Bill Text: IL SB0043 | 2017-2018 | 100th General Assembly | Chaptered

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Bill Title: Amends the Grant Accountability and Transparency Act. Makes a technical change in a Section concerning the short title.

Spectrum: Partisan Bill (Democrat 3-0)

Status: (Passed) 2018-08-17 - Public Act . . . . . . . . . 100-0919 [SB0043 Detail]

Download: Illinois-2017-SB0043-Chaptered.html

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Public Act 100-0919
SB0043 Enrolled LRB100 04951 MLM 14961 b
AN ACT concerning finance.
Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
Section 5. The Illinois Finance Authority Act is amended by
changing Sections 801-5, 801-10, 801-40, 805-5, 805-15,
825-65, 830-30, 830-35, 830-55, and 845-75 as follows:
(20 ILCS 3501/801-5)
Sec. 801-5. Findings and declaration of policy. The General
Assembly hereby finds, determines and declares:
(a) that there are a number of existing State authorities
authorized to issue bonds to alleviate the conditions and
promote the objectives set forth below; and to provide a
stronger, better coordinated development effort, it is
determined to be in the interest of promoting the health,
safety, morals and general welfare of all the people of the
State to consolidate certain of such existing authorities into
one finance authority;
(b) that involuntary unemployment affects the health,
safety, morals and general welfare of the people of the State
of Illinois;
(c) that the economic burdens resulting from involuntary
unemployment fall in part upon the State in the form of public
assistance and reduced tax revenues, and in the event the

unemployed worker and his family migrate elsewhere to find
work, may also fall upon the municipalities and other taxing
districts within the areas of unemployment in the form of
reduced tax revenues, thereby endangering their financial
ability to support necessary governmental services for their
remaining inhabitants;
(d) that a vigorous growing economy is the basic source of
job opportunities;
(e) that protection against involuntary unemployment, its
economic burdens and the spread of economic stagnation can best
be provided by promoting, attracting, stimulating and
revitalizing industry, manufacturing and commerce in the
State;
(f) that the State has a responsibility to help create a
favorable climate for new and improved job opportunities for
its citizens by encouraging the development of commercial
businesses and industrial and manufacturing plants within the
State;
(g) that increased availability of funds for construction
of new facilities and the expansion and improvement of existing
facilities for industrial, commercial and manufacturing
facilities will provide for new and continued employment in the
construction industry and alleviate the burden of
unemployment;
(h) that in the absence of direct governmental subsidies
the unaided operations of private enterprise do not provide

sufficient resources for residential construction,
rehabilitation, rental or purchase, and that support from
housing related commercial facilities is one means of
stimulating residential construction, rehabilitation, rental
and purchase;
(i) that it is in the public interest and the policy of
this State to foster and promote by all reasonable means the
provision of adequate capital markets and facilities for
borrowing money by units of local government, and for the
financing of their respective public improvements and other
governmental purposes within the State from proceeds of bonds
or notes issued by those governmental units; and to assist
local governmental units in fulfilling their needs for those
purposes by use of creation of indebtedness;
(j) that it is in the public interest and the policy of
this State to the extent possible, to reduce the costs of
indebtedness to taxpayers and residents of this State and to
encourage continued investor interest in the purchase of bonds
or notes of governmental units as sound and preferred
securities for investment; and to encourage governmental units
to continue their independent undertakings of public
improvements and other governmental purposes and the financing
thereof, and to assist them in those activities by making funds
available at reduced interest costs for orderly financing of
those purposes, especially during periods of restricted credit
or money supply, and particularly for those governmental units

not otherwise able to borrow for those purposes;
(k) that in this State the following conditions exist: (i)
an inadequate supply of funds at interest rates sufficiently
low to enable persons engaged in agriculture in this State to
pursue agricultural operations at present levels; (ii) that
such inability to pursue agricultural operations lessens the
supply of agricultural commodities available to fulfill the
needs of the citizens of this State; (iii) that such inability
to continue operations decreases available employment in the
agricultural sector of the State and results in unemployment
and its attendant problems; (iv) that such conditions prevent
the acquisition of an adequate capital stock of farm equipment
and machinery, much of which is manufactured in this State,
therefore impairing the productivity of agricultural land and,
further, causing unemployment or lack of appropriate increase
in employment in such manufacturing; (v) that such conditions
are conducive to consolidation of acreage of agricultural land
with fewer individuals living and farming on the traditional
family farm; (vi) that these conditions result in a loss in
population, unemployment and movement of persons from rural to
urban areas accompanied by added costs to communities for
creation of new public facilities and services; (vii) that
there have been recurrent shortages of funds for agricultural
purposes from private market sources at reasonable rates of
interest; (viii) that these shortages have made the sale and
purchase of agricultural land to family farmers a virtual

impossibility in many parts of the State; (ix) that the
ordinary operations of private enterprise have not in the past
corrected these conditions; and (x) that a stable supply of
adequate funds for agricultural financing is required to
encourage family farmers in an orderly and sustained manner and
to reduce the problems described above;
(l) that for the benefit of the people of the State of
Illinois, the conduct and increase of their commerce, the
protection and enhancement of their welfare, the development of
continued prosperity and the improvement of their health and
living conditions it is essential that all the people of the
State be given the fullest opportunity to learn and to develop
their intellectual and mental capacities and skills; that to
achieve these ends it is of the utmost importance that private
institutions of higher education within the State be provided
with appropriate additional means to assist the people of the
State in achieving the required levels of learning and
development of their intellectual and mental capacities and
skills and that cultural institutions within the State be
provided with appropriate additional means to expand the
services and resources which they offer for the cultural,
intellectual, scientific, educational and artistic enrichment
of the people of the State;
(m) that in order to foster civic and neighborhood pride,
citizens require access to facilities such as educational
institutions, recreation, parks and open spaces, entertainment

and sports, a reliable transportation network, cultural
facilities and theaters and other facilities as authorized by
this Act, and that it is in the best interests of the State to
lower the costs of all such facilities by providing financing
through the State;
(n) that to preserve and protect the health of the citizens
of the State, and lower the costs of health care, that
financing for health facilities should be provided through the
State; and it is hereby declared to be the policy of the State,
in the interest of promoting the health, safety, morals and
general welfare of all the people of the State, to address the
conditions noted above, to increase job opportunities and to
retain existing jobs in the State, by making available through
the Illinois Finance Authority, hereinafter created, funds for
the development, improvement and creation of industrial,
housing, local government, educational, health, public purpose
and other projects; to issue its bonds and notes to make funds
at reduced rates and on more favorable terms for borrowing by
local governmental units through the purchase of the bonds or
notes of the governmental units; and to make or acquire loans
for the acquisition and development of agricultural
facilities; to provide financing for private institutions of
higher education, cultural institutions, health facilities and
other facilities and projects as authorized by this Act; and to
grant broad powers to the Illinois Finance Authority to
accomplish and to carry out these policies of the State which

are in the public interest of the State and of its taxpayers
and residents; and
(o) that providing financing alternatives for projects
that are located outside the State that are owned, operated,
leased, managed by, or otherwise affiliated with, institutions
located within the State would promote the economy of the State
for the benefit of the health, welfare, safety, trade,
commerce, industry, and economy of the people of the State by
creating employment opportunities in the State and lowering the
cost of accessing healthcare, private education, or cultural
institutions in the State by reducing the cost of financing or
operating those projects; and .
(p) that the realization of the objectives of the Authority
identified in this Act including, without limitation, those
designed (1) to assist and enable veterans, minorities, women
and disabled individuals to own and operate small businesses;
(2) to assist in the delivery of agricultural assistance; and
(3) to aid, assist, and encourage economic growth and
development within this State, will be enhanced by empowering
the Authority to purchase loan participations from
participating lenders.
(Source: P.A. 96-1021, eff. 7-12-10.)
(20 ILCS 3501/801-10)
Sec. 801-10. Definitions. The following terms, whenever
used or referred to in this Act, shall have the following

