Division 4 - Issuance Of Bonds
(65 ILCS 5/8‑4‑1) (from Ch. 24, par. 8‑4‑1) Sec. 8‑4‑1. No bonds shall be issued by the corporate authorities of any municipality until the question of authorizing such bonds has been submitted to the electors of that municipality provided that notice of the bond referendum, if held before July 1, 1999, has been given in accordance with the provisions of Section 12‑5 of the Election Code in effect at the time of the bond referendum, at least 10 and not more than 45 days before the date of the election, notwithstanding the time for publication otherwise imposed by Section 12‑5, and approved by a majority of the electors voting upon that question. Notices required in connection with the submission of public questions on or after July 1, 1999 shall be as set forth in Section 12‑5 of the Election Code. The clerk shall certify the proposition of the corporate authorities to the proper election authority who shall submit the question at an election in accordance with the general election law, subject to the notice provisions set forth in this Section. Notice of any such election shall contain the amount of the bond issue, purpose for which issued, and maximum rate of interest. However, without the submission of the question of issuing bonds to the electors, the corporate authorities of any municipality may authorize the issuance of any of the following bonds: (1) Bonds to refund any existing bonded indebtedness; (2) Bonds to fund or refund any existing judgment indebtedness; (3) In any municipality of less than 500,000 population, bonds to anticipate the collection of installments of special assessments and special taxes against property owned by the municipality and to anticipate the collection of the amount apportioned to the municipality as public benefits under Article 9; (4) Bonds issued by any municipality under Sections 8‑4‑15 through 8‑4‑23, 11‑23‑1 through 11‑23‑12, 11‑25‑1 through 11‑26‑6, 11‑71‑1 through 11‑71‑10, 11‑74.4‑1 through 11‑74.4‑11, 11‑74.5‑1 through 11‑74.5‑15, 11‑94‑1 through 11‑94‑7, 11‑102‑1 through 11‑102‑10, 11‑103‑11 through 11‑103‑15, 11‑118‑1 through 11‑118‑6, 11‑119‑1 through 11‑119‑5, 11‑129‑1 through 11‑129‑7, 11‑133‑1 through 11‑133‑4, 11‑139‑1 through 11‑139‑12, 11‑141‑1 through 11‑141‑18 of this Code or 10‑801 through 10‑808 of the Illinois Highway Code, as amended; (5) Bonds issued by the board of education of any school district under the provisions of Sections 34‑30 through 34‑36 of The School Code, as amended; (6) Bonds issued by any municipality under the provisions of Division 6 of this Article 8; and by any municipality under the provisions of Division 7 of this Article 8; or under the provisions of Sections 11‑121‑4 and 11‑121‑5; (7) Bonds to pay for the purchase of voting machines by any municipality that has adopted Article 24 of The Election Code, approved May 11, 1943, as amended; (8) Bonds issued by any municipality under Sections 15 and 46 of the "Environmental Protection Act", approved June 29, 1970; (9) Bonds issued by the corporate authorities of any municipality under the provisions of Section 8‑4‑25 of this Article 8; (10) Bonds issued under Section 8‑4‑26 of this Article 8 by any municipality having a board of election commissioners; (11) Bonds issued under the provisions of "An Act to provide the manner of levying or imposing taxes for the provision of special services to areas within the boundaries of home rule units and nonhome rule municipalities and counties", approved September 21, 1973; (12) Bonds issued under Section 8‑5‑16 of this Code; (13) Bonds to finance the cost of the acquisition, construction or improvement of water or wastewater treatment facilities mandated by an enforceable compliance schedule developed in connection with the federal Clean Water Act or a compliance order issued by the United States Environmental Protection Agency or the Illinois Pollution Control Board; provided that such bonds are authorized by an ordinance adopted by a three‑fifths majority of the corporate authorities of the municipality issuing the bonds which ordinance shall specify that the construction or improvement of such facilities is necessary to alleviate an emergency condition in such municipality; (14) Bonds issued by any municipality pursuant to Section 11‑113.1‑1; (15) Bonds issued under Sections 11‑74.6‑1 through 11‑74.6‑45, the Industrial Jobs Recovery Law of this Code. (Source: P.A. 90‑706, eff. 8‑7‑98; 90‑812, eff. 1‑26‑99; 91‑57, eff. 6‑30‑99.) |
