Section 70 ILCS 1842/60 - Bonds(a) The city council of a participating municipality may, pursuant to ordinance and within that municipality's corporate limits, issue and dispose of its interest-bearing revenue bonds and may also in the same manner issue and dispose of its interest-bearing revenue bonds to refund any revenue bonds at maturity or pursuant to redemption provisions or at any time before maturity with the consent of the holders. Issuance and disposition of revenue bonds under this subsection may be done without submitting the question to referendum, notwithstanding any other provision of law.(b) A city council of a participating municipality may issue general obligation bonds to be used for Port District purposes within that municipality's corporate limits inside the Port District by adopting an ordinance specifying the amount of bonds to be issued, the purpose for which the bonds will be issued, the maximum rate of interest the bonds will bear, which shall not be more than the maximum rate authorized by the Bond Authorization Act in effect at the time of the making of the contract, and the date of maturity, which shall not be more than 20 years after the date of issuance. The city council of a participating municipality may issue and, in accordance with subsection (e), sell the bonds specified in the ordinance and adopt an ordinance levying an annual tax against all the taxable property within the municipality's corporate limits inside the Port District sufficient to pay the maturing principal and interest of the bonds and to file a certified copy of the ordinances in the office of the county clerk of Rock Island County. Thereafter, the county clerk shall annually extend taxes against all the taxable property within the corporate limits of the participating municipality inside the Port District at the rate specified in the ordinance levying the taxes. The aggregate amount of principal of general obligation bonds issued under this subsection shall not exceed 2.5% of the assessed valuation of all taxable property within the corporate limits of the participating municipality within the Port District. With respect to instruments for the payment of money issued under this subsection: (i) the Omnibus Bond Acts are supplementary grants of power to issue instruments in accordance with the Omnibus Bond Acts, regardless of any provision of this Act that may appear to be or to have been more restrictive than those Acts, (ii) the provisions of this subsection are not a limitation on the supplementary authority granted by the Omnibus Bond Acts, and (iii) instruments issued under this subsection within the supplementary authority granted by the Omnibus Bond Acts are not invalid because of any provision of this Act that may appear to be or to have been more restrictive than those Acts.
(c) All revenue bonds shall be payable solely from the revenues or income to be derived from the terminals, terminal facilities, port facilities, and any other building or facility, or part of a building or facility, that the participating municipality has the power to acquire, construct, reconstruct, extend, or improve. The revenue bonds may bear a single date or multiple dates and may mature at any time not exceeding 40 years from the bonds' respective dates, as shall be provided in the ordinance authorizing issuance. Both revenue bonds and general obligation bonds may bear interest at the rate or rates as permitted in the Bond Authorization Act payable semi-annually, as provided in the ordinance authorizing issuance. All bonds, whether revenue or general obligations, may be in the form, may carry the registration privileges, may be executed in the manner, may be payable at the place or places, may be made subject to redemption in the manner and upon the terms, with or without premium as is stated on the face of the bond, may be authenticated in the manner, and may contain terms and covenants as provided in the ordinance authorizing issuance. The holder or holders of any bonds or interest coupons attached to the bonds issued by a participating municipality may bring suit to compel the performance and observance by the participating municipality or any of its officers, agents, or employees of any contract or covenant made by the participating municipality with the holders of the bonds or interest coupons and to compel the participating municipality and any of its officers, agents, or employees to perform any duties required to be performed for the benefit of the holders of any of the bonds or interest coupons by the provision in the ordinance authorizing the bonds' or interest coupons' issuance, and to enjoin the participating municipality and any of its officers, agents, or employees from taking any action in conflict with any contract or covenant, including the establishment of charges, fees, and rates for the use of facilities.
Notwithstanding the form and tenor of any bond, whether revenue or general obligation, and in the absence of any express recital on the face of the bond that it is nonnegotiable, all the bonds shall be negotiable instruments. Pending the preparation and execution of the bonds, temporary bonds may be issued with or without interest coupons as provided by ordinance.
(d) All revenue bonds shall be issued and sold by the participating municipality in the manner as the participating municipality shall determine. However, if any bonds are issued to bear interest at the maximum rate of interest allowed by subsection (c), the bonds shall be sold for not less than par and accrued interest. The selling price of bonds bearing interest at a rate less than the maximum allowable interest rate per annum shall be set so that the interest cost to the participating municipality of the money received from the bond sale shall not exceed the maximum annual interest rate allowed by subsection (c), computed to absolute maturity of the bonds according to standard tables of bond values.(e) All general obligation bonds issued by a participating municipality shall be sold by the participating municipality upon sealed bids to the highest and best responsible bidder who specifies the lowest net interest cost for the bonds. The participating municipality shall publish at least once, in a newspaper published in and having general circulation in the participating municipality, a notice of the time, date, and place when and where sealed bids for the purchase of the bonds will be received and publicly opened, read, and tabulated, which shall not be less than 10 days after the date of the publication. The bonds shall be sold for not less than par plus accrued interest to the date of delivery.(f) Upon the issue of any revenue bonds as provided in this Act, the participating municipality shall fix and establish rates, charges, and fees for the use of facilities acquired, constructed, reconstructed, extended, or improved with the proceeds derived from the sale of the revenue bonds sufficient at all times with other revenues of the participating municipality, if any, to pay: (i) the cost of maintaining, repairing, regulating, and operating the facilities; and (ii) the bonds and interest on the bonds as they become due and all sinking fund requirements and other requirements provided by the ordinance authorizing the issuance of the bonds or as provided by any trust agreement executed to secure payment of the bonds. The participating municipality may execute and deliver a trust agreement or agreements to secure the payment of any or all revenue bonds and for the purpose of setting forth the covenants and undertaking by the participating municipality in connection with the issuance of revenue bonds and the issuance of any additional revenue bonds payable from revenue income derived from the terminals, terminal facilities, port facilities, and other buildings or facilities that the participating municipality has the power to acquire, construct, reconstruct, extend, or improve. However, a lien upon any physical property of the participating municipality shall not be created in the trust agreement or agreements. A remedy for any breach or default of the terms of the trust agreement by the participating municipality may be by mandamus in the circuit court to compel performance and compliance with the trust agreement, but the trust agreement may prescribe by whom or on whose behalf the action may be instituted.
(g) Bonds issued by a participating municipality and other obligations of the participating municipality shall not be an indebtedness or obligation of the State of Illinois, of a political subdivision of the State, or of a unit of local government, including the Port District or any other participating municipality. A revenue bond shall not be an indebtedness of a participating municipality within the purview of any constitutional limitation or provision, and it shall be stated on the face of each revenue bond that it does not constitute an indebtedness but is payable solely from the revenues or income derived from terminals, terminal facilities, and port facilities within the corporate limits of that participating municipality.
Added by P.A. 103-0242,§ 60, eff. 1/1/2024.