meanings, except in such instances where the context may
clearly indicate otherwise:
(a) The term "Authority" means the Illinois Finance
Authority created by this Act.
(b) The term "project" means an industrial project,
conservation project, housing project, public purpose project,
higher education project, health facility project, cultural
institution project, municipal bond program project, PACE
Project, agricultural facility or agribusiness, and "project"
may include any combination of one or more of the foregoing
undertaken jointly by any person with one or more other
persons.
(c) The term "public purpose project" means any project or
facility, including without limitation land, buildings,
structures, machinery, equipment and all other real and
personal property, which is authorized or required by law to be
acquired, constructed, improved, rehabilitated, reconstructed,
replaced or maintained by any unit of government or any other
lawful public purpose which is authorized or required by law to
be undertaken by any unit of government.
(d) The term "industrial project" means the acquisition,
construction, refurbishment, creation, development or
redevelopment of any facility, equipment, machinery, real
property or personal property for use by any instrumentality of
the State or its political subdivisions, for use by any person
or institution, public or private, for profit or not for

profit, or for use in any trade or business, including, but not
limited to, any industrial, manufacturing or commercial
enterprise that is located within or outside the State,
provided that, with respect to a project involving property
located outside the State, the property must be owned,
operated, leased or managed by an entity located within the
State or an entity affiliated with an entity located within the
State, and which is (1) a capital project, including, but not
limited to: (i) land and any rights therein, one or more
buildings, structures or other improvements, machinery and
equipment, whether now existing or hereafter acquired, and
whether or not located on the same site or sites; (ii) all
appurtenances and facilities incidental to the foregoing,
including, but not limited to, utilities, access roads,
railroad sidings, track, docking and similar facilities,
parking facilities, dockage, wharfage, railroad roadbed,
track, trestle, depot, terminal, switching and signaling or
related equipment, site preparation and landscaping; and (iii)
all non-capital costs and expenses relating thereto or (2) any
addition to, renovation, rehabilitation or improvement of a
capital project or (3) any activity or undertaking within or
outside the State, provided that, with respect to a project
involving property located outside the State, the property must
be owned, operated, leased or managed by an entity located
within the State or an entity affiliated with an entity located
within the State, which the Authority determines will aid,

assist or encourage economic growth, development or
redevelopment within the State or any area thereof, will
promote the expansion, retention or diversification of
employment opportunities within the State or any area thereof
or will aid in stabilizing or developing any industry or
economic sector of the State economy. The term "industrial
project" also means the production of motion pictures.
(e) The term "bond" or "bonds" shall include bonds, notes
(including bond, grant or revenue anticipation notes),
certificates and/or other evidences of indebtedness
representing an obligation to pay money, including refunding
bonds.
(f) The terms "lease agreement" and "loan agreement" shall
mean: (i) an agreement whereby a project acquired by the
Authority by purchase, gift or lease is leased to any person,
corporation or unit of local government which will use or cause
the project to be used as a project as heretofore defined upon
terms providing for lease rental payments at least sufficient
to pay when due all principal of, interest and premium, if any,
on any bonds of the Authority issued with respect to such
project, providing for the maintenance, insuring and operation
of the project on terms satisfactory to the Authority,
providing for disposition of the project upon termination of
the lease term, including purchase options or abandonment of
the premises, and such other terms as may be deemed desirable
by the Authority, or (ii) any agreement pursuant to which the

Authority agrees to loan the proceeds of its bonds issued with
respect to a project or other funds of the Authority to any
person which will use or cause the project to be used as a
project as heretofore defined upon terms providing for loan
repayment installments at least sufficient to pay when due all
principal of, interest and premium, if any, on any bonds of the
Authority, if any, issued with respect to the project, and
providing for maintenance, insurance and other matters as may
be deemed desirable by the Authority.
(g) The term "financial aid" means the expenditure of
Authority funds or funds provided by the Authority through the
issuance of its bonds, notes or other evidences of indebtedness
or from other sources for the development, construction,
acquisition or improvement of a project.
(h) The term "person" means an individual, corporation,
unit of government, business trust, estate, trust, partnership
or association, 2 or more persons having a joint or common
interest, or any other legal entity.
(i) The term "unit of government" means the federal
government, the State or unit of local government, a school
district, or any agency or instrumentality, office, officer,
department, division, bureau, commission, college or
university thereof.
(j) The term "health facility" means: (a) any public or
private institution, place, building, or agency required to be
licensed under the Hospital Licensing Act; (b) any public or

private institution, place, building, or agency required to be
licensed under the Nursing Home Care Act, the Specialized
Mental Health Rehabilitation Act of 2013, the ID/DD Community
Care Act, or the MC/DD Act; (c) any public or licensed private
hospital as defined in the Mental Health and Developmental
Disabilities Code; (d) any such facility exempted from such
licensure when the Director of Public Health attests that such
exempted facility meets the statutory definition of a facility
subject to licensure; (e) any other public or private health
service institution, place, building, or agency which the
Director of Public Health attests is subject to certification
by the Secretary, U.S. Department of Health and Human Services
under the Social Security Act, as now or hereafter amended, or
which the Director of Public Health attests is subject to
standard-setting by a recognized public or voluntary
accrediting or standard-setting agency; (f) any public or
private institution, place, building or agency engaged in
providing one or more supporting services to a health facility;
(g) any public or private institution, place, building or
agency engaged in providing training in the healing arts,
including, but not limited to, schools of medicine, dentistry,
osteopathy, optometry, podiatry, pharmacy or nursing, schools
for the training of x-ray, laboratory or other health care
technicians and schools for the training of para-professionals
in the health care field; (h) any public or private congregate,
life or extended care or elderly housing facility or any public

or private home for the aged or infirm, including, without
limitation, any Facility as defined in the Life Care Facilities
Act; (i) any public or private mental, emotional or physical
rehabilitation facility or any public or private educational,
counseling, or rehabilitation facility or home, for those
persons with a developmental disability, those who are
physically ill or disabled, the emotionally disturbed, those
persons with a mental illness or persons with learning or
similar disabilities or problems; (j) any public or private
alcohol, drug or substance abuse diagnosis, counseling
treatment or rehabilitation facility, (k) any public or private
institution, place, building or agency licensed by the
Department of Children and Family Services or which is not so
licensed but which the Director of Children and Family Services
attests provides child care, child welfare or other services of
the type provided by facilities subject to such licensure; (l)
any public or private adoption agency or facility; and (m) any
public or private blood bank or blood center. "Health facility"
also means a public or private structure or structures suitable
primarily for use as a laboratory, laundry, nurses or interns
residence or other housing or hotel facility used in whole or
in part for staff, employees or students and their families,
patients or relatives of patients admitted for treatment or
care in a health facility, or persons conducting business with
a health facility, physician's facility, surgicenter,
administration building, research facility, maintenance,

storage or utility facility and all structures or facilities
related to any of the foregoing or required or useful for the
operation of a health facility, including parking or other
facilities or other supporting service structures required or
useful for the orderly conduct of such health facility. "Health
facility" also means, with respect to a project located outside
the State, any public or private institution, place, building,
or agency which provides services similar to those described
above, provided that such project is owned, operated, leased or
managed by a participating health institution located within
the State, or a participating health institution affiliated
with an entity located within the State.
(k) The term "participating health institution" means (i) a
private corporation or association or (ii) a public entity of
this State, in either case authorized by the laws of this State
or the applicable state to provide or operate a health facility
as defined in this Act and which, pursuant to the provisions of
this Act, undertakes the financing, construction or
acquisition of a project or undertakes the refunding or
refinancing of obligations, loans, indebtedness or advances as
provided in this Act.
(l) The term "health facility project", means a specific
health facility work or improvement to be financed or
refinanced (including without limitation through reimbursement
of prior expenditures), acquired, constructed, enlarged,
remodeled, renovated, improved, furnished, or equipped, with

funds provided in whole or in part hereunder, any accounts
receivable, working capital, liability or insurance cost or
operating expense financing or refinancing program of a health
facility with or involving funds provided in whole or in part
hereunder, or any combination thereof.
(m) The term "bond resolution" means the resolution or
resolutions authorizing the issuance of, or providing terms and
conditions related to, bonds issued under this Act and
includes, where appropriate, any trust agreement, trust
indenture, indenture of mortgage or deed of trust providing
terms and conditions for such bonds.
(n) The term "property" means any real, personal or mixed
property, whether tangible or intangible, or any interest
therein, including, without limitation, any real estate,
leasehold interests, appurtenances, buildings, easements,
equipment, furnishings, furniture, improvements, machinery,
rights of way, structures, accounts, contract rights or any
interest therein.
(o) The term "revenues" means, with respect to any project,
the rents, fees, charges, interest, principal repayments,
collections and other income or profit derived therefrom.
(p) The term "higher education project" means, in the case
of a private institution of higher education, an educational
facility to be acquired, constructed, enlarged, remodeled,
renovated, improved, furnished, or equipped, or any
combination thereof.

