,
8 contracts, agreements, and pending business in any way
9 relating to the traineeship and fellowship programs continued
10 under this Section; and all traineeship and fellowship grants
11 at any time made under those programs by, and all
12 applications for any such traineeship or fellowship grants at
13 any time made to, the State Board of Education shall be
14 unaffected by the transfer to the Authority of all
15 responsibility for the administration and implementation of
16 the traineeship and fellowship programs continued under this
17 Section. The State Board of Education shall furnish to the
18 Authority such other information as the Authority may request
19 to assist it in administering this Section.
20 Section 27-100. Special education teacher scholarships.
21 (a) There shall be awarded annually 250 scholarships to
22 persons qualifying as members of either of the following
23 groups:
24 (1) Students who are otherwise qualified to receive
25 a scholarship as provided in subsections (b) and (c) of
26 this Section and who make application to the Authority
27 for such scholarship and agree to take courses that will
28 prepare the student for the teaching of children
29 described in Section 14-1 of the School Code.
30 (2) Persons holding a valid certificate issued
31 under the laws relating to the certification of teachers
32 and who make application to the Authority for such
33 scholarship and agree to take courses that will prepare
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1 them for the teaching of children described in Section
2 14-1 of the School Code.
3 Scholarships awarded under this Section shall be issued
4 pursuant to regulations promulgated by the Authority;
5 provided that no rule or regulation promulgated by the State
6 Board of Education prior to the effective date of this
7 amendatory Act of 1993 pursuant to the exercise of any right,
8 power, duty, responsibility or matter of pending business
9 transferred from the State Board of Education to the
10 Authority under this Section shall be affected thereby, and
11 all such rules and regulations shall become the rules and
12 regulations of the Authority until modified or changed by the
13 Authority in accordance with law.
14 For the purposes of this Section scholarships awarded
15 each school year shall be deemed to be issued on July 1 of
16 the year prior to the start of the postsecondary school term
17 and all calculations for use of the scholarship shall be
18 based on such date. Each scholarship shall entitle its
19 holder to exemption from fees as provided in subsection (a)
20 of Section 27-125 while enrolled in a special education
21 program of teacher education, for a period of not more than 4
22 calendar years and shall be available for use at any time
23 during such period of study except as provided in subsection
24 (b) of Section 27-125.
25 Scholarships issued to holders of a valid certificate
26 issued under the laws relating to the certification of
27 teachers as provided in paragraph (2) of this subsection may
28 also entitle the holder thereof to a program of teacher
29 education that will prepare the student for the teaching of
30 children described in Section 14-1 of the School Code at the
31 graduate level.
32 (b) Each year, the principal, or his or her designee, of
33 each recognized public, private and parochial high school
34 maintaining the twelfth grade shall certify to the Authority
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1 the names and addresses of students who are completing an
2 application with the intent to prepare to teach in any
3 recognized public, private, or parochial school of Illinois
4 and ranked scholastically in the upper one- half of their
5 graduating class or, for those not yet graduated, whose
6 scholastic rank in the 4-year high school course of study at
7 the end of the seventh semester is in the upper one-half of
8 their class.
9 (c) Each holder of a scholarship must furnish proof to
10 the Authority, in such form and at such intervals as the
11 Authority prescribes, of the holder's continued enrollment in
12 a teacher education program qualifying the holder for the
13 scholarship. Any holder of a scholarship who fails to
14 register in a special education program of teacher education
15 at the university within 10 days after the commencement of
16 the term, quarter or semester immediately following the
17 receipt of the scholarship or who, having registered,
18 withdraws from the university or transfers out of teacher
19 education, shall thereupon forfeit the right to use it and it
20 may be granted to the person having the next highest rank as
21 shown on the list held by the Authority. If the person
22 having the next highest rank, within 10 days after
23 notification thereof by the Authority, fails to register at
24 any such university in a special education program of teacher
25 education, or who, having registered, withdraws from the
26 university or transfers out of teacher education, the
27 scholarship may then be granted to the person shown on the
28 list as having the rank next below such person.
29 (d) Any person who has accepted a scholarship under the
30 preceding subsections of this Section must, after graduation
31 from or termination of enrollment in a teacher education
32 program, teach in any recognized public, private or parochial
33 school in this State for at least 2 of the 5 years
34 immediately following that graduation or termination,
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1 excluding, however, from the computation of that 5 year
2 period (i) any time up to 3 years spent in the military
3 service, whether such service occurs before or after the
4 person graduates; (ii) any time that person is enrolled
5 full-time in an academic program related to the field of
6 teaching leading to a graduate or postgraduate degree; (iii)
7 the time that person is temporarily totally disabled for a
8 period of time not to exceed 3 years, as established by the
9 sworn affidavit of a qualified physician; (iv) the time that
10 person is seeking and unable to find full time employment as
11 a teacher at an Illinois public, private, or parochial
12 school; or (v) the time that person is taking additional
13 courses, on at least a half-time basis, needed to obtain
14 certification as a teacher in Illinois. A person who has
15 accepted a scholarship under the preceding subsections of
16 this Section and who has been unable to fulfill the teaching
17 requirements of this Section may receive a deferment from the
18 obligation of repayment under this subsection (d) under
19 guidelines established by the Authority; provided that no
20 guideline established for any such purpose by the State Board
21 of Education prior to the effective date of this amendatory
22 Act of 1993 shall be affected by the transfer to the
23 Authority of the responsibility for administering and
24 implementing the provisions of this Section, and all
25 guidelines so established shall become the guidelines of the
26 Authority until modified or changed by the Authority.
27 Any such person who fails to fulfill this teaching
28 requirement shall pay to the Authority the amount of tuition
29 waived by virtue of his or her acceptance of the scholarship,
30 together with interest at 5% per year on that amount.
31 However, this obligation to repay the amount of tuition
32 waived plus interest does not apply when the failure to
33 fulfill the teaching requirement results from the death or
34 adjudication as a person under legal disability of the person
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1 holding the scholarship, and no claim for repayment may be
2 filed against the estate of such a decedent or person under
3 legal disability. Payments received by the Authority under
4 this subsection (d) shall be remitted to the State Treasurer
5 for deposit in the general revenue fund. Each person
6 receiving a scholarship shall be provided with a description
7 of the provisions of this subsection (d) at the time he or
8 she qualifies for the benefits of such a scholarship.
9 (e) This Section is basically the same as Sections 30-1,
10 30-2,30-3, and 30-4a of the School Code, which are repealed
11 by this amendatory Act of 1993, and shall be construed as a
12 continuation of the teacher scholarship program established
13 by that prior law, and not as a new or different teacher
14 scholarship program. The State Board of Education shall
15 transfer to the Authority, as the successor to the State
16 Board of Education for all purposes of administering and
17 implementing the provisions of this Section, all books,
18 accounts, records, papers, documents, contracts, agreements,
19 and pending business in any way relating to the teacher
20 scholarship program continued under this Section; and all
21 scholarships at any time awarded under that program by, and
22 all applications for any such scholarships at any time made
23 to, the State Board of Education shall be unaffected by the
24 transfer to the Authority of all responsibility for the
25 administration and implementation of the teacher scholarship
26 program continued under this Section. The State Board of
27 Education shall furnish to the Authority such other
28 information as the Authority may request to assist it in
29 administering this Section.
30 Section 27-105. Science-mathematics teacher
31 scholarships.
32 (a) The Authority may annually award a number of
33 scholarships, not to exceed 200, to persons holding valid
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1 teaching certificates issued under Article 21 of the School
2 Code. Such scholarships shall be issued to teachers who make
3 application to the Authority and who agree to take courses at
4 qualified institutions of higher learning that will prepare
5 them to teach science or mathematics at the secondary school
6 level.
7 (b) Scholarships awarded under this Section shall be
8 issued pursuant to regulations promulgated by the Authority;
9 provided that no rule or regulation promulgate by the State
10 Board of Education prior to the effective date of this
11 amendatory Act of 1993 pursuant to the exercise of any right,
12 power, duty, responsibility or matter of pending business
13 transferred from the State Board of Education to the
14 Authority under this Section shall be affected thereby, and
15 all such rules and regulations shall become the rules and
16 regulations of the Authority until modified or changed by the
17 Authority in accordance with law. In awarding scholarships,
18 the Authority shall give priority to those teachers with the
19 greatest amount of seniority within school districts.
20 (c) Each scholarship shall be utilized by its holder for
21 the payment of tuition at any qualified institution of higher
22 learning. Such tuition shall be available only for courses
23 that will enable the teacher to be certified to teach science
24 or mathematics at the secondary school level. The Authority,
25 in consultation with the State Teacher Certification Board,
26 shall determine which courses are eligible for tuition
27 payments under this Section.
28 (d) The Authority shall make tuition payments directly
29 to the qualified institution of higher learning which the
30 teacher attends for the courses prescribed or may make
31 payments to the teacher. Any teacher who receives payments
32 and who fails to enroll in the courses prescribed shall
33 refund the payments to the Authority.
34 (e) Following the completion of the program of study,
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1 the teacher must accept employment within 2 years in a
2 secondary school in Illinois within 60 miles of the teacher's
3 residence to teach science or mathematics; provided, however,
4 that the teacher instead may elect to accept employment
5 within such 2 year period to teach science or mathematics in
6 a secondary school in Illinois which is more than 60 miles
7 from the teacher's residence. Teachers who fail to comply
8 with this provision shall refund all of the scholarship
9 awarded to the Authority, whether payments were made directly
10 to the institutions of higher learning or to the teachers,
11 and this condition shall be agreed to in writing by all
12 scholarship recipients at the time the scholarship is
13 awarded. No teacher shall be required to refund tuition
14 payments if his or her failure to obtain employment as a
15 mathematics or science teacher in a secondary school is the
16 result of financial conditions within school districts. The
17 rules and regulations promulgated as provided in this Section
18 shall include provisions regarding the waiving and deferral
19 of such payments.
20 (f) The Authority, with the cooperation of the State
21 Board of Education, shall assist teachers who have
22 participated in the scholarship program established by this
23 Section in finding employment to teach science or mathematics
24 at the secondary level.
25 (g) This Section is substantially the same as Section
26 30-4b of the School Code, which Section is repealed by this
27 amendatory Act of 1993, and shall be construed as a
28 continuation of the science-mathematics teacher scholarship
29 program established by that prior law, and not as a new or
30 different science-mathematics teacher scholarship program.
31 The State Board of Education shall transfer to the Authority,
32 as the successor to the State Board of Education for all
33 purposes of administering and implementing the provisions of
34 this Section, all books, accounts, records, papers,
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1 documents, contracts, agreements, and pending business in any
2 way relating to the science- mathematics teacher scholarship
3 program continued under this Section; and all scholarships at
4 any time awarded under that program by, and all applications
5 for any such scholarships at any time made to, the State
6 Board of Education shall be unaffected by the transfer to the
7 Authority of all responsibility for the administration and
8 implementation of the science-mathematics teacher scholarship
9 program continued under this Section. The State Board of
10 Education shall furnish to the Authority such other
11 information as the Authority may request to assist it in
12 administering this Section.
13 (h) Appropriations for the scholarships outlined in this
14 Section shall be made to the Authority from funds
15 appropriated by the General Assembly.
16 (i) For the purposes of this Section: "Qualified
17 institution of higher learning" means the University of
18 Illinois, Southern Illinois University, Chicago State
19 University, Eastern Illinois University, Governors State
20 University, Illinois State University, Northeastern Illinois
21 University, Northern Illinois University, Western Illinois
22 University, and the public community colleges subject to the
23 Public Community College Act. "Secondary school level" means
24 grades 9 through 12 or a portion of such grades.
25 Section 27-110. Teacher shortage scholarships.
26 (a) The Authority may annually award a number of
27 scholarships to persons preparing to teach in areas of
28 identified staff shortages. Such scholarships shall be
29 issued to individuals who make application to the Authority
30 and who agree to take courses at qualified institutions of
31 higher learning which will prepare them to teach in areas of
32 identified staff shortages.
33 (b) Scholarships awarded under this Section shall be
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1 issued pursuant to regulations promulgated by the Authority;
2 provided that no rule or regulation promulgated by the State
3 Board of Education prior to the effective date of this
4 amendatory Act of 1993 pursuant to the exercise of any right,
5 power, duty, responsibility or matter of pending business
6 transferred from the State Board of Education to the
7 Authority under this Section shall be affected thereby, and
8 all such rules and regulations shall become the rules and
9 regulations of the Authority until modified or changed by the
10 Authority in accordance with law. The Authority shall
11 allocate the scholarships awarded between persons initially
12 preparing to teach, persons holding valid teaching
13 certificates issued under Articles 21 and 34 of the School
14 Code, and persons holding a bachelor's degree from any
15 accredited college or university who have been employed for a
16 minimum of 10 years in a field other than teaching.
17 (c) Each scholarship shall be utilized by its holder for
18 the payment of tuition and non-revenue bond fees at any
19 qualified institution of higher learning. Such tuition and
20 fees shall be available only for courses that will enable the
21 individual to be certified to teach in areas of identified
22 staff shortages. The Authority shall determine which courses
23 are eligible for tuition payments under this Section.
24 (d) The Authority may make tuition payments directly to
25 the qualified institution of higher learning which the
26 individual attends for the courses prescribed or may make
27 payments to the teacher. Any teacher who received payments
28 and who fails to enroll in the courses prescribed shall
29 refund the payments to the Authority.
30 (e) Following the completion of the program of study,
31 persons who held valid teaching certificates and persons
32 holding a bachelor's degree from any accredited college or
33 university who have been employed for a minimum of 10 years
34 in a field other than teaching prior to receiving a teacher
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1 shortage scholarship must accept employment within 2 years in
2 a school in Illinois within 60 miles of the person's
3 residence to teach in an area of identified staff shortage
4 for a period of at least 3 years; provided, however that any
5 such person instead may elect to accept employment within
6 such 2 year period to teach in an area of identified staff
7 shortage for a period of at least 3 years in a school in
8 Illinois which is more than 60 miles from such person's
9 residence. Persons initially preparing to teach prior to
10 receiving a teacher shortage scholarship must accept
11 employment within 2 years in a school in Illinois to teach in
12 an area of identified staff shortage for a period of at least
13 3 years. Individuals who fail to comply with this provision
14 shall refund all of the scholarships awarded to the
15 Authority, whether payments were made directly to the
16 institutions of higher learning or to the individuals, and
17 this condition shall be agreed to in writing by all
18 scholarship recipients at the time the scholarship is
19 awarded. No individual shall be required to refund tuition
20 payments if his or her failure to obtain employment as a
21 teacher in a school is the result of financial conditions
22 within school districts. The rules and regulations
23 promulgated as provided in this Section shall contain
24 provisions regarding the waiving and deferral of such
25 payments.
26 (f) The Authority, with the cooperation of the State
27 Board of Education, shall assist individuals who have
28 participated in the scholarship program established by this
29 Section in finding employment in areas of identified staff
30 shortages.
31 (g) Beginning in September, 1994 and annually
32 thereafter, the Authority, using data annually supplied by
33 the State Board of Education under procedures developed by it
34 to measure the level of shortage of qualified bilingual
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1 personnel serving students with disabilities, shall annually
2 publish (i) the level of shortage of qualified bilingual
3 personnel serving students with disabilities, and (ii)
4 allocations of scholarships for personnel preparation
5 training programs in the areas of bilingual special education
6 teacher training and bilingual school service personnel.
7 (h) Appropriations for the scholarships outlined in this
8 Section shall be made to the Authority from funds
9 appropriated by the General Assembly.
10 (i) This Section is substantially the same as Section
11 30-4c of the School Code, which Section is repealed by this
12 amendatory Act of 1993, and shall be construed as a
13 continuation of the teacher shortage scholarship program
14 established under that prior law, and not as a new or
15 different teacher shortage scholarship program. The State
16 Board of Education shall transfer to the Authority, as the
17 successor to the State Board of Education for all purposes of
18 administering and implementing the provisions of this
19 Section, all books, accounts, records, papers, documents,
20 contracts, agreements, and pending business in any way
21 relating to the teacher shortage scholarship program
22 continued under this Section; and all scholarships at any
23 time awarded under that program by, and all applications for
24 any such scholarships at any time made to, the State Board of
25 Education shall be unaffected by the transfer to the
26 Authority of all responsibility for the administration and
27 implementation of the teacher shortage scholarship program
28 continued under this Section. The State Board of Education
29 shall furnish to the Authority such other information as the
30 Authority may request to assist it in administering this
31 Section.
32 (j) For the purposes of this Section: "Qualified
33 institution of higher learning" means the University of
34 Illinois, Southern Illinois University, Chicago State
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1 University, Eastern Illinois University, Governors State
2 University, Illinois State University, Northeastern Illinois
3 University, Northern Illinois University, Western Illinois
4 University, the public community colleges subject to the
5 Public Community College Act and any Illinois privately
6 operated college, community college or university offering
7 degrees and instructional programs above the high school
8 level either in residence or by correspondence. The Board of
9 Higher Education and the Authority, in consultation with the
10 State Board of Education, shall identify qualified
11 institutions to supply the demand for bilingual special
12 education teachers and bilingual school service personnel.
13 "Areas of identified staff shortages" means courses of study
14 in which the number of teachers is insufficient to meet
15 student or school district demand for such instruction as
16 determined by the State Board of Education.
17 Section 27-115. Equal opportunity scholarships.
18 (a) The Authority may annually award a number of
19 scholarships to students who are interested in pursuing
20 studies in educational administration. Such scholarships
21 shall be issued to students who make application to the
22 Authority and who agree to take courses at qualified
23 institutions of higher learning that will allow them to
24 complete a degree in educational administration.
25 (b) Scholarships awarded under this Section shall be
26 issued pursuant to regulations promulgated by the Authority;
27 provided that no rule or regulation promulgated by the State
28 Board of Education prior to the effective date of this
29 amendatory Act of 1993 pursuant to the exercise of any right,
30 power, duty, responsibility or matter of pending business
31 transferred from the State Board of Education to the
32 Authority under this Section shall be affected thereby, and
33 all such rules and regulations shall become the rules and
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1 regulations of the Authority until modified or changed by the
2 Authority in accordance with law.
3 (c) Such scholarships shall be utilized for the payment
4 of tuition and non-revenue bond fees at any qualified
5 institution of higher learning. Such tuition and fees shall
6 only be available for courses that will enable the student to
7 complete training in educational administration. The
8 Authority shall determine which courses are eligible for
9 tuition payments under this Section.
10 (d) The Authority may make tuition payments directly to
11 the qualified institution of higher learning which the
12 student attends for the courses prescribed or may make
13 payments to the student. Any student who receives payments
14 and who fails to enroll in the courses prescribed shall
15 refund the payments to the Authority.
16 (e) The Authority, with the cooperation of the State
17 Board of Education, shall assist students who have
18 participated in the scholarship program established by this
19 Section in finding employment in positions relating to
20 educational administration.
21 (f) Appropriations for the scholarships outlined in this
22 Section shall be made to the Authority from funds
23 appropriated by the General Assembly.
