Illinois Compiled Statutes
20 ILCS 3501/ - Illinois Finance Authority Act.
Article 840 - Health Facilities Development

(20 ILCS 3501/Art. 840 heading)

(20 ILCS 3501/840-5)
Sec. 840-5. The Authority shall have the following powers:
(a) To fix and revise from time to time and charge and collect rates, rents,
fees and charges for the use of and for the services furnished or to be
furnished by a project or other health facilities owned, financed or refinanced
by the Authority or any portion thereof and to contract with any person,
partnership, association or corporation or other body, public or private, in
respect thereto; to coordinate its policies and procedures and cooperate with
recognized health facility rate setting mechanisms which may now or hereafter
be established.
(b) To establish rules and regulations for the use of a project or other
health
facilities owned, financed or refinanced by the Authority or any portion
thereof
and to designate a participating health institution as its agent to establish
rules and regulations for the use of a project or other health facilities owned
by the Authority undertaken for that participating health institution.
(c) To establish or contract with others to carry out on its behalf a health
facility project cost estimating service and to make this service available on
all projects to provide expert cost estimates and guidance to the participating
health institution and to the Authority. In order to implement this service
and, through it, to contribute to cost containment, the Authority shall have
the power to require such reasonable reports and documents from health facility
projects as may be required for this service and for the development of cost
reports and guidelines. The Authority may appoint a Technical Committee on
Health Facility Project Costs and Cost Containment.
(d) To make mortgage or other secured or unsecured loans to or for the
benefit
of any participating health institution for the cost of a project in accordance
with an agreement between the Authority and the participating health
institution; provided that no such loan shall exceed the total cost of the
project as determined by the participating health institution and approved by
the Authority; provided further that such loans may be made to any entity
affiliated with a participating health institution if the proceeds of such loan
are made available to or applied for the benefit of such participating health
institution.
(e) To make mortgage or other secured or unsecured loans to or for the
benefit of a participating health institution in accordance with an agreement
between
the Authority and the participating health institution to refund outstanding
obligations, loans, indebtedness or advances issued, made, given or incurred by
such participating health institution for the cost of a project; including the
function to issue bonds and make loans to or for the benefit of a participating
health institution to refinance indebtedness incurred by such participating
health institution in projects undertaken and completed or for other health
facilities acquired prior to or after the enactment of this Act when the
Authority finds that such refinancing is in the public interest, and either
alleviates a financial hardship of such participating health institution, or is
in connection with other financing by the Authority for such participating
health institution or may be expected to result in a lessened cost of patient
care and a saving to third parties, including government, and to others who
must pay for care, or any combination thereof; provided further that such loans
may
be made to any entity affiliated with a participating health institution if the
proceeds of such loan are made available to or applied for the benefit of such
participating health institution.
(f) To mortgage all or any portion of a project or other health facilities
and the property on which any such project or other health facilities are
located
whether owned or thereafter acquired, and to assign or pledge mortgages, deeds
of trust, indentures of mortgage or trust or similar instruments, notes, and
other securities of participating health institutions to which or for the
benefit of which the Authority has made loans or of entities affiliated with
such institutions and the revenues therefrom, including payments or income from
any thereof owned or held by the Authority, for the benefit of the holders of
bonds issued to finance such project or health facilities or issued to refund
or refinance outstanding obligations, loans, indebtedness or advances of
participating health institutions as permitted by this Act.
(g) To lease to a participating health institution the project being
financed or refinanced or other health facilities conveyed to the Authority in
connection with such financing or refinancing, upon such terms and conditions
as the
Authority shall deem proper, and to charge and collect rents therefor and to
terminate any such lease upon the failure of the lessee to comply with any of
the obligations thereof; and to include in any such lease, if desired,
provisions that the lessee thereof shall have options to renew the lease for
such period or periods and at such rent as shall be determined by the Authority
or to purchase any or all of the health facilities or that upon payment of all
of the indebtedness incurred by the Authority for the financing of such project
or health facilities or for refunding outstanding obligations, loans,
indebtedness or advances of a participating health institution, then the
Authority may convey any or all of the project or such other health facilities
to the lessee or lessees thereof with or without consideration.
(h) To make studies of needed health facilities that could not sustain a
loan
were it made under this Act and to recommend remedial action to the General
Assembly; to do the same with regard to any laws or regulations that prevent
health facilities from benefiting from this Act.
(i) To assist the Department of Commerce and Economic Opportunity to
establish and implement a program to assist health facilities to identify and
arrange
financing for energy conservation projects in buildings and facilities owned or
leased by health facilities.
(j) To assist the Department of Human Services in establishing a low
interest
loan program to help child care centers and family day care homes serving
children of low income families under
Section 22.4 of the Children and Family
Services Act. The Authority, on or after the effective date of this amendatory Act of the 97th General Assembly, is authorized to convert existing agreements for financial aid in accordance with Section 840-5(j) to permanent capital to leverage additional private capital and establish a revolving loan fund for nonprofit corporations providing human services under contract to the State.
(k) To assist the Department of Public Health and nursing homes in undertaking nursing home conversion projects in accordance with the Older Adult Services Act.

(Source: P.A. 97-654, eff. 1-13-12.)

(20 ILCS 3501/840-10)
Sec. 840-10.

