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.