2023 Illinois Compiled Statutes › Chapter 805 - BUSINESS ORGANIZATIONS › 805 ILCS 35/ - Illinois Development Credit Corporation Act.

(805 ILCS 35/1) (from Ch. 32, par. 1001)
Sec. 1. 
		
		This Act shall be known and may be cited as the Illinois Development Credit Corporation Act.
(Source: Laws 1965, p. 577.)
(805 ILCS 35/2) (from Ch. 32, par. 1002)
Sec. 2. 
		
		The purpose of this Act is to assist and encourage the development
and advancement of the business prosperity and economic welfare of the
State, to assist and encourage the expansion of existing industries and the
location of new industries in this State, and to provide for maximum
opportunities for employment, and to these ends to establish a source of
credit not otherwise available through conventional commercial channels for
the promotion, development and conduct of new and expanded business
activities in this State.
(Source: Laws 1965, p. 577.)
(805 ILCS 35/3) (from Ch. 32, par. 1003)
Sec. 3. 
		As used in this Act, unless the context otherwise requires:
"Development credit corporation" means any corporation organized
pursuant to this Act for the purposes prescribed in Section 4 of this
Act.
"Financial institution" means any bank, trust company, savings and loan
association, insurance company, or related corporation, partnership,
foundation or other institution, authorized to do business in the State of
Illinois and engaged primarily or largely in lending or investing funds.
"Member" means any financial institution which undertakes to lend money
to a development credit corporation upon its call and in accordance with
Section 15 of this Act.
"Board of Directors" means the board of directors of a development
credit corporation.
"Loan Limit" means, for any member, the maximum amount permitted to be
outstanding at any one time on loans made by such member to a development
credit corporation, as determined by the provisions of this Act and shall
include the aggregate unpaid principal amount of all obligations or
evidences of indebtedness, or participations therein, of any development
credit corporation, owned by such member.
"Director" means the Director of Financial Institutions.
(Source: Laws 1965, p. 577.)
(805 ILCS 35/4) (from Ch. 32, par. 1004)
Sec. 4. 
		
		The purposes of a development credit corporation shall be limited
to those provided in this Section and shall be to promote, stimulate,
develop and advance the business prosperity and economic welfare of the
State of Illinois and its citizens; to encourage and assist, when usual,
customary credit is not available, through loans, investments, or other
business transactions, the location of new business and industry in the
State; to rehabilitate and assist existing business and industry in this
State; to stimulate and assist in the expansion of any kind of business
activity which would tend to promote business development and maintain the
economic stability of this State, provide maximum opportunities for
employment and improve the standard of living of the citizens of this
State; to cooperate and act in conjunction with other organizations, public
or private, in the promotion and advancement of industrial, commercial,
agricultural, and recreational development in this State; and to provide
financing for the promotion, development, and conduct of all kinds of
business activity in this State.
(Source: Laws 1965, p. 577.)
(805 ILCS 35/5) (from Ch. 32, par. 1005)
Sec. 5. 
		
		Any 3 or more qualified natural persons, all of whom shall be bona
fide residents of this State, who desire to associate themselves for the
purpose of establishing and operating a development credit corporation may
subscribe, acknowledge and file with the Director for approval articles of
incorporation as set out in Section 11.
(Source: Laws 1965, p. 577.)
(805 ILCS 35/6) (from Ch. 32, par. 1006)
Sec. 6. 
		
		As soon as practicable after the receipt of the proposed articles
of incorporation, the Director shall, from the best sources of information
available, ascertain the character and general fitness of the applicants
and their standing in their respective communities. The Director shall
issue his certificate approving the articles of incorporation and
authorizing the applicants to proceed with the organization of the
development credit corporation if he is satisfied:
(1) That all the applicants are bona fide residents of the State;
(2) That they have the confidence of their respective communities;
(3) That the proposed articles of incorporation conform to the
provisions of Section 11 of this Act.
(Source: Laws 1965, p. 577.)
(805 ILCS 35/6.1)
Sec. 6.1. 
All moneys received by the Department of Financial Institutions
under this Act shall be deposited in the Financial Institution Fund created
under Section 6z-26 of the State Finance Act.
(Source: P.A. 98-463, eff. 8-16-13.)
(805 ILCS 35/7) (from Ch. 32, par. 1007)
Sec. 7. 
		