(65 ILCS 5/8‑4‑2) (from Ch. 24, par. 8‑4‑2) Sec. 8‑4‑2. Such question shall be in substantially the following form: Shall bonds in the amount of $....... be issued by the city (or YES village or incorporated town as the case may be) of .... for the purpose of ............ (state purpose), bearing interest at the NO rate of not to exceed ....%? (Source: P.A. 81‑1489.) |
(65 ILCS 5/8‑4‑3) (from Ch. 24, par. 8‑4‑3) Sec. 8‑4‑3. The corporate authorities of any municipality, without submitting the question to the electors thereof for approval, may authorize by ordinance the issuance of refunding bonds (1) to refund its bonds prior to their maturity; (2) to refund its unpaid matured bonds; (3) to refund matured coupons evidencing interest upon its unpaid bonds; (4) to refund interest at the coupon rate upon its unpaid matured bonds that has accrued since the maturity of these bonds; and (5) to refund its bonds which by their terms are subject to redemption before maturity. The refunding bonds may be made registerable as to principal and may bear interest 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, payable at such time and place as may be provided in the bond ordinance. The refunding bonds shall remain valid even though one or more of the officers executing the bonds cease to hold his or their offices before the bonds are delivered. 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. The amendatory Acts of 1971, 1972 and 1973 are not a limit upon any municipality which is a home rule unit. (Source: P.A. 86‑4.) |
(65 ILCS 5/8‑4‑4) (from Ch. 24, par. 8‑4‑4) Sec. 8‑4‑4. The ordinance authorizing the refunding bonds shall prescribe all details thereof and shall provide for the levy and collection of a direct annual tax upon all the taxable property within the municipality sufficient to pay the principal thereof and interest thereon as it matures. This tax shall be in addition to and exclusive of the maximum of all other taxes authorized to be levied by the municipality. Tax limitations applicable to the municipality provided by this Code or by other Illinois statutes shall not apply to taxes levied for payment of these refunding bonds. A certified copy of the bond ordinance shall be filed with the county clerk of the county in which the municipality or any portion thereof is situated, and shall constitute the authority for the extension and collection of refunding bond and interest taxes as required by the constitution. (Source: Laws 1961, p. 576.) |
(65 ILCS 5/8‑4‑5) (from Ch. 24, par. 8‑4‑5) Sec. 8‑4‑5. The refunding bonds may be exchanged for the bonds to be refunded on the basis of dollar for dollar for the par value of the bonds, interest coupons, and interest not represented by coupons, if any. Instead of this exchange, the refunding bonds may be sold at not less than their par value and accrued interest. The proceeds received from their sale shall be used to pay the bonds, interest coupons, and interest not represented by coupons, if any. This payment may be made without any prior appropriation therefor under Section 8‑2‑1 or 8‑2‑9. Bonds and interest coupons which have been received in exchange or paid shall be cancelled and the obligation for interest, not represented by coupons, which has been discharged, shall be evidenced by a written acknowledgment of the exchange or payment thereof. (Source: Laws 1961, p. 576.) |
(65 ILCS 5/8‑4‑6) (from Ch. 24, par. 8‑4‑6) Sec. 8‑4‑6. The refunding bonds shall be of such form and denomination, payable at such place, bear such date, and be executed by such officials as may be provided by the corporate authorities of the municipality in the bond ordinance. They shall mature within not to exceed 20 years from their date, and may be made callable on any interest payment date at par and accrued interest after notice has been given at the time and in the manner provided in the bond ordinance. If there is no default in payment of the principal of or interest upon the refunding bonds, and if after setting aside a sum of money equal to the amount of interest that will accrue on the refunding bonds, and a sum of money equal to the amount of principal that will become due thereon, within the next 6 months period, the treasurer and comptroller, if there is a comptroller, of the municipality shall use the money available from the proceeds of taxes levied for the payment of the refunding bonds in calling them for payment, if, by their terms, they are subject to redemption. However, a