SB0290 Engrossed

LRB095 06244 HLH 28913 b






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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 Hospital District Law is amended  by adding 
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Section 21.3 as follows:
 
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    (70 ILCS 910/21.3  new)
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    Sec. 21.3. Lines of credit.

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    (a) A hospital district may enter into a line of credit 
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secured by and payable from one or more of these sources: 
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property taxes, unencumbered accounts receivable, or other 
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revenues, in an amount not to exceed the greater of the 
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following amounts if the source is pledged: (i) 85% of the 
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amount of property taxes most recently levied, (ii) 85% of 
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unencumbered accounts receivable of the district (in 
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substantially the manner set forth in Section 21.1 of this 
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Act), (iii) 85% of other revenues (in substantially the manner 
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set forth in Section 21.2 of this Act), or (iv) 85% of amounts 
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unpaid under third-party reimbursement or payment programs 
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(including but not limited to State or federal Medicare or 
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Medicaid payments or programs). All moneys so borrowed shall be 
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repaid within 24 months.
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    (b) Before establishing a line of credit under this 
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Section, the hospital district shall authorize the line of 
 


 






SB0290 Engrossed
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LRB095 06244 HLH 28913 b




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credit by ordinance. The ordinance shall set forth facts 
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demonstrating the need for the line of credit, state the amount 
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to be borrowed, establish a maximum interest rate limit not to 
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exceed the maximum rate authorized by the Bond Authorization 
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Act, and provide a date by which the borrowed funds shall be 
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repaid. The ordinance shall authorize and direct the relevant 
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officials to make arrangements to set apart and hold, as 
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applicable, the moneys that will be used to repay the 
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borrowing. In addition, the ordinance may authorize the 
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relevant officials to make partial repayments on the line of 
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credit as the moneys become available and may contain any other 
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terms, restrictions, or limitations desirable or necessary to 
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give effect to this Section 21.3.
 

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