(70 ILCS 2605/9.6b) (from Ch. 42, par. 328.6b)
Sec. 9.6b.
After the issuance of bonds for any corporate purpose shall
have been authorized by ordinance, the corporate authorities of the
sanitary district shall have power to borrow money from time to time for
the purposes for which such bonds are to be issued in anticipation of the
receipt of the proceeds of the sale of such bonds and in an amount which
does not exceed the authorized amount of such bond issue, and without
submitting the question of such borrowing to the legal voters of such
sanitary district for approval.
Any such borrowing shall be evidenced by the issuance of bond
anticipation notes, which notes shall mature not more than 3 years after
the date of issuance of said notes, may be made callable prior to their
maturity, and may be offered for sale in such manner as determined by the
corporate authorities.
The notes shall be authorized by ordinance, shall be in such denomination
or denominations, bear interest at such rate or rates not exceeding the
maximum rate permitted by law and fixed by the provisions of the ordinance
authorizing the bonds, shall be in such form and shall be executed in such
manner as the corporate authorities of the sanitary district shall prescribe.
The notes may be made payable, both principal and interest to date of
payment, from the funds derived from the sale of bonds for the permanent
financing, or from other available funds, or a combination thereof. The
corporate authorities, in their discretion, may provide for the levy and
collection of a direct annual tax upon all the taxable property in the
sanitary district, sufficient to pay the interest on said notes to
maturity, or any portion of said interest. Upon the filing in the office
of the County Clerk of a certified copy of the ordinance authorizing the
issuance of said notes and levying a tax to pay interest, it shall be the
duty of such County Clerk to extend the tax therefor in addition to and in
excess of all other taxes heretofore or hereafter authorized to be levied.
Any portion of the tax so levied and collected, which is not needed to pay
interest on the notes, shall be used to pay interest on the bonds. The
notes shall be surrendered for payment and cancellation when the bonds are
issued, or when other funds are made available for the payment of such
notes and the interest thereon. The notes may also be refunded by the
issuance of refunding notes or may be renewed upon mutual agreement with
the holder of the notes.
(Source: P.A. 86-1337.)
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