Public Act 0187 103RD GENERAL ASSEMBLY

  
  
  
 

 
Public Act 103-0187
 
HB3340 EnrolledLRB103 30195 AWJ 56623 b


  
    AN ACT concerning local government.
  
 
    Be it enacted by the People of the State of Illinois,
 
represented in the General Assembly:
  
 
 
    Section 5. The Illinois Municipal Code is amended  by 
changing Section 8-1-3.1 as follows:
 



    (65 ILCS 5/8-1-3.1)  (from Ch. 24, par. 8-1-3.1)



    Sec. 8-1-3.1. Borrowing from financial institutions. The 
corporate authorities may borrow money for corporate purposes 
from one fund
for the use of another fund providing such 
borrowing shall be repaid within
the current fiscal year.

    The corporate authorities may also borrow money from any 
bank or other
financial institution provided such money shall 
be repaid within 10 years

from the time the money is borrowed.  
The mayor or president of the municipality, as the case may be, 
shall execute a promissory note or similar debt instrument, 
but not a bond, to evidence the indebtedness incurred by the 
borrowing.  The obligation to make the payments due under the 
promissory note or other debt instrument shall be a lawful 
direct general obligation of the municipality payable from the 
general funds of the municipality and such other sources of 
payment as are otherwise lawfully available.  The promissory 
note or other debt instrument shall be authorized by an 
ordinance passed by the corporate authorities and shall be 
valid whether or not an appropriation with respect to that 
ordinance is included in any annual or supplemental 
appropriation adopted by the corporate authorities.  The 
indebtedness incurred under this Section, when aggregated with 
the existing indebtedness of the municipality, may not exceed 
the debt limitation provided in Section 8-5-1 of this Code. 
"Financial institution" means any bank, savings bank, savings 
and loan association, or credit union established under the 
laws of the United States, this State, or any other state; or
 
any regional planning commission or joint regional planning 
commission established in accordance with Section 5-14001 or 
Section 5-14003 of the Counties Code; or the Illinois Finance 
Authority.

(Source: P.A. 100-854, eff. 8-14-18.)