(65 ILCS 5/11-117-9) (from Ch. 24, par. 11-117-9)
Sec. 11-117-9.
For the purpose of acquiring any public utility, or any part
thereof, or property necessary or appropriate for the operation of any
public utility, either by purchase, condemnation or construction, any
municipality may issue and dispose of interest bearing certificates,
hereinafter called public utility certificates. Under no circumstances
shall these public utility certificates be or become an obligation or
liability of the municipality or payable out of any general fund thereof.
They shall be payable solely out of the revenue or income to be derived
from the public utility for the acquisition of which they were issued. Such
certificates shall not be issued and secured on public utility property in
an amount in excess of the cost of the municipality of that property and
10% of that cost in addition thereto.
In order to secure the payment of these public utility certificates and
the interest thereon, the municipality may convey, by way of mortgage or
deed of trust, any or all of the public utility property acquired or to be
acquired through the issuance thereof. Such a mortgage or deed of trust
shall be executed in such manner as may be directed by law for the
acknowledgment and recording of mortgages of real estate, and may contain
such provisions and conditions not in conflict with the provisions of this
Division 117 as may be deemed necessary to secure the payment of the public
utility certificates described therein. Any such mortgage or deed of trust
may grant a privilege or right to maintain and operate the public utility
property covered thereby, for a period not exceeding 20 years from and
after the date that that property may come into the possession of any
person as the result of foreclosure proceedings. Such a privilege or right
may include the right to fix the rates or charges which the person securing
the property as the result of foreclosure proceedings shall be entitled to
charge in the operation of that property for a period not exceeding 20
years.
Whenever and as often as default is made in the payment of any public
utility certificate, issued and secured by a specific mortgage or deed of
trust, or in the payment of the interest thereon when due, and the default
has continued for the space of 12 months after notice thereof has been
given to the mayor, and to the comptroller, if any, it is lawful for the
mortgagee or trustee, upon the request of the holders of a majority in
amount of the certificates issued and outstanding under the mortgage or
deed of trust, to declare the whole of the principal of all of the
certificates, which are unpaid, to be at once due and payable, and to
proceed to foreclose the mortgage or deed of trust in any court of
competent jurisdiction. At a foreclosure sale, the mortgagee or the holders
of the unpaid certificates may become the purchaser or purchasers of the
property, rights and privileges sold, if he or they are the highest
bidders. Any public utility acquired under any such foreclosure shall be
subject to regulation by the corporate authorities of the municipality to
the same extent as if the right to construct, maintain, and operate that
property had been acquired through a direct grant without the intervention
of foreclosure proceedings.
However, no public utility certificates shall ever be issued by any
municipality under the provisions of this Division 117 unless the question
of the adoption of the ordinance of the corporate authorities authorizing
the issuance thereof has first been submitted to the electors of the
municipality and approved by a majority of the electors of the municipality
voting upon the question. The question shall be submitted in accordance
with the provisions of Section 11-117-3.
(Source: Laws 1961, p. 576.)
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