(20 ILCS 3501/825-107)
Sec. 825-107. Implementation of ARRA provisions regarding recovery zone bonds. (a) Findings. Recovery zone bonds authorized by the American Recovery and Reinvestment Act of
2009 are an important economic development tool for the State. All counties in the State and
municipalities in the State with a population of 100,000 or more have received an
allocation of recovery zone bond authorization. Under federal law, those allocations must be
used on or before December 31, 2010. The State strongly encourages counties and
municipalities to issue recovery zone bonds to spur economic development in the State.
Under federal law, the allocations may be voluntarily waived to the State for reallocation
by the State to other jurisdictions and other projects in the State. This Section sets forth the
process by which the Authority, on behalf of the State, will receive otherwise unused
allocations and ensure that this valuable economic development incentive will be used to the
fullest extent feasible for the benefit of the citizens of the State of Illinois. (b) Definitions. (i) "Affected local government" means either any |
| county in the State or a municipality within the State if the municipality has a population of 100,000 or more.
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(ii) "Allocation amount" means the $666,972,000
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| amount of recovery zone economic development bonds and $1,000,457,000 amount of recovery zone facility bonds authorized under ARRA for the financing of qualifying projects located within the State and the sub-allocation of those amounts among each affected local government.
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(iii) "ARRA" means, collectively, the American
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| Recovery and Reinvestment Act of 2009, including, without limitation, Sections 1400U-1, 1400U-2, and 1400U-3 of the Code; the guidance provided by the Internal Revenue Service applicable to recovery zone bonds; and any legislation subsequently adopted by the United States Congress to extend or expand the economic development bond financing incentives authorized by ARRA.
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(iv) "ARRA implementing regulations" means the
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| regulations promulgated by the Authority as further described in subdivision (d)(iv) of this Section to implement the provisions of this Section.
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(v) "Code" means the Internal Revenue Code of 1986,
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(vi) "Recovery zone" means any area designated
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| pursuant to Section 1400U-1 of the Code.
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(vii) "Recovery zone bond" means any recovery zone
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| economic development bond or recovery zone facility bond issued pursuant to Sections 1400U-2 and 1400U-3, respectively, of the Code.
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(viii) "Recovery zone bond allocation" means an
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| allocation of authority to issue recovery zone bonds granted pursuant to Section 1400U-1 of the Code.
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(ix) "Regional authority" means the Central Illinois
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| Economic Development Authority, Eastern Illinois Economic Development Authority, Joliet Arsenal Development Authority, Quad Cities Regional Economic Development Authority, Riverdale Development Authority, Southeastern Illinois Economic Development Authority, Southern Illinois Development Authority, Southwestern Illinois Development Authority, Tri-County River Valley Development Authority, Upper Illinois River Valley Development Authority, Illinois Urban Development Authority, Western Illinois Economic Development Authority, or Will-Kankakee Regional Development Authority.
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(x) "Sub-allocation" means the portion of the
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| allocation amount allocated to each affected local government.
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(xi) "Waived recovery zone bond allocation" means
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| the amount of the recovery zone bond allocation voluntarily waived by an affected local government.
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(xii) "Waiver agreement" means an agreement between
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| the Authority and an affected local government providing for the voluntary waiver, in whole or in part, of that affected local government's sub-allocation to the Authority. The waiver agreement may provide for the payment of an affected local government's reasonable fees and costs as determined by the Authority in connection with the affected local government's voluntary waiver of its sub-allocation.
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(c) Additional findings.
It is found and declared that:
(i) it is in the public interest and for the benefit
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| of the State to maximize the use of economic development incentives authorized by ARRA;
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(ii) those incentives include the maximum use of the
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| allocation amount for the issuance of recovery zone bonds to promote job creation and economic development in any area that has been designated as a recovery zone by an affected local government under the applicable provisions of ARRA;
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(iii) those incentives also include the issuance by
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| the Authority of recovery zone bonds for the purposes of financing qualifying projects to be financed with proceeds of recovery zone bonds; and
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(iv) the provisions of this Section reflect the
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| State's determination in good faith and in its discretion of the reasonable manner in which waived recovery zone bond allocations should be reallocated by the Authority.
