5 ILCS 220/3.1

Member municipalities, public water districts, townships, State universities, or counties may,
for the purposes of, and upon request by, the Municipal Joint Action Water
Agency, exercise the power of eminent domain available to them, convey property
so acquired to the Agency for the cost of acquisition, and be reimbursed for
all expenses related to this exercise of eminent domain power on behalf of the
Agency.

All property, income and receipts of or transactions by a Municipal Joint
Action Water Agency shall be exempt from all taxation, the same as if it
were the property, income or receipts of or transaction by the member
municipalities, public water districts, townships, State universities, or counties.

(d) A Municipal Joint Action Water Agency established pursuant to this
Section 3.1 shall have the power to buy water and to enter into contracts
with any person, corporation or public agency (including any member
municipality, public water district, township, or county) for that purpose.
Any such contract made by an Agency for a supply of water may contain
provisions whereby the Agency is obligated to pay for the supply of water
without setoff or counterclaim and irrespective of whether the supply of water
is ever furnished, made available or delivered to the Agency or whether any
project for the supply of water contemplated by any such contract is completed,
operable or operating and notwithstanding any suspension, interruption,
interference, reduction or curtailment of the supply of water from such
project.  Any such contract may provide that if
one or more of the other purchasers defaults in the payment of its
obligations under such contract or a similar contract made with the
supplier of the water one or more of the remaining purchasers party to such
contract or such similar contract shall be required to pay for all or a
portion of the obligations of the defaulting purchasers. No such contract
may have a term in excess of 50 years.

A Municipal Joint Action Water Agency shall have the power to sell water
and to enter into contracts with any person, corporation or public agency
(including any member municipality, any public water district, any township, any State university, or
any county on behalf of a county service area as set forth in this Section) for
that purpose.  No such contract may have a term in excess of 50 years.  Any
such contract entered into to sell water to a public agency may provide that
the payments to be made thereunder by such public agency shall be made solely
from revenues to be derived by such public agency from the operation of its
waterworks system or its combined waterworks and sewerage system.  Any public
agency so contracting to purchase water shall establish from time to time such
fees and charges for its water service or combined water and sewer service as
will produce revenues sufficient at all times to pay its obligations to the
Agency under the purchase contract. Any such contract so providing shall not
constitute indebtedness of such public agency so contracting to buy water
within the meaning of any statutory or constitutional limitation.  Any such
contract of a public agency to buy water shall be a continuing, valid and
binding obligation of such public agency payable from such revenues.

A Municipal Joint Action Water Agency shall establish fees and charges
for the purchase of water from it or for the use of its facilities.  No
prior appropriation shall be required by either the Municipal Joint Action
Water Agency or any public agency before entering into any contract authorized
by this paragraph (d).

The changes in this Section made by this amendatory Act of 1984 are intended
to be declarative of existing law.

(e) 1. A Municipal Joint Action Water Agency established pursuant to
this Section 3.1 may, from time to time, borrow money and, in evidence of
its obligation to repay the borrowing, issue its negotiable water revenue bonds
or notes pursuant to this paragraph (e) for any of the following purposes:
for paying costs of constructing, acquiring, improving or extending a joint
waterworks or water supply system; for paying other expenses incident to or
incurred in connection with such construction, acquisition, improvement or
extension; for repaying advances made to or by the Agency for such purposes;
for paying interest on the bonds or notes until the estimated date of
completion of any such construction, acquisition, improvement or extension and
for such period after the estimated completion date as the Board of Directors
of the Agency shall determine; for paying financial, legal, administrative
and other expenses of the authorization, issuance, sale or delivery of bonds
or notes; for paying costs of insuring payment of the bonds or notes; for
providing or increasing a debt service reserve fund with respect to any or all
of the Agency's bonds or notes; and for paying, refunding or redeeming any of
the Agency's bonds or notes before, after or at their maturity, including
paying redemption premiums or interest accruing or to accrue on such bonds
or notes being paid or redeemed or for paying any other costs in connection
with any such payment or redemption.

2. Any bonds or notes issued pursuant to this paragraph (e) by a Municipal
Joint Action Water Agency shall be authorized by a resolution of the Board
of Directors of the Agency adopted by the affirmative vote of Directors
from a majority of the member municipalities, public water districts,
townships, State universities, and counties, and any additional requirements as may be set forth in
the agreement establishing the Agency.  The authorizing resolution may be
effective immediately upon its adoption.  The authorizing resolution shall
describe in a general way any project contemplated to be financed by the bonds
or notes, shall set forth the estimated cost of the project and shall determine
its period of usefulness.  The authorizing resolution shall determine the
maturity or maturities of the bonds or notes, the rate or rates at which the
bonds or notes are to bear interest and all the other terms and details of the
bonds or notes.  All such bonds or notes shall mature within the period of
estimated usefulness of the project with respect to which such bonds or notes
are issued, as determined by the Board of Directors, but in any event not more
than 50 years from their date of issue.  The bonds and notes may bear interest,
payable at such times, at a rate or rates not exceeding the maximum rate
established in the Bond Authorization Act, as from time to time in effect.
Bonds or notes of a Municipal Joint Action Water Agency shall be sold in such
manner as the Board of Directors of the Agency shall determine, either at par
or at a premium or discount, but such that the effective interest cost
(excluding any redemption premium) to the Agency of the bonds or notes shall
not exceed a rate equal to the rate of interest specified in the Act referred
to in the preceding sentence.

