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Public Act 91-0543
HB0063 Enrolled LRB9100535NTsb
AN ACT in relation to real estate.
Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
Section 5. The State Finance Act is amended by adding
Sections 5.490 and 8.36 as follows:
(30 ILCS 105/5.490 new)
Sec. 5.490. The Airport Land Loan Revolving Fund.
(30 ILCS 105/8.36 new)
Sec. 8.36. Airport Land Loan Revolving Fund.
Appropriations for loans to public airport owners by the
Department of Transportation pursuant to Section 34b of the
Illinois Aeronautics Act shall be payable from the Airport
Land Loan Revolving Fund.
Section 10. The Illinois Aeronautics Act is amended by
adding Section 34b as follows:
(620 ILCS 5/34b new)
Sec. 34b. Airport Land Loan Program.
(a) The Department may make loans to public airport
owners for the purchase of any real estate interests as may
be needed for essential airport purposes, including future
needs, subject to the following conditions:
(1) loans may be made only to public airport owners
that are operating an airport as of January 1, 1999; and
(2) loans may not be made for airports that provide
scheduled commercial air service in counties of greater
than 5,000,000 population. The loans are payable from
the Airport Land Loan Revolving Fund, subject to
appropriation. All repayments of loans made pursuant to
this Section, including interest thereon and penalties,
shall be deposited in the Airport Land Loan Revolving
Fund. The Treasurer shall deposit all investment
earnings arising from balances in the Airport Land Loan
Revolving Fund in that Fund.
(b) All loans under this Section shall be made by
contract between the Department and the public airport owner,
which contract shall include the following provisions:
(1) The annual rate of interest shall be 2 percent
below the Prime Rate charged by banks, as published by
the Federal Reserve Board, in effect at the time the
Department approves the loan, but in no event shall less
than 2 percent be charged.
(2) The term of any loan shall not exceed five
years, but it may be for less by mutual agreement.
(3) Loan payments shall be scheduled in equal
amounts for the periods determined under paragraph (4) of
this Section. The loan payments shall be calculated so
that the loan is completely repaid, with interest, on
outstanding balances, by the end of the term determined
under paragraph (2) of this Section. There shall be no
penalty for early payment ahead of the payment schedule.
(4) The period of loan payments shall be annual,
unless by mutual agreement a period of less than one year
is chosen.
(5) The loan shall be secured with the land
purchased, in whole or in part, with the loan and
considered as collateral. The public airport owner shall
assign a first priority interest in the property to the
State.
(6) If the loan payment is not made within 15 days
after the scheduled date determined under paragraph (3)
of this Section, a penalty of 10% of the payment shall be
assessed. If 30 days after the scheduled payment date no
payment has been received, the loan shall be considered
in default.
(7) As soon as a loan is considered in default, the
Department shall notify the public airport owner and
attempt to enter into a renegotiation of the loan payment
amounts and schedule determined under paragraph (3) of
this Section. In no case shall the term of the loan be
extended beyond the initial term determined under
paragraph (2) of this Section; nor shall the interest
rate be lowered nor any interest be forgiven. If a
renegotiation of loan payment amounts and schedule is
obtained to the Department's satisfaction within 30 days
of notification of default, then the new payment schedule
shall replace the one determined by paragraph (3) of this
Section and shall be used to measure compliance with the
loan for purposes of default. If after 30 days of
notification of default the Department has not obtained a
renegotiation to its satisfaction, the Department shall
declare the loan balance due and payable immediately. If
the public airport owner cannot immediately pay the
balance of the loan, the Department shall proceed to
foreclose.
(c) The Department may promulgate any rules that it
finds appropriate to implement this Airport Land Loan
Program.
(d) The Airport Land Loan Revolving Fund is created in
the State Treasury.
Section 99. Effective date. This Act takes effect upon
becoming law.
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