Rep. Frank J. Mautino

Filed: 3/27/2014

 

 


 

 


 
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1
AMENDMENT TO HOUSE BILL 3821

2    AMENDMENT NO. ______. Amend House Bill 3821 by replacing
3everything after the enacting clause with the following:
 
4    "Section 5. The Illinois Finance Authority Act is amended
5by changing Section 801-40 as follows:
 
6    (20 ILCS 3501/801-40)
7    Sec. 801-40. In addition to the powers otherwise authorized
8by law and in addition to the foregoing general corporate
9powers, the Authority shall also have the following additional
10specific powers to be exercised in furtherance of the purposes
11of this Act.
12    (a) The Authority shall have power (i) to accept grants,
13loans or appropriations from the federal government or the
14State, or any agency or instrumentality thereof, to be used for
15the operating expenses of the Authority, or for any purposes of
16the Authority, including the making of direct loans of such

 

 

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1funds with respect to projects, and (ii) to enter into any
2agreement with the federal government or the State, or any
3agency or instrumentality thereof, in relationship to such
4grants, loans or appropriations.
5    (b) The Authority shall have power to procure and enter
6into contracts for any type of insurance and indemnity
7agreements covering loss or damage to property from any cause,
8including loss of use and occupancy, or covering any other
9insurable risk.
10    (c) The Authority shall have the continuing power to issue
11bonds for its corporate purposes. Bonds may be issued by the
12Authority in one or more series and may provide for the payment
13of any interest deemed necessary on such bonds, of the costs of
14issuance of such bonds, of any premium on any insurance, or of
15the cost of any guarantees, letters of credit or other similar
16documents, may provide for the funding of the reserves deemed
17necessary in connection with such bonds, and may provide for
18the refunding or advance refunding of any bonds or for accounts
19deemed necessary in connection with any purpose of the
20Authority. The bonds may bear interest payable at any time or
21times and at any rate or rates, notwithstanding any other
22provision of law to the contrary, and such rate or rates may be
23established by an index or formula which may be implemented or
24established by persons appointed or retained therefor by the
25Authority, or may bear no interest or may bear interest payable
26at maturity or upon redemption prior to maturity, may bear such

 

 

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1date or dates, may be payable at such time or times and at such
2place or places, may mature at any time or times not later than
340 years from the date of issuance, may be sold at public or
4private sale at such time or times and at such price or prices,
5may be secured by such pledges, reserves, guarantees, letters
6of credit, insurance contracts or other similar credit support
7or liquidity instruments, may be executed in such manner, may
8be subject to redemption prior to maturity, may provide for the
9registration of the bonds, and may be subject to such other
10terms and conditions all as may be provided by the resolution
11or indenture authorizing the issuance of such bonds. The holder
12or holders of any bonds issued by the Authority may bring suits
13at law or proceedings in equity to compel the performance and
14observance by any person or by the Authority or any of its
15agents or employees of any contract or covenant made with the
16holders of such bonds and to compel such person or the
17Authority and any of its agents or employees to perform any
18duties required to be performed for the benefit of the holders
19of any such bonds by the provision of the resolution
20authorizing their issuance, and to enjoin such person or the
21Authority and any of its agents or employees from taking any
22action in conflict with any such contract or covenant.
23Notwithstanding the form and tenor of any such bonds and in the
24absence of any express recital on the face thereof that it is
25non-negotiable, all such bonds shall be negotiable
26instruments. Pending the preparation and execution of any such

 

 