		Upon receipt of the certificate of preliminary approval the
applicants may proceed to complete the organization of the development
credit corporation, to obtain subscriptions for and payment of its capital
stock, and do all other things necessarily incidental and preliminary to
its transacting business.
(Source: Laws 1965, p. 577.)
(805 ILCS 35/8) (from Ch. 32, par. 1008)
Sec. 8. 
		
		When the applicants have completed the organization of the proposed
development credit corporation, they shall file with the Director a certificate
of organization executed by its president and attested by its secretary and
with its seal affixed thereto, certifying:
(1) the name and addresses of all of its subscribers     of stock, the number of shares subscribed and the number of shares fully paid for by each;
(2) the total number of shares subscribed, but not     fully paid for;
(3) the total number of shares paid in full;
(4) the name and address of any depositary holding on     deposit any funds of the development credit corporation;
(5) the names and addresses of the officers and     members of the executive committee, if any, of the development credit corporation.
The certificate of organization of the applicant shall be accompanied by:
(1) the certificate of any named depositary     certifying the amount of funds on deposit to the credit of the development credit corporation;
(2) any bylaws or resolutions which have been adopted.
(Source: P.A. 91-357, eff. 7-29-99.)
(805 ILCS 35/9) (from Ch. 32, par. 1009)
Sec. 9. 
		
		As soon as practicable after the filing of the certificate of
organization by the applicants, the Director shall issue to the applicants
a certificate of incorporation in such form as he may prescribe, if the
Director, from the best information available, determines that:
(1) The holders of the fully paid stock of the corporation are at least
10 in number;
(2) Not less than $50,000 has been received in cash for the fully paid
stock of the corporation;
(3) The bylaws and regulations submitted, if any, are in conformity with
the articles of incorporation and the provisions of this Act and not in
conflict with any law of this State.
The Director shall return to the applicants one of the articles of
incorporation submitted to him and shall indorse thereon the issuance by
him of the certificate of incorporation.
(Source: Laws 1965, p. 577.)
(805 ILCS 35/10) (from Ch. 32, par. 1010)
Sec. 10. 
		
		Upon the issuance of the certificate of incorporation by the
Director, the corporate existence of the development credit corporation
begins. The certificate of incorporation is conclusive except as against
the State, that all conditions precedent have been complied with and that
the corporation has been incorporated under this Act.
A copy of the articles of incorporation, indorsed by the Director, shall
be filed for recordation in the office of the recorder in the
county in which the principal office of the development credit corporation
is located.
(Source: P.A. 83-358.)
(805 ILCS 35/11) (from Ch. 32, par. 1011)
Sec. 11. 
		
		The articles of incorporation for a development credit corporation
organized under the provisions of this Act shall state:
(1) The name of the corporation, which name shall include the words
"Illinois Development Credit Corporation" but shall have in addition a
numerical or other designation so as to distinguish it from any development
credit corporation which may be organized subsequently and the name shall
be such as to distinguish it from any other corporation organized under the
laws of this State;
(2) The purpose for which the corporation is formed;
(3) The period of duration of the corporation, which may be perpetual or
limited;
(4) The address of its principal office and the name of its agent on
whom process may be served;
(5) The total number of shares of stock which the corporation is
authorized to issue, the number of shares of each class, the par value of
such shares, or a statement that the shares are of no par value;
(6) The number of directors, not less than 18, to be elected at the
annual meeting;
(7) The names and addresses of the incorporators, not less than 3, who
will manage the affairs of the corporation until the first meeting of
stockholders and members;
(8) Any provisions, not inconsistent with law, which the incorporators
may choose to insert for the regulation of the business and the conduct of
the affairs of the corporation.
It is not necessary to set out in the articles of incorporation any of
the corporate powers enumerated in this Act.
(Source: Laws 1965, p. 577.)
(805 ILCS 35/12) (from Ch. 32, par. 1012)
Sec. 12. 
		