(q) The term "cultural institution project" means, in the
case of a cultural institution, a cultural facility to be
acquired, constructed, enlarged, remodeled, renovated,
improved, furnished, or equipped, or any combination thereof.
(r) The term "educational facility" means any property
located within the State, or any property located outside the
State, provided that, if the property is located outside the
State, it must be owned, operated, leased or managed by an
entity located within the State or an entity affiliated with an
entity located within the State, in each case constructed or
acquired before or after the effective date of this Act, which
is or will be, in whole or in part, suitable for the
instruction, feeding, recreation or housing of students, the
conducting of research or other work of a private institution
of higher education, the use by a private institution of higher
education in connection with any educational, research or
related or incidental activities then being or to be conducted
by it, or any combination of the foregoing, including, without
limitation, any such property suitable for use as or in
connection with any one or more of the following: an academic
facility, administrative facility, agricultural facility,
assembly hall, athletic facility, auditorium, boating
facility, campus, communication facility, computer facility,
continuing education facility, classroom, dining hall,
dormitory, exhibition hall, fire fighting facility, fire
prevention facility, food service and preparation facility,

gymnasium, greenhouse, health care facility, hospital,
housing, instructional facility, laboratory, library,
maintenance facility, medical facility, museum, offices,
parking area, physical education facility, recreational
facility, research facility, stadium, storage facility,
student union, study facility, theatre or utility.
(s) The term "cultural facility" means any property located
within the State, or any property located outside the State,
provided that, if the property is located outside the State, it
must be owned, operated, leased or managed by an entity located
within the State or an entity affiliated with an entity located
within the State, in each case constructed or acquired before
or after the effective date of this Act, which is or will be,
in whole or in part, suitable for the particular purposes or
needs of a cultural institution, including, without
limitation, any such property suitable for use as or in
connection with any one or more of the following: an
administrative facility, aquarium, assembly hall, auditorium,
botanical garden, exhibition hall, gallery, greenhouse,
library, museum, scientific laboratory, theater or zoological
facility, and shall also include, without limitation, books,
works of art or music, animal, plant or aquatic life or other
items for display, exhibition or performance. The term
"cultural facility" includes buildings on the National
Register of Historic Places which are owned or operated by
nonprofit entities.

(t) "Private institution of higher education" means a
not-for-profit educational institution which is not owned by
the State or any political subdivision, agency,
instrumentality, district or municipality thereof, which is
authorized by law to provide a program of education beyond the
high school level and which:
(1) Admits as regular students only individuals having
a certificate of graduation from a high school, or the
recognized equivalent of such a certificate;
(2) Provides an educational program for which it awards
a bachelor's degree, or provides an educational program,
admission into which is conditioned upon the prior
attainment of a bachelor's degree or its equivalent, for
which it awards a postgraduate degree, or provides not less
than a 2-year program which is acceptable for full credit
toward such a degree, or offers a 2-year program in
engineering, mathematics, or the physical or biological
sciences which is designed to prepare the student to work
as a technician and at a semiprofessional level in
engineering, scientific, or other technological fields
which require the understanding and application of basic
engineering, scientific, or mathematical principles or
knowledge;
(3) Is accredited by a nationally recognized
accrediting agency or association or, if not so accredited,
is an institution whose credits are accepted, on transfer,

by not less than 3 institutions which are so accredited,
for credit on the same basis as if transferred from an
institution so accredited, and holds an unrevoked
certificate of approval under the Private College Act from
the Board of Higher Education, or is qualified as a "degree
granting institution" under the Academic Degree Act; and
(4) Does not discriminate in the admission of students
on the basis of race or color. "Private institution of
higher education" also includes any "academic
institution".
(u) The term "academic institution" means any
not-for-profit institution which is not owned by the State or
any political subdivision, agency, instrumentality, district
or municipality thereof, which institution engages in, or
facilitates academic, scientific, educational or professional
research or learning in a field or fields of study taught at a
private institution of higher education. Academic institutions
include, without limitation, libraries, archives, academic,
scientific, educational or professional societies,
institutions, associations or foundations having such
purposes.
(v) The term "cultural institution" means any
not-for-profit institution which is not owned by the State or
any political subdivision, agency, instrumentality, district
or municipality thereof, which institution engages in the
cultural, intellectual, scientific, educational or artistic

enrichment of the people of the State. Cultural institutions
include, without limitation, aquaria, botanical societies,
historical societies, libraries, museums, performing arts
associations or societies, scientific societies and zoological
societies.
(w) The term "affiliate" means, with respect to financing
of an agricultural facility or an agribusiness, any lender, any
person, firm or corporation controlled by, or under common
control with, such lender, and any person, firm or corporation
controlling such lender.
(x) The term "agricultural facility" means land, any
building or other improvement thereon or thereto, and any
personal properties deemed necessary or suitable for use,
whether or not now in existence, in farming, ranching, the
production of agricultural commodities (including, without
limitation, the products of aquaculture, hydroponics and
silviculture) or the treating, processing or storing of such
agricultural commodities when such activities are customarily
engaged in by farmers as a part of farming and which land,
building, improvement or personal property is located within
the State, or is located outside the State, provided that, if
such property is located outside the State, it must be owned,
operated, leased, or managed by an entity located within the
State or an entity affiliated with an entity located within the
State.
(y) The term "lender" with respect to financing of an

agricultural facility or an agribusiness, means any federal or
State chartered bank, Federal Land Bank, Production Credit
Association, Bank for Cooperatives, federal or State chartered
savings and loan association or building and loan association,
Small Business Investment Company or any other institution
qualified within this State to originate and service loans,
including, but without limitation to, insurance companies,
credit unions and mortgage loan companies. "Lender" also means
a wholly owned subsidiary of a manufacturer, seller or
distributor of goods or services that makes loans to businesses
or individuals, commonly known as a "captive finance company".
(z) The term "agribusiness" means any sole proprietorship,
limited partnership, co-partnership, joint venture,
corporation or cooperative which operates or will operate a
facility located within the State or outside the State,
provided that, if any facility is located outside the State, it
must be owned, operated, leased, or managed by an entity
located within the State or an entity affiliated with an entity
located within the State, that is related to the processing of
agricultural commodities (including, without limitation, the
products of aquaculture, hydroponics and silviculture) or the
manufacturing, production or construction of agricultural
buildings, structures, equipment, implements, and supplies, or
any other facilities or processes used in agricultural
production. Agribusiness includes but is not limited to the
following:

(1) grain handling and processing, including grain
storage, drying, treatment, conditioning, mailing and
packaging;
(2) seed and feed grain development and processing;
(3) fruit and vegetable processing, including
preparation, canning and packaging;
(4) processing of livestock and livestock products,
dairy products, poultry and poultry products, fish or
apiarian products, including slaughter, shearing,
collecting, preparation, canning and packaging;
(5) fertilizer and agricultural chemical
manufacturing, processing, application and supplying;
(6) farm machinery, equipment and implement
manufacturing and supplying;
(7) manufacturing and supplying of agricultural
commodity processing machinery and equipment, including
machinery and equipment used in slaughter, treatment,
handling, collecting, preparation, canning or packaging of
agricultural commodities;
(8) farm building and farm structure manufacturing,
construction and supplying;
(9) construction, manufacturing, implementation,
supplying or servicing of irrigation, drainage and soil and
water conservation devices or equipment;
(10) fuel processing and development facilities that
produce fuel from agricultural commodities or byproducts;

