Bill Text: IL SB0324 | 2015-2016 | 99th General Assembly | Enrolled
NOTE: There are more recent revisions of this legislation. Read Latest Draft
Bill Title: Amends the Military Leave of Absence Act. Makes a technical change in a Section concerning a State employee's leave of absence for active military service.
Spectrum: Strong Partisan Bill (Democrat 15-1)
Status: (Passed) 2016-06-24 - Public Act . . . . . . . . . 99-0509 [SB0324 Detail]
Download: Illinois-2015-SB0324-Enrolled.html
Bill Title: Amends the Military Leave of Absence Act. Makes a technical change in a Section concerning a State employee's leave of absence for active military service.
Spectrum: Strong Partisan Bill (Democrat 15-1)
Status: (Passed) 2016-06-24 - Public Act . . . . . . . . . 99-0509 [SB0324 Detail]
Download: Illinois-2015-SB0324-Enrolled.html
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1 | AN ACT concerning government.
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2 | Be it enacted by the People of the State of Illinois, | ||||||
3 | represented in the General Assembly:
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4 | Section 5. The Illinois Finance Authority Act is amended by | ||||||
5 | changing Sections 805-20, 830-30, 830-35, 830-45, and 830-55 | ||||||
6 | and by adding Article 835 as follows:
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7 | (20 ILCS 3501/805-20)
| ||||||
8 | Sec. 805-20. Powers and Duties; Industrial Project | ||||||
9 | Insurance Program. The
Authority has the power:
| ||||||
10 | (a) to insure and make advance commitments to insure all or | ||||||
11 | any part of the
payments required on the bonds issued or a loan | ||||||
12 | made to finance any
environmental facility under the Illinois | ||||||
13 | Environmental Facilities Financing
Act
or for any industrial | ||||||
14 | project upon such terms and conditions as the Authority
may | ||||||
15 | prescribe in accordance with
this Article. The
insurance | ||||||
16 | provided by the Authority shall be payable solely from the Fund
| ||||||
17 | created by
Section 805-15 and shall not constitute a debt or | ||||||
18 | pledge of the full
faith and credit of the State, the | ||||||
19 | Authority, or any political subdivision
thereof;
| ||||||
20 | (b) to enter into insurance contracts, letters of credit or | ||||||
21 | any other
agreements or contracts with financial institutions | ||||||
22 | with respect to the Fund
and
any bonds or loans insured | ||||||
23 | thereunder. Any such agreement or contract may
contain terms |
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| |||||||
1 | and provisions necessary or desirable in connection with the
| ||||||
2 | program, subject to the requirements established by this Act, | ||||||
3 | including without
limitation terms and provisions relating to | ||||||
4 | loan documentation, review and
approval procedures, | ||||||
5 | origination and servicing rights and responsibilities,
default | ||||||
6 | conditions, procedures and obligations with respect to | ||||||
7 | insurance
contracts made under this Act. The agreements or | ||||||
8 | contracts may be executed on
an individual, group or master | ||||||
9 | contract basis with financial institutions;
| ||||||
10 | (c) to charge reasonable fees to defray the cost of | ||||||
11 | obtaining letters of
credit
or other similar documents, other | ||||||
12 | than insurance contracts under paragraph (b).
Any such fees | ||||||
13 | shall be payable by such person, in such amounts and at such
| ||||||
14 | times
as the Authority shall determine, and the amount of the | ||||||
15 | fees need not be
uniform
among the various bonds or loans | ||||||
16 | insured;
| ||||||
17 | (d) to fix insurance premiums for the insurance of payments | ||||||
18 | under the
provisions of
this Article. Such premiums shall be
| ||||||
19 | computed as determined by the Authority. Any premiums for the | ||||||
20 | insurance of loan
payments under the provisions of this Act | ||||||
21 | shall be payable by such person, in
such amounts and at such | ||||||
22 | times as the Authority shall determine, and the amount
of the | ||||||
23 | premiums need not be uniform among the various bonds or loans | ||||||
24 | insured;
| ||||||
25 | (e) to establish application fees and prescribe | ||||||
26 | application, notification,
contract and insurance forms, rules |
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| |||||||
1 | and regulations it deems necessary or
appropriate;
| ||||||
2 | (f) to make loans and to issue bonds secured by insurance | ||||||
3 | or other
agreements
authorized by paragraphs (a) and (b) of | ||||||
4 | this
Section 805-20 and to issue bonds
secured by loans that | ||||||
5 | are guaranteed by the federal government or agencies
thereof;
| ||||||
6 | (g) to issue a single bond issue, or a series of bond | ||||||
7 | issues, for a group of
industrial projects, a group of | ||||||
8 | corporations, or a group of business entities
or
any | ||||||
9 | combination thereof insured by insurance or backed by any other | ||||||
10 | agreement
authorized by paragraphs (a) and (b) of this
Section | ||||||
11 | or secured by loans that
are guaranteed by the federal | ||||||
12 | government or agencies thereof;
| ||||||
13 | (h) to enter into trust agreements for the management of | ||||||
14 | the Fund created
under Section 805-15 of this Act;
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15 | (i) to exercise such other powers as are necessary or | ||||||
16 | incidental to the powers granted in this Section and to the | ||||||
17 | issuance of State Guarantees under Article 830 of this Act; and
| ||||||
18 | (j) at the discretion of the Authority, to insure and make | ||||||
19 | advance commitments to insure, and issue State Guarantees for, | ||||||
20 | all or any part of the payments required on the bonds issued or | ||||||
21 | loans made to finance any agricultural facility, project, | ||||||
22 | farmer, producer, agribusiness, qualified veteran-owned small | ||||||
23 | business, or program under Article 830 or Article 835 of this | ||||||
24 | Act upon such terms and conditions as the Authority may | ||||||
25 | prescribe in accordance with this Article. The insurance and | ||||||
26 | State Guarantees provided by the Authority may be payable from |
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1 | the Fund created by Section 805-15 and is in addition to and | ||||||
2 | not in replacement of the Illinois Agricultural Loan Guarantee | ||||||
3 | Fund and the Illinois Farmer and Agribusiness Loan Guarantee | ||||||
4 | Fund created under Article 830 of this Act. | ||||||
5 | (Source: P.A. 96-897, eff. 5-24-10; 97-333, eff. 8-12-11.)
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6 | (20 ILCS 3501/830-30)
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7 | Sec. 830-30. State Guarantees for existing debt.
