(55 ILCS 5/6-10003) (from Ch. 34, par. 6-10003)
Sec. 6-10003.
Exchange or sale of refunding bonds.
The refunding bonds may be exchanged for the bonds to be refunded
on the basis of dollar for dollar for the par value of the bonds, interest
coupons, and interest not represented by coupons, if any. Instead of this
exchange, the refunding bonds may be sold at not less than their par value
and accrued interest. The proceeds received from their sale shall be used
to pay the bonds, interest coupons, and interest not represented by
coupons, if any. This payment may be made without any prior appropriation
therefor under any budget law.
Bonds and interest coupons which have been received in exchange or paid
shall be cancelled and the obligation for interest, not represented by
coupons, which has been discharged, shall be evidenced by a written
acknowledgment of the exchange or payment thereof.
(Source: P.A. 86-962.)
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(55 ILCS 5/6-10004) (from Ch. 34, par. 6-10004)
Sec. 6-10004.
Form of refunding bonds; maturity.
The
refunding bonds shall be of such form and denomination, payable
at such place, bear such date, and be executed by such officials as may be
provided by the corporate authorities of the county in the bond ordinance.
They shall mature within not to exceed twenty years from their date, and
may be made callable on any interest payment date at par and accrued
interest after notice has been given at the time and in the manner provided
in the bond ordinance.
If there is no default in payment of the principal of or interest upon
the refunding bonds, and if after setting aside a sum of money equal to the
amount of interest that will accrue on the refunding bonds, and a sum of
money equal to the amount of principal that will become due thereon, within
the next six months period, the treasurer and comptroller, if there is a
comptroller, of the county shall use the money available from the proceeds
of taxes levied for the payment of the refunding bonds in calling them for
payment, if, by their terms, they are subject to redemption. However, a
county may provide in the bond ordinance that, whenever the county is not
in default in payment of the principal of or interest upon the refunding
bonds and has set aside the sums of money provided in this paragraph for
interest accruing and principal maturing within the next six months period,
the money available from the proceeds of taxes levied for the payment of
refunding bonds shall be used, first, in the purchase of the refunding
bonds at the lowest price obtainable, but not to exceed their par value and
accrued interest, after sealed tenders for their purchase have been
advertised for as may be directed by the corporate authorities thereof.
Refunding bonds called for payment and paid or purchased under this
Section shall be marked paid and cancelled.
(Source: P.A. 86-962.)
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(55 ILCS 5/6-10005) (from Ch. 34, par. 6-10005)
Sec. 6-10005.
Reduction of tax.
Whenever any refunding bonds are
purchased and cancelled, as provided in Section 6-10004, the taxes
thereafter to be extended for payment of the principal of and the interest
on the remainder of the issue shall be reduced in an amount equal to the
principal of and the interest that would have thereafter accrued upon the
refunding bonds so cancelled. A resolution shall be adopted by the
corporate authorities of the county finding these facts. A certified copy
of this resolution shall be filed with the county clerk, whereupon the
county clerk shall reduce and extend such tax levies in accordance therewith.
Whenever refunding bonds are issued, proper reduction of taxes,
theretofore levied for the payment of the bonds refunded and next to be
extended for collection, shall be made by the county clerk upon receipt of
a certificate signed by the treasurer and the comptroller, if there is a
comptroller, of the county, showing the bonds refunded and the tax to be
abated.
(Source: P.A. 86-962.)
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(55 ILCS 5/6-10006) (from Ch. 34, par. 6-10006)
Sec. 6-10006.
Sinking fund.
Money which becomes available from taxes
that were levied for prior years for payment of bonds or interest coupons
that were paid or refunded before those taxes were collected, after payment
of all warrants that may have been issued in anticipation of these taxes,
shall be placed in the sinking fund account provided in this Section. It
shall be used to purchase, call for payment, or to pay at maturity
refunding bonds and interest thereon as herein provided.
Money received from the proceeds of taxes levied for the payment of the
principal of and interest upon refunding bonds shall be deposited in a
special fund of the county. It shall be designated as the "Refunding Bond
and Interest Sinking Fund Account of ....." This fund shall be faithfully
applied to the purchase or payment of refunding bonds and the interest
thereon as provided in this Division.
If the money in this fund is not immediately necessary for the payment
of refunding bonds or if refunding bonds can not be purchased before
maturity, then, under the direction of the corporate authorities of the
county, the money may be invested by the treasurer and the comptroller, if
there is a comptroller, of the county, in bonds or other interest bearing
obligations of the United States or in bonds of the State of Illinois.
The maturity date of the securities in which this money is invested
shall be prior to the due date of any issue of refunding bonds of the
investing county. The corporate authorities may sell these securities
whenever necessary to obtain cash to meet bond and interest payments.
(Source: P.A. 86-962.)
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(55 ILCS 5/6-10007) (from Ch. 34, par. 6-10007)
Sec. 6-10007.
