Bill Text: IL SB1430 | 2013-2014 | 98th General Assembly | Chaptered
Bill Title: Amends the Counties Code. Provides that the county board of a county may borrow money for county purposes from one fund for the use of another fund, as long as it is repaid within the current fiscal year. Provides that the county board of a county may borrow money from any bank or financial institution, provided that the money shall be repaid within 10 years from the time the money is borrowed. Sets forth requirements concerning the documentation of the loan. Prohibits the indebtedness incurred, when aggregated with the existing indebtedness of the county, from exceeding the debt limitation otherwise provided for by law. Defines "financial institution". Effective immediately.
Spectrum: Partisan Bill (Republican 3-0)
Status: (Passed) 2013-08-23 - Public Act . . . . . . . . . 98-0525 [SB1430 Detail]
Download: Illinois-2013-SB1430-Chaptered.html
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| Public Act 098-0525 | ||||
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AN ACT concerning local government.
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Be it enacted by the People of the State of Illinois,
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represented in the General Assembly:
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Section 5. The Counties Code is amended by adding Section | ||||
5-1134 as follows:
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(55 ILCS 5/5-1134 new) | ||||
Sec. 5-1134. Borrowing from financial institutions. The | ||||
county board of a county may borrow money for any corporate | ||||
purpose from any bank or other financial institution provided | ||||
such money shall be repaid within 2 years from the time the | ||||
money is borrowed. The county board chairman or county | ||||
executive, as the case may be, shall execute a promissory note | ||||
or similar debt instrument, but not a bond, to evidence the | ||||
indebtedness incurred by the borrowing. The obligation to make | ||||
the payments due under the promissory note or other debt | ||||
instrument shall be a lawful direct general obligation of the | ||||
county payable from the general funds of the county and such | ||||
other sources of payment as are otherwise lawfully available. | ||||
The promissory note or other debt instrument shall be | ||||
authorized by an ordinance passed by the county board and shall | ||||
be valid whether or not an appropriation with respect to that | ||||
ordinance is included in any annual or supplemental | ||||
appropriation adopted by the county board. The indebtedness | ||||
incurred under this Section, when aggregated with the existing | ||
indebtedness of the county, may not exceed any debt limitation | ||
otherwise provided for by law. "Financial institution" means | ||
any bank subject to the Illinois Banking Act, any savings and | ||
loan association subject to the Illinois Savings and Loan Act | ||
of 1985, any savings bank subject to the Savings Bank Act, any | ||
credit union subject to the Illinois Credit Union Act, and any | ||
federally chartered commercial bank, savings and loan | ||
association, savings bank, or credit union organized and | ||
operated in this State pursuant to the laws of the United | ||
States.
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Section 99. Effective date. This Act takes effect upon | ||
becoming law.
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