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8 | (a) The Authority is authorized to issue State Guarantees | ||||||
9 | for farmers'
existing
debts held by a lender. For the purposes | ||||||
10 | of this
Section, a farmer shall be a
resident of Illinois, who | ||||||
11 | is a principal operator of a farm or land, at least
50% of | ||||||
12 | whose annual gross income is derived from farming and whose | ||||||
13 | debt to
asset
ratio shall not be less than 40%, except in those | ||||||
14 | cases where the applicant has
previously used the guarantee | ||||||
15 | program there shall be no debt to asset ratio or
income | ||||||
16 | restriction. For the purposes of this
Section, debt to asset | ||||||
17 | ratio shall
mean the current outstanding liabilities of the | ||||||
18 | farmer divided by the current
outstanding assets of the farmer. | ||||||
19 | The Authority shall establish the maximum
permissible debt to | ||||||
20 | asset ratio based on criteria established by the Authority.
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21 | Lenders shall apply for the State Guarantees on forms provided | ||||||
22 | by the Authority
and certify that the application and any other | ||||||
23 | documents submitted are true and
correct. The lender or | ||||||
24 | borrower, or both in combination, shall pay an
administrative | ||||||
25 | fee as determined by the Authority. The applicant shall be
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1 | responsible for paying any fees or charges involved in | ||||||
2 | recording mortgages,
releases, financing statements, insurance | ||||||
3 | for secondary market issues and any
other similar fees or | ||||||
4 | charges as the Authority may require. The application
shall at | ||||||
5 | a minimum contain the farmer's name, address, present credit | ||||||
6 | and
financial information, including cash flow statements, | ||||||
7 | financial statements,
balance sheets, and any other | ||||||
8 | information pertinent to the application, and the
collateral to | ||||||
9 | be used to secure the State Guarantee. In addition, the lender
| ||||||
10 | must agree to bring the farmer's debt to a current status at | ||||||
11 | the time the State
Guarantee is provided and must also agree to | ||||||
12 | charge a fixed or adjustable
interest rate which the Authority | ||||||
13 | determines to be below the market rate of
interest generally | ||||||
14 | available to the borrower. If both the lender and applicant
| ||||||
15 | agree, the interest rate on the State Guarantee Loan can be | ||||||
16 | converted to a fixed
interest rate at any time during the term | ||||||
17 | of the loan.
Any State Guarantees provided under this
Section | ||||||
18 | (i) shall not exceed $500,000
per farmer, (ii) shall be set up | ||||||
19 | on a payment schedule not to exceed 30 years,
and shall be no | ||||||
20 | longer than 30 years in duration, and (iii) shall be subject to
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21 | an annual review and renewal by the lender and the Authority; | ||||||
22 | provided that
only
one such State Guarantee shall be | ||||||
23 | outstanding per farmer at any one time. No
State Guarantee | ||||||
24 | shall be revoked by the Authority without a 90-day notice, in
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25 | writing, to all parties. In those cases where the borrower has | ||||||
26 | not previously
used the guarantee program, the lender shall not |
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1 | call due any loan during the
first 3 years for any reason | ||||||
2 | except for lack of performance or insufficient
collateral. The | ||||||
3 | lender can review and withdraw or continue with the State
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4 | Guarantee on an annual basis after the first 3 years of the | ||||||
5 | loan, provided a
90-day notice, in writing, to all parties has | ||||||
6 | been given.
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7 | (b) The Authority shall provide or renew a State Guarantee | ||||||
8 | to a lender if:
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9 | (i) A fee equal to 25 basis points on the loan is paid | ||||||
10 | to the Authority on
an
annual
basis by the lender.
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11 | (ii) The application provides collateral acceptable to | ||||||
12 | the
Authority that is at least equal to the State's portion | ||||||
13 | of the Guarantee to be
provided.
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14 | (iii) The lender assumes all responsibility and costs | ||||||
15 | for pursuing
legal action on collecting any loan that is | ||||||
16 | delinquent or in default.
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17 | (iv) The
lender is responsible for the first 15% of the | ||||||
18 | outstanding principal of the
note
for which the State | ||||||
19 | Guarantee has been applied.
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20 | (c) There is hereby created outside of the State treasury a | ||||||
21 | special fund to
be
known as the Illinois Agricultural Loan | ||||||
22 | Guarantee Fund. The State Treasurer
shall be custodian of this | ||||||
23 | Fund. Any amounts in the Illinois Agricultural Loan
Guarantee | ||||||
24 | Fund not currently needed to meet the obligations of the Fund | ||||||
25 | shall
be
invested as provided by law, and all interest earned | ||||||
26 | from these investments
shall be deposited into the Fund until |
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1 | the Fund reaches the maximum amount
authorized in this Act; | ||||||
2 | thereafter, interest earned shall be deposited into the
General | ||||||
3 | Revenue Fund. After September 1, 1989, annual investment | ||||||
4 | earnings equal
to 1.5% of the Fund shall remain in the Fund to | ||||||
5 | be used for the purposes
established in
Section 830-40 of this | ||||||
6 | Act. The Authority is authorized to
transfer to the Fund such | ||||||
7 | amounts as are necessary to satisfy claims during the
duration | ||||||
8 | of the State Guarantee program to secure State Guarantees | ||||||
9 | issued under
this
Section , provided that amounts to be paid | ||||||
10 | from the Industrial Project Insurance Fund created under | ||||||
11 | Article 805 of this Act may be paid by the Authority directly | ||||||
12 | to satisfy claims and need not
be deposited first into the | ||||||
13 | Illinois Agricultural Loan Guarantee Fund . If for any reason | ||||||
14 | the General Assembly fails to make an
appropriation sufficient | ||||||
15 | to meet these obligations, this Act shall constitute
an
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16 | irrevocable and continuing appropriation of an amount | ||||||
17 | necessary to secure
guarantees as defaults occur and the | ||||||
18 | irrevocable and continuing authority for,
and direction to, the | ||||||
19 | State Treasurer and the Comptroller to make the necessary
| ||||||
20 | transfers to the Illinois Agricultural Loan Guarantee Fund, as | ||||||
21 | directed by the
Governor, out of the General Revenue Fund. | ||||||
22 | Within 30 days after November 15,
1985, the Authority may | ||||||
23 | transfer up to $7,000,000 from available appropriations
into | ||||||
24 | the Illinois Agricultural Loan Guarantee Fund for the purposes | ||||||
25 | of this
Act.
Thereafter, the Authority may transfer additional | ||||||
26 | amounts into the Illinois
Agricultural Loan Guarantee Fund to |
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1 | secure guarantees for defaults as defaults
occur. In the event | ||||||
2 | of default by the farmer, the lender shall be entitled to,
and | ||||||
3 | the Authority shall direct payment on, the State Guarantee | ||||||
4 | after 90 days of
delinquency. All payments by the Authority | ||||||
5 | shall be made from the Illinois
Agricultural Loan Guarantee | ||||||
6 | Fund to satisfy claims against the State Guarantee shall be | ||||||
7 | made, in whole or in part, from any of the following funds in | ||||||
8 | such order and in such amounts as the Authority shall | ||||||
9 | determine: (1) the Industrial Project Insurance Fund created | ||||||
10 | under Article 805 of this Act (if the Authority exercises its | ||||||
11 | discretion under subsection (j) of Section 805-20); (2) the | ||||||
12 | Illinois Agricultural Loan Guarantee Fund; or (3) the Illinois | ||||||
13 | Farmer and Agribusiness Loan Guarantee Fund .
