(65 ILCS 5/8-4.1-11) (from Ch. 24, par. 8-4.1-11)
Sec. 8-4.1-11.
A municipality may pledge, as
security for the payment of its Bonds, (a) revenues
derived from the operation of any
utility system or revenue producing enterprise; (b) moneys deposited or to
be deposited in any special fund of the municipality; (c) grants or other
revenues expected to be received by the municipality from the state or
federal government; (d) special assessments to be collected with respect to
a local improvement financed with the proceeds of Bonds; or (e) payments to
be made by another unit of local government pursuant to a service agreement
with the municipality.
Any such pledge made by a municipality shall be valid and binding from
the time such pledge is made. The revenues, moneys and other funds so
pledged and thereafter received by the municipality shall immediately be
subject to the lien of such pledge without any physical delivery thereof or
further act; and, subject only to the provisions of prior agreements, the
lien of such pledge shall be valid and binding as against all parties
having claims of any kind in trust, contract
or otherwise against the municipality irrespective of whether such parties
have notice thereof. No ordinance, resolution, trust agreement or other
instrument by which such pledge is created need be filed or recorded;
except in the records of the municipality.
(Source: P.A. 85-158.)
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