2023 Illinois Compiled Statutes › Chapter 20 - EXECUTIVE BRANCH › 20 ILCS 3820/ - Illinois Investment and Development Authority Act.

(20 ILCS 3820/1)
Sec. 1. 
		Short title. 
		This Act may be cited as the Illinois
Investment and Development Authority Act.
(Source: P.A. 92-864, eff. 6-1-03.)
(20 ILCS 3820/5)
Sec. 5. 
		Purpose. 
		The purpose of this Act is to create a State
entity to support the creation and growth of community development
financial institutions, which provide access to capital for business
development, capital investments, and other financing to expand private
sector activities in economically disadvantaged communities and for low
income people, by providing grants, loans, and technical assistance to
CDFIs.  Assistance by this entity would (i) expand financial services and
capital access in economically disadvantaged communities, (ii) provide
support for the creation of new small businesses and new jobs in
economically disadvantaged communities, (iii) create opportunities for
banks to get a federal incentive for investments in a CDFI, (iv) increase
this State's share of the money distributed annually by the federal
Community Development Financial Institutions Fund, and (v) create a
new partnership between the State, banks and thrifts, and CDFIs.
(Source: P.A. 92-864, eff. 6-1-03.)
(20 ILCS 3820/10)
Sec. 10. 
		Definitions. 
		In this Act:
"Authority" means the Illinois Investment and Development
Authority.
"Community development financial institution" or "CDFI" means
an Illinois community development financial institution certified in
accordance with the federal Community Development Banking and
Financial Institutions Act of 1994 (Public Law 103-325) and accredited by the
Authority under Section 50 of this Act.
(Source: P.A. 92-864, eff. 6-1-03.)
(20 ILCS 3820/15)
Sec. 15. Creation of Illinois Investment and Development Authority;
members.
(a) There is created a political subdivision, body politic and
corporate, to be known as the Illinois Investment and
Development Authority.  The exercise by the Authority of the powers
conferred by law shall be an essential public function.  The governing
powers of the Authority shall be vested in a body consisting of 11
members, including, as ex officio members, the Commissioner of Banks
and Real Estate and the Director of Commerce and Economic Opportunity or
their designees.  The other 9 members of the Authority shall be
appointed by the Governor, with the advice and consent of the Senate,
and shall be designated "public members".  The public members shall
include representatives from banks and other private financial services
industries, community development finance experts, small business
development experts, and other community leaders.  Not more than 6
members of the Authority may be of the same political party.  The
Chairperson of the Authority shall be designated by the Governor from
among its public members.
(b) Six members of the Authority shall constitute a quorum.
However, when a quorum of members of the Authority is physically
present at the meeting site, other Authority members may participate in
and act at any meeting through the use of a conference telephone or
other communications equipment by means of which all persons
participating in the meeting can hear each other.  Participation in such
meeting shall constitute attendance and presence in person at the
meeting of the person or persons so participating.
 All
official acts of the Authority shall require the approval of at least 5
members.
(c) Of the members initially appointed by the Governor pursuant
to this Act, 3 shall serve until the third Monday in January, 2004, 3 shall
serve until the third Monday in January, 2005, and 3 shall serve until
the third Monday in January, 2006 and all shall serve until their successors
are
appointed and qualified.  All successors shall hold office for a term of 3
years commencing on the third Monday in January of the year in which
their term commences, except in case of an appointment to fill a vacancy.
Each member appointed under this Section who is confirmed by the
Senate shall hold office during the specified term and until his or her
successor is appointed and qualified.  In case of vacancy in the office
when the Senate is not in session, the Governor may make a temporary
appointment until the next meeting of the Senate, when the Governor
shall nominate such person to fill the office, and any person so
nominated who is confirmed by the Senate, shall hold his or her office
during the remainder of the term and until his or her successor is
appointed and qualified.
(d) Members of the Authority shall not be entitled to compensation
for their services as members, but shall be entitled to reimbursement for
all necessary expenses incurred in connection with the performance of
their duties as members.
(e) The Governor may remove any public member of the Authority
in case of incompetency, neglect of duty, or malfeasance in office, after
service on the member of a copy of the written charges against him or her
and an opportunity to be publicly heard in person or by counsel in his
or her own defense upon not less than 10 days notice.
(Source: P.A. 94-793, eff. 5-19-06.)
(20 ILCS 3820/20)
Sec. 20. 
		Executive Director; other employees. 