The Illinois | ||||||
14 | Agricultural Loan Guarantee Fund shall guarantee receipt of | ||||||
15 | payment
of the 85% of the principal and interest owed on the | ||||||
16 | State Guarantee Loan by the
farmer to the guarantee holder , | ||||||
17 | provided that payments by the Authority to satisfy claims | ||||||
18 | against the State Guarantee shall be made in accordance with | ||||||
19 | the preceding sentence . It shall be the responsibility of the | ||||||
20 | lender to
proceed with the collecting and disposing of | ||||||
21 | collateral on the State Guarantee under this Section, Section | ||||||
22 | 830-35, Section 830-45, Section 830-50, Section 830-55, or | ||||||
23 | Article 835
within 14 months of the time the State Guarantee is | ||||||
24 | declared delinquent;
provided, however, that the lender shall | ||||||
25 | not collect or dispose of collateral on
the State Guarantee | ||||||
26 | without the express written prior approval of the Authority.
If |
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1 | the lender does not dispose of the collateral within 14 months, | ||||||
2 | the lender
shall be liable to repay to the State interest on | ||||||
3 | the State Guarantee equal to
the same rate which the lender | ||||||
4 | charges on the State Guarantee; provided,
however, that the | ||||||
5 | Authority may extend the 14-month period for a lender in the
| ||||||
6 | case of bankruptcy or extenuating circumstances. The Fund from | ||||||
7 | which a payment is made shall be reimbursed
for any amounts | ||||||
8 | paid from that Fund under this
Section , Section 830-35, Section | ||||||
9 | 830-45, Section 830-50, Section 830-55, or Article 835 upon | ||||||
10 | liquidation of the collateral. The
Authority, by resolution of | ||||||
11 | the Board, may borrow sums from the Fund and
provide
for | ||||||
12 | repayment as soon as may be practical upon receipt of payments | ||||||
13 | of principal
and interest by a farmer. Money may be borrowed | ||||||
14 | from the Fund by the Authority
for the sole purpose of paying | ||||||
15 | certain interest costs for farmers associated
with selling a | ||||||
16 | loan subject to a State Guarantee in a secondary market as may
| ||||||
17 | be
deemed reasonable and necessary by the Authority.
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18 | (d) Notwithstanding the provisions of this
Section 830-30 | ||||||
19 | with respect to the
farmers and lenders who may obtain State | ||||||
20 | Guarantees, the Authority may
promulgate rules establishing | ||||||
21 | the eligibility of farmers and lenders to
participate in the | ||||||
22 | State guarantee program and the terms, standards, and
| ||||||
23 | procedures that will apply, when the Authority finds that | ||||||
24 | emergency conditions
in Illinois agriculture have created the | ||||||
25 | need for State Guarantees pursuant to
terms, standards, and | ||||||
26 | procedures other than those specified in this
Section.
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1 | (Source: P.A. 93-205, eff. 1-1-04.)
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2 | (20 ILCS 3501/830-35)
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3 | Sec. 830-35. State Guarantees for loans to farmers and | ||||||
4 | agribusiness;
eligibility. | ||||||
5 | (a) The Authority is authorized to issue State Guarantees | ||||||
6 | to lenders for
loans
to eligible farmers and agribusinesses for | ||||||
7 | purposes set forth in this
Section.
For purposes of this
| ||||||
8 | Section, an eligible farmer shall be a resident of Illinois
(i) | ||||||
9 | who is principal operator of a farm or land, at least 50% of | ||||||
10 | whose annual
gross income is derived from farming, (ii) whose | ||||||
11 | annual total sales of
agricultural products, commodities, or | ||||||
12 | livestock exceeds $20,000, and (iii)
whose net worth does not | ||||||
13 | exceed $500,000. An eligible agribusiness shall be
that as | ||||||
14 | defined in
Section 801-10 of this Act.
The Authority may | ||||||
15 | approve applications by farmers and agribusinesses that
| ||||||
16 | promote diversification of the farm economy of this State | ||||||
17 | through the growth
and
development of new crops or livestock | ||||||
18 | not customarily grown or produced in this
State or that | ||||||
19 | emphasize a vertical integration of grain or livestock produced
| ||||||
20 | or
raised in this State into a finished agricultural product | ||||||
21 | for consumption or
use. "New crops or livestock not customarily | ||||||
22 | grown or produced in this State"
shall not include corn, | ||||||
23 | soybeans, wheat, swine, or beef or dairy cattle.
"Vertical | ||||||
24 | integration of grain or livestock produced or raised in this | ||||||
25 | State"
shall include any new or existing grain or livestock |
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1 | grown or produced in this
State.
Lenders shall apply for the | ||||||
2 | State Guarantees on forms provided by the
Authority,
certify | ||||||
3 | that the application and any other documents submitted are true | ||||||
4 | and
correct, and pay an administrative fee as determined by the | ||||||
5 | Authority. The
applicant shall be responsible for paying any | ||||||
6 | fees or charges involved in
recording mortgages, releases, | ||||||
7 | financing statements, insurance for secondary
market issues | ||||||
8 | and any other similar fees or charges as the Authority may
| ||||||
9 | require. The application shall at a minimum contain the | ||||||
10 | farmer's or
agribusiness' name, address, present credit and | ||||||
11 | financial information,
including cash flow statements, | ||||||
12 | financial statements, balance sheets, and any
other
| ||||||
13 | information pertinent to the application, and the collateral to | ||||||
14 | be used to
secure the State Guarantee. In addition, the lender | ||||||
15 | must agree to charge an
interest rate, which may vary, on the | ||||||
16 | loan that the Authority determines to be
below the market rate | ||||||
17 | of interest generally available to the borrower. If both
the | ||||||
18 | lender and applicant agree, the interest rate on the State | ||||||
19 | Guarantee Loan
can be converted to a fixed interest rate at any | ||||||
20 | time during the term of the
loan.