24 (g) This Section is substantially the same as Section
25 30-4d of the School Code, which Section is repealed by this
26 amendatory Act of 1993, and shall be construed as a
27 continuation of the equal opportunity scholarship program
28 established under that prior law, and not as a new or
29 different equal opportunity scholarship program. The State
30 Board of Education shall transfer to the Authority, as the
31 successor to the State Board of Education for all purposes of
32 administering and implementing the provisions of this
33 Section, all books, accounts, records, papers, documents,
34 contracts, agreements, and pending business in any way
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1 relating to the equal opportunity scholarship program
2 continued under this Section; and all scholarships at any
3 time awarded under that program by, and all applications for
4 any such scholarship at any time made to, the State Board of
5 Education shall be unaffected by the transfer to the
6 Authority of all responsibility for the administration and
7 implementation of the equal opportunity scholarship program
8 continued under this Section. The State Board of Education
9 shall furnish to the Authority such other information as the
10 Authority may request to assist it in administering this
11 Section.
12 (h) For purposes of this Section:
13 (1) "Qualified institution of higher learning"
14 means the University of Illinois; Southern Illinois
15 University; Chicago State University; Eastern Illinois
16 University; Governors State University; Illinois State
17 University; Northeastern Illinois University; Northern
18 Illinois University; Western Illinois University; the
19 public community colleges of the State; any other public
20 universities, colleges and community colleges now or
21 hereafter established or authorized by the General
22 Assembly; and any Illinois privately operated, not for
23 profit institution located in this State which provides
24 at least an organized 2-year program of collegiate grade
25 in liberal arts or sciences, or both, directly applicable
26 toward the attainment of a baccalaureate or graduate
27 degree.
28 (2) "Racial minority" means a: (i) Black (a
29 person having origins in any of the black racial groups
30 in Africa); (ii) Hispanic (a person of Spanish or
31 Portuguese culture with origins in Mexico, South or
32 Central America, or the Caribbean Islands, regardless of
33 race); (iii) Asian American (a person having origins in
34 any of the original peoples of the Far East, Southeast
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1 Asia, the Indian Subcontinent or the Pacific Islands); or
2 (iv) American Indian or Alaskan Native (a person having
3 origins in any of the original peoples of North America).
4 (3) "Student" means a woman or racial minority.
5 Section 27-120. Administrator internships. Under the
6 internship program established by the State Board of
7 Education to provide experience to women and minorities
8 interested in preparing for positions as school
9 administrators, the Authority may annually award internship
10 grants pursuant to appropriation for this purpose. This
11 Section is substantially the same as Section 30-4e of the
12 School Code, which Section is repealed by this amendatory Act
13 of 1993, and shall be construed as a continuation of the
14 administrator internship program established under that prior
15 law, and not as a new or different administrator internship
16 program. The State Board of Education shall transfer to the
17 Authority, as the successor to the State Board of Education
18 for all purposes of administering and implementing the
19 provisions of this Section, all books, accounts, records,
20 papers, documents, contracts, agreements, and pending
21 business in any way relating to the administrator internship
22 program continued under this Section; and all internship
23 grants at any time made under that program by, and all
24 applications for any such internship grants at any time made
25 to, the State Board of Education shall be unaffected by the
26 transfer to the Authority of all responsibility for the
27 administration and implementation of the administrator
28 internship program continued under this Section. The State
29 Board of Education shall furnish to the Authority such other
30 information as the Authority may request to assist it in
31 administering this Section.
32 Section 27-125. General provisions; leaves of absence.
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1 (a) The scholarships issued under Section 27-100 may be
2 used at the University of Illinois, Southern Illinois
3 University, Chicago State University, Eastern Illinois
4 University, Governors State University, Illinois State
5 University, Northeastern Illinois University, Northern
6 Illinois University, and Western Illinois University. Unless
7 otherwise indicated, the scholarships shall exempt the holder
8 from the payment of tuition and other necessary fees as
9 defined in Section 27-35 of this Act. Any student who has
10 been or shall be awarded a scholarship shall be reimbursed by
11 the appropriate university or community college for any
12 charges which he or she has paid and for which exemption is
13 granted under this Section, if application for such
14 reimbursement is made within 2 months following the school
15 term for which the charges were paid. The holder of a
16 scholarship shall be subject to all examinations, rules and
17 requirements of the university or community college in which
18 he or she is enrolled except as herein directed. This
19 Section does not prohibit the Board of Trustees of the
20 University of Illinois, the Board of Trustees of Southern
21 Illinois University, the Board of Trustees of Chicago State
22 University, the Board of Trustees of Eastern Illinois
23 University, the Board of Trustees of Governors State
24 University, the Board of Trustees of Illinois State
25 University, the Board of Trustees of Northeastern Illinois
26 University, the Board of Trustees of Northern Illinois
27 University, and the Board of Trustees of Western Illinois
28 University for the institutions under their respective
29 jurisdictions from granting other scholarships.
30 (b) Any student enrolled in a university to which he or
31 she is holding a scholarship issued under Section 27-100 who
32 satisfies the president of the university or someone
33 designated by the president that the student requires leave
34 of absence for the purpose of earning funds to defray his or
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1 her expenses while in attendance or on account of illness or
2 military service may be granted such leave and allowed a
3 period of not to exceed 6 years in which to complete his or
4 her course at the university. Time spent in the armed forces
5 shall not be part of the 6 years.
6 Section 27-130. Special education grants.
7 (a) Special education grants shall be awarded by the
8 Authority to (i) teachers under contract who are teaching
9 special education courses in a school district within an area
10 designated as a poverty area by the Office of Economic
11 Opportunity, but who are not certified to teach special
12 education programs pursuant to Section 14-9.01 of the School
13 Code and (ii) teachers certified pursuant to Section 21-1 of
14 the School Code, but who are not certified pursuant to
15 Section 14-9.01 of that Code. The amount of any grant
16 awarded a participating teacher under this Section shall
17 consist of (i) the tuition and other necessary fees required
18 of the teacher by the institution of higher learning at which
19 he or she enrolls under this Section, but limited to the
20 maximum amount to which a student enrolled in that
21 institution would be entitled as a scholarship under Section
22 27-35 of this Act, and (ii) a stipend of $100 for each
23 semester hour or equivalent, not exceeding 21 semester hours,
24 for continuous enrollment, including summer sessions, in one
25 calendar year. For purposes of this Section "tuition and
26 other necessary fees" has the meaning ascribed to that term
27 in Section 27-35 of this Act. Participating teachers shall
28 enroll in an institution of higher learning providing special
29 education programs. Such institutions shall be approved by
30 the Authority, in conjunction with the State Board of
31 Education and the Board of Higher Education.
32 (b) Teachers under contract who participate in this
33 program shall be required to contract with the Authority to
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1 teach a special education program for 2 years in a school
2 district within an area designated as a poverty area by the
3 Office of Economic Opportunity. Such commitment shall begin
4 at the completion of the training program of the
5 participating teacher and shall be completed within 3 years
6 unless extended by the Authority. In addition, the
7 participating teacher shall be required to sign a note
8 payable to the Authority, for the full amount of benefits
9 awarded to that teacher under this Section, with interest as
10 provided herein, subject to cancellation as provided in this
11 Section. Completion of one year of such commitment shall
12 operate to cancel 50% of the amount of benefits provided a
13 participating teacher. The failure of a participating
14 teacher to complete all or part of such commitment shall
15 obligate the participant to proportionately repay the amount
16 of benefits provided, plus 5% interest on that amount.
17 Participating teachers who are not under contract shall be
18 subject to those obligations, except that such teachers shall
19 be required to teach in a special education program for such
20 2 year period in a school district within an area designated
21 as a poverty area by the Office of Economic Opportunity.
22 (c) If a participating teacher fails to cancel his or
23 her commitment as provided in this Section, the Authority
24 shall cause an appropriate action to be commenced on the note
25 signed by that teacher, except where the failure to cancel
26 the commitment was occasioned by the death or total and
27 permanent disability of that teacher.
28 (d) This Section is substantially the same as Section
29 30-14.3 of the School Code, which Section is repealed by this
30 amendatory Act of 1993, and shall be construed as a
31 continuation of the special education grant program
32 established by that prior law and not as a new or different
33 special education grant program. The State Board of
34 Education shall transfer to the Authority, as the successor
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1 to the State Board of Education for all purposes of
2 administering and implementing the provisions of this
3 Section, all books, accounts, records, papers, documents,
4 contracts, agreements, and pending business in any way
5 relating to the special education grant program continued
6 under this Section; and all grants at any time made under
7 that program by, and all applications for any such grants at
8 any time made to, the State Board of Education shall be
9 unaffected by the transfer to the Authority of all
10 responsibility for the administration and implementation of
11 the special education grant program continued under this
12 Section. The State Board of Education shall furnish to the
13 Authority such other information as the Authority may request
14 to assist it in administering this Section.
15 (e) As used in this Section the term "special education
16 program" means a program provided for children who have such
17 disabilities as are set forth in Sections 14-1.02 through
18 14-1.07 of the School Code.
19 Section 27-135. Teacher training full-time undergraduate
20 scholarships.
21 (a) Five hundred new scholarships shall be provided each
22 year for qualified high school students or high school
23 graduates who desire to pursue full-time undergraduate
24 studies in teacher education at public or private
25 universities or colleges and community colleges in this
26 State. The Authority, in accordance with rules and
27 regulations promulgated for this program, shall provide
28 funding and shall designate each year's new recipients from
29 among those applicants who qualify for consideration by
30 showing:
31 (1) that he or she is a resident of this State and
32 a citizen or a lawful permanent resident alien of the
33 United States;
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1 (2) that he or she has successfully completed the
2 program of instruction at an approved high school or is a
3 student in good standing at such a school and is engaged
4 in a program that will be completed by the end of the
5 academic year, and in either event that his or her
6 cumulative grade average was or is in the upper 1/4 of
7 the high school class;
8 (3) that he or she has superior capacity to profit
9 by a higher education; and
10 (4) that he or she agrees to teach in Illinois
11 schools in accordance with subsection (b).
12 No rule or regulation promulgated by the State Board of
13 Education prior to the effective date of this amendatory Act
14 of 1993 pursuant to the exercise of any right, power, duty,
15 responsibility or matter of pending business transferred from
16 the State Board of Education to the Authority under this
17 Section shall be affected thereby, and all such rules and
18 regulations shall become the rules and regulations of the
19 Authority until modified or changed by the Authority in
20 accordance with law. If in any year the number of qualified
21 applicants exceeds the number of scholarships to be awarded,
22 the Authority shall give priority in awarding scholarships to
23 students in financial need. The Authority shall consider
24 factors such as the applicant's family income, the size of
25 the applicant's family and the number of other children in
26 the applicant's family attending college in determining the
27 financial need of the individual. Unless otherwise
28 indicated, these scholarships shall be good for a period of
29 up to 4 years while the recipient is enrolled for residence
30 credit at a public or private university or college or at a
31 community college. The scholarship shall cover tuition, fees
32 and a stipend of $1,500 per year. For purposes of
33 calculating scholarship awards for recipients attending
34 private universities or colleges, tuition and fees for
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1 students at private colleges and universities shall not
2 exceed the average tuition and fees for students at 4-year
3 public colleges and universities for the academic year in
4 which the scholarship is made.
5 (b) Upon graduation from or termination of enrollment in
6 a teacher education program, any person who accepted a
7 scholarship under the undergraduate scholarship program
8 continued by this Section, including persons whose
9 graduation or termination of enrollment occurred prior to the
10 effective date of this amendatory Act of 1993, shall teach in
11 any school in this State for at least 4 of the 7 years
12 immediately following his or her graduation or termination.
13 If the recipient spends up to 4 years in military service
14 before or after he or she graduates, the period of military
15 service shall be excluded from the computation of that 7 year
16 period. A recipient who is enrolled full-time in an academic
17 program leading to a graduate degree in education shall have
18 the period of graduate study excluded from the computation of
19 that 7 year period. Any person who fails to fulfill the
20 teaching requirement shall pay to the Authority an amount
21 equal to one-fourth of the scholarship received for each
22 unfulfilled year of the 4-year teaching requirement, together
23 with interest at 8% per year on that amount. However, this
24 obligation to repay does not apply when the failure to
25 fulfill the teaching requirement results from involuntarily
26 leaving the profession due to a decrease in the number of
27 teachers employed by the school board or a discontinuation of
28 a type of teaching service under Section 24-12 of the School
29 Code or from the death or adjudication as incompetent of the
30 person holding the scholarship. No claim for repayment may
31 be filed against the estate of such a decedent or
32 incompetent. Each person applying for such a scholarship
33 shall be provided with a copy of this subsection at the time
34 he or she applies for the benefits of such scholarship.
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1 (c) This Section is substantially the same as Sections
2 30-14.5 and 30-14.6 of the School Code, which are repealed by
3 this amendatory Act of 1993, and shall be construed as a
4 continuation of the teacher training undergraduate
5 scholarship program established by that prior law, and not as
6 a new or different teacher training undergraduate scholarship
7 program. The State Board of Education shall transfer to the
8 Authority, as the successor to the State Board of Education
9 for all purposes of administering and implementing the
10 provisions of this Section, all books, accounts, records,
11 papers, documents, contracts, agreements, and pending
12 business in any way relating to the teacher training
13 undergraduate scholarship program continued under this
14 Section, and all scholarships at any time awarded under that
15 program by, and all applications for any such scholarship at
16 any time made to, the State Board of Education shall be
17 unaffected by the transfer to the Authority of all
18 responsibility for the administration and implementation of
19 the teacher training undergraduate scholarship program
20 continued under this Section. The State Board of Education
21 shall furnish to the Authority such other information as the
22 Authority may request to assist it in administering this
23 Section.
24 Section 27-140. Consolidation of scholarship, fellowship
25 and traineeship programs. All scholarship, fellowship or
26 traineeship programs administered by the Authority under the
27 provisions of Sections 27-90, 27-95, 27-100, 27-105, 27-110,
28 27-115, 27-120, 27-130, and 27-135 involving financial awards
29 may be consolidated into one program whereby awards are made
30 in the areas of outstanding students, minorities and shortage
31 areas. When sufficient funds are not available to award all
32 applicants, preference shall be given based upon financial
33 need. Awards made under the provisions of this Section shall
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1 be contingent upon a commitment to teach in the Illinois
2 public schools in the area of the award unless the recipient
3 elects to repay the amount of the award in lieu of teaching.
4 The Authority shall adopt rules for the implementation and
5 administration of this Section; provided that no rule or
6 regulation promulgated by the State Board of Education prior
7 to the effective date of this amendatory Act of 1993 pursuant
8 to the exercise of any right, power, duty, responsibility or
9 matter of pending business transferred from the State Board
10 of Education to the Authority under this Section shall be
11 affected thereby, and all such rules and regulations shall
12 become the rules and regulations of the Authority until
13 modified or changed by the Authority in accordance with law.
14 This Section is substantially the same as Section 30-14.7 of
15 the School Code, which Section is repealed by this amendatory
16 Act of 1993, and shall be construed as a continuation of that
17 prior law and not as a new or different law. The State Board
18 of Education shall transfer to the Authority, as the
19 successor to the State Board of Education for all purposes of
20 administering and implementing the provisions of this
21 Section, all books, accounts, records, papers, documents,
22 contracts, agreements, and pending business in any way
23 relating to the consolidation of scholarship, fellowship, and
24 traineeship programs under this Section; and all scholarship,
25 fellowship or traineeship grants awarded by the State Board
26 of Education prior to the effective date of this amendatory
27 Act of 1993 under the consolidated financial awards program
28 continued in this Section shall be unaffected by the transfer
29 to the Authority of all responsibility for administering and
30 implementing the provisions of this Section. The State Board
31 of Education shall furnish to the Authority such other
32 information as the Authority may request to assist it in
33 administering this Section.
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1 Section 27-145. Arthur F. Quern Information Technology
2 Grant Program.
3 (a) In order to strengthen the workforce in this State
4 by increasing the supply of skilled information technology
5 workers in this State, the Authority shall, each year and
6 subject to available appropriations, receive and consider
7 applications for grant assistance under this Section to
8 provide need-based grants for retraining in information
9 technology fields, to be named Arthur F. Quern Information
10 Technology Grants, to qualified students pursuing additional
11 certification or a degree in an information technology field
12 at a degree-granting institution. An applicant is eligible
13 for a grant under this Section if the Authority finds that
14 the applicant:
15 (1) is a United States citizen or a permanent
16 resident of the United States;
17 (2) is a resident of this State;
18 (3) has made a timely application to the Authority
19 for an information technology grant; and
20 (4) enrolls or is enrolled in an eligible program
21 of undergraduate information technology related study, as
22 determined by the Board of Higher Education, at a
23 qualified institution of higher learning in this State.
24 (b) Recipients shall be selected from among applicants
25 who qualify pursuant to subsection (a) of this Section based
26 on financial need, as determined by the Authority.
27 Preference may be given to individuals who have received a
28 baccalaureate degree and who seek information technology
29 training or certification. Preference may also be given to
30 previous recipients of assistance under this Section.
31 (c) A recipient must maintain satisfactory academic
32 progress, as determined by the institution of higher learning
33 at which he or she is enrolled.
34 (d) The Authority shall receive initial and subsequent
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1 State appropriations for distribution to participating
2 institutions on behalf of information technology grant
3 recipients under this Section. The Authority shall also
4 receive appropriate annual State appropriations for program
5 administration under this Section.
6 (e) The Authority shall administer the information
7 technology grant program established by this Section and
8 shall make all necessary and proper rules not inconsistent
9 with this Section for the program's effective implementation.
10 (f) Each information technology grant is an award of up
11 to $2,500, payable to a qualified institution on behalf of
12 the award recipient and applicable towards tuition and fees
13 and other educational costs, as determined by the Authority.
14 A qualified student may be eligible to receive an information
15 technology grant for up to 2 years.
16 (g) The total amount of grant assistance awarded by the
17 Authority under this Section to an individual in any given
18 fiscal year, when added to other financial assistance awarded
19 to that individual for that year, shall not exceed the cost
20 of attendance at the institution of higher learning at which
21 the student is enrolled. If a recipient does not qualify for
22 the maximum $2,500 grant amount during the academic year, the
23 excess award amount shall not be carried forward to the award
24 amount for the following academic year for which the
25 recipient is eligible for a grant award under this Section.
26 (h) All applications for grant assistance to be awarded
27 under this Section shall be made to the Authority in a
28 format set forth by the Authority. The format of the
29 application and the information required to be set forth in
30 the application shall be determined by the Authority.
31 (i) Subject to a separate appropriation made for such
32 purposes, payment of a grant awarded under this Section shall
33 be determined by the Authority. All grant funds distributed
34 in accordance with this Section shall be paid to the
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1 institution on behalf of the recipients.
2 Section 27-150. Administration of federal scholarship
3 programs. There are hereby transferred to the Authority
4 from the State Board of Education all authority and
5 responsibility previously exercised by the State Board of
6 Education with respect to the administration within this
7 State of the Christa McAuliffe and Robert C. Byrd federal
8 scholarship programs, and the Authority hereafter shall
9 administer on behalf of the State of Illinois and in
10 accordance with all applicable rules and regulations the
11 conduct and operation of the Christa McAuliffe and Robert C.
12 Byrd federal scholarship programs within this State. The
13 State Board of Education shall transfer to the Authority, as
14 the successor to the State Board of Education for all
15 purposes of administering the Christa McAuliffe and Robert C.
16 Byrd federal scholarship programs, all books, accounts,
17 records, papers, documents, contracts, agreements, and
18 pending business in the possession or under the control of
19 the State Board of Education and relating to its
20 administration of those programs in this State. All pending
21 applications made prior to the effective date of this
22 amendatory Act of 1993 for scholarship awards under those
23 programs and all scholarships awarded under those programs
24 prior to the effective date of this amendatory Act of 1993
25 shall be unaffected by the transfer to the Authority of all
26 responsibilities and authority formerly exercised by the
27 State Board of Education with respect to those programs. The
28 State Board of Education shall furnish to the Authority such
29 other information as the Authority may request to assist it
30 in administering this Section.
31 Section 27-155. Administration of scholarship and grant
32 programs.
