Bill Text: IL HB3340 | 2023-2024 | 103rd General Assembly | Introduced
NOTE: There are more recent revisions of this legislation. Read Latest Draft
Bill Title: Amends the Illinois Municipal Code. In provisions relating to a municipality borrowing money from a bank or other financial institution, modifies the definition of "financial institution" to include the Illinois Finance Authority.
Spectrum: Moderate Partisan Bill (Democrat 4-1)
Status: (Passed) 2023-06-30 - Public Act . . . . . . . . . 103-0187 [HB3340 Detail]
Download: Illinois-2023-HB3340-Introduced.html
Bill Title: Amends the Illinois Municipal Code. In provisions relating to a municipality borrowing money from a bank or other financial institution, modifies the definition of "financial institution" to include the Illinois Finance Authority.
Spectrum: Moderate Partisan Bill (Democrat 4-1)
Status: (Passed) 2023-06-30 - Public Act . . . . . . . . . 103-0187 [HB3340 Detail]
Download: Illinois-2023-HB3340-Introduced.html
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1 | AN ACT concerning local government.
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2 | Be it enacted by the People of the State of Illinois,
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3 | represented in the General Assembly:
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4 | Section 5. The Illinois Municipal Code is amended by | |||||||||||||||||||
5 | changing Section 8-1-3.1 as follows:
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6 | (65 ILCS 5/8-1-3.1) (from Ch. 24, par. 8-1-3.1)
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7 | Sec. 8-1-3.1. Borrowing from financial institutions. The | |||||||||||||||||||
8 | corporate authorities may borrow money for corporate purposes | |||||||||||||||||||
9 | from one fund
for the use of another fund providing such | |||||||||||||||||||
10 | borrowing shall be repaid within
the current fiscal year.
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11 | The corporate authorities may also borrow money from any | |||||||||||||||||||
12 | bank or other
financial institution provided such money shall | |||||||||||||||||||
13 | be repaid within 10 years
from the time the money is borrowed. | |||||||||||||||||||
14 | The mayor or president of the municipality, as the case may be, | |||||||||||||||||||
15 | shall execute a promissory note or similar debt instrument, | |||||||||||||||||||
16 | but not a bond, to evidence the indebtedness incurred by the | |||||||||||||||||||
17 | borrowing. The obligation to make the payments due under the | |||||||||||||||||||
18 | promissory note or other debt instrument shall be a lawful | |||||||||||||||||||
19 | direct general obligation of the municipality payable from the | |||||||||||||||||||
20 | general funds of the municipality and such other sources of | |||||||||||||||||||
21 | payment as are otherwise lawfully available. The promissory | |||||||||||||||||||
22 | note or other debt instrument shall be authorized by an | |||||||||||||||||||
23 | ordinance passed by the corporate authorities and shall be |
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1 | valid whether or not an appropriation with respect to that | ||||||
2 | ordinance is included in any annual or supplemental | ||||||
3 | appropriation adopted by the corporate authorities. The | ||||||
4 | indebtedness incurred under this Section, when aggregated with | ||||||
5 | the existing indebtedness of the municipality, may not exceed | ||||||
6 | the debt limitation provided in Section 8-5-1 of this Code. | ||||||
7 | "Financial institution" means any bank, savings bank, savings | ||||||
8 | and loan association, or credit union established under the | ||||||
9 | laws of the United States, this State, or any other state; or
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10 | any regional planning commission or joint regional planning | ||||||
11 | commission established in accordance with Section 5-14001 or | ||||||
12 | Section 5-14003 of the Counties Code ; or the Illinois Finance | ||||||
13 | Authority .
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14 | (Source: P.A. 100-854, eff. 8-14-18.)
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