		The articles of incorporation may be amended by a majority vote of
the stockholders and members who will vote in accordance with Section 16 of
this Act at any regular meeting or at a special meeting called for that
purpose.
Articles of amendment signed by the president or vice president and
attested by the secretary certifying to the amendment and its lawful
adoption shall be executed, acknowledged and filed with the Director and,
when approved by the Director, recorded with a certificate of the Director
approving the articles of amendment, in the same manner as the original
articles of incorporation. As soon as the Director issues his certificate
of amendment the amendment is in effect.
(Source: Laws 1965, p. 577.)
(805 ILCS 35/13) (from Ch. 32, par. 1013)
Sec. 13. 
		
		The first annual meeting shall be held as soon as practicable
after the issuance of a certificate of incorporation. The first and
subsequent annual meetings of stockholders and members shall be called as
provided in the bylaws of the corporation.
At the first annual meeting, and at annual meetings thereafter the
directors shall be elected by vote of the stockholders. At all meetings,
annual or special, for whatever purpose held, stockholders shall have one
vote for each share of stock owned. When voting in elections for directors
every stockholder shall have the right to vote, in person or by proxy, for
the number of shares of stock owned by him, for as many persons as there
are directors to be elected, or to cumulate such shares, and give one
candidate as many votes as the number of directors multiplied by the number
of his shares of stock shall equal, or to distribute them on the same
principle among as many candidates as he shall think fit.
(Source: Laws 1965, p. 577.)
(805 ILCS 35/14) (from Ch. 32, par. 1014)
Sec. 14. 
		
		The management of the affairs of the corporation shall be
administered by a board of directors. Until the first meeting of
stockholders, the incorporators shall have the powers and perform the
duties ordinarily possessed and exercised by a board of directors.
Thereafter, the board of directors shall be composed of not less than 18
persons who shall be residents of this State. Each member shall be entitled
to nominate at least one candidate at any election of directors for
consideration by the shareholders together with candidates for director
nominated by any shareholder.
The directors shall hold office until their successors are elected and
qualified.
No director shall receive any salary until the earned surplus of the
corporation equals the total of the capital and paid-in surplus as provided
in Section 19.
The Executive Director of the Board of Economic Development, or the
Director or other chief executive officer of any department or agency which
may succeed such Board, shall be given notice of all meetings of the board
of directors and may attend any such meeting for the purpose of presenting
suggested prospects desiring financial help whose industrial expansion and
development are consistent with the desired economic development of the
State.
(Source: Laws 1965, p. 577.)
(805 ILCS 35/15) (from Ch. 32, par. 1015)
Sec. 15. 
		
		A financial institution may request membership in a development
corporation by making application to the board of directors thereof on such
form and in such manner as such board of directors may require, and
membership shall become effective upon acceptance of such application by
said board. No financial institution shall become a member of more than one
development credit corporation.
Each member of any development corporation shall make loans to such
development corporation as and when called upon by that corporation to do
so, subject to the following:
1.  All loan limits shall be established at the thousand dollar amount
nearest the amount computed in accordance with the provisions of this
section.
2.  The total amount outstanding at any one time on loans to a
development corporation made by a member thereof when added to the amount
of the investment in the capital stock of such corporation and held by such
member, shall not exceed the lesser of:
a. 20 per cent of the total amount then outstanding on loans to such
development corporation by all members thereof, including in said total
amount outstanding amounts validly called for loan but not yet loaned.
b. The limit, to be determined as of the time such member becomes a
member, on the basis of the audited balance sheet of such member at the
close of its fiscal year immediately preceding its application for
membership and adjusted at the end of each subsequent fifth year, as follows:
(1) National and State banks and trust companies--2 per cent of the
paid-in capital, surplus and undivided profits.
(2) Savings and loan associations--2 per cent of the general reserve
account, surplus, permanent reserve shares and undivided profits.
(3) Stock insurance companies except fire insurance companies--1 per
cent of capital and unassigned surplus.
(4) Mutual insurance companies except fire insurance companies--1 per
cent of the unassigned surplus.
(5) Fire insurance companies--1 per cent of the assets.
(6) Similar corporations, partnerships, foundations or other
institutions licensed to do business in this State and engaged primarily in
lending or investing funds--such limits as may be approved by the board of
directors of the development credit corporation.
3. The adjusted loan limit of a member shall be the amount of such member's
loan limit, reduced by the balance of outstanding obligations of the
corporation to such member at the time of such call.
4. Upon written notice given at least 6 months in advance, a member of
the corporation may withdraw from membership in the corporation at the
expiration date of such notice. A member shall not be obligated to make any
loans to the development corporation pursuant to calls made subsequent to
the withdrawal of said member.
5. All loans to the corporation by members shall be evidenced by bonds,
debentures, notes or other evidences of indebtedness of the corporation
which may be issued in negotiable or registered form.
(Source: P.A. 82-933.)
(805 ILCS 35/16) (from Ch. 32, par. 1016)
Sec. 16. 
		