Procedure by corporate authorities to effectuate
refunding plan. The corporate authorities of a county may take any action
that may be necessary to inform the owners of unpaid bonds regarding the
financial condition of the county, the necessity of refunding its unpaid
bonds and readjusting the maturities thereof in order that sufficient taxes
may be collected to take care of these bonds, and thus re-establish the
credit of the county. The corporate authorities may enter into any
agreement required to prepare and carry out any refunding plan and, without
any previous appropriation therefor under any budget law, may incur and pay
expenditures that may be necessary in order to accomplish the refunding of
the bonds of the county.
(Source: P.A. 86-962.)
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(55 ILCS 5/6-10008) (from Ch. 34, par. 6-10008)
Sec. 6-10008.
Applicability.
This Division shall apply to
any county regardless of the law under which it is organized and operating,
and shall constitute complete authority for issuing refunding bonds as
herein provided without reference to other laws. This Division
shall be construed as conferring powers in addition to, but not as limiting
powers granted under other laws.
(Source: P.A. 86-962.)
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(55 ILCS 5/Div. 6-11 heading) Division 6-11.
Funding Bonds - Counties
under 70,000 Population
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(55 ILCS 5/6-11001) (from Ch. 34, par. 6-11001)
Sec. 6-11001.
Resolution directing issuance of bonds.
If no petition
for referendum is filed as provided in this Division, or if such petition
is filed and election is had and a majority of the voters voting on the
proposition vote in favor thereof, then the county board may adopt a
resolution directing the issuance of any or all of the bonds described in
the resolution of intention, fixing the details thereof and levying a tax
to pay the same. The bonds shall mature at such time or times as is fixed
in said resolution but not more than 20 years from the date of such bonds,
shall bear interest at not more than the maximum rate authorized by the
Bond Authorization Act, as amended at the time of the making of the
contract, payable annually or semi-annually, and be payable at such place
or places as shall be fixed in said resolution, and shall be signed in the
manner and by the officials directed by the resolution to sign the same.
The amount of such bonds which may be issued shall not be subject to any
statutory debt limitation. Any of the bonds authorized pursuant to the
provisions of this Division may be exchanged for at least a like par amount of
the claims described in the resolution of intention, or said bonds, or some
of them, may be sold for not less than the par value thereof and the
proceeds used to pay at least a like par amount of such claims, provided,
however, said bonds may be delivered from time to time or all at one time.
With respect to instruments for the payment of money issued under this
Section or its predecessor either before, on, or after the effective date
of Public Act 86-4, it is and always has been the intention of the General
Assembly (i) that the Omnibus Bond Acts are and always have been
supplementary grants of power to issue instruments in accordance with the
Omnibus Bond Acts, regardless of any provision of this Division or "An Act
to authorize any county having a population of less than 70,000 to issue
funding bonds and to provide for the validation of claims to be paid by or
from the proceeds of such bonds", filed June 19, 1939, that may appear
to be or to have been more restrictive than those Acts, (ii) that the
provisions of this Section or its predecessor are not a limitation on the
supplementary authority granted by the Omnibus Bond Acts, and (iii) that
instruments issued under this Section or its predecessor within the
supplementary authority granted by the Omnibus Bond Acts are not invalid
because of any provision of this Division or "An Act to authorize any
county having a population of less than 70,000 to issue funding bonds and
to provide for the validation of claims to be paid by or from the proceeds
of such bonds", filed June 19, 1939, that may appear to be or to have been
more restrictive than those Acts.
(Source: P.A. 86-962; 86-1028.)
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(55 ILCS 5/6-11002) (from Ch. 34, par. 6-11002)
Sec. 6-11002.
Extension of tax to pay funding bonds.
It shall
be the duty of such county clerk annually when extending
taxes for other corporate purposes to extend taxes for the purpose of
paying the principal of and interest on the bonds therein authorized as
directed in and by said resolution. Such tax shall not be subject to any
statutory limitation as to rate or amount.
(Source: P.A. 86-962.)
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(55 ILCS 5/6-11003) (from Ch. 34, par. 6-11003)
Sec. 6-11003.
Bondholder's rights.
The holder of any such bonds shall
not be obligated to inquire into the validity of the claims funded, but
shall be entitled to rely upon the proceedings taken pursuant to the
provisions of this Division with respect thereto as establishing the
validity of the items funded and the power to issue such bonds. The
adoption of the resolution, which declares the intention of the county
board to issue funding bonds under the provisions of this Division, shall
be deemed a validation of the claims therein set forth insofar as there may
be any question as to the legality of any or all of the same.
(Source: P.A. 86-962.)
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(55 ILCS 5/6-11004) (from Ch. 34, par. 6-11004)
Sec. 6-11004.
Partial invalidity.
The invalidity of any Section or
portion of this Division shall not affect the remainder hereof. This
Division shall not be construed as repealing or modifying any existing
statute with respect to the issuance of bonds, but shall be deemed to be
additional authority to issue funding bonds.
(Source: P.A. 86-962.)
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