		The members of
the Authority shall appoint an Executive Director to hold office at the
pleasure of the members.  The Executive Director shall be the chief
administrative and operational officer of the Authority, shall direct
and supervise its administrative affairs and general management and
perform such other duties as may be prescribed from time to time by the
members, and shall receive compensation fixed by the Authority.  The
Executive Director or any committee of the members may carry out such
responsibilities of the members as the members by resolution may
delegate.  The Executive Director shall attend all meetings of the
Authority; however, no action of the Authority shall be invalid on account
of the absence of the Executive Director from a meeting.
The Authority may engage the services of such other agents and
employees, including legal and technical experts and other consultants,
as it may deem advisable and may prescribe these persons' duties and fix their
compensation.
(Source: P.A. 92-864, eff. 6-1-03.)
(20 ILCS 3820/25)
Sec. 25. 
		Powers of Authority.
(a) The Authority possesses all the powers as a body corporate
necessary and convenient to accomplish the purposes of this Act,
including, without any intended limitation upon the general powers
hereby conferred, all of the following:
(1) To enter into loans, contracts, and agreements in     any matter connected with any of its corporate purposes and to invest its funds.
(2) To sue and be sued.
(3) To employ those agents, employees, and     independent contractors necessary to carry out its purposes, and to fix their compensation, their benefits, and the terms and conditions of their employment.
(4) To have and use a common seal and to alter the     seal at pleasure.
(5) To adopt all needful resolutions, by-laws, and     rules for the conduct of its business and affairs.
(6) To have and exercise all powers and be subject to     all duties usually incident to boards of directors of corporations.
(b) The Authority shall not have the power to levy taxes for any
purpose whatsoever.
(Source: P.A. 92-864, eff. 6-1-03.)
(20 ILCS 3820/30)
Sec. 30. 
		Office. 
		The Authority may maintain an office or
branch office anywhere in this State and may utilize, without the
payment of rent, any office facilities that the State may conveniently
make available to the Authority.
(Source: P.A. 92-864, eff. 6-1-03.)
(20 ILCS 3820/35)
Sec. 35. 
		Secretary; treasurer; funds.
(a) The Authority shall appoint a secretary and treasurer, who may
be a member or members of the Authority, to hold office at the pleasure
of the Authority.  Before entering upon the duties of the respective
offices, the person or persons shall take and subscribe to the
constitutional oath of office, and the treasurer shall execute a bond with
corporate sureties to be approved by the Authority. The bond shall be
payable to the Authority in whatever penal sum may be directed by the
Authority, conditioned upon the faithful performance of the duties of the
office and the payment of all money received by him or her according to
law and the orders of the Authority.  The Authority may, at any time,
require a new bond from the treasurer in such penal sum as may then be
determined by the Authority.  The obligation of the sureties shall not
extend to any loss sustained by the insolvency, failure, or closing of any
savings and loan association or national or state bank wherein the
treasurer has deposited funds if the bank or savings and loan association
has been approved by the Authority as a depository for these funds.  The
oaths of office and the treasurer's bond shall be filed in the principal
office of the Authority.
(b) All funds of the Authority, including without limitation (i) grants
or loans from the federal government, the State, or any agency or
instrumentality of the State or federal government, (ii) fees, service charges,
interest, or other
investment earnings on its funds, (iii) payments of principal of and interest
on loans of its funds, and (iv) revenue from any other source, except funds
the application of which is otherwise specifically provided for by
appropriation, resolution, grant agreement, lease agreement, loan
agreement, indenture, mortgage, trust agreement, or other agreement,
may be held by the Authority in its treasury and be generally available
for expenditure by the Authority for any of the purposes authorized by
this Act.
(c) In addition to investments authorized by Section 2 of the Public
Funds Investment Act, funds of the Authority may be invested in (i)
obligations issued by any state, unit of local government, or school
district, which obligations are rated at the time of purchase by a national
rating service within the 2 highest rating classifications without regard to
any rating refinement or gradation by numerical or other modifier, or (ii)
equity securities of an investment company registered under the federal
Investment Company Act of 1940 whose sole assets, other than cash
and other temporary investments, are obligations that are eligible
investments for the Authority, provided that not more than 20% of the
assets of the investment company may consist of unrated obligations of
the type described in clause (i) of this subsection (c) that the board of
directors of the investment company has determined to be of comparable
quality to rated obligations described in clause (i) of this subsection (c).
