Illinois General Assembly - Full Text of SB0010
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Full Text of SB0010  100th General Assembly


Sen. John J. Cullerton

Filed: 1/24/2017





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2    AMENDMENT NO. ______. Amend Senate Bill 10 by replacing
3everything after the enacting clause with the following:
4    "Section 5. The Illinois Municipal Code is amended by
5adding Division 13 to Article 8 as follows:
6    (65 ILCS 5/Art. 8 Div. 13 heading new)

8    (65 ILCS 5/8-13-5 new)
9    Sec. 8-13-5. Definitions. As used in this Article:
10    "Assignment agreement" means an agreement between a
11transferring unit and an issuing entity for the conveyance of
12all or part of any revenues or taxes received by the
13transferring unit from a State entity.
14    "Conveyance" means an assignment, sale, transfer, or other



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1    "Deposit account" means a designated escrow account
2established by an issuing entity at a trust company or bank
3having trust powers for the deposit of transferred receipts
4under an assignment agreement.
5    "Issuing entity" means (i) a corporation, trust or other
6entity that has been established for the limited purpose of
7issuing obligations for the benefit of a transferring unit, or
8(ii) a bank or trust company in its capacity as trustee for
9obligations issued by such bank or trust company for the
10benefit of a transferring unit.
11    "State entity" means the State Comptroller, the State
12Treasurer, or the Illinois Department of Revenue.
13    "Transferred receipts" means all or part of any revenues or
14taxes received from a State entity that have been conveyed by a
15transferring unit under an assignment agreement.
16    "Transferring unit" means a home rule municipality located
17in the State.
18    (65 ILCS 5/8-13-10 new)
19    Sec. 8-13-10. Assignment of receipts.
20    (a) Any transferring unit which receives revenues or taxes
21from a State entity may (to the extent not prohibited by any
22applicable statute, regulation, rule, or agreement governing
23the use of such revenues or taxes) authorize, by ordinance, the
24conveyance of all or any portion of such revenues or taxes to
25an issuing entity. Any conveyance of transferred receipts



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1shall: (i) be made pursuant to an assignment agreement in
2exchange for the net proceeds of obligations issued by the
3issuing entity for the benefit of the transferring unit and
4shall, for all purposes, constitute an absolute conveyance of
5all right, title, and interest therein; (ii) not be deemed a
6pledge or other security interest for any borrowing by the
7transferring unit; (iii) be valid, binding, and enforceable in
8accordance with the terms thereof and of any related
9instrument, agreement, or other arrangement, including any
10pledge, grant of security interest, or other encumbrance made
11by the issuing entity to secure any obligations issued by the
12issuing entity for the benefit of the transferring unit; and
13(iv) not be subject to disavowal, disaffirmance, cancellation,
14or avoidance by reason of insolvency of any party, lack of
15consideration, or any other fact, occurrence, or State law or
16rule. On and after the effective date of the conveyance of the
17transferred receipts, the transferring unit shall have no
18right, title or interest in or to the transferred receipts
19conveyed and the transferred receipts so conveyed shall be the
20property of the issuing entity to the extent necessary to pay
21the obligations issued by the issuing entity for the benefit of
22the transferring unit, and shall be received, held, and
23disbursed by the issuing entity in a trust fund outside the
24treasury of the transferring unit. An assignment agreement may
25provide for the periodic reconveyance to the transferring unit
26of amounts of transferred receipts remaining after the payment



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1of the obligations issued by the issuing entity for the benefit
2of the transferring unit.
3    (b) In connection with any conveyance of transferred
4receipts, the transferring unit is authorized to direct the
5applicable State entity to deposit or cause to be deposited any
6amount of such transferred receipts into a deposit account in
7order to secure the obligations issued by the issuing entity
8for the benefit of the transferring unit. Where the
9transferring unit states that such direction is irrevocable,
10the direction shall be treated by the applicable State entity
11as irrevocable with respect to the transferred receipts
12described in such direction. Each State entity shall comply
13with the terms of any such direction received from a
14transferring unit and shall execute and deliver such
15acknowledgments and agreements, including escrow and similar
16agreements, as the transferring unit may require to effectuate
17the deposit of transferred receipts in accordance with the
18direction of the transferring unit.
19    (c) Not later than the date of issuance by an issuing
20entity of any obligations secured by collections of transferred
21receipts, a certified copy of the ordinance authorizing the
22conveyance of the right to receive the transferred receipts,
23together with executed copies of the applicable assignment
24agreement and the agreement providing for the establishment of
25the deposit account, shall be filed with the State entity
26having custody of the transferred receipts.



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1    (65 ILCS 5/8-13-15 new)
2    Sec. 8-13-15. Pledges and agreements of the State. The
3State of Illinois pledges to and agrees with each transferring
4unit and issuing entity that the State will not limit or alter
5the rights and powers vested in the State entities by this
6Article with respect to the disposition of transferred receipts
7so as to impair the terms of any contract, including any
8assignment agreement, made by the transferring unit with the
9issuing entity or any contract executed by the issuing entity
10in connection with the issuance of obligations by the issuing
11entity for the benefit of the transferring unit until all
12requirements with respect to the deposit by such State entity
13of transferred receipts for the benefit of such issuing entity
14have been fully met and discharged. In addition, the State
15pledges to and agrees with each transferring unit and each
16issuing entity that the State will not limit or alter the basis
17on which transferred receipts are to be paid to the issuing
18entity as provided in this Article, or the use of such funds,
19so as to impair the terms of any such contract. Each
20transferring unit and issuing entity is authorized to include
21these pledges and agreements of the State in any contract
22executed and delivered as described in this Article. In no way
23shall the pledge and agreements of the State be interpreted to
24construe the State as a guarantor of any debt or obligation
25subject to an assignment agreement under this Division.



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1    (65 ILCS 5/8-13-20 new)
2    Sec. 8-13-20. Home rule. A home rule unit may not enter
3into assignment agreements in a manner inconsistent with the
4provisions of this Article. This Section is a limitation under
5subsection (i) of Section 6 of Article VII of the Illinois
6Constitution on the concurrent exercise by home rule units of
7powers and functions exercised by the State.
8    Section 99. Effective date. This Act takes effect upon
9becoming law, but this Act does not take effect at all unless
10Senate Bills 1, 2, 3, 4, 5, 6, 7, 8, 9, 11, 12, and 13 of the
11100th General Assembly become law.".