315 ILCS 30/27
2021 Illinois Compiled Statutes|Chapter 315 - URBAN PROBLEMS|315 ILCS 30/ - Urban Renewal Consolidation Act of 1961.|Part III - General Provisions

 (from Ch. 67 1/2, par. 91.127)Sec. 27.         Revenue bonds may be issued by a municipality and such bonds shall  contain a provision that the principal thereof and interest thereon shall  be payable exclusively from the proceeds and revenues of any redevelopment  project or conservation area which is financed in whole or in part with the  proceeds of such bonds, together with that amount of the funds of the  municipality from whatever source derived as is necessary to constitute the  local cash grant-in-aid for the redevelopment project or conservation area  within the meaning of applicable federal law; provided, however that any  such bonds may be additionally secured by a pledge of any loan, grant or  contribution, or parts thereof, thereafter to be received from the United  States of America or any agency or instrumentality thereof, or by the  contracts therefor.(a) Neither the members of a Department of Urban Renewal, nor any  officers, agents or employees of the municipality, nor any other persons  executing such bonds shall be liable personally thereof by reason of the  issuance thereof. Such bonds (and the same shall so state on their face)  shall not be a debt of any city, village, incorporated town, county, the  State or any political subdivision thereof and neither the city, village,  incorporated town or the county, nor the State or any political subdivision  thereof, shall be liable thereon, nor in any event shall such bonds be  payable out of any funds or properties of a municipality other than those  enumerated in this Section. Such bonds shall not constitute an indebtedness  within the meaning of any constitutional or statutory debt limitation or  restriction and such bonds are declared to be issued for an essential  public and governmental purpose.(b) Bonds issued hereunder may be issued in one or more series and shall  bear such date or dates, shall mature at such time or times, bear interest  at such rate or rates, not exceeding the maximum rate authorized by the  Bond Authorization Act, as amended at the time of the making of the  contract, for bonds issued before January 1, 1972 and not exceeding  the maximum rate authorized by the Bond Authorization Act, as amended at the  time of the making of the contract, for bonds issued after  January 1, 1972, be in such denomination or denominations, be in such form  either coupon or registered, carry registration privileges, have such  priority, be executed in such manner, be payable in such medium of payment,  at such place or places and be subject to such terms of redemption (with or  without premium) as the ordinance, any trust indenture relating thereto,  and the bonds issued may provide. Any ordinance providing for the issuance  of such bonds shall be effective without submitting the proposition to the  electors of the municipality in accordance with the requirements of  Sections 8-4-1 and 8-4-2 of the "Illinois Municipal Code", approved May 29,  1961, as heretofore and hereafter amended.(c) The bonds shall be sold at not less than par and accrued interest.(d) In case any of the members of the Department of Urban Renewal or  officers of the municipality whose signatures appear on any bonds or  coupons shall cease to be such members or officers before the delivery of  such bonds, such signatures shall, nevertheless, be valid and sufficient  for all purposes, the same as if such members or officers had remained in  office until such delivery. Any provision of any law to the contrary  notwithstanding, any bonds issued pursuant to this Act shall be fully  negotiable.(e) In any action or proceedings involving the validity or  enforceability of any such bond or the security therefor, any such bond  reciting in substance that it has been issued by the municipality, to aid  in financing any redevelopment project or conservation area pursuant to  this Act and for any purposes authorized by this Act shall be conclusively  deemed to have been issued for such redevelopment project or conservation  area and other purposes and such redevelopment project or conservation area  shall be conclusively deemed to have been planned, located and carried out  in accordance with the purposes and provisions of this Act.(f) In connection with the issuance of bonds and in order to secure the  payment of such bonds, a municipality, in addition to its other powers,  shall have power in the bond ordinance, subject to the limitations, terms  and provisions in this Act contained:(1) To pledge all or any part of its revenues (as hereinafter defined)  to which its right then exists or may thereafter come into existence.(2) To covenant against pledging all or any part of its revenues (as  hereinafter defined) or against permitting or allowing any lien on its  revenues (as hereinafter defined) or property; and to covenant as to what  other, or additional debts or obligations may be incurred by it.(3) To covenant as to the bonds to be issued and as to the issuance of  such bonds in escrow or otherwise, and as to the use and disposition of the  proceeds thereof; to provide for the replacement of lost, destroyed or  mutilated bonds; and to covenant for their redemption and to provide the  terms and conditions thereof.(4) To covenant as to the use and disposition to be made of all or any  part of its revenues (as hereinafter defined); and to create or to  authorize the creation of special funds for moneys held for operating  costs, debt service, reserves, or other purposes, and to covenant as to the  use and disposition of the moneys held in such funds.(5) To prescribe the procedure, if any, by which the terms of any  contract with bondholders may be amended or abrogated, the amount of bonds  the holders of which must consent thereto and the manner in which such  consent may be given.(6) To covenant as to the rights, liabilities, powers and duties arising  upon the breach by it of any covenant, condition, or obligations; and to  covenant and prescribe as to the events of default and terms and conditions  upon which any or all of its bonds shall become or may be declared due  before maturity, and as to the terms and conditions upon which such  declaration and its consequences may be waived.(7) To vest in a trustee or trustees or the holders of bonds or any  specified proportion of them the right to enforce the payment of the bonds  or any covenants securing or relating to the bonds; and to enforce  collection of the proceeds and revenues (as hereinafter defined) arising  from any redevelopment project or conservation area which have been pledged  to secure such bonds and to dispose of such moneys in accordance with the  agreement of the municipality with such trustee or trustees, or obligee or  obligees; to provide for the powers and duties of such trustee or trustees  and obligee or obligees and to limit the liabilities thereof; and to  provide the terms and conditions upon which such trustee or trustees, or  obligee or obligees may enforce any covenant or rights securing or relating  to the bonds.(8) To exercise all or any part or combination of the powers herein  granted; to make covenants other than in addition to the covenants herein  expressly authorized, of like or different character; to make such  covenants and to do any and all such acts and things as may be necessary or  convenient or desirable in order to secure its bonds, or, in the absolute  discretion of said municipality, as will tend to make the bonds more  marketable notwithstanding that such covenants, acts or things may not be  enumerated herein.(9) "Revenue" or "Revenues" shall mean the proceeds and revenues  (including, but not in limitation thereof, the proceeds from the sale of  real property, moneys received from the operation and management, or  demolition, of existing housing or other buildings or improvements located  on any real property in a redevelopment project or conservation area) from  any redevelopment project or conservation area which is financed in whole  or in part with the proceeds of bonds issued hereunder, together with that  amount of the funds, from whatever source derived, as is necessary to  constitute the local cash grant-in-aid for the project within the meaning  of applicable Federal law and any loan, grant or contribution, or parts  thereof, thereafter to be received from the United States of America or any  agency or instrumentality thereof, or by the contracts therefor.(g) A bondholder or trustee for a bondholder shall have the right in  addition to all other rights which may be conferred on such bondholder or  trustee, subject to any contractual restrictions binding upon such  bondholder or trustee, and to the limitations, terms and provisions in this  Act contained:(1) By mandamus, injunction, civil action or proceeding to  compel the municipality and the officers, agents, or employees thereof to  perform each and every term, provision and covenant contained in the bond  resolution and in any contract of said municipality with or for the benefit  of such bondholder or trustee, and to require the carrying out of any or  all such covenants and agreements of said municipality and the fulfillment  of all duties imposed upon said municipality by this Act.(2) By action or proceeding to enjoin any acts or  things which may be unlawful, or the violation of any of the rights of such  bondholders.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.    (Source: P.A. 86-4.)