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1 (a) An applicant to whom the Authority has awarded a
2 scholarship or grant under this Act may apply for enrollment
3 as a student in any qualified institution of higher learning.
4 The institution is not required to accept the applicant for
5 enrollment, but is free to exact compliance with its own
6 admissions requirements, standards, and policies. The
7 institution may receive the payments of tuition and other
8 necessary fees provided by the scholarship or grant, for
9 credit against the student's obligation for such tuition and
10 fees, and for no other purpose, and shall be contractually
11 obligated:
12 (1) to provide facilities and instruction to the
13 student on the same terms as to other students generally;
14 (2) to provide the notices and information
15 described in this Act; and to maintain records and
16 documents which demonstrate the eligibility of the
17 students for whom scholarships and grants are claimed.
18 (b) If, in the course of any academic period, any
19 student enrolled in any institution pursuant to a scholarship
20 or grant awarded under this Act for any reason ceases to be a
21 student in good standing, the institution shall promptly give
22 written notice to the Authority concerning that change of
23 status and the reason therefor. For purposes of this
24 Section, a student does not cease to be a student in good
25 standing merely because he or she is not classified as a
26 full-time student. In any case, a student must be enrolled
27 for at least 6 semester or 6 quarter hours for the term to
28 maintain any eligibility for grant benefits under subsection
29 (c) of Section 27-35.
30 (c) A student to whom a renewal scholarship or grant has
31 been awarded may either re-enroll in the institution which he
32 or she attended during the preceding year, or enroll in any
33 other qualified institution of higher learning; and in either
34 event, the institution accepting the student for enrollment
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1 or re-enrollment shall notify the Authority of that
2 acceptance and may receive payments and shall be
3 contractually obligated as provided with respect to a
4 first-year scholarship or grant.
5 (d) The Authority shall administer the scholarship and
6 grant accounts and related records of each student who is
7 attending an institution of higher learning under financial
8 assistance awarded pursuant to this Act, and at each proper
9 time shall certify to the State Comptroller, in the manner
10 prescribed by law, the current payment to be made to the
11 institution on account of such financial assistance, in
12 accordance with an appropriate certificate from the
13 institution. The Authority may require the participating
14 institution of higher learning to perform specific
15 eligibility evaluation procedures as a condition of
16 participation.
17 (e) The Authority shall conduct on-site audits of
18 educational institutions participating in Authority
19 administered programs. When institutions have claimed and
20 received funds on behalf of ineligible recipients, the
21 Authority may adjust subsequent institutional payments to
22 recover those funds.
23 (f) The Authority shall, upon the request of any
24 institution which received payment for scholarship and grant
25 awards for each of the last 5 years, certify to the
26 Comptroller an advance payment for the current term to be
27 made to the institution on account of such financial
28 assistance in an amount not to exceed 75% of announced awards
29 for the institution for such financial assistance for the
30 current term, adjusted for attrition over the last 5 years.
31 For the purposes of this Section, "attrition" is the number
32 of announced award winners enrolled on the 10th class day as
33 a percentage of the total announced awards. The request for
34 an advance payment for the current term shall not be
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1 submitted until 10 class days after the last day for
2 registration for that term. Upon appropriate certification
3 from the institution presented for each payment period, after
4 the standard tuition and mandatory fees have been established
5 for all students for the term of payment and the award
6 recipient has enrolled, the Authority shall certify to the
7 State Comptroller the balance of the current payment to be
8 made to the institution on account of such financial
9 assistance. If an advance payment received by an institution
10 exceeds the payment to which that institution is entitled,
11 the Authority shall reduce subsequent payments to that
12 institution for later terms within the same academic year as
13 the overpayment by an amount equal to the overpayment; if the
14 reduction cannot be made, the institution shall refund the
15 overpayment to the Authority. The Authority may deny or
16 reduce the advance payment provided to any institution under
17 this Section if it has reason to believe that the advance
18 payment for the current term may exceed the full payment the
19 institution is entitled to receive for such assistance for
20 that term.
21 Section 27-160. Authority Higher EdNet Fund.
22 (a) The Authority Higher EdNet Fund is created as a
23 special fund in the State Treasury. All fee revenues
24 received by the Authority in exchange for Higher EdNet
25 services are to be deposited into the Authority Higher EdNet
26 Fund.
27 (b) Moneys in the Fund may be used by the Authority,
28 subject to appropriation, for support of the Authority's
29 Higher EdNet and student assistance outreach activities.
30 Section 27-165. College savings programs.
31 (a) Purpose. The General Assembly finds and hereby
32 declares that for the benefit of the people of the State of
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1 Illinois, the conduct and increase of their commerce, the
2 protection and enhancement of their welfare, the development
3 of continued prosperity and the improvement of their health
4 and living conditions, it is essential that all citizens with
5 the intellectual ability and motivation be able to obtain a
6 higher education. The General Assembly further finds that
7 rising tuition costs, increasingly restrictive eligibility
8 criteria for existing federal and State student aid programs
9 and other trends in higher education finance have impeded
10 access to a higher education for many middle-income families;
11 and that to remedy these concerns, it is of utmost importance
12 that families be provided with investment alternatives to
13 enhance their financial access to institutions of higher
14 education. It is the intent of this Section to establish
15 College Savings Programs appropriate for families from
16 various income groups, to encourage Illinois families to save
17 and invest in anticipation of their children's education, and
18 to encourage enrollment in institutions of higher education,
19 all in execution of the public policy set forth above and
20 elsewhere in this Act.
21 (b) The Authority is authorized to develop and provide a
22 program of college savings instruments to Illinois citizens.
23 The program shall be structured to encourage parents to plan
24 ahead for the college education of their children and to
25 permit the long-term accumulation of savings which can be
26 used to finance the family's share of the cost of a higher
27 education. Income, up to $2,000 annually per account, which
28 is derived by individuals from investments made in accordance
29 with College Savings Programs established under this Section
30 shall be free from all taxation by the State and its
31 political subdivisions, except for estate, transfer, and
32 inheritance taxes.
33 (c) The Authority is authorized to contract with private
34 financial institutions and other businesses, individuals, and
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1 other appropriate parties to establish and operate the
2 College Savings Programs. The Authority may negotiate
3 contracts with private financial and investment companies,
4 establish College Savings Programs, and monitor the vendors
5 administering the programs in whichever manner the Authority
6 determines is best suited to accomplish the purposes of this
7 Section. The Auditor General shall periodically review the
8 operation of the College Savings Programs and shall advise
9 the Authority and the General Assembly of his findings.
10 (d) In determining the type of instruments to be
11 offered, the Authority shall consult with, and receive the
12 assistance of, the Illinois Board of Higher Education, the
13 Bureau of the Budget, the State Board of Investments, the
14 Governor, and other appropriate State agencies and private
15 parties.
16 (e) The Authority shall market and promote the College
17 Savings Programs to the citizens of Illinois.
18 (f) The Authority shall assist the State Comptroller and
19 State Treasurer in establishing a payroll deduction plan
20 through which State employees may participate in the College
21 Savings Programs. The Department of Labor, Department of
22 Employment Security, Department of Revenue, and other
23 appropriate agencies shall assist the Authority in educating
24 Illinois employers about the College Savings Programs, and
25 shall assist the Authority in securing employers'
26 participation in a payroll deduction plan and other
27 initiatives which maximize participation in the College
28 Savings Programs.
29 (g) The Authority shall examine means by which the
30 State, through a series of matching contributions or other
31 incentives, may most effectively encourage Illinois families
32 to participate in the College Savings Programs. The
33 Authority shall report its conclusions and recommendations to
34 the Governor and General Assembly no later than February 15,
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1 2003.
2 (h) The College Savings Programs established pursuant to
3 this Section shall not be subject to the provisions of the
4 Illinois Administrative Procedure Act. The Authority shall
5 provide that appropriate disclosures are provided to all
6 citizens who participate in the College Savings Programs.
7 Section 27-170. Additional assistance; Loans; Powers and
8 Duties. The Authority shall have the following powers in
9 furtherance of its programs:
10 (a) To guarantee the loan of money in amounts not to
11 exceed the yearly or aggregate totals authorized by the
12 Federal Higher Education Act of 1965. The Authority may
13 guarantee loans for qualified borrowers for use at any
14 approved institution of higher learning provided the borrower
15 and institution are eligible for the loan under the Higher
16 Education Act of 1965. All loans shall be guaranteed and
17 bear interest as prescribed by the Higher Education Act of
18 1965, or by any other Federal statute hereafter enacted
19 providing for Federal payment of interest or other subsidy on
20 behalf of borrowers. Loans made by eligible lenders in
21 accordance with this Act shall be guaranteed whether made
22 from funds fully owned by the lender or from funds held by
23 the lender in a trust or similar capacity and available for
24 such loans.
25 (b) To originate, guarantee, acquire, and service loans
26 and to perform such other acts as may be necessary or
27 appropriate in connection with the loans.
28 (c) To require that any educational loan made under this
29 Act shall be repaid and be secured in such manner and at such
30 time as the Authority prescribes, including perfecting a
31 security interest therein in such manner as the Authority
32 shall determine.
33 (d) To enter into such contracts and guarantee
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1 agreements with eligible lenders, eligible education
2 institutions, individuals, corporations, and loan servicing
3 organizations and with any other governmental agency and with
4 any agency of the United States, including agreements for
5 Federal reinsurance of losses resulting from the death,
6 default, or total and permanent disability of borrowers, as
7 are necessary or incidental to the performance of its duties
8 and to carry out its functions under this Act, and to make
9 such payments as may be specified in such contracts and
10 agreements from such sources as set forth therein, all
11 notwithstanding any other provisions of this Act or any other
12 law.
13 (e) To participate in any Federal government program for
14 guaranteed loans or subsidies to borrowers and to receive,
15 hold, and disburse funds made available for the purpose or
16 purposes for which they are made available.
17 (f) To pay to eligible lenders an administrative cost
18 allowance in such amount, at such times, and in such manner
19 as may be prescribed by the Authority.
20 (g) To pay the Federal government a portion of those
21 funds obtained by the Authority from collection and
22 recoupment of losses on defaulted loans in such amounts and
23 in such manner as provided by any Federal reinsurance
24 agreement.
25 (h) To charge and collect premiums for insurance on
26 loans and other appropriate charges and pay such insurance
27 premiums or a portion thereof and other charges as are
28 appropriate.
29 (i) Except with respect to obligations issued prior to
30 July 14, 1994, to exercise all functions, rights, powers,
31 duties, and responsibilities now or hereafter authorized to
32 be exercised by any other State agency pursuant to the Higher
33 Education Loan Act of this State. The authorization to any
34 other State agency to exercise those functions, rights,
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1 powers, duties, and responsibilities is not affected by this
2 authorization to the Authority.
3 Section 27-175. Coordination of reviews. In accordance
4 with the Federal Higher Education Act of 1965, as amended,
5 the Authority is designated as the Illinois agency ultimately
6 responsible for the coordination of reviews of Illinois
7 postsecondary institutions in cooperation with the Board of
8 Higher Education, State Board of Education, Department of
9 Professional Regulation, Secretary of State, Department of
10 Transportation and other appropriate State agencies. As
11 such, the Authority is granted the powers and duties
12 necessary for the proper implementation and execution of
13 these functions, including rulemaking. The eligibility of
14 schools to operate in Illinois shall be determined in
15 accordance with audit and review information provided by the
16 Authority to the appropriate State agencies. These
17 eligibility audits shall apply rules that are consistent with
18 those of the Federal Higher Education Act concerning
19 institutional eligibility and program integrity. The
20 Authority is authorized to provide or coordinate with the
21 Board of Higher Education, State Board of Education, the
22 Department of Professional Regulation, Secretary of State,
23 Department of Transportation and other involved agencies,
24 administration of institutional reviews for all institutions
25 participating in the Federal Title IV Financial Aid programs:
26 1. at least once every 3 years; 2. at least once a year when
27 it appears a school is out of, or will soon be out of,
28 compliance with stated eligibility standards; and 3. within 2
29 months of, or as soon as practicable following, a request
30 from a State or Federal agency citing questionable activities
31 or changes in the school's financial, operations or
32 management status or practices. Federal funds provided
33 through the United States Department of Education are to be
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1 used in enabling the Authority and other appropriate State
2 agencies to conduct the oversight activities prescribed in
3 this Section.
4 Section 27-180. State income tax refund and other
5 payment intercept. The Authority may provide by rule for
6 certification to the Comptroller:
7 (a) of delinquent or defaulted amounts due and owning
8 from a borrower on any loan guaranteed by the Authority under
9 this Act or on any "eligible loan" as that term is defined
10 under the Educational Loan Purchase Program Law; and
11 (b) of any amounts recoverable under Article 30 in a
12 civil action from a person who received a scholarship, grant,
13 monetary award, or guaranteed loan. The purpose of
14 certification shall be to intercept State income tax refunds
15 and other payments due such borrowers and persons in order to
16 satisfy, in whole or in part: (i) delinquent or defaulted
17 amounts due and owing from any such borrower on any such
18 guaranteed or eligible loan; and (ii) amounts recoverable
19 from a person against whom a civil action will lie under the
20 provisions of Article 30. The rule shall provide for notice
21 to any such borrower or person affected, and any final
22 administrative decision rendered by the Authority with
23 respect to any certification made pursuant to this Section
24 shall be reviewed only under and in accordance with the
25 Administrative Review Law.
26 Section 27-185. Notice to Secretary of State. The
27 Authority shall establish by rule mutually agreed procedures
28 to furnish the Secretary of State annually or at other
29 mutually agreed periodic intervals with the names and social
30 security numbers of natural persons who the Authority
31 determines are registered with the Secretary of State as
32 dealers, salespersons or investment advisers under the
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1 Illinois Securities Law of 1953 and have defaulted on an
2 educational loan guaranteed by the Authority.
3 Section 27-190. Capacity of minors. Any person
4 otherwise qualifying for a loan guaranteed or originated by
5 the Authority shall not be disqualified by reason of being
6 under the age of 21 years; and each such person shall have
7 the rights, powers, privileges and obligations of a person
8 of full age with respect thereto.
9 Section 27-195. Authority originated loans.
10 (a) To further the purposes of this Act, the Authority
11 is authorized to originate loans for educational purposes, to
12 students enrolled at higher education institutions. The
13 Authority may establish borrower eligibility requirements for
14 Authority originated loans. Loans originated by the
15 Authority may be, but are not required to be, guaranteed by
16 the Authority or any other entity.
17 (b) The Authority may make loans with the proceeds of
18 bonds issued pursuant to this Act or with such other funds as
19 may be available to the Authority.
20 (c) The administrative expenses of the Authority's
21 direct lending programs for students shall be supported by
22 the General Revenue Fund through an appropriation by the
23 General Assembly for such purposes and may also be paid with
24 such other funds as may be available to the Authority.
25 Section 27-200. Procedure on default. Upon default by
26 the borrower on any loan guaranteed under this Act, upon the
27 death of the borrower, or upon report from the lender that
28 the borrower has become totally and permanently disabled, as
29 determined in accordance with the Higher Education Act of
30 1965, the lender shall promptly notify the Authority, and the
31 Authority shall pay to the lender the amount of loss
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1 sustained by the lender upon that loan as soon as that amount
2 has been determined. The amount of loss on any loan shall be
3 determined in accordance with the definitions, rules, and
4 regulations of the Authority, and shall not exceed (1) the
5 unpaid balance of the principal amount; (2) the unpaid
6 accrued interest; and (3) the unpaid late charges. Upon
7 payment by the Authority of the guaranteed portion of the
8 loss, the Authority shall be subrogated to the rights of the
9 holder of the obligation upon the insured loan and shall be
10 entitled to an assignment of the note or other evidence of
11 the guaranteed loan by the lender. The Authority shall file
12 any and all lawsuits on delinquent and defaulted student
13 loans in the County of Cook where venue shall be deemed to be
14 proper. A defendant may request a change of venue to the
15 county where he resides, and the court has the authority to
16 grant the change. Any defendant, within 30 days of service
17 of summons, may file a Written request by mail with the
18 Authority to change venue. Upon receipt, the Authority shall
19 move the court for the change of venue. The Authority shall
20 upon the filing and completion of the requirements for the
21 "Adjustment of Debts of an Individual with Regular Income",
22 pursuant to Title 11, Chapter l3 of the United States Code,
23 proceed to collect the outstanding balance of the loan
24 guaranteed under this Act. Educational loans guaranteed
25 under this Act shall not be discharged by the filing of the
26 "Adjustment of Debts of an Individual with Regular Income",
27 unless the loan first became due more than 5 years, exclusive
28 of any applicable suspension period, prior to the filing of
29 the petition; or unless excepting the debt from discharge
30 will impose an undue hardship on the debtor and the debtor's
31 dependents. The Authority shall proceed to recover
32 educational loans upon the filing of a petition under
33 "Individual Liquidation", pursuant to Title 11, Chapter 7 of
34 the United States Code, unless the loan first became due more
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1 than 5 years, exclusive of any applicable suspension period,
2 prior to the filing of the petition; or unless excepting the
3 debt from discharge will impose an undue hardship on the
4 debtor and the debtor's dependents. Nothing in this Section
5 shall be construed to preclude any forbearance for the
6 benefit of the borrower which may be agreed upon by the party
7 to the guaranteed loan and approved by the Authority, to
8 preclude forbearance by the Authority in the enforcement of
9 the guaranteed obligation after payment on that guarantee, or
10 to require collection of the amount of any loan by the lender
11 or by the Authority from the estate of a deceased borrower or
12 from a borrower found by the lender to have become
13 permanently and totally disabled. Nothing in this Section
14 shall be construed to excuse the holder of a loan from
15 exercising reasonable care and diligence in the making and
16 collection of loans under this Act. If the Authority after
17 reasonable notice and opportunity for hearing to a lender
18 finds that it has substantially failed to exercise such care
19 and diligence, the Authority shall disqualify that lender for
20 the guarantee of further loans until the Authority is
21 satisfied that the lender's failure has ceased and finds that
22 there is reasonable assurance that the lender will in the
23 future exercise necessary care and diligence or comply with
24 the rules and regulations of the Authority.
25 Section 27-205. Disposition of moneys received by
26 Authority; Appropriations; Insufficient appropriations.
27 (a) All moneys received by the Authority in furtherance
28 of its guarantee loan program for guaranteeing loans for
29 attendance at institutions of higher education shall be paid
30 into the account established by the Comptroller for that
31 purpose.
32 (b) Moneys received by the Authority from the United
33 States Department of Education by way of any agreement
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1 between the Authority and the federal government for advance
2 payments, reinsurance reimbursements, or reimbursement of
3 allowable administrative costs shall be available to the
4 Authority as authorized by federal law and regulation subject
5 to the appropriation of the General Assembly. Moneys not so
6 employed in a fiscal year may be retained by the Authority in
7 the account established for that purpose beyond the close of
8 a fiscal year or may be returned to the federal government as
9 required by federal law or regulation.
10 (c) Moneys received by the Authority from collection and
11 recoupment of losses paid by the Authority under its guaranty
12 shall be returned to the Federal government as required by
13 Federal law or regulation. Where a portion of those funds
14 represents collections on loans on which the Authority was
15 reimbursed by the federal government under a reinsurance
16 agreement for less than 100% of the amount of the Authority's
17 guaranty, an amount equal to the pro-rata share of the non-
18 reinsured portion of those collections shall be paid into the
19 General Revenue Fund at the close of each fiscal year.
20 Moneys received by the Authority from collection and
21 recoupment of losses paid by the Authority under its guaranty
22 which are not payable to the General Revenue Fund but which
23 under Federal law are available to the Authority for payment
24 of allowable administrative expenses shall be available to
25 the Authority as authorized by federal law and regulation
26 subject to the appropriation of the General Assembly.
