[ Search ] [ PDF text ] [ Legislation ]
[ Home ] [ Back ] [ Bottom ]
| [ Introduced ] | [ Engrossed ] | [ Senate Amendment 001 ] |
92_SB0961enr SB961 Enrolled LRB9206424MWcd 1 AN ACT concerning local government debt. 2 Be it enacted by the People of the State of Illinois, 3 represented in the General Assembly: 4 Section 5. The Local Government Debt Reform Act is 5 amended by changing Section 13 as follows: 6 (30 ILCS 350/13) (from Ch. 17, par. 6913) 7 Sec. 13. Certain pledges. A governmental unit may 8 pledge, as security for the payment of its bonds, (1) 9 revenues derived from the operation of any utility system or 10 revenue producing enterprise, (2) moneys deposited or to be 11 deposited into any special fund of the governmental unit, (3) 12 grants or other revenues or taxes expected to be received by 13 the governmental unit from the State or federal government, 14 including taxes imposed by the governmental unit pursuant to 15 grant of authority by the State, such as sales or use taxes 16 or utility taxes, (4) special assessments to be collected 17 with respect to a local improvement financed with the 18 proceeds of bonds, or (5) payments to be made by another 19 governmental unit pursuant to a service, user or other 20 similar agreement with such governmental unit. 21 Any such pledge made by a governmental unit shall be 22 valid and binding from the time such pledge is made. The 23 revenues, moneys and other funds so pledged and thereafter 24 received by the governmental unit shall immediately be 25 subject to the lien of such pledge without any physical 26 delivery thereof or further act; and, subject only to the 27 provisions of prior agreements, the lien of such pledge shall 28 be valid and binding as against all parties having claims of 29 any kind in tort, contract or otherwise against the 30 governmental unit irrespective of whether such parties have 31 notice thereof. Pursuant to any such pledge, a governmental SB961 Enrolled -2- LRB9206424MWcd 1 unit may bind itself to impose rates, charges or taxes to the 2 fullest extent permitted by applicable law. No ordinance, 3 resolution, trust agreement or other instrument by which such 4 pledge is created need be filed or recorded except in the 5 records of the governmental unit. 6 The State Treasurer, the State Comptroller, the 7 Department of Revenue, the Department of Transportation, the 8 State Superintendent of Education, or any Regional 9 Superintendent of Schools shall deposit or cause to be 10 deposited any amount of grants or other revenues or taxes 11 expected to be received by a qualified governmental unit from 12 that official or entity that have been pledged to the payment 13 of bonds of the qualified governmental unit, in accordance 14 with the authorization of the qualified governmental unit, 15 directly into a designated escrow account established by the 16 qualified governmental unit at a trust company or bank having 17 trust powers. The ordinance authorizing that disposition 18 shall, within 10 days after adoption by the governing body of 19 the qualified governmental unit, be filed with the official 20 or entity having custody of the pledged grants or other 21 revenues or taxes. 22 For the purposes of this Section, "qualified governmental 23 unit" means a governmental unit (i) that has issued not less 24 than $6,000,000 principal amount of bonds, including the 25 principal amount of bonds to be secured by the deposit into 26 the designated escrow account, during the 24 months preceding 27 the adoption of the ordinance authorizing the deposit, (ii) 28 whose bonds secured by the deposit into the designated escrow 29 account are rated without regard to any credit enhancement 30 within the 3 highest general rating classifications 31 established by a rating service of nationally recognized 32 expertise in rating bonds of states and political 33 subdivisions of states, (iii) that has received the 34 Certificate of Achievement for Excellence in Financial SB961 Enrolled -3- LRB9206424MWcd 1 Reporting from the Government Finance Officers Association or 2 the equivalent award from the Association of School Business 3 Officials International during the 24 months preceding the 4 adoption of the ordinance authorizing the deposit, or (iv) 5 that represents a population in excess of 300,000. 6 (Source: P.A. 91-868, eff. 6-22-00.) 7 Section 99. Effective date. This Act takes effect upon 8 becoming law.