State of Illinois
90th General Assembly
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90_HB2748

      5 ILCS 220/3.1            from Ch. 127, par. 743.1
          Amends the Intergovernmental  Cooperation  Act.   Permits
      establishment  of  municipal  joint action water agencies for
      water  derived  from  the  Sangamon  River  Valley  Alluvium.
      Provides that the Act does not  prohibit  a  municipal  joint
      action  water agency from providing water to all residents of
      member  municipalities   and   all   persons   who   executed
      pre-annexation agreements with member municipalities.
                                                     LRB9010787JMmb
                                               LRB9010787JMmb
 1        AN  ACT to amend the Intergovernmental Cooperation Act by
 2    changing Section 3.1.
 3        Be it enacted by the People of  the  State  of  Illinois,
 4    represented in the General Assembly:
 5        Section  5.   The  Intergovernmental  Cooperation  Act is
 6    amended by changing Section 3.1 as follows:
 7        (5 ILCS 220/3.1) (from Ch. 127, par. 743.1)
 8        Sec. 3.1.  Municipal Joint Action Water Agency.
 9        (a) Any municipality or municipalities of this State, any
10    county or counties of this State, any township  in  a  county
11    with  a  population  under  700,000 of this State, any public
12    water district or districts of this State, or any combination
13    thereof may,  by  intergovernmental  agreement,  establish  a
14    Municipal  Joint  Action  Water  Agency  to  provide adequate
15    supplies of water on an economical and  efficient  basis  for
16    member  municipalities,  public  water  districts  and  other
17    incorporated  and  unincorporated areas within such counties.
18    For purposes of this  Act,  the  water  supply  may  only  be
19    derived  from  Lake  Michigan,  the Mississippi River, or the
20    Missouri River, or the Sangamon River Valley  Alluvium.   Any
21    such  Agency  shall itself be a municipal corporation, public
22    body politic and corporate.  A Municipal Joint  Action  Water
23    Agency  so  created shall not itself have taxing power except
24    as hereinafter provided.
25        A  Municipal  Joint  Action   Water   Agency   shall   be
26    established  by  an  intergovernmental  agreement  among  the
27    various   member   municipalities,  public  water  districts,
28    townships,  and  counties,  upon  approval  by  an  ordinance
29    adopted  by  the  corporate  authorities   of   each   member
30    municipality,  public  water  district,  township, or county.
31    This agreement may be amended at any time upon  the  adoption
                            -2-                LRB9010787JMmb
 1    of  concurring ordinances by the corporate authorities of all
 2    member municipalities, public water districts, townships, and
 3    counties.   The  agreement   may   provide   for   additional
 4    municipalities, public water districts, townships in counties
 5    with  a  population  under  700,000,  or counties to join the
 6    Agency  upon  adoption  of  an  ordinance  by  the  corporate
 7    authorities  of  the  joining  municipality,   public   water
 8    district,  township,  or  county,  and  upon  such  consents,
 9    conditions  and  approvals  of  the  governing  body  of  the
10    Municipal  Joint  Action  Water Agency and of existing member
11    municipalities,  public  water  districts,  townships,    and
12    counties   as  shall  be  provided  in  the  agreement.   The
13    agreement shall provide the manner and  terms  on  which  any
14    municipality,  public water district, township, or county may
15    withdraw from membership in the Municipal Joint Action  Water
16    Agency  and on which the Agency may terminate and dissolve in
17    whole  or  in  part.   The  agreement  shall  set  forth  the
18    corporate name of the Municipal Joint Action Water Agency and
19    its duration.  Promptly upon  any  agreement  establishing  a
20    Municipal  Joint  Action  Water Agency being entered into, or
21    upon the amending of any  such  agreement,  a  copy  of  such
22    agreement  or  amendment  shall be filed in the office of the
23    Secretary of State of Illinois.  Promptly upon  the  addition
24    or  withdrawal  of  any  municipality, public water district,
25    township in a county with  a  population  under  700,000,  or
26    county,  or  upon the dissolution of a Municipal Joint Action
27    Water Agency, that fact shall be certified by an  officer  of
28    the Agency to the Secretary of State of Illinois.
