Illinois General Assembly - Full Text of SB2589
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Full Text of SB2589  100th General Assembly

SB2589ham001 100TH GENERAL ASSEMBLY

Rep. Michael Halpin

Filed: 5/11/2018

 

 


 

 


 
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1
AMENDMENT TO SENATE BILL 2589

2    AMENDMENT NO. ______. Amend Senate Bill 2589 on page 7,
3line 19, by replacing "security" with "security. A local
4government security purchased or otherwise acquired by the
5Authority is not a moral obligation of the State or any State
6agency or political subdivision of the State"; and
 
7on page 23, line 21, by replacing "security" with "security. A
8local government security purchased or otherwise acquired by
9the Authority is not a moral obligation of the State or any
10State agency or political subdivision of the State"; and
 
11on page 48, line 6, after the period, by inserting "A local
12government security purchased or otherwise acquired by the
13Authority is not a moral obligation of the State or any State
14agency or political subdivision of the State."; and
 
15on page 61, line 2, by replacing "security" with "security. A

 

 

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1local government security purchased or otherwise acquired by
2the Authority is not a moral obligation of the State or any
3State agency or political subdivision of the State"; and
 
4on page 75, line 18, by replacing "security" with "security. A
5local government security purchased or otherwise acquired by
6the Authority is not a moral obligation of the State or any
7State agency or political subdivision of the State"; and
 
8on page 81, line 4, after "5," by inserting "7,"; and
 
9on page 85, immediately below line 18, by inserting the
10following:
 
11    "(70 ILCS 520/7)  (from Ch. 85, par. 6157)
12    Sec. 7. (a) The Authority, with the written approval of the
13Governor, shall have the continuing power to issue bonds,
14notes, or other evidences of indebtedness for the purpose of
15developing, constructing, acquiring or improving projects,
16including without limitation those established by business
17entities locating or expanding property within the territorial
18jurisdiction of the Authority, for entering into venture
19capital agreements with businesses locating or expanding
20within the territorial jurisdiction of the Authority, for
21acquiring and improving any property necessary and useful in
22connection therewith, for the purposes of the Employee

 

 

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1Ownership Assistance Act, and any local government projects.
2With respect to any local government project, the Authority is
3authorized to purchase from time to time pursuant to negotiated
4sale or to otherwise acquire from time to time any local
5government security upon terms and conditions as the Authority
6may prescribe in connection therewith. A local government
7security purchased or otherwise acquired by the Authority on or
8after the effective date of this amendatory Act of the 100th
9General Assembly is not a moral obligation of the State or any
10State agency or political subdivision of the State. For the
11purpose of evidencing the obligations of the Authority to repay
12any money borrowed for any project, the Authority may, pursuant
13to resolution, from time to time issue and dispose of its
14interest bearing revenue bonds, notes or other evidences of
15indebtedness and may also from time to time issue and dispose
16of such bonds, notes or other evidences of indebtedness to
17refund, at maturity, at a redemption date or in advance of
18either, any bonds, notes or other evidences of indebtedness
19pursuant to redemption provisions or at any time before
20maturity. All such bonds, notes or other evidences of
21indebtedness shall be payable solely and only from the revenues
22or income to be derived from loans made with respect to
23projects, from the leasing or sale of the projects or from any
24other funds available to the Authority for such purposes. The
25bonds, notes or other evidences of indebtedness may bear such
26date or dates, may mature at such time or times not exceeding

 

 

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140 years from their respective dates, notwithstanding any other
2law to the contrary may bear interest at such rate or rates
3payable annually, semi-annually, quarterly or monthly, may be
4in such form, may carry such registration privileges, may be
5executed in such manner, may be payable at such place or
6places, may be made subject to redemption in such manner and
7upon such terms, with or without premium as is stated on the
8face thereof, may be authenticated in such manner and may
9contain such terms and covenants as may be provided by an
10applicable resolution.
11    (b)(1) The holder or holders of any bonds, notes or other
12    evidences of indebtedness issued by the Authority may bring
13    suits at law or proceedings in equity to compel the
14    performance and observance by any corporation or person or
15    by the Authority or any of its agents or employees of any
16    contract or covenant made with the holders of such bonds,
17    notes or other evidences of indebtedness, to compel such
18    corporation, person, the Authority and any of its agents or
19    employees to perform any duties required to be performed
20    for the benefit of the holders of any such bonds, notes or
21    other evidences of indebtedness by the provision of the
22    resolution authorizing their issuance and to enjoin such
23    corporation, person, the Authority and any of its agents or
24    employees from taking any action in conflict with any such
25    contract or covenant.
26        (2) If the Authority fails to pay the principal of or

 

 