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(d) Powers of Authority.
(i) In order to carry out the provisions of ARRA and
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| further the purposes of this Section, the Authority has:
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(A) the power to receive from any affected local
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| government its sub-allocation that it voluntarily waives to the Authority, in whole or in part, for reallocation by the Authority to a regional authority specifically designated by that affected local government, and the Authority shall reallocate that waived recovery zone bond allocation to the regional authority specifically designated by that affected local government; provided that (1) the affected local government must take official action by resolution or ordinance, as applicable, to waive the sub-allocation to the Authority and specifically designate that its waived recovery zone bond allocation should be reallocated to a regional authority; (2) the regional authority must use the sub-allocation to issue recovery zone bonds on or before August 16, 2010 and, if recovery zone bonds are not issued on or before August 16, 2010, the sub-allocation shall be deemed waived to the Authority for reallocation by the Authority to qualifying projects; and (3) the proceeds of the recovery zone bonds must be used for qualified projects within the jurisdiction of the applicable regional authority;
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(B) at the Authority's sole discretion, the power
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| to reallocate any sub-allocation deemed waived to the Authority pursuant to subsection (d)(i)(A)(2) back to the regional authority that had the sub-allocation;
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(C) the power to enter into waiver agreements
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| with affected local governments to provide for their voluntary waivers, in whole or in part, of their sub-allocations, to receive waived recovery zone bond allocations from those affected local governments, and to use those waived recovery zone bond allocations, in whole or in part, to issue recovery zone bonds of the Authority for qualifying projects or to reallocate those waived recovery zone bond allocations, in whole or in part, to a county or municipality to issue its own recovery zone bonds for qualifying projects;
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(D) the power to designate areas within the
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| State as recovery zones or all of the State as a recovery zone; and
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(E) the power to issue recovery zone bonds for
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| any project authorized to be financed with proceeds thereof under the applicable provisions of ARRA.
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(ii) In addition to the powers set forth in item
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| (i), the Authority shall be the sole recipient, on behalf of the State, of any waived recovery zone bond allocations. Recovery zone bond allocations can be waived to the Authority only by voluntary waiver as provided in this Section.
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(iii) In addition to the powers set forth in items
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| (i) and (ii), the Authority has any powers otherwise enjoyed by the Authority in connection with the issuance of its bonds if those powers are not in conflict with any provisions with respect to recovery zone bonds set forth in ARRA.
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(iv) The Authority has the power to adopt
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| regulations providing for the implementation of any of the provisions contained in this Section, including provisions regarding waiver agreements and the reallocation of all or any portion of the allocation amount and sub-allocations and the issuance of recovery zone bonds; except that those regulations shall not (1) apply to or affect any designation of a recovery zone by a county or municipality, (2) provide for any waiver or reallocation of an affected local government's sub-allocation other than a voluntary waiver as described in subsection (d), or (3) be inconsistent with the provisions of subsection (d)(i). Regulations adopted by the Authority for determining reallocation of all or any portion of a waived recovery zone bond allocation may include, but are not limited to, (1) the ability of the county or municipality to issue recovery zone bonds on or before December 31, 2010, (2) the amount of jobs that will be retained or created, or both, by the qualifying project to be financed by recovery zone bonds, and (3) the geographical proximity of the qualifying project to be financed by recovery zone bonds to a county or municipality that voluntarily waived its sub-allocation to the Authority.
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(v) Unless extended by an act of the United States
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| Congress, no recovery zone bonds may be issued after December 31, 2010.
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(e) Established dates for notice.
Any affected local government or any regional authority that has issued recovery zone bonds on or before the effective date of this Section must report its issuance of recovery zone bonds to the Authority within 30 days after the effective date of this Section. After the effective date of this Section, any affected local government or any regional authority must report its issuance of recovery zone bonds to the Authority not less than 30 days after those bonds are issued.
