093_HB0185eng

HB0185 Engrossed                     LRB093 04132 MKM 04172 b

 1        AN ACT concerning loans to local governments.

 2        Be it enacted by the People of  the  State  of  Illinois,
 3    represented in the General Assembly:

 4        Section  5.  The Rural Bond Bank Act is amended by adding
 5    Section 3-26 as follows:

 6        (30 ILCS 360/3-26 new)
 7        Sec. 3-26.   Road  grader  revolving  loan  program.  The
 8    Illinois  Rural  Bond  Bank  is  the  administrator of a road
 9    grader revolving loan program.  The  purpose  is  to  provide
10    loans  to  units of local government for the purchase of road
11    graders  that  are  manufactured  in  the  United  States  of
12    America.  For  purposes  of  this  Section,  "unit  of  local
13    government" means a county, township,  or  municipality;  and
14    "manufactured in the United States of America" means that all
15    significant  parts,  processing,  and  labor that go into the
16    road grader must be of U.S. origin and that the  road  grader
17    must  contain  only negligible foreign content. "Road grader"
18    includes any machinery with a purchase price of  $100,000  or
19    more  that  is  used  for  the construction or maintenance of
20    roads.  The  Illinois  Rural  Bond   Bank   shall   determine
21    eligibility for the loans based on need, as determined by the
22    Illinois  Rural Bond Bank.  The Illinois Rural Bond Bank must
23    give priority in making loans to units  of  local  government
24    without a road grader or with the oldest road grader.
25        The  loan  funds, subject to appropriation, shall be paid
26    out of the Road Grader Revolving Loan Fund, a special fund in
27    the State treasury. The Fund  shall  consist  of  any  moneys
28    transferred  into  or appropriated to the Fund as well as all
29    repayments of loans made under this Section. The  Fund  shall
30    be  used  for  loans to units of local government to purchase
31    road graders and for no other purpose. All interest earned on
 
HB0185 Engrossed            -2-      LRB093 04132 MKM 04172 b
 1    moneys in the Fund shall be deposited into the Fund.
 2        The annual rate of interest on the loan is 1%.
 3        The aggregate outstanding principal balance of  loans  to
 4    any  one  unit  of  local government for the purchase of road
 5    graders may not exceed $350,000. The repayment period for the
 6    loan may not exceed 15 years. The unit  of  local  government
 7    shall  repay  each  year  at least 5% of the principal amount
 8    borrowed or the remaining balance of the loan,  whichever  is
 9    less.  All repayments of loans, including any interest, shall
10    be deposited into the Road Grader Revolving Loan Fund.
11        The  Illinois  Rural  Bond  Bank  must  adopt  rules   to
12    administer the program.

13        Section  10.   The State Finance Act is amended by adding
14    Section 5.595 as follows:

15        (30 ILCS 105/5.595 new)
16        Sec. 5.595.  The Road Grader Revolving Loan Fund.