(70 ILCS 2605/10.1) (from Ch. 42, par. 329a)
Sec. 10.1.
Every sanitary district shall also have the power to construct a
sewerage system or drainage system to serve a particular locality within
its corporate limits or to extend or improve an existing sewerage system or
drainage system, for the purpose of serving a particular locality within
the sanitary district not theretofore served by its existing sewerage
system or drainage system, and to pay the cost thereof by the issuance and
sale of revenue bonds of the sanitary district, payable solely from the
revenue derived from the operation of the sewerage system or drainage
system, constructed or acquired for that particular locality, or from the
revenue to be derived from the operation of the improvements and extensions
of an existing system.
These bonds may be issued for maturities not exceeding 40 years from the
date of the bonds and in such amounts as may be necessary to provide
sufficient funds to pay all the costs of the improvement, or extension, or
construction, or acquisition for improvement and extension of the sewerage
system or drainage system, including engineering, legal and other expenses,
together with interest, to a date 6 months subsequent to the estimated date
of completion. These bonds shall bear interest at a rate not exceeding
that permitted by "An Act to authorize public corporations to issue bonds,
other evidences of indebtedness and tax anticipation warrants subject to
interest rate limitations set forth therein", approved May 26, 1970, as
amended, payable semi-annually. Bonds issued under this Act are
negotiable instruments. They shall be executed by the presiding officer and
clerk of the sanitary district, or such other officer or officers as the
trustees may, by resolution, designate, and shall be sealed with the
sanitary district corporate seal. In case any officer whose signature
appears on the bonds or coupons ceases to hold that office before the bonds
are delivered, his signature nevertheless, shall be valid and sufficient
for all purposes, the same as though he had remained in office until the
bonds were delivered. The bonds shall be sold in such manner and upon such
terms as the board of trustees shall determine.
Bonds issued under this section are payable from revenue derived from
the operation of that sewerage system or drainage system or improvement or
extension. These bonds shall not, in any event, constitute an indebtedness
of the sanitary district, within the meaning of any constitutional or
statutory limitation, and it shall be so stated on the face of each bond.
The face of each bond shall also contain a description of the locality for
which that system or improvement or extension is constructed and acquired.
(Source: P.A. 83-591.)
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