Sec. 19.5. Loans; repayment.

173 words·~1 min read·/il/chapter-415/act-5/19-5

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(a)The Agency shall have the authority to make loans pursuant to the regulations promulgated under Section 19.4.

(b)Loans made from the Fund shall provide for:

(1)a schedule of disbursement of proceeds;

(2)a fixed rate that includes interest and loan support based upon priority, but the

loan support rate shall not exceed one-half of the fixed rate established for each loan;

(3)a schedule of repayment;

(4)initiation of principal repayments within one year after the project is operational;

and

(5)a confession of judgment upon default.

(c)The Agency may amend existing loans to include a loan support rate only if the overall cost to the loan recipient is not increased.

(d)A local government unit shall secure the payment of its obligations to the Fund by a dedicated source of repayment, including revenues derived from the imposition of rates, fees and charges. Other loan applicants shall secure the payment of their obligations by appropriate security and collateral pursuant to regulations promulgated under Section 19.4.