(11) facilities and equipment for processing and
packaging agricultural commodities specifically for
export;
(12) facilities and equipment for forestry product
processing and supplying, including sawmilling operations,
wood chip operations, timber harvesting operations, and
manufacturing of prefabricated buildings, paper, furniture
or other goods from forestry products;
(13) facilities and equipment for research and
development of products, processes and equipment for the
production, processing, preparation or packaging of
agricultural commodities and byproducts.
(aa) The term "asset" with respect to financing of any
agricultural facility or any agribusiness, means, but is not
limited to the following: cash crops or feed on hand; livestock
held for sale; breeding stock; marketable bonds and securities;
securities not readily marketable; accounts receivable; notes
receivable; cash invested in growing crops; net cash value of
life insurance; machinery and equipment; cars and trucks; farm
and other real estate including life estates and personal
residence; value of beneficial interests in trusts; government
payments or grants; and any other assets.
(bb) The term "liability" with respect to financing of any
agricultural facility or any agribusiness shall include, but
not be limited to the following: accounts payable; notes or
other indebtedness owed to any source; taxes; rent; amounts

owed on real estate contracts or real estate mortgages;
judgments; accrued interest payable; and any other liability.
(cc) The term "Predecessor Authorities" means those
authorities as described in Section 845-75.
(dd) The term "housing project" means a specific work or
improvement located within the State or outside the State and
undertaken to provide residential dwelling accommodations,
including the acquisition, construction or rehabilitation of
lands, buildings and community facilities and in connection
therewith to provide nonhousing facilities which are part of
the housing project, including land, buildings, improvements,
equipment and all ancillary facilities for use for offices,
stores, retirement homes, hotels, financial institutions,
service, health care, education, recreation or research
establishments, or any other commercial purpose which are or
are to be related to a housing development, provided that any
work or improvement located outside the State is owned,
operated, leased or managed by an entity located within the
State, or any entity affiliated with an entity located within
the State.
(ee) The term "conservation project" means any project
including the acquisition, construction, rehabilitation,
maintenance, operation, or upgrade that is intended to create
or expand open space or to reduce energy usage through
efficiency measures. For the purpose of this definition, "open
space" has the definition set forth under Section 10 of the

Illinois Open Land Trust Act.
(ff) The term "significant presence" means the existence
within the State of the national or regional headquarters of an
entity or group or such other facility of an entity or group of
entities where a significant amount of the business functions
are performed for such entity or group of entities.
(gg) The term "municipal bond issuer" means the State or
any other state or commonwealth of the United States, or any
unit of local government, school district, agency or
instrumentality, office, department, division, bureau,
commission, college or university thereof located in the State
or any other state or commonwealth of the United States.
(hh) The term "municipal bond program project" means a
program for the funding of the purchase of bonds, notes or
other obligations issued by or on behalf of a municipal bond
issuer.
(ii) The term "participating lender" means any trust
company, bank, savings bank, credit union, merchant bank,
investment bank, broker, investment trust, pension fund,
building and loan association, savings and loan association,
insurance company, venture capital company, or other
institution approved by the Authority which provides a portion
of the financing for a project.
(jj) The term "loan participation" means any loan in which
the Authority co-operates with a participating lender to
provide all or a portion of the financing for a project.

(kk) The term "PACE Project" means an energy project as
defined in Section 5 of the Property Assessed Clean Energy Act.
(Source: P.A. 98-90, eff. 7-15-13; 98-104, eff. 7-22-13;
98-756, eff. 7-16-14; 99-180, eff. 7-29-15.)
(20 ILCS 3501/801-40)
Sec. 801-40. In addition to the powers otherwise authorized
by law and in addition to the foregoing general corporate
powers, the Authority shall also have the following additional
specific powers to be exercised in furtherance of the purposes
of this Act.
(a) The Authority shall have power (i) to accept grants,
loans or appropriations from the federal government or the
State, or any agency or instrumentality thereof, to be used for
the operating expenses of the Authority, or for any purposes of
the Authority, including the making of direct loans of such
funds with respect to projects, and (ii) to enter into any
agreement with the federal government or the State, or any
agency or instrumentality thereof, in relationship to such
grants, loans or appropriations.
(b) The Authority shall have power to procure and enter
into contracts for any type of insurance and indemnity
agreements covering loss or damage to property from any cause,
including loss of use and occupancy, or covering any other
insurable risk.
(c) The Authority shall have the continuing power to issue

bonds for its corporate purposes. Bonds may be issued by the
Authority in one or more series and may provide for the payment
of any interest deemed necessary on such bonds, of the costs of
issuance of such bonds, of any premium on any insurance, or of
the cost of any guarantees, letters of credit or other similar
documents, may provide for the funding of the reserves deemed
necessary in connection with such bonds, and may provide for
the refunding or advance refunding of any bonds or for accounts
deemed necessary in connection with any purpose of the
Authority. The bonds may bear interest payable at any time or
times and at any rate or rates, notwithstanding any other
provision of law to the contrary, and such rate or rates may be
established by an index or formula which may be implemented or
established by persons appointed or retained therefor by the
Authority, or may bear no interest or may bear interest payable
at maturity or upon redemption prior to maturity, may bear such
date or dates, may be payable at such time or times and at such
place or places, may mature at any time or times not later than
40 years from the date of issuance, may be sold at public or
private sale at such time or times and at such price or prices,
may be secured by such pledges, reserves, guarantees, letters
of credit, insurance contracts or other similar credit support
or liquidity instruments, may be executed in such manner, may
be subject to redemption prior to maturity, may provide for the
registration of the bonds, and may be subject to such other
terms and conditions all as may be provided by the resolution

or indenture authorizing the issuance of such bonds. The holder
or holders of any bonds issued by the Authority may bring suits
at law or proceedings in equity to compel the performance and
observance by any person or by the Authority or any of its
agents or employees of any contract or covenant made with the
holders of such bonds and to compel such person or 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 by the provision of the resolution
authorizing their issuance, and to enjoin such person or the
Authority and any of its agents or employees from taking any
action in conflict with any such contract or covenant.
Notwithstanding the form and tenor of any such bonds and in the
absence of any express recital on the face thereof that it is
non-negotiable, all such bonds shall be negotiable
instruments. Pending the preparation and execution of any such
bonds, temporary bonds may be issued as provided by the
resolution. The bonds shall be sold by the Authority in such
manner as it shall determine. The bonds may be secured as
provided in the authorizing resolution by the receipts,
revenues, income and other available funds of the Authority and
by any amounts derived by the Authority from the loan agreement
or lease agreement with respect to the project or projects; and
bonds may be issued as general obligations of the Authority
payable from such revenues, funds and obligations of the
Authority as the bond resolution shall provide, or may be

issued as limited obligations with a claim for payment solely
from such revenues, funds and obligations as the bond
resolution shall provide. The Authority may grant a specific
pledge or assignment of and lien on or security interest in
such rights, revenues, income, or amounts and may grant a
specific pledge or assignment of and lien on or security
interest in any reserves, funds or accounts established in the
resolution authorizing the issuance of bonds. Any such pledge,
assignment, lien or security interest for the benefit of the
holders of the Authority's bonds shall be valid and binding
from the time the bonds are issued without any physical
delivery or further act, and shall be valid and binding as
against and prior to the claims of all other parties having
claims against the Authority or any other person irrespective
of whether the other parties have notice of the pledge,
assignment, lien or security interest. As evidence of such
pledge, assignment, lien and security interest, the Authority
may execute and deliver a mortgage, trust agreement, indenture
or security agreement or an assignment thereof. A remedy for
any breach or default of the terms of any such agreement by the
Authority may be by mandamus proceedings in any court of
competent jurisdiction to compel the performance and
compliance therewith, but the agreement may prescribe by whom
or on whose behalf such action may be instituted. It is
expressly understood that the Authority may, but need not,
acquire title to any project with respect to which it exercises