		At annual or special meetings of stockholders and members with
respect to matters submitted for a vote to such stockholders and members
(with the exception of the election of directors which is governed by
Sections 13 and 14 of this Act) each stockholder shall have one vote, in
person or by proxy, for each share of capital stock held by him, and each
member shall have one vote, in person or by proxy, except that any member
having loaned more than one hundred dollars to the corporation shall have
one additional vote, in person or by proxy, for each additional one hundred
dollars which such member has outstanding on loans to the corporation at
the time of the vote.
(Source: Laws 1965, p. 577.)
(805 ILCS 35/17) (from Ch. 32, par. 1017)
Sec. 17. 
		Each corporation organized under this Act shall have power:
(1) To sue and be sued, complain and defend, in its corporate name;
(2) To have perpetual succession, unless a limited period of duration is
stated in its articles of incorporation;
(3) To adopt a corporate seal and to use it, or a facsimile thereof, as
required or permitted by law;
(4) To borrow money and otherwise incur indebtedness for any of the
purposes of the corporation; to issue its bonds, debentures, notes or other
evidences of indebtedness, whether secured or unsecured, therefor; and to
secure the same by mortgage, pledge, deed of trust or other lien on its
property, franchises, rights and privileges of every kind and nature or any
part thereof;
(5) To lend money to, and to guarantee, indorse, or act as surety on the
bonds, notes, contracts or other obligations of, or otherwise assist
financially any person, firm, corporation, association, partnership or
joint venture, other than a financial institution, and to establish and
regulate the terms and conditions with respect to any such loans or
financial assistance and the charges for interest and service connected
therewith; but no such corporation shall make any loan unless the borrower
submits satisfactory evidence that his or its application for a loan has
been rejected by at least one conventional lending institution;
(6) To purchase, receive, hold, lease or otherwise acquire, and to sell,
convey, mortgage, lease, pledge, or otherwise dispose of, upon such terms
and conditions as the board of directors may deem advisable, real and
personal property, together with such rights and privileges as may be
incidental and appurtenant thereto and the use thereof, including, but not
restricted to, any real or personal property acquired by the corporation
from time to time in the satisfaction of debts or enforcement of
obligations;
(7) To acquire the good will, business, rights, real and personal
property and other assets, or any part thereof, of such persons, firms,
corporations, joint stock companies, associations, partnerships, joint
ventures or trusts as may be in furtherance of the corporate purposes
provided herein, and to assume, undertake, guarantee or pay the
obligations, debts and liabilities of any such person, firm, corporation,
joint stock company, association or trust, other than a financial
institution;
(8) To acquire improved or unimproved real estate for the purpose of
constructing industrial plants or other business establishments thereon or
for the purpose of disposing of such real estate to others for the
construction of industrial plants or other business establishments, and, in
furtherance of the corporate purpose provided herein, to acquire, construct
or reconstruct, alter, repair, maintain, operate, sell, lease or otherwise
dispose of industrial plants or business establishments;
(9) To acquire, subscribe for, own, hold, sell, assign, transfer,
mortgage, pledge or otherwise dispose of the stock, shares, bonds,
debentures, notes or other securities and evidences of interest in, or
indebtedness of, any person, partnership, firm, corporation, joint stock
company, association, trust or other joint ventures, and, while the owner
or holder thereof, to exercise all the rights, powers and privileges of
ownership, including the right to vote thereon;
(10) To invest idle funds, temporarily, in United States Government
securities. However, no calls for loans from its members shall be made
without applying such idle funds, although so invested, to the purpose for
which such call is made;
(11) To cooperate with and avail itself of the facilities of
governmental agencies; and to cooperate with and assist, and otherwise
encourage, local organizations in the several communities of the State the
purpose of which shall be the promotion, assistance and development of the
business prosperity and economic welfare of such communities and of this
State;
(12) To make any and all contracts and to do and perform any and all
acts necessary or convenient for the exercise of the powers granted by this
Act;
(13) To elect or appoint officers, agents and employees of the
corporation and to define their duties and fix their compensation;
(14) Subject to the provisions of Section 4 of this Act, to conduct
its business within or without this State;
(15) To accept gifts or grants of money, service or property, real or
personal.
No development credit corporation has power to assume the management and
control of a business enterprise except in cases of default on loans
extended to the business enterprise when the loan agreement so provides
and, in such cases, the development credit corporation must divest itself
of control within 2 years.
(Source: P.A. 82-933.)
(805 ILCS 35/18) (from Ch. 32, par. 1018)
Sec. 18. 
		
