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90_SB1282enr
70 ILCS 2405/9 from Ch. 42, par. 308
Amends the Sanitary District Act of 1917. Increases the
amount of money a sanitary district may borrow from banks or
other financial institutions to $25,000,000 (now
$10,000,000). Effective immediately.
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1 AN ACT to amend the Sanitary District Act of 1917 by
2 changing Section 9.
3 Be it enacted by the People of the State of Illinois,
4 represented in the General Assembly:
5 Section 5. The Sanitary District Act of 1917 is amended
6 by changing Section 9 as follows:
7 (70 ILCS 2405/9) (from Ch. 42, par. 308)
8 Sec. 9. Borrowing powers; debt limitation; referendum.
9 (a) The corporation may borrow money for corporate
10 purposes and may issue bonds for those purposes but shall not
11 become indebted in any manner, or for any purpose, to an
12 amount in the aggregate exceeding 5.75% on the valuation of
13 taxable property in the district to be ascertained by the
14 last assessment for State and county taxes before the
15 indebtedness was incurred or, until January 1, 1983, if
16 greater, the sum that is produced by multiplying the
17 district's 1978 equalized assessed valuation by the debt
18 limitation percentage in effect on January 1, 1979.
19 The trustees shall also have the express power to borrow
20 money from banks or other financial institutions, execute a
21 note or notes and a security agreement to secure the payment
22 of the note or notes, and provide security for repayment of
23 the note or notes by pledging district revenues or
24 encumbering district assets. The maximum amount that may be
25 borrowed under this paragraph shall not exceed $25,000,000
26 $10,000,000 for the aggregate of all those notes. The period
27 for repayment of any note shall not exceed 20 years.
28 The trustees shall also have the express power, without
29 referendum, to execute an agreement for a loan from the Water
30 Pollution Control Revolving Fund of the State of Illinois,
31 under the Environmental Protection Act, and to pledge
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1 revenues of the district for the repayment of the loan.
2 (b) Whenever the board of trustees of a district desires
3 to issue bonds under this Section they shall order a
4 referendum to be held in the district on the question. The
5 board shall certify the question to the proper election
6 officials, who shall submit the question at an election in
7 accordance with the general election law. In addition to the
8 requirements of the general election law, the notice of
9 referendum shall state the amount of bonds to be issued. The
10 question shall be in substantially the following form:
11 Shall (name of district) issue bonds in the amount
12 of $(amount)?
13 The votes shall be recorded as "Yes" or "No".
14 The result of the referendum shall be entered in the records
15 of the district. If it appears that a majority of the voters
16 voting at the election on the question have voted in favor of
17 the issue of the bonds, the board of trustees shall order and
18 direct the execution of the bonds for and on behalf of the
19 district. All bonds issued under this Section shall mature in
20 not more than 20 annual installments.
21 (c) The corporation may borrow money for corporate
22 purposes, and may issue bonds for those purposes, without a
23 referendum on the question if the corporation or the board of
24 trustees of the district has been directed, by an order
25 issued by a court of competent jurisdiction or by an
26 administrative agency of the State of Illinois having
27 jurisdiction to issue the order, to abate its discharge of
28 untreated or inadequately treated sewage and if the borrowing
29 is deemed necessary by the board of trustees of the sanitary
30 district to make possible compliance with the order. The
31 amount of money that the corporation may borrow to abate the
32 sewage discharge shall be limited to that required for that
33 purpose plus any reasonable future expansion approved by the
34 court or an administrative agency of the State of Illinois
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1 having jurisdiction. The ordinance providing for the bonds
2 shall set out the fact that the bonds are deemed necessary to
3 make possible compliance with the order and shall be
4 published or posted in the manner provided in this Act for
5 publication or posting of ordinances making appropriations.
6 The ordinance shall be in full force and effect after its
7 adoption and publication or posting as provided in this
8 subsection, notwithstanding any provision in this Act or any
9 other law to the contrary.
10 (Source: P.A. 89-558, eff. 7-26-96.)
11 Section 99. Effective date. This Act takes effect upon
12 becoming law.