(70 ILCS 2405/9) (from Ch. 42, par. 308)
Sec. 9.
Borrowing powers; debt limitation; referendum.
(a) The corporation may borrow money for corporate purposes and may issue
bonds for those purposes but shall not become indebted in any manner,
or for any purpose, to an amount in the aggregate exceeding 5.75% on the
valuation of taxable property in the district to be ascertained by the last
assessment for State and county taxes before the indebtedness was incurred or,
until January 1, 1983, if greater, the sum that is produced by multiplying the
district's 1978 equalized assessed valuation by the debt limitation percentage
in effect on January 1, 1979.
The trustees shall also have the express power to borrow money from banks
or other financial institutions, execute a note or notes and a security
agreement to secure the payment of the note or notes, and provide security for
repayment of the note or notes by pledging district revenues or encumbering
district assets. The maximum amount that may be borrowed under this paragraph
shall not exceed $25,000,000 for the aggregate of all those
notes. The period
for repayment of any note shall not exceed 20 years.
The trustees shall also have the express power, without referendum, to
execute an agreement for a loan from the Water Pollution Control Revolving
Fund of the State of Illinois, under the Environmental Protection Act, and to
pledge revenues of the district for the repayment of the loan.
(b) Whenever the board of trustees of a district desires to issue bonds
under this Section they shall order a referendum to be held in the district on
the question. The board shall certify the question to the proper election
officials, who shall submit the question at an election in accordance with
the general election law. In addition to the requirements of the general
election law, the notice of referendum shall state the amount of bonds to
be issued. The question shall be in substantially the following form:
Shall (name of district) issue bonds in the amount of |
The votes shall be recorded as "Yes" or "No".
The result of the referendum shall be entered in the records of the district.
If it appears that a majority of the voters voting at the election on the
question have voted in favor of the issue of the bonds, the board of trustees
shall order and direct the execution of the bonds for and on behalf of the
district. All bonds issued under this Section shall mature in not more than 20
annual installments.
(c) The corporation may borrow money for corporate purposes, and may issue
bonds for those purposes, without a referendum on the question if the
corporation or the board of trustees of the district has been directed, by an
order issued by a court of competent jurisdiction or by an administrative
agency of the State of Illinois having jurisdiction to issue the order, to
abate its discharge of untreated or inadequately treated sewage and if the
borrowing is deemed necessary by the board of trustees of the sanitary district
to make possible compliance with the order. The amount of money that the
corporation may borrow to abate the sewage discharge shall be limited to that
required for that purpose plus any reasonable future expansion approved by the
court or an administrative agency of the State of Illinois having jurisdiction.
The ordinance providing for the bonds shall set out the fact that the bonds are
deemed necessary to make possible compliance with the order and shall be
published or posted in the manner provided in this Act for publication or
posting of ordinances making appropriations. The ordinance shall be in full
force and effect after its adoption and publication or posting as provided in
this subsection, notwithstanding any provision in this Act or any other law to
the contrary.
(Source: P.A. 89-558, eff. 7-26-96; 90-716, eff. 8-7-98.)
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