State of Illinois
91st General Assembly
Legislation

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91_HB0063enr

 
HB0063 Enrolled                                LRB9100535NTsb

 1        AN ACT in relation to real estate.

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

 4        Section  5.  The  State  Finance Act is amended by adding
 5    Sections 5.490 and 8.36 as follows:

 6        (30 ILCS 105/5.490 new)
 7        Sec. 5.490.  The Airport Land Loan Revolving Fund.

 8        (30 ILCS 105/8.36 new)
 9        Sec.   8.36.  Airport   Land   Loan    Revolving    Fund.
10    Appropriations  for  loans  to  public  airport owners by the
11    Department of Transportation pursuant to Section 34b  of  the
12    Illinois  Aeronautics  Act  shall be payable from the Airport
13    Land Loan Revolving Fund.

14        Section 10.  The Illinois Aeronautics Act is  amended  by
15    adding Section 34b as follows:

16        (620 ILCS 5/34b new)
17        Sec. 34b.  Airport Land Loan Program.
18        (a)  The  Department  may  make  loans  to public airport
19    owners for the purchase of any real estate interests  as  may
20    be  needed  for  essential airport purposes, including future
21    needs, subject to the following conditions:
22             (1)  loans may be made only to public airport owners
23        that are operating an airport as of January 1, 1999; and
24             (2)  loans may not be made for airports that provide
25        scheduled commercial air service in counties  of  greater
26        than  5,000,000  population.   The loans are payable from
27        the  Airport  Land  Loan  Revolving  Fund,   subject   to
28        appropriation.   All repayments of loans made pursuant to
 
HB0063 Enrolled            -2-                 LRB9100535NTsb
 1        this Section, including interest thereon  and  penalties,
 2        shall  be  deposited  in  the Airport Land Loan Revolving
 3        Fund.   The  Treasurer  shall  deposit   all   investment
 4        earnings  arising  from balances in the Airport Land Loan
 5        Revolving Fund in that Fund.
 6        (b)  All loans  under  this  Section  shall  be  made  by
 7    contract between the Department and the public airport owner,
 8    which contract shall include the following provisions:
 9             (1)  The  annual rate of interest shall be 2 percent
10        below the Prime Rate charged by banks,  as  published  by
11        the  Federal  Reserve  Board,  in  effect at the time the
12        Department approves the loan, but in no event shall  less
13        than 2 percent be charged.
14             (2)  The  term  of  any  loan  shall not exceed five
15        years, but it may be for less by mutual agreement.
16             (3)  Loan  payments  shall  be  scheduled  in  equal
17        amounts for the periods determined under paragraph (4) of
18        this Section.  The loan payments shall be  calculated  so
19        that  the  loan  is  completely repaid, with interest, on
20        outstanding balances, by the end of the  term  determined
21        under  paragraph  (2) of this Section.  There shall be no
22        penalty for early payment ahead of the payment schedule.
23             (4)  The period of loan payments  shall  be  annual,
24        unless by mutual agreement a period of less than one year
25        is chosen.
26             (5)  The   loan  shall  be  secured  with  the  land
27        purchased, in  whole  or  in  part,  with  the  loan  and
28        considered as collateral.  The public airport owner shall
29        assign  a  first priority interest in the property to the
30        State.
31             (6)  If the loan payment is not made within 15  days
32        after  the  scheduled date determined under paragraph (3)
33        of this Section, a penalty of 10% of the payment shall be
34        assessed.  If 30 days after the scheduled payment date no
 
HB0063 Enrolled            -3-                 LRB9100535NTsb
 1        payment has been received, the loan shall  be  considered
 2        in default.
 3             (7)  As soon as a loan is considered in default, the
 4        Department  shall  notify  the  public  airport owner and
 5        attempt to enter into a renegotiation of the loan payment
 6        amounts and schedule determined under  paragraph  (3)  of
 7        this  Section.   In no case shall the term of the loan be
 8        extended  beyond  the  initial  term   determined   under
 9        paragraph  (2)  of  this  Section; nor shall the interest
10        rate be lowered nor  any  interest  be  forgiven.   If  a
11        renegotiation  of  loan  payment  amounts and schedule is
12        obtained to the Department's satisfaction within 30  days
13        of notification of default, then the new payment schedule
14        shall replace the one determined by paragraph (3) of this
15        Section  and shall be used to measure compliance with the
16        loan for purposes  of  default.   If  after  30  days  of
17        notification of default the Department has not obtained a
18        renegotiation  to  its satisfaction, the Department shall
19        declare the loan balance due and payable immediately.  If
20        the public  airport  owner  cannot  immediately  pay  the
21        balance  of  the  loan,  the  Department shall proceed to
22        foreclose.
23        (c)  The Department may  promulgate  any  rules  that  it
24    finds   appropriate  to  implement  this  Airport  Land  Loan
25    Program.
26        (d)  The Airport Land Loan Revolving Fund is  created  in
27    the State Treasury.

28        Section  99.  Effective date.  This Act takes effect upon
29    becoming law.

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