		All development credit corporations shall possess all applicable
powers and privileges granted corporations by the "Business Corporation
Act of 1983" and shall be subject to the penal and penalty provisions of that Act
except as otherwise provided in this Act.
(Source: P.A. 83-1362.)
(805 ILCS 35/19) (from Ch. 32, par. 1019)
Sec. 19. 
		
		The corporation shall set apart as an earned surplus at least 50%
of its net earnings each year until such earned surplus equals the total of
the capital and paid-in surplus then outstanding. Whenever the amount of
the earned surplus is reduced below the requirement of this section, it
shall be built up again to the required amount in the manner provided for
in its original accumulation.
(Source: Laws 1965, p. 577.)
(805 ILCS 35/20) (from Ch. 32, par. 1020)
Sec. 20. 
		
		The corporation shall not deposit any of its funds in any banking
institution unless such institution has been designated as a depositary by
a vote of a majority of the directors, exclusive of any director who is an
officer or director of the depositary so designated. The corporation shall
not receive money on deposit. No loans shall be made directly or indirectly
to any officer or director of the corporation or to any firm or corporation
in which such officer or director or any member of the immediate family of
any such officer or director owns in excess of a 10% interest, or otherwise
controls, directly or indirectly. Any officer or director knowingly
approving any loan in violation of this section shall be personally liable
for the amount thereof and such approval shall be presumed unless the
dissent of such officer or director is noted upon the records of the
corporation.
(Source: Laws 1965, p. 577.)
(805 ILCS 35/21) (from Ch. 32, par. 1021)
Sec. 21. 
		
		The corporation shall be subject to the supervision and
examination of the Director and the corporation shall pay the actual
expenses of such examination as determined by the Director. The corporation
shall make such annual or other reports of its condition to the Director as
he may prescribe.
The Department of Financial Institutions may make and enforce such
reasonable rules, regulations, directions, orders, decisions, and findings
as the execution and enforcement of the provisions of this Act require, and
as are not inconsistent therewith. All such rules, regulations, directions,
orders, decisions, and findings shall be filed and entered by the
Department in an indexed permanent book or record, with the effective date
thereof suitably indicated. Copies of all rules, regulations and directions
of a general character shall be mailed to all corporations then in
existence within 10 days after such filing.
(Source: Laws 1965, p. 577.)
(805 ILCS 35/22) (from Ch. 32, par. 1022)
Sec. 22. 
		