(d) Moneys appropriated by the General Assembly to the Authority
shall be held in the State treasury unless the Act making the
appropriation specifically states that the moneys are appropriated to the
Authority's treasury.  Such funds as are authorized to be held in the
Authority's treasury, deposited in any bank or savings and loan
association, and placed in the name of the Authority shall be withdrawn
or paid out only by check or draft upon the bank or savings and loan
association, signed by the treasurer and countersigned by the
Chairperson of the Authority.  The Authority may designate any of its
members or any officer or employee of the Authority to affix the signature
of the Chairperson and may designate another to affix the signature of the
treasurer to
any check or draft for payment of salaries or wages and for payment of
any other obligations of not more than $2,500.  In case any person whose
signature appears upon any check or draft, issued pursuant to this Act,
ceases to hold his or her office before the delivery of the check or draft to
the payee,
the signature nevertheless shall be valid and sufficient for all
purposes with the same effect as if the person had remained in office until
delivery of the check or draft.  A bank or savings and loan association may not
receive
public funds as permitted by this Section unless it has complied with
the requirements established pursuant to Section 6 of the Public Funds
Investment Act.
(Source: P.A. 92-864, eff. 6-1-03.)
(20 ILCS 3820/40)
Sec. 40. 
		Conflict of interest.
(a) No member, officer, agent, or employee of the Authority shall,
in his or her own name or in the name of a nominee, be an officer or
director or hold an ownership interest of more than 7.5% in any person,
association, trust, corporation, partnership, or other entity that is, in its
own name or in the name of a nominee, a party to a contract or
agreement upon which the member, officer, agent, or employee may be
called upon to act or vote.  The prohibition of this subsection (a) does not
apply, however, to prohibit contracts or agreements between the
Authority and entities qualified under Section 501 of the Internal
Revenue Code of 1986 due to a member of the Authority serving as an
officer or director of that entity.
(b) With respect to any direct or indirect interest, other than
an interest prohibited in subsection (a) of this Section, in a contract or
agreement upon which the member, officer, agent, or employee may be
called upon to act or vote, a member, officer, agent, or employee of the
Authority shall disclose the interest to the secretary of the Authority
before the taking of final action by the Authority concerning the contract
or agreement and shall so disclose the nature and extent of the interest
and his or her acquisition of it, and those disclosures shall be publicly
acknowledged by the Authority and entered upon the minutes of the
Authority.  If a member, officer, agent, or employee of the Authority holds
such an interest, then he or she shall refrain (i) from any further official
involvement in regard to the contract or agreement, (ii) from voting on any
matter pertaining to the contract or agreement, and (iii) from communicating
with members of the Authority or its officers, agents, and employees
concerning the contract or agreement.  Notwithstanding any other
provision of law, any contract or agreement entered into in conformity
with this subsection (b) shall not be void or invalid by reason of the
interest described in this subsection (b), nor shall any person so
disclosing the interest and refraining from further official involvement as
provided in this subsection (b) be guilty of an offense, be removed from
office, or be subject to any other penalty on account of that interest.
(c) Any contract or agreement made in violation of subsection (a)
or (b) of this Section shall be null and void, but shall not give rise to any
action against the Authority.
(Source: P.A. 92-864, eff. 6-1-03.)
(20 ILCS 3820/45)
Sec. 45. 
		Audit; fiscal year; report. 
		The accounts and books of
the Authority, including its receipts, disbursements, contracts, and other
matters relating to its finances, operation, and affairs shall be examined
and audited at least once within each 2-year period by a firm of certified
public accountants, who shall certify its audit to the State Comptroller.
The fiscal year for the Authority shall commence on July 1.  As
soon after the end of each fiscal year as may be expedient, the Authority
shall cause to be prepared and printed a complete report and financial
statement of its operations and of its assets and liabilities.  A reasonably
sufficient number of copies of this report shall be printed for
distribution to persons interested, upon request, and a copy of the report
shall
be filed with the Governor, the Secretary of State, the State Comptroller,
the Secretary of the Senate, and the Clerk of the House of
Representatives.
(Source: P.A. 92-864, eff. 6-1-03.)
(20 ILCS 3820/50)
Sec. 50. 
		Accreditation.
(a) A CDFI must be accredited by the Authority in order to receive
assistance from the Authority, unless otherwise specified in this Act.
The Authority may revoke accreditation from a CDFI that no longer
meets the Authority's accreditation criteria.  Accreditation of a CDFI
under this Act does not, in and of itself, qualify the CDFI to
participate in a financing program administered by the Authority.
