State of Illinois
92nd General Assembly
Legislation

   [ Search ]   [ PDF text ]   [ Legislation ]   
[ Home ]   [ Back ]   [ Bottom ]


[ Introduced ][ Engrossed ][ Enrolled ]
[ House Amendment 002 ][ Senate Amendment 001 ]


92_HB2277ham003

 










                                           LRB9205634MWpkam02

 1                    AMENDMENT TO HOUSE BILL 2277

 2        AMENDMENT NO.     .  Amend House Bill 2277  by  replacing
 3    everything after the enacting clause with the following:

 4        "Section  5.   The  Local  Government  Debt Reform Act is
 5    amended by changing Sections 3, 9, 15, 16.5, and  17  and  by
 6    adding Section 5.5 as follows:

 7        (30 ILCS 350/3) (from Ch. 17, par. 6903)
 8        Sec.  3.  Definitions.   In this Act words or terms shall
 9    have the following  meanings  unless  the  context  or  usage
10    clearly indicates that another meaning is intended.
11        (a)  "Alternate  bonds"  means  bonds  issued  in lieu of
12    revenue bonds or payable from a revenue source as provided in
13    Section 15.
14        (b)  "Applicable  law"  means  any  provision   of   law,
15    including  this  Act, authorizing governmental units to issue
16    bonds.
17        (c)  "Backdoor referendum"  means  the  submission  of  a
18    public  question  to  the  voters  of  a  governmental  unit,
19    initiated  by  a  petition  of  voters, residents or property
20    owners of such governmental unit,  to  determine  whether  an
21    action  by the governing body of such governmental unit shall
22    be effective, adopted or rejected.
 
                            -2-            LRB9205634MWpkam02
 1        (d)  "Bond"   means   any   instrument   evidencing   the
 2    obligation to pay money authorized or issued by or on  behalf
 3    of  a  governmental  unit  under  applicable  law,  including
 4    without  limitation,  bonds,  notes, installment or financing
 5    contracts, leases, certificates, tax anticipation warrants or
 6    notes, vouchers, and any other evidences of indebtedness.
 7        (e)  "Debt  service"  on  bonds  means  the   amount   of
 8    principal,  interest  and premium, if any, when due either at
 9    stated maturity or upon mandatory redemption.
10        (f)  "Enterprise  revenues"  means  the  revenues  of   a
11    utility  or  revenue  producing enterprise from which revenue
12    bonds may be payable.
13        (g)  "General  obligation  bonds"  means   bonds   of   a
14    governmental  unit  for the payment of which the governmental
15    unit is empowered to levy ad valorem property taxes upon  all
16    taxable property in a governmental unit without limitation as
17    to rate or amount.
18        (h)  "Governing   body"   means   the  legislative  body,
19    council, board, commission, trustees, or any other  body,  by
20    whatever  name  it  is  known, having charge of the corporate
21    affairs of a governmental unit.
22        (h-5)  "Governmental  revenue  source"  means  a  revenue
23    source that is either (1) federal or  State  funds  that  the
24    governmental  unit has received in some amount during each of
25    the 3 fiscal years preceding the issuance of alternate  bonds
26    or (2) revenues to be received from another governmental unit
27    under an intergovernmental cooperation agreement.
28        (i)  "Governmental   unit"   means  a  county,  township,
29    municipality,   municipal   corporation,   unit   of    local
30    government,   school   district,   special  district,  public
31    corporation, body  corporate  and  politic,  forest  preserve
32    district,  fire  protection  district, conservation district,
33    park  district,  sanitary  district,  and  all  other   local
34    governmental   agencies,  including  any  entity  created  by
 