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1    interest on any of the bonds or premium, if any, as the
2    same become due, a civil action to compel payment may be
3    instituted in the appropriate circuit court by the holder
4    or holders of the bonds on which such default of payment
5    exists or by an indenture trustee acting on behalf of such
6    holders. Delivery of a summons and a copy of the complaint
7    to the Chairman of the Board shall constitute sufficient
8    service to give the circuit court jurisdiction of the
9    subject matter of such a suit and jurisdiction over the
10    Authority and its officers named as defendants for the
11    purpose of compelling such payment. Any case, controversy
12    or cause of action concerning the validity of this Act
13    relates to the revenue of the State of Illinois.
14    (c) Notwithstanding the form and tenor of any such bonds,
15notes or other evidences of indebtedness and in the absence of
16any express recital on the face thereof that it is
17non-negotiable, all such bonds, notes and other evidences of
18indebtedness shall be negotiable instruments. Pending the
19preparation and execution of any such bonds, notes or other
20evidences of indebtedness, temporary bonds, notes or evidences
21of indebtedness may be issued as provided by ordinance.
22    (d) To secure the payment of any or all of such bonds,
23notes or other evidences of indebtedness, the revenues to be
24received by the Authority from a lease agreement or loan
25agreement shall be pledged, and, for the purpose of setting
26forth the covenants and undertakings of the Authority in

 

 

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1connection with the issuance thereof and the issuance of any
2additional bonds, notes or other evidences of indebtedness
3payable from such revenues, income or other funds to be derived
4from projects, the Authority may execute and deliver a mortgage
5or trust agreement. A remedy for any breach or default of the
6terms of any such mortgage or trust agreement by the Authority
7may be by mandamus proceedings in the appropriate circuit court
8to compel the performance and compliance therewith, but the
9trust agreement may prescribe by whom or on whose behalf such
10action may be instituted.
11    (e) Such bonds or notes shall be secured as provided in the
12authorizing ordinance which may, notwithstanding any other
13provision of this Act, include in addition to any other
14security a specific pledge or assignment of and lien on or
15security interest in any or all revenues or money of the
16Authority from whatever source which may by law be used for
17debt service purposes and a specific pledge or assignment of
18and lien on or security interest in any funds or accounts
19established or provided for by ordinance of the Authority
20authorizing the issuance of such bonds or notes and, with
21respect to any local government project, may include without
22limitation a pledge of any local government securities,
23including any payments thereon.
24    (f) In the event that the Authority determines that monies
25of the Authority will not be sufficient for the payment of the
26principal of and interest on its bonds during the next State

 

 

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1fiscal year, the Chairman, as soon as practicable, shall
2certify to the Governor the amount required by the Authority to
3enable it to pay such principal of and interest on the bonds.
4The Governor shall submit the amount so certified to the
5General Assembly as soon as practicable, but no later than the
6end of the current State fiscal year. This subsection shall not
7apply to any bonds or notes as to which the Authority shall
8have determined, in the resolution authorizing the issuance of
9the bonds or notes, that this subsection shall not apply.
10Whenever the Authority makes such a determination, that fact
11shall be plainly stated on the face of the bonds or notes, and
12that fact shall also be reported to the Governor.
13    In the event of a withdrawal of moneys from a reserve fund
14established with respect to any issue or issues of bonds of the
15Authority to pay principal or interest on those bonds, the
16Chairman of the Authority, as soon as practicable, shall
17certify to the Governor the amount required to restore the
18reserve fund to the level required in the resolution or
19indenture securing those bonds. The Governor shall submit the
20amount so certified to the General Assembly as soon as
21practicable, but no later than the end of the current State
22fiscal year.
23    (g) The State of Illinois pledges to and agrees with the
24holders of the bonds and notes of the Authority issued pursuant
25to this Section that the State will not limit or alter the
26rights and powers vested in the Authority by this Act so as to

 

 

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1impair the terms of any contract made by the Authority with
2such holders or in any way impair the rights and remedies of
3such holders until such bonds and notes, together with interest
4thereon, with interest on any unpaid installments of interest,
5and all costs and expenses in connection with any action or
6proceedings by or on behalf of such holders, are fully met and
7discharged. In addition, the State pledges to and agrees with
8the holders of the bonds and notes of the Authority issued
9pursuant to this Section that the State will not limit or alter
10the basis on which State funds are to be paid to the Authority
11as provided in this Act, or the use of such funds, so as to
12impair the terms of any such contract. The Authority is
13authorized to include these pledges and agreements of the State
14in any contract with the holders of bonds or notes issued under
15this Section.
16(Source: P.A. 86-1455; 87-778.)"; and
 
17on page 95, line 15, by replacing "security" with "security. A
18local government security purchased or otherwise acquired by
19the Authority is not a moral obligation of the State or any
20State agency or political subdivision of the State"; and
 
21on page 114, line 15, by replacing "security" with "security. A
22local government security purchased or otherwise acquired by
23the Authority is not a moral obligation of the State or any
24State agency or political subdivision of the State"; and
 

 

 

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1on page 128, line 6, by replacing "security" with "security. A
2local government security purchased or otherwise acquired by
3the Authority is not a moral obligation of the State or any
4State agency or political subdivision of the State"; and
 
5on page 142, line 8, by replacing "security" with "security. A
6local government security purchased or otherwise acquired by
7the Authority is not a moral obligation of the State or any
8State agency or political subdivision of the State".