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91_HB0063ham006
LRB9100535KScsam
1 AMENDMENT TO HOUSE BILL 63
2 AMENDMENT NO. . Amend House Bill 63, AS AMENDED, by
3 replacing everything after the enacting clause with the
4 following:
5 "Section 5. The State Finance Act is amended by adding
6 Sections 5.490 and 8.36 as follows:
7 (30 ILCS 105/5.490 new)
8 Sec. 5.490. The Airport Land Loan Revolving Fund.
9 (30 ILCS 105/8.36 new)
10 Sec. 8.36. Airport Land Loan Revolving Fund.
11 Appropriations for loans to public airport authorities by the
12 Department of Transportation pursuant to Section 34b of the
13 Illinois Aeronautics Act shall be payable from the Airport
14 Land Loan Revolving Fund.
15 Section 10. The Illinois Aeronautics Act is amended by
16 adding Section 34b as follows:
17 (620 ILCS 5/34b new)
18 Sec. 34b. Airport land loan revolving fund.
19 (a) The Department may make loans to public airport
20 owners, outside of the counties of Lake, Cook, Will, Kane,
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1 and DuPage, for the purchase of any real estate interests as
2 may be needed for essential airport purposes, including
3 future needs. The loans are payable from the Airport Land
4 Loan Revolving Fund, subject to appropriation. All
5 repayments of loans made pursuant to this Section, including
6 interest thereon and penalties, shall be deposited in the
7 Airport Land Loan Revolving Fund. The Treasurer shall
8 deposit all investment earnings arising from balances in the
9 Airport Land Loan Revolving Fund in that Fund.
10 (b) All loans under this Section shall be made by
11 contract between the Department and the public airport owner,
12 which contract shall include the following provisions:
13 (1) The annual rate of interest shall be 2 percent
14 below the Prime Rate charged by banks, as published by
15 the Federal Reserve, in effect at the time the Department
16 approves the loan, but in no event shall less than 2
17 percent be charged.
18 (2) The term of any loan shall not exceed five
19 years, but it may be for less by mutual agreement.
20 (3) Loan payments shall be scheduled in equal
21 amounts for the periods determined under paragraph (4) of
22 this Section. The loan payments shall be calculated so
23 that the loan is completely repaid, with interest, on
24 outstanding balances, by the end of the term determined
25 under paragraph (2) of this Section. There shall be no
26 penalty for early payment ahead of the payment schedule.
27 (4) The period of loan payments shall be annual,
28 unless by mutual agreement a period of less than one year
29 is chosen.
30 (5) The loan shall be secured with the land
31 purchased, in whole or in part, with the loan and
32 considered as collateral. The public airport owner shall
33 assign a first priority interest in the property to the
34 State.
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1 (6) If the loan payment is not made within 15 days
2 after the scheduled date determined under paragraph (3)
3 of this Section, a penalty of 10% of the payment shall be
4 assessed. If 30 days after the scheduled payment date no
5 payment has been received, the loan shall be considered
6 in default.
7 (7) As soon as a loan is considered in default, the
8 Department shall notify the public airport owner and
9 attempt to enter into a renegotiation of the loan payment
10 amounts and schedule determined under paragraph (3) of
11 this Section. In no case shall the term of the loan be
12 extended beyond the initial term determined under
13 paragraph (2) of this Section; nor shall the interest
14 rate be lowered nor any interest be forgiven. If a
15 renegotiation of loan payment amounts and schedule is
16 obtained to the Department's satisfaction within 30 days
17 of notification of default, then the new payment schedule
18 shall replace the one determined by paragraph (3) of this
19 Section and shall be used to measure compliance with the
20 loan for purposes of default. If after 30 days of
21 notification of default the Department has not obtained a
22 renegotiation to its satisfaction, the Department shall
23 declare the loan balance due and payable immediately. If
24 the public airport owner cannot immediately pay the
25 balance of the loan, the Department shall proceed to
26 foreclose.
27 (c) The Airport Land Loan Resolving Fund is created in
28 the State Treasury.
29 Section 99. Effective date. This Act takes effect upon
30 becoming law.".