Bill Text: IL HB5616 | 2011-2012 | 97th General Assembly | Engrossed

NOTE: There are more recent revisions of this legislation. Read Latest Draft

---

Bill Title: Amends the Will-Kankakee Regional Development Authority Law. Provides that the Will-Kankakee Regional Development Authority may issue bonds, notes, or other evidences of indebtedness in an aggregate amount outstanding not to exceed $250,000,000 (now, $100,000,000). Provides that certain provisions concerning the State's moral obligation for the bonds of the Authority shall not apply to bonds issued by the Authority on or after the effective date of the amendatory Act. Provides that the notes and bonds issued by the Authority and the income from these notes and bonds may be free from all taxation by the State or its political subdivisions, except for estate, transfer, and inheritance taxes. Provides that the exemption from taxation shall apply to the income on any notes or bonds of the Authority only if the Authority in its sole judgment determines that the exemption enhances the marketability of the bonds or notes or reduces the interest rates that would otherwise be borne by the bonds or notes. Effective immediately.

Spectrum: Partisan Bill (Democrat 3-0)

Status: (Passed) 2012-07-13 - Public Act . . . . . . . . . 97-0790 [HB5616 Detail]

Download: Illinois-2011-HB5616-Engrossed.html

---

HB5616 Engrossed LRB097 18446 KMW 63673 b
AN ACT concerning local government.
Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
Section 5. The Will-Kankakee Regional Development
Authority Law is amended by changing Section 7 and by adding
Section 14 as follows:
(70 ILCS 535/7) (from Ch. 85, par. 7457)
Sec. 7. Bonds.
(a) The Authority, with the written approval of the
Governor, shall have the continuing power to issue bonds,
notes, or other evidences of indebtedness in an aggregate
amount outstanding not to exceed $250,000,000 $100,000,000 for
the purpose of developing, constructing, acquiring or
improving projects, including those established by business
entities locating or expanding property within the territorial
jurisdiction of the Authority, for entering into venture
capital agreements with businesses locating or expanding
within the territorial jurisdiction of the Authority, for
acquiring and improving any property necessary and useful in
connection therewith and for the purposes of the Employee
Ownership Assistance Act. For the purpose of evidencing the
obligations of the Authority to repay any money borrowed, the
Authority may, pursuant to resolution, from time to time issue

HB5616 Engrossed - 2 - LRB097 18446 KMW 63673 b
and dispose of its interest bearing revenue bonds, notes or
other evidences of indebtedness and may also from time to time
issue and dispose of such bonds, notes or other evidences of
indebtedness to refund, at maturity, at a redemption date or in
advance of either, any bonds, notes or other evidences of
indebtedness pursuant to redemption provisions or at any time
before maturity. All such bonds, notes or other evidences of
indebtedness shall be payable from the revenues or income to be
derived from loans made with respect to projects, from the
leasing or sale of the projects or from any other funds
available to the Authority for such purposes. The bonds, notes
or other evidences of indebtedness may bear such date or dates,
may mature at such time or times not exceeding 40 years from
their respective dates, may bear interest at such rate or rates
not exceeding the maximum rate permitted by the Bond
Authorization Act, may be in such form, may carry such
registration privileges, may be executed in such manner, may be
payable at such place or places, may be made subject to
redemption in such manner and upon such terms, with or without
premium as is stated on the face thereof, may be authenticated
in such manner and may contain such terms and covenants as may
be provided by an applicable resolution.
(b-1) The holder or holders of any bonds, notes or other
evidences of indebtedness issued by the Authority may bring
suits at law or proceedings in equity to compel the performance
and observance by any corporation or person or by the Authority

HB5616 Engrossed - 3 - LRB097 18446 KMW 63673 b
or any of its agents or employees of any contract or covenant
made with the holders of such bonds, notes or other evidences
of indebtedness, to compel such corporation, person, the
Authority and any of its agents or employees to perform any
duties required to be performed for the benefit of the holders
of any such bonds, notes or other evidences of indebtedness by
the provision of the resolution authorizing their issuance and
to enjoin such corporation, person, the Authority and any of
its agents or employees from taking any action in conflict with
any such contract or covenant.
(b-2) If the Authority fails to pay the principal of or
interest on any of the bonds or premium, if any, as the same
become due, a civil action to compel payment may be instituted
in the appropriate circuit court by the holder or holders of
the bonds on which such default of payment exists or by an
indenture trustee acting on behalf of such holders. Delivery of
a summons and a copy of the complaint to the Chairman of the
Board shall constitute sufficient service to give the circuit
court jurisdiction of the subject matter of such a suit and
jurisdiction over the Authority and its officers named as
defendants for the purpose of compelling such payment. Any
case, controversy or cause of action concerning the validity of
this Act relates to the revenue of the State of Illinois.
(c) Notwithstanding the form and tenor of any such bonds,
notes or other evidences of indebtedness and in the absence of
any express recital on the face thereof that it is