                            -3-            LRB9205634MWpkam02
 1    intergovernmental  agreement  among  any  of  the   foregoing
 2    governmental units, but does not include any office, officer,
 3    department,  division, bureau, board, commission, university,
 4    or similar agency of the State.
 5        (j)  "Ordinance" means an ordinance  duly  adopted  by  a
 6    governing  body  or,  if  appropriate under applicable law, a
 7    resolution so adopted.
 8        (k)  "Revenue bonds" means any bonds  of  a  governmental
 9    unit other than general obligation bonds, but "revenue bonds"
10    does  include  any debt authorized under Section 11-29.3-1 of
11    the Illinois Municipal Code.
12        (l)  "Revenue source" means a source of funds, other than
13    enterprise revenues, received or available to be received  by
14    a  governmental unit and available for any one or more of its
15    corporate purposes.
16        (m)  "Limited  bonds"  means  bonds,  excluding   leases,
17    notes,  installment or financing contracts, certificates, tax
18    anticipation warrants  or  notes,  vouchers,  and  any  other
19    evidences of indebtedness, issued under Section 15.01 of this
20    Act.
21    (Source: P.A. 89-385, eff. 8-18-95; 89-658, eff. 1-1-97.)

22        (30 ILCS 350/5.5 new)
23        Sec. 5.5.  Notices.
24        (a)  Whenever   applicable   law   requires   notice   in
25    connection  with  the  issuance of bonds, the notice shall be
26    sufficient if the notice appears above the name or  title  of
27    the person required to give the notice.
28        (b)  Whenever  applicable  law  requires  any notice of a
29    hearing or meeting held in connection with  the  issuance  of
30    bonds  to be supplied to the members of the governing body or
31    news  media,  such  notice  may  be  supplied  by   facsimile
32    transmission  (commonly  referred  to  as  fax) or electronic
33    transmission (commonly referred to as e-mail).
 
                            -4-            LRB9205634MWpkam02
 1        (30 ILCS 350/9) (from Ch. 17, par. 6909)
 2        Sec. 9.  Provisions for interest.  (a)  The  proceeds  of
 3    bonds may be used to provide for the payment of interest upon
 4    such  bonds for a period not to exceed the greater of 2 years
 5    or a period ending 6  months  after  the  estimated  date  of
 6    completion of the acquisition and construction of the project
 7    or  accomplishment  of  the  purpose for which such bonds are
 8    issued.
 9        (b)  In addition it shall be  lawful  for  the  governing
10    body  of  any  governmental unit issuing bonds to appropriate
11    money for the purpose of paying interest on such bonds during
12    the period stated in subsection (a)  of  this  Section.  Such
13    appropriation  may  be made in the ordinance authorizing such
14    bonds and shall be fully effective upon the effective date of
15    such ordinance without any  further  notice,  publication  or
16    approval whatsoever.
17        (c)  The  governing  body  of  any  governmental unit may
18    authorize the transfer of  interest  earned  on  any  of  the
19    moneys  of  the governmental unit, including moneys set aside
20    to pay debt service, into the fund of the  governmental  unit
21    that  is  most in need of the interest.  This subsection does
22    not apply to any interest earned that has been  earmarked  or
23    restricted  by  the  governing body for a designated purpose.
24    This subsection does not apply to any interest earned on  any
25    funds  for  the  purpose  of  municipal  retirement under the
26    Illinois Pension Code  and  tort  immunity  under  the  Local
27    Governmental  and  Governmental  Employees Tort Immunity Act.
28    Interest earned on those funds  may  be  used  only  for  the
29    purposes  authorized  for the respective funds from which the
30    interest earnings were derived.
31    (Source: P.A. 85-1419.)

32        (30 ILCS 350/15) (from Ch. 17, par. 6915)
33        Sec. 15.  Double-barrelled bonds.  Whenever revenue bonds
 
