Illinois Compiled Statutes
Chapter 110 - HIGHER EDUCATION
110 ILCS 405/ - University of Illinois Revenue Bond Financing Act for Auxiliary Facilities.

(110 ILCS 405/1) (from Ch. 144, par. 48.1)
Sec. 1.

The Board of Trustees of the University of Illinois is hereby
authorized to:
A. Acquire by purchase or otherwise, construct, enlarge, improve,
equip, complete, operate, control and manage student residence halls,
apartments, staff housing facilities, health facilities, physical
education buildings, union buildings, auditoriums, gymnasiums, or any
other revenue producing buildings or facilities, administrative
facilities for student services, educational facilities leased to
the federal government, and the Nuclear Physics Laboratory,
or any combination thereof of such type and
character as the Board of Trustees shall from time to time find a
necessity therefor exists and as may be required for the good and
benefit of the University, and enlarge, improve and equip any such
existing building, buildings, facility or facilities now used or
acquired for such purposes and for that purpose may acquire property of
any and every kind and description, whether real, personal or mixed, by
gift, or otherwise.
B. Maintain and operate any such building, buildings, facility or
facilities, or any combination thereof, and to charge for the use of any
such building, buildings, facility or facilities now used, or hereafter
acquired and carry on such activities as are commonly conducted in such
types of buildings and facilities and to devote the same to such uses as
will produce, where combined with other income available therefor, a
reasonable excess of income over maintenance and operation expenses.
C. Hold in the treasury of the University of Illinois all funds
derived from the operation of any such building, buildings, facility or
facilities, together with other funds authorized by law to be applied to
the purposes herein specified, and to apply the same toward the cost of
maintenance and operation thereof, and for the retirement of any bonds
issued in connection with the acquisition, construction, enlargement,
improvement or equipment thereof.
D. Enter into contracts touching in any manner any matter within the
objects and purposes of this Act.
E. Acquire building sites and buildings or any other revenue
producing facilities by gift, purchase or otherwise, and pledge,
separately or in combination, the revenues of any or all of such
buildings or facilities so used or acquired for the payment of any bonds
issued for such purposes as provided in this Act.
F. Borrow money and issue and sell bonds in such amount and at such
price and redeemable prior to maturity with or without premium as the
Board of Trustees may determine for the purpose of acquiring,
completing, enlarging, improving, constructing, or equipping such
building, buildings, facility or facilities or any combination thereof,
and to refund or refinance, from time to time as often as it shall be
advantageous and in the public interest to do so, separately or in
combination, any and all bonds issued and sold by the Board pursuant to
this Act; provided that the selling price of any such bonds shall be
such that the net interest cost to the University of the proceeds
derived from the sale of said bonds shall not exceed
the greater of (i) the maximum rate authorized by the Bond Authorization Act,
as amended at the
time of the making of the contract, or (ii)
8% per annum for
bonds issued before January 1, 1972 and shall not exceed
the maximum rate authorized by the Bond Authorization Act, as amended at the
time of the making of the contract,
for bonds issued after January 1, 1972, based upon the average maturity
of such bonds and computed according to standard tables of bond values.
Such bonds shall be payable only from the revenues pledged from the
operation of any such building, buildings, facility or facilities or any
combination thereof and, when authorized by the Board of Trustees, from
University income authorized by law to be retained in the treasury of
the University and applied as a supplement to said revenues. Such bonds
shall be secured by a pledge of sufficient of the revenues of any such
building, buildings, facility or facilities or any combination thereof
so acquired, used, completed, enlarged, improved, constructed or
equipped as herein provided, and if so authorized by the Board of
Trustees, by University income to the extent authorized by Section 6g of
"An Act in relation to State finance," approved June 10, 1919, as
amended, and by Section 1.1 of this Act, as amended.
Such bonds shall have all the qualities of securities under the
Uniform Commercial Code approved July 31, 1961, as now or hereafter
amended.
Said Board of Trustees shall have power from time to time to execute
and deliver trust agreements hereunder to a bank or trust company
authorized by the laws of this State or the United States of America, to
accept and execute trusts in this State. Such trust agreements may
contain any provision for the deposit with the Trustee thereunder and
the disposition of the proceeds of the bonds issued under the provisions
of this Act and secured thereby, and such provisions for the protection
and the enforcement of the rights and remedies of said trustee and the
holders of such bonds as the Board of Trustees may approve.
The Board of Trustees shall prepare an annual capital plan which details
the proposed budget year and 3 year capital needs of the University for
capital expenditures to finance revenue producing facilities through the
issuance of revenue bonds. This plan shall detail each project and the
project cost in current dollar amounts. The plan shall contain the appropriate
detail for the proposed budget year and the 3 year plan which will justify
the projects ability to meet: the debt service requirements by producing
sufficient revenue, life expectancy, and maintenance requirements. Such
annual capital plans shall be submitted to the Board of Higher Education.
With respect to instruments for the payment of money issued under this
Section either before, on, or after the effective date of this amendatory
Act of 1989, it is and always has been the intention of the General
Assembly (i) that the Omnibus Bond Acts are and always have been
supplementary grants of power to issue instruments in accordance with the
Omnibus Bond Acts, regardless of any provision of this Act that may appear
to be or to have been more restrictive than those Acts, (ii) that the
provisions of this Section are not a limitation on the supplementary
authority granted by the Omnibus Bond Acts, and (iii) that instruments
issued under this Section within the supplementary authority granted
by the Omnibus Bond Acts are not invalid because of any provision of
this Act that may appear to be or to have been more restrictive than
those Acts.

