Bill Text: IL SB1430 | 2013-2014 | 98th General Assembly | Introduced

NOTE: There are more recent revisions of this legislation. Read Latest Draft

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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-Introduced.html

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98TH GENERAL ASSEMBLY State of Illinois 2013 and 2014 SB1430 Introduced 2/6/2013, by Sen. Dave Syverson SYNOPSIS AS INTRODUCED:
55 ILCS 5/5-1134 new
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.
LRB098 08560 OMW 38674 b
A BILL FOR
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AN ACT concerning local government.
Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
Section 5. The Counties Code is amended by adding Section
5-1134 as follows:
(55 ILCS 5/5-1134 new)
Sec. 5-1134. Borrowing from financial institutions. The
county board of a county may borrow money 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, county executive, or Cook County Board
President, 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

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incurred under this Section, when aggregated with the existing
indebtedness of the county, may not exceed any debt limitation
otherwise provided for by law. This Section shall not be
construed to grant any additional authority to a county to
borrow money or to remove any referendum approval required of a
county to borrow money. "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.
Section 99. Effective date. This Act takes effect upon
becoming law.