                            -5-            LRB9205634MWpkam02
 1    have been authorized to be issued pursuant to applicable  law
 2    or  whenever  there  exists for a governmental unit a revenue
 3    source, the procedures set forth in this Section may be  used
 4    by  a governing body.  General obligation bonds may be issued
 5    in lieu of such revenue  bonds  as  authorized,  and  general
 6    obligation  bonds  may  be  issued  payable  from any revenue
 7    source.  Such general obligation bonds may be referred to  as
 8    "alternate bonds".  Alternate bonds may be issued without any
 9    referendum  or backdoor referendum except as provided in this
10    Section, upon the terms provided in Section 10  of  this  Act
11    without  reference  to other provisions of law, but only upon
12    the conditions provided in  this  Section.   Alternate  bonds
13    shall  not  be  regarded as or included in any computation of
14    indebtedness for the purpose of any  statutory  provision  or
15    limitation except as expressly provided in this Section.
16        Such conditions are:
17        (a)  Alternate   bonds  shall  be  issued  for  a  lawful
18    corporate purpose.  If  issued  in  lieu  of  revenue  bonds,
19    alternate  bonds  shall  be issued for the purposes for which
20    such revenue bonds shall have  been  authorized.   If  issued
21    payable  from  a  revenue  source  in  the manner hereinafter
22    provided, which revenue source is limited in its purposes  or
23    applications,  then  the alternate bonds shall be issued only
24    for such limited purposes or applications.   Alternate  bonds
25    may  be  issued  payable  from  either enterprise revenues or
26    revenue sources, or both.
27        (b)  Alternate  bonds  shall  be  subject   to   backdoor
28    referendum.   The  provisions  of Section 5 of this Act shall
29    apply  to  such  backdoor  referendum,  together   with   the
30    provisions   hereof.   The  authorizing  ordinance  shall  be
31    published in  a  newspaper  of  general  circulation  in  the
32    governmental  unit.  Along with or as part of the authorizing
33    ordinance, there shall be  published  a  notice  of  (1)  the
34    specific  number  of  voters  required  to  sign  a  petition
 
                            -6-            LRB9205634MWpkam02
 1    requesting  that  the  issuance  of  the  alternate  bonds be
 2    submitted to referendum, (2) the time when such petition must
 3    be filed, (3) the date of  the  prospective  referendum,  and
 4    (4),  with  respect  to  authorizing ordinances adopted on or
 5    after January  1,  1991,  a  statement  that  identifies  any
 6    revenue  source  that  will  be  used to pay debt service the
 7    principal of and interest on the alternate bonds.  The  clerk
 8    or  secretary  of the governmental unit shall make a petition
 9    form available to anyone requesting one.  If no  petition  is
10    filed   with  the  clerk  or  secretary  within  30  days  of
11    publication of the  authorizing  ordinance  and  notice,  the
12    alternate  bonds  shall  be  authorized to be issued.  But if
13    within this 30 days period, a petition  is  filed  with  such
14    clerk  or  secretary signed by electors numbering the greater
15    of (i) 7.5% of the registered voters in the governmental unit
16    or (ii) 200 of  those  registered  voters  or  15%  of  those
17    registered   voters,  whichever  is  less,  asking  that  the
18    issuance of such alternate bonds be submitted to  referendum,
19    the  clerk  or  secretary  shall  certify  such  question for
20    submission at an election held in accordance with the general
21    election law. The question on  the  ballot  shall  include  a
22    statement of any revenue source that will be used to pay debt
23    service the principal of and interest on the alternate bonds.
24    The  alternate  bonds  shall  be authorized to be issued if a
25    majority of the votes cast on the question at  such  election
26    are  in  favor  thereof  provided  that  notice  of  the bond
27    referendum, if held before July 1, 1999, has  been  given  in
28    accordance  with  the  provisions  of  Section  12-5  of  the
29    Election  Code  in effect at the time of the bond referendum,
30    at least 10 and not more than 45 days before the date of  the
31    election,  notwithstanding the time for publication otherwise
32    imposed by Section 12-5. Notices required in connection  with
33    the  submission  of public questions on or after July 1, 1999
34    shall be as set forth in Section 12-5 of the  Election  Code.
 