27 (d) The Governor shall include, in each annual State
28 budget, a proposal for an appropriation in such amount as
29 shall be necessary and sufficient for the period covered by
30 the budget for the purpose of paying the obligations of the
31 Authority for the guaranteed portion of losses on insured
32 loans resulting from the death, default, or total and
33 permanent disability of student borrowers. If for any reason
34 the General Assembly fails to make appropriations of amounts
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1 sufficient for the State to pay those obligations, this
2 Section shall constitute an irrevocable and continuing
3 appropriation of all amounts necessary for that purpose, and
4 the irrevocable and continuing authority for and direction to
5 the Comptroller and to the Treasurer of the State to make the
6 necessary transfers out of and disbursements from the
7 revenues and funds of the State for that purpose, and the
8 full faith and credit of the State of Illinois is pledged for
9 the punctual payment of such obligations.
10 Section 27-210. Federal Student Loan Fund; Student Loan
11 Operating Fund; Federal Reserve Recall Fund. The Authority
12 shall create the Federal Student Loan Fund, the Student Loan
13 Operating Fund, and the Federal Reserve Recall Fund. At the
14 request of the Authority's Executive Director, the
15 Comptroller shall transfer funds, as necessary, from the
16 Student Assistance Authority Student Loan Fund into the
17 Federal Student Loan Fund, the Student Loan Operating Fund,
18 and the Federal Reserve Recall Fund. On or before August 31,
19 2000, the Authority's Executive Director shall request the
20 Comptroller to transfer all funds from the Student Assistance
21 Authority Student Loan Fund into any of the following funds:
22 the Federal Student Loan Fund, the Student Loan Operating
23 Fund, or the Federal Reserve Recall Fund. On September 1,
24 2000, the Student Assistance Authority Student Loan Fund is
25 abolished. Any future liabilities of this abolished fund
26 shall be assignable to the appropriate fund created as one of
27 its successors.
28 Section 27-215. Penalty for fraudulent information. Any
29 person who by means of any false statement, willful
30 misrepresentation, or through other fraudulent device obtains
31 or attempts to obtain or aids or abets any person in
32 obtaining a scholarship, grant, monetary award, or guaranteed
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1 loan under this Act or Section 30-14.2 of the School Code to
2 which the person is not entitled shall be guilty of a Class B
3 misdemeanor. Any scholarship, grant, monetary award, or
4 guaranteed loan obtained by such a person by such means shall
5 be recoverable in a civil action, if necessary, from the
6 person who received the scholarship, grant, monetary award,
7 or guaranteed loan.
8 Section 27-220. Education Loan Purchases. The General
9 Assembly finds and declares that (1) the provision of an
10 education for all residents of this State who desire an
11 education and are properly qualified therefor is important to
12 the welfare and security of this State and Nation and,
13 consequently, is an important public purpose, and (2) many
14 qualified students are deterred by financial considerations
15 from completing their education, with a consequent
16 irreparable loss to the State and Nation of talents vital to
17 welfare and security. Improved access to loans will enable
18 those residents to attend the institutions of their choice.
19 Establishment of a secondary market for certain loans will
20 reduce lender administrative costs associated with
21 educational loans, facilitate the early identification and
22 treatment of delinquent loan accounts, and reduce potential
23 student loan default losses so as to improve student access
24 to loans made by commercial lenders.
25 Section 27-225. Powers and duties. The Authority shall
26 have the following powers in furtherance of the programs
27 authorized by this Act:
28 (a) To adopt rules and regulations governing the
29 purchasing, servicing, and selling of eligible loans and any
30 other matters relating to the activities of the guaranteed
31 loan programs.
32 (b) To perform such other acts as may be necessary or
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1 appropriate in connection with the making, purchasing,
2 servicing, and selling of eligible student loans.
3 (c) To make, purchase, service, sell, or otherwise deal
4 in, at prices and on terms and conditions determined by the
5 Authority, eligible student loans, including loans guaranteed
6 by the Authority.
7 (d) The Authority has power, and is authorized from time
8 to time, to issue bonds to make or acquire eligible student
9 loans pursuant to the Act.
10 ARTICLE 30
11 AGRICULTURAL ASSISTANCE
12 Section 30-5. The Authority shall have the following
13 powers: (a) To loan its funds to one or more persons to be
14 used by such persons to pay the costs of acquiring,
15 constructing, reconstructing or improving Agricultural
16 Facilities, soil or water conservation projects or watershed
17 areas, such loans to be on such terms and conditions, and for
18 such period of time, and secured or evidenced by such
19 mortgages, deeds of trust, notes debentures, bonds or other
20 secured or unsecured evidences of indebtedness of such
21 persons as the Board may determine; (b) To loan its funds to
22 any agribusiness which operates or will operate a facility
23 located in Illinois for those purposes permitted by rules and
24 regulations issued pursuant to the Internal Revenue Code of
25 1954, as amended, relating to the use of moneys loaned from
26 the proceeds from the issuance of industrial development
27 revenue bonds; such loans shall be on terms and conditions,
28 and for periods of time, and secured or evidenced by
29 mortgages, deeds of trust, notes, debentures, bonds or other
30 secured or unsecured evidences of indebtedness of such
31 agribusiness as the Board may require; (c) To purchase, or to
32 make commitments to purchase, from lenders notes, debentures,
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1 bonds or other evidences of indebtedness secured by
2 mortgages, deeds of trust, or to the security devices, or
3 unsecured, as the Authority may determine, or portions
4 thereof or participations therein, which notes, bonds, or
5 other evidences of indebtedness shall have been or will be
6 executed by the obligors thereon to obtain funds with which
7 to acquire, by purchase, construction, or otherwise,
8 reconstruct or improve Agricultural Facilities; (d) To
9 contract with lenders or others for the origination of or the
10 servicing of the loans made by the Authority pursuant to
11 paragraph (1) of this Section or represented by the notes,
12 bonds, or other evidences of indebtedness which it has
13 purchased pursuant to paragraph (2) of this Section; provided
14 that such servicing fees shall not exceed one per cent per
15 annum of the principal amount outstanding owed to the
16 Authority; and (e) To enter into a State Guarantee with a
17 lender or a person holding a note and to sell or issue such
18 State Guarantees, bonds or evidences of indebtedness in a
19 primary or a secondary market
20 Section 30-10. (a) The Authority shall establish a Farm
21 Debt Relief Program to help provide eligible Illinois farmers
22 with State assistance in meeting their farming-related debts.
23 (b) To be eligible for the program, a person must (1) be
24 actively engaged in farming in this State, (2) have
25 farming-related debts in an amount equal to at least 55% of
26 the person's total assets, and (3) demonstrate that he can
27 secure credit from a conventional lender for the 1986 crop
28 year.
29 (c) An eligible person may apply to the Authority, in
30 such manner as the Authority may specify, for a one-time farm
31 debt relief payment of up to 2% of the person's outstanding
32 farming-related debt. If the Authority determines that the
33 applicant is eligible for a payment under this Section, it
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1 may then approve a payment to the applicant. Such payment
2 shall consist of a payment made by the Authority directly to
3 one or more of the applicant's farming-related creditors, to
4 be applied to the reduction of the applicant's
5 farming-related debt. The applicant shall be entitled to
6 select the creditor or creditors to receive the payment,
7 unless the applicant is subject to the jurisdiction of a
8 bankruptcy court, in which case the selection of the court
9 shall control.
10 (d) Payments shall be made from the Farm Emergency
11 Assistance Fund, which is hereby established as a special
12 fund in the State Treasury, from funds appropriated to the
13 Authority for that purpose. No grant may exceed the lesser
14 of (1) 2% of the applicant's outstanding farm-related debt,
15 or (2) $2000. Not more than one grant under this Section may
16 be made to any one person, or to any one household, or to any
17 single farming operation.
18 (e) Payments to applicants having farming-related debts
19 in an amount equal to at least 55% of the person's total
20 assets, but less than 70%, shall be repaid by the applicant
21 to the Authority for deposit into the Farm Emergency
22 Assistance Fund within five years from the date the payment
23 was made. Repayment shall be made in equal installments
24 during the five year period with no additional interest
25 charge and may be prepaid in whole or in part at any time.
26 Applicants having farming-related debts in an amount equal to
27 at least 70% of the person's total assets shall not be
28 required to make any repayment. Assets shall include, but
29 not be limited to, the following: cash crops or feed on
30 hand; livestock held for sale; breeding stock; marketable
31 bonds and securities; securities not readily marketable;
32 accounts receivable; notes receivable; cash invested in
33 growing crops; net cash value of life insurance; machinery
34 and equipment; cars and trucks; farm and other real estate
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1 including life estates and personal residence; value of
2 beneficial interests in trusts; government payments or
3 grants; and any other assets. Debts shall include, but not
4 be limited to, the following: accounts payable; notes or
5 other indebtedness owed to any source; taxes; rent; amounts
6 owed on real estate contracts or real estate mortgages;
7 judgments; accrued interest payable; and any other liability.
8 Section 30-15. Interest-buy-back program.
9 (a) The Authority shall establish an interest-buy-back
10 program to subsidize the interest cost on certain loans to
11 Illinois farmers.
12 (b) To be eligible an applicant must (i) be a resident
13 of Illinois; (ii) be a principal operator of a farm or land;
14 (iii) derive at least 50% of annual gross income from
15 farming; and (iv) have a net worth of at least $10,000. The
16 Authority shall establish minimum and maximum financial
17 requirements, maximum payment amounts, starting and ending
18 dates for the program, and other criteria.
19 (c) Lenders may apply on behalf of eligible applicants
20 on forms provided by the Authority. Lenders may submit
21 requests for payment on forms provided by the Authority.
22 Lenders and applicants shall be responsible for any fees or
23 charges the Authority may require.
24 (d) The Authority shall make payments to lenders from
25 available appropriations from the General Revenue Fund.
26 Section 30-20. The Authority may not pass a resolution
27 authorizing the issuance of any notes or bonds in excess of
28 $250,000 for any one agricultural real estate borrower. No
29 proceeds from any bonds issued by the Authority shall be
30 loaned to any natural person who has a net worth in excess of
31 $500,000 for the purchase of new depreciable agricultural
32 property or to any agribusiness that, including all
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1 affiliates and subsidiaries, has more than 100 employees and
2 a gross income exceeding $2,000,000 for the preceding
3 calendar year; provided, however, that the employee size and
4 gross income limitations shall not apply to any loans to
5 agribusinesses for research and development purposes, and
6 provided further that the Authority shall retain the power to
7 waive such limitations for any agribusiness that, at the time
8 of application, does not operate a facility within this
9 State.
10 Section 30-25. Bonded indebtedness limitation. The
11 Authority shall not have outstanding at any one time State
12 Guarantees under Section 30-30 in an aggregate principal
13 amount exceeding $160,000,000. The Authority shall not have
14 outstanding at any one time State Guarantees under Sections
15 30-35, 30-45, and 30-50 in an aggregate principal amount
16 exceeding $75,000,000.
17 Section 30-30. State Guarantees for existing debt.
18 (a) The Authority is authorized to issue State
19 Guarantees for farmers' existing debts held by a lender. For
20 the purposes of this Section, a farmer shall be a resident of
21 Illinois, who is a principal operator of a farm or land, at
22 least 50% of whose annual gross income is derived from
23 farming and whose debt to asset ratio shall not be less than
24 40%, except in those cases where the applicant has previously
25 used the guarantee program there shall be no debt to asset
26 ratio or income restriction. For the purposes of this
27 Section, debt to asset ratio shall mean the current
28 outstanding liabilities of the farmer divided by the current
29 outstanding assets of the farmer. The Authority shall
30 establish the maximum permissible debt to asset ratio based
31 on criteria established by the Authority. Lenders shall apply
32 for the State Guarantees on forms provided by the Authority
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1 and certify that the application and any other documents
2 submitted are true and correct. The lender or borrower, or
3 both in combination, shall pay an administrative fee as
4 determined by the Authority. The applicant shall be
5 responsible for paying any fees or charges involved in
6 recording mortgages, releases, financing statements,
7 insurance for secondary market issues and any other similar
8 fees or charges as the Authority may require. The
9 application shall at a minimum contain the farmer's name,
10 address, present credit and financial information, including
11 cash flow statements, financial statements, balance sheets,
12 and any other information pertinent to the application, and
13 the collateral to be used to secure the State Guarantee. In
14 addition, the lender must agree to bring the farmer's debt to
15 a current status at the time the State Guarantee is provided
16 and must also agree to charge a fixed or adjustable interest
17 rate which the Authority determines to be below the market
18 rate of interest generally available to the borrower. If
19 both the lender and applicant agree, the interest rate on the
20 State Guarantee Loan can be converted to a fixed interest
21 rate at any time during the term of the loan. Any State
22 Guarantees provided under this Section (i) shall not exceed
23 $500,000 per farmer, (ii) shall be set up on a payment
24 schedule not to exceed 30 years, and shall be no longer than
25 30 years in duration, and (iii) shall be subject to an annual
26 review and renewal by the lender and the Authority; provided
27 that only one such State Guarantee shall be outstanding per
28 farmer at any one time. No State Guarantee shall be revoked
29 by the Authority without a 90 day notice, in writing, to all
30 parties. In those cases were the borrower has not previously
31 used the guarantee program, the lender shall not call due any
32 loan during the first 3 years for any reason except for lack
33 of performance or insufficient collateral. The lender can
34 review and withdraw or continue with the State Guarantee on
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1 an annual basis after the first 3 years of the loan, provided
2 a 90 day notice, in writing, to all parties has been given.
3 (b) The Authority shall provide or renew a State
4 Guarantee to a lender if: (i) A fee equal to 25 basis points
5 on the loan is paid to the Authority on an annual basis by
6 the lender. (ii) The application provides collateral
7 acceptable to the Authority that is at least equal to the
8 State's portion of the Guarantee to be provided. (iii) The
9 lender assumes all responsibility and costs for pursuing
10 legal action on collecting any loan that is delinquent or in
11 default. (iv) The lender is responsible for the first 15% of
12 the outstanding principal of the note for which the State
13 Guarantee has been applied.
14 (c) There is hereby created outside of the State
15 Treasury a special fund to be known as the Illinois
16 Agricultural Loan Guarantee Fund. The State Treasurer shall
17 be custodian of this Fund. Any amounts in the Illinois
18 Agricultural Loan Guarantee Fund not currently needed to meet
19 the obligations of the Fund shall be invested as provided by
20 law, and all interest earned from these investments shall be
21 deposited into the Fund until the Fund reaches the maximum
22 amount authorized in this Act; thereafter, interest earned
23 shall be deposited into the General Revenue Fund. After
24 September 1, 1989, annual investment earnings equal to 1.5%
25 of the Fund shall remain in the Fund to be used for the
26 purposes established in Section 30-40 of this Act. The
27 Authority is authorized to transfer to the Fund such amounts
28 as are necessary to satisfy claims during the duration of the
29 State Guarantee program to secure State Guarantees issued
30 under this Section. If for any reason the General Assembly
31 fails to make an appropriation sufficient to meet these
32 obligations, this Act shall constitute an irrevocable and
33 continuing appropriation of an amount necessary to secure
34 guarantees as defaults occur and the irrevocable and
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1 continuing authority for, and direction to, the State
2 Treasurer and the Comptroller to make the necessary transfers
3 to the Illinois Agricultural Loan Guarantee Fund, as directed
4 by the Governor, out of the General Revenue Fund. Within 30
5 days after November 15, 1985, the Authority may transfer up
6 to $7,000,000 from available appropriations into the Illinois
7 Agricultural Loan Guarantee Fund for the purposes of this
8 Act. Thereafter, the Authority may transfer additional
9 amounts into the Illinois Agricultural Loan Guarantee Fund to
10 secure guarantees for defaults as defaults occur. In the
11 event of default by the farmer, the lender shall be entitled
12 to, and the Authority shall direct payment on, the State
13 Guarantee after 90 days of delinquency. All payments by the
14 Authority shall be made from the Illinois Agricultural Loan
15 Guarantee Fund to satisfy claims against the State Guarantee.
16 The Illinois Agricultural Loan Guarantee Fund shall guarantee
17 receipt of payment of the 85% of the principal and interest
18 owed on the State Guarantee Loan by the farmer to the
19 guarantee holder. It shall be the responsibility of the
20 lender to proceed with the collecting and disposing of
21 collateral on the State Guarantee within 14 months of the
22 time the State Guarantee is declared delinquent; provided,
23 however, that the lender shall not collect or dispose of
24 collateral on the State Guarantee without the express written
25 prior approval of the Authority. If the lender does not
26 dispose of the collateral within 14 months, the lender shall
27 be liable to repay to the State interest on the State
28 Guarantee equal to the same rate which the lender charges on
29 the State Guarantee; provided, however, that the Authority
30 may extend the 14 month period for a lender in the case of
31 bankruptcy or extenuating circumstances. The Fund shall be
32 reimbursed for any amounts paid under this Section upon
33 liquidation of the collateral. The Authority, by resolution
34 of the Board, may borrow sums from the Fund and provide for
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1 repayment as soon as may be practical upon receipt of
2 payments of principal and interest by a farmer. Money may be
3 borrowed from the Fund by the Authority for the sole purpose
4 of paying certain interest costs for farmers associated with
5 selling a loan subject to a State Guarantee in a secondary
6 market as may be deemed reasonable and necessary by the
7 Authority.
8 (d) Notwithstanding the provisions of this Section 66
9 with respect to the farmers and lenders who may obtain State
10 Guarantees, the Authority may promulgate rules establishing
11 the eligibility of farmers and lenders to participate in the
12 State guarantee program and the terms, standards, and
13 procedures that will apply, when the Authority finds that
14 emergency conditions in Illinois agriculture have created the
15 need for State Guarantees pursuant to terms, standards, and
16 procedures other than those specified in this Section.
17 Section 30-35. State Guarantees for loans to farmers and
18 agribusiness; eligibility.
19 (a) The Authority is authorized to issue State
20 Guarantees to lenders for loans to eligible farmers and
21 agribusinesses for purposes set forth in this Section. For
22 purposes of this Section, an eligible farmer shall be a
23 resident of Illinois (i) who is principal operator of a farm
24 or land, at least 50% of whose annual gross income is derived
25 from farming, (ii) whose annual total sales of agricultural
26 products, commodities, or livestock exceeds $20,000, and
27 (iii) whose net worth does not exceed $500,000. An eligible
28 agribusiness shall be that as defined in Section 3 of this
29 Act. The Authority may approve applications by farmers and
30 agribusinesses that promote diversification of the farm
31 economy of this State through the growth and development of
32 new crops or livestock not customarily grown or produced in
33 this State or that emphasize a vertical integration of grain
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1 or livestock produced or raised in this State into a finished
2 agricultural product for consumption or use. "New crops or
3 livestock not customarily grown or produced in this State"
4 shall not include corn, soybeans, wheat, swine, or beef or
5 dairy cattle. "Vertical integration of grain or livestock
6 produced or raised in this State" shall include any new or
7 existing grain or livestock grown or produced in this State.
8 Lenders shall apply for the State Guarantees on forms
9 provided by the Authority, certify that the application and
10 any other documents submitted are true and correct, and pay
11 an administrative fee as determined by the Authority. The
12 applicant shall be responsible for paying any fees or charges
13 involved in recording mortgages, releases, financing
14 statements, insurance for secondary market issues and any
15 other similar fees or charges as the Authority may require.