		The holders of capital stock as such shall have no preemptive or
preferential right to purchase or subscribe for any part of the unissued
capital stock of the corporation of any class or for any new issue of stock
of any class, whether now or hereafter authorized or issued, or to purchase
or subscribe for any bonds or other obligations, whether or not convertible
into stock of any class of the corporation, now or hereafter authorized or
issued.
(Source: Laws 1965, p. 577.)
(805 ILCS 35/23) (from Ch. 32, par. 1023)
Sec. 23. 
		
		Any corporation organized under this Act, after the payment in
full and cancellation of all its bonds and other obligations issued under
the provisions of this Act, or after the deposit in trust with the
respective trustees designated in any deeds of trust given to secure the
payment of any such obligation of a sum of money sufficient for the
purpose, may dissolve by the vote of a majority of the stockholders at any
regular meeting or at a special meeting called for that purpose.
A certificate of dissolution shall be signed by the president or vice
president and attested by the secretary, certifying to the dissolution and
that they have been authorized by lawful action of the stockholders to
execute and file such certificate. The certificate of dissolution shall be
executed, acknowledged and filed with the Director and, when approved by
him, shall be recorded in the same manner as the original articles of
incorporation. When the Director has indorsed his approval on the
certificate of dissolution the corporation is deemed to be dissolved.
The corporation shall, however, continue for the purpose of paying,
satisfying and discharging any other existing liabilities or obligations
and for collecting or liquidating its assets, and doing all other acts
required to adjust and wind up its business and affairs, and may sue and be
sued in its corporate name.
Any assets remaining after all liabilities and obligations have been
satisfied shall be distributed pro rata among the stockholders of the
corporation.
(Source: Laws 1965, p. 577.)
(805 ILCS 35/24) (from Ch. 32, par. 1024)
Sec. 24. 
		
		Except as otherwise provided in Section 25, all domestic
corporations organized for the purpose of carrying on business within this
State and all foreign corporations qualified to do business in Illinois,
including, without implied limitation, any railroad or transportation
corporation, and all trusts, are authorized to acquire, purchase, hold,
sell, assign, transfer, mortgage, pledge or otherwise dispose of any bonds,
securities, or other evidences of indebtedness created by, or the shares of
the capital stock of any corporation established by this Act and, while
owners of the stock, to exercise all the rights, powers and privileges of
ownership, including the right to vote thereon.
(Source: Laws 1965, p. 577.)
(805 ILCS 35/25) (from Ch. 32, par. 1025)
Sec. 25. 
		
		A financial institution which does not become a member of a
corporation established by this Act shall not acquire any shares of the
capital stock of such corporation. This prohibition, however, shall not
apply to a financial institution when acting as trustee of a bona fide
trust.
(Source: Laws 1965, p. 577.)
(805 ILCS 35/26) (from Ch. 32, par. 1026)
Sec. 26. 
		
		Each financial institution which becomes a member of a corporation
organized under this Act is authorized to acquire, purchase, hold, sell,
assign, transfer, mortgage, pledge, or otherwise dispose of any bonds,
securities or other evidences of indebtedness issued by such corporation or
the shares of its capital stock and while owners of the stock to exercise
all the rights, powers and privileges of ownership, including the right to
vote thereon, all without the approval of any regulatory authority of this
State.
The amount of capital stock of such corporation which any member is
authorized to acquire pursuant to the authority granted herein shall be in
addition to the amount of capital stock in corporations which such member
may otherwise be authorized to acquire, provided, however, that no
financial institution shall become a shareholder of more than one
development credit corporation.
(Source: P.A. 82-933.)
(805 ILCS 35/27) (from Ch. 32, par. 1027)
Sec. 27. 
		