                            -7-            LRB9205634MWpkam02
 1    Backdoor referendum proceedings for bonds and alternate bonds
 2    to  be  issued  in lieu of such bonds may be conducted at the
 3    same time.
 4        (c)  To the extent payable from enterprise revenues, such
 5    revenues shall have been determined by the governing body  to
 6    be  sufficient  to  provide  for or pay in each year to final
 7    maturity of such alternate bonds all of the  following:   (1)
 8    costs   of  operation  and  maintenance  of  the  utility  or
 9    enterprise, but not including depreciation, (2) debt  service
10    on all outstanding revenue bonds payable from such enterprise
11    revenues,  (3)  all  amounts  required  to  meet  any fund or
12    account requirements with respect to such outstanding revenue
13    bonds, (4) other contractual or tort  liability  obligations,
14    if  any,  payable  from  such enterprise revenues, and (5) in
15    each year, an amount not less than 1.25 times debt service of
16    all (i) alternate bonds payable from such enterprise revenues
17    previously issued and outstanding and  (ii)  alternate  bonds
18    proposed to be issued. To the extent payable from one or more
19    revenue  sources,  such sources shall have been determined by
20    the governing body to provide in each  year,  an  amount  not
21    less  than  1.25  times  debt  service of all alternate bonds
22    payable from  such  revenue  sources  previously  issued  and
23    outstanding  and  alternate  bonds proposed to be issued. The
24    1.25 figure in the preceding sentence  shall  be  reduced  to
25    1.10  if the revenue source is a governmental revenue source.
26    The conditions enumerated in this subsection (c) need not  be
27    met  for  that  amount  of  debt  service provided for by the
28    setting aside of proceeds of bonds or  other  moneys  at  the
29    time of the delivery of such bonds.
30        (c-1)  In  the case of alternate bonds issued as variable
31    rate bonds (including refunding bonds), debt service shall be
32    projected based on the rate for the most recent date shown in
33    the 20 G.O. Bond Index of average municipal  bond  yields  as
34    published  in  the  most  recent  edition  of  The Bond Buyer
 
                            -8-            LRB9205634MWpkam02
 1    published in New York, New York (or any successor publication
 2    or index, or if  such  publication  or  index  is  no  longer
 3    published,  then  any index of long-term municipal tax-exempt
 4    bond yields selected by the governmental  unit),  as  of  the
 5    date  of  determination referred to in subsection (c) of this
 6    Section.  Any interest or fees that may  be  payable  to  the
 7    provider  of a letter of credit, line of credit, surety bond,
 8    bond insurance, or other credit enhancement relating to  such
 9    alternate  bonds  and  any  fees  that  may be payable to any
10    remarketing agent need not be taken into account for purposes
11    of such projection.  If the governmental unit enters into  an
12    agreement in connection with such alternate bonds at the time
13    of  issuance  thereof pursuant to which the governmental unit
14    agrees for a specified  period  of  time  to  pay  an  amount
15    calculated  at  an  agreed-upon  rate  or  index  based  on a
16    notional amount  and  the  other  party  agrees  to  pay  the
17    governmental unit an amount calculated at an agreed-upon rate
18    or  index  based  on  such notional amount, interest shall be
19    projected for such specified period of time on the  basis  of
20    the agreed-upon rate payable by the governmental unit.
21        (d)  The  determination  of the sufficiency of enterprise
22    revenues  or  a  revenue  source,  as  applicable,  shall  be
23    supported by reference  to  the  most  recent  audit  of  the
24    governmental  unit,  which  shall be for a fiscal year ending
25    not earlier than 18 months previous to the time  of  issuance
26    of  the  alternate  bonds.  If such audit does not adequately
27    show  such  enterprise  revenues  or   revenue   source,   as
28    applicable, or if such enterprise revenues or revenue source,
29    as  applicable,  are  shown  to  be  insufficient,  then  the
30    determination of sufficiency shall be supported by the report
31    of  an  independent  accountant  or  feasibility analyst, the
32    latter having a national reputation  for  expertise  in  such
33    matters,  demonstrating  the sufficiency of such revenues and
34    explaining, if appropriate, by what means the  revenues  will
 