29        (b)  The  governing  body  of  any Municipal Joint Action
30    Water Agency established pursuant to this Section  3.1  shall
31    be  a  Board  of  Directors. There shall be one Director from
32    each member municipality, public  water  district,  township,
33    and  county  of  the  Municipal  Joint  Action  Water  Agency
34    appointed  by  ordinance  of the corporate authorities of the
                            -3-                LRB9010787JMmb
 1    municipality, public water  district,  township,  or  county.
 2    Each Director shall have one vote. Each Director shall be the
 3    Mayor  or  President  of  the  member  municipality,  or  the
 4    chairman  of the board of trustees of the member public water
 5    district, the supervisor  of  the  member  township,  or  the
 6    chairman  of  the  county board or chief executive officer of
 7    the member county or a county board member appointed  by  the
 8    chairman of the county board of the member county, appointing
 9    the  Director; an elected member of the corporate authorities
10    of that municipality, public  water  district,  township,  or
11    county;   or   other   elected  official  of  the  appointing
12    municipality, public water  district,  township,  or  county.
13    Any  agreement  establishing  a  Municipal Joint Action Water
14    Agency shall specify the period during which a Director shall
15    hold office and may provide for the appointment of  Alternate
16    Directors from member municipalities, public water districts,
17    townships,  or  counties.  The Board of Directors shall elect
18    one Director to serve as Chairman, and shall  elect  persons,
19    who  need not be Directors, to such other offices as shall be
20    designated in the agreement.
21        The Board of Directors shall determine the general policy
22    of the Municipal Joint Action Water Agency, shall approve the
23    annual budget,  shall  make  all  appropriations  (which  may
24    include  appropriations made at any time in addition to those
25    made in any annual appropriation document), shall approve all
26    contracts for the purchase or sale of water, shall adopt  any
27    resolutions  providing  for the issuance of bonds or notes by
28    the Agency, shall adopt its by-laws, rules  and  regulations,
29    and  shall  have  such  other  powers  and  duties  as may be
30    prescribed in the  agreement.   Such  agreement  may  further
31    specify  those  powers  and  actions  of  the Municipal Joint
32    Action Water Agency which shall be authorized only upon votes
33    of greater than a majority of  all  Directors  or  only  upon
34    consents  of the corporate authorities of a certain number of
                            -4-                LRB9010787JMmb
 1    member municipalities, public water districts, townships,  or
 2    counties.
 3        The  agreement  may  provide  for the establishment of an
 4    Executive Committee to consist of the  municipal  manager  or
 5    other   elected   or   appointed   official  of  each  member
 6    municipality, public water district, township, or county,  as
 7    designated  by  ordinance  from time to time by the corporate
 8    authorities  of  the  member   municipality,   public   water
 9    district,  township,  or county, and may prescribe powers and
10    duties  of  the  Executive  Committee   for   the   efficient
11    administration of the Agency.
12        (c)  A  Municipal  Joint  Action Water Agency established
13    pursuant to this Section 3.1 may  plan,  construct,  improve,
14    extend,  acquire,  finance (including the issuance of revenue
15    bonds or notes as provided in  this  Section  3.1),  operate,
16    maintain, and contract for a joint waterworks or water supply
17    system   which  may  include,  or  may  consist  of,  without
18    limitation,   facilities   for   receiving,   storing,    and
19    transmitting  water  from  any  source for supplying water to
20    member municipalities, public water districts, townships,  or
21    counties  (including  county  special  service  areas created
22    under the Special Service Area Tax  Act  and  county  service
23    areas  authorized  under  the Counties Code), or other public
24    agencies,  persons,  or  corporations.  Facilities   of   the
25    Municipal  Joint Action Water Agency may be located within or
26    without the corporate limits of any member municipality.