(f) Reports to the General Assembly.
Starting 60 days after the effective date of this Section and ending on January 15, 2011, the Authority shall file a report before the 15th day of each month with the General Assembly detailing its implementation of this Section, including but not limited to the dollar amount of the allocation amount that has been reallocated by the Authority pursuant to this Section, the recovery zone bonds issued in the State as of the date of the report, and descriptions of the qualifying projects financed by those recovery zone bonds.
(Source: P.A. 96-1020, eff. 7-12-10; 97-333, eff. 8-12-11.)
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(20 ILCS 3501/825-110) Sec. 825-110. Implementation of ARRA provisions regarding qualified energy conservation bonds. (a) Definitions. (i) "Affected local government" means any county or |
| municipality within the State if the county or municipality has a population of 100,000 or more, as defined in Section 54D(e)(2)(C) of the Code.
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(ii) "Allocation amount" means the $133,846,000
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| amount of qualified energy conservation bonds authorized under ARRA for the financing of qualifying projects located within the State and the sub-allocation of those amounts among each affected local government.
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(iii) "ARRA" means, collectively, the American
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| Recovery and Reinvestment Act of 2009, including, without limitation, Section 54D of the Code; the guidance provided by the Internal Revenue Service applicable to qualified energy conservation bonds; and any legislation subsequently adopted by the United States Congress to extend or expand the economic development bond financing incentives authorized by ARRA.
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(iv) "ARRA implementing regulations" means the
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| regulations promulgated by the Authority as further described in subdivision (c)(iv) of this Section to implement the provisions of this Section.
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(v) "Code" means the Internal Revenue Code of 1986,
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(vi) "Qualified energy conservation bond" means any
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| qualified energy conservation bond issued pursuant to Section 54D of the Code.
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(vii) "Qualified energy conservation bond
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| allocation" means an allocation of authority to issue qualified energy conservation bonds granted pursuant to Section 54D of the Code.
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(viii) "Regional authority" means the Central
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| Illinois Economic Development Authority, Eastern Illinois Economic Development Authority, Joliet Arsenal Development Authority, Quad Cities Regional Economic Development Authority, Riverdale Development Authority, Southeastern Illinois Economic Development Authority, Southern Illinois Development Authority, Southwestern Illinois Development Authority, Tri-County River Valley Development Authority, Upper Illinois River Valley Development Authority, Illinois Urban Development Authority, Western Illinois Economic Development Authority, or Will-Kankakee Regional Development Authority.
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(ix) "Sub-allocation" means the portion of the
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| allocation amount allocated to each affected local government.
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(x) "Waived qualified energy conservation bond
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| allocation" means the amount of the qualified energy conservation bond allocation that an affected local government elects to reallocate to the State pursuant to Section 54D(e)(2)(B) of the Code.
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(xi) "Waiver agreement" means an agreement between
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| the Authority and an affected local government providing for the reallocation, in whole or in part, of that affected local government's sub-allocation to the Authority. The waiver agreement may provide for the payment of an affected local government's reasonable fees and costs as determined by the Authority in connection with the affected local government's reallocation of its sub-allocation.
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(b) Findings.
It is found and declared that:
(i) it is in the public interest and for the benefit
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| of the State to maximize the use of economic development incentives authorized by ARRA;
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(ii) those incentives include the maximum use of the
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| allocation amount for the issuance of qualified energy conservation bonds to promote energy conservation under the applicable provisions of ARRA; and
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(iii) those incentives also include the issuance by
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| the Authority of qualified energy conservation bonds for the purposes of financing qualifying projects to be financed with proceeds of qualified energy conservation bonds.
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(c) Powers of Authority.
