(65 ILCS 5/7-2-9) (from Ch. 24, par. 7-2-9)
Sec. 7-2-9.
Each borough shall retain and pay any debt or liability which
exists immediately prior to the formation of the united city. The title to
and revenue from all property of each borough is transferred to the united
city, except so much thereof as may be necessary to pay any debt or
liability which existed immediately prior to the formation of the united
city. With respect to the property transferred, the united city may
consolidate, interconnect and manage any municipally owned facility,
utility, water, sewerage or sewerage disposal system, provided that such
consolidation, interconnection or management does not adversely affect the
rights of any existing bond holders. If the bonds of any municipality,
before it becomes a borough, have been registered with the State Auditor of
Public Accounts, as required by law, the county clerk of the county in
which the borough is located shall certify forthwith the fact of the
formation of the union to the Auditor. The Auditor shall continue to
certify any existing tax rate, and the county clerk shall continue to
extend such existing tax rate upon the taxable property of the particular
borough alone until the payment of the principal or interest of the bonds
of the borough is complete. Nothing in this section shall be construed to
prevent the united city from incurring indebtedness for the city as a whole
after its formation.
(Source: Laws 1965, p. 1267.)
|