The resolution authorizing the issuance of any bonds or notes pursuant
to this paragraph (e) shall constitute a contract with the holders of the
bonds and notes.  The resolution may contain such covenants and restrictions
with respect to the purchase or sale of water by the Agency and the contracts
for such purchases or sales, the operation of the joint waterworks system
or water supply system, the issuance of additional bonds or notes by the
Agency, the security for the bonds and notes, and any other matters, as
may be deemed necessary or advisable by the Board of Directors to assure
the payment of the bonds or notes of the Agency.

3. The resolution authorizing the issuance of bonds or notes by a
Municipal
Joint Action Water Agency shall pledge and provide for the application of
revenues derived from the operation of the Agency's joint waterworks or
water supply system (including from contracts for the sale of water by the
Agency) and investment earnings thereon to the payment of the cost of operation
and maintenance of the system (including costs of purchasing water), to
provision of adequate depreciation, reserve or replacement funds with respect
to the system or the bonds or notes, and to the payment of principal, premium,
if any, and interest on the bonds or notes of the Agency (including amounts
for the purchase of such bonds or notes).  The resolution shall provide
that revenues of the Municipal Joint Action Water Agency so derived from
the operation of the system, sufficient (together with other receipts of
the Agency which may be applied to such purposes) to provide for such purposes,
shall be set aside as collected in a separate fund or funds and used for
such purposes.  The resolution may provide that revenues not required for
such purposes may be used for any proper purpose of the Agency or may be
returned to member municipalities.

Any notes of a Municipal Joint Action Water Agency issued in anticipation
of the issuance of bonds by it may, in addition, be secured by a pledge
of proceeds of bonds to be issued by the Agency, as specified in the resolution
authorizing the issuance of such notes.

4. (i) Except as provided in clauses (ii) and (iii) of this subparagraph 4
of this paragraph (e), all bonds and notes of the Municipal Joint Action
Water Agency issued pursuant to this paragraph (e) shall be revenue bonds or
notes.  Such revenue bonds or notes shall have no claim for payment other than
from revenues of the Agency derived from the operation of its joint waterworks
or water supply system (including from contracts for the sale of water by the
Agency) and investment earnings thereon, from bond or note proceeds and
investment earnings thereon, or from such other receipts of the Agency as the
agreement establishing the Agency may authorize to be pledged to the payment of
revenue bonds or notes, all as and to the extent as provided in the resolution
of the Board of Directors authorizing the issuance of the revenue bonds or
notes.  Revenue bonds or notes issued by a Municipal Joint Action Water Agency
pursuant to this paragraph (e) shall not constitute an indebtedness of the
Agency or of any member municipality, public water district, township, or
county within the meaning of any constitutional or statutory limitation.  It
shall be plainly stated on each revenue bond and note that it does not
constitute an indebtedness of the Municipal Joint Action Water Agency or of any
member municipality, public water district, township, or county within the
meaning of any constitutional or statutory limitation.

(ii) If the Agreement so provides and subject to the referendum
provided for in clause (iii) of this subparagraph 4 of this paragraph
(e), the Municipal Joint Action Water Agency may borrow money for corporate
purposes on the credit of the Municipal Joint Action Water Agency, and
issue general obligation bonds therefor, in such amounts and form and on
such conditions as it shall prescribe, but shall not become indebted in any
manner or for any purpose in an amount including existing indebtedness in
the aggregate which exceeds 5.75% of the aggregate value of the taxable
property within the boundaries of the participating municipalities, public
water districts, townships, and county service areas within a member county
determined by the governing body of the county by resolution to be served by
the Municipal Joint Action Water Agency (including any territory added to the
Agency after the issuance of such general obligation bonds), collectively
defined as the "Service Area", as equalized and assessed by the Department of
Revenue and as most recently available at the time of the issue of said bonds.
Before or at the time of incurring any such general obligation indebtedness,
the Municipal Joint Action Water Agency shall provide for the
collection of a direct annual tax, which shall be unlimited as to rate or
amount, sufficient to pay the interest on such debt as it falls due and also to
pay and discharge the principal thereof at maturity, which shall be within 40
years after the date of issue thereof.  Such tax shall be levied upon and
collected from all of the taxable property within the territorial boundaries of
such Service Area at the time of the referendum provided for in clause (iii)
and shall be levied upon and collected from all taxable property within the
boundaries of any territory subsequently added to the Service Area.
Dissolution of the Municipal Joint Action Water Agency for any reason shall not
relieve the taxable property within such Service Area from liability for such
tax. Liability for such tax for property transferred to or released from such
Service Area shall be determined in the same manner as for general obligation
bonds of such county, if in an unincorporated area, and of such municipality,
if within the boundaries thereof.  The clerk or other officer of the Municipal
Joint Action Water Agency shall file a certified copy of the resolution or
ordinance by which such bonds are authorized to be issued and such tax is
levied with the County Clerk or Clerks of the county or counties containing the
Service Area, and such filing shall constitute, without the doing of any other
act, full and complete authority for such County Clerk or Clerks to extend such
tax for collection upon all the taxable property within the Service Area
subject to such tax in each and every year, as required, in amounts sufficient
to pay the principal of and interest on such bonds, as aforesaid, without limit
as to rate or amount.  Such tax shall be in addition to and in excess of all
other taxes authorized to be levied by the Municipal Joint Action Water Agency
or by such county, municipality, township, or public water district.  The
issuance of such general obligation bonds shall be subject to the other
provisions of this paragraph (e), except for the provisions of clause (i) of
this subparagraph 4.