16 The application shall at a minimum contain the farmer's or
17 agribusiness' name, address, present credit and financial
18 information, including cash flow statements, financial
19 statements, balance sheets, and any other information
20 pertinent to the application, and the collateral to be used
21 to secure the State Guarantee. In addition, the lender must
22 agree to charge an interest rate, which may vary, on the loan
23 that the Authority determines to be below the market rate of
24 interest generally available to the borrower. If both the
25 lender and applicant agree, the interest rate on the State
26 Guarantee Loan can be converted to a fixed interest rate at
27 any time during the term of the loan. Any State
28 Guarantees provided under this Section (i) shall not exceed
29 $500,000 per farmer or an amount as determined by the
30 Authority on a case-by-case basis for an agribusiness,
31 (ii) shall not exceed a term of 15 years, and (iii) shall be
32 subject to an annual review and renewal by the lender
33 and the Authority; provided that only one such State
34 Guarantee shall be made per farmer or agribusiness, except
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1 that additional State Guarantees may be made for purposes of
2 expansion of projects financed in part by a previously issued
3 State Guarantee. No State Guarantee shall be revoked by the
4 Authority without a 90 day notice, in writing, to all
5 parties. The lender shall not call due any loan for any
6 reason except for lack of performance, insufficient
7 collateral, or maturity. A lender may review and withdraw or
8 continue with a State Guarantee on an annual basis after the
9 first 5 years following closing of the loan application if
10 the loan contract provides for an interest rate that shall
11 not vary. A lender shall not withdraw a State Guarantee if
12 the loan contract provides for an interest rate that may
13 vary, except for reasons set forth herein.
14 (b) The Authority shall provide or renew a State
15 Guarantee to a lender if: A fee equal to 25 basis points on
16 the loan is paid to the Authority on an annual basis by the
17 lender. The application provides collateral acceptable to
18 the Authority that is at least equal to the State's portion
19 of the Guarantee to be provided. The lender assumes all
20 responsibility and costs for pursuing legal action on
21 collecting any loan that is delinquent or in default. The
22 lender is responsible for the first 15% of the outstanding
23 principal of the note for which the State Guarantee has been
24 applied.
25 (c) There is hereby created outside of the State
26 Treasury a special fund to be known as the Illinois Farmer
27 and Agribusiness Loan Guarantee Fund. The State Treasurer
28 shall be custodian of this Fund. Any amounts in the Fund not
29 currently needed to meet the obligations of the Fund shall be
30 invested as provided by law, and all interest earned from
31 these investments shall be deposited into the Fund until the
32 Fund reaches the maximum amounts authorized in this Act;
33 thereafter, interest earned shall be deposited into the
34 General Revenue Fund. After September 1, 1989, annual
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1 investment earnings equal to 1.5% of the Fund shall remain in
2 the Fund to be used for the purposes established in Section
3 30-40 of this Act. The Authority is authorized to transfer
4 such amounts as are necessary to satisfy claims from
5 available appropriations and from fund balances of the Farm
6 Emergency Assistance Fund as of June 30 of each year to the
7 Illinois Farmer and Agribusiness Loan Guarantee Fund to
8 secure State Guarantees issued under this Section and
9 Sections 30-45 and 30-50. If for any reason the General
10 Assembly fails to make an appropriation sufficient to meet
11 these obligations, this Act shall constitute an irrevocable
12 and continuing appropriation of an amount necessary to secure
13 guarantees as defaults occur and the irrevocable and
14 continuing authority for, and direction to, the State
15 Treasurer and the Comptroller to make the necessary transfers
16 to the Illinois Farmer and Agribusiness Loan Guarantee Fund,
17 as directed by the Governor, out of the General Revenue Fund.
18 In the event of default by the borrower on State Guarantee
19 Loans under this Section, Section 30-45, or Section 30-50,
20 the lender shall be entitled to, and the Authority shall
21 direct payment on, the State Guarantee after 90 days of
22 delinquency. All payments by the Authority shall be made
23 from the Illinois Farmer and Agribusiness Loan Guarantee Fund
24 to satisfy claims against the State Guarantee. It shall be
25 the responsibility of the lender to proceed with the
26 collecting and disposing of collateral on the State Guarantee
27 under this Section, Section 30-45, or Section 30-50 within 14
28 months of the time the State Guarantee is declared
29 delinquent. If the lender does not dispose of the collateral
30 within 14 months, the lender shall be liable to repay to the
31 State interest on the State Guarantee equal to the same rate
32 that the lender charges on the State Guarantee, provided that
33 the Authority shall have the authority to extend the 14 month
34 period for a lender in the case of bankruptcy or extenuating
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1 circumstances. The Fund shall be reimbursed for any amounts
2 paid under this Section, Section 30-45, or Section 30-50
3 upon liquidation of the collateral. The Authority, by
4 resolution of the Board, may borrow sums from the Fund and
5 provide for repayment as soon as may be practical upon
6 receipt of payments of principal and interest by a borrower
7 on State Guarantee Loans under this Section, Section 30-45,
8 or Section 30-50. Money may be borrowed from the Fund by the
9 Authority for the sole purpose of paying certain interest
10 costs for borrowers associated with selling a loan subject to
11 a State Guarantee under this Section, Section 30-45, or
12 Section 30-50 in a secondary market as may be deemed
13 reasonable and necessary by the Authority.
14 (d) Notwithstanding the provisions of this Section 30-35
15 with respect to the farmers, agribusinesses, and lenders who
16 may obtain State Guarantees, the Authority may promulgate
17 rules establishing the eligibility of farmers,
18 agribusinesses, and lenders to participate in the State
19 Guarantee program and the terms, standards, and procedures
20 that will apply, when the Authority finds that emergency
21 conditions in Illinois agriculture have created the need for
22 State Guarantees pursuant to terms, standards, and procedures
23 other than those specified in this Section.
24 Section 30-40. Cooperative agreement with the University
25 of Illinois.
26 (a) The Authority may enter into a cooperative agreement
27 with the University of Illinois whereby the University's
28 College of Agriculture, or a department thereof, shall assess
29 and evaluate the need for additional, and the
30 performance of existing, State credit and finance programs
31 administered by the Authority for farmers and
32 agribusinesses. Pursuant to the cooperative agreement, the
33 Authority may request from the University an evaluation of
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1 financial positions and lending risks of existing farm
2 operations and existing and developing agricultural
3 industries, an assessment and evaluation of the design,
4 operation and performance of existing and proposed credit
5 programs, an assessment of potential for development of
6 agricultural industry, an assessment of the performance of
7 credit markets and development of improved State credit
8 instruments and programs, and any other information deemed
9 necessary by the Authority to carry forth its credit and
10 finance programs.
11 (b) A cooperative agreement entered into by the
12 Authority and the University may provide for payment for
13 services rendered by the University pursuant to the
14 cooperative agreement from interest earnings remaining in the
15 Illinois Agricultural Loan Guarantee Fund, as provided for in
16 Section 66 of this Act, and the Illinois Farmer and
17 Agribusiness Loan Guarantee Fund, as provided for in Section
18 67 of this Act.
19 Section 30-45. Young Farmer Loan Guarantee Program.
20 (a) The Authority is authorized to issue State
21 Guarantees to lenders for loans to finance or refinance debts
22 of young farmers. For the purposes of this Section, a young
23 farmer is a resident of Illinois who is at least 18 years of
24 age and who is a principal operator of a farm or land, who
25 derives at least 50% of annual gross income from farming,
26 whose net worth is not less than $10,000 and whose debt to
27 asset ratio is not less than 40%. For the purposes of this
28 Section, debt to asset ratio means current outstanding
29 liabilities, including any debt to be financed or refinanced
30 under this Section, divided by current outstanding assets.
31 The Authority shall establish the maximum permissible debt to
32 asset ratio based on criteria established by the Authority.
33 Lenders shall apply for the State Guarantees on forms
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1 provided by the Authority and certify that the application
2 and any other documents submitted are true and correct. The
3 lender or borrower, or both in combination, shall pay an
4 administrative fee as determined by the Authority. The
5 applicant shall be responsible for paying any fee or charge
6 involved in recording mortgages, releases, financing
7 statements, insurance for secondary market issues, and any
8 other similar fee or charge that the Authority may require.
9 The application shall at a minimum contain the young farmer's
10 name, address, present credit and financial information,
11 including cash flow statements, financial statements, balance
12 sheets, and any other information pertinent to the
13 application, and the collateral to be used to secure the
14 State Guarantee. In addition, the borrower must certify to
15 the Authority that, at the time the State Guarantee is
16 provided, the borrower will not be delinquent in the
17 repayment of any debt. The lender must agree to charge a
18 fixed or adjustable interest rate that the Authority
19 determines to be below the market rate of interest generally
20 available to the borrower. If both the lender and applicant
21 agree, the interest rate on the State guaranteed loan can be
22 converted to a fixed interest rate at any time during the
23 term of the loan. State Guarantees provided under this
24 Section (i) shall not exceed $500,000 per young farmer, (ii)
25 shall be set up on a payment schedule not to exceed 30
26 years, but shall be no longer than 15 years in duration, and
27 (iii) shall be subject to an annual review and renewal by the
28 lender and the Authority. A young farmer may use this program
29 more than once provided the aggregate principal amount of
30 State Guarantees under this Section to that young farmer does
31 not exceed $500,000. No State Guarantee shall be revoked by
32 the Authority without a 90 day notice, in writing, to all
33 parties.
34 (b) The Authority shall provide or renew a State
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1 Guarantee to a lender if: (i) The lender pays a fee equal
2 to 25 basis points on the loan to the Authority on an annual
3 basis. (ii) The application provides collateral acceptable
4 to the Authority that is at least equal to the State
5 Guarantee. (iii) The lender assumes all responsibility and
6 costs for pursuing legal action on collecting any loan that
7 is delinquent or in default. (iv) The lender is at risk for
8 the first 15% of the outstanding principal of the note for
9 which the State Guarantee is provided.
10 (c) The Illinois Farmer and Agribusiness Loan Guarantee
11 Fund may be used to secure State Guarantees issued under this
12 Section as provided in Section 30-35.
13 (d) Notwithstanding the provisions of this Section 69
14 with respect to the young farmers and lenders who may obtain
15 State Guarantees, the Authority may promulgate rules
16 establishing the eligibility of young farmers and lenders to
17 participate in the State Guarantee program and the terms,
18 standards, and procedures that will apply, when the
19 Authority finds that emergency conditions in Illinois
20 agriculture have created the need for State Guarantees
21 pursuant to terms, standards, and procedures other than those
22 specified in this Section.
23 Section 30-50. Specialized Livestock Guarantee Program.
24 (a) The Authority is authorized to issue State
25 Guarantees to lenders for loans to finance or refinance
26 debts for specialized livestock operations that are or will
27 be located in Illinois. For purposes of this Section, a
28 "specialized livestock operation" includes, but is not
29 limited to, dairy, beef, and swine enterprises.
30 (b) Lenders shall apply for the State Guarantees on
31 forms provided by the Authority and certify that the
32 application and any other documents submitted are true and
33 correct. The lender or borrower, or both in combination,
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1 shall pay an administrative fee as determined by the
2 Authority. The applicant shall be responsible for paying any
3 fee or charge involved in recording mortgages, releases,
4 financing statements, insurance for secondary market issues,
5 and any other similar fee or charge that the
6 Authority may require. The application shall, at a
7 minimum, contain the farmer's name, address, present
8 credit and financial information, including cash flow
9 statements, financial statements, balance sheets, and any
10 other information pertinent to the application, and the
11 collateral to be used to secure the State Guarantee.
12 In addition, the borrower must certify to the Authority
13 that, at the time the State Guarantee is provided, the
14 borrower will not be delinquent in the repayment of any debt.
15 The lender must agree to charge a fixed or adjustable
16 interest rate that the Authority determines to be below
17 the market rate of interest generally available to the
18 borrower. If both the lender and applicant agree, the
19 interest rate on the State guaranteed loan can be
20 converted to a fixed interest rate at any time during the
21 term of the loan.
22 (c) State Guarantees provided under this Section
23 (i) shall not exceed $1,000,000 per applicant, (ii) shall
24 be no longer than 15 years in duration, and (iii) shall be
25 subject to an annual review and renewal by the lender and
26 the Authority. An applicant may use this program more than
27 once, provided that the aggregate principal amount of
28 State Guarantees under this Section to that applicant
29 does not exceed $1,000,000. A State Guarantee shall not
30 be revoked by the Authority without a 90-day notice, in
31 writing, to all parties.
32 (d) The Authority shall provide or renew a State
33 Guarantee to a lender if: (i) The lender pays a fee equal
34 to 25 basis points on the loan to the Authority on an annual
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1 basis. (ii) The application provides collateral
2 acceptable to the Authority that is at least equal to the
3 State Guarantee. (iii) The lender assumes all
4 responsibility and costs for pursuing legal action on
5 collecting any loan that is delinquent or in default.
6 (iv) The lender is at risk for the first 15% of the
7 outstanding principal of the note for which the State
8 Guarantee is provided.
9 (e) The Illinois Farmer and Agribusiness Loan Guarantee
10 Fund may be used to secure State Guarantees issued under this
11 Section as provided in Section 30-35.
12 (f) Notwithstanding the provisions of this Section
13 70 with respect to the specialized livestock operations and
14 lenders who may obtain State Guarantees, the Authority may
15 promulgate rules establishing the eligibility of
16 specialized livestock operations and lenders to
17 participate in the State Guarantee program and the terms,
18 standards, and procedures that will apply, when the
19 Authority finds that emergency conditions in Illinois
20 agriculture have created the need for State Guarantees
21 pursuant to terms, standards, and procedures other than those
22 specified in this Section.
23 ARTICLE 35
24 HOUSING DEVELOPMENT
25 Section 35-5. The Authority may make non-interest bearing
26 advances to nonprofit corporations for constructing or
27 rehabilitating developments designed and planned to make
28 housing available at low and moderate rentals to low
29 and moderate income persons and families if such housing
30 complies with the standards set by the Authority under
31 this Act. No advances may be made unless the Authority may
32 reasonably anticipate that assisted mortgage financing may
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1 be obtained for the permanent financing of the development.
2 The proceeds of the advance may be used only to defray
3 the development costs of such development.
4 Section 35-10. The Authority may make mortgage or
5 other loans to non-profit corporations and limited-profit
6 entities for the acquisition, construction or substantial or
7 moderate rehabilitation of such developments as in the
8 judgment of the Authority have promise of supplying,
9 on a rental, cooperative, condominium or home ownership
10 basis, well planned, well designed energy-efficient housing
11 for low or moderate income persons or families at low
12 or moderate rentals in locations where there is a need for
13 such housing. Such loans may be for development costs and
14 construction financing as well as permanent financing,
15 and may provide financing for community facilities to the
16 extent permitted by applicable Authority regulations. The
17 Authority may also make loans to individuals, joint
18 ventures, partnerships, limited partnerships, trusts or
19 corporations, including not-for-profit corporations, for
20 the acquisition, construction, equipment or rehabilitation
21 of housing related commercial facilities. When the
22 Authority makes a loan for housing related commercial
23 facilities, it may require as a condition of the loan that a
24 portion of the borrower's receipts from the use of the
25 facilities be used for the construction, acquisition,
26 rehabilitation, operation or maintenance or payment of debt
27 service on a development to which the facilities relate. The
28 Authority may set from time to time the interest
29 rates and other terms and conditions at which it shall make
30 mortgage and other loans and may establish other terms
31 and conditions with respect to the making of such loans,
32 including the charging of fees or penalties for the late
33 payment of principal and interest on its loans. When the
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1 loan by the Authority is for the purpose of providing
2 housing on a condominium or home ownership basis, sale of
3 the housing units by the nonprofit corporation or
4 limited-profit entity shall be to individual purchasers who
5 are persons or families of low or moderate income and
6 shall be subject to the approval of the Authority. Upon the
7 sale by the nonprofit corporation or limited-profit
8 entity of any housing unit to a low or moderate income
9 person, such housing unit shall be released from the
10 overall development mortgage running from the nonprofit
11 corporation or limited-profit entity to the Authority and,
12 as to such housing unit, the overall development mortgage
13 shall be replaced by an individual mortgage running from
14 the low or moderate income purchaser to the Authority. To
15 secure notes or bonds of the Authority in connection with
16 loans made pursuant to this Section for a development or
17 other facilities, the Authority may require or obtain for the
18 benefit of itself, the holders of the notes or bonds or their
19 trustee, mortgages, pledges, assignments, liens, letters
20 of credit, guarantees or other security interests or devices
21 from any persons or entities, whether or not the owner
22 of the development or facilities, and covering any
23 property, real or personal, tangible or intangible,
24 whether or not pertaining to the development or facilities.
25 When the Authority issues Affordable Housing Program
26 Trust Fund Bonds or Notes in connection with loans made
27 pursuant to this Section for financing low and very low
28 income residential housing as provided in the Illinois
29 Affordable Housing Act, to secure such bonds and notes, the
30 Authority, in addition to the other devices, security
31 interests, mortgages and rights provided by this Section
32 and other provisions of this Act, may pledge and grant rights
33 in Trust Fund Moneys as provided in Section 9 of the
34 Illinois Affordable Housing Act.
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1 Section 35-15. The Authority may undertake and carry out
2 studies and analyses of housing needs within the State and
3 study ways of meeting such needs.
4 Section 35-20. The Authority may collect fees and
5 charges in connection with its housing loans, commitments
6 and servicing; and may provide technical assistance in the
7 development of housing for low and moderate income
8 persons and may charge and collect reasonable fees and
9 charges in connection with such assistance.
10 Section 35-25. The Authority may encourage research in
11 demonstration projects to develop new and better techniques
12 and methods for increasing the quality and supply of
13 housing for low and moderate income persons, and make
14 grants or loans, with or without interest, in connection
15 therewith.
16 Section 35-30. The Authority may acquire real property,
17 or any interest therein, by purchase, foreclosure or
18 otherwise; own, manage, operate, hold, clear, improve and
19 rehabilitate such real property; and sell, assign, exchange,
20 transfer, convey, lease, mortgage, or otherwise dispose of
21 or encumber such real property. Any acquisition of real
22 property, or an interest therein, or mortgage loan by
23 the Authority, shall be deemed an acquisition of real
24 property and shall be subject to the requirements of section
25 11-12-4.1 of the Illinois Municipal Code of 1961, as amended.
26 Section 35-35. The Authority may invest any funds
27 in mortgage participation certificates representing
28 undivided interests in specified, first-lien conventional
29 residential Illinois mortgages which are underwritten,
30 insured, guaranteed or purchased by the Federal Home Loan
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1 Mortgage Corporation. The Authority may also invest any
2 funds in such investments as may be lawful for fiduciaries in
3 this State. The Authority may also invest any funds in such
4 investments as may be lawful for State or
5 nationally-chartered banks, State or federally-chartered
6 savings and loan associations or fiduciaries subject to the
7 Employee Retirement Income Security Act of 1974.
8 Section 35-40. The Authority may borrow money and issue
9 its negotiable notes and bonds and secure the payment
10 thereof by, among other things, the pledge, or assignment, or
11 grant of a lien on or security interest of mortgages and
12 notes of others, revenues derived from its operations and
13 loan repayments and other funds, if any, received by the
14 Authority, including, in connection with the issuance of
15 Affordable Housing Program Trust Fund Bonds or Notes, the
16 pledge of Trust Fund Moneys as provided in Section 9 of
17 the Illinois Affordable Housing Act. For purposes of this
18 Section and all other Sections of this Act, all references
19 to and use of the terms "bonds" or "notes" issued or to
20 be issued under this Act shall include reference to and
21 include within the meaning of the term, Illinois
22 Affordable Housing Program Trust Fund Bonds or Notes,
23 unless the reference or term expressly excludes such bonds or
24 notes.
