(70 ILCS 910/21.2) (from Ch. 23, par. 1271.2)
Sec. 21.2.
The corporate authorities of any Hospital District may enter
into installment purchase and lease agreements and issue debt certificates
under subsection (b) of Section 17 of the Local Government Debt Reform Act
and may
issue and sell revenue bonds, payable from the revenue derived from the
operation of the hospital, for the purpose of (1) constructing,
reconstructing, repairing, remodeling, extending, equipping, or improving
a hospital building, buildings,
or facilities and acquiring a
site or sites for a
hospital building, buildings, or facilities,
(1.5) financing operations and working
cash,
or (2) refunding
any such revenue bonds
theretofore issued from time to time when considered necessary or
advantageous in the public interest. These bonds shall be authorized by
an ordinance without submission thereof to the electors of the Hospital
District, shall mature at such time not to exceed 40 years from the date
of issue, and bear such rate of interest not to exceed the greater of (i)
the maximum rate authorized by the Bond Authorization Act, as amended at
the time of the making of the contract, or (ii) 9% per annum, payable
annually or semiannually, as the corporate authorities may
determine, and may be sold by the corporate authorities in such manner
as they deem best in the public interest. However, such bonds shall be
sold at such price that the interest cost of the proceeds therefrom will
not exceed the greater of (i) the maximum rate authorized by the Bond
Authorization Act, as amended at the time of the making of the contract, or
(ii) 9% per annum if issued on or after the effective date of this
amendatory Act, based on the average maturity of such bonds and computed
according to standard tables of bond values. No member of the Board or
hospital administration shall have any personal economic interest in any
bonds issued in accordance with this Section.
The corporate authorities of any such Hospital District availing
itself of the provisions of this Section shall adopt an ordinance
describing in a general way the building, buildings, or
facilities, or additions or
extensions thereto, to be constructed, reconstructed, repaired,
remodeled, extended, equipped or improved, and the site or sites to be
acquired. Such ordinance shall set out the estimated cost of such
construction, reconstruction, repair, remodeling, extension, equipment,
improvement or acquisition and fix the amount of revenue bonds proposed
to be issued, the maturity, interest rate, and all details in respect
thereof, including any provision for redemption prior to maturity, with
or without premium, and upon such notice as may be provided by the
ordinance. Such ordinance may also contain such provisions and
covenants which shall be part of the contract between the Hospital
District and the holders of such bonds as may be considered necessary
and advisable as to the operation, maintenance, and management of the
hospital or hospitals, the establishment and maintenance of sinking
funds, reserve funds, and other special funds, including construction
funds, the fixing and collection of rents, fees and charges for the use
of the facilities of the hospital or hospitals sufficient to produce
revenue adequate to maintain such funds and to pay the bonds at maturity
and accruing interest thereon, the issuance thereafter of additional
bonds payable from the revenues derived from the hospital or hospitals,
the kind and amount of insurance, including use and occupancy insurance,
if any, to be carried, the cost of which shall be payable only from the
revenues derived from the hospital or hospitals and such other covenants
deemed necessary or desirable to assure the successful operation and
maintenance of the hospital or hospitals and the prompt payment of the
principal of and interest upon the bonds so authorized.
Revenue bonds issued under this Section shall be signed by the
chairman and secretary of the Board or such other officers as the Board
may by ordinance direct to sign such bonds, and shall be payable from
revenue derived from the operation of the hospital or hospitals. These
bonds may not in any event constitute an indebtedness of the Hospital
District within the meaning of any constitutional provision or
limitation. It shall be plainly written or printed on the face of each
bond that the bond has been issued under the provisions of this Section,
that the bond, including the interest thereon, is payable from the
revenue pledged to the payment thereof, and that it does not constitute
an indebtedness or obligation of the Hospital District within the
meaning of any constitutional or statutory limitation or provision. No
holder of any such revenue bond may compel any exercise of the taxing
power of the Hospital District to pay such bond or interest thereon.
The District may not issue any bonds under this Section unless a public
hearing, with adequate notice to the public, is held prior to the issuance
of the bonds. Notice of the hearing giving the purpose, time and place of
the hearing shall be published at least once, not more than 30 nor less
than 15 days before the hearing, in one or more newspapers published in
the district, and if there is none, in a newspaper published in the county
and having general circulation in the district.
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.
(Source: P.A. 92-611, eff. 7-3-02.)
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