27        A Municipal Joint Action Water  Agency  shall  have  such
28    powers as shall be provided in the agreement establishing it,
29    which  may include, but need not be limited to, the following
30    powers:
31             (i)  to sue or be sued;
32             (ii)  to apply for and accept  gifts  or  grants  or
33        loans of funds or property or financial or other aid from
34        any public agency or private entity;
                            -5-                LRB9010787JMmb
 1             (iii)  to  acquire,  hold,  sell, lease as lessor or
 2        lessee, transfer or dispose  of  such  real  or  personal
 3        property,  or  interests therein, as it deems appropriate
 4        in the exercise of its powers, and to provide for the use
 5        thereof  by  any  member   municipality,   public   water
 6        district, township, or county;
 7             (iv)  to  make  and  execute all contracts and other
 8        instruments necessary or convenient to  the  exercise  of
 9        its    powers    (including    contracts    with   member
10        municipalities,  with  public   water   districts,   with
11        townships,  and with counties on behalf of county service
12        areas); and
13             (v)  to employ agents and employees and to  delegate
14        by resolution to one or more of its Directors or officers
15        such powers as it may deem proper.
16        Member municipalities, public water districts, townships,
17    or  counties  may,  for the purposes of, and upon request by,
18    the Municipal Joint Action Water Agency, exercise  the  power
19    of  eminent  domain  available  to  them,  convey property so
20    acquired to the Agency for the cost of  acquisition,  and  be
21    reimbursed  for  all  expenses  related  to  this exercise of
22    eminent domain power on behalf of the Agency.
23        All property, income and receipts of or transactions by a
24    Municipal Joint Action Water Agency shall be exempt from  all
25    taxation,  the  same  as  if  it were the property, income or
26    receipts of or  transaction  by  the  member  municipalities,
27    public water districts, townships, or counties.
28        (d)  A  Municipal  Joint  Action Water Agency established
29    pursuant to this Section 3.1 shall  have  the  power  to  buy
30    water   and   to   enter  into  contracts  with  any  person,
31    corporation  or   public   agency   (including   any   member
32    municipality, public water district, township, or county) for
33    that  purpose.    Any  such  contract made by an Agency for a
34    supply of water may contain provisions whereby the Agency  is
                            -6-                LRB9010787JMmb
 1    obligated  to  pay  for the supply of water without setoff or
 2    counterclaim and irrespective of whether the supply of  water
 3    is  ever furnished, made available or delivered to the Agency
 4    or whether any project for the supply of  water  contemplated
 5    by  any such contract is completed, operable or operating and
 6    notwithstanding any suspension,  interruption,  interference,
 7    reduction  or  curtailment  of  the supply of water from such
 8    project.  Any such contract may provide that if one  or  more
 9    of  the  other  purchasers  defaults  in  the  payment of its
10    obligations under such contract or a  similar  contract  made
11    with  the  supplier of the water one or more of the remaining
12    purchasers party to such contract or  such  similar  contract
13    shall  be  required  to  pay  for  all  or  a  portion of the
14    obligations of the defaulting purchasers.  No  such  contract
15    may have a term in excess of 50 years.
16        A  Municipal  Joint  Action  Water  Agency shall have the
17    power to sell water and to  enter  into  contracts  with  any
18    person,  corporation  or  public agency (including any member
19    municipality, any public water district, any township, or any
20    county on behalf of a county service area  as  set  forth  in
21    this  Section) for that purpose.  No such contract may have a
22    term in excess of 50 years.  Any such contract  entered  into
23    to  sell  water  to  a  public  agency  may  provide that the
24    payments to be made thereunder by such public agency shall be
25    made solely from revenues to be derived by such public agency
26    from the operation of its waterworks system or  its  combined
27    waterworks   and  sewerage  system.   Any  public  agency  so
28    contracting to purchase water shall establish  from  time  to
29    time  such fees and charges for its water service or combined
30    water and sewer service as will produce  revenues  sufficient
31    at  all  times to pay its obligations to the Agency under the
32    purchase contract. Any such contract so providing  shall  not
33    constitute  indebtedness of such public agency so contracting
34    to  buy  water  within  the  meaning  of  any  statutory   or
                            -7-                LRB9010787JMmb
 1    constitutional  limitation.   Any  such  contract of a public
 2    agency to buy water shall be a continuing, valid and  binding
 3    obligation of such public agency payable from such revenues.
 4        A  Municipal  Joint  Action  Water Agency shall establish
 5    fees and charges for the purchase of water from it or for the
 6    use of its  facilities.   No  prior  appropriation  shall  be
 7    required by either the Municipal Joint Action Water Agency or
 8    any   public   agency   before  entering  into  any  contract
 9    authorized by this paragraph (d).