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1bonds, temporary bonds may be issued as provided by the
2resolution. The bonds shall be sold by the Authority in such
3manner as it shall determine. The bonds may be secured as
4provided in the authorizing resolution by the receipts,
5revenues, income and other available funds of the Authority and
6by any amounts derived by the Authority from the loan agreement
7or lease agreement with respect to the project or projects; and
8bonds may be issued as general obligations of the Authority
9payable from such revenues, funds and obligations of the
10Authority as the bond resolution shall provide, or may be
11issued as limited obligations with a claim for payment solely
12from such revenues, funds and obligations as the bond
13resolution shall provide. The Authority may grant a specific
14pledge or assignment of and lien on or security interest in
15such rights, revenues, income, or amounts and may grant a
16specific pledge or assignment of and lien on or security
17interest in any reserves, funds or accounts established in the
18resolution authorizing the issuance of bonds. Any such pledge,
19assignment, lien or security interest for the benefit of the
20holders of the Authority's bonds shall be valid and binding
21from the time the bonds are issued without any physical
22delivery or further act, and shall be valid and binding as
23against and prior to the claims of all other parties having
24claims against the Authority or any other person irrespective
25of whether the other parties have notice of the pledge,
26assignment, lien or security interest. As evidence of such

 

 

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1pledge, assignment, lien and security interest, the Authority
2may execute and deliver a mortgage, trust agreement, indenture
3or security agreement or an assignment thereof. A remedy for
4any breach or default of the terms of any such agreement by the
5Authority may be by mandamus proceedings in any court of
6competent jurisdiction to compel the performance and
7compliance therewith, but the agreement may prescribe by whom
8or on whose behalf such action may be instituted. It is
9expressly understood that the Authority may, but need not,
10acquire title to any project with respect to which it exercises
11its authority.
12    (d) With respect to the powers granted by this Act, the
13Authority may adopt rules and regulations prescribing the
14procedures by which persons may apply for assistance under this
15Act. Nothing herein shall be deemed to preclude the Authority,
16prior to the filing of any formal application, from conducting
17preliminary discussions and investigations with respect to the
18subject matter of any prospective application.
19    (e) The Authority shall have power to acquire by purchase,
20lease, gift or otherwise any property or rights therein from
21any person useful for its purposes, whether improved for the
22purposes of any prospective project, or unimproved. The
23Authority may also accept any donation of funds for its
24purposes from any such source. The Authority shall have no
25independent power of condemnation but may acquire any property
26or rights therein obtained upon condemnation by any other

 

 

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1authority, governmental entity or unit of local government with
2such power.
3    (f) The Authority shall have power to develop, construct
4and improve either under its own direction, or through
5collaboration with any approved applicant, or to acquire
6through purchase or otherwise, any project, using for such
7purpose the proceeds derived from the sale of its bonds or from
8governmental loans or grants, and to hold title in the name of
9the Authority to such projects.
10    (g) The Authority shall have power to lease pursuant to a
11lease agreement any project so developed and constructed or
12acquired to the approved tenant on such terms and conditions as
13may be appropriate to further the purposes of this Act and to
14maintain the credit of the Authority. Any such lease may
15provide for either the Authority or the approved tenant to
16assume initially, in whole or in part, the costs of
17maintenance, repair and improvements during the leasehold
18period. In no case, however, shall the total rentals from any
19project during any initial leasehold period or the total loan
20repayments to be made pursuant to any loan agreement, be less
21than an amount necessary to return over such lease or loan
22period (1) all costs incurred in connection with the
23development, construction, acquisition or improvement of the
24project and for repair, maintenance and improvements thereto
25during the period of the lease or loan; provided, however, that
26the rentals or loan repayments need not include costs met

 

 

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1through the use of funds other than those obtained by the
2Authority through the issuance of its bonds or governmental
3loans; (2) a reasonable percentage additive to be agreed upon
4by the Authority and the borrower or tenant to cover a properly
5allocable portion of the Authority's general expenses,
6including, but not limited to, administrative expenses,
7salaries and general insurance, and (3) an amount sufficient to
8pay when due all principal of, interest and premium, if any on,
9any bonds issued by the Authority with respect to the project.
10The portion of total rentals payable under clause (3) of this
11subsection (g) shall be deposited in such special accounts,
12including all sinking funds, acquisition or construction
13funds, debt service and other funds as provided by any
14resolution, mortgage or trust agreement of the Authority
15pursuant to which any bond is issued.
16    (h) The Authority has the power, upon the termination of
17any leasehold period of any project, to sell or lease for a
18further term or terms such project on such terms and conditions
19as the Authority shall deem reasonable and consistent with the
20purposes of the Act. The net proceeds from all such sales and
21the revenues or income from such leases shall be used to
22satisfy any indebtedness of the Authority with respect to such
23project and any balance may be used to pay any expenses of the
24Authority or be used for the further development, construction,
25acquisition or improvement of projects. In the event any
26project is vacated by a tenant prior to the termination of the

