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91_SB1627enr SB1627 Enrolled LRB9112143MWgc 1 AN ACT concerning local government debt. 2 Be it enacted by the People of the State of Illinois, 3 represented in the General Assembly: 4 Section 5. The Local Government Debt Reform Act is 5 amended by changing Sections 5, 13, 15, and 17 and by adding 6 Section 16.5 as follows: 7 (30 ILCS 350/5) (from Ch. 17, par. 6905) 8 Sec. 5. Backdoor referendum procedure. (a) Whenever 9 applicable law provides that the authorization or the 10 issuance of bonds, or the becoming effective of an ordinance 11 providing for the authorization or issuance of bonds, may be 12 subject to a backdoor referendum, the provisions of this 13 Section may be used as an alternative to the specific 14 procedures as otherwise set forth by applicable law. 15 (b) The governing body may adopt an authorizing 16 ordinance describing briefly the authority under which bonds 17 are proposed to be issued, the nature of the project or 18 purpose to be financed, the estimated total costs of the 19 project or purpose, including in such costs all items related 20 to financing the project or purpose, and the maximum amount 21 of bonds authorized to be issued to pay such costs. No 22 further details or specifications are required in such 23 authorizing ordinance. Such authorizing ordinance, along 24 with any other notice as required by applicable law, 25 including any notice as to the right of electors to file a 26 petition and the number of voters required to sign any such 27 petition, shall be published at least once in a newspaper of 28 general circulation in the governmental unit. The governing 29 body may, but is not required to, post the notice 30 electronically on its World Wide Web pagesor posted as31required by applicable law. A petition may be filed after SB1627 Enrolled -2- LRB9112143MWgc 1 such publication or posting during the period as provided by 2 applicable law; but upon the expiration of any such period 3 without the filing of a petition meeting the requirements of 4 the applicable law, the governing body shall be authorized to 5 issue such bonds as if they had followed all necessary 6 procedures set forth in such applicable law. 7 (c) If no petition meeting the requirements of 8 applicable law is filed during the petition period, then the 9 governing body may adopt additional ordinances or proceedings 10 supplementing or amending the authorizing ordinance so long 11 as the maximum amount of bonds as set forth in the 12 authorizing ordinance is not exceeded and there is no 13 material change in the project or purpose described in the 14 authorizing ordinance. Such additional ordinances or 15 proceedings shall in all instances become effective 16 immediately without publication or posting or any further act 17 or requirement. The authorizing ordinance, together with 18 such additional ordinance or proceedings, shall constitute 19 complete authority for the issuance of such bonds under 20 applicable law. 21 (d) If applicable law provides that notice alone shall 22 be given to commence a backdoor referendum, the notice shall 23 be published at least once in a newspaper of general 24 circulation in the governmental unit. The governing body 25 may, but is not required to, post the notice electronically 26 on its World Wide Web pages. 27 (Source: P.A. 85-1419.) 28 (30 ILCS 350/13) (from Ch. 17, par. 6913) 29 Sec. 13. Certain pledges. A governmental unit may 30 pledge, as security for the payment of its bonds, (1) 31 revenues derived from the operation of any utility system or 32 revenue producing enterprise, (2) moneys deposited or to be 33 deposited into any special fund of the governmental unit, (3) SB1627 Enrolled -3- LRB9112143MWgc 1 grants or other revenues or taxes expected to be received by 2 the governmental unit from the State or federal government, 3 including taxes imposed by the governmental unit pursuant to 4 grant of authority by the State, such as sales or use taxes 5 or utility taxes, (4) special assessments to be collected 6 with respect to a local improvement financed with the 7 proceeds of bonds, or (5) payments to be made by another 8 governmental unit pursuant to a service, user or other 9 similar agreement with such governmental unit. 10 Any such pledge made by a governmental unit shall be 11 valid and binding from the time such pledge is made. The 12 revenues, moneys and other funds so pledged and thereafter 13 received by the governmental unit shall immediately be 14 subject to the lien