Any State Guarantees provided | ||||||
21 | under this
Section (i) shall not exceed $500,000
per farmer or | ||||||
22 | an amount as determined by the Authority on a case-by-case
| ||||||
23 | basis for an agribusiness, (ii) shall not exceed a term of 15 | ||||||
24 | years, and (iii)
shall be subject to an annual review and | ||||||
25 | renewal by the lender and the
Authority; provided that only one | ||||||
26 | such State Guarantee shall be made per farmer
or agribusiness, |
| |||||||
| |||||||
1 | except that additional State Guarantees may be made for
| ||||||
2 | purposes of expansion of projects financed in part by a | ||||||
3 | previously issued State
Guarantee. No State Guarantee shall be | ||||||
4 | revoked by the Authority without a
90-day notice, in writing, | ||||||
5 | to all parties. The lender shall not call due any
loan
for any | ||||||
6 | reason except for lack of performance, insufficient | ||||||
7 | collateral, or
maturity. A lender may review and withdraw or | ||||||
8 | continue with a State Guarantee
on an annual basis after the | ||||||
9 | first 5 years following closing of the loan
application if the | ||||||
10 | loan contract provides for an interest rate that shall not
| ||||||
11 | vary. A lender shall not withdraw a State Guarantee if the loan | ||||||
12 | contract
provides for an interest rate that may vary, except | ||||||
13 | for reasons set forth
herein.
| ||||||
14 | (b) The Authority shall provide or renew a State Guarantee | ||||||
15 | to a lender if:
| ||||||
16 | (i) A fee equal to 25 basis points on the loan is paid | ||||||
17 | to the Authority on
an annual
basis by the lender.
| ||||||
18 | (ii) The application provides collateral acceptable to | ||||||
19 | the
Authority that is at least equal to the State's portion | ||||||
20 | of the Guarantee to be
provided.
| ||||||
21 | (iii) The lender assumes all responsibility and costs | ||||||
22 | for pursuing
legal action on collecting any loan that is | ||||||
23 | delinquent or in default.
| ||||||
24 | (iv) The
lender is responsible for the first 15% of the | ||||||
25 | outstanding principal of the
note
for which the State | ||||||
26 | Guarantee has been applied.
|
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| |||||||
1 | (c) There is hereby created outside of the State treasury a | ||||||
2 | special fund to
be
known as the Illinois Farmer and | ||||||
3 | Agribusiness Loan Guarantee Fund. The State
Treasurer shall be | ||||||
4 | custodian of this Fund. Any amounts in the Fund not
currently | ||||||
5 | needed to meet the obligations of the Fund shall be invested as
| ||||||
6 | provided by law, and all interest earned from these investments | ||||||
7 | shall be
deposited into the Fund until the Fund reaches the | ||||||
8 | maximum amounts authorized
in
this Act; thereafter, interest | ||||||
9 | earned shall be deposited into the General
Revenue Fund. After | ||||||
10 | September 1, 1989, annual investment earnings equal to 1.5%
of | ||||||
11 | the Fund shall remain in the Fund to be used for the purposes | ||||||
12 | established in
Section 830-40 of this Act. The Authority is | ||||||
13 | authorized to transfer such
amounts
as are necessary to satisfy | ||||||
14 | claims from available appropriations and from fund
balances of | ||||||
15 | the Farm Emergency Assistance Fund as of June 30 of each year | ||||||
16 | to
the
Illinois Farmer and Agribusiness Loan Guarantee Fund to | ||||||
17 | secure State Guarantees
issued under this
Section , and
Sections | ||||||
18 | 830-30, 830-45, 830-50, and 830-55 , and Article 835 of this | ||||||
19 | Act. Amounts to be paid from the Industrial Project Insurance | ||||||
20 | Fund created under Article 805 of this Act may be paid by the | ||||||
21 | Authority directly to satisfy claims and need not be deposited | ||||||
22 | first into the Illinois Farmer and Agribusiness Loan Guarantee | ||||||
23 | Fund . If for any reason the
General Assembly fails to make an | ||||||
24 | appropriation sufficient to meet these
obligations, this Act | ||||||
25 | shall constitute an irrevocable and continuing
appropriation | ||||||
26 | of an amount necessary to secure guarantees as defaults occur |
| |||||||
| |||||||
1 | and
the irrevocable and continuing authority for, and direction | ||||||
2 | to, the State
Treasurer and the Comptroller to make the | ||||||
3 | necessary transfers to the Illinois
Farmer and Agribusiness | ||||||
4 | Loan Guarantee Fund, as directed by the Governor, out
of
the | ||||||
5 | General Revenue Fund. In the event of default by the borrower | ||||||
6 | on State
Guarantee Loans under this
Section,
Section 830-45,
| ||||||
7 | Section 830-50, or Section 830-55, the lender
shall be entitled | ||||||
8 | to, and the Authority shall direct payment on, the State
| ||||||
9 | Guarantee after 90 days of delinquency. All payments by the | ||||||
10 | Authority shall be
made from the Illinois Farmer and | ||||||
11 | Agribusiness Loan Guarantee Fund to satisfy
claims against the | ||||||
12 | State Guarantee shall be made, in whole or in part, from any of | ||||||
13 | the following funds in such order and in such amounts as the | ||||||
14 | Authority shall determine: (1) the Industrial Project | ||||||
15 | Insurance Fund created under Article 805 of this Act (if the | ||||||
16 | Authority exercises its discretion under subsection (j) of | ||||||
17 | Section 805-20); (2) the Illinois Farmer and Agribusiness Loan | ||||||
18 | Guarantee Fund; or (3) the Illinois Farmer and Agribusiness | ||||||
19 | Loan Guarantee Fund . It shall be the responsibility of the
| ||||||
20 | lender to proceed with the collecting and disposing of | ||||||
21 | collateral on the State
Guarantee under this
Section,
Section | ||||||
22 | 830-45,
Section 830-50, or Section 830-55 within 14 months of
| ||||||
23 | the time the State Guarantee is declared delinquent. If the | ||||||
24 | lender does not
dispose of the collateral within 14 months, the | ||||||
25 | lender shall be liable to repay
to the State interest on the | ||||||
26 | State Guarantee equal to the same rate that the
lender charges |
| |||||||
| |||||||
1 | on the State Guarantee, provided that the Authority shall have
| ||||||
2 | the authority to extend the 14-month period for a lender in the | ||||||
3 | case of
bankruptcy or extenuating circumstances. The Fund shall | ||||||
4 | be reimbursed for any
amounts paid under this
Section, Section | ||||||
5 | 830-30,
Section 830-45,
Section 830-50, or Section 830-55 , or | ||||||
6 | Article 835 upon liquidation
of the collateral.
