Public Act 90-0706 of the 90th General Assembly
Public Act 90-0706
HB3081 Enrolled LRB9009642KDks
AN ACT to amend the Illinois Municipal Code.
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 Sections 8-4-1, 11-74.5-2, 11-74.5-3, and 11-74.5-5
as follows:
(65 ILCS 5/8-4-1) (from Ch. 24, par. 8-4-1)
Sec. 8-4-1. No bonds shall be issued by the corporate
authorities of any municipality until the question of
authorizing such bonds has been submitted to the electors of
that municipality, and approved by a majority of the electors
voting upon that question. The clerk shall certify the
proposition of the corporate authorities to the proper
election authority who shall submit the question at an
election in accordance with the general election law.
Notice of any such election shall contain the amount of
the bond issue, purpose for which issued, and maximum rate of
interest.
However, without the submission of the question of
issuing bonds to the electors, the corporate authorities of
any municipality may authorize the issuance of any of the
following bonds:
(1) Bonds to refund any existing bonded indebtedness;
(2) Bonds to fund or refund any existing judgment
indebtedness;
(3) In any municipality of less than 500,000 population,
bonds to anticipate the collection of installments of special
assessments and special taxes against property owned by the
municipality and to anticipate the collection of the amount
apportioned to the municipality as public benefits under
Article 9;
(4) Bonds issued by any municipality under Sections
8-4-15 through 8-4-23, 11-23-1 through 11-23-12, 11-25-1
through 11-26-6, 11-71-1 through 11-71-10, 11-74.4-1 through
11-74.4-11, 11-74.5-1 through 11-74.5-15, 11-94-1 through
11-94-7, 11-102-1 through 11-102-10, 11-103-11 through
11-103-15, 11-118-1 through 11-118-6, 11-119-1 through
11-119-5, 11-129-1 through 11-129-7, 11-133-1 through
11-133-4, 11-139-1 through 11-139-12, 11-141-1 through
11-141-18 of this Code or 10-801 through 10-808 of the
Illinois Highway Code, as amended;
(5) Bonds issued by the board of education of any school
district under the provisions of Sections 34-30 through 34-36
of The School Code, as amended;
(6) Bonds issued by any municipality under the
provisions of Division 6 of this Article 8; and by any
municipality under the provisions of Division 7 of this
Article 8; or under the provisions of Sections 11-121-4 and
11-121-5;
(7) Bonds to pay for the purchase of voting machines by
any municipality that has adopted Article 24 of The Election
Code, approved May 11, 1943, as amended;
(8) Bonds issued by any municipality under Sections 15
and 46 of the "Environmental Protection Act", approved June
29, 1970;
(9) Bonds issued by the corporate authorities of any
municipality under the provisions of Section 8-4-25 of this
Article 8;
(10) Bonds issued under Section 8-4-26 of this Article 8
by any municipality having a board of election commissioners;
(11) Bonds issued under the provisions of "An Act to
provide the manner of levying or imposing taxes for the
provision of special services to areas within the boundaries
of home rule units and nonhome rule municipalities and
counties", approved September 21, 1973;
(12) Bonds issued under Section 8-5-16 of this Code;
(13) Bonds to finance the cost of the acquisition,
construction or improvement of water or wastewater treatment
facilities mandated by an enforceable compliance schedule
developed in connection with the federal Clean Water Act or a
compliance order issued by the United States Environmental
Protection Agency or the Illinois Pollution Control Board;
provided that such bonds are authorized by an ordinance
adopted by a three-fifths majority of the corporate
authorities of the municipality issuing the bonds which
ordinance shall specify that the construction or improvement
of such facilities is necessary to alleviate an emergency
condition in such municipality;
(14) Bonds issued by any municipality pursuant to
Section 11-113.1-1;
(15) Bonds issued under Sections 11-74.6-1 through
11-74.6-45, the Industrial Jobs Recovery Law of this Code.
(Source: P.A. 88-537.)
(65 ILCS 5/11-74.5-2) (from Ch. 24, par. 11-74.5-2)
Sec. 11-74.5-2. Whenever used in this Division:
(a) "Appraised value" means the fair market value of a
home determined in accordance with generally accepted
procedures and standards applicable to the appraisal of real
property.
(b) "Bonds" means any revenue bonds authorized under
this Division and payable as provided hereunder.
(c) "Corporate authorities" means the corporate
authorities as defined in this Illinois Municipal Code.
(d) "Home" means real property and improvements thereon
located within the municipality consisting of not more than 4
dwelling units, including but not limited to, condominium
units owned by one mortgagor who occupies or intends to
occupy one of such units.
(e) "Home mortgage loan" means an interest bearing loan
to a mortgagor evidenced by a promissory note and secured by
a first mortgage on a home, purchased or originated in
accordance with this Division made for the purpose of
acquiring a home having an appraised value or a purchase
price, whichever is less, of not less than the minimum home
value and less than the maximum home value.