of such pledge without any physical 15 delivery thereof or further act; and, subject only to the 16 provisions of prior agreements, the lien of such pledge shall 17 be valid and binding as against all parties having claims of 18 any kind in tort, contract or otherwise against the 19 governmental unit irrespective of whether such parties have 20 notice thereof. Pursuant to any such pledge, a governmental 21 unit may bind itself to impose rates, charges or taxes to the 22 fullest extent permitted by applicable law. No ordinance, 23 resolution, trust agreement or other instrument by which such 24 pledge is created need be filed or recorded except in the 25 records of the governmental unit. 26 The State Treasurer, the State Comptroller, the 27 Department of Revenue, the Department of Transportation, the 28 State Superintendent of Education, or any Regional 29 Superintendent of Schools shall deposit or cause to be 30 deposited any amount of grants or other revenues or taxes 31 expected to be received by a governmental unit from that 32 official or entity that have been pledged to the payment of 33 bonds of the governmental unit, in accordance with the 34 authorization of the governmental unit, directly into a SB1627 Enrolled -4- LRB9112143MWgc 1 designated escrow account established by the governmental 2 unit. The ordinance authorizing that disposition shall, 3 within 10 days after adoption by the governing body of the 4 governmental unit, be filed with the official or entity 5 having custody of the pledged grants or other revenues or 6 taxes. 7 (Source: P.A. 85-1419.) 8 (30 ILCS 350/15) (from Ch. 17, par. 6915) 9 Sec. 15. Double-barrelled bonds. Whenever revenue bonds 10 have been authorized to be issued pursuant to applicable law 11 or whenever there exists for a governmental unit a revenue 12 source, the procedures set forth in this Section may be used 13 by a governing body. General obligation bonds may be issued 14 in lieu of such revenue bonds as authorized, and general 15 obligation bonds may be issued payable from any revenue 16 source. Such general obligation bonds may be referred to as 17 "alternate bonds". Alternate bonds may be issued without any 18 referendum or backdoor referendum except as provided in this 19 Section, upon the terms provided in Section 10 of this Act 20 without reference to other provisions of law, but only upon 21 the conditions provided in this Section. Alternate bonds 22 shall not be regarded as or included in any computation of 23 indebtedness for the purpose of any statutory provision or 24 limitation except as expressly provided in this Section. 25 Such conditions are: 26 (a) Alternate bonds shall be issued for a lawful 27 corporate purpose. If issued in lieu of revenue bonds, 28 alternate bonds shall be issued for the purposes for which 29 such revenue bonds shall have been authorized. If issued 30 payable from a revenue source in the manner hereinafter 31 provided, which revenue source is limited in its purposes or 32 applications, then the alternate bonds shall be issued only 33 for such limited purposes or applications. Alternate bonds SB1627 Enrolled -5- LRB9112143MWgc 1 may be issued payable from either enterprise revenues or 2 revenue sources, or both. 3 (b) Alternate bonds shall be subject to backdoor 4 referendum. The provisions of Section 5 of this Act shall 5 apply to such backdoor referendum, together with the 6 provisions hereof. The authorizing ordinance shall be 7 published in a newspaper of general circulation in the 8 governmental unit. Along with or as part of the authorizing 9 ordinance, there shall be published a notice of (1) the 10 specific number of voters required to sign a petition 11 requesting that the issuance of the alternate bonds be 12 submitted to referendum, (2) the time when such petition must 13 be filed, (3) the date of the prospective referendum, and 14 (4), with respect to authorizing ordinances adopted on or 15 after January 1, 1991, a statement that identifies any 16 revenue source that will be used to pay the principal of and 17 interest on the alternate bonds. The clerk or secretary of 18 the governmental unit shall make a petition form available to 19 anyone requesting one. If no petition is filed with the 20 clerk or secretary within 30 days of publication of the 21 authorizing ordinance and notice, the alternate bonds shall 22 be authorized to be issued. But if within this 30 days 23 period, a petition is filed with such clerk or secretary 24 signed by electors numbering the greater of (i) 7.5% of