(Source: P.A. 86-4.)
 
(110 ILCS 405/1.1) (from Ch. 144, par. 48.1a)
Sec. 1.1.

If the Board of Trustees, in respect to any bonds issued for any
of the purposes as in this Act provided or in respect to the refunding of
any bonds heretofore or hereafter issued by said Board of Trustees under
the authority of this Act, determines that the maximum revenues which may
reasonably and economically be derived by the University from such revenue
producing building, buildings, facility or facilities or any combination
thereof will be insufficient after payment of the reasonable costs of
maintenance and operation, to meet interest and principal payments and
provide the required reserves on the bonds issued or to be issued for such
project or to refund any bonds heretofore or hereafter issued by said Board
of Trustees under the authority of this Act, the Board may provide for the
supplementation of such revenues from University income authorized by law
to be retained in the University treasury for such purpose, and may pledge
such revenues and income, to the extent herein authorized, for the
retirement of such bonds. Such funds as are so pledged shall be credited
annually to the account to which the pledge applies. Such supplementation
from University income shall not be in excess of an amount which, when
added to the revenues to be derived from the building, buildings, facility
or facilities or any combination thereof will be sufficient to meet the
annual debt service requirements on the bonds, the annual costs of
maintenance and operation of the building, buildings, facility or
facilities or any combination thereof, and to provide for any reserves,
accounts or covenants which the bond resolution may require plus such sums
as the Board of Trustees shall determine shall be retained from year to
year to assure adequate supplementation.

(Source: Laws 1957, p. 1716.)
 
(110 ILCS 405/2) (from Ch. 144, par. 48.2)
Sec. 2.

All such bonds shall be signed by the President and any two members
of the Board of Trustees and shall have the seal of the University affixed
thereto (or a facsimile of the signature of the President of the Board of
Trustees or of said seal or both thereof, may be imprinted, engraved or
otherwise reproduced thereon), and shall be attested by the Secretary of
such Board of Trustees, and in case any officer who shall have signed or
attested any such bonds, or whose facsimile appears on the bonds or
interest coupons shall cease to be such officer, before such bonds shall
have been issued by the Board of Trustees, such bonds may nevertheless be
validly issued by said Board. Said Board of Trustees may provide for
registration as to principal only or as to both principal and interest of
any such bonds. All interest coupons shall be authenticated by the
facsimile signatures of the President and Secretary of The Board of
Trustees of the University of Illinois. Such bonds shall be payable only
from the revenues of any such building, buildings, facility or facilities
or any combination thereof, and, when authorized by the Board of Trustees,
from University income authorized by law to be retained in the treasury of
the University, and applied as a supplement to such revenues, and shall in
no case be or become a charge or debt against the State of Illinois or The
Board of Trustees of the University of Illinois, and such fact shall be
plainly stated on the face of each bond.

(Source: Laws 1957, p. 1716.)
 
(110 ILCS 405/3) (from Ch. 144, par. 48.3)
Sec. 3.