(f) "Lender" means any lending institution participating
in a residential housing finance plan as the originator of
home mortgage loans or as a servicing agent for home mortgage
loans.
(g) "Lending institution" means any bank, bank holding
company, credit union, trust company, savings bank, national
banking association, savings and loan association, building
and loan association, mortgage banker or other financial
institution which customarily provides service or otherwise
aids in the financing of home mortgages, or any holding
company for any of the foregoing.
(h) "Maximum home value" means the amount determined by
the corporate authorities.
(i) "Minimum home value" means the amount determined by
the corporate authorities.
(j) "Mortgagor" means a person of low or moderate income
and who has received or qualifies to receive a home mortgage
loan on a home.
(k) "Municipality" means a municipality as defined in
this Illinois Municipal Code.
(l) "Ordinance" means an ordinance adopted and approved
by the corporate authorities of a municipality.
(m) "Purchase price" means the actual consideration paid
to the seller of a home.
(n) "Person" means a natural person or persons or a
trust, provided that such trust is for the benefit of a
natural person or members of such person's immediate family.
(o) "Participation commitment" means any undertaking or
agreement by a lending institution to participate in the
implementation of a residential housing finance plan.
(p) "Persons of low or moderate income" means a person
or family (consisting of one or more persons all of whom
occupy or will occupy the home) whose aggregate gross income
including the gross income of any co-signer or guarantor of
the promissory note made in connection with the making of a
home mortgage loan does not exceed a maximum amount to be
established by the corporate authorities and determined in
accordance with appropriate criteria, rules and regulations,
approved by the corporate authorities in connection with the
implementation of a residential housing finance plan.
(q) "Residential housing finance plan" means a program
implemented under this Division by a municipality to assist
persons of low or moderate income in acquiring safe, decent
and sanitary housing which they can afford.
(r) "Trustee" means any State or national bank or trust
company, having trust powers, located within or outside the
State of Illinois, which may be appointed to act in any
capacity with respect to a residential housing finance plan
and the issuance of bonds to finance such plan whether
designated as a trustee, custodian or administrator.
(Source: P.A. 81-580.)
(65 ILCS 5/11-74.5-3) (from Ch. 24, par. 11-74.5-3)
Sec. 11-74.5-3. In addition to powers which a
municipality may now have, municipalities have the following
powers:
(a) To acquire, and to contract and enter into advance
commitments to acquire, directly or indirectly, home
mortgages owned or originated by lending institutions at such
prices and upon such other terms and conditions as shall be
determined by such municipality or trustee as it may
designate as its agent;
(b) To make and execute contracts with lending
institutions for the origination and servicing of home
mortgage loans on behalf of a municipality and to pay the
reasonable value of services rendered in accordance with such
contracts;
(c) To make loans to lenders to enable such lenders to
make home mortgage loans in accordance with this Division;
(d) To establish, by rules or regulations, by ordinances
relating to any issuance of bonds or in any financing
documents relating to such issuance, such standards and
requirements applicable to the purchase of home mortgage
loans or the origination of home mortgage loans or loans to
lenders as such municipality deems necessary or desirable to
effectuate the public purposes of this Act, including but not
limited to: (i) the time within which lending institutions
must make participation commitments and make disbursements
for home mortgage loans; (ii) the terms and conditions of
home mortgage loans to be acquired or originated; (iii) the
standards and criteria to be applied by the municipality in
defining persons of low or moderate income; (iv) the amounts
and types of insurance coverage required on homes, home
mortgage loans and bonds; (v) the representations and
warranties to be required of persons and lending institutions
as evidence of compliance with such standards and
requirements; (vi) restrictions as to interest rate and other
terms of home mortgage loans or the return realized therefrom
by lending institutions; (vii) the type and amount of
collateral security to be provided to assure repayment of any
loans to lenders by such municipalities and to assure
repayment of bonds; and (viii) any other matters related to
the purchase or origination of home mortgage loans or the
making of loans to lenders as shall be deemed relevant or
necessary by the corporate authorities of such municipality.
(e) To require from each lending institution from which
home mortgage loans are to be purchased or which will
originate home mortgage loans on behalf of the municipality
or from lenders to which loans are made, the submission, at
the time of making participation commitments, of evidence
satisfactory to such municipality of the ability and
intention of such lending institution to make home mortgage
loans, and the submission, within the time specified by such
municipality for making disbursements for home mortgage
loans, of evidence satisfactory to such municipality of the
making of home mortgage loans and of compliance with any
standards and requirements established by such municipality.
(f) To require that a lending institution or lender
furnish, prior to or concurrently with the delivery of any
participation commitment by a lending institution, a
commitment fee in the form of a cash deposit, letter of
credit, promissory note, surety bond or other instrument
approved by the corporate authorities executed by or on
behalf of such lending institution, in an amount to be
determined by the corporate authorities.
