Illinois General Assembly - Full Text of Public Act 096-1047
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Public Act 096-1047




Public Act 096-1047
HB5540 EnrolledLRB096 15694 RLJ 30930 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 Illinois Municipal Code is amended by
changing Section 8-1-3.1 as follows:
    (65 ILCS 5/8-1-3.1)  (from Ch. 24, par. 8-1-3.1)
    Sec. 8-1-3.1. Borrowing from financial institutions. The
corporate authorities may borrow money for corporate purposes
from one fund for the use of another fund providing such
borrowing shall be repaid within the current fiscal year.
    The corporate authorities may also borrow money from any
bank or other financial institution provided such money shall
be repaid within 10 years from the time the money is borrowed.
The mayor or president of the municipality, as the case may be,
shall execute a promissory note or similar debt instrument, but
not a bond, to evidence the indebtedness incurred by the
borrowing. The obligation to make the payments due under the
promissory note or other debt instrument shall be a lawful
direct general obligation of the municipality payable from the
general funds of the municipality and such other sources of
payment as are otherwise lawfully available. The promissory
note or other debt instrument shall be authorized by an
ordinance passed by the corporate authorities and shall be
valid whether or not an appropriation with respect to that
ordinance is included in any annual or supplemental
appropriation adopted by the corporate authorities. The
indebtedness incurred under this Section, when aggregated with
the existing indebtedness of the municipality, may not exceed
the debt limitation provided in Section 8-5-1 of this Code.
"Financial institution" means any bank subject to the "Illinois
Banking Act", any savings and loan association subject to the
"Illinois Savings and Loan Act of 1985", and any federally
chartered commercial bank or savings and loan association
organized and operated in this State pursuant to the laws of
the United States, and any regional planning commission or
joint regional planning commission established in accordance
with Section 5-14001 or Section 5-14003 of the Counties Code.
(Source: P.A. 95-693, eff. 11-5-07.)
    Section 99. Effective date. This Act takes effect upon
becoming law.

Effective Date: 7/14/2010