the 25 registered voters in the governmental unit or (ii) 200 of 26 those registered voters or 15% of those registered voters, 27 whichever is less, asking that the issuance of such alternate 28 bonds be submitted to referendum, the clerk or secretary 29 shall certify such question for submission at an election 30 held in accordance with the general election law. The 31 question on the ballot shall include a statement of any 32 revenue source that will be used to pay the principal of and 33 interest on the alternate bonds. The alternate bonds shall be 34 authorized to be issued if a majority of the votes cast on SB1627 Enrolled -6- LRB9112143MWgc 1 the question at such election are in favor thereof provided 2 that notice of the bond referendum, if held before July 1, 3 1999, has been given in accordance with the provisions of 4 Section 12-5 of the Election Code in effect at the time of 5 the bond referendum, at least 10 and not more than 45 days 6 before the date of the election, notwithstanding the time for 7 publication otherwise imposed by Section 12-5. Notices 8 required in connection with the submission of public 9 questions on or after July 1, 1999 shall be as set forth in 10 Section 12-5 of the Election Code. Backdoor referendum 11 proceedings for bonds and alternate bonds to be issued in 12 lieu of such bonds may be conducted at the same time. 13 (c) To the extent payable from enterprise revenues, such 14 revenues shall have been determined by the governing body to 15 be sufficient to provide for or pay in each year to final 16 maturity of such alternate bonds all of the following: (1) 17 costs of operation and maintenance of the utility or 18 enterprise, but not including depreciation, (2) debt service 19 on all outstanding revenue bonds payable from such enterprise 20 revenues, (3) all amounts required to meet any fund or 21 account requirements with respect to such outstanding revenue 22 bonds, (4) other contractual or tort liability obligations, 23 if any, payable from such enterprise revenues, and (5) in 24 each year, an amount not less than 1.25 times debt service of 25 all (i) alternate bonds payable from such enterprise revenues 26 previously issued and outstanding and (ii) alternate bonds 27 proposed to be issued. To the extent payable from one or 28 more revenue sources, such sources shall have been determined 29 by the governing body to provide in each year, an amount not 30 less than 1.25 times debt service of all alternate bonds 31 payable from such revenue sources previously issued and 32 outstanding and alternate bonds proposed to be issued. The 33 conditions enumerated in this subsection (c) need not be met 34 for that amount of debt service provided for by the setting SB1627 Enrolled -7- LRB9112143MWgc 1 aside of proceeds of bonds or other moneys at the time of the 2 delivery of such bonds. 3 (c-1) In the case of alternate bonds issued as variable 4 rate bonds (including refunding bonds), debt service shall be 5 projected based on the rate for the most recent date shown in 6 the 20 G.O. Bond Index of average municipal bond yields as 7 published in the most recent edition of The Bond Buyer 8 published in New York, New York (or any successor publication 9 or index, or if such publication or index is no longer 10 published, then any index of long-term municipal tax-exempt 11 bond yields selected by the governmental unit), as of the 12 date of determination referred to in subsection (c) of this 13 Section. Any interest or fees that may be payable to the 14 provider of a letter of credit, line of credit, surety bond, 15 bond insurance, or other credit enhancement relating to such 16 alternate bonds and any fees that may be payable to any 17 remarketing agent need not be taken into account for purposes 18 of such projection. If the governmental unit enters into an 19 agreement in connection with such alternate bonds at the time 20 of issuance thereof pursuant to which the governmental unit 21 agrees for a specified period of time to pay an amount 22 calculated at an agreed-upon rate or index based on a 23 notional amount and the other party agrees to pay the 24 governmental unit an amount calculated at an agreed-upon rate 25 or index based on such notional amount, interest shall be 26 projected for such specified period of time on the basis of 27 the agreed-upon rate payable by the governmental unit. 28 (d) The determination of the sufficiency of enterprise 29 revenues or a revenue source, as applicable, shall be 30 supported by reference to the most recent