 

 

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1initial leasehold period, the Authority shall sell or lease the
2facilities of the project on the most advantageous terms
3available. The net proceeds of any such disposition shall be
4treated in the same manner as the proceeds from sales or the
5revenues or income from leases subsequent to the termination of
6any initial leasehold period.
7    (i) The Authority shall have the power to make loans to
8persons to finance a project, to enter into loan agreements
9with respect thereto, and to accept guarantees from persons of
10its loans or the resultant evidences of obligations of the
11Authority.
12    (j) The Authority may fix, determine, charge and collect
13any premiums, fees, charges, costs and expenses, including,
14without limitation, any application fees, commitment fees,
15program fees, financing charges or publication fees from any
16person in connection with its activities under this Act.
17    (k) In addition to the funds established as provided
18herein, the Authority shall have the power to create and
19establish such reserve funds and accounts as may be necessary
20or desirable to accomplish its purposes under this Act and to
21deposit its available monies into the funds and accounts.
22    (l) At the request of the governing body of any unit of
23local government, the Authority is authorized to market such
24local government's revenue bond offerings by preparing bond
25issues for sale, advertising for sealed bids, receiving bids at
26its offices, making the award to the bidder that offers the

 

 

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1most favorable terms or arranging for negotiated placements or
2underwritings of such securities. The Authority may, at its
3discretion, offer for concurrent sale the revenue bonds of
4several local governments. Sales by the Authority of revenue
5bonds under this Section shall in no way imply State guarantee
6of such debt issue. The Authority may require such financial
7information from participating local governments as it deems
8necessary in order to carry out the purposes of this subsection
9(1).
10    (m) The Authority may make grants to any county to which
11Division 5-37 of the Counties Code is applicable to assist in
12the financing of capital development, construction and
13renovation of new or existing facilities for hospitals and
14health care facilities under that Act. Such grants may only be
15made from funds appropriated for such purposes from the Build
16Illinois Bond Fund.
17    (n) The Authority may establish an urban development action
18grant program for the purpose of assisting municipalities in
19Illinois which are experiencing severe economic distress to
20help stimulate economic development activities needed to aid in
21economic recovery. The Authority shall determine the types of
22activities and projects for which the urban development action
23grants may be used, provided that such projects and activities
24are broadly defined to include all reasonable projects and
25activities the primary objectives of which are the development
26of viable urban communities, including decent housing and a

 

 

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1suitable living environment, and expansion of economic
2opportunity, principally for persons of low and moderate
3incomes. The Authority shall enter into grant agreements from
4monies appropriated for such purposes from the Build Illinois
5Bond Fund. The Authority shall monitor the use of the grants,
6and shall provide for audits of the funds as well as recovery
7by the Authority of any funds determined to have been spent in
8violation of this subsection (n) or any rule or regulation
9promulgated hereunder. The Authority shall provide technical
10assistance with regard to the effective use of the urban
11development action grants. The Authority shall file an annual
12report to the General Assembly concerning the progress of the
13grant program.
14    (o) The Authority may establish a Housing Partnership
15Program whereby the Authority provides zero-interest loans to
16municipalities for the purpose of assisting in the financing of
17projects for the rehabilitation of affordable multi-family
18housing for low and moderate income residents. The Authority
19may provide such loans only upon a municipality's providing
20evidence that it has obtained private funding for the
21rehabilitation project. The Authority shall provide 3 State
22dollars for every 7 dollars obtained by the municipality from
23sources other than the State of Illinois. The loans shall be
24made from monies appropriated for such purpose from the Build
25Illinois Bond Fund. The total amount of loans available under
26the Housing Partnership Program shall not exceed $30,000,000.

