HB5616 EnrolledLRB097 18446 KMW 63673 b

1    AN ACT concerning local government.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 5. The Will-Kankakee Regional Development
5Authority Law is amended by changing Section 7 and by adding
6Section 14 as follows:
 
7    (70 ILCS 535/7)  (from Ch. 85, par. 7457)
8    Sec. 7. Bonds.
9    (a) The Authority, with the written approval of the
10Governor, shall have the continuing power to issue bonds,
11notes, or other evidences of indebtedness in an aggregate
12amount outstanding not to exceed $250,000,000 $100,000,000 for
13the purpose of developing, constructing, acquiring or
14improving projects, including those established by business
15entities locating or expanding property within the territorial
16jurisdiction of the Authority, for entering into venture
17capital agreements with businesses locating or expanding
18within the territorial jurisdiction of the Authority, for
19acquiring and improving any property necessary and useful in
20connection therewith and for the purposes of the Employee
21Ownership Assistance Act. For the purpose of evidencing the
22obligations of the Authority to repay any money borrowed, the
23Authority may, pursuant to resolution, from time to time issue

 

 

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1and dispose of its interest bearing revenue bonds, notes or
2other evidences of indebtedness and may also from time to time
3issue and dispose of such bonds, notes or other evidences of
4indebtedness to refund, at maturity, at a redemption date or in
5advance of either, any bonds, notes or other evidences of
6indebtedness pursuant to redemption provisions or at any time
7before maturity. All such bonds, notes or other evidences of
8indebtedness shall be payable from the revenues or income to be
9derived from loans made with respect to projects, from the
10leasing or sale of the projects or from any other funds
11available to the Authority for such purposes. The bonds, notes
12or other evidences of indebtedness may bear such date or dates,
13may mature at such time or times not exceeding 40 years from
14their respective dates, may bear interest at such rate or rates
15not exceeding the maximum rate permitted by the Bond
16Authorization Act, may be in such form, may carry such
17registration privileges, may be executed in such manner, may be
18payable at such place or places, may be made subject to
19redemption in such manner and upon such terms, with or without
20premium as is stated on the face thereof, may be authenticated
21in such manner and may contain such terms and covenants as may
22be provided by an applicable resolution.
23    (b-1) The holder or holders of any bonds, notes or other
24evidences of indebtedness issued by the Authority may bring
25suits at law or proceedings in equity to compel the performance
26and observance by any corporation or person or by the Authority

 

 

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1or any of its agents or employees of any contract or covenant
2made with the holders of such bonds, notes or other evidences
3of indebtedness, to compel such corporation, person, the
4Authority and any of its agents or employees to perform any
5duties required to be performed for the benefit of the holders
6of any such bonds, notes or other evidences of indebtedness by
7the provision of the resolution authorizing their issuance and
8to enjoin such corporation, person, the Authority and any of
9its agents or employees from taking any action in conflict with
10any such contract or covenant.
11    (b-2) If the Authority fails to pay the principal of or
12interest on any of the bonds or premium, if any, as the same
13become due, a civil action to compel payment may be instituted
14in the appropriate circuit court by the holder or holders of
15the bonds on which such default of payment exists or by an
16indenture trustee acting on behalf of such holders. Delivery of
17a summons and a copy of the complaint to the Chairman of the
18Board shall constitute sufficient service to give the circuit
19court jurisdiction of the subject matter of such a suit and
20jurisdiction over the Authority and its officers named as
21defendants for the purpose of compelling such payment. Any
22case, controversy or cause of action concerning the validity of
23this Act relates to the revenue of the State of Illinois.
24    (c) Notwithstanding the form and tenor of any such bonds,
25notes or other evidences of indebtedness and in the absence of
26any express recital on the face thereof that it is

 

 

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1non-negotiable, all such bonds, notes and other evidences of
2indebtedness shall be negotiable instruments. Pending the
3preparation and execution of any such bonds, notes or other
4evidences of indebtedness, temporary bonds, notes or evidences
5of indebtedness may be issued as provided by ordinance.
6    (d) To secure the payment of any or all of such bonds,
7notes or other evidences of indebtedness, the revenues to be
8received by the Authority from a lease agreement or loan
9agreement shall be pledged, and, for the purpose of setting
10forth the covenants and undertakings of the Authority in
11connection with the issuance thereof and the issuance of any
12additional bonds, notes or other evidences of indebtedness
13payable from such revenues, income or other funds to be derived
14from projects, the Authority may execute and deliver a mortgage
15or trust agreement. A remedy for any breach or default of the
16terms of any such mortgage or trust agreement by the Authority
17may be by mandamus proceedings in the appropriate circuit court
18to compel the performance and compliance therewith, but the
19trust agreement may prescribe by whom or on whose behalf such
20action may be instituted.
21    (e) Such bonds or notes shall be secured as provided in the
22authorizing ordinance which may, notwithstanding any other
23provision of this Act, include in addition to any other
24security a specific pledge or assignment of and lien on or
25security interest in any or all revenues or money of the
26Authority from whatever source which may by law be used for