The Authority, | ||||||
7 | by resolution of the Board, may borrow sums from the Fund and
| ||||||
8 | provide for repayment as soon as may be practical upon receipt | ||||||
9 | of payments of
principal and interest by a borrower on State | ||||||
10 | Guarantee Loans under this
Section, Section 830-30,
Section | ||||||
11 | 830-45,
Section 830-50, or Section 830-55 , or Article 835 . | ||||||
12 | Money may be borrowed from the Fund by
the Authority for the | ||||||
13 | sole purpose of paying certain interest costs for
borrowers | ||||||
14 | associated with selling a loan subject to a State Guarantee | ||||||
15 | under
this
Section, Section 830-30,
Section 830-45,
Section | ||||||
16 | 830-50, or Section 830-55 , or Article 835 in a secondary market | ||||||
17 | as may be deemed
reasonable and necessary by the Authority.
| ||||||
18 | (d) Notwithstanding the provisions of this
Section 830-35 | ||||||
19 | with respect to the
farmers, agribusinesses, and lenders who | ||||||
20 | may obtain State Guarantees, the
Authority may promulgate rules | ||||||
21 | establishing the eligibility of farmers,
agribusinesses, and | ||||||
22 | lenders to participate in the State Guarantee program and
the | ||||||
23 | terms, standards, and procedures that will apply, when the | ||||||
24 | Authority finds
that emergency conditions in Illinois | ||||||
25 | agriculture have created the need for
State Guarantees pursuant | ||||||
26 | to terms, standards, and procedures other than those
specified |
| |||||||
| |||||||
1 | in this
Section.
| ||||||
2 | (Source: P.A. 96-897, eff. 5-24-10.)
| ||||||
3 | (20 ILCS 3501/830-45)
| ||||||
4 | Sec. 830-45. Young Farmer Loan Guarantee Program.
| ||||||
5 | (a) The Authority is authorized to issue State Guarantees | ||||||
6 | to lenders for
loans
to finance or refinance debts of young | ||||||
7 | farmers. For the purposes of this
Section, a young farmer is a | ||||||
8 | resident of Illinois who is at least 18 years of
age and who is | ||||||
9 | a principal operator of a farm or land, who derives at least | ||||||
10 | 50%
of annual gross income from farming, whose net worth is not | ||||||
11 | less than $10,000
and whose debt to asset ratio is not less | ||||||
12 | than 40%. For the purposes of this
Section, debt to asset ratio | ||||||
13 | means current outstanding liabilities, including
any debt to be | ||||||
14 | financed or refinanced under this
Section 830-45, divided by
| ||||||
15 | current outstanding assets. The Authority shall establish the | ||||||
16 | maximum
permissible debt to asset ratio based on criteria | ||||||
17 | established by the Authority.
Lenders shall apply for the State | ||||||
18 | Guarantees on forms provided by the Authority
and certify that | ||||||
19 | the application and any other documents submitted are true and
| ||||||
20 | correct. The lender or borrower, or both in combination, shall | ||||||
21 | pay an
administrative fee as determined by the Authority. The | ||||||
22 | applicant shall be
responsible for paying any fee or charge | ||||||
23 | involved in recording mortgages,
releases, financing | ||||||
24 | statements, insurance for secondary market issues, and any
| ||||||
25 | other similar fee or charge that the Authority may require. The |
| |||||||
| |||||||
1 | application
shall at a minimum contain the young farmer's name, | ||||||
2 | address, present credit and
financial information, including | ||||||
3 | cash flow statements, financial statements,
balance sheets, | ||||||
4 | and any other information pertinent to the application, and the
| ||||||
5 | collateral to be used to secure the State Guarantee. In | ||||||
6 | addition, the borrower
must certify to the Authority that, at | ||||||
7 | the time the State Guarantee is
provided,
the borrower will not | ||||||
8 | be delinquent in the repayment of any debt. The lender
must | ||||||
9 | agree to charge a fixed or adjustable interest rate that the | ||||||
10 | Authority
determines to be below the market rate of interest | ||||||
11 | generally available to the
borrower. If both the lender and | ||||||
12 | applicant agree, the interest rate on the
State guaranteed loan | ||||||
13 | can be converted to a fixed interest rate at any time
during | ||||||
14 | the term of the loan.
State Guarantees provided under this
| ||||||
15 | Section (i) shall not exceed $500,000 per
young farmer, (ii) | ||||||
16 | shall be set up on a payment schedule not to exceed 30
years,
| ||||||
17 | but shall be no longer than 15 years in duration, and (iii) | ||||||
18 | shall be subject to
an annual review and renewal by the lender | ||||||
19 | and the Authority. A young farmer
may
use this program more | ||||||
20 | than once provided the aggregate principal amount of
State
| ||||||
21 | Guarantees under this
Section to that young farmer does not | ||||||
22 | exceed $500,000. No
State Guarantee shall be revoked by the | ||||||
23 | Authority without a 90-day notice, in
writing, to all parties.
| ||||||
24 | (b) The Authority shall provide or renew a State Guarantee | ||||||
25 | to a lender if:
| ||||||
26 | (i) The lender pays a fee equal to 25 basis points on |
| |||||||
| |||||||
1 | the loan to the
Authority on
an annual basis.
| ||||||
2 | (ii) The application provides collateral acceptable to | ||||||
3 | the
Authority that is at least equal to the State | ||||||
4 | Guarantee.
| ||||||
5 | (iii) The lender
assumes all responsibility and costs | ||||||
6 | for pursuing legal action on collecting
any
loan that is | ||||||
7 | delinquent or in default.
| ||||||
8 | (iv) The lender is at risk for the
first 15% of the | ||||||
9 | outstanding principal of the note for which the State
| ||||||
10 | Guarantee
is provided.
| ||||||
11 | (c) The Illinois Agricultural Loan Guarantee Fund , and the | ||||||
12 | Illinois Farmer and Agribusiness Loan Guarantee Fund , and the | ||||||
13 | Industrial Project Insurance Fund may be used to
secure State | ||||||
14 | Guarantees issued under this
Section as provided in
Section | ||||||
15 | 830-30 , and Section 830-35 , and subsection (j) of Section | ||||||
16 | 805-20 , respectively. All payments by the Authority to satisfy | ||||||
17 | claims against the State Guarantee shall be made, in whole or | ||||||
18 | in part, from any of the following funds in such order and in | ||||||
19 | such amounts as the Authority shall determine: (1) the | ||||||
20 | Industrial Project Insurance Fund (if the Authority exercises | ||||||
21 | its discretion under subsection (j) of Section 805-20); (2) the | ||||||
22 | Illinois Agricultural Loan Guarantee Fund; or (3) the Illinois | ||||||
23 | Farmer and Agribusiness Loan Guarantee Fund.