 

 

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1State loan monies under this subsection shall be used only for
2the acquisition and rehabilitation of existing buildings
3containing 4 or more dwelling units. The terms of any loan made
4by the municipality under this subsection shall require
5repayment of the loan to the municipality upon any sale or
6other transfer of the project.
7    (p) The Authority may award grants to universities and
8research institutions, research consortiums and other
9not-for-profit entities for the purposes of: remodeling or
10otherwise physically altering existing laboratory or research
11facilities, expansion or physical additions to existing
12laboratory or research facilities, construction of new
13laboratory or research facilities or acquisition of modern
14equipment to support laboratory or research operations
15provided that such grants (i) be used solely in support of
16project and equipment acquisitions which enhance technology
17transfer, and (ii) not constitute more than 60 percent of the
18total project or acquisition cost.
19    (q) Grants may be awarded by the Authority to units of
20local government for the purpose of developing the appropriate
21infrastructure or defraying other costs to the local government
22in support of laboratory or research facilities provided that
23such grants may not exceed 40% of the cost to the unit of local
24government.
25    (r) The Authority may establish a Direct Loan Program to
26make loans to individuals, partnerships or corporations for the

 

 

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1purpose of an industrial project, as defined in Section 801-10
2of this Act. For the purposes of such program and not by way of
3limitation on any other program of the Authority, the Authority
4shall have the power to issue bonds, notes, or other evidences
5of indebtedness including commercial paper for purposes of
6providing a fund of capital from which it may make such loans.
7The Authority shall have the power to use any appropriations
8from the State made especially for the Authority's Direct Loan
9Program for additional capital to make such loans or for the
10purposes of reserve funds or pledged funds which secure the
11Authority's obligations of repayment of any bond, note or other
12form of indebtedness established for the purpose of providing
13capital for which it intends to make such loans under the
14Direct Loan Program. For the purpose of obtaining such capital,
15the Authority may also enter into agreements with financial
16institutions and other persons for the purpose of selling loans
17and developing a secondary market for such loans. Loans made
18under the Direct Loan Program may be in an amount not to exceed
19$300,000 and shall be made for a portion of an industrial
20project which does not exceed 50% of the total project. No loan
21may be made by the Authority unless approved by the affirmative
22vote of at least 8 members of the board. The Authority shall
23establish procedures and publish rules which shall provide for
24the submission, review, and analysis of each direct loan
25application and which shall preserve the ability of each board
26member to reach an individual business judgment regarding the

 

 

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1propriety of making each direct loan. The collective discretion
2of the board to approve or disapprove each loan shall be
3unencumbered. The Authority may establish and collect such fees
4and charges, determine and enforce such terms and conditions,
5and charge such interest rates as it determines to be necessary
6and appropriate to the successful administration of the Direct
7Loan Program. The Authority may require such interests in
8collateral and such guarantees as it determines are necessary
9to project the Authority's interest in the repayment of the
10principal and interest of each loan made under the Direct Loan
11Program.
12    (s) The Authority may guarantee private loans to third
13parties up to a specified dollar amount in order to promote
14economic development in this State.
15    (t) The Authority may adopt rules and regulations as may be
16necessary or advisable to implement the powers conferred by
17this Act.
18    (u) The Authority shall have the power to issue bonds,
19notes or other evidences of indebtedness, which may be used to
20make loans to units of local government which are authorized to
21enter into loan agreements and other documents and to issue
22bonds, notes and other evidences of indebtedness for the
23purpose of financing the protection of storm sewer outfalls,
24the construction of adequate storm sewer outfalls, and the
25provision for flood protection of sanitary sewage treatment
26plans, in counties that have established a stormwater

 

 

