Illinois General Assembly - Full Text of Public Act 095-0366
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Public Act 095-0366




Public Act 095-0366
SB0290 Enrolled LRB095 06244 HLH 28913 b

    AN ACT concerning local government.
    Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
    Section 5. The Hospital District Law is amended by adding
Section 21.3 as follows:
    (70 ILCS 910/21.3 new)
    Sec. 21.3. Lines of credit.
    (a) A hospital district may enter into a line of credit
secured by and payable from one or more of these sources:
property taxes, unencumbered accounts receivable, or other
revenues, in an amount not to exceed the greater of the
following amounts if the source is pledged: (i) 85% of the
amount of property taxes most recently levied, (ii) 85% of
unencumbered accounts receivable of the district (in
substantially the manner set forth in Section 21.1 of this
Act), (iii) 85% of other revenues (in substantially the manner
set forth in Section 21.2 of this Act), or (iv) 85% of amounts
unpaid under third-party reimbursement or payment programs
(including but not limited to State or federal Medicare or
Medicaid payments or programs). All moneys so borrowed shall be
repaid within 24 months.
    (b) Before establishing a line of credit under this
Section, the hospital district shall authorize the line of
credit by ordinance. The ordinance shall set forth facts
demonstrating the need for the line of credit, state the amount
to be borrowed, establish a maximum interest rate limit not to
exceed the maximum rate authorized by the Bond Authorization
Act, and provide a date by which the borrowed funds shall be
repaid. The ordinance shall authorize and direct the relevant
officials to make arrangements to set apart and hold, as
applicable, the moneys that will be used to repay the
borrowing. In addition, the ordinance may authorize the
relevant officials to make partial repayments on the line of
credit as the moneys become available and may contain any other
terms, restrictions, or limitations desirable or necessary to
give effect to this Section 21.3.
    Section 99. Effective date. This Act takes effect upon
becoming law.

Effective Date: 8/23/2007