25 Section 35-45. Subject to its covenants with its
26 noteholders and bondholders, the Authority may sell at
27 public or private sale, any mortgage or other obligation held
28 by the Authority.
29 Section 35-50. The Authority may consent, whenever it
30 deems it necessary or desirable in the fulfillment of the
31 purposes of this Act, to the modification, with
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1 respect to rate of interest; time of payment or any
2 installment of principal or interest, or any other
3 terms, of any mortgage, mortgage loan, mortgage loan
4 commitment, other loan, contract or agreement of any kind to
5 which the Authority is a party.
6 Section 35-55. The Authority may make grants to
7 nonprofit corporations for operating, administrative and
8 other expenses of planning, constructing, rehabilitating
9 and operating developments under assisted or unassisted
10 mortgage financing programs and may make grants to
11 nonprofit corporations or limited-profit entities for the
12 benefit of residents of developments in order to achieve
13 lower rentals for some or all of the units within
14 developments financed under assisted or unassisted
15 mortgage financing programs.
16 Section 35-60. The Authority may act as the State land
17 development agency in the carrying out of new community
18 development programs and may issue notes and bonds for the
19 financing of land development complying with the
20 requirements for federal guarantees.
21 Section 35-65. The Authority may act as a
22 developer of land or structures to provide
23 developments, community facilities or housing related
24 commercial facilities. For that purpose it may utilize
25 its various powers, including without limitation,
26 acquiring, constructing, rehabilitating and equipping
27 developments and facilities, granting mortgages or other
28 security interests in them or disposing of them. It may be
29 a partner in a partnership or limited partnership, a
30 participant in joint ventures for that purpose and may
31 participate in the syndication of partnership interests
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1 and may contribute funds in respect of its interests in
2 partnerships or joint ventures.
3 Section 35-70. (a) The Authority may acquire, and
4 contract and enter into advance commitments to acquire,
5 residential mortgages owned by lending institutions at
6 purchase prices and upon other terms and conditions
7 that are determined by the Authority. When acquiring those
8 mortgages and contracts, the Authority may give priority
9 consideration to contracts that include energy conservation
10 measures, including, but not limited to, solar energy
11 measures. The Authority may also give priority
12 consideration when the mortgagor was a domiciliary of
13 this State while serving on active duty in the military or
14 naval service of the United States at any time during the
15 period from August 1990 through August 1992 and was
16 stationed outside the United States and in the "Desert
17 Storm" theater of operations. The Authority may
18 establish rules and regulations under this subsection,
19 including provisions regarding energy conservation matters.
20 (b) The Authority may make and execute contracts
21 with lending institutions for the servicing of residential
22 mortgages acquired by the Authority under this Section and
23 pay the reasonable value of services rendered to the
24 Authority under those contracts.
25 (c) The Authority shall establish rules and
26 regulations for the purchase of mortgages under this Section
27 governing: the use that is to be made of amounts
28 received by the lending institutions upon the purchase of
29 mortgages by the Authority, including the proportion of
30 those amounts, if any, that are to be used by the institution
31 for making additional residential mortgages; the time
32 within which lending institutions must make commitments
33 and disbursements for residential mortgages, that time
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1 for the making of commitments to be established by the
2 Authority; standards as to the number of dwelling units and
3 other characteristics of residences, the
4 construction, acquisition, improvement, or rehabilitation
5 of which is to be financed by residential mortgages made or
6 to be made by the lending institution; standards and
7 requirements as to the condition of residential mortgages to
8 be acquired by the Authority, the mortgagors under
9 those mortgages, and the representations and warranties of
10 the lending institutions in connection with that condition;
11 and any other matters related to those purchases or the
12 residential mortgages that are deemed relevant by the
13 Authority.
14 (d) The Authority shall require from each lending
15 institution from which residential mortgages are
16 purchased under this Section the submission of evidence
17 satisfactory to the Authority of compliance with the rules
18 and regulations of the Authority; in that connection, the
19 Authority may inspect the books and records of the lending
20 institution.
21 Section 35-75. (a) The Authority may make loans
22 to lending institutions under terms and conditions
23 which, in addition to other provisions as determined by the
24 Authority, shall require the lending institutions to use
25 a portion of the proceeds thereof for the making of
26 residential mortgages, or loans for housing related
27 commercial facilities, as the Authority shall specify, in
28 an aggregate principal amount equal to the amount of such
29 proceeds. When making loans from such proceeds for new
30 residential mortgages under this Section, priority
31 consideration may be given to loans which include energy
32 conservation measures including, but not limited to, solar
33 energy measures. The Authority may establish rules
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1 and regulations pursuant to this subsection.
2 (b) The Authority shall establish rules and
3 regulations for the making of loans pursuant to this
4 Section governing: the time within which lending institutions
5 must make commitments and disbursements for new
6 residential mortgages, which time for the making of
7 commitments shall be established by the Authority; standards
8 as to the number of dwelling units and other
9 characteristics of residences, the construction,
10 acquisition, improvement or rehabilitation of which is to be
11 financed by new residential mortgages; restrictions as to
12 interest rate and other terms of residential mortgages or
13 the return realized therefrom by the lending institution;
14 the type and amount of collateral security to be provided by
15 lending institutions to assure repayment of loans from the
16 Authority; and any other matters related to such loans or
17 residential mortgages as shall be deemed relevant by the
18 Authority.
19 (c) The Authority shall require from each lending
20 institution receiving loans under this Section the
21 submission of evidence satisfactory to the Authority of
22 compliance with the rules and regulations of the
23 Authority and whatever documentation or evidence deemed
24 appropriate by the Authority; in connection therewith,
25 the Authority may inspect the books and records of such
26 lending institution.
27 Section 35-80. (a) The Authority may make, purchase, or
28 participate in loans, grants, or deferred payment loans to
29 persons and families of low and moderate income and to
30 not-for-profit and limited-profit entities for the benefit of
31 low and moderate income persons and families, to finance
32 the development, improvement or rehabilitation of
33 residential real property. When financing loans, grants, or
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1 deferred payment loans under this Section, the Authority
2 may give priority to applications which include energy
3 conservation measures including, but not limited to, solar
4 energy systems.
5 (b) A loan or deferred payment loan under this
6 Section may be secured or unsecured as determined by the
7 Authority. A grant may be secured or unsecured as
8 determined by the Authority, and shall be made under
9 additional terms and conditions determined by the Authority.
10 (c) Loans under this Section may be in such principal
11 amounts, bear interest at such rates, have such other terms
12 and conditions and be repaid within such period as the
13 Authority may determine.
14 (d) Loans under this Section financed by Affordable
15 Housing Program Trust Fund Bonds or Notes or from Trust Fund
16 Moneys shall be restricted to the purposes and subject to the
17 limitations on use provided in the Illinois Affordable
18 Housing Act.
19 Section 35-85. The Authority shall prescribe by rule for
20 notification to affected parties and the A-95 agencies prior
21 to any commitment on any development. The Authority shall
22 report to the General Assembly no later than October 31, 1982
23 the status of such proposed rules.
24 Section 35-90. The Authority may issue or provide for
25 the issuance of trust certificates or other obligations
26 secured by or representing ownership in residential
27 mortgages, may transfer residential mortgages to trusts
28 to facilitate the issuance of such certificates or other
29 obligations and may enter into trust agreements with
30 respect to and providing for the securing of those
31 certificates or other obligations.
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1 Section 35-95. (a) Not later than January 1, 1986,
2 the Authority shall establish rules and regulations
3 governing minimum energy efficiency standards in
4 developments financed by the Authority and such other
5 standards as may be deemed necessary by the Authority to
6 assess, evaluate and compare the energy efficiency of
7 current and proposed developments.
8 (b) After July 1, 1986, no commitment for
9 assisted mortgage financing shall be made by the Authority
10 for any new development unless the Authority certifies
11 compliance with the minimum energy efficiency standards
12 specified in its rules and regulations.
13 Section 35-100. The Authority may issue bonds or notes
14 for the purpose of financing single room occupancy
15 facilities for low income individuals or families. Such
16 facilities must be determined by the Authority to be
17 financially and operationally feasible, and such bond or note
18 issuances are subject to the normal rating agency and
19 financial market restrictions.
20 Section 35-105. (a) The Authority is hereby
21 designated the State Housing Credit Agency and is
22 charged with responsibility for administering low-income
23 housing tax credits allocated to the State under
24 Section 42 of the Internal Revenue Code of 1986, as amended.
25 In fulfilling its responsibilities as the State Housing
26 Credit Agency, the Authority is authorized to do all
27 acts authorized or required under Section 42 of the Internal
28 Revenue Code of 1986, as amended, and to:
29 (1) Establish a plan for allocation of low-income
30 housing tax credits (which plan shall be effective upon
31 the Governor?s written approval) ; prepare application
32 forms for allocation of such tax credits; and make
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1 allocation of such tax credits to eligible
2 individuals and corporations.
3 (2) Initiate marketing, education and
4 out-reach projects throughout the State to maximize
5 utilization of all available low-income housing tax
6 credits.
7 (3) Provide technical assistance and training
8 to local governments, including home rule
9 jurisdictions, to encourage coordination of local,
10 State and federal resources with the allocation of
11 low-income housing tax credits.
12 (4) Accept and allocate low-income housing tax
13 credits that may be transferred from Illinois home rule
14 jurisdictions.
15 (5) Assess fees to cover the costs of
16 allocating and administering the tax credits.
17 (b) Commencing in calendar year 1990, the aggregate
18 unused housing tax credit dollar amount of all home
19 rule jurisdictions available pursuant to Section 42 of the
20 Internal Revenue Code of 1986, as amended, shall be as of
21 June 1 of each calendar year reserved to the Authority for
22 allocation by the Authority in the same manner as the
23 Authority allocates low- income housing tax credits
24 allocated to the State; provided that this reservation
25 shall not apply to the housing tax credit amount of a city
26 with over 2,000,000 inhabitants. This amendatory Act of 1989
27 is intended to alter the allocation of low-income housing
28 tax credits to home rule units, other than a
29 municipality with over 2,000,000 inhabitants otherwise
30 conferred pursuant to Section 42 of the Internal Revenue Code
31 of 1986, as amended.
32 Section 35-110. The Authority may use its administrative
33 funds for loans or grants to finance the cost of
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1 rehabilitating housing units for the homeless mentally
2 ill. For purposes of this Section, a person is
3 "homeless" if such person has no permanent or temporary
4 housing. The Authority shall, within 90 days after the
5 effective date of this amendatory Act of 1989, develop a plan
6 for making rehabilitated housing units financed by the
7 Authority available to the homeless mentally ill.
8 Section 35-115. In connection with the acquisition or
9 carrying of the Authority's investments, in connection
10 with issuances by the Authority of its bonds and notes for
11 purposes of the Authority's programs or in support of
12 its bonds and notes outstanding, or in connection with any
13 other of its corporate purposes, the Authority, for its own
14 benefit or for the benefit of the holders of notes or
15 bonds of the Authority or their trustee, may enter into rate
16 protection contracts and related credit enhancement or
17 liquidity agreements. The Authority shall enter into a rate
18 protection contract only pursuant to a determination that
19 the terms of the rate protection contracts and any related
20 agreements reduce the risk of loss to the Authority or
21 protect, preserve or enhance the value of its assets. The
22 determination may be made, and the terms and conditions
23 of any rate protection contract may be approved, by the
24 members or may be delegated by the members, in particular
25 cases or generally, to any 2 of the chairperson, the vice
26 chairperson, the director, the deputy director, the treasurer
27 or the assistant treasurer of the Authority. The
28 Authority's obligations under any rate protection
29 contract shall not be considered bonds or notes for
30 purposes of this Act.
31 Section 35-120. The Authority may offer non-recourse
32 reverse mortgage loans to qualified borrowers with the same
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1 restrictions and requirements as prescribed in Section 6.1 of
2 the Illinois Banking Act. The Authority may seek funds
3 from the Federal Home Loan Bank of Chicago to fund
4 reverse mortgage loans made under this Section. Reverse
5 mortgage loans may be made under terms which qualify
6 the loans for purchase by the Federal National Mortgage
7 Association.
8 Section 35-125. A limited-profit entity which
9 receives loans from the Authority may not make
10 distributions in any one year with respect to a development
11 financed by the Authority in excess of 6% of its equity in
12 such development, except that the right to such
13 distribution shall be cumulative. This distribution
14 limitation may not be increased above 6% during the life of
15 the Authority's loan, whether the loan is outstanding on or
16 is made after the effective date of this amendatory Act of
17 1991, unless, by resolution of the members, the Authority
18 determines that an increase is necessary to preserve the
19 development as affordable to low and moderate income persons
20 and families or that an increase provides for the
21 creation of additional units of housing affordable to low
22 or moderate income persons and families in the development or
23 otherwise in this State. The equity in a development shall
24 consist of the difference between the amount of the mortgage
25 loan and the total cost of the development. The
26 total cost of the development shall include
27 construction or rehabilitation costs including job
28 overhead and a builder's and sponsor's profit and risk fee,
29 architectural, engineering, legal and accounting costs,
30 organizational expenses, land value, interest and
31 financing charges paid during construction, the cost of
32 landscaping and off-site improvements, whether or not such
33 costs have been paid in cash or in a form other than cash.
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1 With respect to every development the Authority shall,
2 by resolution, establish the entity's equity at the time of
3 making of the final mortgage advance and, for purposes
4 of this paragraph, that figure shall remain constant during
5 the life of the Authority's loan with respect to such
6 development, unless adjusted pursuant to a resolution of the
7 members based on criteria set forth in the Authority's
8 rules or regulations. The Authority may, pursuant to its
9 rules or regulations, or pursuant to agreements with
10 persons to whom it makes mortgage or other loans, provide for
11 methods of limiting profits or cash flow or other
12 distributions available to the person. Such alternative
13 methods may include, without limitation, a limitation
14 which may vary from period to period based on changes in the
15 costs of borrowing money and may be changed from time to
16 time. Such alternative methods may be in lieu of the 6%
17 limitation as provided in this Section. With respect to
18 mortgage loans to limited profit entities, the
19 alternative method shall be such as shall, in the sole
20 judgment of the Authority, result in the lowest rents
21 consistent with attracting private enterprise to acquire,
22 construct, rehabilitate, operate and maintain the
23 development.
24 Section 35-130. With respect to mortgage loans for
25 developments financed by the issuance of the Authority's
26 bonds and notes and not covered under the Low-Income
27 Housing Preservation and Resident Homeownership Act of 1990
28 (12 U.S.C. 4101 et seq.) created by Title VI of
29 the Cranston-Gonzalez National Affordable Housing Act,
30 the owner may not make, and the Authority may not accept, a
31 prepayment of the mortgage loan except in accordance with
32 the provisions of this Section.
33 (a) For those developments covered under this
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1 Section, the owner may make, and the Authority may accept, a
2 prepayment of the mortgage loan if the owner enters into
3 an agreement with the Authority to extend to the full term of
4 the mortgage loan the affordability restrictions on those
5 units affordable to low income persons and families or
6 create a comparable number of new units of housing
7 affordable for low income persons and families. As
8 used in this Section, "affordability restrictions" means
9 limits imposed by a federal or Authority regulation,
10 regulatory agreement or rent subsidy contract on tenant
11 rents, rent contributions, or income eligibility for
12 the development so as to require that the units be
13 affordable to low income persons and families.
14 (b) If the owner does not enter into the agreement
15 described in subsection (a), prior to the owner making
16 and the Authority accepting prepayment of the mortgage loan
17 on those developments covered by this Section the owner
18 shall provide notice to the tenants of the development of
19 the owner's intent to prepay the mortgage loan and the
20 tenants' rights under this Section. The notice shall be in a
21 form approved by the Authority and shall be delivered at
22 least 9 months prior to the date the owner intends to prepay
23 the mortgage loan.
24 (c) If the owner does not enter into the agreement
25 described in subsection (a) and intends to cause the
26 prepayment of the mortgage loan, the tenants shall have the
27 first right to purchase the development as follows:
28 (1) The tenants shall, within 60 days after the
29 date of the owner's notice under subsection (b), notify
30 the owner in writing that the tenants have formed
31 a tenant association and shall designate the name of
32 its representative. As used in this Section "tenant
33 association" means an association, corporation or
34 other organization that represents at least a majority
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1 of the tenants in the development.
2 (2) After receiving notice from the tenants under
3 paragraph (1) of this subsection (c), the owners shall
4 provide a bona fide offer for sale of the development to
5 the tenant association which contains the essential
6 terms of the sale, including, at a minimum, the
7 following: the sale price; the terms of seller
8 financing, if any, including the amount, the interest
9 rate, and amortization rate; the terms of assumable
10 financing, if any, including the amount, interest rate,
11 and the amortization rate; and the proposed
12 improvements, if any, to the property to be made by
13 the owner in connection with the sale. The bona fide
14 offer for sale shall also state that within 30 days
15 after its receipt, the tenant association shall notify
16 the owner, in writing, of its intent to purchase the
17 development, which notice shall not create any legal
18 obligation other than under this Section. By this
19 notice the tenant association may designate a
20 not-for-profit corporation to act on its behalf to
21 purchase the development.
22 (3) The tenant association or its designee
23 shall, within 90 days after delivery of the notice of
24 intent to purchase under paragraph (2) of this
25 subsection (c), deliver to the owner and the owner shall
26 execute a purchase contract reflecting a sale price and
27 terms agreed to by the parties or the sale price
28 and terms determined as follows: If the owner and the
29 tenant association or its designee are unable to agree
30 to a sale price within the first 60 days of the 90
31 day period specified above, the sale price of the
32 development shall be based upon its fair market value at
33 its highest and best use minus any rehabilitation costs
34 or other costs required to convert the development
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1 to that use, as determined by 2 independent
2 appraisers qualified to perform multi-family housing
3 appraisals. One appraiser shall be selected and paid by
4 the owner and the other shall be selected and paid by
5 the tenant association or its designee. If the
6 appraisers fail to agree upon a fair market value, the
7 owner and the tenant association or its designee shall
8 either jointly select and pay a third appraiser
9 whose appraisal shall be binding, or agree to take an
10 average of the 2 appraisals. All appraisers shall be
11 MAI certified. The determination of the sale price shall
12 be completed within the 90 day period specified
13 above.
14 (4) The tenant association or its designee shall
15 close on the sale of the development within 90 days after
16 the date the parties sign the contract to purchase.
17 (d) The provisions of this Section shall not apply to
18 any of the following: a government taking by eminent domain
19 or negotiated purchase; a forced sale pursuant to a
20 foreclosure; or a transfer by gift, devise or operation of
21 law.
22 (e) If the Authority determines, in its sole
23 discretion, that the tenants of the development failed to
24 form a tenant association as defined in this Section, or
25 that the tenant association or its designee failed to provide
26 notice to the owner of the formation of a tenant
27 association under paragraph (1) of subsection (c), failed
28 to provide notice to the owner of its intent to purchase
29 under paragraph (2) of subsection (c), failed to
30 provide a bona fide offer to purchase under paragraph (3) of
31 subsection (c), or failed to close on the development under
32 paragraph (4) of subsection (c), the owner may prepay the
33 mortgage loan and the Authority may accept the prepayment of
34 the mortgage loan.
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1 (f) The owner and the tenant association or its
2 designee shall timely forward a copy of all notices required
3 under this Section to the Authority.
4 Section 35-135. The ratio of loan to development cost
5 and the amortization period of loans made by the Authority
6 shall be determined in accordance with regulations
7 formulated and published by the Authority.