its authority.
(d) With respect to the powers granted by this Act, the
Authority may adopt rules and regulations prescribing the
procedures by which persons may apply for assistance under this
Act. Nothing herein shall be deemed to preclude the Authority,
prior to the filing of any formal application, from conducting
preliminary discussions and investigations with respect to the
subject matter of any prospective application.
(e) The Authority shall have power to acquire by purchase,
lease, gift or otherwise any property or rights therein from
any person useful for its purposes, whether improved for the
purposes of any prospective project, or unimproved. The
Authority may also accept any donation of funds for its
purposes from any such source. The Authority shall have no
independent power of condemnation but may acquire any property
or rights therein obtained upon condemnation by any other
authority, governmental entity or unit of local government with
such power.
(f) The Authority shall have power to develop, construct
and improve either under its own direction, or through
collaboration with any approved applicant, or to acquire
through purchase or otherwise, any project, using for such
purpose the proceeds derived from the sale of its bonds or from
governmental loans or grants, and to hold title in the name of
the Authority to such projects.
(g) The Authority shall have power to lease pursuant to a

lease agreement any project so developed and constructed or
acquired to the approved tenant on such terms and conditions as
may be appropriate to further the purposes of this Act and to
maintain the credit of the Authority. Any such lease may
provide for either the Authority or the approved tenant to
assume initially, in whole or in part, the costs of
maintenance, repair and improvements during the leasehold
period. In no case, however, shall the total rentals from any
project during any initial leasehold period or the total loan
repayments to be made pursuant to any loan agreement, be less
than an amount necessary to return over such lease or loan
period (1) all costs incurred in connection with the
development, construction, acquisition or improvement of the
project and for repair, maintenance and improvements thereto
during the period of the lease or loan; provided, however, that
the rentals or loan repayments need not include costs met
through the use of funds other than those obtained by the
Authority through the issuance of its bonds or governmental
loans; (2) a reasonable percentage additive to be agreed upon
by the Authority and the borrower or tenant to cover a properly
allocable portion of the Authority's general expenses,
including, but not limited to, administrative expenses,
salaries and general insurance, and (3) an amount sufficient to
pay when due all principal of, interest and premium, if any on,
any bonds issued by the Authority with respect to the project.
The portion of total rentals payable under clause (3) of this

subsection (g) shall be deposited in such special accounts,
including all sinking funds, acquisition or construction
funds, debt service and other funds as provided by any
resolution, mortgage or trust agreement of the Authority
pursuant to which any bond is issued.
(h) The Authority has the power, upon the termination of
any leasehold period of any project, to sell or lease for a
further term or terms such project on such terms and conditions
as the Authority shall deem reasonable and consistent with the
purposes of the Act. The net proceeds from all such sales and
the revenues or income from such leases shall be used to
satisfy any indebtedness of the Authority with respect to such
project and any balance may be used to pay any expenses of the
Authority or be used for the further development, construction,
acquisition or improvement of projects. In the event any
project is vacated by a tenant prior to the termination of the
initial leasehold period, the Authority shall sell or lease the
facilities of the project on the most advantageous terms
available. The net proceeds of any such disposition shall be
treated in the same manner as the proceeds from sales or the
revenues or income from leases subsequent to the termination of
any initial leasehold period.
(i) The Authority shall have the power to make loans, or to
purchase loan participations in loans made, to persons to
finance a project, to enter into loan agreements or agreements
with participating lenders with respect thereto, and to accept

guarantees from persons of its loans or the resultant evidences
of obligations of the Authority.
(j) The Authority may fix, determine, charge and collect
any premiums, fees, charges, costs and expenses, including,
without limitation, any application fees, commitment fees,
program fees, financing charges or publication fees from any
person in connection with its activities under this Act.
(k) In addition to the funds established as provided
herein, the Authority shall have the power to create and
establish such reserve funds and accounts as may be necessary
or desirable to accomplish its purposes under this Act and to
deposit its available monies into the funds and accounts.
(l) At the request of the governing body of any unit of
local government, the Authority is authorized to market such
local government's revenue bond offerings by preparing bond
issues for sale, advertising for sealed bids, receiving bids at
its offices, making the award to the bidder that offers the
most favorable terms or arranging for negotiated placements or
underwritings of such securities. The Authority may, at its
discretion, offer for concurrent sale the revenue bonds of
several local governments. Sales by the Authority of revenue
bonds under this Section shall in no way imply State guarantee
of such debt issue. The Authority may require such financial
information from participating local governments as it deems
necessary in order to carry out the purposes of this subsection
(1).

(m) The Authority may make grants to any county to which
Division 5-37 of the Counties Code is applicable to assist in
the financing of capital development, construction and
renovation of new or existing facilities for hospitals and
health care facilities under that Act. Such grants may only be
made from funds appropriated for such purposes from the Build
Illinois Bond Fund.
(n) The Authority may establish an urban development action
grant program for the purpose of assisting municipalities in
Illinois which are experiencing severe economic distress to
help stimulate economic development activities needed to aid in
economic recovery. The Authority shall determine the types of
activities and projects for which the urban development action
grants may be used, provided that such projects and activities
are broadly defined to include all reasonable projects and
activities the primary objectives of which are the development
of viable urban communities, including decent housing and a
suitable living environment, and expansion of economic
opportunity, principally for persons of low and moderate
incomes. The Authority shall enter into grant agreements from
monies appropriated for such purposes from the Build Illinois
Bond Fund. The Authority shall monitor the use of the grants,
and shall provide for audits of the funds as well as recovery
by the Authority of any funds determined to have been spent in
violation of this subsection (n) or any rule or regulation
promulgated hereunder. The Authority shall provide technical

assistance with regard to the effective use of the urban
development action grants. The Authority shall file an annual
report to the General Assembly concerning the progress of the
grant program.
(o) The Authority may establish a Housing Partnership
Program whereby the Authority provides zero-interest loans to
municipalities for the purpose of assisting in the financing of
projects for the rehabilitation of affordable multi-family
housing for low and moderate income residents. The Authority
may provide such loans only upon a municipality's providing
evidence that it has obtained private funding for the
rehabilitation project. The Authority shall provide 3 State
dollars for every 7 dollars obtained by the municipality from
sources other than the State of Illinois. The loans shall be
made from monies appropriated for such purpose from the Build
Illinois Bond Fund. The total amount of loans available under
the Housing Partnership Program shall not exceed $30,000,000.
State loan monies under this subsection shall be used only for
the acquisition and rehabilitation of existing buildings
containing 4 or more dwelling units. The terms of any loan made
by the municipality under this subsection shall require
repayment of the loan to the municipality upon any sale or
other transfer of the project.
(p) The Authority may award grants to universities and
research institutions, research consortiums and other
not-for-profit entities for the purposes of: remodeling or

otherwise physically altering existing laboratory or research
facilities, expansion or physical additions to existing
laboratory or research facilities, construction of new
laboratory or research facilities or acquisition of modern
equipment to support laboratory or research operations
provided that such grants (i) be used solely in support of
project and equipment acquisitions which enhance technology
transfer, and (ii) not constitute more than 60 percent of the
total project or acquisition cost.
(q) Grants may be awarded by the Authority to units of
local government for the purpose of developing the appropriate
infrastructure or defraying other costs to the local government
in support of laboratory or research facilities provided that
such grants may not exceed 40% of the cost to the unit of local
government.
(r) In addition to the powers granted to the Authority
under subsection (i), and in all cases supplemental to it, the
The Authority may establish a direct loan program Direct Loan
Program to make loans to, or may purchase participations in
loans made by participating lenders to, individuals,
partnerships, or corporations, or other business entities for
the purpose of financing an industrial project, as defined in
Section 801-10 of this Act. For the purposes of such program
and not by way of limitation on any other program of the
Authority, including, without limitation, programs established
under subsection (i), the Authority shall have the power to