(b) Authority criteria for accreditation must include certification
under the federal Community Development Banking and Financial
Institutions Act of 1994 (Public Law 103-325) and any other criteria that
the Authority deems appropriate.
(c) The Authority shall accredit CDFIs in a manner to
ensure the use of CDFIs in all geographic regions of this State to the
greatest extent possible.
(Source: P.A. 92-864, eff. 6-1-03.)
(20 ILCS 3820/55)
Sec. 55. 
		Authority's responsibilities.
(a) The Authority shall make grants and low-rate loans to CDFIs
so that CDFIs may fill a credit gap by engaging in below market rate
financing in economically disadvantaged communities and to low income
people.
 As part of a grant or loan agreement, a CDFI may request and the Authority may
consent to having the grant or loan proceeds paid directly to a CDFI's
creditor.  As part of a loan agreement, the Authority may require additional
security from the CDFI, including without limitation a pledge of a certain
percentage of the
CDFI's assets or future earnings.
(b) The Authority shall provide technical assistance to
CDFIs to (i) expand the financial services the CDFI sector
offers, such as micro-business lending, facilities financing, low income
housing financing, and personal financial services for low income
persons, (ii) encourage the establishment of downstate CDFIs, and (iii)
provide technical assistance and training to CDFIs' borrowers.
(Source: P.A. 92-864, eff. 6-1-03.)
(20 ILCS 3820/60)
Sec. 60. 
		Authority grants. 
		The Authority may issue grants to
CDFIs or to nonprofit organizations that are attempting to obtain federal
certification or Authority accreditation as a CDFI.
The Authority may
issue, in a manner consistent with subsection (c) of Section 50 of this
Act, grants for the purpose of developing or enhancing the ability of the
CDFI or nonprofit organization to be accredited as a CDFI under Section
50 of this Act and to receive loans from the Authority under Section 65 of
this Act.  The Authority may also issue grants or loans to nonprofit
organizations that have entered into a written contract with a CDFI or a
nonprofit organization receiving grants from the Authority to obtain
federal certification or Authority accreditation as a CDFI.
In areas of this State where no CDFI exists and no nonprofit
organization is working to obtain certification or accreditation as a
CDFI, the Authority may issue grants to a nonprofit organization deemed
by the Authority to be performing activities consistent with the goals of
the federal Community Development Banking and Financial Institutions
Act of 1994 (Public Law 103-325).  The grants shall be used by the
nonprofit organization to provide technical assistance, training, or other
support to small businesses or other for-profit or  not-for-profit
organizations.
(Source: P.A. 92-864, eff. 6-1-03.)
(20 ILCS 3820/65)
Sec. 65. 
		Authority loans. 
		The Authority may make loans to
CDFIs, from moneys appropriated for this purpose, on such terms and
conditions as the Authority may determine.  Loans shall be made and
used in a manner consistent with the requirements of the federal
Community Development Banking and Financial Institutions Act of 1994 (Public
Law 103-325).  Loans to CDFIs may be
made by the Authority as the sole lender or in cooperation with
participating investors pursuant to agreements entered into in
accordance with this Act.  Loan repayments shall be used by the
Authority to make new loans to CDFIs.
(Source: P.A. 92-864, eff. 6-1-03.)
(20 ILCS 3820/70)
Sec. 70. 
		Community development loans.
(a) CDFIs that receive loans from the Authority under Section 65
of this Act shall make and use community development loans pursuant
to guidelines established by the Authority and in a manner consistent
with the federal Community Development Banking and Financial
Institutions Act of 1994 (Public Law 103-325).  The guidelines shall
include criteria for the approval of a portfolio of loans submitted by
CDFIs.
(b) In connection with community development loans under this
Section, the recipient of a loan must provide certification to the Authority
that the recipient does not have any outstanding debts in the
form of delinquent real estate taxes or utility bills that are
more than one year outstanding.
(Source: P.A. 92-864, eff. 6-1-03.)
(20 ILCS 3820/75)
Sec. 75. 
		Report to General Assembly. 
		Within 90 days after the
end of each fiscal year, the Authority shall prepare a report for
that fiscal year and file it with the General Assembly as provided in Section
3.1 of the General Assembly Organization Act.  The report shall include the
amount of funds
appropriated to the Authority that were deposited by the Authority in
special accounts in banks or trust companies, the amount of
disbursements made from the special accounts, the number, name, and
location of CDFIs accredited by the Authority, and the number and
amount of grants to CDFIs or nonprofit organizations.
(Source: P.A. 92-864, eff. 6-1-03.)