8 Section 35-140. Prior to making a loan commitment for a
9 development under this Act, the Authority shall approve a
10 tenant selection plan submitted by the applicant for the
11 loan. The Authority shall formulate regulations from time to
12 time setting forth the criteria for tenant selection plans.
13 These criteria shall include income limits, which may vary
14 with the size and circumstances of the family unit of
15 tenants. The income limits shall be sufficiently flexible to
16 avoid undue economic homogeneity among the tenants of a
17 development. The Authority may formulate regulations from
18 time to time for the alteration of occupancies of tenants
19 who exceed established income limits. The tenant selection
20 plan shall specify how many units in the development shall be
21 held available for rentals to persons of low or moderate
22 income, as defined in this Act. In determining the number of
23 units which shall be so held available for rental to persons
24 of low or moderate income, the Authority shall require
25 that the number of dwelling units so held reserved for them
26 in each development shall not be less than the number
27 required by applicable federal and State law.
28 In connection with any mortgage loan for a
29 development, the Authority may enter into an agreement with
30 the owner of the development as a part of the loan
31 providing that as long as the loan remains outstanding or
32 such longer period as is set forth in the agreement, the
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1 development shall be held available for such rentals.
2 Any such agreement shall, upon being recorded in the
3 manner provided for recording of deeds or registered
4 in the manner specified for registration of titles, be
5 binding upon any subsequent owners of the development as
6 provided by its terms.
7 Section 35-145. Among low or moderate income persons and
8 families, preference for occupancy in a development
9 financed under the Act shall be given to those persons and
10 families displaced from an urban renewal area, or as a result
11 of governmental action, or as a result of a major disaster,
12 in accordance with applicable regulations and procedures.
13 Section 35-150. In order to encourage developments
14 which are not economically homogeneous and to achieve
15 rent charges which will make units available to persons and
16 families of low income at low rentals, the Authority and a
17 mortgagor may use devices including, but not limited to:
18 direct rental assistance in the form of partial rent
19 subsidy from any county, municipal, State or federal
20 source; allocation of lower rents to less desirable
21 locations and apartments with less expensive facilities; and
22 the raising of rents in the majority of apartments in the
23 development in order to lower the rents of those in the
24 lower rent charge category. With respect to each
25 development the Authority shall, prior to initial occupancy,
26 allocate and prescribe the number of lower rental units and
27 the rents to be charged therefor. The allocation may be
28 reviewed and adjusted from time to time. The method of
29 achieving lower rental charges shall, in each instance, be
30 prescribed by the Authority.
31 Section 35-155. The Authority shall require that
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1 occupancy of all housing financed or otherwise assisted
2 under this Act be open to all persons regardless of race,
3 national origin, religion, creed, sex, age or handicap
4 and that contractors and subcontractors engaged in the
5 construction or rehabilitation of such housing or any
6 housing related commercial facility, shall provide equal
7 opportunity for employment without discrimination as to race,
8 national origin, religion, creed, sex, age or handicap.
9 Section 35-160. Housing Bonds. The Authority may from
10 time to time issue its negotiable bonds and notes in
11 such principal amount, as, in the opinion of the Authority,
12 shall be necessary to provide sufficient funds for achieving
13 its corporate purposes, including the making of mortgage or
14 other loans for the acquisition, construction and
15 rehabilitation of housing to be occupied by low and
16 moderate income persons, for the acquisition, construction
17 and rehabilitation of community facilities as provided in
18 this Act and for the acquisition, construction and
19 rehabilitation of housing related commercial facilities; the
20 acquisition of land and land development; the purchase of
21 residential mortgages from lending institutions; the
22 making of loans to lending institutions; the payment of
23 interest on bonds and notes of the Authority; the
24 establishment of reserves to secure such bonds and notes; and
25 all other expenditures of the Authority incidental to and
26 necessary or convenient to carrying out its corporate
27 purposes and powers, including the reimbursement of the
28 Authority for expenditures made by it from other funds for
29 achieving its corporate purposes set forth in this Section.
30 The bonds and notes of the Authority may be issued as
31 general obligations of the Authority payable from such
32 revenues, funds and obligations of the Authority as
33 the resolution authorizing issuance of the bonds or notes
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1 shall provide, or may be issued as limited obligations with a
2 claim for payment solely from such revenues, funds and
3 obligations as the resolution authorizing issuance of the
4 bonds or notes shall provide. The Authority is
5 specifically granted the power and authority to issue
6 Affordable Housing Program Trust Fund Bonds or Notes,
7 provided that the use of the proceeds thereof is subject to
8 the limitation provided in the Illinois Affordable Housing
9 Act. Except for such limitation and the dedication and
10 pledge of Trust Fund Moneys provided for in that Act,
11 Affordable Housing Program Trust Fund Bonds or Notes shall
12 be treated in all respects as, and shall be entitled to
13 all the benefits, rights, grants and authorizations in
14 respect of, bonds and notes issued pursuant and subject
15 to the provisions of this Act.
16 Section 35-165. The Authority may issue to persons
17 acquiring, improving or rehabilitating residences in
18 Illinois mortgage credit certificates (or such other
19 arrangements by which entities authorized to issue
20 qualified mortgage bonds under Section 143 of the Internal
21 Revenue Code may grant persons Federal income tax credits or
22 other advantages with respect to costs of residential
23 mortgages). The Authority shall have the authority to take
24 all steps, make all conditions and do all things necessary
25 in order so to issue such certificates or make such other
26 arrangements including, without limitation, establishing for
27 the State a qualified mortgage credit certificate program,
28 enforcing and carrying out that program, and giving notice
29 of the provisions of the program.
30 Section 35-170. The Authority shall create and establish
31 a special fund to secure the Housing Development Bonds
32 issued under this Act. The fund shall be designated as "the
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1 housing capital reserve fund." The Authority shall pay into
2 the housing capital reserve fund:
3 (a) all moneys specifically appropriated, earmarked or
4 made available by gift, grant, or otherwise, from any
5 source, public or private, for the purposes of meeting
6 expenditures authorized from such fund;
7 (b) any proceeds of sale of notes or bonds, to the
8 extent provided in the resolution of the Authority
9 authorizing the issuance thereof;
10 (c) any moneys transferred into the fund by the
11 Authority from any other fund authorized by this Act,
12 in such amounts and at such times as the Authority deems
13 necessary for the purposes of this fund; and
14 (d) any other income or moneys available to the
15 Authority from any other source or sources for the purpose of
16 such fund.
17 All moneys held in the housing capital reserve fund,
18 except as hereinafter provided, shall be used solely
19 for the payment of the principal or annual sinking fund
20 payment of housing bonds of the Authority as the same
21 mature, the purchase of such bonds of the Authority, the
22 payment of interest on such bonds of the Authority or the
23 payment of any redemption premium required to be paid
24 when such bonds are redeemed prior to maturity. Moneys in
25 the housing capital reserve fund shall not be withdrawn at
26 any time in such amount as would reduce the amount of the
27 fund to less than the maximum amount of principal and
28 interest or annual sinking fund payment, whichever is less,
29 maturing and becoming due in any succeeding calendar year on
30 all housing bonds of the Authority then outstanding,
31 except for the purpose of paying principal of and
32 interest on such bonds of the Authority becoming due, whether
33 at maturity or by annual sinking fund payment, and for the
34 payment of which other moneys of the Authority are
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1 not available.
2 For purposes of this Section the word "bonds" shall mean
3 only those bonds of the Authority issued for the purpose
4 of making mortgage loans to nonprofit corporations and
5 limited-profit entities to finance multi-family rental
6 and cooperative developments and designated as "Housing
7 Development Bonds" by the Authority.
8 Section 35-175. In computing the amount of the housing
9 capital reserve fund for the purposes of this Act, securities
10 in which all or a portion of the fund is invested
11 shall be valued at par, or if purchased at less than par,
12 at their cost to the Authority.
13 Section 35-180. The Authority is authorized to provide
14 to nonprofit corporations, housing corporations and
15 limited-profit entities such advisory, consultative
16 training and educational services as will assist them to
17 become owners of housing constructed or rehabilitated
18 under this Act. Advisory and education services may include,
19 but are not necessarily limited to, technical and
20 professional planning assistance, the preparation and
21 promulgation of organizational planning and development
22 outlines and guides, consultation services, training
23 courses, seminars and lectures, the preparation and
24 dissemination of newsletters and other printed materials
25 and the services of field representatives. The
26 Authority is also authorized to provide nonprofit
27 corporations, housing corporations and limited-profit
28 entities with advisory, consultative, technical, training
29 and educational services in the management of housing,
30 including but not limited to home management and training
31 and advisory services for the residents of housing so
32 as to promote efficient and harmonious management thereof.
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1 ARTICLE 40
2 HEALTH FACILITIES DEVELOPMENT
3 Section 40-5. The Authority shall have the following
4 powers:
5 (a) To fix and revise from time to time and charge
6 and collect rates, rents, fees and charges for the use
7 of and for the services furnished or to be furnished by a
8 project or other health facilities owned, financed or
9 refinanced by the Authority or any portion thereof and to
10 contract with any person, partnership, association or
11 corporation or other body, public or private, in respect
12 thereto; to coordinate its policies and procedures and
13 cooperate with recognized health facility rate setting
14 mechanisms which may now or hereafter be established.
15 (b) To establish rules and regulations for the use
16 of a project or other health facilities owned, financed or
17 refinanced by the Authority or any portion thereof and to
18 designate a participating health institution as its agent to
19 establish rules and regulations for the use of a project
20 or other health facilities owned by the Authority
21 undertaken for that participating health institution.
22 (c) To establish or contract with others to carry out on
23 its behalf a health facility project cost estimating service
24 and to make this service available on all projects to
25 provide expert cost estimates and guidance to the
26 participating health institution and to the Authority.
27 In order to implement this service and, through it, to
28 contribute to cost containment, the Authority shall have
29 the power to require such reasonable reports and documents
30 from health facility projects as may be required for this
31 service and for the development of cost reports and
32 guidelines. The Authority may appoint a Technical
33 Committee on Health Facility Project Costs and Cost
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1 Containment.
2 (d) To make mortgage or other secured or unsecured loans
3 to or for the benefit of any participating health
4 institution for the cost of a project in accordance with an
5 agreement between the Authority and the participating
6 health institution; provided that no such loan shall exceed
7 the total cost of the project as determined by the
8 participating health institution and approved by the
9 Authority; provided further that such loans may be made to
10 any entity affiliated with a participating health
11 institution if the proceeds of such loan are made available
12 to or applied for the benefit of such participating health
13 institution.
14 (e) To make mortgage or other secured or unsecured loans
15 to or for the benefit of a participating health institution
16 in accordance with an agreement between the Authority and
17 the participating health institution to refund
18 outstanding obligations, loans, indebtedness or advances
19 issued, made, given or incurred by such participating
20 health institution for the cost of a project; including the
21 function to issue bonds and make loans to or for the benefit
22 of a participating health institution to refinance
23 indebtedness incurred by such participating health
24 institution in projects undertaken and completed or for
25 other health facilities acquired prior to or after the
26 enactment of this Act when the Authority finds that such
27 refinancing is in the public interest, and either
28 alleviates a financial hardship of such participating
29 health institution, or is in connection with other
30 financing by the Authority for such participating health
31 institution or may be expected to result in a lessened
32 cost of patient care and a saving to third parties, including
33 government, and to others who must pay for care, or
34 any combination thereof; provided further that such loans may
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1 be made to any entity affiliated with a participating
2 health institution if the proceeds of such loan are
3 made available to or applied for the benefit of such
4 participating health institution.
5 (f) To mortgage all or any portion of a project or
6 other health facilities and the property on which any such
7 project or other health facilities are located whether owned
8 or thereafter acquired, and to assign or pledge mortgages,
9 deeds of trust, indentures of mortgage or trust or
10 similar instruments, notes, and other securities of
11 participating health institutions to which or for the benefit
12 of which the Authority has made loans or of entities
13 affiliated with such institutions and the revenues therefrom,
14 including payments or income from any thereof owned or
15 held by the Authority, for the benefit of the holders of
16 bonds issued to finance such project or health facilities or
17 issued to refund or refinance outstanding
18 obligations, loans, indebtedness or advances of
19 participating health institutions as permitted by this
20 Act.
21 (g) To lease to a participating health institution
22 the project being financed or refinanced or other health
23 facilities conveyed to the Authority in connection with such
24 financing or refinancing, upon such terms and conditions as
25 the Authority shall deem proper, and to charge and
26 collect rents therefor and to terminate any such lease upon
27 the failure of the lessee to comply with any of the
28 obligations thereof; and to include in any such lease, if
29 desired, provisions that the lessee thereof shall have
30 options to renew the lease for such period or periods and at
31 such rent as shall be determined by the Authority or to
32 purchase any or all of the health facilities or that upon
33 payment of all of the indebtedness incurred by the Authority
34 for the financing of such project or health facilities or for
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1 refunding outstanding obligations, loans, indebtedness or
2 advances of a participating health institution, then the
3 Authority may convey any or all of the project or such
4 other health facilities to the lessee or lessees
5 thereof with or without consideration.
6 (h) To make studies of needed health facilities that
7 could not sustain a loan were it made under this Act and to
8 recommend remedial action to the General Assembly; to do the
9 same with regard to any laws or regulations that prevent
10 health facilities from benefiting from this Act.
11 (i) To assist the Department of Commerce and
12 Community Affairs to establish and implement a program to
13 assist health facilities to identify and arrange financing
14 for energy conservation projects in buildings and facilities
15 owned or leased by health facilities.
16 (j) To assist the Department of Human Services
17 in establishing a low interest loan program to help child
18 care centers and family day care homes serving children of
19 low income families under Section 22.4 of the Children and
20 Family Services Act.
21 Section 40-10. By means of this Act it is the intent
22 of the General Assembly to provide a measure of
23 assistance and alternative methods of financing to
24 participating health institutions to aid them in providing
25 needed health facilities that will assure admission and
26 care of high quality to all who need it and in dealing with
27 the cash requirements of such facilities, whether resulting
28 from capital expenditures, operating expenditures, delays
29 in the receipt of payments for services or otherwise.
30 Section 40-15. The Authority is authorized and
31 empowered to acquire, directly or by and through a
32 participating health institution as its agent, by purchase
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1 solely from funds provided under the authority of this
2 Act, or by gift or legacy, such lands, structures, property,
3 real or personal, rights, rights-of-way, franchises,
4 easements and other interests in lands, including lands
5 lying under water and riparian rights, which are located
6 within the State as it may deem necessary or convenient
7 for the construction or operation of a project, upon such
8 terms and at such prices as may be considered by it to be
9 reasonable and can be agreed upon between it and the owner
10 thereof, and to take title thereto in the name of the
11 Authority or in the name of a participating health
12 institution as its agent.
13 Section 40-20. It is the intent and purpose of this Act
14 that the exercise by the Authority of the powers granted
15 to it shall be in all respects for the benefit of the people
16 of this state to assist them to provide needed health
17 facilities of the number, size, type, distribution, and
18 operation that will assure admission and care of
19 high-quality to all who need it. To this end, the Authority
20 is charged with the responsibility to identify and
21 study all projects which are determined by health planning
22 agencies to be needed but which could not sustain a loan were
23 such to be made to it under this Act. The Authority shall,
24 following such study, formulate and recommend to the
25 General Assembly, such amendments to this and other Acts,
26 and such other specific measures as grants, loan
27 guarantees, interest subsidies or other actions as may be
28 provided for by the state which actions would render the
29 construction and operation of such needed health facility
30 feasible and in the public interest. Further, the
31 Authority is charged with responsibility to identify and
32 study any laws or regulations which it finds handicaps or
33 bars a needed health facility from participating in the
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1 benefits of this Act and to recommend to the General Assembly
2 such actions as will remedy such situation.
3 Section 40-25. The Authority shall fix, revise, charge
4 and collect rents for the use of each health facility owned
5 by the Authority and contract with any person, partnership,
6 association or corporation, or other body, public or private,
7 in respect thereof. Each lease entered into by the
8 Authority with a participating health institution and each
9 agreement, note, mortgage or other instrument evidencing
10 the obligations of a participating health institution to
11 the Authority shall provide that the rents or principal,
12 interest and other charges payable by or for the benefit of
13 the participating health institution or the process of
14 accounts receivable purchased by the Authority from the
15 participating health institution shall be sufficient at all
16 times, (a) to pay its share of the administrative costs
17 and expenses of the Authority, (b) to pay the cost of
18 maintaining, repairing and operating the project and
19 other related health facilities and each and every portion
20 thereof, (c) to pay the principal of, the premium, if any,
21 and the interest on outstanding bonds of the Authority
22 issued in respect of such project as the same shall become
23 due and payable, and (d) to create and maintain reserves
24 which may but need not be required or provided for in the
25 bond resolution relating to such bonds of the Authority. The
26 Authority shall pledge the revenues derived and to be derived
27 from a project or other related health facilities or from
28 a participating health institution or an affiliate thereof
29 for the purposes specified in (a), (b), (c) and (d) of the
30 preceding sentence and additional bonds may be issued which
31 may rank on a parity with other bonds relating to the
32 project to the extent and on the terms and conditions
33 provided in the bond resolution. Such pledge shall be
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1 valid and binding from the time when the pledge is made; the
2 revenues so pledged by the Authority shall immediately be
3 subject to the lien of such pledge without any physical
4 delivery thereof or further act and the lien of any
5 such pledge shall be valid and binding as against all
6 parties having claims of any kind in tort, contract or
7 otherwise against the Authority, irrespective of whether
8 such parties have notice thereof. Neither the bond
9 resolution nor any financing statement, continuation
10 statement or other instrument by which a pledge is created or
11 by which the Authority's interest in revenues is assigned
12 need be filed or recorded in any public records in order to
13 perfect the lien thereof as against third parties except that
14 a copy of the bond resolution shall be filed in the
15 records of the Authority and with the Secretary of State.
16 Section 40-30. It is intended that all private health
17 facilities in this State be enabled to benefit from and
18 participate in the provisions of this Act. To this end, all
19 private health facilities operating, or authorized to
20 be operated, under any statute of this State are
21 authorized and empowered to undertake projects, as defined
22 in this Act, and to utilize the financing sources and methods
23 of repayment provided by this Act, the provisions of
24 any other laws to the contrary notwithstanding.
25 Notwithstanding the provisions of any other law to the
26 contrary, the State of Illinois and any political
27 subdivision, agency, instrumentality, district or
28 municipality thereof owning or operating any health
29 facility is hereby authorized to take all actions necessary
30 or appropriate and to execute and deliver any and all
31 evidences of indebtedness and agreements, including loan
32 agreements, leases and agreements providing for credit
33 enhancement, as may be necessary to permit such
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1 publicly owned health facility to avail itself of the
2 provisions of this Act. Any evidence of indebtedness or
3 agreement entered into by the State or any political
4 subdivision, agency, instrumentality, district or
5 municipality thereof pursuant to this Act may provide for the
6 payment of interest at such rate or rates as shall be
7 determined by the issuer thereof or obligor thereunder and
8 may be issued or entered into without referendum approval;
9 provided, that this Act shall not be deemed to be
10 independent authority for levy of any taxes to pay an
11 obligation owing from the State or any political
12 subdivision, agency, instrumentality, district or
13 municipality thereof and arising hereunder or incurred in
14 connection with a financing pursuant hereto.
15 ARTICLE 45
16 AUTHORITY DEBTS, CONTRACTS AND REPORTS
17 Section 45-5. The Authority may not have outstanding at
18 any one time bonds for any of its corporate purposes in an
19 aggregate principal amount exceeding $28,000,000,000,
20 excluding bonds issued by the Authority to refund the bonds
21 of the Authority or bonds of the Predecessor Authorities.
