Bill Text: IL HB3340 | 2023-2024 | 103rd General Assembly | Chaptered
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-Chaptered.html
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| Public Act 103-0187 | ||||
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AN ACT concerning local government.
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Be it enacted by the People of the State of Illinois,
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represented in the General Assembly:
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Section 5. The Illinois Municipal Code is amended by | ||||
changing Section 8-1-3.1 as follows:
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(65 ILCS 5/8-1-3.1) (from Ch. 24, par. 8-1-3.1)
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Sec. 8-1-3.1. Borrowing from financial institutions. The | ||||
corporate authorities may borrow money for corporate purposes | ||||
from one fund
for the use of another fund providing such | ||||
borrowing shall be repaid within
the current fiscal year.
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The corporate authorities may also borrow money from any | ||||
bank or other
financial institution provided such money shall | ||||
be repaid within 10 years
from the time the money is borrowed. | ||||
The mayor or president of the municipality, 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 municipality payable from the | ||||
general funds of the municipality 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 corporate authorities 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 corporate authorities. The | ||
indebtedness incurred under this Section, when aggregated with | ||
the existing indebtedness of the municipality, may not exceed | ||
the debt limitation provided in Section 8-5-1 of this Code. | ||
"Financial institution" means any bank, savings bank, savings | ||
and loan association, or credit union established under the | ||
laws of the United States, this State, or any other state; or
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any regional planning commission or joint regional planning | ||
commission established in accordance with Section 5-14001 or | ||
Section 5-14003 of the Counties Code; or the Illinois Finance | ||
Authority.
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(Source: P.A. 100-854, eff. 8-14-18.)
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