(65 ILCS 5/11-130-5) (from Ch. 24, par. 11-130-5)
Sec. 11-130-5.
Bonds provided for in this Division 130 shall be issued in
such amounts as may be necessary to provide sufficient funds to pay all
costs of the purchase or construction, including engineering, legal, and
other expenses, together with interest to a date 6 months subsequent to the
estimated date of completion. Bonds issued under this Division 130 are
negotiable instruments. They shall be executed by the mayor, or president
and by the municipal clerk and shall be sealed with the corporate seal of
the municipality. In case any of the officers whose signatures appear on
the bonds, or coupons attached thereto, ceases to hold his office before
delivery of the bonds, his signature nevertheless shall be valid and
sufficient for all purposes the same as if it had remained in office until
the delivery of the bonds. The bonds may be sold at not less than 90 cents
on the dollar, and the proceeds derived therefrom shall be used exclusively
for the purposes for which the bonds were issued. The bonds may be sold at
one time or in parcels as funds are needed, but no bond shall be delivered
until bids for the construction, or the offer to sell, in the case of a
purchase, has been received, or judgment has been entered in the event of a
condemnation, and it is apparent that the authorized bonds will pay for the
contemplated waterworks.
(Source: Laws 1961, p. 576.)
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(65 ILCS 5/11-130-6) (from Ch. 24, par. 11-130-6)
Sec. 11-130-6.
Revenue bonds issued under this Division 130 shall be
payable solely from the revenue derived from the operation of the
waterworks on account of which the bonds were issued. These bonds shall not
in any event constitute an indebtedness of the municipality within the
meaning of any constitutional or statutory limitation. It shall be plainly
stated on the face of each bond that the bond has been issued under this
Division 130 and that it does not constitute an indebtedness of the
municipality within the meaning of any constitutional or statutory
limitation.
(Source: Laws 1961, p. 576.)
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(65 ILCS 5/11-130-7) (from Ch. 24, par. 11-130-7)
Sec. 11-130-7.
There is hereby created a statutory mortgage lien upon the
waterworks so purchased or constructed from the proceeds of the bonds
authorized to be issued under this Division 130. This lien exists in favor
of the holder of each of the bonds, and in favor of the holder of each of
the coupons attached to the bonds. The waterworks shall remain subject to
this statutory mortgage lien until the principal and interest of the bonds
are paid in full. Any holder of bonds issued under this Division 130, or of
any coupons representing interest accrued thereon, may, in a civil action,
enforce the statutory mortgage lien hereby created, and may compel the performance
of the duties of the officials of
the issuing municipality set forth in this Division 130.
If there is a default in the payment of the principal of and/or interest
upon any of these bonds, the circuit court
in any proper action
may appoint a receiver to administer the waterworks on behalf of the
municipality with power to charge and collect rates sufficient to provide
for the payment of the bonds and interest thereon, and for the payment of
the operating expenses and with power to apply the revenue in conformity
with this Division 130 and the ordinance providing for the issuance of the
bonds.
(Source: P.A. 79-1361.)
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(65 ILCS 5/11-130-8) (from Ch. 24, par. 11-130-8)
Sec. 11-130-8.
Rates for water fixed precedent to the issuance of bonds
shall not be reduced until all of the bonds have been fully paid, and,
whenever necessary, may be increased in amounts sufficient to provide for
the payment of the bonds, both principal and interest, and to provide
proper funds for the depreciation account and operation and maintenance
charges.
If any surplus accumulates in the operating and maintenance fund in
excess of the cost of maintaining and operating the waterworks during the
remainder of the then current fiscal year, and during the next ensuing
fiscal year, that excess may be transferred by the corporate authorities
either to the depreciation account or to the bond and interest redemption
account as the corporate authorities may designate. If any surplus
accumulates in the depreciation account over and above that which the
corporate authorities find may be necessary for the probable replacements
which may be needed during the remainder of the then present fiscal year
and the next ensuing fiscal year, that excess may be transferred to the
bond and interest redemption account. If any surplus exists in the bond and
interest redemption account that surplus shall be applied insofar as
possible in the purchase or retirement of outstanding revenue bonds payable
from that account, and for that purpose the corporate authorities are
hereby authorized to purchase bonds not due in the open market at not more
than the fair market value thereof.
(Source: Laws 1961, p. 576.)
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