issue bonds, notes, or other evidences of indebtedness
including commercial paper for purposes of providing a fund of
capital from which it may make such loans. The Authority shall
have the power to use any appropriations from the State made
especially for the Authority's direct loan program, or moneys
at any time held by the Authority under this Act outside the
State treasury in the custody of either the Treasurer of the
Authority or a trustee or depository appointed by the
Authority, Direct Loan Program for additional capital to make
such loans or purchase such loan participations, or for the
purposes of reserve funds or pledged funds which secure the
Authority's obligations of repayment of any bond, note or other
form of indebtedness established for the purpose of providing
capital for which it intends to make such loans or purchase
such loan participations under the Direct Loan Program. For the
purpose of obtaining such capital, the Authority may also enter
into agreements with financial institutions, participating
lenders, and other persons for the purpose of administering a
loan participation program, selling loans or and developing a
secondary market for such loans or loan participations. Loans
made under the direct loan program specifically established
under this subsection (r), including loans under such program
made by participating lenders in which the Authority purchases
a participation, Direct Loan Program may be in an amount not to
exceed $600,000 $300,000 and shall be made for a portion of an
industrial project which does not exceed 50% of the total

project. No loan may be made by the Authority unless approved
by the affirmative vote of at least 8 members of the board. The
Authority shall establish procedures and publish rules which
shall provide for the submission, review, and analysis of each
direct loan and loan participation application and which shall
preserve the ability of each board member and the Executive
Director, as applicable, to reach an individual business
judgment regarding the propriety of making each direct loan or
loan participation. The collective discretion of the board to
approve or disapprove each loan shall be unencumbered. The
Authority may establish and collect such fees and charges,
determine and enforce such terms and conditions, and charge
such interest rates as it determines to be necessary and
appropriate to the successful administration of the direct loan
program, including purchasing loan participations Direct Loan
Program. The Authority may require such interests in collateral
and such guarantees as it determines are necessary to protect
project the Authority's interest in the repayment of the
principal and interest of each loan and loan participation made
under the direct loan program Direct Loan Program. The
restrictions established under this subsection (r) shall not be
applicable to any loan or loan participation made under
subsection (i) or to any loan or loan participation made under
any other Section of this Act.
(s) The Authority may guarantee private loans to third
parties up to a specified dollar amount in order to promote

economic development in this State.
(t) The Authority may adopt rules and regulations as may be
necessary or advisable to implement the powers conferred by
this Act.
(u) The Authority shall have the power to issue bonds,
notes or other evidences of indebtedness, which may be used to
make loans to units of local government which are authorized to
enter into loan agreements and other documents and to issue
bonds, notes and other evidences of indebtedness for the
purpose of financing the protection of storm sewer outfalls,
the construction of adequate storm sewer outfalls, and the
provision for flood protection of sanitary sewage treatment
plans, in counties that have established a stormwater
management planning committee in accordance with Section
5-1062 of the Counties Code. Any such loan shall be made by the
Authority pursuant to the provisions of Section 820-5 to 820-60
of this Act. The unit of local government shall pay back to the
Authority the principal amount of the loan, plus annual
interest as determined by the Authority. The Authority shall
have the power, subject to appropriations by the General
Assembly, to subsidize or buy down a portion of the interest on
such loans, up to 4% per annum.
(v) The Authority may accept security interests as provided
in Sections 11-3 and 11-3.3 of the Illinois Public Aid Code.
(w) Moral Obligation. 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 Chairperson, 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 apply only 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 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. 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 Chairperson of the Authority, as soon as practicable, shall
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. The Authority shall obtain written approval from
the Governor for any bonds and notes to be issued under this
Section. In addition to any other bonds authorized to be issued
under Sections 825-60, 825-65(e), 830-25 and 845-5, the

principal amount of Authority bonds outstanding issued under
this Section 801-40(w) or under 20 ILCS 3850/1-80 or 30 ILCS
360/2-6(c), which have been assumed by the Authority, shall not
exceed $150,000,000. This subsection (w) shall in no way be
applied to any bonds issued by the Authority on behalf of the
Illinois Power Agency under Section 825-90 of this Act.
(x) The Authority may enter into agreements or contracts
with any person necessary or appropriate to place the payment
obligations of the Authority under any of its bonds in whole or
in part on any interest rate basis, cash flow basis, or other
basis desired by the Authority, including without limitation
agreements or contracts commonly known as "interest rate swap
agreements", "forward payment conversion agreements", and
"futures", or agreements or contracts to exchange cash flows or
a series of payments, or agreements or contracts, including
without limitation agreements or contracts commonly known as
"options", "puts", or "calls", to hedge payment, rate spread,
or similar exposure; provided that any such agreement or
contract shall not constitute an obligation for borrowed money
and shall not be taken into account under Section 845-5 of this
Act or any other debt limit of the Authority or the State of
Illinois.
(y) The Authority shall publish summaries of projects and
actions approved by the members of the Authority on its
website. These summaries shall include, but not be limited to,
information regarding the:

(1) project;
(2) Board's action or actions;
(3) purpose of the project;
(4) Authority's program and contribution;
(5) volume cap;
(6) jobs retained;
(7) projected new jobs;
(8) construction jobs created;
(9) estimated sources and uses of funds;
(10) financing summary;
(11) project summary;
(12) business summary;
(13) ownership or economic disclosure statement;
(14) professional and financial information;
(15) service area; and
(16) legislative district.
The disclosure of information pursuant to this subsection
shall comply with the Freedom of Information Act.
(Source: P.A. 95-470, eff. 8-27-07; 95-481, eff. 8-28-07;
95-876, eff. 8-21-08; 96-795, eff. 7-1-10 (see Section 5 of
P.A. 96-793 for the effective date of changes made by P.A.
96-795).)
(20 ILCS 3501/805-5)
Sec. 805-5. Findings and Declaration of Policy. It is
hereby found and declared that a continuing need exists to

maintain and develop the State's economy; that there are
significant barriers in the capital markets inhibiting the
issuance by the Authority of industrial revenue bonds, loans,
and State Guarantees to assist in financing industrial
projects, PACE Projects, farmers, and agribusiness in the
State, particularly for smaller firms; and that the
establishment of the Industrial Revenue Bond Insurance Fund and
the exercise by the Authority of the powers granted in this
Article will promote economic development by widening the
market for the Authority's revenue bonds, loans, PACE Projects,
and State Guarantees.
(Source: P.A. 96-897, eff. 5-24-10.)
(20 ILCS 3501/805-15)
Sec. 805-15. Industrial Project Insurance Fund. There is
created the Industrial Project Insurance Fund, hereafter
referred to in Sections 805-15 through 805-50 of this Act as
the "Fund". The Treasurer shall have custody of the Fund, which
shall be held outside of the State treasury, except that
custody may be transferred to and held by any bank, trust
company or other fiduciary with whom the Authority executes a
trust agreement as authorized by paragraph (h) of Section
805-20 of this Act. Any portion of the Fund against which a
charge has been made, shall be held for the benefit of the
holders of the loans or bonds insured under Section 805-20 of
this Act or the holders of State Guarantees under Article 830

of this Act. There shall be deposited in the Fund such amounts,
including but not limited to:
(a) All receipts of bond and loan insurance premiums;
(b) All proceeds of assets of whatever nature received by
the Authority as a result of default or delinquency with
respect to insured loans or bonds or State Guarantees with
respect to which payments from the Fund have been made,
including proceeds from the sale, disposal, lease or rental of
real or personal property which the Authority may receive under
the provisions of this Article but excluding the proceeds of
insurance hereunder;
(c) All receipts from any applicable contract or agreement
entered into by the Authority under paragraph (b) of Section
805-20 of this Act;
(d) Any State appropriations, transfers of appropriations,
or transfers of general obligation bond proceeds or other
monies made available to the Fund. Amounts in the Fund shall be
used in accordance with the provisions of this Article to
satisfy any valid insurance claim payable therefrom and may be
used for any other purpose determined by the Authority in
accordance with insurance contract or contracts with financial
institutions entered into pursuant to this Act, including
without limitation protecting the interest of the Authority in
industrial projects during periods of loan delinquency or upon
loan default through the purchase of industrial projects in
foreclosure proceedings or in lieu of foreclosure or through

