|
Rep. Anthony DeLuca
Filed: 4/24/2017
| | 10000HB2584ham001 | | LRB100 10569 MLM 24922 a |
|
|
| 1 | | AMENDMENT TO HOUSE BILL 2584
|
| 2 | | AMENDMENT NO. ______. Amend House Bill 2584 by replacing |
| 3 | | everything after the enacting clause with the following:
|
| 4 | | "Section 5. The Local Government Debt Reform Act is amended |
| 5 | | by adding Section 13.1 as follows:
|
| 6 | | (30 ILCS 350/13.1 new) |
| 7 | | Sec. 13.1. Statutory lien for bonds. |
| 8 | | (a) As used in this Section, "statutory lien" shall have |
| 9 | | the meaning given to that term under 11 U.S.C. 101(53) of the |
| 10 | | federal Bankruptcy Code. |
| 11 | | (b) All bonds, including general obligation bonds and |
| 12 | | revenue bonds heretofore and hereafter issued and sold under |
| 13 | | this Act, home rule powers, or related laws, issued by a |
| 14 | | governmental unit shall be secured by a statutory lien on all |
| 15 | | revenues received, or entitled to be received, pursuant to (i) |
| 16 | | the levy of taxes supporting payment of the bonds and (ii) the |
|
| | 10000HB2584ham001 | - 2 - | LRB100 10569 MLM 24922 a |
|
|
| 1 | | assessment of user fees, rates, or other charges supporting |
| 2 | | payment of the bonds; provided, however, that this Section |
| 3 | | shall have no force or effect with respect to bonds issued by a |
| 4 | | governmental unit that are payable primarily from payments to |
| 5 | | be made by a private person or private entity pursuant to a |
| 6 | | loan or lease arrangement with the governmental unit. The |
| 7 | | statutory lien shall automatically attach from the time the |
| 8 | | bonds are issued without further action or authorization by the |
| 9 | | governing authority of the governmental unit. The statutory |
| 10 | | lien shall be valid and binding from the time the bonds are |
| 11 | | executed and delivered without any physical delivery thereof or |
| 12 | | further act required, and shall be a first priority lien unless |
| 13 | | the bonds, or the statutes or documents authorizing the bonds |
| 14 | | or providing a source of payment or security for those bonds, |
| 15 | | shall otherwise provide, and the taxes, user fees, rates, or |
| 16 | | other charges supporting payment of the bonds shall not be used |
| 17 | | for other purposes until the bonds are paid in full unless the |
| 18 | | bonds, or the statutes or documents authorizing the bonds or |
| 19 | | providing a source of payment or security for those bonds, |
| 20 | | shall otherwise provide. |
| 21 | | The revenues received, or entitled to be received, from the |
| 22 | | following shall be immediately subject to the statutory lien, |
| 23 | | and the statutory lien shall automatically attach to the |
| 24 | | revenues and be effective, binding, and enforceable against the |
| 25 | | governmental unit or its successors, transferees, and |
| 26 | | creditors, and all others asserting rights therein or having |
|
| | 10000HB2584ham001 | - 3 - | LRB100 10569 MLM 24922 a |
|
|
| 1 | | claims of any kind in tort, contract, or otherwise against the |
| 2 | | governmental unit, irrespective of whether those parties have |
| 3 | | notice of the lien and without the need for any physical |
| 4 | | delivery, recordation, filing, or further act: (i) the levy of |
| 5 | | taxes supporting payment of the bonds, and (ii) the assessment |
| 6 | | of user fees, rates, or other charges supporting payment of the |
| 7 | | bonds. In addition, bonds issued by a governmental unit under |
| 8 | | this Act or related laws, including bonds issued by a |
| 9 | | governmental unit with home rule powers, shall have all of the |
| 10 | | protection afforded to special revenue bonds under the federal |
| 11 | | Bankruptcy Code.
|
| 12 | | Section 99. Effective date. This Act takes effect upon |
| 13 | | becoming law.".
|