(iii) No issue of general obligation bonds of the Municipal Joint Action
Water Agency (except bonds to refund an existing bonded indebtedness) shall
be authorized unless the Municipal Joint Action Water Agency certifies the
proposition of issuing such bonds to the proper election authorities, who
shall submit the proposition to the voters in the Service Area at an
election in accordance with the general election law, and the proposition
has been approved by a majority of those voting on the proposition.

The proposition shall be substantially in the following form:

--------------------------------------------------------------
    Shall general obligation
bonds for the purpose of (state
purpose), in the sum not to
exceed $....(insert amount),                Yes
be issued by the .........           -------------------------
(insert corporate name of the               No
Municipal Joint Action Water
Agency)?
--------------------------------------------------------------

5. As long as any bonds or notes of a Municipal Joint Action Water Agency
created pursuant to this Section 3.1 are outstanding and unpaid, the Agency
shall not terminate or dissolve and, except as permitted by the resolution
or resolutions authorizing outstanding bonds or notes, no member
municipality, public water district, township, or county
may withdraw from the Agency.  While any such bonds or notes are outstanding,
all contracts for the sale of water by the Agency to member
municipalities, public water districts, townships, or counties
shall be irrevocable except as permitted by the resolution or resolutions
authorizing such bonds or notes.  The Agency shall establish fees and charges
for its operations sufficient to provide adequate revenues to meet all of
the requirements under its various resolutions authorizing bonds or notes.

6. A holder of any bond or note issued pursuant to this paragraph (e)
may, in any civil action, mandamus or other proceeding, enforce and compel
performance of all duties required to be performed by the Agency or such
counties, as provided in the authorizing resolution, or by any of the public
agencies contracting with the Agency to purchase water, including the
imposition of fees and charges, the collection of sufficient revenues and the
proper application of revenues as provided in this paragraph (e) and the
levying, extension and collection of such taxes.

7. In addition, the resolution authorizing any bonds or notes issued
pursuant to this paragraph (e) may provide for a pledge, assignment, lien or
security interest, for the benefit of the holders of any or all bonds or notes
of the Agency, (i) on any or all revenues derived from the operation of the
joint waterworks or water supply system (including from contracts for the sale
of water) and investment earnings thereon or (ii) on funds or accounts securing
the payment of the bonds or notes as provided in the authorizing resolution.
In addition, such a pledge, assignment, lien or security interest may be made
with respect to any receipts of the Agency which the agreement establishing the
Agency authorizes it to apply to payment of bonds or notes. Any such pledge,
assignment, lien or security interest for the benefit of holders of bonds or
notes shall be valid and binding from the time the bonds
or notes are issued, without any physical delivery or further act, and shall
be valid and binding as against or prior to any claims of any other party
having any claims of any kind against the Agency irrespective of whether
such other parties have notice of such pledge, assignment, lien or security
interest.

A resolution of a Municipal Joint Water Agency authorizing the issuance of
bonds or notes pursuant to this paragraph (e) may provide for the appointment
of a corporate trustee with respect to any or all of such bonds or notes
(which trustee may be any trust company or state or national bank having
the power of a trust company within Illinois).  In that event, the resolution
shall prescribe the rights, duties and powers of the trustee to be exercised
for the benefit of the Agency and the protection of the holders of such
bonds or notes.  The resolution may provide for the trustee to hold in trust,
invest and use amounts in funds and accounts created as provided in the
resolution.  The resolution authorizing the bonds or notes may provide for
the assignment and direct payment to the trustee of amounts owed by public
agencies to the Municipal Joint Action Water Agency under water sales contracts
for application by the trustee to the purposes for which such revenues are
to be used as provided in this paragraph (e) and as provided in the authorizing
resolution.  Upon receipt of notice of such assignment, the public agency
shall thereafter make the assigned payments directly to such trustee.

Nothing in this Section authorizes a Joint Action Water Agency to provide
water service directly to residents within a municipality or in territory
within one mile or less of the corporate limits of a municipality that operates
a public water supply unless the municipality has consented in writing to
such service being provided.

(Source: P.A. 100-1076, eff. 8-24-18.)