(i) In order to carry out the provisions of ARRA and
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| further the purposes of this Section, the Authority has:
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(A) the power to receive from any affected local
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| government its sub-allocation that it voluntarily waives to the Authority, in whole or in part, for allocation by the Authority to a regional authority specifically designated by that affected local government, and the Authority shall reallocate that waived qualified energy conservation bond allocation to the regional authority specifically designated by that affected local government; provided that (1) the affected local government must take official action by resolution or ordinance, as applicable, to waive the sub-allocation to the Authority and specifically designate that its waived qualified energy conservation bond allocation should be reallocated to a regional authority; (2) the regional authority must use the sub-allocation to issue qualified energy conservation bonds on or before August 16, 2010 and, if qualified energy conservation bonds are not issued on or before August 16, 2010, the sub-allocation shall be deemed waived to the Authority for reallocation by the Authority to qualifying projects; and (3) the proceeds of the qualified energy conservation bonds must be used for qualified projects within the jurisdiction of the applicable regional authority;
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(B) at the Authority's sole discretion, the power
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| to reallocate any sub-allocation deemed waived to the Authority pursuant to subsection (c)(i)(A)(2) back to the Regional Authority that had the sub-allocation;
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(C) the power to enter into waiver agreements
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| with affected local governments to provide for the reallocation, in whole or in part, of their sub-allocations, to receive waived qualified energy conservation bond allocations from those affected local governments, and to use those waived qualified energy conservation bond allocations, in whole or in part, to issue qualified energy conservation bonds of the Authority for qualifying projects or to reallocate those qualified energy conservation bond allocations, in whole or in part, to a county or municipality to issue its own energy conservation bonds for qualifying projects; and
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(D) the power to issue qualified energy
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| conservation bonds for any project authorized to be financed with proceeds thereof under the applicable provisions of ARRA.
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(ii) In addition to the powers set forth in item
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| (i), the Authority shall be the sole recipient, on behalf of the State, of any waived qualified energy conservation bond allocations. Qualified energy conservation bond allocations can be reallocated to the Authority only by voluntary waiver as provided in this Section.
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(iii) In addition to the powers set forth in items
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| (i) and (ii), the Authority has any powers otherwise enjoyed by the Authority in connection with the issuance of its bonds if those powers are not in conflict with any provisions with respect to qualified energy conservation bonds set forth in ARRA.
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(iv) The Authority has the power to adopt
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| regulations providing for the implementation of any of the provisions contained in this Section, including the provisions regarding waiver agreements and reallocation of all or any portion of the allocation amount and sub-allocations and the issuance of qualified energy conservation bonds; except that those regulations shall not (1) provide any waiver or reallocation of an affected local government's sub-allocation other than a voluntary waiver as described in subsection (c) or (2) be inconsistent with the provisions of subsection (c)(i). Regulations adopted by the Authority for determining reallocation of all or any portion of a waived qualified energy conservation allocation may include, but are not limited to, (1) the ability of the county or municipality to issue qualified energy conservation bonds by the end of a given calendar year, (2) the amount of jobs that will be retained or created, or both, by the qualifying project to be financed by qualified energy conservation bonds, and (3) the geographical proximity of the qualifying project to be financed by qualified energy conservation bonds to a municipality or county that reallocated its sub-allocation to the Authority.
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(d) Established dates for notice.
Any affected local government or regional authority that has issued qualified energy conservation bonds on or before the effective date of this Section must report its issuance of qualified energy conservation bonds to the Authority within 30 days after the effective date of this Section. After the effective date of this Section, any affected local government or any regional authority must report its issuance of qualified energy conservation bonds to the Authority not less than 30 days after those bonds are issued.
(e) Reports to the General Assembly.
Starting 60 days after the effective date of this Section and ending when there is no longer any allocation amount, the Authority shall file a report before the end of each fiscal year with the General Assembly detailing its implementation of this Section, including but not limited to the dollar amount of the allocation amount that has been reallocated by the Authority pursuant to this Section, the qualified energy conservation bonds issued in the State as of the date of the report, and descriptions of the qualifying projects financed by those qualified energy conservation bonds.
