SB 57 — IFA-ENERGY AGRIBUSINESS

*LRB09505151RCE25222b* SB0057 95THEngrossed GENERALLRB095 ASSEMBLY05151 StateRCE of25222 Illinoisb andAN 2008ACT SB0057concerning Introducedfinance. 1/31/2007, by Sen.

James F.

Clayborne, Jr.

SYNOPSIS AS INTRODUCED:

ILCS 3501/801-10 ILCS 3501/830-25 ILCS 3501/830-35 Amends the Illinois Finance Authority Act.

Defines the term "energy-related agribusiness" to include fuel processing and development facilities using agricultural commodities, vegetable oils, animal fats, or biomass feedstocks.

Authorizes State Guarantees for loans to energy-related agribusinesses.

Sets limits on these guarantees and provides for review and renewal.

LRB095 05151 RCE 25222 b FISCAL NOTE ACT STATE DEBT MAY APPLY IMPACT NOTE ACT MAY APPLY A BILL FOR SB0057 LRB095 05151 RCE 25222 b AN ACT concerning finance.

(c) The term "public purpose project" means any project or facility including without limitation land, buildings, structures, machinery, equipment and all other real and personal property, which is authorized or required by law to be SB0057 Engrossed - 2 - LRB095 05151 RCE 25222 b acquired, constructed, improved, rehabilitated, reconstructed, replaced or maintained by any unit of government or any other lawful public purpose which is authorized or required by law to be undertaken by any unit of government.

and (iii) all non-capital costs and expenses relating thereto or (2) any addition to, renovation, rehabilitation or improvement of a capital project or (3) any activity or undertaking which the SB0057 Engrossed - 3 - LRB095 05151 RCE 25222 b Authority determines will aid, assist or encourage economic growth, development or redevelopment within the State or any area thereof, will promote the expansion, retention or diversification of employment opportunities within the State or any area thereof or will aid in stabilizing or developing any industry or economic sector of the State economy.

(i) an agreement whereby a project acquired by the Authority by purchase, gift or lease is leased to any person, corporation or unit of local government which will use or cause the project to be used as a project as heretofore defined upon terms providing for lease rental payments at least sufficient to pay when due all principal of, interest and premium, if any, on any bonds of the Authority issued with respect to such project, providing for the maintenance, insuring and operation of the project on terms satisfactory to the Authority, providing for disposition of the project upon termination of the lease term, including purchase options or abandonment of the premises, and such other terms as may be deemed desirable SB0057 Engrossed - 4 - LRB095 05151 RCE 25222 b by the Authority, or (ii) any agreement pursuant to which the Authority agrees to loan the proceeds of its bonds issued with respect to a project or other funds of the Authority to any person which will use or cause the project to be used as a project as heretofore defined upon terms providing for loan repayment installments at least sufficient to pay when due all principal of, interest and premium, if any, on any bonds of the Authority, if any, issued with respect to the project, and providing for maintenance, insurance and other matters as may be deemed desirable by the Authority.

(a) any public or private institution, place, building, or agency required to be SB0057 Engrossed - 5 - LRB095 05151 RCE 25222 b licensed under the Hospital Licensing Act;

(h) any public or private congregate, life or extended care or elderly housing facility or any public or private home for the aged or infirm, SB0057 Engrossed - 6 - LRB095 05151 RCE 25222 b including, without limitation, any Facility as defined in the Life Care Facilities Act;

"Health facility" also means a public or private structure or structures suitable primarily for use as a laboratory, laundry, nurses or interns residence or other housing or hotel facility used in whole or in part for staff, employees or students and their families, patients or relatives of patients admitted for treatment or care in a health facility, or persons conducting business with a health facility, physician’s facility, surgicenter, administration building, research facility, maintenance, storage or utility facility and all structures or facilities SB0057 Engrossed - 7 - LRB095 05151 RCE 25222 b related to any of the foregoing or required or useful for the operation of a health facility, including parking or other facilities or other supporting service structures required or useful for the orderly conduct of such health facility.

(m) The term "bond resolution" means the resolution or resolutions authorizing the issuance of, or providing terms and conditions related to, bonds issued under this Act and includes, where appropriate, any trust agreement, trust SB0057 Engrossed - 8 - LRB095 05151 RCE 25222 b indenture, indenture of mortgage or deed of trust providing terms and conditions for such bonds.