audit of the 31 governmental unit, which shall be for a fiscal year ending 32 not earlier than 18 months previous to the time of issuance 33 of the alternate bonds. If such audit does not adequately 34 show such enterprise revenues or revenue source, as SB1627 Enrolled -8- LRB9112143MWgc 1 applicable, or if such enterprise revenues or revenue source, 2 as applicable, are shown to be insufficient, then the 3 determination of sufficiency shall be supported by the report 4 of an independent accountant or feasibility analyst, the 5 latter having a national reputation for expertise in such 6 matters, demonstrating the sufficiency of such revenues and 7 explaining, if appropriate, by what means the revenues will 8 be greater than as shown in the audit. Whenever such 9 sufficiency is demonstrated by reference to a schedule of 10 higher rates or charges for enterprise revenues or a higher 11 tax imposition for a revenue source, such higher rates, 12 charges or taxes shall have been properly imposed by an 13 ordinance adopted prior to the time of delivery of alternate 14 bonds. The reference to and acceptance of an audit or 15 report, as the case may be, and the determination of the 16 governing body as to sufficiency of enterprise revenues or a 17 revenue source shall be conclusive evidence that the 18 conditions of this Section have been met and that the 19 alternate bonds are valid. 20 (e) The enterprise revenues or revenue source, as 21 applicable, shall be in fact pledged to the payment of the 22 alternate bonds; and the governing body shall covenant, to 23 the extent it is empowered to do so, to provide for, collect 24 and apply such enterprise revenues or revenue source, as 25 applicable, to the payment of the alternate bonds and the 26 provision of not less than an additional .25 times debt 27 service. The pledge and establishment of rates or charges 28 for enterprise revenues, or the imposition of taxes in a 29 given rate or amount, as provided in this Section for 30 alternate bonds, shall constitute a continuing obligation of 31 the governmental unit with respect to such establishment or 32 imposition and a continuing appropriation of the amounts 33 received. All covenants relating to alternate bonds and the 34 conditions and obligations imposed by this Section are SB1627 Enrolled -9- LRB9112143MWgc 1 enforceable by any bondholder of alternate bonds affected, 2 any taxpayer of the governmental unit, and the People of the 3 State of Illinois acting through the Attorney General or any 4 designee, and in the event that any such action results in an 5 order finding that the governmental unit has not properly set 6 rates or charges or imposed taxes to the extent it is 7 empowered to do so or collected and applied enterprise 8 revenues or any revenue source, as applicable, as required by 9 this Act, the plaintiff in any such action shall be awarded 10 reasonable attorney's fees. The intent is that such 11 enterprise revenues or revenue source, as applicable, shall 12 be sufficient and shall be applied to the payment of debt 13 service on such alternate bonds so that taxes need not be 14 levied, or if levied need not be extended, for such payment. 15 Nothing in this Section shall inhibit or restrict the 16 authority of a governing body to determine the lien priority 17 of any bonds, including alternate bonds, which may be issued 18 with respect to any enterprise revenues or revenue source. 19 In the event that alternate bonds shall have been issued 20 and taxes, other than a designated revenue source, shall have 21 been extended pursuant to the general obligation, full faith 22 and credit promise supporting such alternate bonds, then the 23 amount of such alternate bonds then outstanding shall be 24 included in the computation of indebtedness of the 25 governmental unit for purposes of all statutory provisions or 26 limitations until such time as an audit of the governmental 27 unit shall show that the alternate bonds have been paid from 28 the enterprise revenues or revenue source, as applicable, 29 pledged thereto for a complete fiscal year. 30 Alternate bonds may be issued to refund or advance refund 31 alternate bonds without meeting any of the conditions set 32 forth in this Section, except that the term of the refunding 33 bonds shall not be longer than the term of the refunded bonds 34 and that the debt service payable in any year on the SB1627 Enrolled -10- LRB9112143MWgc 1 refunding bonds shall not exceed the debt service payable in 2 such year on the refunded bonds. 