Public Act 90-0306 of the 90th General Assembly

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Public Act 90-0306

SB180 Enrolled                                 LRB9001612DNmb

    AN ACT to amend the Local Government Debt Reform  Act  by
changing Sections 10 and 11.

    Be  it  enacted  by  the People of the State of Illinois,
represented in the General Assembly:

    Section 5.  The  Local  Government  Debt  Reform  Act  is
amended by changing Sections 10 and 11 as follows:

    (30 ILCS 350/10) (from Ch. 17, par. 6910)
    Sec.   10.   General  provisions.   Bonds  authorized  by
applicable law may be issued in one or more series, bear such
date or dates, become due at such time  or  times  within  40
years,  except  as  expressly limited by applicable law, bear
interest payable at such intervals and at such rate or  rates
as  authorized under applicable law, which rates may be fixed
or variable, be in  such  denominations,  be  in  such  form,
either   coupon,   registered   or   book-entry,  carry  such
conversion, registration, and exchange privileges, be subject
to defeasance upon such terms, have such rank or priority, be
executed in such manner, be payable in such medium of payment
at such place or  places  within  or  without  the  State  of
Illinois,  make  provision  for a corporate trustee within or
without the State with respect to such bonds,  prescribe  the
rights,  powers  and  duties  thereof to be exercised for the
benefit of the governmental unit and the  protection  of  the
bondholders, provide for the holding in trust, investment and
use  of  moneys,  funds and accounts held under an ordinance,
provide for assignment of and direct payment of the moneys to
pay such bonds or to be deposited into such funds or accounts
directly to  such  trustee,  be  subject  to  such  terms  of
redemption  with  or  without  premium,  and  be sold in such
manner at private or public sale and at such  price,  all  as
the  governing body shall determine.  Whenever such bonds are
sold at price less than par, they shall be sold at such price
and bear interest at such rate or rates such that either  the
true  interest  cost (yield) or the net interest rate, as may
be selected by the governing body, received upon the sale  of
such  bonds  does  not  exceed  the  maximum  rate  otherwise
authorized   by  applicable  law.  Except  for  an  ordinance
required to be published by applicable law in connection with
a backdoor  referendum,  any  bond  ordinance  adopted  by  a
governing  body under applicable law shall, in all instances,
become effective immediately without publication  or  posting
or any further act or requirement.
(Source: P.A. 85-1419.)

    (30 ILCS 350/11) (from Ch. 17, par. 6911)
    Sec.  11.  Refundings and redemption premiums.  Bonds may
be refunded or  advance  refunded  upon  such  terms  as  the
governing  body may set in accordance with this Act, for such
term of years, not in excess of the  maximum  term  of  years
permitted by applicable law for the bonds to be refunded, and
in  such  principal amount, all as may be deemed necessary by
the governing body.  The ordinance  adopted  by  a  governing
body  under  applicable  law  authorizing  the  refunding  or
advance  refunding  of  revenue  bonds shall in all instances
become effective immediately without publication  or  posting
or  any  further  act  or  requirement.  Revenue bonds may be
issued to refund general obligation bonds or alternate  bonds
issued under this Act.  General obligation bonds shall not be
issued  to  refund revenue bonds or alternate bonds except as
expressly  permitted  by  applicable  law.   Any   redemption
premium  payable  upon the redemption of bonds may be payable
from the proceeds of refunding bonds which may be issued  for
the  purpose of refunding such bonds, from any other lawfully
available  source  or  from  both  proceeds  and  such  other
(Source: P.A. 85-1419.)

    Section 99.  Effective date.  This Act takes effect  upon
becoming law.

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