Bill Amendment: IL SB3597 | 2023-2024 | 103rd General Assembly

NOTE: For additional amemendments please see the Bill Drafting List

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Bill Title: COUNTIES CD-BORROWING MONEY

Status: 2024-08-09 - Public Act . . . . . . . . . 103-1023 [SB3597 Detail]

Download: Illinois-2023-SB3597-Senate_Amendment_001.html

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Sen. Rachel Ventura

Filed: 3/8/2024

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AMENDMENT TO SENATE BILL 3597
AMENDMENT NO. ______. Amend Senate Bill 3597 by replacing
everything after the enacting clause with the following:
"Section 5. The Counties Code is amended by changing
Section 5-1135 as follows:
(55 ILCS 5/5-1135)
Sec. 5-1135. Borrowing from financial institutions. The
county board of a county may borrow money for any corporate
purpose from any bank or other financial institution provided
such money shall be repaid within 2 years from the time the
money is borrowed. The county board chairman or county
executive, as the case may be, shall execute a promissory note
or similar debt instrument, but not a bond, to evidence the
indebtedness incurred by the borrowing. The obligation to make
the payments due under the promissory note or other debt
instrument shall be a lawful direct general obligation of the

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county payable from the general funds of the county and such
other sources of payment as are otherwise lawfully available.
The promissory note or other debt instrument shall be
authorized by an ordinance passed by the county board and
shall be valid whether or not an appropriation with respect to
that ordinance is included in any annual or supplemental
appropriation adopted by the county board. The indebtedness
incurred under this Section, when aggregated with the existing
indebtedness of the county, may not exceed any debt limitation
otherwise provided for by law. "Financial institution" means
any bank subject to the Illinois Banking Act, any savings and
loan association subject to the Illinois Savings and Loan Act
of 1985, any savings bank subject to the Savings Bank Act, any
credit union subject to the Illinois Credit Union Act, and any
federally chartered commercial bank, savings and loan
association, savings bank, or credit union organized and
operated in this State pursuant to the laws of the United
States, and the Illinois Finance Authority.
(Source: P.A. 98-525, eff. 8-23-13; 98-756, eff. 7-16-14.)
Section 10. The Township Code is amended by changing
Section 240-5 as follows:
(60 ILCS 1/240-5)
Sec. 240-5. Borrowing money. The township board may
borrow money (i) from any bank or financial institution if the

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money is to be repaid within 10 years from the time it is
borrowed or (ii) with the approval of the highway
commissioner, from a township road district fund, if the money
is to be repaid within one year from the time it is borrowed.
"Financial institution" means any bank subject to the Illinois
Banking Act, any savings and loan association subject to the
Illinois Savings and Loan Act of 1985, and any federally
chartered commercial bank or savings and loan association
organized and operated in this State under the laws of the
United States, and the Illinois Finance Authority.
(Source: P.A. 93-743, eff. 7-15-04.)
Section 15. The School Code is amended by adding Section
22-100 as follows:
(105 ILCS 5/22-100 new)
Sec. 22-100. Financing from the Illinois Finance
Authority.
(a) The school board of a school district may apply for and
obtain a loan from the Illinois Finance Authority to build,
purchase, or lease new clean energy infrastructure or perform
maintenance or improvements on existing clean energy
infrastructure. The school board may also issue bonds in
association with the loan under subsection (e). Except as
provided in subsection (e), before the school board may apply
for a loan or issue a bond under this Section, the school board

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must first adopt a resolution and receive approval by
proposition under subsection (b).
(b) The school board shall adopt a resolution for a
proposition to apply for a loan with the Illinois Finance
Authority or to have the Illinois Finance Authority issue
bonds, or both, for the purposes described in subsection (a)
and, after adoption of the resolution, shall certify the
proposition to the proper election authority. The election
authority shall submit the proposition to the voters of the
district at an election in accordance with general election
law. The proposition of financing moneys through the Illinois
Finance Authority for the purpose of building, purchasing, or
leasing new clean energy infrastructure or performing
maintenance or improvements on existing clean energy
infrastructure within the school district and issuing bonds in
association with the loan may be combined into one or more
propositions on the ballot. The form of the proposition
submitted to the voters shall be substantially in one of the
following forms:
(1) If the proposition is requesting both a loan and
bonds, the proposition shall be substantially as follows:
"Shall (name of school district) borrow (amount)
from the Illinois Finance Authority to (build,
purchase, or lease new clean energy infrastructure or
perform maintenance or improvements on existing clean
energy infrastructure) and have the Illinois Finance

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Authority issue bonds in the amount of (amount) in
association with the loan?"
The votes shall be recorded as "Yes" or "No".
(2) If the proposition is requesting only a loan, the
proposition shall be substantially as follows:
"Shall (name of school district) borrow (amount)
from the Illinois Finance Authority to (build,
purchase, or lease new clean energy infrastructure or
perform maintenance or improvements on existing clean
energy infrastructure)?"
The votes shall be recorded as "Yes" or "No".
(3) If the proposition is requesting only a bond, the
proposition shall be substantially as follows:
"Shall (name of school district) have the Illinois
Finance Authority issue bonds in the amount of
(amount) in association with a loan obtained from the
Illinois Finance Authority to (build, purchase, or
lease new clean energy infrastructure or perform
maintenance or improvements on existing clean energy
infrastructure)?"
The votes shall be recorded as "Yes" or "No".
(c) If a majority of the votes on a proposition requesting
bonding authority under subsection (b) are in favor of a
proposition for bonds, the school board shall adopt a
resolution authorizing the Illinois Finance Authority to issue
the bonds, prescribing all the details of the issuance and

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stating when the principal and interest shall become payable
and the place of payment. These bonds shall be sold in a
manner, at a price, and in denominations determined by the
Illinois Finance Authority, with the approval of the school
board. The amount of the bonds issued shall not exceed 2.3% of
the value of the taxable property of the district as
ascertained by the assessment for the State and county taxes
for the preceding year, nor shall the amount of the bonds
issued exceed, including the then existing indebtedness of the
district, 5.75% of the value of the taxable property of the
district as ascertained by the assessment for the State and
county taxes for the preceding year.
(d) Upon adoption of a resolution by the school board
under subsection (c), the Illinois Finance Authority may issue
bonds in an amount not to exceed that approved by the voters at
the election. The bonds shall be signed by the Illinois
Finance Authority, after the approval of the school board,
shall mature not later than 20 years from the date of issuance,
and shall bear interest at a rate not to exceed the maximum
rate authorized by the Bond Authorization Act at the time of
the making of the contract. The bonds shall be sold at no less
than par.
(e) Notwithstanding any provision of this Section to the
contrary, the school board of a school district may, by
resolution, apply for and obtain a loan from the Illinois
Finance Authority to build, purchase, or lease new clean

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