3 Once issued, alternate bonds shall be and forever remain 4 until paid or defeased the general obligation of the 5 governmental unit, for the payment of which its full faith 6 and credit are pledged, and shall be payable from the levy of 7 taxes as is provided in this Act for general obligation 8 bonds. 9 The changes made by this amendatory Act of 1990 do not 10 affect the validity of bonds authorized before September 1, 11 1990. 12 (Source: P.A. 90-812, eff. 1-26-99; 91-57, eff. 6-30-99; 13 91-493, eff. 8-13-99; revised 10-9-99.) 14 (30 ILCS 350/16.5 new) 15 Sec. 16.5. Proposition for bonds. For all elections 16 held after July 1, 2000, the form of a proposition to 17 authorize the issuance of bonds pursuant to either a 18 referendum or backdoor referendum may be as set forth in this 19 Section as an alternative to the form of proposition as 20 otherwise set forth by applicable law. The proposition 21 authorized by this Section shall be in substantially the 22 following form: 23 Shall (name of governmental unit) (state purpose for 24 the bond issue) and issue its bonds to the amount of $ 25 (state amount) for the purpose of paying the costs 26 thereof? 27 If a school district has received a grant entitlement 28 from the Illinois State Board of Education pursuant to the 29 School Construction Law for a school construction project to 30 be financed in part with proceeds of a bond authorized by 31 referendum, then the form of proposition may at the option of 32 the school district additionally contain substantially the 33 following language: SB1627 Enrolled -11- LRB9112143MWgc 1 (Name of school district) has received a grant 2 entitlement in the amount of $ (state amount) from the 3 Illinois State Board of Education pursuant to the School 4 Construction Law for the school construction project to 5 be financed in part with proceeds of the bonds. 6 (30 ILCS 350/17) (from Ch. 17, par. 6917) 7 Sec. 17. Leases and installment contracts. 8 (a) Interest not debt; debt on leases and installment 9 contracts. Interest on bonds shall not be included in any 10 computation of indebtedness of a governmental unit for the 11 purpose of any statutory provision or limitation. For bonds 12 consisting of leases and installment or financing contracts, 13 (1) that portion of payments made by a governmental unit 14 under the terms of a bond designated as interest in the bond 15 or the ordinance authorizing such bond shall be treated as 16 interest for purposes of this Section (2) where portions of 17 payments due under the terms of a bond have not been 18 designated as interest in the bond or the ordinance 19 authorizing such bond, and all or a portion of such payments 20 is to be used for the payment of principal of and interest on 21 other bonds of the governmental unit or bonds issued by 22 another unit of local government, such as a public building 23 commission, the payments equal to interest due on such 24 corresponding bonds shall be treated as interest for purposes 25 of this Section and (3) where portions of payments due under 26 the terms of a bond have not been designated as interest in 27 the bond or ordinance authorizing such bond and no portion of 28 any such payment is to be used for the payment of principal 29 of and interest on other bonds of the governmental unit or 30 another unit of local government, a portion of each payment 31 due under the terms of such bond shall be treated as interest 32 for purposes of this Section; such portion shall be equal in 33 amount to the interest that would have been paid on a SB1627 Enrolled -12- LRB9112143MWgc 1 notional obligation of the governmental unit (bearing 2 interest at the highest rate permitted by law for bonds of 3 the governmental unit at the time the bond was issued or, if 4 no such limit existed, 12%) on which the payments of 5 principal and interest were due at the same times and in the 6 same amounts as payments are due under the terms of the 7 bonds. The rule set forth in this Section shall be 8 applicable to all interest no matter when earned or accrued 9 or at what interval paid, and whether or not a bond bears 10 interest which compounds at certain intervals. For purposes 11 of bonds sold at amounts less than 95% of their stated value 12 at maturity, interest for purposes of this Section includes 13 the difference between the amount set forth on the face of 14 the bond as the original principal amount and the bond's 15 stated value at maturity. 