                            -9-            LRB9205634MWpkam02
 1    be  greater  than  as  shown  in  the  audit.   Whenever such
 2    sufficiency is demonstrated by reference  to  a  schedule  of
 3    higher  rates  or charges for enterprise revenues or a higher
 4    tax imposition for  a  revenue  source,  such  higher  rates,
 5    charges  or  taxes  shall  have  been  properly imposed by an
 6    ordinance adopted prior to the time of delivery of  alternate
 7    bonds.   The  reference  to  and  acceptance  of  an audit or
 8    report, as the case may be,  and  the  determination  of  the
 9    governing  body as to sufficiency of enterprise revenues or a
10    revenue  source  shall  be  conclusive  evidence   that   the
11    conditions  of  this  Section  have  been  met  and  that the
12    alternate bonds are valid.
13        (e)  The  enterprise  revenues  or  revenue  source,   as
14    applicable,  shall  be  in fact pledged to the payment of the
15    alternate bonds; and the governing body  shall  covenant,  to
16    the  extent it is empowered to do so, to provide for, collect
17    and apply such enterprise  revenues  or  revenue  source,  as
18    applicable,  to  the  payment  of the alternate bonds and the
19    provision of not less than an  additional  .25  (or  .10  for
20    governmental revenue sources) times debt service.  The pledge
21    and   establishment   of  rates  or  charges  for  enterprise
22    revenues, or the imposition of  taxes  in  a  given  rate  or
23    amount,  as  provided  in  this  Section for alternate bonds,
24    shall constitute a continuing obligation of the  governmental
25    unit  with  respect to such establishment or imposition and a
26    continuing  appropriation  of  the  amounts  received.    All
27    covenants  relating to alternate bonds and the conditions and
28    obligations imposed by this Section are  enforceable  by  any
29    bondholder  of  alternate bonds affected, any taxpayer of the
30    governmental unit, and the People of the  State  of  Illinois
31    acting  through  the Attorney General or any designee, and in
32    the event that any such action results in  an  order  finding
33    that  the  governmental  unit  has  not properly set rates or
34    charges or imposed taxes to the extent it is empowered to  do
 
                            -10-           LRB9205634MWpkam02
 1    so  or  collected  and  applied  enterprise  revenues  or any
 2    revenue source, as applicable, as required by this  Act,  the
 3    plaintiff  in  any  such  action  shall be awarded reasonable
 4    attorney's fees.  The intent is that such enterprise revenues
 5    or revenue source, as applicable,  shall  be  sufficient  and
 6    shall  be  applied  to  the  payment  of debt service on such
 7    alternate bonds so that taxes  need  not  be  levied,  or  if
 8    levied  need  not  be extended, for such payment.  Nothing in
 9    this Section shall inhibit or restrict  the  authority  of  a
10    governing  body  to determine the lien priority of any bonds,
11    including alternate bonds, which may be issued  with  respect
12    to any enterprise revenues or revenue source.
13        In  the event that alternate bonds shall have been issued
14    and taxes, other than a designated revenue source, shall have
15    been extended pursuant to the general obligation, full  faith
16    and  credit promise supporting such alternate bonds, then the
17    amount of such alternate  bonds  then  outstanding  shall  be
18    included   in   the   computation   of  indebtedness  of  the
19    governmental unit for purposes of all statutory provisions or
20    limitations until such time as an audit of  the  governmental
21    unit  shall show that the alternate bonds have been paid from
22    the enterprise revenues or  revenue  source,  as  applicable,
23    pledged thereto for a complete fiscal year.
24        Alternate bonds may be issued to refund or advance refund
25    alternate  bonds  without  meeting  any of the conditions set
26    forth in this Section, except that the term of the  refunding
27    bonds shall not be longer than the term of the refunded bonds
28    and  that  the  debt  service  payable  in  any  year  on the
29    refunding bonds shall not exceed the debt service payable  in
30    such year on the refunded bonds.
31        Once  issued, alternate bonds shall be and forever remain
32    until  paid  or  defeased  the  general  obligation  of   the
33    governmental  unit,  for  the payment of which its full faith
34    and credit are pledged, and shall be payable from the levy of
 
                            -11-           LRB9205634MWpkam02
 1    taxes as is provided  in  this  Act  for  general  obligation
 2    bonds.
 3        The  changes  made  by this amendatory Act of 1990 do not
 4    affect the validity of bonds authorized before  September  1,
 5    1990.
 6    (Source:  P.A.  90-812,  eff.  1-26-99;  91-57, eff. 6-30-99;
 7    91-493, eff. 8-13-99; 91-868, eff. 6-22-00.)