municipality may provide in the bond ordinance that, whenever the municipality is not in default in payment of the principal of or interest upon the refunding bonds and has set aside the sums of money provided in this paragraph for interest accruing and principal maturing within the next 6 months period, the money available from the proceeds of taxes levied for the payment of refunding bonds shall be used, first, in the purchase of the refunding bonds at the lowest price obtainable, but not to exceed their par value and accrued interest, after sealed tenders for their purchase have been advertised for as may be directed by the corporate authorities thereof. Refunding bonds called for payment and paid or purchased under this section shall be marked paid and cancelled. (Source: Laws 1961, p. 576.) |
(65 ILCS 5/8‑4‑7) (from Ch. 24, par. 8‑4‑7) Sec. 8‑4‑7. Whenever any refunding bonds are purchased or redeemed and cancelled, as provided in Section 8‑4‑6, the taxes thereafter to be extended for payment of the principal of and the interest on the remainder of the issue shall be reduced in an amount equal to the principal of and the interest that would have thereafter accrued upon the refunding bonds so cancelled. A resolution shall be adopted by the corporate authorities of the municipality finding these facts. A certified copy of this resolution shall be filed with the county clerk specified in Section 8‑4‑4. Whereupon the county clerk shall reduce and extend such tax levies in accordance therewith. Whenever refunding bonds are issued, proper reduction of taxes, theretofore levied for the payment of the bonds refunded and next to be extended for collection, shall be made by the county clerk upon receipt of a certificate signed by the treasurer and the comptroller, if there is a comptroller, of the municipality, showing the bonds refunded and the tax to be abated. (Source: Laws 1961, p. 576.) |
(65 ILCS 5/8‑4‑8) (from Ch. 24, par. 8‑4‑8) Sec. 8‑4‑8. Money which becomes available from taxes that were levied for prior years for payment of bonds or interest coupons that were paid or refunded before these taxes were collected, after payment of all warrants that may have been issued in anticipation of these taxes, shall be placed in the sinking fund account provided in this section. It shall be used to purchase, call for payment, or to pay at maturity refunding bonds and interest thereon as provided in Sections 8‑4‑3 through 8‑4‑9. Money received from the proceeds of taxes levied for the payment of the principal of and interest upon refunding bonds shall be deposited in a special fund of the municipality. It shall be designated as the "Refunding Bond and Interest Sinking Fund Account of ....." This fund shall be faithfully applied to the purchase or payment of refunding bonds and the interest thereon as provided in Sections 8‑4‑3 through 8‑4‑9. If the money in this fund is not immediately necessary for the payment or redemption of refunding bonds or if refunding bonds can not be purchased before maturity, then, under the direction of the corporate authorities of the municipality, the money may be invested by the treasurer and the comptroller, if there is a comptroller, of the municipality, in bonds or other interest bearing obligations of the United States or in bonds of the State of Illinois or in general obligation bonds of the issuing municipality. The maturity date of the securities in which this money is invested shall be prior to the due date of any issue of refunding bonds of the investing municipality. The corporate authorities may sell these securities whenever necessary to obtain cash to meet bond and interest payments. (Source: Laws 1961, p. 576.) |
(65 ILCS 5/8‑4‑9) (from Ch. 24, par. 8‑4‑9) Sec. 8‑4‑9. The corporate authorities of a municipality may take any action that may be necessary to inform the owners of unpaid bonds regarding the financial condition of the municipality, the necessity of refunding its unpaid bonds and readjusting the maturities thereof in order that sufficient taxes may be collected to take care of these bonds, and thus re‑establish the credit of the municipality. The corporate authorities may enter into any agreement required to prepare and carry out any refunding plan and, without any previous appropriation therefor under Section 8‑2‑1 or 8‑2‑9, may incur and pay expenditures that may be necessary in order to accomplish the refunding of the bonds of the municipality. (Source: Laws 1961, p. 576.) |