16 This subsection may be made applicable to bonds issued 17 prior to the effective date of this Act by passage of an 18 ordinance to such effect by the governing body of a 19 governmental unit. 20 (b) Purchase or lease of property. The governing body 21 of each governmental unit may purchase or lease either real 22 or personal property, including investments, investment 23 agreements, or investment services, through agreements that 24 provide that the consideration for the purchase or lease may 25 be paid through installments made at stated intervals for a 26 period of no more than 20 years or another period of time 27 authorized by law, whichever is greater. Each governmental 28 unit may issue certificates evidencing the indebtedness 29 incurred under the lease or agreement. The governing body 30 may provide for the treasurer, comptroller, finance officer, 31 or other officer of the governing body charged with financial 32 administration to act as counter-party to any such lease or 33 agreement, as nominee lessor or seller. When the lease or 34 agreement is executed by the officer of the governmental unit SB1627 Enrolled -13- LRB9112143MWgc 1 authorized by the governing body to bind the governmental 2 unit thereon by the execution thereof and is filed with and 3 executed by the nominee lessor or seller, the lease or 4 agreement shall be sufficiently executed so as to permit the 5 governmental unit to issue certificates evidencing the 6 indebtedness incurred under the lease or agreement. The 7 certificatesagreements. The certificateshall be valid 8 whether or not an appropriation with respect thereto is 9 included in any annual or supplemental budget adopted by the 10 governmental unit. From time to time, as the governing body 11 executes contracts for the purpose of acquiring and 12 constructing the services or real or personal property that 13 is a part of the subject of the lease or agreement, including 14 financial, legal, architectural, and engineering services 15 related to the lease or agreement, the governing body shall 16 order the contracts filed with its nominee officer, and that 17 officer shall identify the contracts to the lease or 18 agreement; that identification shall permit the payment of 19 the contract from the proceeds of the certificates; and the 20 nominee officer shall duly apply or cause to be applied 21 proceeds of the certificates to the payment of the contracts. 22 The governing body of each governmental unit may sell, lease, 23 convey, and reacquire either real or personal property, or 24 any interest in real or personal property, upon any terms and 25 conditions and in any manner, as the governing body shall 26 determine, if the governmental unit will lease, acquire by 27 purchase agreement, or otherwise reacquire the property, as 28 authorized by this subsection or any other applicable law. 29 All indebtedness incurred under this subsection, when 30 aggregated with the existing indebtedness of the governmental 31 unit, may not exceed the debt limits provided by applicable 32 law. 33 (Source: P.A. 91-493, eff. 8-13-99.) SB1627 Enrolled -14- LRB9112143MWgc 1 Section 10. The Public Library District Act of 1991 is 2 amended by changing Section 15-90 as follows: 3 (75 ILCS 16/15-90) 4 Sec. 15-90. Transfer of contiguous territory to adjoining 5 district. 6 (a) Territory that is in a public library district and 7 contiguous with another library district may be transferred 8 to the latter district. Upon the mutual agreement of the 9 boards of trustees of the contiguous districts to the 10 transfer of the territory, each board shall enact a transfer 11 ordinance containing identical language describing the 12 territory to be transferred, the effective date of the 13 transfer, a statement of the assets and liabilities, if any, 14 that are a responsibility of the transferred territory, and 15 the settlement of any excess of assets or liabilities. 16 (b) A copy of the transfer ordinance shall be filed with 17 the circuit court of the county that contains all or the 18 larger part of the territory. Upon receiving the ordinance, 19 the circuit court shall enter an order setting forth the 20 date, time, and place of a hearing upon the subject matter of 21 the ordinance, name the judge to hear the cause, and send 22 notice of the date, time, and place of the hearing and of the 23 judge assigned to the president of the board of trustees of 24 each of the involved public library districts and to the 25 secretary of the board of trustees of the public library 26 district containing the territory proposed to be transferred. 