 8        (30 ILCS 350/16.5)
 9        Sec. 16.5.  Proposition for  bonds.   For  all  elections
10    held  after  July  1,  2000,  the  form  of  a proposition to
11    authorize  the  issuance  of  bonds  pursuant  to  either   a
12    referendum or backdoor referendum may be as set forth in this
13    Section  as  an  alternative  to  the  form of proposition as
14    otherwise set  forth  by  applicable  law.   The  proposition
15    authorized  by  this  Section  shall  be in substantially the
16    following form:
17             Shall (name of governmental unit) (state purpose for
18        the bond issue) and issue its bonds to the  amount  of  $
19        (state  amount)  for  the  purpose  of  paying  the costs
20        thereof?
21        If  a  school  district  expects  to  receive  a   school
22    construction  grant from the State of Illinois has received a
23    grant entitlement from the Illinois State Board of  Education
24    pursuant   to  the  School  Construction  Law  for  a  school
25    construction project to be financed in part with proceeds  of
26    a bond authorized by referendum, then the form of proposition
27    may at the option of the school district additionally contain
28    substantially the following language:
29             (Name  of  school  district)  expects  to  receive a
30        school construction grant from the State of Illinois  has
31        received  a  grant  entitlement in the amount of $ (state
32        amount)  from  the  Illinois  State  Board  of  Education
33        pursuant to the School Construction Law  for  the  school
 
                            -12-           LRB9205634MWpkam02
 1        construction project to be financed in part with proceeds
 2        of  the  bonds, based on (i) a grant entitlement from the
 3        State Board of  Education  and  (ii)  current  recognized
 4        project  costs  determined  by  the  Capital  Development
 5        Board.
 6    (Source: P.A. 91-868, eff. 6-22-00.)

 7        (30 ILCS 350/17) (from Ch. 17, par. 6917)
 8        Sec. 17.  Leases and installment contracts.
 9        (a)  Interest  not  debt;  debt on leases and installment
10    contracts. Interest on bonds shall not  be  included  in  any
11    computation  of  indebtedness  of a governmental unit for the
12    purpose of any statutory provision or limitation.  For  bonds
13    consisting  of leases and installment or financing contracts,
14    (1) that portion of payments  made  by  a  governmental  unit
15    under  the terms of a bond designated as interest in the bond
16    or the ordinance authorizing such bond shall  be  treated  as
17    interest  for  purposes of this Section (2) where portions of
18    payments due  under  the  terms  of  a  bond  have  not  been
19    designated   as   interest  in  the  bond  or  the  ordinance
20    authorizing such bond, and all or a portion of such  payments
21    is to be used for the payment of principal of and interest on
22    other  bonds  of  the  governmental  unit  or bonds issued by
23    another unit of local government, such as a  public  building
24    commission,  the  payments  equal  to  interest  due  on such
25    corresponding bonds shall be treated as interest for purposes
26    of this Section and (3) where portions of payments due  under
27    the  terms  of a bond have not been designated as interest in
28    the bond or ordinance authorizing such bond and no portion of
29    any such payment is to be used for the payment  of  principal
30    of  and  interest  on other bonds of the governmental unit or
31    another unit of local government, a portion of  each  payment
32    due under the terms of such bond shall be treated as interest
33    for  purposes of this Section; such portion shall be equal in
 