HB5616 Engrossed - 4 - LRB097 18446 KMW 63673 b
non-negotiable, all such bonds, notes and other evidences of
indebtedness shall be negotiable instruments. Pending the
preparation and execution of any such bonds, notes or other
evidences of indebtedness, temporary bonds, notes or evidences
of indebtedness may be issued as provided by ordinance.
(d) To secure the payment of any or all of such bonds,
notes or other evidences of indebtedness, the revenues to be
received by the Authority from a lease agreement or loan
agreement shall be pledged, and, for the purpose of setting
forth the covenants and undertakings of the Authority in
connection with the issuance thereof and the issuance of any
additional bonds, notes or other evidences of indebtedness
payable from such revenues, income or other funds to be derived
from projects, the Authority may execute and deliver a mortgage
or trust agreement. A remedy for any breach or default of the
terms of any such mortgage or trust agreement by the Authority
may be by mandamus proceedings in the appropriate circuit court
to compel the performance and compliance therewith, but the
trust agreement may prescribe by whom or on whose behalf such
action may be instituted.
(e) Such bonds or notes shall be secured as provided in the
authorizing ordinance which may, notwithstanding any other
provision of this Act, include in addition to any other
security a specific pledge or assignment of and lien on or
security interest in any or all revenues or money of the
Authority from whatever source which may by law be used for

HB5616 Engrossed - 5 - LRB097 18446 KMW 63673 b
debt service purposes and a specific pledge or assignment of
and lien on or security interest in any funds or accounts
established or provided for by ordinance of the Authority
authorizing the issuance of such bonds or notes.
(f) In the event that the Authority determines that monies
of the Authority will not be sufficient for the payment of the
principal of and interest on its bonds during the next State
fiscal year, the Chairman, as soon as practicable, shall
certify to the Governor the amount required by the Authority to
enable it to pay such principal of and interest on the bonds.
The Governor shall submit the amount so certified to the
General Assembly as soon as practicable, but no later than the
end of the current State fiscal year. This subsection shall not
apply to any bonds or notes as to which the Authority shall
have determined, in the resolution authorizing the issuance of
the bonds or notes, that this subsection shall not apply.
Whenever the Authority makes such a determination, that fact
shall be plainly stated on the face of the bonds or notes and
that fact shall also be reported to the Governor. This
subsection (f) shall not apply to any bond issued on or after
the effective date of this amendatory Act of the 97th General
Assembly.
In the event of a withdrawal of moneys from a reserve fund
established with respect to any issue or issues of bonds of the
Authority to pay principal or interest on those bonds, the
Chairman of the Authority, as soon as practicable, shall

HB5616 Engrossed - 6 - LRB097 18446 KMW 63673 b
certify to the Governor the amount required to restore the
reserve fund to the level required in the resolution or
indenture securing those bonds. The Governor shall submit the
amount so certified to the General Assembly as soon as
practicable, but no later than the end of the current State
fiscal year.
(g) The State of Illinois pledges to and agrees with the
holders of the bonds and notes of the Authority issued pursuant
to this Section that the State will not limit or alter the
rights and powers vested in the Authority by this Act so as to
impair the terms of any contract made by the Authority with
such holders or in any way impair the rights and remedies of
such holders until such bonds and notes, together with interest
thereon, with interest on any unpaid installments of interest,
and all costs and expenses in connection with any action or
proceedings by or on behalf of such holders, are fully met and
discharged. In addition, the State pledges to and agrees with
the holders of the bonds and notes of the Authority issued
pursuant to this Section that the State will not limit or alter
the basis on which State funds are to be paid to the Authority
as provided in this Act, or the use of such funds, so as to
impair the terms of any such contract. The Authority is
authorized to include these pledges and agreements of the State
in any contract with the holders of bonds or notes issued
pursuant to this Section.
(Source: P.A. 86-1481; 87-778.)

HB5616 Engrossed - 7 - LRB097 18446 KMW 63673 b
(70 ILCS 535/14 new)
Sec. 14. Bonds and notes; exemption from taxation. The
creation of the Authority is in all respects for the benefit of
the people of Illinois and for the improvement of their health,
safety, welfare, comfort, and security, and its purposes are
public purposes. In consideration thereof, the notes and bonds
of the Authority issued pursuant to this Act and the income
from these notes and bonds may be free from all taxation by the
State or its political subdivisions, except for estate,
transfer, and inheritance taxes. The exemption from taxation
set forth in this Section shall apply to the income on any
notes or bonds of the Authority only if the Authority in its
sole judgment determines that the exemption enhances the
marketability of the bonds or notes or reduces the interest
rates that would otherwise be borne by the bonds or notes. For
purposes of Section 250 of the Illinois Income Tax Act, the
exemption of the Authority shall terminate after all of the
bonds have been paid. The amount of the income that shall be
added and then subtracted on the Illinois income tax return of
a taxpayer, subject to Section 203 of the Illinois Income Tax
Act, from federal adjusted gross income or federal taxable
income in computing Illinois base income shall be the interest
net of any bond premium amortization.
Section 99. Effective date. This Act takes effect upon
becoming law.