(65 ILCS 5/8‑4‑10) (from Ch. 24, par. 8‑4‑10) Sec. 8‑4‑10. Sections 8‑4‑3 through 8‑4‑10 apply to all municipalities, whether incorporated under a general or a special act, and shall constitute complete authority for issuing refunding bonds without reference to other laws, and shall be construed as conferring powers in addition to, but not as limiting powers granted under other laws or under any other provisions of this Code. (Source: Laws 1961, p. 576.) |
(65 ILCS 5/8‑4‑11) (from Ch. 24, par. 8‑4‑11) Sec. 8‑4‑11. In every municipality there shall be a sinking fund commission, composed of the mayor or president, as the case may be, the chairman of the finance committee, and the comptroller, or if there is no comptroller, the municipal clerk. Sections 8‑4‑11 and 8‑4‑12 shall not be applicable to the refunding bond and interest sinking fund account provided for in Section 8‑4‑8. (Source: Laws 1961, p. 576.) |
(65 ILCS 5/8‑4‑12) (from Ch. 24, par. 8‑4‑12) Sec. 8‑4‑12. Whenever there is a sum in the municipality's sinking fund in excess of the amount required for the payment of the municipality's bonded indebtedness maturing in that, or the succeeding, fiscal year, and the interest due in that period, the sinking fund commission may use this excess in the purchase of unpaid bonds for the payment of which, at maturity, the sinking fund was or shall be created, paying therefor no more than the market price. When such bonds are so purchased, they shall be cancelled, and thereafter no taxes for the payment of those bonds or the interest thereon shall be levied. The money in a municipality's sinking fund may be applied to the payment of such bonds without any further appropriation by the municipality than is made under this section. (Source: Laws 1961, p. 576.) |
(65 ILCS 5/8‑4‑13) (from Ch. 24, par. 8‑4‑13) Sec. 8‑4‑13. Every municipality incorporated by and operating under a special charter may borrow money upon the credit of the municipality for lawful corporate purposes, including the funding and refunding of any judgment indebtedness heretofore or hereafter incurred, and may issue its negotiable coupon bonds therefor in such form, of such denomination, payable at such place and at such time or times, not exceeding 20 years from their date, as the corporate authorities of the municipality may prescribe by ordinance. Every such municipality, prior to or at the time of issuing its bonds under this section, shall provide for the collection of a direct annual tax upon all of the taxable property of the municipality, which, in addition to all other taxes, shall be sufficient to pay the interest on the bonds as it falls due and also to pay the principal of the bonds within 20 years from their date. (Source: Laws 1961, p. 576.) |
(65 ILCS 5/8‑4‑14) (from Ch. 24, par. 8‑4‑14) Sec. 8‑4‑14. Without submitting the question to the legal voters thereof for approval the corporate authorities of any municipality having a population of less than 500,000 may by ordinance authorize the issue of refunding revenue bonds, payable solely from the revenues of a municipally‑owned water utility, combined water and sewer utility, sewer utility, gas utility, swimming pool or airport, to refund the principal or accrued interest, or both, of its outstanding revenue bonds, revenue certificates of indebtedness or revenue notes, prior to their maturity, and the principal and accrued interest of its matured outstanding revenue bonds, revenue certificates of indebtedness or revenue notes issued under the provisions of any law of this State, and which by their terms are payable solely from the revenues of a municipally‑owned water utility, combined water and sewer utility, sewer utility, gas utility, swimming pool or airport. The refunding revenue bonds may be made registerable as to principal and bear interest 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, payable at such time or at such place as may be provided for in the ordinance authorizing the issue thereof. 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. The amendatory Acts of 1971, 1972 and 1973 are not a limit upon any municipality which is a home rule unit. (Source: P.A. 86‑4.) |