any other means. Such amounts may also be used to pay
administrative costs and expenses reasonably allocable to the
activities in connection with the Fund and to pay taxes,
maintenance, insurance, security and any other costs and
expenses of bidding for, acquiring, owning, carrying and
disposing of industrial projects or PACE Projects, which were
financed with the proceeds of loans or insured bonds or loans ,
including loans or loan participations made under subsections
(i) or (r) of Section 801-40. In the case of a default in
payment with respect to any loan, mortgage or other agreement
so insured or otherwise representing possible loss to the
Authority, the amount of the default shall immediately, and at
all times during the continuance of such default, and to the
extent provided in any applicable agreement, constitute a
charge on the Fund. Any amounts in the Fund not currently
needed to meet the obligations of the Fund may be invested as
provided by law in obligations designated by the Authority, or
used to make direct loans or purchase loan participations under
subsections (i) or (r) of Section 801-40. All and all income
from such investments shall become part of the Fund. All income
from direct loans or loan participations made under subsections
(i) or (r) of Section 801-40 shall become funds of the
Authority. In making such investments, the Authority shall act
with the care, skill, diligence and prudence under the
circumstances of a prudent person acting in a like capacity in
the conduct of an enterprise of like character and with like

aims. It shall diversify such investments of the Authority so
as to minimize the risk of large losses, unless under the
circumstances it is clearly not prudent to do so. Amounts in
the Fund may also be used to satisfy State Guarantees under
Article 830 of this Act.
(Source: P.A. 96-897, eff. 5-24-10.)
(20 ILCS 3501/825-65)
Sec. 825-65. Clean Coal, Coal, Energy Efficiency, PACE, and
Renewable Energy Project Financing.
(a) Findings and declaration of policy.
(i) It is hereby found and declared that Illinois has
abundant coal resources and, in some areas of Illinois, the
demand for power exceeds the generating capacity.
Incentives to encourage the construction of coal-fueled
electric generating plants in Illinois to ensure power
generating capacity into the future and to advance clean
coal technology and the use of Illinois coal are in the
best interests of all of the citizens of Illinois.
(ii) It is further found and declared that Illinois has
abundant potential and resources to develop renewable
energy resource projects and that there are many
opportunities to invest in cost-effective energy
efficiency projects throughout the State. The development
of those projects will create jobs and investment as well
as decrease environmental impacts and promote energy

independence in Illinois. Accordingly, the development of
those projects is in the best interests of all of the
citizens of Illinois.
(iii) The Authority is authorized to issue bonds to
help finance Clean Coal, Coal, Energy Efficiency, PACE, and
Renewable Energy projects pursuant to this Section.
(b) Definitions.
(i) "Clean Coal Project" means (A) "clean coal
facility", as defined in Section 1-10 of the Illinois Power
Agency Act; (B) "clean coal SNG facility", as defined in
Section 1-10 of the Illinois Power Agency Act; (C)
transmission lines and associated equipment that transfer
electricity from points of supply to points of delivery for
projects described in this subsection (b); (D) pipelines or
other methods to transfer carbon dioxide from the point of
production to the point of storage or sequestration for
projects described in this subsection (b); or (E) projects
to provide carbon abatement technology for existing
generating facilities.
(ii) "Coal Project" means new electric generating
facilities or new gasification facilities, as defined in
Section 605-332 of the Department of Commerce and Economic
Opportunity Law of the Civil Administrative Code of
Illinois, which may include mine-mouth power plants,
projects that employ the use of clean coal technology,
projects to provide scrubber technology for existing

energy generating plants, or projects to provide electric
transmission facilities or new gasification facilities.
(iii) "Energy Efficiency Project" means measures that
reduce the amount of electricity or natural gas required to
achieve a given end use, consistent with Section 1-10 of
the Illinois Power Agency Act. "Energy Efficiency Project"
also includes measures that reduce the total Btus of
electricity and natural gas needed to meet the end use or
uses consistent with Section 1-10 of the Illinois Power
Agency Act.
(iv) "Renewable Energy Project" means (A) a project
that uses renewable energy resources, as defined in Section
1-10 of the Illinois Power Agency Act; (B) a project that
uses environmentally preferable technologies and practices
that result in improvements to the production of renewable
fuels, including but not limited to, cellulosic
conversion, water and energy conservation, fractionation,
alternative feedstocks, or reduced greenhouse gas
emissions; (C) transmission lines and associated equipment
that transfer electricity from points of supply to points
of delivery for projects described in this subsection (b);
or (D) projects that use technology for the storage of
renewable energy, including, without limitation, the use
of battery or electrochemical storage technology for
mobile or stationary applications.
(c) Creation of reserve funds. The Authority may establish

and maintain one or more reserve funds to enhance bonds issued
by the Authority for a Clean Coal Project, a Coal Project, an
Energy Efficiency Project, a PACE Project, or a Renewable
Energy Project. There may be one or more accounts in these
reserve funds in which there may be deposited:
(1) any proceeds of the bonds issued by the Authority
required to be deposited therein by the terms of any
contract between the Authority and its bondholders or any
resolution of the Authority;
(2) any other moneys or funds of the Authority that it
may determine to deposit therein from any other source; and
(3) any other moneys or funds made available to the
Authority. Subject to the terms of any pledge to the owners
of any bonds, moneys in any reserve fund may be held and
applied to the payment of principal, premium, if any, and
interest of such bonds.
(d) Powers and duties. The Authority has the power:
(1) To issue bonds in one or more series pursuant to
one or more resolutions of the Authority for any Clean Coal
Project, Coal Project, Energy Efficiency Project, PACE
Project, or Renewable Energy Project authorized under this
Section, within the authorization set forth in subsection
(e).
(2) To provide for the funding of any reserves or other
funds or accounts deemed necessary by the Authority in
connection with any bonds issued by the Authority.

(3) To pledge any funds of the Authority or funds made
available to the Authority that may be applied to such
purpose as security for any bonds or any guarantees,
letters of credit, insurance contracts or similar credit
support or liquidity instruments securing the bonds.
(4) To enter into agreements or contracts with third
parties, whether public or private, including, without
limitation, the United States of America, the State or any
department or agency thereof, to obtain any
appropriations, grants, loans or guarantees that are
deemed necessary or desirable by the Authority. Any such
guarantee, agreement or contract may contain terms and
provisions necessary or desirable in connection with the
program, subject to the requirements established by the
Act.
(4.5) To make loans under subsection (i) of Section
801-40 to finance loans for PACE Projects.
(5) To exercise such other powers as are necessary or
incidental to the foregoing.
(e) Clean Coal Project, Coal Project, Energy Efficiency
Project, PACE Project, and Renewable Energy Project bond
authorization and financing limits. In addition to any other
bonds authorized to be issued under Sections 801-40(w), 825-60,
830-25 and 845-5, the Authority may have outstanding, at any
time, bonds for the purpose enumerated in this Section 825-65
in an aggregate principal amount that shall not exceed

$3,000,000,000, subject to the following limitations: (i) up to
$300,000,000 may be issued to finance projects, as described in
clause (C) of subsection (b)(i) and clause (C) of subsection
(b)(iv) of this Section 825-65; (ii) up to $500,000,000 may be
issued to finance projects, as described in clauses (D) and (E)
of subsection (b)(i) of this Section 825-65; (iii) up to
$2,000,000,000 may be issued to finance Clean Coal Projects, as
described in clauses (A) and (B) of subsection (b)(i) of this
Section 825-65 and Coal Projects, as described in subsection
(b)(ii) of this Section 825-65; and (iv) up to $2,000,000,000
may be issued to finance Energy Efficiency Projects, as
described in subsection (b)(iii) of this Section 825-65, and
Renewable Energy Projects, as described in clauses (A), (B),
and (D) of subsection (b)(iv) (iii) of this Section 825-65, and
PACE Projects. An application for a loan financed from bond
proceeds from a borrower or its affiliates for a Clean Coal
Project, a Coal Project, Energy Efficiency Project, PACE
Project, or a Renewable Energy Project may not be approved by
the Authority for an amount in excess of $450,000,000 for any
borrower or its affiliates. A Clean Coal Project, or Coal
Project, or PACE Project must be located within the State. An
Energy Efficiency Project may be located within the State or
outside the State, provided that, if the Energy Efficiency
Project is located outside of the State, it must be owned,
operated, leased, or managed by an entity located within the
State or any entity affiliated with an entity located within

the State. These bonds shall not constitute an indebtedness or
obligation of the State of Illinois and it shall be plainly
stated on the face of each bond that it does not constitute an
indebtedness or obligation of the State of Illinois, but is
payable solely from the revenues, income or other assets of the
Authority pledged therefor.
(f) The bonding authority granted under this Section is in
addition to and not limited by the provisions of Section 845-5.
(Source: P.A. 100-201, eff. 8-18-17.)
(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.
(ii) The application provides collateral acceptable to
the Authority that is at least equal to the State's portion
of the Guarantee to be provided.
(iii) The lender assumes all responsibility and costs
for pursuing legal action on collecting any loan that is
delinquent or in default.
(iv) The lender is responsible for the first 15% of the
outstanding principal of the note for which the State
Guarantee has been applied.
(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 subsections (i) or (r) of Section 801-40.
All , and 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
subsections (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. 99-509, eff. 6-24-16.)
(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.

