(65 ILCS 5/11-129-2) (from Ch. 24, par. 11-129-2)
Sec. 11-129-2.
A specified municipality is authorized to pay the cost of
a purchase, construction, improvement, or extension of a waterworks or
water supply system by the issuance and sale of revenue bonds of the
municipality, payable solely from the revenue derived from the operation of
the waterworks or water supply system. These revenue bonds shall bear
interest at a rate not to exceed the maximum rate authorized by the Bond
Authorization Act, as amended at the time of the making of the contract,
payable semi-annually, and shall mature within the period of usefulness of
the project, to be determined by the corporate authorities, but in no event
more than 40 years from the date of the completion of the project. The
bonds shall be sold in such manner as the corporate authorities shall
determine except that, if issued to bear interest at the maximum rate
authorized by the Bond Authorization Act, as amended at the time of the
making of the contract, the bonds shall be sold for not less than par and
accrued interest, and except that the selling price of bonds bearing less than
the maximum rate authorized by the Bond Authorization Act, as amended at the
time of the making of the contract, shall be such that the interest cost to the
municipality of the money received from the bond sale shall not exceed
the maximum rate authorized by the Bond Authorization Act, as amended at the
time of the making of the contract, computed to maturity according to
standard tables of bond values.
In case any officer, whose signature appears on these revenue bonds or
the coupons attached thereto, ceases to hold that office before the
delivery of the bonds to the purchaser, his signature nevertheless shall be
valid and sufficient for all purposes, to the same effect as if he had
remained in office until the delivery of the bonds. The bonds shall have
all the qualities of negotiable instruments under the law merchant and the
"Uniform Commercial Code", approved May 28, 1965, as amended.
However, upon the effective date of the Acts of 1971, 1972 and 1973, the
maximum interest rate and interest cost on bonds issued under this Section
is
the maximum rate authorized by the Bond Authorization Act, as amended at the
time of the making of the contract.
With respect to instruments for the payment of money issued under this
Section either before, on, or after the effective date of this amendatory
Act of 1989, it is and always has been the intention of the General
Assembly (i) that the Omnibus Bond Acts are and always have been
supplementary grants of power to issue instruments in accordance with the
Omnibus Bond Acts, regardless of any provision of this Act that may appear
to be or to have been more restrictive than those Acts, (ii) that the
provisions of this Section are not a limitation on the supplementary
authority granted by the Omnibus Bond Acts, and (iii) that instruments
issued under this Section within the supplementary authority granted
by the Omnibus Bond Acts are not invalid because of any provision of
this Act that may appear to be or to have been more restrictive than
those Acts.
The amendatory Acts of 1971, 1972 and 1973 are not a limit upon any
municipality which is a home rule unit.
(Source: P.A. 86-4.)
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