                            -13-           LRB9205634MWpkam02
 1    amount to the  interest  that  would  have  been  paid  on  a
 2    notional   obligation   of  the  governmental  unit  (bearing
 3    interest at the highest rate permitted by law  for  bonds  of
 4    the  governmental unit at the time the bond was issued or, if
 5    no  such  limit  existed,  12%)  on  which  the  payments  of
 6    principal and interest were due at the same times and in  the
 7    same  amounts  as  payments  are  due  under the terms of the
 8    bonds.   The  rule  set  forth  in  this  Section  shall   be
 9    applicable  to  all interest no matter when earned or accrued
10    or at what interval paid, and whether or  not  a  bond  bears
11    interest  which compounds at certain intervals.  For purposes
12    of bonds sold at amounts less than 95% of their stated  value
13    at  maturity,  interest for purposes of this Section includes
14    the difference between the amount set forth on  the  face  of
15    the  bond  as  the  original  principal amount and the bond's
16    stated value at maturity.
17        This subsection may be made applicable  to  bonds  issued
18    prior  to  the  effective  date  of this Act by passage of an
19    ordinance  to  such  effect  by  the  governing  body  of   a
20    governmental unit.
21        (b)  Purchase  or  lease of property.  The governing body
22    of each governmental unit may purchase or lease  either  real
23    or   personal  property,  including  investments,  investment
24    agreements, or investment services, through  agreements  that
25    provide  that the consideration for the purchase or lease may
26    be paid through installments made at stated intervals  for  a
27    period  of  no  more  than 20 years or another period of time
28    authorized by law, whichever is greater;  provided,  however,
29    that   investments,   investment  agreements,  or  investment
30    services purchased in connection with a  bond  issue  may  be
31    paid  through  installments  made  at  stated intervals for a
32    period of time not in excess of the maximum term of such bond
33    issue.   Each  governmental  unit  may   issue   certificates
34    evidencing  the  indebtedness  incurred  under  the  lease or
 
                            -14-           LRB9205634MWpkam02
 1    agreement.  The governing body may provide for the treasurer,
 2    comptroller,  finance  officer,  or  other  officer  of   the
 3    governing  body  charged with financial administration to act
 4    as counter-party to any such lease or agreement,  as  nominee
 5    lessor or seller.  When the lease or agreement is executed by
 6    the  officer  of  the  governmental  unit  authorized  by the
 7    governing body to bind the governmental unit thereon  by  the
 8    execution  thereof  and  is  filed  with  and executed by the
 9    nominee lessor or seller, the lease  or  agreement  shall  be
10    sufficiently  executed  so as to permit the governmental unit
11    to issue certificates evidencing  the  indebtedness  incurred
12    under  the  lease  or  agreement.   The certificates shall be
13    valid whether or not an appropriation with respect thereto is
14    included in any annual or supplemental budget adopted by  the
15    governmental  unit.  From time to time, as the governing body
16    executes  contracts  for  the  purpose   of   acquiring   and
17    constructing  the  services or real or personal property that
18    is a part of the subject of the lease or agreement, including
19    financial, legal,  architectural,  and  engineering  services
20    related  to  the lease or agreement, the governing body shall
21    order the contracts filed with its nominee officer, and  that
22    officer   shall  identify  the  contracts  to  the  lease  or
23    agreement; that identification shall permit  the  payment  of
24    the  contract  from the proceeds of the certificates; and the
25    nominee officer shall duly  apply  or  cause  to  be  applied
26    proceeds of the certificates to the payment of the contracts.
27    The governing body of each governmental unit may sell, lease,
28    convey,  and  reacquire  either real or personal property, or
29    any interest in real or personal property, upon any terms and
30    conditions and in any manner, as  the  governing  body  shall
31    determine,  if  the  governmental unit will lease, acquire by
32    purchase agreement, or otherwise reacquire the  property,  as
33    authorized by this subsection or any other applicable law.
34        All  indebtedness  incurred  under  this subsection, when
 
                            -15-           LRB9205634MWpkam02
 1    aggregated with the existing indebtedness of the governmental
 2    unit, may not exceed the debt limits provided  by  applicable
 3    law.
 4    (Source: P.A. 91-493, eff. 8-13-99; 91-868, eff. 6-22-00.)

 5        Section  99.  Effective date.  This Act takes effect upon
 6    becoming law.".

[ Top ]