(65 ILCS 5/Art. 11 Div. 12.1 heading) DIVISION 12.1.
REVENUE BONDS FOR CONSERVATION
PLAN AREAS
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(65 ILCS 5/11-12.1-1) (from Ch. 24, par. 11-12.1-1)
Sec. 11-12.1-1.
Any municipality which has a Conservation Board or
Department of Urban Renewal, pursuant to the "Urban Community Conservation
Act", as heretofore and hereafter amended, or the "Urban Renewal
Consolidation Act of 1961", enacted by the Seventy-Second General
Assembly, as the case may be, may borrow money and issue and sell bonds
in one or more series and in such amount, or amounts, as the corporate
authorities may determine for the purpose of creating, owning and managing
a pool of funds for the purchase of mortgage loans on properties within any
area affected by a Conservation Plan approved by the municipality pursuant
to the "Urban Community Conservation Act" or the "Urban Renewal
Consolidation Act of 1961", enacted by the Seventy-Second General Assembly,
as such acts are heretofore and hereafter amended, and to sell and refund
and refinance the same from time to time as often as shall be advantageous
and to the public interest to do so.
Any bonds issued under this Section as limited bonds as defined in Section 3
of
the Local Government Debt Reform Act shall comply with the requirements of the
Bond Issue Notification Act.
(Source: P.A. 89-655, eff. 1-1-97.)
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(65 ILCS 5/11-12.1-2) (from Ch. 24, par. 11-12.1-2)
Sec. 11-12.1-2.
All bonds issued under the authority of this Division
12.1 shall bear interest at not more than the maximum rate authorized by
the Bond Authorization Act, as amended at the time of the making of the
contract, payable semi-annually, and may be sold by the corporate
authorities in such manner as they may deem best in the public interest;
provided, however, such bonds shall be sold at such price that the interest
cost of the proceeds therefrom will not exceed the maximum rate authorized
by the Bond Authorization Act, as amended at the time of the making of the
contract, based on the average maturity of such bonds and computed
according to standard tables of bond values. Such bonds shall be payable
solely and only from the revenues to be derived from loans of the proceeds
thereof, as hereinafter provided, to owners of property within any area
affected by a Conservation Plan approved by the municipality pursuant to
the "Urban Community Conservation Act", as amended, or the "Urban Renewal
Consolidation Act of 1961", as amended, and shall be secured by a pledge of
such loans and all security appertaining thereto.
Such bonds, when issued, shall have all of the qualities of negotiable
instruments under the Law Merchant and the Uniform Commercial Code. Such
bonds may bear such date, or dates, and may mature at such time, or times,
not exceeding 30 years from their date or dates, and may be in such form,
carry such registration privilege, may be payable at such place or places,
may be subject to such terms of redemption, prior to maturity, with or
without premium, as so stated on the face of the bond, and contain such
terms and covenants, all as may be provided by ordinance authorizing the
issuance of such bonds. Such bonds shall be executed by such officers as
the corporate authorities shall designate in the ordinance. Any bonds
bearing the signatures of officers in office at the date of signing thereof
shall be valid and binding for all purposes, notwithstanding that before
delivery thereof any or all such persons whose signatures appear thereon
shall cease to be such officers.
Each bond shall state upon its face that it is payable solely and only
from the revenues to be derived from purchased loans of the proceeds
thereof to the owners of property within any area affected by a
Conservation Plan approved by the municipality pursuant to the "Urban
Community Conservation Act", as amended, or the "Urban Renewal Consolidation
Act of 1961", as amended, and shall state upon its face that it
does not constitute an obligation of the city, village or incorporated town
within the meaning of any constitutional or statutory limitation or
provision.
The amendatory Acts of 1971, 1972 and 1973 are not a limit upon any
municipality which is a home rule unit.
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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(65 ILCS 5/11-12.1-3) (from Ch. 24, par. 11-12.1-3)
Sec. 11-12.1-3.
All loans purchased hereunder shall be to owners of real
property in areas affected by a Conservation Plan approved by the
municipality pursuant to the above named Acts, shall be conditioned upon
full compliance by such owners with the terms and provisions of such
approved Conservation Plan and shall be secured by a first mortgage note or
notes and lien upon such real property, which mortgage shall be insured by
the Federal Housing Commissioner of the United States of America against
loss in accordance with the provisions of the National Housing Act of the
United States in force at the time of the making of such loan.
(Source: Laws 1961, p. 3702.)
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(65 ILCS 5/11-12.1-4) (from Ch. 24, par. 11-12.1-4)
Sec. 11-12.1-4.