By means of this Act it is the intent of the General Assembly
to
provide a measure of assistance and alternative methods of financing to
participating health institutions to aid them in providing needed health
facilities that will assure admission and care of high quality to all who need
it and in dealing with the cash requirements of such facilities, whether
resulting from capital expenditures, operating expenditures, delays in the
receipt of payments for services or otherwise.

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

(20 ILCS 3501/840-15)
Sec. 840-15.

The Authority is authorized and empowered to acquire,
directly
or by and through a participating health institution as its agent, by purchase
solely from funds provided under the authority of this Act, or by gift or
legacy, such lands, structures, property, real or personal, rights,
rights-of-way, franchises, easements and other interests in lands, including
lands lying
under water and riparian rights, which are located within the State as it may
deem necessary or convenient for the construction or operation of a project,
upon such terms and at such prices as may be considered by it to be reasonable
and can be agreed upon between it and the owner thereof, and to take title
thereto in the name of the Authority or in the name of a participating health
institution as its agent.

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

(20 ILCS 3501/840-20)
Sec. 840-20.
It is the intent and purpose of this Act that the exercise by
the Authority of the powers granted to it shall be in all respects for the
benefit of the people of this State to assist them to provide needed health
facilities of the number, size, type, distribution, and operation that will
assure admission and care of high quality to all who need it. To this end, the
Authority is charged with the responsibility to identify and study all projects
which are determined by health planning agencies to be needed but which could
not sustain a loan were such to be made to it under this Act. The Authority
shall, following such study, formulate and recommend to the General Assembly,
such amendments to this and other Acts, and such other specific measures as
grants, loan guarantees, interest subsidies or other actions as may be provided
for by the State which actions would render the construction and operation of
such needed health facility feasible and in the public interest. Further, the
Authority may identify and study any laws or
regulations which it finds handicaps or bars a needed health facility from
participating in the benefits of this Act and may recommend to the General
Assembly such actions as will remedy such situation.

(Source: P.A. 97-789, eff. 7-13-12.)

(20 ILCS 3501/840-25)
Sec. 840-25.

The Authority shall fix, revise, charge and collect rents for
the use of each health facility owned by the Authority and contract with any
person, partnership, association or corporation, or other body, public or
private, in respect thereof. Each lease entered into by the Authority with a
participating health institution and each agreement, note, mortgage or other
instrument evidencing the obligations of a participating health institution to
the Authority shall provide that the rents or principal, interest and other
charges payable by or for the benefit of the participating health institution
or
the process of accounts receivable purchased by the Authority from the
participating health institution shall be sufficient at all times, (a) to pay
its share of the administrative costs and expenses of the Authority, (b) to pay
the cost of maintaining, repairing and operating the project and other related
health facilities and each and every portion thereof, (c) to pay the principal
of, the premium, if any, and the interest on outstanding bonds of the Authority
issued in respect of such project as the same shall become due and payable, and
(d) to create and maintain reserves which may but need not be required or
provided for in the bond resolution relating to such bonds of the Authority.
The Authority shall pledge the revenues derived and to be derived from a
project
or other related health facilities or from a participating health institution
or
an affiliate thereof for the purposes specified in (a), (b), (c) and (d) of the
preceding sentence and additional bonds may be issued which may rank on a
parity
with other bonds relating to the project to the extent and on the terms and
conditions provided in the bond resolution. Such pledge shall be valid and
binding from the time when the pledge is made; the revenues so pledged by the
Authority shall immediately be subject to the lien of such pledge without any
physical delivery thereof or further act and the lien of any such pledge shall
be valid and binding as against all parties having claims of any kind in tort,
contract or otherwise against the Authority, irrespective of whether such
parties have notice thereof. Neither the bond resolution nor any financing
statement, continuation statement or other instrument by which a pledge is
created or by which the Authority's interest in revenues is assigned need be
filed or recorded in any public records in order to perfect the lien thereof as
against third parties except that a copy of the bond resolution shall be filed
in the records of the Authority and with the Secretary of State.

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

(20 ILCS 3501/840-30)
Sec. 840-30.

It is intended that all private health facilities in this
State
be enabled to benefit from and participate in the provisions of this Act. To
this end, all private health facilities operating, or authorized to be
operated,
under any statute of this State are authorized and empowered to undertake
projects, as defined in this Act, and to utilize the financing sources and
methods of repayment provided by this Act, the provisions of any other laws to
the contrary notwithstanding.
Notwithstanding the provisions of any other law to the contrary, the State of
Illinois and any political subdivision, agency, instrumentality, district or
municipality thereof owning or operating any health facility is hereby
authorized to take all actions necessary or appropriate and to execute and
deliver any and all evidences of indebtedness and agreements, including loan
agreements, leases and agreements providing for credit enhancement, as may be
necessary to permit such publicly owned health facility to avail itself of the
provisions of this Act. Any evidence of indebtedness or agreement entered into
by the State or any political subdivision, agency, instrumentality, district or
municipality thereof pursuant to this Act may provide for the payment of
interest at such rate or rates as shall be determined by the issuer thereof or
obligor thereunder and may be issued or entered into without referendum
approval; provided, that this Act shall not be deemed to be independent
authority for levy of any taxes to pay an obligation owing from the State or
any political subdivision, agency, instrumentality, district or municipality
thereof
and arising hereunder or incurred in connection with a financing pursuant
hereto.

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