Upon the determination by the Board of Trustees to acquire,
complete, construct, enlarge, improve, or equip any student residence hall,
apartment, staff housing facility, health facility, physical education
building, union building, auditorium, gymnasium, or other revenue producing
building or buildings, the Board of Trustees shall adopt a resolution or
resolutions describing in a general way the contemplated facilities or
combination thereof designated as the project, the estimated cost thereof,
and fixing the amount of bonds, the maturity or maturities, the interest
rate, and all details in respect thereof. Such resolution or resolutions
shall contain such covenants with respect to the creation of reserves or
accounts, and any restrictions upon the issuance of additional bonds that
may thereafter be issued payable from the rents, issues and profits derived
from the operation of any such building, buildings, facility or facilities,
separately or in combination, and, where authorized by the Board of
Trustees, from University income authorized by law to be retained in the
University treasury and applied as a supplement to such revenues, as may be
deemed necessary or advisable for the assurance and payment of the bonds
thereby authorized, and such resolution or resolutions shall pledge for the
maintenance and operation of any such building, buildings, facility or
facilities or combination thereof, and for the payment of the principal of
and interest upon such bonds, and the creation of any reserves or accounts
established by such resolution, the revenues derived from the operation of
any such building, buildings, facility or facilities or combination
thereof, including any buildings now used or hereafter acquired for such
purposes, and, if authorized by the Board of Trustees, University income to
the extent authorized by Section 6g of "An Act in relation to State
finance", approved June 10, 1919, as amended, and by Section 1.1 of this
Act, as amended.

(Source: Laws 1957, p. 1716.)
 
(110 ILCS 405/4) (from Ch. 144, par. 48.4)
Sec. 4.

Whenever bonds are issued by the Board of Trustees, as provided in
this Act, it shall be the duty of such Board to establish charges or fees
for the use of any such building or buildings sufficient at all times to
pay maintenance and operation costs and principal of and interest on such
bonds, or sufficient, when added to University income authorized and
allocated for such purpose, to pay the costs specified in Section 6g of "An
Act in relation to State finance", approved June 30, 1919, as amended,
and in Section 1.1 of this Act, and all revenues derived from the
operation thereof and all University income authorized by law and allocated
by said Board for such purpose shall be set aside in a separate account and
fund which shall be used only in paying the cost of maintenance and
operation of said building or buildings, providing for the performance of
all obligations under all covenants in the resolution authorizing the issue
of said bonds, and paying the principal of and interest upon the bonds
issued for the purpose or purposes set forth and described in said
resolution authorizing the issue of said bonds.

(Source: Laws 1955, p. 796.)
 
(110 ILCS 405/5) (from Ch. 144, par. 48.5)
Sec. 5.

Any holder of any such bond, or of any of the coupons of any such
bond, issued under this Act, may either by civil action,
mandamus, injunction or other proceeding enforce and compel the performance of
all duties required by this Act, and the resolution authorizing the issue
of such bond, including establishment of sufficient fees or charges for use
of any such building or buildings and the application of the income and
revenue thereof, and it shall be the duty of the Board of Trustees upon the
issuance of any such bonds, to establish by resolution from time to time
the fees or charges to be made for the use of any such building or
buildings, which fees or charges shall be adjusted from time to time in
order to always provide sufficient income for maintenance and operation of
such building or buildings and payment of the principal of and interest on
such bonds issued as provided for in this Act, or, as provided in Section
1.1, sufficient, when added to University income authorized by law and
allocated by said Board for such purpose, to provide for such maintenance
and operation, the payment of the principal of and interest on such bonds,
and to provide for any reserves, accounts or covenants which the bond
resolution may require.

(Source: P.A. 83-345.)
 
(110 ILCS 405/5.1) (from Ch. 144, par. 48.5a)
Sec. 5.1.

