Ill. Admin. Code tit. 92, § 15.70 - Conditions of Loan
Loans under this Part may only be issued pursuant to a binding, written agreement that contains the following conditions and requirements.
a) The annual rate of
interest shall be the lesser of either 2percent below the Prime Rate charged by
banks, as published by theFederal Reserve Board, in effect at the time the
Departmentapproves the loan, or a rate determined by the Department,
afterconsultation with the Bureau of the Budget, that will notadversely affect
the tax-exempt status of interest on the bonds ofthe State issued in whole or
in part to make deposits into theAirport Land Loan Revolving Fund, nor diminish
the benefit to theState of the tax-exempt status of the interest on such bonds.
In no event shall less than 2 percent be charged. (Section 34b(b)(1) of the
Act)
b) The term of any loan shall
not exceed five years, but it may befor less by mutual agreement. (Section
34b(b)(2) of the Act)
c) The loan
shall be secured with the property purchased, in whole or in part, with the
loan. The property shall be collateral for the loan. The Owner shall assign a
first priority interest in the property to the State and shall cooperate with
the Department to record the Department's interest in the property. (Section
34b(b)(5) of the Act)
d) No funds
may be transferred to an Owner under this Part until the Department's interest
in the property is secured as outlined in subsection (c) of this
Section.
e) If federal
reimbursement will be requested for the real estate interest purchased with a
loan granted under this Part, the real estate acquisition process must comply
with the Uniform Relocation Assistance and Real Property Acquisition Policy Act
of 1970, as amended (the Uniform Act) (
42
USC 4601 et seq.). All real estate
acquisition costs eligible under the Uniform Act may be paid with money lent
under this Part; however, the amount of the loan cannot exceed fair market
value of the property, as determined by the Department.
f) If any or all of the interest in the
property is transferred (see Section
15.80(e)
), the Owner and the Department shall retain an avigation easement in the
transferred property interest that meets the requirements of the Department.
(See 92 Ill. Adm. Code 14 and the FAA Policy and Procedures Memorandum 5190.6,
Appendix 3, June 14, 1994.)
g) If a
loan application is accepted, the Owner must do, and bear the cost of, the
following:
1) provide an appraisal of the
property by an appraiser currently licensed as a certified general real estate
appraiser with the State of Illinois;
2) secure a title insurance policy for the
purchase price of the parcel that is the subject of the loan; and
3) file the Notice of Lien with the county
recorder for the county in which the subject property is located.
Notes
Amended at 25 Ill. Reg. 14523, effective October 27, 2001
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