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1management planning committee in accordance with Section
25-1062 of the Counties Code. Any such loan shall be made by the
3Authority pursuant to the provisions of Section 820-5 to 820-60
4of this Act. The unit of local government shall pay back to the
5Authority the principal amount of the loan, plus annual
6interest as determined by the Authority. The Authority shall
7have the power, subject to appropriations by the General
8Assembly, to subsidize or buy down a portion of the interest on
9such loans, up to 4% per annum.
10    (v) The Authority may accept security interests as provided
11in Sections 11-3 and 11-3.3 of the Illinois Public Aid Code.
12    (w) Moral Obligation. In the event that the Authority
13determines that monies of the Authority will not be sufficient
14for the payment of the principal of and interest on its bonds
15during the next State fiscal year, the Chairperson, as soon as
16practicable, shall certify to the Governor the amount required
17by the Authority to enable it to pay such principal of and
18interest on the bonds. The Governor shall submit the amount so
19certified to the General Assembly as soon as practicable, but
20no later than the end of the current State fiscal year. This
21subsection shall apply only to any bonds or notes as to which
22the Authority shall have determined, in the resolution
23authorizing the issuance of the bonds or notes, that this
24subsection shall apply. Whenever the Authority makes such a
25determination, that fact shall be plainly stated on the face of
26the bonds or notes and that fact shall also be reported to the

 

 

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1Governor. In the event of a withdrawal of moneys from a reserve
2fund established with respect to any issue or issues of bonds
3of the Authority to pay principal or interest on those bonds,
4the Chairperson of the Authority, as soon as practicable, shall
5certify to the Governor the amount required to restore the
6reserve fund to the level required in the resolution or
7indenture securing those bonds. The Governor shall submit the
8amount so certified to the General Assembly as soon as
9practicable, but no later than the end of the current State
10fiscal year. The Authority shall obtain written approval from
11the Governor for any bonds and notes to be issued under this
12Section. In addition to any other bonds authorized to be issued
13under Sections 825-60, 825-65(e), 830-25 and 845-5, the
14principal amount of Authority bonds outstanding issued under
15this Section 801-40(w) or under 20 ILCS 3850/1-80 or 30 ILCS
16360/2-6(c), which have been assumed by the Authority, shall not
17exceed $150,000,000. This subsection (w) shall in no way be
18applied to any bonds issued by the Authority on behalf of the
19Illinois Power Agency under Section 825-90 of this Act.
20    (x) The Authority may enter into agreements or contracts
21with any person necessary or appropriate to place the payment
22obligations of the Authority under any of its bonds in whole or
23in part on any interest rate basis, cash flow basis, or other
24basis desired by the Authority, including without limitation
25agreements or contracts commonly known as "interest rate swap
26agreements", "forward payment conversion agreements", and

 

 

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1"futures", or agreements or contracts to exchange cash flows or
2a series of payments, or agreements or contracts, including
3without limitation agreements or contracts commonly known as
4"options", "puts", or "calls", to hedge payment, rate spread,
5or similar exposure; provided that any such agreement or
6contract shall not constitute an obligation for borrowed money
7and shall not be taken into account under Section 845-5 of this
8Act or any other debt limit of the Authority or the State of
9Illinois.
10    (y) The Authority shall publish summaries of projects and
11actions approved by the members of the Authority on its
12website. These summaries shall include, but not be limited to,
13information regarding the:
14        (1) project;
15        (2) Board's action or actions;
16        (3) purpose of the project;
17        (4) Authority's program and contribution;
18        (5) volume cap;
19        (6) jobs retained;
20        (7) projected new jobs;
21        (8) construction jobs created;
22        (9) estimated sources and uses of funds;
23        (10) financing summary;
24        (11) project summary;
25        (12) business summary;
26        (13) ownership or economic disclosure statement;

 

 

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1        (14) professional and financial information;
2        (15) service area; and
3        (16) legislative district.
4    The disclosure of information pursuant to this subsection
5shall comply with the Freedom of Information Act.
6    (z) The Authority is designated and declared the State
7Infrastructure Bank of the State of Illinois; provided that
8such designation and declaration shall not apply to federal
9funds directed to the Department of Transportation.
10(Source: P.A. 95-470, eff. 8-27-07; 95-481, eff. 8-28-07;
1195-876, eff. 8-21-08; 96-795, eff. 7-1-10 (see Section 5 of
12P.A. 96-793 for the effective date of changes made by P.A.
1396-795).)
 
14    Section 99. Effective date. This Act takes effect upon
15becoming law.".