65 ILCS 5/11-117-9
2021 Illinois Compiled Statutes|Chapter 65 - MUNICIPALITIES|65 ILCS 5/ - Illinois Municipal Code.|Article 11 - Corporate Powers and Functions

 (from Ch. 24, par. 11-117-9)Sec. 11-117-9.         For the purpose of acquiring any public utility, or any part  thereof, or property necessary or appropriate for the operation of any  public utility, either by purchase, condemnation or construction, any  municipality may issue and dispose of interest bearing certificates,  hereinafter called public utility certificates. Under no circumstances  shall these public utility certificates be or become an obligation or  liability of the municipality or payable out of any general fund thereof.  They shall be payable solely out of the revenue or income to be derived  from the public utility for the acquisition of which they were issued. Such  certificates shall not be issued and secured on public utility property in  an amount in excess of the cost of the municipality of that property and  10% of that cost in addition thereto.In order to secure the payment of these public utility certificates and  the interest thereon, the municipality may convey, by way of mortgage or  deed of trust, any or all of the public utility property acquired or to be  acquired through the issuance thereof. Such a mortgage or deed of trust  shall be executed in such manner as may be directed by law for the  acknowledgment and recording of mortgages of real estate, and may contain  such provisions and conditions not in conflict with the provisions of this  Division 117 as may be deemed necessary to secure the payment of the public  utility certificates described therein. Any such mortgage or deed of trust  may grant a privilege or right to maintain and operate the public utility  property covered thereby, for a period not exceeding 20 years from and  after the date that that property may come into the possession of any  person as the result of foreclosure proceedings. Such a privilege or right  may include the right to fix the rates or charges which the person securing  the property as the result of foreclosure proceedings shall be entitled to  charge in the operation of that property for a period not exceeding 20  years.Whenever and as often as default is made in the payment of any public  utility certificate, issued and secured by a specific mortgage or deed of  trust, or in the payment of the interest thereon when due, and the default  has continued for the space of 12 months after notice thereof has been  given to the mayor, and to the comptroller, if any, it is lawful for the  mortgagee or trustee, upon the request of the holders of a majority in  amount of the certificates issued and outstanding under the mortgage or  deed of trust, to declare the whole of the principal of all of the  certificates, which are unpaid, to be at once due and payable, and to  proceed to foreclose the mortgage or deed of trust in any court of  competent jurisdiction. At a foreclosure sale, the mortgagee or the holders  of the unpaid certificates may become the purchaser or purchasers of the  property, rights and privileges sold, if he or they are the highest  bidders. Any public utility acquired under any such foreclosure shall be  subject to regulation by the corporate authorities of the municipality to  the same extent as if the right to construct, maintain, and operate that  property had been acquired through a direct grant without the intervention  of foreclosure proceedings.However, no public utility certificates shall ever be issued by any  municipality under the provisions of this Division 117 unless the question  of the adoption of the ordinance of the corporate authorities authorizing  the issuance thereof has first been submitted to the electors of the  municipality and approved by a majority of the electors of the municipality  voting upon the question. The question shall be submitted in accordance  with the provisions of Section 11-117-3.    (Source: Laws 1961, p. 576.)