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Public Act 92-0078
SB961 Enrolled LRB9206424MWcd
AN ACT concerning local government debt.
Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
Section 5. The Local Government Debt Reform Act is
amended by changing Section 13 as follows:
(30 ILCS 350/13) (from Ch. 17, par. 6913)
Sec. 13. Certain pledges. A governmental unit may
pledge, as security for the payment of its bonds, (1)
revenues derived from the operation of any utility system or
revenue producing enterprise, (2) moneys deposited or to be
deposited into any special fund of the governmental unit, (3)
grants or other revenues or taxes expected to be received by
the governmental unit from the State or federal government,
including taxes imposed by the governmental unit pursuant to
grant of authority by the State, such as sales or use taxes
or utility taxes, (4) special assessments to be collected
with respect to a local improvement financed with the
proceeds of bonds, or (5) payments to be made by another
governmental unit pursuant to a service, user or other
similar agreement with such governmental unit.
Any such pledge made by a governmental unit shall be
valid and binding from the time such pledge is made. The
revenues, moneys and other funds so pledged and thereafter
received by the governmental unit shall immediately be
subject to the lien of such pledge without any physical
delivery thereof or further act; and, subject only to the
provisions of prior agreements, the lien of such pledge shall
be valid and binding as against all parties having claims of
any kind in tort, contract or otherwise against the
governmental unit irrespective of whether such parties have
notice thereof. Pursuant to any such pledge, a governmental
unit may bind itself to impose rates, charges or taxes to the
fullest extent permitted by applicable law. No ordinance,
resolution, trust agreement or other instrument by which such
pledge is created need be filed or recorded except in the
records of the governmental unit.
The State Treasurer, the State Comptroller, the
Department of Revenue, the Department of Transportation, the
State Superintendent of Education, or any Regional
Superintendent of Schools shall deposit or cause to be
deposited any amount of grants or other revenues or taxes
expected to be received by a qualified governmental unit from
that official or entity that have been pledged to the payment
of bonds of the qualified governmental unit, in accordance
with the authorization of the qualified governmental unit,
directly into a designated escrow account established by the
qualified governmental unit at a trust company or bank having
trust powers. The ordinance authorizing that disposition
shall, within 10 days after adoption by the governing body of
the qualified governmental unit, be filed with the official
or entity having custody of the pledged grants or other
revenues or taxes.
For the purposes of this Section, "qualified governmental
unit" means a governmental unit (i) that has issued not less
than $6,000,000 principal amount of bonds, including the
principal amount of bonds to be secured by the deposit into
the designated escrow account, during the 24 months preceding
the adoption of the ordinance authorizing the deposit, (ii)
whose bonds secured by the deposit into the designated escrow
account are rated without regard to any credit enhancement
within the 3 highest general rating classifications
established by a rating service of nationally recognized
expertise in rating bonds of states and political
subdivisions of states, (iii) that has received the
Certificate of Achievement for Excellence in Financial
Reporting from the Government Finance Officers Association or
the equivalent award from the Association of School Business
Officials International during the 24 months preceding the
adoption of the ordinance authorizing the deposit, or (iv)
that represents a population in excess of 300,000.
(Source: P.A. 91-868, eff. 6-22-00.)
Section 99. Effective date. This Act takes effect upon
becoming law.
Passed in the General Assembly April 26, 2001.
Approved July 12, 2001.
Effective July 12, 2001.
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