22 Section 45-10. The Authority may issue a single bond
23 issue pursuant to this Act for a group of industrial
24 projects, a group of corporations or a group of business
25 entities, a group of units of local government or other
26 borrowers or any combination thereof. A bond issue for
27 multiple projects as provided in this Section shall be
28 subject to all requirements for bond issues as established by
29 this Act.
30 Section 45-15. In order to preserve and protect the
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1 general obligation of bonds issued by the Illinois Housing
2 Development Authority ("IHDA") prior to its consolidation
3 into the Authority, the administrative fund and any other
4 funds of IHDA in existence on the effective date of this Act
5 not pledged to the repayment of bonds other than IHDA's
6 general obligation bonds shall be segregated apart from all
7 other funds of the Authority and available solely for payment
8 of IHDA's general obligation bonds assumed by the Authority
9 and any general obligation bonds for housing purposes issued
10 by the Authority and for activities of the Authority in
11 connection with housing.
12 Section 45-20. The Authority may maintain an office or
13 branch office anywhere in the State, and may utilize, without
14 the payment of rent, any office facilities which the State
15 may conveniently make available to it.
16 Section 45-25. The Authority shall not have power to
17 levy taxes for any purpose whatsoever.
18 Section 45-30. The Authority shall not incur any
19 obligations for salaries, office or other administrative
20 expenses prior to the making of appropriations to meet such
21 expenses. Interest earned from investments of any funds of
22 the Authority and repayments of principal of such investments
23 shall be available for appropriation by the Board for the
24 corporate purposes of the Authority.
25 Section 45-35. The State and all counties, cities,
26 villages, incorporated towns and other municipal
27 corporations, political subdivisions and public bodies, and
28 public officers of any thereof, all banks, bankers, trust
29 companies, savings banks and institutions, building and loan
30 associations, savings and loan associations, investment
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1 companies and other persons carrying on a banking business,
2 all insurance companies, insurance associations and other
3 persons carrying on an insurance business and all executors,
4 administrators, guardians, trustees and other fiduciaries may
5 legally invest any sinking funds, moneys or other funds
6 belonging to them or within their control in any bonds or
7 evidences of indebtedness issued pursuant to this Act or
8 issued by the Predecessor Authorities, it being the purpose
9 of this section to authorize the investment in such bonds or
10 evidences of indebtedness of all sinking, insurance,
11 retirement, compensation, pension and trust funds, whether
12 owned or controlled by private or public persons or officers;
13 provided, however, that nothing contained in this section may
14 be construed as relieving any person from any duty of
15 exercising reasonable care in selecting securities for
16 purchase or investment.
17 Section 45-40. Under no circumstances shall any bonds or
18 other evidences of indebtedness issued by the Authority or
19 the Predecessor Authorities under this Act or under any other
20 law be or become an indebtedness or obligation of the State
21 of Illinois, within the purview of any constitutional
22 limitation or provision, and it shall be plainly stated on
23 the face of each bond or other evidence of indebtedness that
24 it does not constitute such an indebtedness or obligation but
25 is payable solely from the revenues or income of the
26 Authority.
27 Section 45-45. The Authority shall appoint a secretary
28 and treasurer, who may, but need not, be a member or members
29 of the Authority to hold office during the pleasure of the
30 Authority. Before entering upon the duties of the respective
31 offices such person or persons shall take and subscribe to
32 the constitutional oath of office, and the treasurer shall
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1 execute a bond with corporate sureties to be approved by the
2 Authority. The bond shall be payable to the Authority in
3 whatever penal sum may be directed by the Authority
4 conditioned upon the faithful performance of the duties of
5 the office and the payment of all money received by him
6 according to law and the orders of the Authority. The
7 Authority may, at any time, require a new bond from the
8 treasurer in such penal sum as may then be determined by the
9 Authority. The obligation of the sureties shall not extend
10 to any loss sustained by the insolvency, failure or closing
11 of any savings and loan association or national or state bank
12 wherein the treasurer has deposited funds if the bank or
13 savings and loan association has been approved by the
14 Authority as a depository for these funds. The oaths of
15 office and the treasurer's bond shall be filed in the
16 principal office of the Authority.
17 All funds of the Authority, including without limitation,
18 grants or loans from the federal government, the State or any
19 agency or instrumentality thereof, fees, service charges,
20 interest or other investment earnings on its funds, payments
21 of principal of and interest on loans of its funds and
22 revenue from any other source, except funds the application
23 of which is otherwise specifically provided for by
24 appropriation, resolution, grant agreement, lease agreement,
25 loan agreement, indenture, mortgage or trust agreement or
26 other agreement, may be held by the Authority in its treasury
27 and be generally available for expenditure by the Authority
28 for any of the purposes authorized by this Act. In
29 additional to investments authorized by Section 2 of "An Act
30 relating to certain investments of public funds by public
31 agencies", approved July 23, 1943, as amended, funds of the
32 Authority may be invested in (a) obligations issued by any
33 State, unit of local government or school district which
34 obligations are rated at the time of purchase by a national
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1 rating service within the two highest rating classifications
2 without regard to any rating refinement or gradation by
3 numerical or other modifier, or (b) equity securities of an
4 investment company registered under the Investment Company
5 Act of 1940 whose sole assets, other than cash and other
6 temporary investments, are obligations which are eligible
7 investments for the Authority, provided that not more than
8 20% of the assets of the investment company may consist of
9 unrated obligations of the type described in clause (a) which
10 the Board of Directors of the investment company has
11 determined to be of comparable quality to rated obligations
12 described in clause (a).
13 Funds appropriated by the General Assembly to the
14 Authority shall be held in the State Treasury unless this Act
15 or the act making the appropriation specifically states that
16 the monies are to be held in or appropriated to the
17 Authority's treasury.
18 Such funds as are authorized to be held in the
19 Authority's treasury and deposited in any bank or savings and
20 loan association and placed in the name of the Authority
21 shall be withdrawn or paid out only by check or draft upon
22 the bank or savings and loan association, signed by the
23 treasurer and countersigned by the Chairperson of the
24 Authority. The Authority may designate any of its members or
25 any officer or employee of the Authority to affix the
26 signature of the Chairperson and another to affix the
27 signature of the treasurer to any check or draft for payment
28 of salaries or wages and for payment of any other obligations
29 of not more than $2,500.
30 In case any officer whose signature appears upon any
31 check or draft, issued pursuant to this Act, ceases to hold
32 his office before the delivery thereof to the payee, his
33 signature nevertheless shall be valid and sufficient for all
34 purposes with the same effect as if he had remained in office
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1 until delivery thereof.
2 No bank or savings and loan association shall receive
3 public funds as permitted by this Section, unless it has
4 complied with the requirements established pursuant to
5 Section 6 of "An Act relating to certain investments of
6 public funds by public agencies", approved July 23, 1943, as
7 now or hereafter amended.
8 Section 45-50. (a) No member, officer, agent, or
9 employee of the Authority shall, in his or her own name or in
10 the name of a nominee, be an officer or director or hold an
11 ownership interest of more than 7 1/2% in any person,
12 association, trust, corporation, partnership, or other entity
13 that is, in its own name or in the name of a nominee, a party
14 to a contract or agreement upon which the member, officer,
15 agent, or employee may be called upon to act or vote.
16 (b) With respect to any direct or any indirect interest,
17 other than an interest prohibited in subsection (a), in a
18 contract or agreement upon which the member, officer, agent,
19 or employee may be called upon to act or vote, a member,
20 officer, agent, or employee of the Authority shall disclose
21 the interest to the secretary of the Authority before the
22 taking of final action by the Authority concerning the
23 contract or agreement and shall so disclose the nature and
24 extent of the interest and his or her acquisition of it, and
25 those disclosures shall be publicly acknowledged by the
26 Authority and entered upon the minutes of the Authority. If
27 a member, officer, agent, or employee of the Authority holds
28 such an interest, then he or she shall refrain from any
29 further official involvement in regard to the contract or
30 agreement, from voting on any matter pertaining to the
31 contract or agreement, and from communicating with other
32 members of the Authority or its officers, agents, and
33 employees concerning the contract or agreement.
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1 Notwithstanding any other provision of law, any contract or
2 agreement entered into in conformity with this subsection (b)
3 shall not be void or invalid by reason of the interest
4 described in this subsection, nor shall any person so
5 disclosing the interest and refraining from further official
6 involvement as provided in this subsection be guilty of an
7 offense, be removed from office, or be subject to any other
8 penalty on account of that interest.
9 (c) Any contract or agreement made in violation of
10 paragraphs (a) or (b) of this Section shall be null and void
11 and give rise to no action against the Authority.
12 Section 45-55. The fiscal year for the Authority shall
13 commence on the first of July. As soon after the end of each
14 fiscal year as may be expedient, the Authority shall cause to
15 be prepared and printed a complete report and financial
16 statement of its operations and of its assets and
17 liabilities. A reasonably sufficient number of copies of such
18 report shall be printed for distribution to persons
19 interested, upon request, and a copy thereof shall be filed
20 with the Governor, the Secretary of State, the State
21 Comptroller, the Secretary of the Senate and the Chief Clerk
22 of the House of Representatives.
23 Section 45-60. For the purposes of the Illinois
24 Securities Law of 1953, bonds issued by the Authority shall
25 be deemed to be securities issued by a public instrumentality
26 of the State of Illinois.
27 Section 45-65. Tax Exemption. The exercise of the
28 powers granted in this Act are in all respects for the
29 benefit of the people of Illinois and in consideration
30 thereof the bonds issued by the Authority for units of local
31 government pursuant to Article 20 of this Act issued in total
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1 principal amount per issue not to exceed $10,000,000 shall be
2 free from all taxation by the State or its political
3 subdivisions, except for estate, transfer and inheritance
4 taxes. For purposes of Section 250 of the Illinois Income
5 Tax Act, the exemption of the income from such bonds shall
6 terminate after all of the bonds have been paid. The amount
7 of such income that shall be added and then subtracted on the
8 Illinois income tax return of a taxpayer, pursuant to Section
9 203 of the Illinois Income Tax Act, from federal adjusted
10 gross income or federal taxable income in computing Illinois
11 base income shall be the interest net of any bond premium
12 amortization. The tax exemptions of outstanding bonds issued
13 by the Predecessor Authorities pursuant to Sections of the
14 enabling Acts of the Predecessor Authorities applicable to
15 those bonds when issued shall remain valid and continue to be
16 recognized by the State until final payment of those bonds,
17 notwithstanding the repeal of the enabling Acts of the
18 Predecessor Authorities.
19 ARTICLE 50
20 MISCELLANEOUS
21 Section 50-5. Severability. If any provision of this
22 Act is held invalid, such provision shall be deemed to be
23 excised and the invalidity thereof shall not affect any of
24 the other provisions of this Act. If the application of any
25 provision of this Act to any person or circumstance is held
26 invalid, it shall not affect the application of such
27 provision to such persons or circumstances other than those
28 as to which it is held invalid.
29 Section 50-10. Tax avoidance. Notwithstanding any
30 other provision of law, the Authority shall not enter into
31 any agreement providing for the purchase and lease of
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1 tangible personal property that results in the avoidance
2 of taxation under the Retailers' Occupation Tax Act, the Use
3 Tax Act, the Service Use Tax Act, or the Service Occupation
4 Tax Act, without the prior written consent of the Governor.
5 Section 50-15. Transfer of functions from previously
6 existing authorities to the Illinois State Finance Authority.
7 The Illinois State Finance Authority created by the Illinois
8 State Finance Authority Act shall succeed to, assume and
9 exercise all rights, powers, duties and responsibilities
10 formerly exercised by the following Authorities and entities
11 (herein called the "Predecessor Authorities") prior to the
12 abolition of the Predecessor Authorities by this Act:
13 Illinois Development Finance Authority
14 Illinois Housing Development Authority
15 Illinois Student Assistance Commission
16 Illinois Farm Development Authority
17 Illinois Health Facilities Authority
18 Illinois Educational Facilities Authority
19 Illinois Community Development Finance Corporation
20 Illinois Rural Bond Bank
21 Joliet Arsenal Development Authority
22 Illinois Research Park Authority
23 Quad Cities Regional Economic Development Authority
24 Southwestern Illinois Development Authority
25 Tri-County River Valley Development Authority
26 Upper Illinois River Valley Development Authority
27 Will-Kankakee Regional Development Authority
28 State Park Revenue Bond Commission
29 All books, records, papers, documents and pending
30 business in any way pertaining to the Predecessor Authorities
31 are transferred to the Illinois State Finance Authority, but
32 any rights or obligations of any person under any contract
33 made by, or under any rules, regulations, uniform standards,
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1 criteria and guidelines established or approved by, such
2 Predecessor Authorities shall be unaffected thereby. All
3 bonds, notes or other evidences of indebtedness outstanding
4 on the effective date of this Act shall be unaffected by the
5 transfer of functions to the Illinois State Finance
6 Authority. No rule, regulation, standard, criteria or
7 guideline promulgated, established or approved by the
8 Predecessor Authorities pursuant to an exercise of any right,
9 power, duty or responsibility assumed by and transferred to
10 the Illinois State Finance Authority shall be affected by
11 this Act, and all such rules, regulations, standards,
12 criteria and guidelines shall become those of the Illinois
13 Finance Authority until such time as they are amended or
14 repealed by the Illinois Finance Authority.
15 Section 50-20. Any reference in statute, in rule, or
16 otherwise to the following entities is a reference to the
17 Illinois State Finance Authority created by this Act:
18 The Illinois Development Finance Authority.
19 The Illinois Farm Development Authority.
20 The Illinois Health Facilities Authority.
21 The Illinois Housing Development Authority.
22 The Illinois Research Park Authority.
23 The Illinois Rural Bond Bank.
24 The State Parks Revenue Bond Commission.
25 The Joliet Arsenal Development Authority.
26 The Quad Cities Regional Economic Development Authority.
27 The Southwestern Illinois Development Authority.
28 The Tri-County River Valley Development Authority.
29 The Upper Illinois River Valley Authority.
30 The Will-Kankakee Regional Development Authority.
31 The Illinois Student Assistance Commission.
32 The Illinois Educational Facilities Authority.
33 The Illinois Community Development Finance Corporation.
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1 Section 50-25. Any reference in statute, in rule, or
2 otherwise to the Prairie State 2000 Authority is a reference
3 to the Department of Commerce and Community Affairs.
4 Section 50-30. Any reference in statute, in rule, or
5 otherwise to the following Acts is a reference to this Act:
6 The Illinois Development Finance Authority Act.
7 The Illinois Farm Development Act.
8 The Illinois Health Facilities Authority Act.
9 The Illinois Housing Development Act.
10 The Illinois Research Park Authority Act.
11 The Rural Bond Bank Act.
12 The State Parks Revenue Bond Act.
13 The Joliet Arsenal Development Authority Act.
14 The Quad Cities Regional Economic Development
15 Authority Act.
16 The Southwestern Illinois Development Authority Act.
17 The Tri-County River Valley Development Authority Act.
18 The Upper Illinois River Valley Development
19 Authority Act.
20 The Will-Kankakee Development Authority Law.
21 The Higher Education Student Assistance Act.
22 The Illinois Educational Facilities Authority Act.
23 The Illinois Community Development Finance Corporation Act.
24 Section 50-35. Any reference in statute, in rule, or
25 otherwise to the Prairie State 2000 Authority Act is a
26 reference to Section 605-455 of the Department of Commerce
27 and Community Affairs Law of the Civil Administrative Code of
28 Illinois.
29 ARTICLE 900
30 AMENDATORY PROVISIONS
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1 Section 900. The Department of Commerce and Community
2 Affairs Law of the Civil Administrative Code of Illinois is
3 amended by adding Section 605-455 as follows:
4 (20 ILCS 605/605-455 new)
5 Sec. 605-455. Educational and vocational training.
6 (a) As of the effective date of this amendatory Act of
7 the 92nd General Assembly, the Department of Commerce and
8 Community Affairs shall assume all rights, obligations and
9 liabilities previously held by the Prairie State 2000
10 Authority. The Department shall take possession of all
11 funds, books, records, office equipment and any other
12 property, which was owned or possessed by the Authority.
13 (b) Declaration of findings and purpose.
14 (1) The General Assembly finds that:
15 (A) the State of Illinois possesses a highly
16 talented, conscientious and industrious labor force,
17 unmatched by any other state or nation;
18 (B) substantial changes being experienced in
19 all economic sectors and the rapid growth of
20 industries which employ new technologies have caused
21 severe economic and employment dislocations in this
22 State;
23 (C) such dislocations have caused substantial
24 hardships for all people of the State of Illinois;
25 (D) there exists a large surplus of workers
26 throughout the State who are ready, willing and able
27 to work but who lack the appropriate skills to
28 perform the specialized tasks for modern business
29 and industry;
30 (E) a significant barrier to re-employment and
31 new employment is the financial cost of
32 participation in high quality technical and
33 educational programs which will qualify an
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1 individual for modern employment opportunities;
2 (F) a substantial impediment to attracting new
3 businesses and to encouraging the modernization of
4 existing businesses in Illinois has been the
5 shortage of workers who can perform the specialized
6 tasks required by the new technologies of modern
7 business;
8 (G) it is the duty and responsibility of the
9 State to offer educational and vocational training
10 opportunities to its citizens.
11 (2) The General Assembly declares it is the policy
12 of the State of Illinois to encourage continuing
13 educational, technical and vocational training by
14 providing a source of assistance to individuals who wish
15 to improve their skills, talent and education and by
16 providing training grants and loans to employers who are
17 retraining workers threatened with layoff or who are
18 increasing the number of jobs available to Illinois
19 workers, are expanding the tax base in Illinois or are
20 increasing Illinois exports.
21 (3) The purpose of this Section is to establish
22 employment training programs which foster job creation,
23 reduce employer unemployment costs, and meet the needs of
24 the economy for skilled workers by providing job-linked
25 training for unemployment insurance claimants and
26 potentially displaced workers who could become such
27 claimants.
28 (c) Benefits - Generally.
29 (1) All benefits provided by this Section shall be
30 in the form of tuition or educational fee vouchers
31 redeemable by a qualified educational or vocational
32 training institution for reimbursable services performed
33 by the institution on behalf of the individual presenting
34 the voucher.
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1 (2) Each tuition or educational fee voucher shall
2 state on its face the value of such voucher and the
3 conditions to be met for partial or full redemption.
4 (3) Each tuition or education fee voucher shall
5 refer to all provisions, rules and regulations governing
6 the proper use of such voucher and all penalties which
7 may result in the event such voucher is not used in
8 accordance with such provisions, rules and regulations.
9 (d) Qualification for Benefits. An individual is
10 entitled to receive benefits under this Section if it is
11 determined that:
12 (1) the individual is (A) within a benefit year as
13 defined in the Unemployment Insurance Act or has been
14 employed as defined under Section 206 of the Unemployment
15 Insurance Act a minimum of 3 of the 10 years previous to
16 the date of an application for benefits; or (B) employed
17 but is in need of additional skills for continued
18 employment and would be determined to meet the
19 requirements of the Unemployment Insurance Act to
20 establish a benefit year if such individual became
21 unemployed through a lack of suitable work opportunities;
22 or (C) certified to be a dislocated worker under the
23 federal Job Training Partnership Act or any successor
24 federal Act;
25 (2) the individual has enrolled in a job-linked
26 program at a qualified institution, which program has
27 been certified by the Director as eligible for
28 reimbursement through issuance of vouchers from the
29 Prairie State 2000 Fund; and established vocational goals
30