| ||||||
24 | (d) Notwithstanding the provisions of this
Section 830-45 | ||||||
25 | with respect to the
young farmers and lenders who may obtain | ||||||
26 | State Guarantees, the Authority may
promulgate rules |
| |||||||
| |||||||
1 | establishing the eligibility of young farmers and lenders to
| ||||||
2 | participate in the State Guarantee program and the terms, | ||||||
3 | standards, and
procedures that will apply, when the Authority | ||||||
4 | finds that emergency conditions
in Illinois agriculture have | ||||||
5 | created the need for State Guarantees pursuant to
terms, | ||||||
6 | standards, and procedures other than those specified in this
| ||||||
7 | Section.
| ||||||
8 | (Source: P.A. 96-897, eff. 5-24-10.)
| ||||||
9 | (20 ILCS 3501/830-55) | ||||||
10 | Sec. 830-55. Working Capital Loan Guarantee Program. | ||||||
11 | (a) The Authority is authorized to issue State Guarantees | ||||||
12 | to lenders for loans to finance needed input costs related to | ||||||
13 | and in connection with planting and raising agricultural crops | ||||||
14 | and commodities in Illinois. Eligible input costs include, but | ||||||
15 | are not limited to, fertilizer, chemicals, feed, seed, fuel, | ||||||
16 | parts, and repairs. At the discretion of the Authority, the | ||||||
17 | farmer, producer, or agribusiness must be able to provide the | ||||||
18 | originating lender with a first lien on the proposed crop or | ||||||
19 | commodity to be raised and an assignment of Federal Crop | ||||||
20 | Insurance sufficient to secure the Working Capital Loan. | ||||||
21 | Additional collateral may be required as deemed necessary by | ||||||
22 | the lender and the Authority. | ||||||
23 | For the purposes of this Section, an eligible farmer, | ||||||
24 | producer, or agribusiness is a resident of Illinois who is at | ||||||
25 | least 18 years of age and who is a principal operator of a farm |
| |||||||
| |||||||
1 | or land, who derives at least 50% of annual gross income from | ||||||
2 | farming, and whose debt to asset ratio is not less than 40%. | ||||||
3 | For the purposes of this Section, debt to asset ratio means | ||||||
4 | current outstanding liabilities, including any debt to be | ||||||
5 | financed or refinanced under this Section 830-55, divided by | ||||||
6 | current outstanding assets. The Authority shall establish the | ||||||
7 | maximum permissible debt to asset ratio based on criteria | ||||||
8 | established by the Authority. Lenders shall apply for the State | ||||||
9 | Guarantees on forms provided by the Authority and certify that | ||||||
10 | the application and any other documents submitted are true and | ||||||
11 | correct. The lender or borrower, or both in combination, shall | ||||||
12 | pay an administrative fee as determined by the Authority. The | ||||||
13 | applicant shall be responsible for paying any fee or charge | ||||||
14 | involved in recording mortgages, releases, financing | ||||||
15 | statements, insurance for secondary market issues, and any | ||||||
16 | other similar fee or charge that the Authority may require. The | ||||||
17 | application shall at a minimum contain the borrower's name, | ||||||
18 | address, present credit and financial information, including | ||||||
19 | cash flow statements, financial statements, balance sheets, | ||||||
20 | and any other information pertinent to the application, and the | ||||||
21 | collateral to be used to secure the State Guarantee. In | ||||||
22 | addition, the borrower must certify to the Authority that, at | ||||||
23 | the time the State Guarantee is provided, the borrower will not | ||||||
24 | be delinquent in the repayment of any debt. The lender must | ||||||
25 | agree to charge a fixed or adjustable interest rate that the | ||||||
26 | Authority determines to be below the market rate of interest |
| |||||||
| |||||||
1 | generally available to the borrower. If both the lender and | ||||||
2 | applicant agree, the interest rate on the State guaranteed loan | ||||||
3 | can be converted to a fixed interest rate at any time during | ||||||
4 | the term of the loan. State Guarantees provided under this | ||||||
5 | Section (i) shall not exceed $250,000 per borrower, (ii) shall | ||||||
6 | be repaid annually, and (iii) shall be subject to an annual | ||||||
7 | review and renewal by the lender and the Authority. The State | ||||||
8 | Guarantee may be renewed annually, for a period not to exceed 3 | ||||||
9 | total years per State Guarantee, if the borrower meets | ||||||
10 | financial criteria and other conditions, as established by the | ||||||
11 | Authority. A farmer or agribusiness may use this program more | ||||||
12 | than once provided the aggregate principal amount of State | ||||||
13 | Guarantees under this Section to that farmer or agribusiness | ||||||
14 | does not exceed $250,000 annually. No State Guarantee shall be | ||||||
15 | revoked by the Authority without a 90-day notice, in writing, | ||||||
16 | to all parties. | ||||||
17 | (b) The Authority shall provide a State Guarantee to a | ||||||
18 | lender if: | ||||||
19 | (i) The borrower pays to the Authority a fee equal to | ||||||
20 | 100 basis points on the loan. | ||||||
21 | (ii) The application provides collateral acceptable to | ||||||
22 | the Authority that is at least equal to the State | ||||||
23 | Guarantee. | ||||||
24 | (iii) The lender assumes all responsibility and costs | ||||||
25 | for pursuing legal action on collecting any loan that is | ||||||
26 | delinquent or in default. |
| |||||||
| |||||||
1 | (iv) The lender is at risk for the first 15% of the | ||||||
2 | outstanding principal of the note for which the State | ||||||
3 | Guarantee is provided. | ||||||
4 | (c) The Illinois Agricultural Loan Guarantee Fund , and the | ||||||
5 | Illinois Farmer and Agribusiness Loan Guarantee Fund , and the | ||||||
6 | Industrial Project Insurance Fund may be used to secure State | ||||||
7 | Guarantees issued under this Section as provided in Section | ||||||
8 | 830-30 , and Section 830-35 , and subsection (j) of Section | ||||||
9 | 805-20 , respectively. If the Authority exercises its | ||||||
10 | discretion under subsection (j) of Section 805-20 to secure a | ||||||
11 | State Guarantee with the Industrial Project Insurance Fund and | ||||||
12 | also exercises its discretion under this subsection to secure | ||||||
13 | the same State Guarantee with the Illinois Agricultural Loan | ||||||
14 | Guarantee Fund, the Illinois Farmer and Agribusiness Loan | ||||||
15 | Guarantee Fund, or both, all payments by the Authority to | ||||||
16 | satisfy claims against the State Guarantee shall be made from | ||||||
17 | the Industrial Project Insurance Fund, the Illinois | ||||||
18 | Agricultural Loan Guarantee Fund, or the Illinois Farmer and | ||||||
19 | Agribusiness Loan Guarantee Fund, as applicable, in such order | ||||||
20 | and in such amounts as the Authority shall determine. | ||||||
21 | (d) Notwithstanding the provisions of this Section 830-55 | ||||||
22 | with respect to the borrowers and lenders who may obtain State | ||||||
23 | Guarantees, the Authority may promulgate rules establishing | ||||||
24 | the eligibility of borrowers and lenders to participate in the | ||||||
25 | State Guarantee program and the terms, standards, and | ||||||
26 | procedures that will apply, when the Authority finds that |
| |||||||
| |||||||
1 | emergency conditions in Illinois agriculture have created the | ||||||
2 | need for State Guarantees pursuant to terms, standards, and | ||||||
3 | procedures other than those specified in this Section.
