Rep. Anthony DeLuca

Filed: 4/24/2017

 

 


 

 


 
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1
AMENDMENT TO HOUSE BILL 2584

2    AMENDMENT NO. ______. Amend House Bill 2584 by replacing
3everything after the enacting clause with the following:
 
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
14governmental unit 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

 

 

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1assessment of user fees, rates, or other charges supporting
2payment of the bonds; provided, however, that this Section
3shall have no force or effect with respect to bonds issued by a
4governmental unit that are payable primarily from payments to
5be made by a private person or private entity pursuant to a
6loan or lease arrangement with the governmental unit. The
7statutory lien shall automatically attach from the time the
8bonds are issued without further action or authorization by the
9governing authority of the governmental unit. The statutory
10lien shall be valid and binding from the time the bonds are
11executed and delivered without any physical delivery thereof or
12further act required, and shall be a first priority lien unless
13the bonds, or the statutes or documents authorizing the bonds
14or providing a source of payment or security for those bonds,
15shall otherwise provide, and the taxes, user fees, rates, or
16other charges supporting payment of the bonds shall not be used
17for other purposes until the bonds are paid in full unless the
18bonds, or the statutes or documents authorizing the bonds or
19providing a source of payment or security for those bonds,
20shall otherwise provide.
21    The revenues received, or entitled to be received, from the
22following shall be immediately subject to the statutory lien,
23and the statutory lien shall automatically attach to the
24revenues and be effective, binding, and enforceable against the
25governmental unit or its successors, transferees, and
26creditors, and all others asserting rights therein or having

 

 

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1claims of any kind in tort, contract, or otherwise against the
2governmental unit, irrespective of whether those parties have
3notice of the lien and without the need for any physical
4delivery, recordation, filing, or further act: (i) the levy of
5taxes supporting payment of the bonds, and (ii) the assessment
6of user fees, rates, or other charges supporting payment of the
7bonds. In addition, bonds issued by a governmental unit under
8this Act or related laws, including bonds issued by a
9governmental unit with home rule powers, shall have all of the
10protection afforded to special revenue bonds under the federal
11Bankruptcy Code.
 
12    Section 99. Effective date. This Act takes effect upon
13becoming law.".