Illinois Compiled Statutes
20 ILCS 3501/ - Illinois Finance Authority Act.
Article 805 - Industrial Revenue Bond Insurance Fund

(20 ILCS 3501/Art. 805 heading)

(20 ILCS 3501/805-5)
Sec. 805-5. Findings and declaration of policy. It is hereby found and
declared that a continuing need exists to maintain and develop the State's
economy; that there are significant barriers in the capital markets inhibiting
the issuance by the Authority of industrial revenue bonds, loans, and State Guarantees to assist in
financing
industrial projects, PACE Projects, farmers, and agribusiness in the State, particularly for smaller firms; and that the
establishment of the Industrial Revenue Bond Insurance Fund and the exercise by
the Authority of the powers granted in
this Article will promote
economic development by widening the market for the Authority's revenue bonds, loans, PACE Projects, and State Guarantees.

(Source: P.A. 100-919, eff. 8-17-18.)

(20 ILCS 3501/805-10)
Sec. 805-10.
Definitions.
The following terms, whenever used or referred
to in this Article, shall have the following meanings ascribed to them, except
where the context clearly requires otherwise:
(a) "Financial Institution" means a financial institution which is a trust
company, a bank, a savings bank, a credit union, an investment bank, a broker,
an investment trust, a pension fund, a building and loan association, a savings
and loan association, an insurance company, or any other institution acceptable
to the Authority, authorized to do business in the State and approved by the
Authority to insure bonds or loans for industrial projects authorized by this
Act.
(b) "Participating lender" means any trust company, bank, savings bank,
credit
union, investment bank, broker, investment trust, pension fund, building and
loan association, savings and loan association, insurance company or other
institution approved by the Authority which assumes a portion of the risk on a
loan for an industrial project as provided in
Section 805-30 of this Act.

(Source: P.A. 93-205, eff. 1-1-04.)

(20 ILCS 3501/805-15)
Sec. 805-15. Industrial Project Insurance Fund. There is created the
Industrial Project Insurance Fund, hereafter referred to in
Sections 805-15
through 805-50 of this Act as the "Fund". The Treasurer shall have custody of
the
Fund, which shall be held outside of the State treasury, except that custody
may
be transferred to and held by any bank, trust company or other fiduciary with
whom the Authority executes a trust agreement as authorized by paragraph (h) of
Section 805-20 of this Act. Any portion of the Fund against which a charge has
been made, shall be held for the benefit of the holders of the loans or bonds
insured under
Section 805-20 of this Act or the holders of State Guarantees under Article 830 of this Act.
There shall be deposited in the Fund such amounts, including but not limited
to:
(Source: P.A. 100-919, eff. 8-17-18; 101-81, eff. 7-12-19.)

(20 ILCS 3501/805-20)
Sec. 805-20. Powers and Duties; Industrial Project Insurance Program. The
Authority has the power:

(20 ILCS 3501/805-25)
Sec. 805-25.
Insurance Contracts; Claim Responsibility.
Any contract of
insurance made by the Authority with a lender or bondholder or for the benefit
thereof under this Act shall provide that claims payable under such contract
shall be paid from any amounts available in the Fund and from any amounts
available under the terms of any applicable contract or agreement with other
financial institutions, in such order of priority as the Authority shall deem
appropriate. The obligation of the Authority to make payments under any such
contract shall be limited solely to the amounts provided in such contract and
shall not constitute a debt or liability of the State, the Authority or any
subdivision thereof.
Any insurance contract or other agreement with a lender or bondholder or for
the benefit thereof and any rule or regulation of the Authority implementing
the
insurance program may contain such other terms, provisions or conditions as the
Authority deems necessary or appropriate, including, without limitation, those
relating to the payment of insurance premiums, the giving of notice, claim
procedures, the sources of payment for claims, the priority of competing claims
for payment, the release or termination of loan security and borrower
liability, the timing of payment, the maintenance and disposition of industrial
projects
and the use of amounts received during periods of delinquency or upon default,
and any other provisions concerning the rights of insured parties or conditions
to the payment of insurance claims.

(Source: P.A. 93-205, eff. 1-1-04.)

(20 ILCS 3501/805-30)
Sec. 805-30.

