97TH GENERAL ASSEMBLY
State of Illinois
2011 and 2012
SB3183

 

Introduced 2/1/2012, by Sen. Dave Syverson

 

SYNOPSIS AS INTRODUCED:
 
55 ILCS 5/5-1134 new

    Amends the Counties Code. Provides that the county board of a county may borrow money for county purposes from one fund for the use of another fund, as long as it is repaid within the current fiscal year. Provides that the county board of a county may borrow money from any bank or financial institution, provided that the money shall be repaid within 10 years from the time the money is borrowed. Sets forth requirements concerning the documentation of the loan. Prohibits the indebtedness incurred, when aggregated with the existing indebtedness of the county, from exceeding the debt limitation otherwise provided for by law. Defines "financial institution". Effective immediately.


LRB097 19643 KMW 64897 b

FISCAL NOTE ACT MAY APPLY

 

 

A BILL FOR

 

SB3183LRB097 19643 KMW 64897 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 Counties Code is amended by adding Section
55-1134 as follows:
 
6    (55 ILCS 5/5-1134 new)
7    Sec. 5-1134. Borrowing from financial institutions. The
8county board of a county may borrow money for county purposes
9from one fund for the use of another fund providing such
10borrowing shall be repaid within the current fiscal year. The
11county board of a county may also borrow money from any bank or
12other financial institution provided such money shall be repaid
13within 10 years from the time the money is borrowed. The County
14Board Chairman, County Executive, or County Board President, as
15the case may be, shall execute a promissory note or similar
16debt instrument, but not a bond, to evidence the indebtedness
17incurred by the borrowing. The obligation to make the payments
18due under the promissory note or other debt instrument shall be
19a lawful direct general obligation of the county payable from
20the general funds of the county 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 county board and shall be valid whether

 

 

SB3183- 2 -LRB097 19643 KMW 64897 b

1or not an appropriation with respect to that ordinance is
2included in any annual or supplemental appropriation adopted by
3the county board. The indebtedness incurred under this Section,
4when aggregated with the existing indebtedness of the county,
5may not exceed any debt limitation otherwise provided for by
6law. "Financial institution" means any bank subject to the
7"Illinois Banking Act", any savings and loan association
8subject to the "Illinois Savings and Loan Act of 1985", and any
9federally chartered commercial bank or savings and loan
10association organized and operated in this State pursuant to
11the laws of the United States.
 
12    Section 99. Effective date. This Act takes effect upon
13becoming law.