10        The changes in this Section made by this  amendatory  Act
11    of 1984 are intended to be declarative of existing law.
12        (e) 1.  A Municipal Joint Action Water Agency established
13    pursuant  to  this Section 3.1 may, from time to time, borrow
14    money and,  in  evidence  of  its  obligation  to  repay  the
15    borrowing,  issue its negotiable water revenue bonds or notes
16    pursuant to this paragraph  (e)  for  any  of  the  following
17    purposes:   for  paying  costs  of  constructing,  acquiring,
18    improving or extending a joint  waterworks  or  water  supply
19    system;  for paying other expenses incident to or incurred in
20    connection with such construction,  acquisition,  improvement
21    or  extension; for repaying advances made to or by the Agency
22    for such purposes; for paying interest on the bonds or  notes
23    until   the   estimated   date  of  completion  of  any  such
24    construction, acquisition, improvement or extension  and  for
25    such  period after the estimated completion date as the Board
26    of Directors  of  the  Agency  shall  determine;  for  paying
27    financial,  legal,  administrative  and other expenses of the
28    authorization, issuance, sale or delivery of bonds or  notes;
29    for  paying  costs of insuring payment of the bonds or notes;
30    for providing or increasing a debt service reserve fund  with
31    respect to any or all of the Agency's bonds or notes; and for
32    paying,  refunding  or redeeming any of the Agency's bonds or
33    notes before, after or at their  maturity,  including  paying
34    redemption premiums or interest accruing or to accrue on such
                            -8-                LRB9010787JMmb
 1    bonds or notes being paid or redeemed or for paying any other
 2    costs in connection with any such payment or redemption.
 3        2.  Any  bonds or notes issued pursuant to this paragraph
 4    (e) by  a  Municipal  Joint  Action  Water  Agency  shall  be
 5    authorized  by  a resolution of the Board of Directors of the
 6    Agency adopted by the affirmative vote of  Directors  from  a
 7    majority   of   the   member   municipalities,  public  water
 8    districts,  townships,  and  counties,  and  any   additional
 9    requirements   as   may   be   set  forth  in  the  agreement
10    establishing the Agency.  The authorizing resolution  may  be
11    effective  immediately  upon  its  adoption.  The authorizing
12    resolution shall  describe  in  a  general  way  any  project
13    contemplated  to be financed by the bonds or notes, shall set
14    forth the estimated cost of the project and  shall  determine
15    its  period  of usefulness.  The authorizing resolution shall
16    determine the maturity or maturities of the bonds  or  notes,
17    the  rate  or  rates  at which the bonds or notes are to bear
18    interest and all the other terms and details of the bonds  or
19    notes.   All  such  bonds  or  notes  shall mature within the
20    period of estimated usefulness of the project with respect to
21    which such bonds or notes are issued, as  determined  by  the
22    Board  of  Directors, but in any event not more than 50 years
23    from their date of issue.   The  bonds  and  notes  may  bear
24    interest,  payable  at  such  times,  at  a rate or rates not
25    exceeding  the  maximum  rate   established   in   the   Bond
26    Authorization  Act, as from time to time in effect.  Bonds or
27    notes of a Municipal Joint Action Water Agency shall be  sold
28    in  such manner as the Board of Directors of the Agency shall
29    determine, either at par or at a  premium  or  discount,  but
30    such   that   the  effective  interest  cost  (excluding  any
31    redemption premium) to the Agency of the bonds or notes shall
32    not exceed a rate equal to the rate of interest specified  in
33    the Act referred to in the preceding sentence.