27 The date set for the hearing shall be not less than 30 days 28 nor more than 60 days after the circuit court enters the 29 order for the hearing. The secretary of the board of trustees 30 of the public library district containing the territory 31 proposed to be transferred shall, within 15 days of the 32 secretary's receipt of the circuit court's notice of the 33 hearing, publish notice of the hearing as provided in Section SB1627 Enrolled -15- LRB9112143MWgc 1 1-30. 2 (c) At the hearing before the assigned judge of the 3 circuit court, the validity of the ordinance, including 4 substantiation of the required allegations in the petition, 5 the appropriateness of the location and boundary of the 6 territory to be voted upon for transfer, and other relevant 7 matters shall be considered. All persons residing in the 8 territory to be transferred, all other persons having an 9 interest in the proposed transfer, and the boards of trustees 10 of the involved library districts shall have a reasonable 11 opportunity to be heard upon the subject of the proposed 12 transfer. The judge's determination of the appropriateness 13 of the boundary of the territory proposed to be transferred 14 shall include the following factors: 15 (1) The location of the residents in relationship 16 to the total territory proposed to be transferred. 17 (2) Maintaining the pre-existing non-residential 18 tax bases of both libraries so far as possible. 19 (3) Local traditional traffic, transportation, and 20 marketing routes and the convenience of the residents of 21 the territory proposed to be transferred. 22 The judge, after hearing the statements, evidence, and 23 suggestions of the persons appearing at the hearing, shall 24 determine (i) whether the ordinance is valid and sufficient 25 according to law and (ii) whether the territory to be 26 transferred would receive substantially equal or greater 27 benefits by being transferred. If the transfer ordinance is 28 found to be valid and sufficient, and the territory to be 29 transferred would receive substantially equal or greater 30 benefits by being so transferred, the judge shall enter a 31 final judgement to transfer the territory. 32 (d) The judge assigned to the case shall, after a 33 hearing upon the merits, enter an order revising the 34 boundaries of the district and setting forth the liability, SB1627 Enrolled -16- LRB9112143MWgc 1 if any, yet to be retired and paid by the property owners of 2 the transferred territory. The liability shall be collected 3 under Section 35-15. 4 (e) If there are any general obligation bonds of the 5 public library district (or other obligations incurred 6 instead of general obligation bonds under this Act) that are 7 outstanding and unpaid at the time the territory is 8 transferred from the public library district under this 9 Section, the territory shall remain liable for its 10 proportionate share of the bonded indebtedness or other 11 outstanding obligation incurred instead of bonded 12 indebtedness, and the public library district may continue to 13 levy and extend taxes upon the taxable property in the 14 territory for the purpose of amortizing the bonds or 15 satisfying the other outstanding obligations until sufficient 16 funds to retire the bonds or to satisfy the other outstanding 17 obligations have been collected. 18 (e-5) The county clerk must extend taxes to pay the 19 principal of and interest on any general obligation bonds 20 issued to refund any bond described in subsection (e), as 21 provided in the bond ordinances on file in the office of the 22 county clerk, against all taxable property in the district, 23 including taxable property that was in the district on the 24 date that the bonds being refunded were issued; provided, 25 however, that (i) the net interest rate on the refunding 26 bonds may not exceed the net interest rate on the refunded 27 bonds, (ii) the final maturity date of the refunding bonds 28 may not extend beyond the final maturity date of the refunded 29 bonds, and (iii) the debt service payable on the refunding 30 bonds in any year may not exceed the debt service that would 31 have been payable on the refunded bonds in that year. This 32 subsection is inoperative after December 31, 2000. 33 (f) The district secretary shall record a certified copy 34 of the transfer order with the recorder and file a certified SB1627 Enrolled -17- LRB9112143MWgc 1 copy with the county clerk of each county affected. 2 (Source: P.A. 87-1277.) 3 Section 99. Effective date. This Act takes effect upon 4 becoming law.