The corporate authorities of any such municipality availing
themselves of the provisions of this Division 12.1 shall adopt an ordinance
describing a Conservation Area or Areas, as that term is defined in the
above named Acts, within which the proceeds of the sale of such bonds shall
be made available for purchase of loans, which shall be placed on file in
the office of the clerk of such municipality and which shall be open for
the inspection of the public. Such ordinance shall fix the amount of the
revenue bonds proposed to be issued, the maturity or maturities, the
interest rate, and all details in respect thereof. Such ordinance shall
contain such covenants or restrictions as may be deemed necessary or
advisable by the corporate authorities and without limiting the generality
of the foregoing, such ordinance shall contain such covenants as may be
determined by the corporate authorities as to:
a. The issuance of additional series of bonds that may thereafter be
issued, payable from the revenues derived from purchased loans of such
proceeds to the owners of real property within Conservation Areas affected
by an approved Conservation Plan as hereinbefore provided.
b. The pledge by the municipality of all investments and loans made from
the sale of such revenue bonds as security for the payment of such revenue
bonds and authorization of the execution of such agreements or collateral
trust indentures necessary to accomplish such pledge.
c. Operation, maintenance, management, accounting and auditing and the
keeping of records, reports and audits of the operation of such mortgage
loan fund.
d. Limiting the right of the municipality to invest the funds derived
from the sale of such revenue bonds in first mortgages on real property
within Conservation Areas affected by approved Conservation Plans and which
mortgages shall be insured against loss by the Federal Housing Commissioner
pursuant to the provisions of the Federal Housing Act as hereinbefore
provided. Pending the investment of such fund, the municipality may invest
such fund in good interest paying securities such as are authorized by law
for the investment of public funds, there to remain until the same is
needed for proceeding hereunder.
e. The obligation of the municipality to properly administer the
mortgage loan fund, to collect the principal and interest payable upon
loans as herein provided, to enforce its rights with respect to such
mortgage notes and security, in the event of default therein to take proper
action to enforce its rights in the collection of such mortgage notes and
foreclosure of the security therein pledged, and to secure the benefit of
the insurance against loss of such mortgage by the Federal Housing
Commissioner of the United States of America in accordance with the
provisions of the National Housing Act of the United States and to apply
the proceeds of such mortgage loan fund to the payments of interest and
principal on account of the revenue bonds issued and sold thereunder.
f. The designation of a committee of bondholders to consult with and
advise the municipality in the administration of the mortgage loan fund.
g. Fixing procedure by which the terms of any contract with the holders
of the bonds may be amended, the amount of bonds the holders of which must
consent thereto, and the manner in which such consent may be given.
h. Providing for the establishment of suitable reserves and regulating
the cost of administration in the operation, management and supervision of
such mortgage fund.
i. Such covenants as may be deemed necessary or desirable to assure
successful operation of such mortgage loan fund and prompt payment of the
principal of and interest upon bonds so authorized.
After such ordinance has been adopted and approved, it shall be
published once in a newspaper published and having a general circulation in
such municipality or, if there be no such newspaper published in such
municipality, then the ordinance should be posted in at least 5 of the most
public places in such municipality and shall become effective 10 days after
publication or posting thereof.
(Source: Laws 1961, p. 3702.)
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(65 ILCS 5/11-12.1-5) (from Ch. 24, par. 11-12.1-5)
Sec. 11-12.1-5.
Whenever revenue bonds are issued and outstanding under
this Division 12.1, the entire revenues derived from the operation of the
mortgage loan fund thereby created shall be set aside as collected and
deposited in a separate fund, separate and apart from all other funds of
such municipality, which special fund shall be used only in paying the cost
of operation, maintenance and supervision of such mortgage loan fund and
paying the principal of and interest upon the revenue bonds of such
municipality issued under this Division 12.1 in such order or priority as
shall be provided by the respective ordinance authorizing revenue bonds;
provided, however, no priority accorded by such an ordinance may be
impaired by a subsequent ordinance authorizing revenue bonds unless
specifically so permitted by a covenant of the kind authorized to be
included in an ordinance by Section 11-12.1-4. After all such bonds have
been paid, such revenues shall then be applied for the retirement of any
other outstanding bonds issued by the municipality under this Division
12.1. After all such bonds issued under this Division 12.1 have been paid,
such revenues may be transferred to the general corporate fund of any such
municipality, only when and in the manner permitted and authorized in
accordance with the covenants and provisions and terms of the ordinance
authorizing the issuance of any bonds under the provisions of this Division
12.1.
(Source: Laws 1961, p. 3702.)
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(65 ILCS 5/11-12.1-6) (from Ch. 24, par. 11-12.1-6)
Sec. 11-12.1-6.
The provisions of this Division 12.1 and of any ordinance
or other proceeding authorizing the issuance of bonds under this Division
12.1 shall constitute a contract with the holders of such bonds and any
holder of a bond or bonds or any of the coupons of any bond or bonds of
such municipality issued under this Division 12.1 may by action, mandamus,
injunction or other proceeding,
enforce and compel
the performance of all duties required by this Division 12.1 including the
application of income and revenue from such mortgage loan fund and the
faithful performance of any agreement or collateral trust indentures
securing the payment of such bonds.
(Source: P.A. 83-345.)
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