(r) The term "educational facility" means any property located within the State constructed or acquired before or after the effective date of this Act, which is or will be, in whole or in part, suitable for the instruction, feeding, recreation or housing of students, the conducting of research SB0057 Engrossed - 9 - LRB095 05151 RCE 25222 b or other work of a private institution of higher education, the use by a private institution of higher education in connection with any educational, research or related or incidental activities then being or to be conducted by it, or any combination of the foregoing, including, without limitation, any such property suitable for use as or in connection with any one or more of the following:

an administrative facility, aquarium, SB0057 Engrossed - 10 - LRB095 05151 RCE 25222 b assembly hall, auditorium, botanical garden, exhibition hall, gallery, greenhouse, library, museum, scientific laboratory, theater or zoological facility, and shall also include, without limitation, books, works of art or music, animal, plant or aquatic life or other items for display, exhibition or performance.

(2) Provides an educational program for which it awards a bachelor’s degree, or provides an educational program, admission into which is conditioned upon the prior attainment of a bachelor’s degree or its equivalent, for which it awards a postgraduate degree, or provides not less than a 2-year program which is acceptable for full credit toward such a degree, or offers a 2-year program in engineering, mathematics, or the physical or biological sciences which is designed to prepare the student to work SB0057 Engrossed - 11 - LRB095 05151 RCE 25222 b as a technician and at a semiprofessional level in engineering, scientific, or other technological fields which require the understanding and application of basic engineering, scientific, or mathematical principles or knowledge;

Academic institutions include, without limitation, libraries, archives, academic, SB0057 Engrossed - 12 - LRB095 05151 RCE 25222 b scientific, educational or professional societies, institutions, associations or foundations having such purposes.

(x) The term "agricultural facility" means land, any building or other improvement thereon or thereto, and any personal properties deemed necessary or suitable for use, whether or not now in existence, in farming, ranching, the production of agricultural commodities (including, without limitation, the products of aquaculture, hydroponics and silviculture) or the treating, processing or storing of such agricultural commodities when such activities are customarily SB0057 Engrossed - 13 - LRB095 05151 RCE 25222 b engaged in by farmers as a part of farming.

(1) grain handling and processing, including grain storage, drying, treatment, conditioning, mailing and SB0057 Engrossed - 14 - LRB095 05151 RCE 25222 b packaging;

(ii) vegetable oils, including but not limited to soysoybean bean oils, or animal SB0057 Engrossed - 15 - LRB095 05151 RCE 25222 b fats;

livestock SB0057 Engrossed - 16 - LRB095 05151 RCE 25222 b held for sale;

(dd) The term "housing project" means a specific work or improvement undertaken to provide residential dwelling accommodations, including the acquisition, construction or rehabilitation of lands, buildings and community facilities and in connection therewith to provide nonhousing facilities which are part of the housing project, including land, buildings, improvements, equipment and all ancillary facilities for use for offices, stores, retirement homes, hotels, financial institutions, service, health care, education, recreation or research establishments, or any other commercial purpose which are or are to be related to a housing SB0057 Engrossed - 17 - LRB095 05151 RCE 25222 b development.

For purposes of this Section, an eligible farmer shall be a resident of Illinois (i) who is principal operator of a farm or land, at least 50% of whose SB0057 Engrossed - 18 - LRB095 05151 RCE 25222 b annual gross income is derived from farming, (ii) whose annual total sales of agricultural products, commodities, or livestock exceeds $20,000, and (iii) whose net worth does not exceed $500,000.

The applicant shall be responsible for paying any SB0057 Engrossed - 19 - LRB095 05151 RCE 25222 b fees or charges involved in recording mortgages, releases, financing statements, insurance for secondary market issues and any other similar fees or charges as the Authority may require.

State Guarantees for any energy-related agribusinesses shall not exceed $10,000,000 for SB0057 Engrossed - 20 - LRB095 05151 RCE 25222 b any one project;

(ii) The application provides collateral acceptable to SB0057 Engrossed - 21 - LRB095 05151 RCE 25222 b the Authority that is at least equal to the State’s portion of the Guarantee to be provided.

If for any reason the General Assembly fails SB0057 Engrossed - 22 - LRB095 05151 RCE 25222 b to make an appropriation sufficient to meet these obligations, this Act shall constitute an irrevocable and continuing appropriation of an amount necessary to secure guarantees as defaults occur and the irrevocable and continuing authority for, and direction to, the State Treasurer and the Comptroller to make the necessary transfers to the Illinois Farmer and Agribusiness Loan Guarantee Fund, as directed by the Governor, out of the General Revenue Fund.

The Fund shall be reimbursed for any amounts paid under this Section, Section 830-45 or Section 830-50 upon SB0057 Engrossed - 23 - LRB095 05151 RCE 25222 b liquidation of the collateral.