(Source: P.A. 98-90, eff. 7-15-13.)
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(20 ILCS 3501/830-30)
Sec. 830-30. State Guarantees for existing debt.
(a) The Authority is authorized to issue State Guarantees for farmers'
existing
debts held by a lender. For the purposes of this
Section, a farmer shall be a
resident of Illinois, who is a principal operator of a farm or land, at least
50% of whose annual gross income is derived from farming and whose debt to
asset
ratio shall not be less than 40%, except in those cases where the applicant has
previously used the guarantee program there shall be no debt to asset ratio or
income restriction. For the purposes of this
Section, debt to asset ratio shall
mean the current outstanding liabilities of the farmer divided by the current
outstanding assets of the farmer. The Authority shall establish the maximum
permissible debt to asset ratio based on criteria established by the Authority.
Lenders shall apply for the State Guarantees on forms provided by the Authority
and certify that the application and any other documents submitted are true and
correct. The lender or borrower, or both in combination, shall pay an
administrative fee as determined by the Authority. The applicant shall be
responsible for paying any fees or charges involved in recording mortgages,
releases, financing statements, insurance for secondary market issues and any
other similar fees or charges as the Authority may require. The application
shall at a minimum contain the farmer's name, address, present credit and
financial information, including cash flow statements, financial statements,
balance sheets, and any other information pertinent to the application, and the
collateral to be used to secure the State Guarantee. In addition, the lender
must agree to bring the farmer's debt to a current status at the time the State
Guarantee is provided and must also agree to charge a fixed or adjustable
interest rate which the Authority determines to be below the market rate of
interest generally available to the borrower. If both the lender and applicant
agree, the interest rate on the State Guarantee Loan can be converted to a fixed
interest rate at any time during the term of the loan.
Any State Guarantees provided under this
Section (i) shall not exceed $500,000
per farmer, (ii) shall be set up on a payment schedule not to exceed 30 years,
and shall be no longer than 30 years in duration, and (iii) shall be subject to
an annual review and renewal by the lender and the Authority; provided that
only
one such State Guarantee shall be outstanding per farmer at any one time. No
State Guarantee shall be revoked by the Authority without a 90-day notice, in
writing, to all parties. In those cases where the borrower has not previously
used the guarantee program, the lender shall not call due any loan during the
first 3 years for any reason except for lack of performance or insufficient
collateral. The lender can review and withdraw or continue with the State
Guarantee on an annual basis after the first 3 years of the loan, provided a
90-day notice, in writing, to all parties has been given.
(b) The Authority shall provide or renew a State Guarantee to a lender if:
(i) A fee equal to 25 basis points on the loan is |
| paid to the Authority on an annual basis by the lender.
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(ii) The application provides collateral acceptable
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| to the Authority that is at least equal to the State's portion of the Guarantee to be provided.
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(iii) The lender assumes all responsibility and costs
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| for pursuing legal action on collecting any loan that is delinquent or in default.
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(iv) The lender is responsible for the first 15% of
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| the outstanding principal of the note for which the State Guarantee has been applied.
