Bill Text: IL SB0521 | 2017-2018 | 100th General Assembly | Enrolled

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

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Bill Title: Amends the State Prompt Payment Act. Makes a technical change concerning examination of vouchers.

Sponsorship: Slight Partisan Bill (Democrat 4-2)

Status: (Passed) 2017-12-29 - Public Act . . . . . . . . . 100-0573 [SB0521 Detail]

Download: Illinois-2017-SB0521-Enrolled.html

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AN ACT concerning finance.
Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
Section 5. The Eastern Illinois Economic Development
Authority Act is amended by changing Section 35 as follows:
(70 ILCS 506/35)
Sec. 35. Bonds.
(a) The Authority, with the written approval of the
Governor, shall have the continuing power to issue bonds,
notes, or other evidences of indebtedness in an aggregate
amount outstanding not to exceed $500,000,000 $250,000,000 for
the following purposes: (i) development, construction,
acquisition, or improvement of projects, including those
established by business entities locating or expanding
property within the territorial jurisdiction of the Authority;
(ii) entering into venture capital agreements with businesses
locating or expanding within the territorial jurisdiction of
the Authority; (iii) acquisition and improvement of any
property necessary and useful in connection therewith; and (iv)
for the purposes of the Employee Ownership Assistance Act. For
the purpose of evidencing the obligations of the Authority to
repay any money borrowed, the Authority may, pursuant to
resolution, from time to time, issue and dispose of its

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

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

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bonds, notes, and other evidences of indebtedness shall be
negotiable instruments. Pending the preparation and execution
of any bonds, notes, or other evidences of indebtedness,
temporary bonds, notes, or evidences of indebtedness may be
issued as provided by ordinance.
(e) To secure the payment of any or all of such bonds,
notes, or other evidences of indebtedness, the revenues to be
received by the Authority from a lease agreement or loan
agreement shall be pledged, and, for the purpose of setting
forth the covenants and undertakings of the Authority in
connection with the issuance of the bonds, notes, or other
evidences of indebtedness and the issuance of any additional
bonds, notes or other evidences of indebtedness payable from
such revenues, income, or other funds to be derived from
projects, the Authority may execute and deliver a mortgage or
trust agreement. A remedy for any breach or default of the
terms of any mortgage or trust agreement by the Authority may
be by mandamus proceeding in the appropriate circuit court to
compel performance and compliance under the terms of the
mortgage or trust agreement, but the trust agreement may
prescribe by whom or on whose behalf the action may be
instituted.
(f) Bonds or notes shall be secured as provided in the
authorizing ordinance which may include, notwithstanding any
other provision of this Act, in addition to any other security,
a specific pledge, assignment of and lien on, or security

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interest in any or all revenues or money of the Authority, from
whatever source, which may, by law, be used for debt service
purposes and a specific pledge, or assignment of and lien on,
or security interest in any funds or accounts established or
provided for by ordinance of the Authority authorizing the
issuance of the bonds or notes.
(g) The State of Illinois pledges to and agrees with the
holders of the bonds and notes of the Authority issued pursuant
to this Section that the State will not limit or alter the
rights and powers vested in the Authority by this Act so as to
impair the terms of any contract made by the Authority with the
holders of bonds or notes or in any way impair the rights and
remedies of those holders until the bonds and notes, together
with interest thereon, with interest on any unpaid installments
of interest, and all costs and expenses in connection with any
action or proceedings by or on behalf of the holders, are fully
met and discharged. In addition, the State pledges to and
agrees with the holders of the bonds and notes of the Authority
issued pursuant to this Section that the State will not limit
or alter the basis on which State funds are to be paid to the
Authority as provided in this Act, or the use of such funds, so
as to impair the terms of any such contract. The Authority is
authorized to include these pledges and agreements of the State
in any contract with the holders of bonds or notes issued
pursuant to this Section.
(h) (Blank).

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(Source: P.A. 98-750, eff. 1-1-15.)
Section 99. Effective date. This Act takes effect upon
becoming law.