20 ILCS 3501/805-35
2021 Illinois Compiled Statutes|Chapter 20 - EXECUTIVE BRANCH|20 ILCS 3501/ - Illinois Finance Authority Act.|Article 805 - Industrial Revenue Bond Insurance Fund

Sec. 805-35.     Loan Approval Standards.     Before approving any bond or loan  insurance under this Act, the Authority shall find that any loan insured by or  to be made from the proceeds of bonds insured by the Authority under this Act  shall:(a) Be made for an industrial project or any environmental facility under  the Illinois Environmental Facilities Financing Act;(b) Be made to a borrower approved by the Authority as responsible and  creditworthy;(c) Be reviewed for insurance by the credit review committee established by  the Authority pursuant to this Act;(d) In the case of real property, be secured by a first mortgage on the  property, or by any other security satisfactory to the Authority to secure  payment of the loans, and have a maturity date not later than 25 years after  the date of the loan;(e) In the case of machinery and equipment, be secured by a first security  interest in the machinery and equipment, or by any other security satisfactory  to the Authority to secure payment of the loan, and have a maturity date not  later than 12 years from the date of the loan;(f) Contain complete amortization provisions satisfactory to the Authority;(g) Be in such principal amount and form, and contain such terms and  provisions with respect to property insurance, repairs, alterations, payment of  taxes and  assessments, delinquency charges, default remedies, additional security and  other matters as the Authority shall determine;(h) Be made only after the Authority has made a determination that, in its  sole opinion, the loan has the potential to provide or retain substantial  employment  in relation to the principal amount of the loan to be insured, which  employment, so far as feasible, may be expected to be of residents of areas of  critical  labor surplus;(i) Be made only after the Authority has made a determination that, in its  sole opinion, adequate provision is being or will be made to meet any increased  demand upon community public facilities that will likely result from the  project; and(j) Be made only after the Authority has made a determination that, in its  sole opinion, the public interest is adequately protected by the terms of the  loan  and of the insurance contract or other agreements.  Any contract of insurance executed by the Authority under this Act shall be  conclusive evidence of eligibility for such insurance, and the validity of any  contract of insurance so executed or of an advance commitment to insure shall  be  incontestable in the hands of a borrower or bondholder from the date of  execution and delivery of the contract or commitment, except for fraud, or  misrepresentation on the part of the borrower and, as to commitments to insure,  noncompliance with the commitment or Authority rules or regulations in force at  the time of issuance of the commitment.  Nothing in this Act shall be construed as creating any rights of a competitor  of an approved borrower or any applicant whose application is denied by the  Authority to challenge any application which is accepted by the Authority and  any loan, contract of insurance or other agreement executed in connection  therewith.    (Source: P.A. 93-205, eff. 1-1-04.)