34        The  resolution  authorizing the issuance of any bonds or
                            -9-                LRB9010787JMmb
 1    notes pursuant to  this  paragraph  (e)  shall  constitute  a
 2    contract  with  the  holders  of  the  bonds  and notes.  The
 3    resolution may contain such covenants and  restrictions  with
 4    respect  to  the  purchase or sale of water by the Agency and
 5    the contracts for such purchases or sales, the  operation  of
 6    the  joint  waterworks  system  or  water  supply system, the
 7    issuance of additional bonds or  notes  by  the  Agency,  the
 8    security  for  the bonds and notes, and any other matters, as
 9    may  be  deemed  necessary  or  advisable  by  the  Board  of
10    Directors to assure the payment of the bonds or notes of  the
11    Agency.
12        3.  The  resolution  authorizing the issuance of bonds or
13    notes by a Municipal Joint Action Water Agency  shall  pledge
14    and  provide for the application of revenues derived from the
15    operation of the Agency's joint waterworks  or  water  supply
16    system (including from contracts for the sale of water by the
17    Agency) and investment earnings thereon to the payment of the
18    cost  of  operation  and maintenance of the system (including
19    costs  of  purchasing  water),  to  provision   of   adequate
20    depreciation,  reserve  or  replacement funds with respect to
21    the system or the bonds or  notes,  and  to  the  payment  of
22    principal,  premium,  if  any,  and  interest on the bonds or
23    notes of the Agency (including amounts for  the  purchase  of
24    such  bonds  or  notes).   The  resolution shall provide that
25    revenues of  the  Municipal  Joint  Action  Water  Agency  so
26    derived   from   the  operation  of  the  system,  sufficient
27    (together with other receipts of  the  Agency  which  may  be
28    applied to such purposes) to provide for such purposes, shall
29    be  set  aside  as  collected in a separate fund or funds and
30    used for such purposes.   The  resolution  may  provide  that
31    revenues  not  required for such purposes may be used for any
32    proper purpose of the Agency or may  be  returned  to  member
33    municipalities.
34        Any notes of a Municipal Joint Action Water Agency issued
                            -10-               LRB9010787JMmb
 1    in  anticipation  of  the  issuance  of  bonds  by it may, in
 2    addition, be secured by a pledge of proceeds of bonds  to  be
 3    issued   by  the  Agency,  as  specified  in  the  resolution
 4    authorizing the issuance of such notes.
 5        4. (i)  Except as provided in clauses (ii) and  (iii)  of
 6    this  subparagraph  4  of  this  paragraph (e), all bonds and
 7    notes of the  Municipal  Joint  Action  Water  Agency  issued
 8    pursuant  to  this  paragraph  (e)  shall be revenue bonds or
 9    notes.  Such revenue bonds or notes shall have no  claim  for
10    payment  other  than from revenues of the Agency derived from
11    the operation of its joint waterworks or water supply  system
12    (including  from  contracts  for  the  sale  of  water by the
13    Agency) and investment earnings thereon, from  bond  or  note
14    proceeds  and investment earnings thereon, or from such other
15    receipts of the Agency  as  the  agreement  establishing  the
16    Agency  may authorize to be pledged to the payment of revenue
17    bonds or notes, all as and to the extent as provided  in  the
18    resolution of the Board of Directors authorizing the issuance
19    of the revenue bonds or notes.  Revenue bonds or notes issued
20    by  a  Municipal  Joint  Action Water Agency pursuant to this
21    paragraph (e) shall not constitute  an  indebtedness  of  the
22    Agency  or of any member municipality, public water district,
23    township, or county within the meaning of any  constitutional
24    or  statutory limitation.  It shall be plainly stated on each
25    revenue  bond  and  note  that  it  does  not  constitute  an
26    indebtedness of the Municipal Joint Action Water Agency or of
27    any member municipality, public water district, township,  or
28    county  within the meaning of any constitutional or statutory
29    limitation.