 

 

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1debt service purposes and a specific pledge or assignment of
2and lien on or security interest in any funds or accounts
3established or provided for by ordinance of the Authority
4authorizing the issuance of such bonds or notes.
5    (f) In the event that the Authority determines that monies
6of the Authority will not be sufficient for the payment of the
7principal of and interest on its bonds during the next State
8fiscal year, the Chairman, as soon as practicable, shall
9certify to the Governor the amount required by the Authority to
10enable it to pay such principal of and interest on the bonds.
11The Governor shall submit the amount so certified to the
12General Assembly as soon as practicable, but no later than the
13end of the current State fiscal year. This subsection shall not
14apply to any bonds or notes as to which the Authority shall
15have determined, in the resolution authorizing the issuance of
16the bonds or notes, that this subsection shall not apply.
17Whenever the Authority makes such a determination, that fact
18shall be plainly stated on the face of the bonds or notes and
19that fact shall also be reported to the Governor. This
20subsection (f) shall not apply to any bond issued on or after
21the effective date of this amendatory Act of the 97th General
22Assembly.
23    In the event of a withdrawal of moneys from a reserve fund
24established with respect to any issue or issues of bonds of the
25Authority to pay principal or interest on those bonds, the
26Chairman of the Authority, as soon as practicable, shall

 

 

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1certify to the Governor the amount required to restore the
2reserve fund to the level required in the resolution or
3indenture securing those bonds. The Governor shall submit the
4amount so certified to the General Assembly as soon as
5practicable, but no later than the end of the current State
6fiscal year.
7    (g) The State of Illinois pledges to and agrees with the
8holders of the bonds and notes of the Authority issued pursuant
9to this Section that the State will not limit or alter the
10rights and powers vested in the Authority by this Act so as to
11impair the terms of any contract made by the Authority with
12such holders or in any way impair the rights and remedies of
13such holders until such bonds and notes, together with interest
14thereon, with interest on any unpaid installments of interest,
15and all costs and expenses in connection with any action or
16proceedings by or on behalf of such holders, are fully met and
17discharged. In addition, the State pledges to and agrees with
18the holders of the bonds and notes of the Authority issued
19pursuant to this Section that the State will not limit or alter
20the basis on which State funds are to be paid to the Authority
21as provided in this Act, or the use of such funds, so as to
22impair the terms of any such contract. The Authority is
23authorized to include these pledges and agreements of the State
24in any contract with the holders of bonds or notes issued
25pursuant to this Section.
26(Source: P.A. 86-1481; 87-778.)
 

 

 

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1    (70 ILCS 535/14 new)
2    Sec. 14. Bonds and notes; exemption from taxation. The
3creation of the Authority is in all respects for the benefit of
4the people of Illinois and for the improvement of their health,
5safety, welfare, comfort, and security, and its purposes are
6public purposes. In consideration thereof, the notes and bonds
7of the Authority issued pursuant to this Act and the income
8from these notes and bonds may be free from all taxation by the
9State or its political subdivisions, except for estate,
10transfer, and inheritance taxes. The exemption from taxation
11set forth in this Section shall apply to the income on any
12notes or bonds of the Authority only if the Authority in its
13sole judgment determines that the exemption enhances the
14marketability of the bonds or notes or reduces the interest
15rates that would otherwise be borne by the bonds or notes. For
16purposes of Section 250 of the Illinois Income Tax Act, the
17exemption of the Authority shall terminate after all of the
18bonds have been paid. The amount of the income that shall be
19added and then subtracted on the Illinois income tax return of
20a taxpayer, subject to Section 203 of the Illinois Income Tax
21Act, from federal adjusted gross income or federal taxable
22income in computing Illinois base income shall be the interest
23net of any bond premium amortization.
 
24    Section 99. Effective date. This Act takes effect upon
25becoming law.