(65 ILCS 5/8‑4‑15) (from Ch. 24, par. 8‑4‑15) Sec. 8‑4‑15. The ordinance authorizing such refunding revenue bonds shall prescribe all the details thereof and the bonds shall be in such form and denomination, payable at such places, bear such date and be executed by such officials as may be provided in the bond ordinance. The ordinance also shall determine the period of usefulness of the utility. The refunding revenue bonds shall mature within the determined period of usefulness of the utility and shall mature, in any event, within not to exceed 40 years from their date, and may be made callable on any interest payment date at a price of par and accrued interest, after notice shall be given by publication or otherwise at any time or times and in the manner as may be provided for in the bond ordinance. The ordinance may contain such covenants and restrictions upon the issuance of additional refunding revenue bonds, or revenue bonds for the improvement and extension of such utility or facility as may be deemed necessary or advisable for the assurance of the payment of the refunding revenue bonds thereby authorized. Such bonds shall be payable solely from the revenues derived from such municipally‑owned utility or facility and such bonds shall not, in any event, constitute an indebtedness of the municipality within the meaning of any constitutional or statutory limitation, and it shall be plainly stated on the face of each bond that it does not constitute an indebtedness of the municipality within the meaning of any constitutional or statutory provision or limitation. The validity of any refunding revenue bonds shall remain unimpaired, although one or more of the officials executing the same shall cease to be such officer or officers before delivery thereof, and such bonds shall have all the qualities of negotiable instruments under the Law Merchant and Article 3 of the Uniform Commercial Code. (Source: P.A. 90‑655, eff. 7‑30‑98.) |
(65 ILCS 5/8‑4‑16) (from Ch. 24, par. 8‑4‑16) Sec. 8‑4‑16. If any revenue securities which are refunded are secured by an indenture of mortgage or deed of trust, such indenture of mortgage or deed of trust shall be properly released of record. (Source: Laws 1961, p. 576.) |
(65 ILCS 5/8‑4‑17) (from Ch. 24, par. 8‑4‑17) Sec. 8‑4‑17. Whenever refunding revenue bonds are issued under this Division 4, sufficient revenues received from the operation of the municipally‑owned utility or facility shall be set aside as collected and be deposited in a separate fund, which shall be used only in paying the cost of operation and maintenance of the utility or facility, providing an adequate depreciation fund, and paying the principal of and interest upon the revenue bonds issued that are payable by their terms only from such revenues. (Source: Laws 1961, p. 576.) |
(65 ILCS 5/8‑4‑18) (from Ch. 24, par. 8‑4‑18) Sec. 8‑4‑18. Rates charged for service and the use of the utility or facility shall be sufficient at all times to pay the cost of operation and maintenance, provide an adequate depreciation fund and pay the principal of and interest upon all revenue bonds which by their terms are payable solely from the revenues derived from the operation of the utility or facility. (Source: Laws 1961, p. 576.) |
(65 ILCS 5/8‑4‑19) (from Ch. 24, par. 8‑4‑19) Sec. 8‑4‑19. Any holder of a bond or bonds, or of any of the coupons of any bond or bonds of a municipality issued under Sections 8‑4‑14 through 8‑4‑23, may in any civil action, mandamus, injunction or other proceeding, enforce and compel performance of all duties required by this Division 4, including the maintaining and collecting of sufficient rates for that purpose and the application of income and revenue thereof. (Source: P.A. 83‑345.) |
(65 ILCS 5/8‑4‑20) (from Ch. 24, par. 8‑4‑20) Sec. 8‑4‑20. After the ordinance providing for the issuance of the refunding revenue bonds has been passed, it shall be published at least once within 10 days after its passage in one or more newspapers published in the municipality, or, if no newspaper is published therein, then in one or more newspapers with a general circulation within the municipality. In municipalities with less than 500 population in which no newspaper is published, publication may instead be made by posting a notice in 3 prominent places within the municipality. The ordinance shall not become effective until 10 days after its publication. (Source: Laws 1961, p. 576.) |
(65 ILCS 5/8‑4‑21) (from Ch. 24, par. 8‑4‑21) Sec. 8‑4‑21. Such refunding revenue bonds may be exchanged on a basis of par for the securities to be refunded, or such bonds may be sold at not less than their par value and accrued interest and the proceeds received shall be used to pay the securities which are to be refunded thereby. (Source: Laws 1961, p. 576.) |