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.