Updating the database of the Illinois Compiled Statutes (ILCS) is an ongoing process. Recent laws may not yet be included in the ILCS database, but they are found on this site as Public Acts soon after they become law. For information concerning the relationship between statutes and Public Acts, refer to the Guide.

Because the statute database is maintained primarily for legislative drafting purposes, statutory changes are sometimes included in the statute database before they take effect. If the source note at the end of a Section of the statutes includes a Public Act that has not yet taken effect, the version of the law that is currently in effect may have already been removed from the database and you should refer to that Public Act to see the changes made to the current law.

65 ILCS 5/11-122-3

(65 ILCS 5/11-122-3) (from Ch. 24, par. 11-122-3)

Sec. 11-122-3.

For the purpose of acquiring street railways either by
purchase or construction, as provided for in this Division 122, or for the
equipment of any such street railways, any city may borrow money and issue
its negotiable bonds therefor, pledging the faith and credit of the city.
But no such bonds shall be issued unless the proposition to issue the bonds
is first submitted to the electors of the city and approved by two-thirds
of those voting thereon, nor shall the bonds be issued in an amount in
excess of the cost to the city of the property for which the bonds are
issued, ascertained as provided in this Division 122, and 10% of that cost
in addition thereto.

In the exercise of the powers, or any of them, granted by this Division
122, a city has the power to acquire, take, and hold all necessary
property, real, personal, or mixed, for the purposes specified in this
Division 122, either by purchase or condemnation in the manner provided by
law for the taking and condemning of private property for public use.
However, in no valuation of street railway property for the purpose of any
such acquisition, except of street railways now operated under existing
franchises, shall any sum be included as the value of any earning power of
that property or of the unexpired portion of any franchise granted by the
city.

(Source: Laws 1961, p. 576.)

65 ILCS 5/11-122-4

(65 ILCS 5/11-122-4) (from Ch. 24, par. 11-122-4)

Sec. 11-122-4.

In lieu of issuing bonds pledging the faith and credit of
the city, as provided for in Section 11-122-3, any city may issue and
dispose of interest bearing certificates, to be known as "street railway
certificates," which, under no circumstances, shall be or become an
obligation or liability of the city or payable out of any general fund
thereof, but shall be payable solely out of a specified portion of the
income to be derived from the street railway property for the acquisition
of which they were issued. These certificates shall not be issued and
secured by any street railway property in an amount in excess of the cost
to the city of that property, as provided in this Division 122, and 10% of
that cost in addition thereto.

In order to secure the payment of these street railway certificates and
the interest thereon, the city may convey, by way of mortgage or deed of
trust, any or all of the street railway property acquired or to be acquired
through the issuance thereof. This mortgage or deed of trust shall be
executed in such manner as may be directed by the city council and
acknowledged and recorded in the manner provided by law for the
acknowledgment and recording of mortgages of real estate, and may contain
such provisions and conditions not in conflict with the provisions of this
Division 122 as may be deemed necessary to fully secure the payment of the
street railway certificates described therein. The mortgage or deed of
trust may contain the grant of a privilege or right to maintain and operate
the street railway property covered thereby, for a period not exceeding 20
years from the date that that property may come into the possession of any
person as the result of foreclosure proceedings. This privilege or right
may fix the rates of fare which the person securing the privilege or right
as the result of foreclosure proceedings shall be entitled to charge in the
operation of the property for a period not exceeding 20 years.

Whenever, and as often as, default is made in the payment of any street
railway certificate issued and secured by a mortgage or deed of trust, as
provided in this section, or in the payment of the interest thereon when
due, and that default has continued for the space of 12 months, after
notice thereof has been given to the mayor and the financial officer of the
city issuing the certificates, it is lawful for the mortgagee or trustee,
upon the request of the holders of a majority in amount of the certificates
issued and outstanding under the mortgage or deed of trust, to declare the
whole of the principal of all such certificates as may be outstanding, to
be at once due and payable, and to proceed to foreclose the mortgage or
deed of trust in any court of competent jurisdiction.

At a foreclosure sale, the mortgagee, or trustee, or the holders of the
certificates may become the purchaser or purchasers of the property and the
rights and privileges sold, if he or they be the highest bidders. Any
street railway acquired under such a foreclosure shall be subject to
regulation by the corporate authorities of the city to the same extent as
if the right to construct, maintain, and operate that property had been
acquired through a direct grant without the intervention of foreclosure
proceedings.

However, no street railway certificates, mortgage, or deed of trust
shall ever be issued by any city under the provisions of this Division 122
until the question of the adoption of the ordinance making provision for
the issuance thereof has been submitted to a popular vote and approved by a
majority of the electors of the city voting upon that question.

(Source: Laws 1961, p. 576.)

65 ILCS 5/11-122-5

(65 ILCS 5/11-122-5) (from Ch. 24, par. 11-122-5)

Sec. 11-122-5.

Every city owning, or owning and operating, street railways,
shall keep the books of account for these street railways distinct from
other city accounts and in such manner as to show the true and complete
financial results of the city ownership, or ownership and operation, as the
case may be. These accounts shall be so kept as to show: (1) the actual
cost to the city of street railways owned, (2) all costs of maintenance,
extension, and improvement, (3) all operating expenses of every
description, in case of city operation, (4) the amount set aside for
sinking fund purposes, (5) if water or other service is furnished for the
use of the street railways without charge, as nearly as possible, the value
of this service, and also the value of any similar service rendered by the
street railways to any other city department without charge, (6) reasonable
allowances for interest, depreciation, and insurance, and (7) estimates of
the amount of taxes that would be chargeable against the property if owned
by a private corporation. The city council shall print annually for public
distribution, a report showing the financial results, in the form specified
in this section, of the city ownership, or ownership and operation.

The accounts of those street railways, shall be examined at least once a
year by a licensed Certified Public Accountant permitted to perform audits under the Illinois Public Accounting Act, who shall report to the city council the
results of his examination. This accountant shall be selected in
such manner as the city council may direct, and he shall receive for his
services such compensation, to be paid out of the income from those street
railways, as the city council may prescribe.

(Source: P.A. 94-465, eff. 8-4-05.)