60 ILCS 1/205-15
2021 Illinois Compiled Statutes|Chapter 60 - TOWNSHIPS|60 ILCS 1/ - Township Code.|Article 205 - Township Waterworks And Sewerage Systems

Sec. 205-15.     Revenue and refunding bonds; issuance and terms.(a) To pay the cost of the construction, purchase, and improvement or  extension from time to time of any system under this Article, including  engineering, legal, and other expenses, together with interest, to a date 6  months after the estimated date of completion, the township board may  appropriate township funds, including Federal Revenue Sharing funds, and issue  and sell revenue bonds of the township payable solely from the income and  revenue derived from the operation of the system.  The board may also from time  to time issue revenue bonds to refund any bonds at maturity or pursuant to  redemption provisions or at any time before maturity with the consent of the  holders of the bonds. All bonds shall be authorized by an ordinance adopted by  the township board, shall bear a date or dates, may mature at a time or  times not exceeding 40 years from their respective dates, may bear  interest (i) at a rate not exceeding the maximum rate authorized by the Bond  Authorization Act as amended at the time of the making of the contract (if  issued within one year after July 18, 1972) and (ii) at the maximum rate  authorized by the Bond Authorization Act as amended at the time of the making  of the contract (if issued after that date), payable semi-annually, may be in a  form, may carry registration privileges, may be payable at a place or  places, may be subject to redemption in a manner and upon terms with or without  premium as is stated on the face of the bonds, may be executed in a manner by  officers of the township, and may contain terms and covenants, all as provided  by the ordinance authorizing their issue.(b) Bonds shall be sold in the manner determined by the township board and,  if issued to bear interest (i) at the rate of the maximum rate authorized by  the Bond Authorization Act, as amended at the time of the making of the  contract, or (ii) the maximum rate authorized by the Bond Authorization Act as  amended at the time of the making of the contract (if issued after a one year  period following July 18, 1972), shall be sold for not less than par and  accrued interest. The selling price of any bonds bearing less than  (i) the maximum interest rate authorized by the Bond Authorization  Act as amended at the time of the making of the contract, or (ii) the maximum  rate authorized by the Bond Authorization Act as amended at the  time of the making of the contract (if issued after a one year period following  July 18, 1972), however, shall be such that the interest cost of the money  received from the sale of the bonds does not exceed (i) the maximum rate  authorized by the Bond Authorization Act as amended at the time of the making  of the contract, or (ii) the maximum rate authorized by the Bond Authorization  Act as amended at the time of the making of the contract (if issued after a one  year period following July 18, 1972), computed to absolute maturity, according  to standard tables of bond value. The bonds shall be payable solely from the  income and revenues to be derived from the operation of the system.(c) Notwithstanding the form or tenor of the bonds, and in the absence of  expressed recitals on the face of the bonds that the bonds are  non-negotiable, all bonds issued under this Article shall be negotiable  instruments.(d) To secure payment of any or all of the bonds, the ordinance shall  set forth the covenants and undertakings of the township in connection  with (i) the issuance of the bonds and the issuance of additional bonds payable  from the revenue or income to be derived from the operation of the  system and (ii) the use and operation of the system. The ordinance may also  provide that the bonds, or those that are specified, shall, to the extent and  in the manner prescribed, be subordinated and be junior in standing with  respect to the payment of principal and interest and the security of payment to  other bonds designated in the ordinance.(e) If any officer whose signature appears on the bonds or coupons  attached to the bonds ceases to be an officer before the delivery of  the bonds to the purchaser, his or her signature shall nevertheless be valid  and sufficient for all purposes to the same effect as if he or she had remained  in office until the delivery of the bonds.(f) Under no circumstances shall any bonds issued or any other obligation  incurred under this Article by a township be or become an indebtedness or an  obligation of the township payable from taxes, nor shall they in any event  constitute an indebtedness of the township within the meaning of any  constitutional or statutory provision or limitation.  This fact shall be  plainly stated on the face of each bond.(g) With respect to instruments for the payment of money issued under this  Section either before, on, or after June 6, 1989, it is and always has been the  intention of the General Assembly (i) that the Omnibus Bond Acts are and always  have been supplementary grants of power to issue instruments in accordance with  the Omnibus Bond Acts, regardless of any provision of this Article that may  appear to be or to have been more restrictive than those Acts, (ii) that the  provisions of this Section are not a limitation on the supplementary  authority granted by the Omnibus Bond Acts, and (iii) that instruments  issued under this Section within the supplementary authority granted  by the Omnibus Bond Acts are not invalid because of any provision of  this Article that may appear to be or to have been more restrictive than  those Acts.    (Source: P.A. 86-4; 88-62.)