HB3340 EnrolledLRB103 30195 AWJ 56623 b

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

 

 

HB3340 Enrolled- 2 -LRB103 30195 AWJ 56623 b

1valid whether or not an appropriation with respect to that
2ordinance is included in any annual or supplemental
3appropriation adopted by the corporate authorities. The
4indebtedness incurred under this Section, when aggregated with
5the existing indebtedness of the municipality, may not exceed
6the debt limitation provided in Section 8-5-1 of this Code.
7"Financial institution" means any bank, savings bank, savings
8and loan association, or credit union established under the
9laws of the United States, this State, or any other state; or
10any regional planning commission or joint regional planning
11commission established in accordance with Section 5-14001 or
12Section 5-14003 of the Counties Code; or the Illinois Finance
13Authority.
14(Source: P.A. 100-854, eff. 8-14-18.)