The Board of Trustees may refund and refinance its outstanding
bonds from time to time and to this end may authorize and issue refunding
bonds secured and payable from the same source as the bonds being refunded
thereby, whenever the Board of Trustees determines that it is in the best
interests of the University to do so.
The refunding bonds may be issued in an amount not in excess of an
amount to pay principal of the outstanding bonds to be refunded, plus the
interest to accrue up to and including the maturity date or dates, or to
the next succeeding date upon which such bonds are redeemable prior to
maturity, plus the applicable redemption premiums, if any, and may bear
interest at a rate not to exceed
the greater of (i) the maximum rate authorized by the Bond Authorization Act,
as amended at the
time of the making of the contract, or (ii)
8% per annum for bonds issued before
January 1, 1972 and at a rate not to exceed
the maximum rate authorized by the Bond Authorization Act, as amended at the
time of the making of the contract, for bonds issued
after January 1, 1972, notwithstanding that the interest rate on the bonds
to be refunded is less than the interest rate on the refunding bonds.
Any such refunding bonds shall be sold for not less than par and accrued
interest to date of delivery thereof in such manner as the Board may
determine.
The proceeds derived from the sale of any such refunding bonds shall be
applied either to the payment or redemption and retirement of the bonds to
be refunded, or if such bonds are not then subject to payment or
redemption, all proceeds received at the sale thereof shall be invested in
direct obligations of, or obligations the principal of and interest on
which are fully guaranteed by, the United States of America so long as such
investments will mature at such time with interest thereon or profit
therefrom to provide funds adequate to pay, when due or called for
redemption prior to maturity, the bonds to be refunded together with the
interest accrued thereon and any redemption premium due thereon. Such
proceeds or obligations of the United States of America shall, with all
other funds legally available for such purpose, be deposited in escrow with
any bank or trust company located and doing business in the State of
Illinois with power to accept and execute trusts to be held in an
irrevocable trust for the payment at maturity or redemption of the bonds
refunded and accrued interest and the applicable premiums, if any, if the
bonds are redeemable prior to maturity or upon earlier voluntary surrender
with the consent of the holder thereof. The term "proceeds of the refunding
bonds" means the gross proceeds after deducting therefrom all accrued
interest. Any balance remaining in such escrow after the payment and
retirement of the bonds to be refunded shall be returned to the Board of
Trustees to be used as revenues pledged for the payment of such refunding
bonds.
If any of the outstanding bonds to be refunded are to be paid prior to
maturity pursuant to call for redemption exercised under a right of
redemption reserved in such bonds, then at the time of the issuance of the
refunding bonds, or prior thereto, a notice of redemption shall be given or
irrevocable arrangements shall be made with a bank or trust company for the
giving of notice of redemption as required by the proceedings applicable to
the bonds to be refunded, and a copy of such notice signed by the
appropriate officer shall be deposited with the bank or trust company for
that purpose. If any officer signing the notice shall no longer be in the
office at the time the notice is issued, the notice shall nevertheless be
valid and effective to its intended purpose.
All of the provisions of this Act, including covenants that may be
entered into in connection with the issuance of bonds, shall be applicable
to the authorization and issuance of any refunding bonds.
With respect to instruments for the payment of money issued under this
Section either before, on, or after the effective date of this amendatory
Act of 1989, it is and always has been the intention of the General
Assembly (i) that the Omnibus Bond Acts are and always have been
supplementary grants of power to issue instruments in accordance with the
Omnibus Bond Acts, regardless of any provision of this Act that may appear
to be or to have been more restrictive than those Acts, (ii) that the
provisions of this Section are not a limitation on the supplementary
authority granted by the Omnibus Bond Acts, and (iii) that instruments
issued under this Section within the supplementary authority granted
by the Omnibus Bond Acts are not invalid because of any provision of
this Act that may appear to be or to have been more restrictive than
those Acts.

(Source: P.A. 86-4.)
 
(110 ILCS 405/6) (from Ch. 144, par. 48.6)
Sec. 6.

Nothing herein contained shall be construed as a limitation upon or
restriction of the powers of the Board of Trustees of the University of
Illinois under any law which is now in force, or which may hereafter be
enacted.

(Source: Laws 1945, p. 1753.)
 
(110 ILCS 405/6.5) (from Ch. 144, par. 48.6 1/2)
Sec. 6.5.

The State and all counties, cities, villages,
incorporated towns and other municipal corporations, political
subdivisions and public bodies, and public officers of any thereof, all
banks, bankers, trust companies, saving 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
revenue bonds issued pursuant to this Act, it being the purpose of this
section to authorize the investment in such revenue bonds of all
sinking, insurance, retirement, compensation, pension and trust funds,
whether owned or controlled by private or public persons or officers.

(Source: P.A. 87-895.)
 
(110 ILCS 405/7) (from Ch. 144, par. 48.7)
Sec. 7.

If any clause, sentence or provision in this Act shall be
declared invalid, such invalidity shall not affect any other clause,
sentence or provision of this Act, it being the intention of the General
Assembly to enact such other clause, sentence or provision in any event.

(Source: Laws 1945, p. 1753.)
 
(110 ILCS 405/7.1) (from Ch. 144, par. 48.7-1)
Sec. 7.1.

Notwithstanding any other provision to the contrary, this Act is
subject to the "State College Housing Construction Act".

(Source: Laws 1967, p. 2216.)
 
(110 ILCS 405/8) (from Ch. 144, par. 48.7a)
Sec. 8.

This Act may be cited as the
University of Illinois Revenue Bond Financing Act for Auxiliary Facilities.

(Source: P.A. 86-1475.)

Structure Illinois Compiled Statutes