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(c) There is hereby created outside of the State treasury a special fund to
be
known as the Illinois Agricultural Loan Guarantee Fund. The State Treasurer
shall be custodian of this Fund. Any amounts in the Illinois Agricultural Loan
Guarantee Fund not currently needed to meet the obligations of the Fund shall
be
invested as provided by law or used by the Authority to make direct loans or originate or purchase loan participations under subsection (i) or (r) of Section 801-40. All interest earned from these investments
shall be deposited into the Fund until the Fund reaches the maximum amount
authorized in this Act; thereafter, interest earned shall be deposited into the
General Revenue Fund. After September 1, 1989, annual investment earnings equal
to 1.5% of the Fund shall remain in the Fund to be used for the purposes
established in
Section 830-40 of this Act. All earnings on direct loans or loan participations made by the Authority under subsection (i) or (r) of Section 801-40 with amounts in this Fund shall become funds of the Authority. The Authority is authorized to
transfer to the Fund such amounts as are necessary to satisfy claims during the
duration of the State Guarantee program to secure State Guarantees issued under
this
Section, provided that amounts to be paid from the Industrial Project Insurance Fund created under Article 805 of this Act may be paid by the Authority directly to satisfy claims and need not
be deposited first into the Illinois Agricultural Loan Guarantee Fund. If for any reason the General Assembly fails to make an
appropriation sufficient to meet these obligations, this Act shall constitute
an
irrevocable and continuing appropriation of an amount necessary to secure
guarantees as defaults occur and the irrevocable and continuing authority for,
and direction to, the State Treasurer and the Comptroller to make the necessary
transfers to the Illinois Agricultural Loan Guarantee Fund, as directed by the
Governor, out of the General Revenue Fund. Within 30 days after November 15,
1985, the Authority may transfer up to $7,000,000 from available appropriations
into the Illinois Agricultural Loan Guarantee Fund for the purposes of this
Act.
Thereafter, the Authority may transfer additional amounts into the Illinois
Agricultural Loan Guarantee Fund to secure guarantees for defaults as defaults
occur. In the event of default by the farmer, the lender shall be entitled to,
and the Authority shall direct payment on, the State Guarantee after 90 days of
delinquency. All payments by the Authority to satisfy claims against the State Guarantee shall be made, in whole or in part, from any of the following funds in such order and in such amounts as the Authority shall determine: (1) the Industrial Project Insurance Fund created under Article 805 of this Act (if the Authority exercises its discretion under subsection (j) of Section 805-20); (2) the Illinois Agricultural Loan Guarantee Fund; or (3) the Illinois Farmer and Agribusiness Loan Guarantee Fund.
The Illinois Agricultural Loan Guarantee Fund shall guarantee receipt of payment
of the 85% of the principal and interest owed on the State Guarantee Loan by the
farmer to the guarantee holder, provided that payments by the Authority to satisfy claims against the State Guarantee shall be made in accordance with the preceding sentence. It shall be the responsibility of the lender to
proceed with the collecting and disposing of collateral on the State Guarantee under this Section, Section 830-35, Section 830-45, Section 830-50, Section 830-55, or Article 835
within 14 months of the time the State Guarantee is declared delinquent;
provided, however, that the lender shall not collect or dispose of collateral on
the State Guarantee without the express written prior approval of the Authority.
If the lender does not dispose of the collateral within 14 months, the lender
shall be liable to repay to the State interest on the State Guarantee equal to
the same rate which the lender charges on the State Guarantee; provided,
however, that the Authority may extend the 14-month period for a lender in the
case of bankruptcy or extenuating circumstances. The Fund from which a payment is made shall be reimbursed
for any amounts paid from that Fund under this
Section, Section 830-35, Section 830-45, Section 830-50, Section 830-55, or Article 835 upon liquidation of the collateral. The
Authority, by resolution of the Board, may borrow sums from the Fund and
provide
for repayment as soon as may be practical upon receipt of payments of principal
and interest by a farmer. Money may be borrowed from the Fund by the Authority
for the sole purpose of paying certain interest costs for farmers associated
with selling a loan subject to a State Guarantee in a secondary market as may
be
deemed reasonable and necessary by the Authority.
(d) Notwithstanding the provisions of this
Section 830-30 with respect to the
farmers and lenders who may obtain State Guarantees, the Authority may
promulgate rules establishing the eligibility of farmers and lenders to
participate in the State guarantee program and the terms, standards, and
procedures that will apply, when the Authority finds that emergency conditions
in Illinois agriculture have created the need for State Guarantees pursuant to
terms, standards, and procedures other than those specified in this
Section.
(Source: P.A. 100-919, eff. 8-17-18; 101-81, eff. 7-12-19.)
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(20 ILCS 3501/830-35)
Sec. 830-35. State Guarantees for loans to farmers and agribusiness;
eligibility. (a) The Authority is authorized to issue State Guarantees to lenders for
loans
to eligible farmers and agribusinesses for purposes set forth in this
Section.