		(1) Every person appointed or elected to any position requiring
the receipt, payment, management or use of money belonging to a Development
Credit Corporation or whose duties permit him to have access to or custody
of any of its money or securities or whose duties permit him regularly to
make entries in the books or other records of a Development Credit
Corporation, before assuming his duties shall become bonded in some
fidelity insurance company licensed to do business in this State. Each bond
shall be on a form or forms as the Director shall require and in such
amount as the board of directors shall fix and approve.
(2) Nothing contained herein shall preclude the Director from proceeding
against a Development Credit Corporation as provided in this Act should he
believe that it is being conducted in an unsafe manner in that the form or
amount of bonds so fixed and approved by the board of directors is
inadequate to give reasonable protection to the Development Credit
Corporation.
(Source: Laws 1965, p. 577.)
(805 ILCS 35/28) (from Ch. 32, par. 1028)
Sec. 28. 
		
		(1) The Director may forthwith direct the suspension of operation
and take possession and control of any Development Credit Corporation
whenever he or she finds that such Development Credit Corporation:
(a) is conducting its business contrary to any applicable law or its
Article of Incorporation; or
(b) is conducting its business in an unsafe manner as a result of
irregularities found or reported in its account; or
(c) has failed to give an adequate accounting or to take the necessary
steps to render an accounting; or
(d) has failed or refused to furnish the Director with reports lawfully
required to be furnished to the Director; or
(e) cannot with safety to its members and shareholders continue its
business expediently; or
(f) is insolvent or in an unsafe condition to transact its business; or
(g) has suspended payment of its obligations; or
(h) has impaired its capital; or
(i) has through its officers refused to submit its books, papers or
records of affairs for inspection by any examiner or has otherwise refused
to be lawfully examined.
(2) Such suspension, possession and control by the Director shall
continue until rescinded and terminated by the Director, however, such
suspension, possession and control shall be rescinded and terminated once
the cause for such suspension, possession and control has abated or has
been corrected.
(3) Upon the suspension of operation of any Development Credit
Corporation by the Director, the officers and directors shall, as soon
thereafter as reasonably possible, deliver possession of all of the assets
of such Development Credit Corporation to the Director or the Director's lawful
representative. Thereafter the Director shall, upon examination, reasonably
determine whether or not the cause for the suspension can be abated or
corrected either by re-organization or otherwise without liquidating such
Development Credit Corporation.
(4) If the Director reasonably determines that the cause for any such
suspension cannot immediately be abated or corrected, he or she may permit the
Development Credit Corporation so suspended to operate under his or her direction
and control until such cause for such suspension is abated or corrected, or
he or she may cause the Development Credit Corporation to be liquidated through a
receivership. If the Director determines that the same shall be liquidated
through receivership, he or she shall appoint a receiver and require of him such
bond and security as he or she deems proper. Such receiver, under the direction of
the Director, shall take possession of, and for the purpose of the
receivership, title to the books, records and assets of every description
of such Development Credit Corporation, and shall proceed to collect all
debts, claims and obligations due or belonging to it and, upon the order of
the circuit court of the county in which the Development Credit Corporation is
located, may sell or compound all bad or doubtful debts and, on a like
order, may sell the real and personal property of such Development Credit
Corporation on such terms as the court shall direct.
(5) The receiver shall file with the Director a copy of each report
which he or she makes to the court together with such other reports and records as
the Director may require.
(6) The receiver shall have authority to sue and defend in his or her own name
with respect to the affairs, assets, claims, debts, and choses in action of
such Development Credit Corporation.
(7) The receiver may petition the Circuit Court of the County in which
such Development Credit Corporation is located for
authority to borrow money and to pledge the assets of such Development
Credit Corporation as security therefor. Upon the filing of such petition,
such Court shall set a date for the hearing of such petition and
shall prescribe the form and manner of the notice to be given the officers,
members, creditors or other persons interested in such Development Credit
Corporation. Upon such hearing any officer, member, creditor or person
interested shall have the right to be heard. If the court by order grants
such authority then such receiver may borrow money and issue evidences of
indebtedness therefor and may secure the payment of such loan by the
mortgage, pledge, transfer in trust or hypothecation of any or all of the
property and assets of such Development Credit Corporation whether real,
personal or mixed, superior to any charge thereon for the expenses of
