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| | HB3340 Enrolled | | LRB103 30195 AWJ 56623 b |
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1 | | AN ACT concerning local government.
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2 | | Be it enacted by the People of the State of Illinois,
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3 | | represented in the General Assembly:
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4 | | Section 5. The Illinois Municipal Code is amended by |
5 | | changing Section 8-1-3.1 as follows:
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6 | | (65 ILCS 5/8-1-3.1) (from Ch. 24, par. 8-1-3.1)
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7 | | Sec. 8-1-3.1. Borrowing from financial institutions. The |
8 | | corporate authorities may borrow money for corporate purposes |
9 | | from one fund
for the use of another fund providing such |
10 | | borrowing shall be repaid within
the current fiscal year.
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11 | | The corporate authorities may also borrow money from any |
12 | | bank or other
financial institution provided such money shall |
13 | | be repaid within 10 years
from the time the money is borrowed. |
14 | | The mayor or president of the municipality, as the case may be, |
15 | | shall execute a promissory note or similar debt instrument, |
16 | | but not a bond, to evidence the indebtedness incurred by the |
17 | | borrowing. The obligation to make the payments due under the |
18 | | promissory note or other debt instrument shall be a lawful |
19 | | direct general obligation of the municipality payable from the |
20 | | general funds of the municipality and such other sources of |
21 | | payment as are otherwise lawfully available. The promissory |
22 | | note or other debt instrument shall be authorized by an |
23 | | ordinance passed by the corporate authorities and shall be |