For purposes of this
Section, an eligible farmer shall be a resident of Illinois
(i) who is principal operator of a farm or land, at least 50% of whose annual
gross income is derived from farming, (ii) whose annual total sales of
agricultural products, commodities, or livestock exceeds $20,000, and (iii)
whose net worth does not exceed $500,000. An eligible agribusiness shall be
that as defined in
Section 801-10 of this Act.
The Authority may approve applications by farmers and agribusinesses that
promote diversification of the farm economy of this State through the growth
and
development of new crops or livestock not customarily grown or produced in this
State or that emphasize a vertical integration of grain or livestock produced
or
raised in this State into a finished agricultural product for consumption or
use. "New crops or livestock not customarily grown or produced in this State"
shall not include corn, soybeans, wheat, swine, or beef or dairy cattle.
"Vertical integration of grain or livestock produced or raised in this State"
shall include any new or existing grain or livestock grown or produced in this
State.
Lenders shall apply for the State Guarantees on forms provided by the
Authority,
certify that the application and any other documents submitted are true and
correct, and pay an administrative fee as determined by the Authority. The
applicant shall be responsible for paying any fees or charges involved in
recording mortgages, releases, financing statements, insurance for secondary
market issues and any other similar fees or charges as the Authority may
require. The application shall at a minimum contain the farmer's or
agribusiness' name, address, present credit and financial information,
including cash flow statements, financial statements, balance sheets, and any
other
information pertinent to the application, and the collateral to be used to
secure the State Guarantee. In addition, the lender must agree to charge an
interest rate, which may vary, on the loan that the Authority determines to be
below the market rate of interest generally available to the borrower. If both
the lender and applicant agree, the interest rate on the State Guarantee Loan
can be converted to a fixed interest rate at any time during the term of the
loan.
Any State Guarantees provided under this
Section (i) shall not exceed $500,000
per farmer or an amount as determined by the Authority on a case-by-case
basis for an agribusiness, (ii) shall not exceed a term of 15 years, and (iii)
shall be subject to an annual review and renewal by the lender and the
Authority; provided that only one such State Guarantee shall be made per farmer
or agribusiness, except that additional State Guarantees may be made for
purposes of expansion of projects financed in part by a previously issued State
Guarantee. No State Guarantee shall be revoked by the Authority without a
90-day notice, in writing, to all parties. The lender shall not call due any
loan
for any reason except for lack of performance, insufficient collateral, or
maturity. A lender may review and withdraw or continue with a State Guarantee
on an annual basis after the first 5 years following closing of the loan
application if the loan contract provides for an interest rate that shall not
vary. A lender shall not withdraw a State Guarantee if the loan contract
provides for an interest rate that may vary, except for reasons set forth
herein.
(b) The Authority shall provide or renew a State Guarantee to a lender if:
(i) A fee equal to 25 basis points on the loan is |
| paid to the Authority on an annual basis by the lender.
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(ii) The application provides collateral acceptable
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| to the Authority that is at least equal to the State's portion of the Guarantee to be provided.
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(iii) The lender assumes all responsibility and costs
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| for pursuing legal action on collecting any loan that is delinquent or in default.
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(iv) The lender is responsible for the first 15% of
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| the outstanding principal of the note for which the State Guarantee has been applied.
