SB0279 Engrossed

LRB096 08024 RLJ 18129 b






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    AN ACT concerning local government.

 
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    Be it enacted by the People of the State of Illinois,
 
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represented in the General Assembly:


 
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    Section 5. The Illinois Municipal Code is amended  by 
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changing Section 8-1-3.1 as follows:
 



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



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

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

from the time the money is borrowed.  
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The mayor or president of the municipality, as the case may be, 
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shall execute a promissory note or similar debt instrument, but 
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not a bond, to evidence the indebtedness incurred by the 
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borrowing.  The obligation to make the payments due under the 
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promissory note or other debt instrument shall be a lawful 
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direct general obligation of the municipality payable from the 
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general funds of the municipality and such other sources of 
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payment as are otherwise lawfully available.  The promissory 
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note or other debt instrument shall be authorized by an 
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ordinance passed by the corporate authorities and shall be 
 


 






SB0279 Engrossed
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LRB096 08024 RLJ 18129 b




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valid whether or not an appropriation with respect to that 
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ordinance is included in any annual or supplemental 
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appropriation adopted by the corporate authorities.  The 
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indebtedness incurred under this Section, when aggregated with 
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the existing indebtedness of the municipality, may not exceed 
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the debt limitation provided in Section 8-5-1 of this Code. 
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"Financial institution" means any bank
subject to the "Illinois 
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Banking Act", any savings and loan association
subject to the 
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"Illinois Savings and Loan Act of 1985", and any federally

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chartered commercial bank or savings and loan association 
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organized and
operated in this State pursuant to the laws of 
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the United States, and any regional planning commission or 
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joint regional planning commission established in accordance 
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with Section 5-14001 or Section 5-14003 of the Counties Code.

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(Source: P.A. 95-693, eff. 11-5-07.)

 

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    Section 99. Effective date. This Act takes effect upon 
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becoming law.