Applications for Insured Industrial Project Loans;
Procedures.
Applications received by the Authority shall be forwarded to a credit review
committee consisting of 3 persons experienced in industrial financing selected
by the Authority for a review and report concerning the advisability of
approving the proposed insurance. The review and report shall include facts
about the company's history, job opportunities, stability of employment,
financial condition and structure, income statements, market prospects and
management, and any other facts material to the insurance request. The report
shall include a reasoned opinion as to whether providing the insurance would
tend to fulfill the purposes of the Authority and the insurance program. The
report shall be advisory in nature only. Payment shall be made to the members
of the committee selected by the Authority on a reasonable consultant basis, as
the Authority may determine. The credit review committee shall be of such
composition, act for such time and have such powers as shall be specified in
the
agreement or agreements establishing its existence and, to the extent so
specified, shall act for the Authority in matters concerning the insurance
program authorized by
Sections 805-5 through 805-45 of this Act.
The Authority shall, on the basis of the application, the report of the credit
review committee, the information provided by the local or regional industrial
development agency, and any other appropriate information, prepare a report
concerning the creditworthiness of the proposed borrower, the loan record of
the participating lender, the financial commitment of the participating lender,
the manner in which the proposed industrial project will advance the economy of
the State and the soundness of the proposed loan.
The Fund, or any portion thereof against which a charge has been made, shall be
held for the benefit of the holders of the bonds or loans insured under
Section
805-20 of this Act, as provided by agreement between the Authority and such
holders.
The Authority shall be satisfied that the Fund is protected by adequate
security
on all bonds or loans insured by the Authority.

(Source: P.A. 93-205, eff. 1-1-04.)

(20 ILCS 3501/805-35)
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.)

(20 ILCS 3501/805-40)
Sec. 805-40.
Investments in Insured Debts of the Authority.
The State and
all
counties, municipalities and other public corporations, political subdivisions
and public bodies, and public officers of any thereof, all banks, bankers,
trust
companies, savings banks and institutions, building and loan associations,
savings and loan associations, investment companies and other persons carrying
on a banking business, all insurance companies, insurance associations and
other
persons carrying on an insurance business and all executors, administrators,
guardians, trustees and other fiduciaries may legally invest any sinking funds,
moneys or other funds belonging to them or within their control in any bonds,
loans or extension of credit which are the subject of insurance pursuant to
this Article, it being the purpose of this
Section to
authorize the investment of such bonds, loans or extension of credit of all
sinking, insurance, retirement, compensation, pension and trust funds, whether
owned or controlled by private or public persons or officers; provided,
however,
that nothing contained in this
Section may be construed as relieving any persons
from any duty of exercising reasonable care in selecting securities for
purchase
or investment.
The bonds and any loan or extension of credit which are the subject of
insurance
pursuant to
this Article are also hereby made securities which may
properly and legally be deposited with and received by all public officers and
bodies of the State or any agency or political subdivisions thereof and all
municipalities and public corporations for any purpose for which the deposit of
bonds is now or may hereafter be authorized by law.

(Source: P.A. 93-205, eff. 1-1-04.)

(20 ILCS 3501/805-45)
Sec. 805-45.
Cooperation with Local Industrial Development Agencies.
When
the
Authority receives an application from a potential insured loan borrower, it
shall promptly notify the local industrial development agency of that fact in
writing if such an agency exists in the municipality or county where such
industrial project is proposed to be financed; or the corporate authorities in
such municipality where no such agency exists. The Authority shall provide the
local industrial development agency with any available information that the
agency needs to prepare a recommendation concerning the advisability of the
industrial project and its impact, economic and otherwise, on the community and
the State. Such application shall include a written authorization by the
applicant that such notification and information be made available to such
agency or municipality to the extent that such information is not deemed to be
confidential under
Section 805-50 of this Act. The Authority shall not consider
any application that does not include such written authorization.
The Authority shall encourage financial participation by local industrial
development agencies by giving priority consideration to insured loan
applicants
from areas serviced by those agencies that have demonstrated a commitment to
economic development.

(Source: P.A. 93-205, eff. 1-1-04.)

(20 ILCS 3501/805-50)
Sec. 805-50.

Documentary material concerning trade secrets; Commercial or
financial information; Confidentiality. Any documentary materials or data made
or received by any member, agent, or employee of the Authority or the credit
review committees, to the extent that such materials or data consist of trade
secrets, commercial or financial information regarding the operation of any
enterprise conducted by an applicant for, or recipient of, any form of
assistance which the Authority is empowered to render under
this Article, or regarding the competitive position of such enterprise in a
particular field of endeavor, shall not be deemed public records.

(Source: P.A. 93-205, eff. 1-1-04.)