(315 ILCS 30/27) (from Ch. 67 1/2, par. 91.127)
Sec. 27.
Revenue bonds may be issued by a municipality and such bonds shall
contain a provision that the principal thereof and interest thereon shall
be payable exclusively from the proceeds and revenues of any redevelopment
project or conservation area which is financed in whole or in part with the
proceeds of such bonds, together with that amount of the funds of the
municipality from whatever source derived as is necessary to constitute the
local cash grant-in-aid for the redevelopment project or conservation area
within the meaning of applicable federal law; provided, however that any
such bonds may be additionally secured by a pledge of any loan, grant or
contribution, or parts thereof, thereafter to be received from the United
States of America or any agency or instrumentality thereof, or by the
contracts therefor.
(a) Neither the members of a Department of Urban Renewal, nor any
officers, agents or employees of the municipality, nor any other persons
executing such bonds shall be liable personally thereof by reason of the
issuance thereof. Such bonds (and the same shall so state on their face)
shall not be a debt of any city, village, incorporated town, county, the
State or any political subdivision thereof and neither the city, village,
incorporated town or the county, nor the State or any political subdivision
thereof, shall be liable thereon, nor in any event shall such bonds be
payable out of any funds or properties of a municipality other than those
enumerated in this Section. Such bonds shall not constitute an indebtedness
within the meaning of any constitutional or statutory debt limitation or
restriction and such bonds are declared to be issued for an essential
public and governmental purpose.
(b) Bonds issued hereunder may be issued in one or more series and shall
bear such date or dates, shall mature at such time or times, bear interest
at such rate or rates, not exceeding the maximum rate authorized by the
Bond Authorization Act, as amended at the time of the making of the
contract, for bonds issued before January 1, 1972 and not exceeding
the maximum rate authorized by the Bond Authorization Act, as amended at the
time of the making of the contract, for bonds issued after
January 1, 1972, be in such denomination or denominations, be in such form
either coupon or registered, carry registration privileges, have such
priority, be executed in such manner, be payable in such medium of payment,
at such place or places and be subject to such terms of redemption (with or
without premium) as the ordinance, any trust indenture relating thereto,
and the bonds issued may provide. Any ordinance providing for the issuance
of such bonds shall be effective without submitting the proposition to the
electors of the municipality in accordance with the requirements of
Sections 8-4-1 and 8-4-2 of the "Illinois Municipal Code", approved May 29,
1961, as heretofore and hereafter amended.
(c) The bonds shall be sold at not less than par and accrued interest.
(d) In case any of the members of the Department of Urban Renewal or
officers of the municipality whose signatures appear on any bonds or
coupons shall cease to be such members or officers before the delivery of
such bonds, such signatures shall, nevertheless, be valid and sufficient
for all purposes, the same as if such members or officers had remained in
office until such delivery. Any provision of any law to the contrary
notwithstanding, any bonds issued pursuant to this Act shall be fully
negotiable.
(e) In any action or proceedings involving the validity or
enforceability of any such bond or the security therefor, any such bond
reciting in substance that it has been issued by the municipality, to aid
in financing any redevelopment project or conservation area pursuant to
this Act and for any purposes authorized by this Act shall be conclusively
deemed to have been issued for such redevelopment project or conservation
area and other purposes and such redevelopment project or conservation area
shall be conclusively deemed to have been planned, located and carried out
in accordance with the purposes and provisions of this Act.
(f) In connection with the issuance of bonds and in order to secure the
payment of such bonds, a municipality, in addition to its other powers,
shall have power in the bond ordinance, subject to the limitations, terms
and provisions in this Act contained:
(1) To pledge all or any part of its revenues (as hereinafter defined)
to which its right then exists or may thereafter come into existence.
(2) To covenant against pledging all or any part of its revenues (as
hereinafter defined) or against permitting or allowing any lien on its
revenues (as hereinafter defined) or property; and to covenant as to what
other, or additional debts or obligations may be incurred by it.
(3) To covenant as to the bonds to be issued and as to the issuance of
such bonds in escrow or otherwise, and as to the use and disposition of the
proceeds thereof; to provide for the replacement of lost, destroyed or
mutilated bonds; and to covenant for their redemption and to provide the
terms and conditions thereof.
(4) To covenant as to the use and disposition to be made of all or any
part of its revenues (as hereinafter defined); and to create or to
authorize the creation of special funds for moneys held for operating
costs, debt service, reserves, or other purposes, and to covenant as to the
use and disposition of the moneys held in such funds.
(5) To prescribe the procedure, if any, by which the terms of any
contract with bondholders may be amended or abrogated, the amount of bonds
the holders of which must consent thereto and the manner in which such
consent may be given.
(6) To covenant as to the rights, liabilities, powers and duties arising
upon the breach by it of any covenant, condition, or obligations; and to
covenant and prescribe as to the events of default and terms and conditions
upon which any or all of its bonds shall become or may be declared due
before maturity, and as to the terms and conditions upon which such
declaration and its consequences may be waived.
(7) To vest in a trustee or trustees or the holders of bonds or any
specified proportion of them the right to enforce the payment of the bonds
or any covenants securing or relating to the bonds; and to enforce
collection of the proceeds and revenues (as hereinafter defined) arising
from any redevelopment project or conservation area which have been pledged
to secure such bonds and to dispose of such moneys in accordance with the
agreement of the municipality with such trustee or trustees, or obligee or
obligees; to provide for the powers and duties of such trustee or trustees
and obligee or obligees and to limit the liabilities thereof; and to
provide the terms and conditions upon which such trustee or trustees, or
obligee or obligees may enforce any covenant or rights securing or relating
to the bonds.
(8) To exercise all or any part or combination of the powers herein
granted; to make covenants other than in addition to the covenants herein
expressly authorized, of like or different character; to make such
covenants and to do any and all such acts and things as may be necessary or
convenient or desirable in order to secure its bonds, or, in the absolute
discretion of said municipality, as will tend to make the bonds more
marketable notwithstanding that such covenants, acts or things may not be
enumerated herein.
(9) "Revenue" or "Revenues" shall mean the proceeds and revenues
(including, but not in limitation thereof, the proceeds from the sale of
real property, moneys received from the operation and management, or
demolition, of existing housing or other buildings or improvements located
on any real property in a redevelopment project or conservation area) from
any redevelopment project or conservation area which is financed in whole
or in part with the proceeds of bonds issued hereunder, together with that
amount of the funds, from whatever source derived, as is necessary to
constitute the local cash grant-in-aid for the project within the meaning
of applicable Federal law and any loan, grant or contribution, or parts
thereof, thereafter to be received from the United States of America or any
agency or instrumentality thereof, or by the contracts therefor.
(g) A bondholder or trustee for a bondholder shall have the right in
addition to all other rights which may be conferred on such bondholder or
trustee, subject to any contractual restrictions binding upon such
bondholder or trustee, and to the limitations, terms and provisions in this
Act contained:
(1) By mandamus, injunction, civil action or proceeding to
compel the municipality and the officers, agents, or employees thereof to
perform each and every term, provision and covenant contained in the bond
resolution and in any contract of said municipality with or for the benefit
of such bondholder or trustee, and to require the carrying out of any or
all such covenants and agreements of said municipality and the fulfillment
of all duties imposed upon said municipality by this Act.
(2) By action or proceeding to enjoin any acts or
things which may be unlawful, or the violation of any of the rights of such
bondholders.
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. 86-4.)
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