30        (ii)  If the Agreement so provides  and  subject  to  the
31    referendum  provided for in clause (iii) of this subparagraph
32    4 of this paragraph (e), the  Municipal  Joint  Action  Water
33    Agency  may borrow money for corporate purposes on the credit
34    of the Municipal Joint Action Water Agency, and issue general
                            -11-               LRB9010787JMmb
 1    obligation bonds therefor, in such amounts and  form  and  on
 2    such  conditions  as it shall prescribe, but shall not become
 3    indebted in any manner  or  for  any  purpose  in  an  amount
 4    including   existing  indebtedness  in  the  aggregate  which
 5    exceeds 5.75% of the aggregate value of the taxable  property
 6    within  the  boundaries  of the participating municipalities,
 7    public water districts, townships, and county  service  areas
 8    within  a  member  county determined by the governing body of
 9    the county by resolution to be served by the Municipal  Joint
10    Action  Water  Agency  (including  any territory added to the
11    Agency after the issuance of such general obligation  bonds),
12    collectively  defined as the "Service Area", as equalized and
13    assessed by the Department of Revenue and  as  most  recently
14    available  at the time of the issue of said bonds.  Before or
15    at  the  time  of  incurring  any  such  general   obligation
16    indebtedness,  the  Municipal Joint Action Water Agency shall
17    provide for the collection of  a  direct  annual  tax,  which
18    shall  be  unlimited  as to rate or amount, sufficient to pay
19    the interest on such debt as it falls due and also to pay and
20    discharge the principal thereof at maturity, which  shall  be
21    within  40  years  after the date of issue thereof.  Such tax
22    shall be levied upon and collected from all  of  the  taxable
23    property  within  the  territorial boundaries of such Service
24    Area at the time of the referendum  provided  for  in  clause
25    (iii) and shall be levied upon and collected from all taxable
26    property  within the boundaries of any territory subsequently
27    added to the Service Area.    Dissolution  of  the  Municipal
28    Joint  Action  Water  Agency for any reason shall not relieve
29    the taxable property within such Service Area from  liability
30    for such tax. Liability for such tax for property transferred
31    to  or released from such Service Area shall be determined in
32    the same manner as  for  general  obligation  bonds  of  such
33    county,   if   in   an   unincorporated  area,  and  of  such
34    municipality, if within the boundaries thereof.  The clerk or
                            -12-               LRB9010787JMmb
 1    other officer of the  Municipal  Joint  Action  Water  Agency
 2    shall file a certified copy of the resolution or ordinance by
 3    which  such bonds are authorized to be issued and such tax is
 4    levied with the County Clerk  or  Clerks  of  the  county  or
 5    counties  containing  the Service Area, and such filing shall
 6    constitute, without the doing of  any  other  act,  full  and
 7    complete  authority for such County Clerk or Clerks to extend
 8    such tax for collection upon all the taxable property  within
 9    the  Service Area subject to such tax in each and every year,
10    as required, in amounts sufficient to pay  the  principal  of
11    and interest on such bonds, as aforesaid, without limit as to
12    rate  or  amount.   Such  tax  shall be in addition to and in
13    excess of all other taxes authorized  to  be  levied  by  the
14    Municipal  Joint  Action  Water  Agency  or  by  such county,
15    municipality,  township,  or  public  water  district.    The
16    issuance of such general obligation bonds shall be subject to
17    the  other  provisions  of this paragraph (e), except for the
18    provisions of clause (i) of this subparagraph 4.
19        (iii)  No  issue  of  general  obligation  bonds  of  the
20    Municipal Joint Action Water Agency (except bonds  to  refund
21    an  existing  bonded indebtedness) shall be authorized unless
22    the  Municipal  Joint  Action  Water  Agency  certifies   the
23    proposition  of  issuing  such  bonds  to the proper election
24    authorities, who shall submit the proposition to  the  voters
25    in  the  Service  Area  at an election in accordance with the
26    general election law, and the proposition has  been  approved
27    by a majority of those voting on the proposition.
28        The  proposition  shall be substantially in the following
29    form:
30    -------------------------------------------------------------
31        Shall general obligation
32    bonds for the purpose of (state
33    purpose), in the sum not to
34    exceed $....(insert amount),                Yes
                            -13-               LRB9010787JMmb
 1    be issued by the .........           ------------------------
 2    (insert corporate name of the               No
 3    Municipal Joint Action Water
 4    Agency)?
 5    -------------------------------------------------------------
 6        5.  As long as any bonds or notes of  a  Municipal  Joint
 7    Action  Water Agency created pursuant to this Section 3.1 are
 8    outstanding and unpaid, the Agency  shall  not  terminate  or
 9    dissolve  and,  except  as  permitted  by  the  resolution or
10    resolutions authorizing outstanding bonds or notes, no member
11    municipality, public water district, township, or county  may
12    withdraw  from the Agency.  While any such bonds or notes are
13    outstanding, all contracts for  the  sale  of  water  by  the
14    Agency  to  member  municipalities,  public  water districts,
15    townships,  or  counties  shall  be  irrevocable  except   as
16    permitted  by  the resolution or resolutions authorizing such
17    bonds or notes.  The Agency shall establish fees and  charges
18    for its operations sufficient to provide adequate revenues to
19    meet  all  of  the requirements under its various resolutions
20    authorizing bonds or notes.