| ||||||
4 | (Source: P.A. 96-897, eff. 5-24-10.)
| ||||||
5 | (20 ILCS 3501/Art. 835 heading new) | ||||||
6 | ARTICLE 835. VETERANS ASSISTANCE | ||||||
7 | (20 ILCS 3501/835-5 new) | ||||||
8 | Sec. 835-5. Legislative findings. The General Assembly | ||||||
9 | hereby finds and declares the following: (i) that there is an | ||||||
10 | inadequate supply of funds available in this State at rates | ||||||
11 | sufficiently low to enable veterans to own and operate small | ||||||
12 | businesses
successfully in this State; (ii) such an inadequate | ||||||
13 | supply of funds makes the
transition of veterans from service | ||||||
14 | in the armed forces of the United States to civilian life more | ||||||
15 | difficult and results in increased unemployment of veterans and | ||||||
16 | its attendant problems; (iii) that there have been recurrent | ||||||
17 | shortages of funds available to small businesses owned and | ||||||
18 | operated by veterans in this State from private market sources | ||||||
19 | at reasonable interest rates; and (iv) that the ordinary | ||||||
20 | operations of
private enterprise have not in the past corrected | ||||||
21 | these conditions.
| ||||||
22 | (20 ILCS 3501/835-10 new) | ||||||
23 | Sec. 835-10. Definitions. As used or referred to in this |
| |||||||
| |||||||
1 | Article 835, the following
words and terms shall have the | ||||||
2 | following meanings, except where the context clearly requires | ||||||
3 | otherwise: | ||||||
4 | "Fund" means one or more of the Industrial Project | ||||||
5 | Insurance Fund, the
Illinois Agricultural Loan Guarantee Fund, | ||||||
6 | or the Illinois Farmer and Agribusiness Loan Guarantee Fund, as | ||||||
7 | applicable. | ||||||
8 | "Illinois Agricultural Loan Guarantee Fund" means the | ||||||
9 | Illinois Agricultural Loan Guarantee Fund created under | ||||||
10 | Section 830-30(c) of this Act. | ||||||
11 | "Illinois Farmer and Agribusiness Loan Guarantee Fund" | ||||||
12 | means the Illinois Farmer and Agribusiness Loan Guarantee Fund | ||||||
13 | created under Section 830-35(c) of this Act. | ||||||
14 | "Industrial Project Insurance Fund" means the Industrial | ||||||
15 | Project Insurance
Fund created under Section 805-15 of this | ||||||
16 | Act. | ||||||
17 | "Qualified veteran-owned small business" has the meaning | ||||||
18 | provided in subsection (e) of Section 45-57 of the Illinois | ||||||
19 | Procurement Code.
| ||||||
20 | (20 ILCS 3501/835-15 new) | ||||||
21 | Sec. 835-15. Powers and duties. The Authority may enter | ||||||
22 | into a State Guarantee with a lender, or a person holding a | ||||||
23 | note, of a loan or loans to a qualified veteran-owned small | ||||||
24 | business and may make payment, in whole or in part, on a State | ||||||
25 | Guarantee from any of the following funds in such order and in |
| |||||||
| |||||||
1 | such amounts as the Authority shall determine: (1) the | ||||||
2 | Industrial
Project Insurance Fund (if the Authority exercises | ||||||
3 | its discretion under subsection (j) of Section 805-20); (2) the | ||||||
4 | Illinois Agricultural Loan Guarantee Fund; or (3) the Illinois | ||||||
5 | Farmer and Agribusiness Loan Guarantee Fund.
| ||||||
6 | (20 ILCS 3501/835-20 new) | ||||||
7 | Sec. 835-20. State Guarantees for loans to qualified | ||||||
8 | veteran-owned small businesses. | ||||||
9 | (a) The Authority is authorized to issue State Guarantees | ||||||
10 | to lenders for loans to qualified
veteran-owned small | ||||||
11 | businesses for the general corporate purposes of those | ||||||
12 | qualified veteran-owned small businesses. Lenders shall apply | ||||||
13 | for the State Guarantees on forms provided by the Authority, | ||||||
14 | certify that the application and any other documents submitted | ||||||
15 | are true and correct, and pay an administrative fee as | ||||||
16 | determined by the Authority. The applicant shall be responsible | ||||||
17 | for paying any fees or charges involved in recording mortgages, | ||||||
18 | releases, and financing statements, and any other similar fees | ||||||
19 | or charges as the Authority may require. The application shall, | ||||||
20 | at a minimum, contain the name, address, present credit and | ||||||
21 | financial information, including
cash flow statements, | ||||||
22 | financial statements, and balance sheets, of the qualified | ||||||
23 | veteran-owned small business, any other information pertinent | ||||||
24 | to the application, and the collateral to be used to secure the | ||||||
25 | State Guarantee. |
| |||||||
| |||||||
1 | In addition, the lender must agree to charge an interest | ||||||
2 | rate, which may vary, on the loan that the Authority determines | ||||||
3 | to be below the market rate of interest generally available to | ||||||
4 | the borrower. If both the lender and applicant agree, the | ||||||
5 | interest rate on the loan subject to a State Guarantee can be | ||||||
6 | converted to a fixed interest rate at any time during the term | ||||||
7 | of the loan. Any State Guarantees provided under this Section | ||||||
8 | shall (i) not exceed $500,000 per qualified veteran-owned small | ||||||
9 | business, (ii) not exceed a term of 15 years, and (iii) be | ||||||
10 | subject to an
annual review and renewal by the lender and the | ||||||
11 | Authority; provided that only one such State Guarantee shall be | ||||||
12 | made per qualified veteran-owned small business, except that | ||||||
13 | additional State Guarantees may be made for purposes of | ||||||
14 | expansion of projects financed in part by a previously issued | ||||||
15 | State Guarantee. No State Guarantee shall be revoked by the | ||||||
16 | Authority without a 90-day notice, in writing, to all parties. | ||||||
17 | The lender shall not call due any loan for any reason except | ||||||
18 | for lack of performance, insufficient collateral, or maturity. | ||||||
19 | A lender may review and withdraw or continue with a State | ||||||
20 | Guarantee on an annual basis after the first 5 years following | ||||||
21 | closing of the loan application if the loan contract provides | ||||||
22 | for an interest rate that does not vary. A lender shall not | ||||||
23 | withdraw a State Guarantee if the loan contract provides for an | ||||||
24 | interest rate that may vary, except for reasons set forth in | ||||||
25 | this Section. | ||||||
