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| 1 | AN ACT concerning local government.
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| 2 | Be it enacted by the People of the State of Illinois,
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| 3 | represented in the General Assembly:
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| 4 | Section 5. The Local Government Debt Reform Act is amended | ||||||
| 5 | by changing Section 11 as follows:
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| 6 | (30 ILCS 350/11) (from Ch. 17, par. 6911)
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| 7 | Sec. 11. Refundings and redemption premiums. Bonds may be | ||||||
| 8 | refunded
or advance refunded upon such terms as the governing | ||||||
| 9 | body may set in accordance
with this Act, for such term of | ||||||
| 10 | years, not in excess of the maximum term of
years permitted by | ||||||
| 11 | applicable law for the bonds to be refunded, and in such
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| 12 | principal amount, all as may be deemed necessary by the | ||||||
| 13 | governing body.
Revenue bonds may be issued to refund general
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| 14 | obligation bonds or alternate
bonds issued under this Act. | ||||||
| 15 | General obligation bonds shall not be issued to
refund revenue | ||||||
| 16 | bonds or alternate bonds except as expressly permitted by
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| 17 | applicable law. Any redemption premium payable upon the | ||||||
| 18 | redemption of
bonds may be payable from the proceeds of | ||||||
| 19 | refunding bonds which may be
issued for the purpose of | ||||||
| 20 | refunding such bonds, from any other lawfully
available source | ||||||
| 21 | or from both proceeds and such other sources. | ||||||
| 22 | Bonds that have been refunded shall not be considered to be | ||||||
| 23 | indebtedness for the purposes of any statutory or other debt | ||||||
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| 1 | limitation if such refunded bonds are secured by and to be paid | ||||||
| 2 | as to principal, interest, and premium, if any, from an escrow | ||||||
| 3 | account that is (i) invested in (a) obligations of the United | ||||||
| 4 | States of America; (b) obligations that are guaranteed by the | ||||||
| 5 | full faith and credit of the United States of America as to the | ||||||
| 6 | timely payment of principal and interest; or (c) bonds of any | ||||||
| 7 | State or governmental unit that are rated at the time of | ||||||
| 8 | purchase within the 3 highest general classifications | ||||||
| 9 | established by a rating service of nationally recognized | ||||||
| 10 | expertise in rating bonds of states and their political | ||||||
| 11 | subdivisions; and (ii) determined by an independent certified | ||||||
| 12 | public accountant or nationally recognized feasibility analyst | ||||||
| 13 | to be sufficient to provide for the timely payment of principal | ||||||
| 14 | of and interest on the refunded bonds when due or upon | ||||||
| 15 | redemption. | ||||||
| 16 | Any governmental unit may deposit cash into an escrow | ||||||
| 17 | account to be held uninvested for the purpose of refunding or | ||||||
| 18 | providing for the payment of principal, interest, and premium, | ||||||
| 19 | if any, on its bonds, and bonds that have been so refunded or | ||||||
| 20 | provided for shall not be considered to be indebtedness for the | ||||||
| 21 | purposes of any statutory or other debt limitation.
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| 22 | (Source: P.A. 90-306, eff. 8-1-97.)
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| 23 | Section 99. Effective date. This Act takes effect upon | ||||||
| 24 | becoming law.
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