(g) To issue its bonds to defray, in whole or in part
(i) the cost of acquiring or originating home mortgage loans
or making loans to lenders in order to enable them to make
home mortgage loans; (ii) if deemed necessary or advisable,
the costs of paying interest on bonds during a reasonable
period necessary to acquire or originate the home mortgage
loans or to make the loans to lender, (iii) the costs of
studies and surveys, insurance premiums, underwriting fees,
legal, accounting and marketing services incurred in
connection with the issuance and sale of such bonds,
including amounts required to establish reasonably necessary
bond and interest reserve accounts, and trustee, custodian
and rating agency fees; (iv) the costs of reasonable
reserves; and (v) (iv) such other costs as are reasonably
related to the foregoing.
(h) To authorize the sale or other disposition of any
home mortgage loan, in whole or in part, upon such terms, at
such prices and times, and from time to time, as may be
necessary to assure that the revenues and receipts to be
derived with respect to the home mortgage loans, together
with any insurance proceeds, funds held in reserve accounts
and earnings thereon, shall produce and provide revenues and
receipts at least sufficient to provide for the prompt
payment of the principal of, redemption premiums, if any, and
interest at maturity of all bonds issued pursuant to this
Division or to otherwise authorize the sale or other
disposition of any home mortgage loan after the bonds have
been paid or deemed to be paid.
(i) To pledge any revenues and receipts to be received
from any home mortgage loans to the punctual payment of bonds
authorized under this Division, and the interest and
redemption premiums, if any, thereon.
(j) To mortgage, pledge or grant security interests in
any home mortgage loans, notes or other property in favor of
the holder or holders of bonds issued therefor.
(k) to issue its bonds in such amount as may be
necessary (and not limited by the amount of bonds refunded)
for the purpose of refunding, in whole or in part at any
time, bonds theretofore issued by such municipality under
authority of this Division, the proceeds of which refunding
bonds may be used, at the discretion of the corporate
authorities, for paying bonds at maturity, calling bonds for
payment and paying bonds prior to maturity, or for deposit
into an escrow or trust fund in advance of maturity of bonds
to be held for payment thereof at maturity or earlier.
(l) To appoint or designate a trustee or trustees for
the benefit of the bondholders and to delegate and assign
thereto, insofar as it may lawfully do so, its rights, duties
and responsibilities with respect to carrying out and
enforcing the terms and provisions of its residential housing
finance plan.
(m) To provide for and authorize the use and disposition
of any funds remaining in the possession of the municipality
(or trustees) following payment and retirement of, or
following the making of provision for the payment of, the
bonds of a designated series issued pursuant to this
Division.
(n) To make and execute contracts and other instruments
necessary or convenient to the exercise of any of the powers
granted herein.
(Source: P.A. 84-550.)
(65 ILCS 5/11-74.5-5) (from Ch. 24, par. 11-74.5-5)
Sec. 11-74.5-5. The exercise of any or all powers granted
by this Division shall be authorized and the bonds shall be
authorized to be issued under this Division for the purposes
set forth in this Act, by an ordinance adopted by the
corporate authorities of a municipality which shall take
effect immediately upon adoption. Any such ordinance shall
set forth a finding and declaration (i) of the public purpose
therefor and (ii) that such ordinance is adopted pursuant to
this Division, which finding and declaration shall be
conclusive evidence of the existence and sufficiency of the
public purpose and of the power to carry out and give effect
to such public purposes.
After the adoption of an ordinance as provided in this
Section, the corporate Authorities shall cause to be
submitted to the voters of the Municipality the question:
Shall the ordinance adopted by the Corporate Authorities
providing for the sale of revenue bonds for financing the
purchase of homes in (name of municipality) take effect?
If a majority of those voting on the question vote
affirmatively, the ordinance takes effect and the bonds shall
be sold as provided in the ordinance. If a majority of those
voting on the question vote negatively, the ordinance shall
not take effect.
The bonds shall bear interest at such rate or rates
(subject only to the limitations set forth in paragraph (a)
of Section 11-74.5-4 and without regard to any other law
pertaining to interest rate limitations), may be payable at
such time or times, may be in one or more series, may bear
such date or dates, may mature at such time or times not
exceeding 40 years from their respective dates, may be
payable in such medium of payment at such place or places,
may carry such registration privileges, may be subject to
such terms of redemption at such premiums, may be executed in
such manner, may contain such terms, covenants and conditions
and may be in such form, either coupon or registered, as the
corporate authorities shall provide. The bonds may be sold
at public or private sale at such price, in such manner and
upon such terms as the corporate authorities may determine.
Pending the preparation of definitive bonds and in
anticipation thereof, interim notes, in such form and with
such provisions as may be authorized by the corporate
authorities, may be issued to the purchaser or purchasers of
bonds sold pursuant to this Division. The bonds and interim
notes shall be deemed to be securities and negotiable
instruments within the meaning and for all purposes of the
Uniform Commercial Code.
(Source: P.A. 81-580.)
(65 ILCS 5/11-74.5-4 rep.)
Section 10. The Illinois Municipal Code is amended by
repealing Section 11-74.5-4.
Section 99. Effective date. This Act takes effect upon
becoming law.