(ii) The application provides collateral acceptable to
the Authority that is at least equal to the State's portion
of the Guarantee to be provided.
(iii) The lender assumes all responsibility and costs
for pursuing legal action on collecting any loan that is
delinquent or in default.
(iv) The lender is responsible for the first 15% of the
outstanding principal of the note for which the State
Guarantee has been applied.
(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 subsections
(i) or (r) of Section 801-40. All and 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 subsections (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. 99-509, eff. 6-24-16.)
(20 ILCS 3501/830-55)
Sec. 830-55. Working Capital Loan Guarantee Program.
(a) The Authority is authorized to issue State Guarantees
to lenders for loans to finance needed input costs related to
and in connection with planting and raising agricultural crops
and commodities in Illinois. Eligible input costs include, but
are not limited to, fertilizer, chemicals, feed, seed, fuel,
parts, and repairs. At the discretion of the Authority, the
farmer, producer, or agribusiness must be able to provide the
originating lender with a first lien on the proposed crop or

commodity to be raised and an assignment of Federal Crop
Insurance sufficient to secure the Working Capital Loan.
Additional collateral may be required as deemed necessary by
the lender and the Authority.
For the purposes of this Section, an eligible farmer,
producer, or agribusiness is a resident of Illinois who is at
least 18 years of age and who is a principal operator of a farm
or land, who derives at least 50% of annual gross income from
farming, and whose debt to asset ratio is not less than 40%.
For the purposes of this Section, debt to asset ratio means
current outstanding liabilities, including any debt to be
financed or refinanced under this Section 830-55, divided by
current outstanding assets. 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 fee or charge
involved in recording mortgages, releases, financing
statements, insurance for secondary market issues, and any
other similar fee or charge that the Authority may require. The
application shall at a minimum contain the borrower'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 borrower must certify to the Authority that, at
the time the State Guarantee is provided, the borrower will not
be delinquent in the repayment of any debt. The lender must
agree to charge a fixed or adjustable interest rate 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 guaranteed loan
can be converted to a fixed interest rate at any time during
the term of the loan. State Guarantees provided under this
Section (i) shall not exceed $250,000 per borrower, (ii) shall
be repaid annually, and (iii) shall be subject to an annual
review and renewal by the lender and the Authority. The State
Guarantee may be renewed annually, for a period not to exceed 3
total years per State Guarantee, if the borrower meets
financial criteria and other conditions, as established by the
Authority. A farmer or agribusiness may use this program more
than once provided the aggregate principal amount of State
Guarantees under this Section to that farmer or agribusiness
does not exceed $250,000 annually. No State Guarantee shall be
revoked by the Authority without a 90-day notice, in writing,
to all parties.
(b) The Authority shall provide a State Guarantee to a
lender if:
(i) The borrower pays to the Authority a fee equal to

100 basis points on the loan.
(ii) The application provides collateral acceptable to
the Authority that is at least equal to the State
Guarantee.
(iii) The lender assumes all responsibility and costs
for pursuing legal action on collecting any loan that is
delinquent or in default.
(iv) The lender is at risk for the first 15% of the
outstanding principal of the note for which the State
Guarantee is provided.
(c) The Illinois Agricultural Loan Guarantee Fund, the
Illinois Farmer and Agribusiness Loan Guarantee Fund, and the
Industrial Project Insurance Fund may be used to secure State
Guarantees issued under this Section as provided in Section
830-30, Section 830-35, and subsection (j) of Section 805-20,
respectively, or to make direct loans or purchase loan
participations under subsections (i) or (r) of Section 801-40.
If the Authority exercises its discretion under subsection (j)
of Section 805-20 to secure a State Guarantee with the
Industrial Project Insurance Fund and also exercises its
discretion under this subsection to secure the same State
Guarantee with the Illinois Agricultural Loan Guarantee Fund,
the Illinois Farmer and Agribusiness Loan Guarantee Fund, or
both, all payments by the Authority to satisfy claims against
the State Guarantee shall be made from the Industrial Project
Insurance Fund, the Illinois Agricultural Loan Guarantee Fund,

or the Illinois Farmer and Agribusiness Loan Guarantee Fund, as
applicable, in such order and in such amounts as the Authority
shall determine.
(d) Notwithstanding the provisions of this Section 830-55
with respect to the borrowers and lenders who may obtain State
Guarantees, the Authority may promulgate rules establishing
the eligibility of borrowers 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. 99-509, eff. 6-24-16.)
(20 ILCS 3501/845-75)
Sec. 845-75. Transfer of functions from previously
existing authorities to the Illinois Finance Authority.
(a) The Illinois Finance Authority created by the Illinois
Finance Authority Act shall succeed to, assume and exercise all
rights, powers, duties and responsibilities formerly exercised
by the following Authorities and entities (herein called the
"Predecessor Authorities") prior to the abolition of the
Predecessor Authorities by this Act:
The Illinois Development Finance Authority
The Illinois Farm Development Authority
The Illinois Health Facilities Authority

The Illinois Educational Facilities Authority
The Illinois Community Development Finance Corporation
The Illinois Rural Bond Bank
The Illinois Research Park Authority
(b) All books, records, papers, documents and pending
business in any way pertaining to the Predecessor Authorities
are transferred to the Illinois Finance Authority, but any
rights or obligations of any person under any contract made by,
or under any rules, regulations, uniform standards, criteria
and guidelines established or approved by, such Predecessor
Authorities shall be unaffected thereby. All bonds, notes or
other evidences of indebtedness outstanding on the effective
date of this Act shall be unaffected by the transfer of
functions to the Illinois Finance Authority. No rule,
regulation, standard, criteria or guideline promulgated,
established or approved by the Predecessor Authorities
pursuant to an exercise of any right, power, duty or
responsibility assumed by and transferred to the Illinois
Finance Authority shall be affected by this Act, and all such
rules, regulations, standards, criteria and guidelines shall
become those of the Illinois Finance Authority until such time
as they are amended or repealed by the Illinois Finance
Authority.
(c) The Illinois Finance Authority may exercise all of the
rights, powers, duties, and responsibilities that were
provided for the Illinois Research Park Authority under the

provisions of the Illinois Research Park Authority Act, as the
text of that Act existed on December 31, 2003, notwithstanding
the fact that Public Act 88-669, which created the Illinois
Research Park Authority Act, has been held to be
unconstitutional as a violation of the single subject clause of
the Illinois Constitution in People v. Olender, Docket No.
98932, opinion filed December 15, 2005.
(d) The enactment of this amendatory Act of the 100th
General Assembly shall not affect any right accrued or
liability incurred prior to its enactment, including the
validity or enforceability of any prior action taken by the
Illinois Finance Authority with respect to loans made, or loan
participations purchased, by the Authority under subsections
(i) or (r) of Section 801-40.
(Source: P.A. 93-205, eff. 1-1-04; 94-960, eff. 6-27-06.)
Section 99. Effective date. This Act takes effect upon
becoming law.