SB1430 EngrossedLRB098 08560 OMW 38674 b


  
1    AN ACT concerning local government.
  
 
2    Be it enacted by the People of the State of Illinois,
 
3represented in the General Assembly:
  
 
 
4    Section 5. The Counties Code is amended  by adding Section 
55-1134 as follows:
 
6    (55 ILCS 5/5-1134 new)
7    Sec. 5-1134. Borrowing from financial institutions. The 
8county board of a county may borrow money from any bank or 
9other financial institution provided such money shall be repaid 
10within 2 years from the time the money is borrowed. The county 
11board chairman, county executive, or Cook County Board 
12President, as the case may be, shall execute a promissory note 
13or similar debt instrument, but not a bond, to evidence the 
14indebtedness incurred by the borrowing. The obligation to make 
15the payments due under the promissory note or other debt 
16instrument shall be a lawful direct general obligation of the 
17county payable from the general funds of the county and such 
18other sources of payment as are otherwise lawfully available. 
19The promissory note or other debt instrument shall be 
20authorized by an ordinance passed by the county board and shall 
21be valid whether or not an appropriation with respect to that 
22ordinance is included in any annual or supplemental 
23appropriation adopted by the county board. The indebtedness 
 
 
SB1430 Engrossed- 2 -LRB098 08560 OMW 38674 b

1incurred under this Section, when aggregated with the existing 
2indebtedness of the county, may not exceed any debt limitation 
3otherwise provided for by law. This Section shall not be 
4construed to grant any additional authority to a county to 
5borrow money or to remove any referendum approval required of a 
6county to borrow money. "Financial institution" means any bank 
7subject to the Illinois Banking Act, any savings and loan 
8association subject to the Illinois Savings and Loan Act of 
91985, any savings bank subject to the Savings Bank Act, any 
10credit union subject to the Illinois Credit Union Act, and any 
11federally chartered commercial bank, savings and loan 
12association, savings bank, or credit union organized and 
13operated in this State pursuant to the laws of the United 
14States.
 
 
15    Section 99. Effective date. This Act takes effect upon 
16becoming law.