§ 2-566. Procedure for issuance of nonreferendum general obligation bonds.

(a)

General power. The city, acting by and through its city council, may, from time to time, borrow money for proper public purposes; and in evidence of such borrowing, the city may issue its full faith and credit general obligation bonds. The general obligation bonds shall be payable from ad valorem taxes which shall be levied without limitation as to the rate or amount against all taxable property situated within the city. The general obligation bonds may be issued without the submission of the question of their issuance to the electors of the city for their approval.

(b)

Procedures. The procedures for the issuance of general obligation bonds shall be substantially as provided for in this section, pursuant to the authority granted by section 6, article VII, of the Illinois Constitution, 1970. The procedures provided for in this section shall be controlling and shall be substantially complied with by the city in the borrowing of money through the issuance of general obligation bonds of the city, notwithstanding anything to the contrary contained in the provisions of the Illinois Municipal Code (65 ILCS 5/1-1-1 et seq.) and all acts amendatory thereof and supplementary thereto, and any other law or laws of the state.

(c)

Bond ordinance. The city shall adopt a bond ordinance describing the public purpose or purposes to be served by the borrowing of money. The bond ordinance shall contain a finding and determination that the borrowing of money is necessary for the welfare of the government and affairs of the city, is for a proper public purpose or purposes, and is in the public interest; this finding and determination shall be deemed conclusive. The bond ordinance shall also contain the following:

(1)

Amount of money necessary to be borrowed.

(2)

The amount of bonds to be issued in evidence of such borrowing.

(3)

The details of the bonds, including the date, number, redemption provisions, if any, denomination, and maturity; the maturity of the bonds shall not exceed 40 years from the date of such bonds.

(4)

The rate or rates of interest which shall be determined by the city council.

(5)

Authorization for the execution of the bonds therein authorized on behalf of the city by the signatures of the mayor and city clerk.

(6)

Requirement that the seal of the city be affixed to the bonds.

(7)

Determination of whether such bonds shall be registered in the name of the owner as to principal only, or whether the bonds shall be fully registered as to both principal and interest.

(8)

Provision for the payment of such bonds, both principal thereof and interest thereon, until maturity, by levy of a direct annual tax upon all the taxable property situated within the city sufficient for such purpose.

(9)

Set forth the form of the bond.

(d)

Contract for sale of bond. A contract for the sale of general obligation bonds may be entered into prior to the adoption of the bond ordinance, or the bond ordinance may provide for the subsequent sale of the bonds therein authorized. In the event of a subsequent sale, and if the bonds bear interest at a rate or rates less than the rate or rates authorized in the bond ordinance, prior to the delivery of such bonds, the taxes levied in the bond ordinance shall be abated by that amount representing the savings resulting from the sale of the general obligation bonds at a lower rate of interest than authorized in the bond ordinance.

(e)

Sale of bonds. The general obligation bonds may be sold in the manner as determined by the city council. The bonds shall be sold at such price as the city council shall determine.

(f)

Filing of bond ordinance. A copy of the bond ordinance, as adopted and certified to by the city clerk, shall be filed in the office of the county clerk. As filed, the bond ordinance shall constitute the authority for the county clerk, in and for each of the years for which taxes are levied in the bond ordinance, to extend such taxes for collection against all of the taxable property situated within the city.

(g)

Extension of taxes. The taxes levied as provided in this section for the payment of principal of, and interest on, the bonds shall be extended annually by the county clerk without limitation as to rate or amount; and such taxes shall be in addition to, and in excess of, all other taxes levied or authorized to be levied by the city. Except as provided for in this section, such taxes so levied shall not be subject to repeal or abatement in any manner until such time as all the bonds authorized under the terms of the bond ordinance, and issued, shall have been paid in full, both principal thereof and interest thereon, up to, and including, the date of maturity; provided, however, that if the city has funds available, it may appropriate the funds and order their deposit in trust with the paying agent for the purpose of payment of any of the maturities of bonds, or interest thereon; in this event, the taxes so levied to pay such principal or interest may be abated by the amount so deposited; such abatement shall be by ordinance of the city and filed with the county clerk.

(h)

Appropriation. The provisions of the bond ordinance shall constitute an appropriation of the amounts required as referred to and described in the bond ordinance. Upon the delivery of the bonds authorized in the bond ordinance, the proceeds thereof shall be used solely and only for the purpose or purposes for which the bonds were authorized.

(Code 1968, § 2-11; Code 1996, § 2-566)