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(c) There is hereby created outside of the State treasury a special fund to
be
known as the Illinois Farmer and Agribusiness Loan Guarantee Fund. The State
Treasurer shall be custodian of this Fund. Any amounts in the Fund not
currently needed to meet the obligations of the Fund shall be invested as
provided by law, or used by the Authority to make direct loans or originate or purchase loan participations under subsection (i) or (r) of Section 801-40. All interest earned from these investments shall be
deposited into the Fund until the Fund reaches the maximum amounts authorized
in
this Act; thereafter, interest earned shall be deposited into the General
Revenue Fund. After September 1, 1989, annual investment earnings equal to 1.5%
of the Fund shall remain in the Fund to be used for the purposes established in
Section 830-40 of this Act. All earnings on direct loans or loan participations made by the Authority under subsection (i) or (r) of Section 801-40 with amounts in this Fund shall become funds of the Authority. The Authority is authorized to transfer such
amounts
as are necessary to satisfy claims from available appropriations and from fund
balances of the Farm Emergency Assistance Fund as of June 30 of each year to
the
Illinois Farmer and Agribusiness Loan Guarantee Fund to secure State Guarantees
issued under this
Section,
Sections 830-30, 830-45, 830-50, and 830-55, and Article 835 of this Act. Amounts to be paid from the Industrial Project Insurance Fund created under Article 805 of this Act may be paid by the Authority directly to satisfy claims and need not be deposited first into the Illinois Farmer and Agribusiness Loan Guarantee Fund. If for any reason the
General Assembly fails to make an appropriation sufficient to meet these
obligations, this Act shall constitute an irrevocable and continuing
appropriation of an amount necessary to secure guarantees as defaults occur and
the irrevocable and continuing authority for, and direction to, the State
Treasurer and the Comptroller to make the necessary transfers to the Illinois
Farmer and Agribusiness Loan Guarantee Fund, as directed by the Governor, out
of
the General Revenue Fund. In the event of default by the borrower on State
Guarantee Loans under this
Section,
Section 830-45,
Section 830-50, or Section 830-55, the lender
shall be entitled to, and the Authority shall direct payment on, the State
Guarantee after 90 days of delinquency. All payments by the Authority to satisfy
claims against the State Guarantee shall be made, in whole or in part, from any of the following funds in such order and in such amounts as the Authority shall determine: (1) the Industrial Project Insurance Fund created under Article 805 of this Act (if the Authority exercises its discretion under subsection (j) of Section 805-20); (2) the Illinois Farmer and Agribusiness Loan Guarantee Fund; or (3) the Illinois Farmer and Agribusiness Loan Guarantee Fund. It shall be the responsibility of the
lender to proceed with the collecting and disposing of collateral on the State
Guarantee under this
Section,
Section 830-45,
Section 830-50, or Section 830-55 within 14 months of
the time the State Guarantee is declared delinquent. If the lender does not
dispose of the collateral within 14 months, the lender shall be liable to repay
to the State interest on the State Guarantee equal to the same rate that the
lender charges on the State Guarantee, provided that the Authority shall have
the authority to extend the 14-month period for a lender in the case of
bankruptcy or extenuating circumstances. The Fund shall be reimbursed for any
amounts paid under this
Section, Section 830-30,
Section 830-45,
Section 830-50, Section 830-55, or Article 835 upon liquidation
of the collateral.
The Authority, by resolution of the Board, may borrow sums from the Fund and
provide for repayment as soon as may be practical upon receipt of payments of
principal and interest by a borrower on State Guarantee Loans under this
Section, Section 830-30,
Section 830-45,
Section 830-50, Section 830-55, or Article 835. Money may be borrowed from the Fund by
the Authority for the sole purpose of paying certain interest costs for
borrowers associated with selling a loan subject to a State Guarantee under
this
Section, Section 830-30,
Section 830-45,
Section 830-50, Section 830-55, or Article 835 in a secondary market as may be deemed
reasonable and necessary by the Authority.
(d) Notwithstanding the provisions of this
Section 830-35 with respect to the
farmers, agribusinesses, and lenders who may obtain State Guarantees, the
Authority may promulgate rules establishing the eligibility of farmers,
agribusinesses, and lenders to participate in the State Guarantee program and
the terms, standards, and procedures that will apply, when the Authority finds
that emergency conditions in Illinois agriculture have created the need for
State Guarantees pursuant to terms, standards, and procedures other than those
specified in this
Section.
(Source: P.A. 100-919, eff. 8-17-18; 101-81, eff. 7-12-19.)
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