20 ILCS 3501/801-40
2021 Illinois Compiled Statutes|Chapter 20 - EXECUTIVE BRANCH|20 ILCS 3501/ - Illinois Finance Authority Act.|Article 801 - General Provisions

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, or, in the case of clean energy projects, any not-for-profit philanthropic or other charitable organization, public or private, 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. In addition, the Authority may use any moneys appropriated for such purpose from the Build Illinois Bond Fund, including funds loaned under this subsection and repaid as principal or interest, and investment income on such funds, to make the loans authorized by subsection (z), without regard to any restrictions or limitations provided in this subsection.(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 Authority may establish a direct loan program to make loans to, or may purchase participations in loans made by participating lenders to,  individuals, partnerships, 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,   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. 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 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, may be in an amount not to exceed $600,000   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 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. The Authority may require such interests in collateral  and such guarantees as it determines are necessary to protect the Authority's  interest in the repayment of the principal and interest of each loan and loan participation made under  the 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.(z) Consistent with the findings and declaration of policy set forth in item (j) of Section 801-5 of this Act,  the Authority shall have the power to make loans to  the Police Officers' Pension Investment Fund authorized by Section 22B-120 of the Illinois Pension Code and to make loans to  the Firefighters' Pension Investment Fund authorized by Section 22C-120 of the Illinois Pension Code. Notwithstanding anything in this Act to the contrary, loans authorized by Section 22B-120 and Section 22C-120 of the Illinois Pension Code may be made from any of the Authority's funds, including, but not limited to,  funds in its Illinois Housing Partnership Program Fund, its Industrial Project Insurance Fund, or its Illinois Venture Investment Fund. (Source: P.A. 101-610, eff. 1-1-20; 102-662, eff. 9-15-21.)