Bill Text: IL SB0734 | 2017-2018 | 100th General Assembly | Engrossed

Bill Title: Amends the Illinois Municipal Code. Provides that the definition of "financial institution" in the Finance Division of the Code includes any savings bank, savings and loan association, or credit union (currently, savings and loan associations and federally chartered commercial bank or savings and loan association) and regional planning commissions or joint regional planning commissions. Effective immediately.

Spectrum: Slight Partisan Bill (Democrat 3-1)

Status: (Engrossed) 2017-06-30 - House Committee Amendment No. 1 Motion To Concur Recommended Do Adopt Local Government; 005-002-000 [SB0734 Detail]

Download: Illinois-2017-SB0734-Engrossed.html

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1 AN ACT concerning local government.
2 Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
4 Section 5. The Illinois Municipal Code is amended by
5changing Section 8-1-3.1 as follows:
6 (65 ILCS 5/8-1-3.1) (from Ch. 24, par. 8-1-3.1)
7 Sec. 8-1-3.1. Borrowing from financial institutions. The
8corporate authorities may borrow money for corporate purposes
9from one fund for the use of another fund providing such
10borrowing shall be repaid within the current fiscal year.
11 The corporate authorities may also borrow money from any
12bank or other financial institution provided such money shall
13be repaid within 10 years from the time the money is borrowed.
14The mayor or president of the municipality, as the case may be,
15shall execute a promissory note or similar debt instrument, but
16not a bond, to evidence the indebtedness incurred by the
17borrowing. The obligation to make the payments due under the
18promissory note or other debt instrument shall be a lawful
19direct general obligation of the municipality payable from the
20general funds of the municipality and such other sources of
21payment as are otherwise lawfully available. The promissory
22note or other debt instrument shall be authorized by an
23ordinance passed by the corporate authorities and shall be

SB0734 Engrossed- 2 -LRB100 06799 AWJ 16847 b
1valid whether or not an appropriation with respect to that
2ordinance is included in any annual or supplemental
3appropriation adopted by the corporate authorities. The
4indebtedness incurred under this Section, when aggregated with
5the existing indebtedness of the municipality, may not exceed
6the debt limitation provided in Section 8-5-1 of this Code.
7"Financial institution" means any bank subject to the "Illinois
8Banking Act", any bank, savings bank, savings and loan
9association, or credit union established under the laws of the
10United States, this State, or any other state; or subject to
11the "Illinois Savings and Loan Act of 1985", any federally
12chartered commercial bank or savings and loan association
13organized and operated in this State pursuant to the laws of
14the United States, and any regional planning commission or
15joint regional planning commission established in accordance
16with Section 5-14001 or Section 5-14003 of the Counties Code.
17(Source: P.A. 95-693, eff. 11-5-07; 96-1047, eff. 7-14-10.)
18 Section 99. Effective date. This Act takes effect upon
19becoming law.