HB2584 EngrossedLRB100 10569 MLM 20786 b

1    AN ACT concerning finance.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 5. The Local Government Debt Reform Act is amended
5by 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
9the meaning given to that term under 11 U.S.C. 101(53) of the
10federal Bankruptcy Code.
11    (b) All bonds, including general obligation bonds and
12revenue bonds heretofore and hereafter issued and sold under
13this Act, home rule powers, or related laws, issued by a local
14public entity shall be secured by a statutory lien on all
15revenues received, or entitled to be received, pursuant to (i)
16the levy of taxes supporting payment of the bonds and (ii) the
17assessment of user fees, rates, or other charges supporting
18payment of the bonds. The statutory lien shall automatically
19attach from the time the bonds are issued without further
20action or authorization by the governing authority of the local
21public entity. The statutory lien shall be valid and binding
22from the time the bonds are executed and delivered without any
23physical delivery thereof or further act required, and shall be

 

 

HB2584 Engrossed- 2 -LRB100 10569 MLM 20786 b

1a first priority lien unless the bonds shall otherwise provide,
2and the taxes, user fees, rates, or other charges supporting
3payment of the bonds shall not be used for other purposes until
4the bonds are paid in full unless the bonds shall otherwise
5provide.
6    The revenues received, or entitled to be received, from the
7following shall be immediately subject to the statutory lien,
8and the statutory lien shall automatically attach to the
9revenues and be effective, binding, and enforceable against the
10local public entity or its successors, transferees, and
11creditors, and all others asserting rights therein or having
12claims of any kind in tort, contract, or otherwise against the
13local public entity, irrespective of whether those parties have
14notice of the lien and without the need for any physical
15delivery, recordation, filing, or further act: (i) the levy of
16taxes supporting payment of the bonds and (ii) the assessment
17of user fees, rates, or other charges supporting payment of the
18bonds. In addition, bonds issued by a local public entity under
19this Act or related laws, including bonds issued by a local
20public entity with home rule powers, shall have all of the
21protection afforded to special revenue bonds under the federal
22Bankruptcy Code.
 
23    Section 99. Effective date. This Act takes effect upon
24becoming law.