(30 ILCS 350/13) (from Ch. 17, par. 6913)
Sec. 13.
Certain pledges.
A governmental unit may pledge, as
security for the payment of its bonds, (1) revenues derived from the
operation of any utility system or revenue producing enterprise, (2) moneys
deposited or to be deposited into any special fund of the governmental
unit, (3) grants or other revenues or taxes expected to be received by the
governmental unit from the State or federal government, including taxes
imposed by the governmental unit pursuant to grant of authority by the
State, such as sales or use taxes or utility taxes, (4) special assessments
to be collected with respect to a local improvement financed with the
proceeds of bonds, or (5) payments to be made by another governmental unit
pursuant to a service, user or other similar agreement with such
governmental unit.
Any such pledge made by a governmental unit 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 governmental unit 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 tort, contract or otherwise against the
governmental unit irrespective of whether such parties have notice thereof.
Pursuant to any such pledge, a governmental unit may bind itself to impose
rates, charges or taxes to the fullest extent permitted by applicable law.
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
governmental unit.
The State Treasurer, the State Comptroller, the Department of Revenue, the
Department of Transportation, the State Superintendent of Education, or any
Regional Superintendent of Schools shall deposit or cause to be deposited any
amount of grants or other revenues or taxes expected to be received by a
qualified governmental unit from that official or entity that have been
pledged to the
payment of bonds of the qualified governmental unit, in accordance with the
authorization
of the qualified governmental unit, directly into a designated escrow
account established
by the qualified governmental unit at a trust company or bank having
trust powers. The ordinance authorizing that
disposition shall,
within 10 days after adoption by the governing body of the
qualified governmental unit,
be filed with the official or entity having custody of the pledged grants or
other revenues or taxes.
For the purposes of this Section, "qualified governmental unit" means a
governmental
unit (i) that has issued not less than $6,000,000 principal amount of bonds,
including the principal
amount of bonds to be secured by the deposit into the designated escrow
account, during the 24
months preceding the adoption of the ordinance authorizing the deposit, (ii)
whose bonds secured
by the deposit into the designated escrow account are rated without regard to
any credit
enhancement within the 3 highest general rating classifications established by
a rating service of
nationally recognized expertise in rating bonds of states and political
subdivisions of states,
(iii) that has received the Certificate of Achievement for Excellence in
Financial Reporting from
the Government Finance Officers Association or the equivalent award from the
Association of School Business Officials International during the 24 months
preceding the
adoption of the
ordinance authorizing the deposit, or (iv) that represents a population in
excess of 300,000.
(Source: P.A. 91-868, eff. 6-22-00; 92-78, eff. 7-12-01.)
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