liquidation. Such loan may be obtained in such amount upon such terms and
conditions and with such provisions for repayment as may be deemed
necessary and expedient and may be obtained for the purpose of facilitating
liquidation, protecting or preserving the assets, expediting the making of
distribution to members and other creditors, providing for the expense of
administration and liquidation, aiding in the reopening or reorganization
of such Development Credit Corporation or its merger or consolidation with
another Development Credit Corporation, or in the sale of its assets. Such
receiver shall be under no personal obligation to repay any such loan and
shall have authority to take any and all action necessary or proper to
consummate such loan and to provide for the repayment thereof, and may,
when required, give bond for the faithful performance of all undertakings
in connection therewith. Prior to petitioning the court for authority to
make any such loan, such receiver may make application for or negotiate any
such loan subject to obtaining an order of the court approving the same.
(8) The Director shall, upon appointing a receiver, cause notice to be
given by advertisement in such newspaper as he or she may direct, once each week
for 12 consecutive weeks, calling on all persons who may have claims
against such Development Credit Corporation to present the same to such
receiver and to make legal proof thereof.
(9) Such receiver shall deposit daily all moneys collected by him or her in any
State or National bank selected by the Director who shall require of such
depository satisfactory securities or satisfactory surety bond for the
safekeeping and prompt payment of the money so deposited. No interest upon
money so deposited shall be required of such depository.
(10) From time to time the Director shall make a ratable dividend of the
moneys collected by such receiver on all such claims as may have been
proved to his or her satisfaction or adjudicated in a court of competent
jurisdiction, and, as the proceeds of the assets of such Development Credit
Corporation are collected, shall make further dividends on all claims
previously proven or adjudicated.
(11) The receiver of such Development Credit Corporation shall, after
the expiration of the 12 weeks, file with the Director and with the clerk
of such court as may have charge of the liquidation, a correct list of all
creditors of the Development Credit Corporation, as shown by its books, who
have not presented their claims and the amounts of their respective claims
after allowing all just credits, deductions and set-offs as shown by the
books of the Development Credit Corporation. Such claims so filed shall be
deemed proven, unless objections are filed thereto by some party or parties
interested therein within such times as shall be fixed by the Director or
by such Court as may have charge of the liquidation.
(12) All unclaimed dividends shall be deposited with the Director to be
paid out by him or her when proper claims therefor are presented to the Director
and the Director shall pay the same out of such sum or funds so deposited
with him or her. After one year from the final dissolution of the Development
Credit Corporation, the Director shall make a pro rata distribution thereof
to those claimants who have accepted dividends until such claim or claims
are paid in full, and if any of the moneys shall then remain in his or
her custody,
the Director shall distribute the same pro rata to the shareholders. The
Director shall deduct from the funds so deposited with him the expenses of
distributing the same.
(13) At the close of the receivership, it shall be the duty of the
receiver to turn over to the Director all books of account and ledgers of
such Development Credit Corporation for preservation. All records of such
receivership now and hereafter received by the Director shall be held by
him for the period of 2 years after the close of the receivership and at
the termination of the 2 years may then be destroyed.
(14) Whenever any such development Credit Corporation against which
proceedings have been instituted, or for which a receiver has been
appointed as hereinabove set out, on account of any or
all the allegations heretofore
specified, denies such grounds, it may at any time within 10 days, apply to
the Circuit Court of Sangamon County, Illinois, to enjoin further
proceedings in the premises; and such court after citing the Director to
show cause why further proceedings should not be enjoined, and after the
decision of the court or findings of a jury that such grounds do not exist,
shall enter an order enjoining the Director and any receiver acting under
his or her direction, from all further proceedings on account of such alleged
grounds.
(15) All expenses of such receivership, including reasonable receiver's
and attorney's fees, approved by the Director, shall be paid
out of the assets of such Development Credit Corporation; and all expenses
of any preliminary or other examinations into the condition of any such
Development Credit Corporation or receivership, and all expenses incident
and in connection with the possession and control of any Development Credit
Corporation office, furniture and fixtures, books, records and assets of
every description of such Development Credit Corporation by the Director
for the purpose of reorganization or liquidation through receivership,
shall be paid out of the assets of such Development Credit Corporation.
(Source: P.A. 83-345.)