65 ILCS 5/11-136-4
2021 Illinois Compiled Statutes|Chapter 65 - MUNICIPALITIES|65 ILCS 5/ - Illinois Municipal Code.|Article 11 - Corporate Powers and Functions

 (from Ch. 24, par. 11-136-4)Sec. 11-136-4.         For the purpose of acquiring such a waterworks system or  sources of supply of water or sewer systems, or any combination thereof or  for making improvements and extensions to such a waterworks system or  sources of supply of water or sewer systems, or any combination thereof,  such a commission is authorized to issue revenue bonds payable solely from  the revenue to be derived pursuant to any contracts with the specified  municipalities or with any person, firm or corporation or by virtue of the  operation of any properties acquired or to be acquired. These bonds shall  not constitute an indebtedness of any of the municipalities represented by  the commission. The bonds shall bear interest 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, payable semiannually, and  shall mature within the period of usefulness of the property to be  acquired or constructed from the proceeds thereof. This period shall be  conclusively determined by the commission at or before the time of the  issuance of the bonds, and in no event shall any of the bonds be issued  with a maturity more than 50 years from the date thereof. The bonds  shall be sold in such manner as the commission shall determine, except  that if issued to bear interest at  the maximum rate authorized by the Bond Authorization Act, as amended at the  time of the making of the contract, the bonds  shall be sold for not less than par and accrued interest, and except  that the selling price of any bond bearing interest at less than  the maximum rate authorized by the Bond Authorization Act, as amended at the  time of the making of the contract, shall be such that the interest cost  of the money received from that bond shall not exceed  the maximum rate authorized by the Bond Authorization Act, as amended at the  time of the making of the contract, computed to maturity, according  to standard tables of bond values.Before the treasurer of the commission is entitled to receive the  proceeds of the sale of such a bond issue, he shall supply a corporate  surety bond in an amount equivalent to the amount of funds to be derived  from the sale of the bonds, and, in addition thereto, he shall supply a  separate corporate surety bond for the faithful accounting of any funds  that may come into his possession in an amount equal to the amount of  funds likely to come into his hands in any one year from the revenue to  be derived from the operation of any of the properties of the  commission. The cost of these surety bonds shall be paid by the  commission.The revenue bonds shall be issued pursuant to an ordinance or  resolution and shall be in such form and be executed in such manner as  may be prescribed by the ordinance or resolution. It shall not be  necessary that the ordinance or resolution refer to plans and  specifications nor that there be on file for public inspection prior to  the adoption of such ordinance detailed plans and specifications of the  project. This ordinance or resolution may contain such covenants and  restrictions in relation to the operation of the properties under the  control of the commission and the issuance of additional revenue bonds  thereafter as may be deemed necessary or advisable for the assurance of  payment of the bonds thereby authorized and as may be thereafter issued.  It shall be plainly stated on the face of each bond that it does not  constitute an indebtedness of any municipality represented by the  commission within the meaning of any statutory or constitutional  limitation. Upon the issuance of revenue bonds, the revenue of the  commission derived pursuant to contracts entered into for the sale of  water to the specified municipalities and from the operation of its  properties, shall be accounted for as provided in the ordinance or  resolution authorizing the issuance of the bonds. Any commission created  under the provisions of this Division 136 may also issue new bonds for  the purpose of providing funds for the payment of unpaid bonds in  accordance with the procedure prescribed by this Division 136.With respect to instruments for the payment of money issued under this  Section either before, on, or after the effective date of this amendatory  Act of 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 Act 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 Act that may appear to be or to have been more restrictive than  those Acts.The amendatory Acts of 1971, 1972 and 1973 are not a limit upon any  municipality which is a home rule unit.    (Source: P.A. 86-4.)