26 | (b) The Authority shall provide or renew a State Guarantee |
| |||||||
| |||||||
1 | to a lender if: | ||||||
2 | (1) a fee equal to 25 basis points on the loan is paid | ||||||
3 | to the Authority on an annual basis by the lender; | ||||||
4 | (2) the application provides collateral acceptable to | ||||||
5 | the Authority that is at least equal to
the State's portion | ||||||
6 | of the Guarantee to be provided; | ||||||
7 | (3) the lender assumes all responsibility and costs for | ||||||
8 | pursuing legal action on
collecting any loan that is | ||||||
9 | delinquent or in default; and | ||||||
10 | (4) the lender is responsible for the first 15% of the | ||||||
11 | outstanding principal of the note for which the State | ||||||
12 | Guarantee has been applied. | ||||||
13 | (c) If, for any reason, the General Assembly fails to make | ||||||
14 | an appropriation sufficient to
meet the obligations under a | ||||||
15 | State Guarantee, this Act shall constitute an irrevocable and | ||||||
16 | continuing appropriation of an amount necessary to secure | ||||||
17 | guarantees as defaults occur and the irrevocable and continuing | ||||||
18 | authority for, and direction to, the State Treasurer and the | ||||||
19 | Comptroller to make the necessary transfers to the Industrial | ||||||
20 | Project Insurance Fund, the Illinois Agricultural Loan | ||||||
21 | Guarantee Fund, or the Illinois Farmer and Agribusiness Loan | ||||||
22 | Guarantee Fund, or any combination of those funds, as directed | ||||||
23 | by the Governor, out of the General Revenue Fund. In the event | ||||||
24 | of a default by the borrower on a loan subject to a State | ||||||
25 | Guarantee under this Section, Section 830-30, Section 830-35, | ||||||
26 | Section 830-45, Section 830-50, or Section 830–55, the lender |
| |||||||
| |||||||
1 | shall be entitled to, and the Authority shall direct payment | ||||||
2 | on, the State Guarantee after 90 days of delinquency. Payments | ||||||
3 | by the Authority to satisfy claims against the State Guarantee | ||||||
4 | shall be made, in whole or in part, from any of the following | ||||||
5 | funds in such order and in such amounts as the Authority shall | ||||||
6 | determine: (1) the Industrial Project Insurance Fund created | ||||||
7 | under Article 805 of this Act (if the Authority exercises its | ||||||
8 | discretion under subsection (j) of Section 805-20); (2) the | ||||||
9 | Illinois Farmer and Agribusiness Loan Guarantee Fund; or (3) | ||||||
10 | the
Illinois Agricultural Loan Guarantee Fund. It shall be the | ||||||
11 | responsibility of the lender to proceed with collecting and | ||||||
12 | disposing of collateral on the State Guarantee under this | ||||||
13 | Section within 14 months after the State Guarantee is declared | ||||||
14 | delinquent. If the lender does not dispose of the collateral | ||||||
15 | within that 14-month period, the lender shall be liable to | ||||||
16 | repay to the State interest on the State Guarantee at a rate | ||||||
17 | equal to the same rate that the lender charges on the State | ||||||
18 | Guarantee, provided that the
Authority shall have the authority | ||||||
19 | to extend the 14-month period for a lender in the case of | ||||||
20 | bankruptcy or extenuating circumstances. The applicable fund | ||||||
21 | or funds shall be reimbursed for any amounts paid under this | ||||||
22 | Section, Section 830-30, Section 830-35, Section 830-45, | ||||||
23 | Section 830-50, or Section 830-55 upon liquidation of the | ||||||
24 | collateral. The Authority, by resolution of the Board, may | ||||||
25 | borrow sums from a fund or funds and provide for repayment as | ||||||
26 | soon as may be
practical upon receipt of payments of principal |
| |||||||
| |||||||
1 | and interest by a borrower on loans subject to a State | ||||||
2 | Guarantee under this Section, Section 830-30, Section 830-35, | ||||||
3 | Section 830-45, Section 830-50, or Section 830-55. Money may be | ||||||
4 | borrowed from the Fund by the Authority for the sole
purpose of | ||||||
5 | paying certain interest costs for borrowers associated with | ||||||
6 | selling a loan subject to a State Guarantee under this Section, | ||||||
7 | Section 830–30, Section 830–35, Section 830-45, Section
| ||||||
8 | 830-50, or Section 830-55 in a secondary market as may be | ||||||
9 | deemed reasonable and necessary by the Authority. | ||||||
10 | (d) Notwithstanding the provisions of this Section with | ||||||
11 | respect to the qualified veteran-owned small businesses and | ||||||
12 | lenders who may obtain State Guarantees, the Authority
may | ||||||
13 | adopt rules establishing the eligibility of qualified | ||||||
14 | veteran-owned small businesses and lenders to participate in | ||||||
15 | the State Guarantee program and the terms, standards, and | ||||||
16 | procedures that will apply, if the Authority finds that | ||||||
17 | emergency conditions in Illinois have
created the need for | ||||||
18 | State Guarantees pursuant to terms, standards, and procedures | ||||||
19 | other than those specified in this Section.
| ||||||
20 | (20 ILCS 3501/835-25 new) | ||||||
21 | Sec. 835-25. Authority administrative expenses. For | ||||||
22 | fiscal years 2017 through 2019, the Authority is authorized to | ||||||
23 | reimburse itself for the ordinary and necessary expenses of | ||||||
24 | administering the State Guarantee
program under this Article | ||||||
25 | from amounts from time to time available in the Industrial |
| |||||||
| |||||||
1 | Project Insurance Fund in amounts not to exceed: (1) $275,000 | ||||||
2 | in fiscal year 2017; and (2) $200,000 per fiscal year in fiscal | ||||||
3 | years 2018 and 2019. Ordinary and necessary expenses of | ||||||
4 | administering those State Guarantee programs include, without | ||||||
5 | limitation, costs of general administration, staff, accounting | ||||||
6 | and auditing services, legal services, judgments, loan | ||||||
7 | servicing, realization upon collateral, communications with | ||||||
8 | borrowers and lenders, and similar expenses, all to the extent | ||||||
9 | reasonably allocable to such State Guarantee programs. | ||||||
10 | This Section is repealed on August 1, 2019.
| ||||||
11 | Section 99. Effective date. This Act takes effect upon | ||||||
12 | becoming law.
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