HB2584ham001 100TH GENERAL ASSEMBLY

Rep. Anthony DeLuca

Filed: 4/24/2017

10000HB2584ham001 LRB100 10569 MLM 24922 a

AMENDMENT TO HOUSE BILL 2584

AMENDMENT NO. ______. Amend House Bill 2584 by replacing everything after the enacting clause with the following:

"Section 5. The Local Government Debt Reform Act is amended by adding Section 13.1 as follows:

(30 ILCS 350/13.1 new)

Sec. 13.1. Statutory lien for bonds.

(a) As used in this Section, "statutory lien" shall have the meaning given to that term under 11 U.S.C. 101(53) of the federal Bankruptcy Code.

(b) All bonds, including general obligation bonds and revenue bonds heretofore and hereafter issued and sold under this Act, home rule powers, or related laws, issued by a governmental unit shall be secured by a statutory lien on all revenues received, or entitled to be received, pursuant to (i) the levy of taxes supporting payment of the bonds and (ii) the assessment of user fees, rates, or other charges supporting payment of the bonds; provided, however, that this Section shall have no force or effect with respect to bonds issued by a governmental unit that are payable primarily from payments to be made by a private person or private entity pursuant to a loan or lease arrangement with the governmental unit. The statutory lien shall automatically attach from the time the bonds are issued without further action or authorization by the governing authority of the governmental unit. The statutory lien shall be valid and binding from the time the bonds are executed and delivered without any physical delivery thereof or further act required, and shall be a first priority lien unless the bonds, or the statutes or documents authorizing the bonds or providing a source of payment or security for those bonds, shall otherwise provide, and the taxes, user fees, rates, or other charges supporting payment of the bonds shall not be used for other purposes until the bonds are paid in full unless the bonds, or the statutes or documents authorizing the bonds or providing a source of payment or security for those bonds, shall otherwise provide.

The revenues received, or entitled to be received, from the following shall be immediately subject to the statutory lien, and the statutory lien shall automatically attach to the revenues and be effective, binding, and enforceable against the governmental unit or its successors, transferees, and creditors, and all others asserting rights therein or having claims of any kind in tort, contract, or otherwise against the governmental unit, irrespective of whether those parties have notice of the lien and without the need for any physical delivery, recordation, filing, or further act: (i) the levy of taxes supporting payment of the bonds, and (ii) the assessment of user fees, rates, or other charges supporting payment of the bonds. In addition, bonds issued by a governmental unit under this Act or related laws, including bonds issued by a governmental unit with home rule powers, shall have all of the protection afforded to special revenue bonds under the federal Bankruptcy Code.

Section 99. Effective date. This Act takes effect upon becoming law.".