21        6.  A holder of any bond or note issued pursuant to  this
22    paragraph  (e)  may,  in  any civil action, mandamus or other
23    proceeding, enforce and  compel  performance  of  all  duties
24    required  to  be performed by the Agency or such counties, as
25    provided in the authorizing resolution,  or  by  any  of  the
26    public  agencies  contracting  with  the  Agency  to purchase
27    water, including the imposition  of  fees  and  charges,  the
28    collection  of sufficient revenues and the proper application
29    of revenues  as  provided  in  this  paragraph  (e)  and  the
30    levying, extension and collection of such taxes.
31        7.  In  addition, the resolution authorizing any bonds or
32    notes issued pursuant to this paragraph (e) may provide for a
33    pledge,  assignment,  lien  or  security  interest,  for  the
34    benefit of the holders of any or all bonds or  notes  of  the
                            -14-               LRB9010787JMmb
 1    Agency, (i) on any or all revenues derived from the operation
 2    of  the  joint  waterworks  or water supply system (including
 3    from contracts for the sale of water) and investment earnings
 4    thereon or (ii) on funds or accounts securing the payment  of
 5    the bonds or notes as provided in the authorizing resolution.
 6    In  addition,  such  a  pledge,  assignment, lien or security
 7    interest may be made with respect  to  any  receipts  of  the
 8    Agency which the agreement establishing the Agency authorizes
 9    it  to  apply  to payment of bonds or notes. Any such pledge,
10    assignment, lien or security  interest  for  the  benefit  of
11    holders of bonds or notes shall be valid and binding from the
12    time  the  bonds  or  notes  are issued, without any physical
13    delivery or further act, and shall be valid  and  binding  as
14    against  or prior to any claims of any other party having any
15    claims of any kind against the Agency irrespective of whether
16    such other parties have notice of  such  pledge,  assignment,
17    lien or security interest.
18        A   resolution   of   a   Municipal  Joint  Water  Agency
19    authorizing the issuance of bonds or notes pursuant  to  this
20    paragraph  (e) may provide for the appointment of a corporate
21    trustee with respect to any or all of  such  bonds  or  notes
22    (which  trustee may be any trust company or state or national
23    bank having the power of a trust  company  within  Illinois).
24    In  that  event,  the  resolution shall prescribe the rights,
25    duties and powers of the trustee  to  be  exercised  for  the
26    benefit  of  the  Agency and the protection of the holders of
27    such bonds or notes.  The  resolution  may  provide  for  the
28    trustee to hold in trust, invest and use amounts in funds and
29    accounts   created   as  provided  in  the  resolution.   The
30    resolution authorizing the bonds or notes may provide for the
31    assignment and direct payment to the trustee of amounts  owed
32    by public agencies to the Municipal Joint Action Water Agency
33    under water sales contracts for application by the trustee to
34    the  purposes  for  which  such  revenues  are  to be used as
                            -15-               LRB9010787JMmb
 1    provided in  this  paragraph  (e)  and  as  provided  in  the
 2    authorizing  resolution.   Upon  receipt  of  notice  of such
 3    assignment, the  public  agency  shall  thereafter  make  the
 4    assigned payments directly to such trustee.
 5        Nothing  in  this Section authorizes a Joint Action Water
 6    Agency to provide water service directly to residents  within
 7    a municipality or in territory within one mile or less of the
 8    corporate  limits  of  a  municipality that operates a public
 9    water supply unless the municipality has consented in writing
10    to such service being provided.
11        Nothing in this Act prohibits a Joint Action Water Agency
12    from providing water  service  to  all  residents  of  member
13    municipalities   and   to   all  persons  who  have  executed
14    pre-annexation agreements with any member municipality.
15    (Source: P.A. 90-210, eff. 7-25-97.)

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