65 ILCS 5/11-119.2-6
2021 Illinois Compiled Statutes|Chapter 65 - MUNICIPALITIES|65 ILCS 5/ - Illinois Municipal Code.|Article 11 - Corporate Powers and Functions

 (from Ch. 24, par. 11-119.2-6)Sec. 11-119.2-6.     A.     A municipal natural gas agency may from time to time issue  its bonds in such principal amounts as the municipal natural gas agency shall  deem necessary to provide sufficient funds to carry out any of its corporate  purposes and powers, including, without limitation, the acquisition, construction  or termination of any project to be owned or leased, as lessor or lessee,  by the municipal natural gas agency, or the acquisition of any interest therein  or any right to the products or services thereof, the funding or refunding  of the principal of, redemption premium, if any, and interest on, any bonds  issued by it whether or not such bonds or interest to be funded or refunded  have or have not become due, the payment of engineering, legal and other  expenses, together with interest to a date one year subsequent to the estimated  date of completion of the project, the establishment or increase of reserves  to secure or to pay such bonds or interest thereon, the providing of working  capital and the payment of all other costs or expenses of the municipal  natural gas agency incident to and necessary or convenient to carry out its corporate  purposes and powers.B. Every issue of bonds of such municipal natural gas agency shall be payable  out of the revenues or funds of such municipal natural gas agency, subject to  any agreements with the holders of particular bonds pledging any particular  revenues or funds.  A municipal natural gas agency may issue such types of bonds  as it may determine, including bonds as to which the principal and interest  are payable exclusively from the revenues from one or more projects, or  from an interest therein or a right to the products and services thereof,  or from one or more revenue producing contracts made by the municipal natural gas  agency, or its revenues generally.  Any such bonds may be additionally secured  by a pledge of any grant, subsidy, or contribution from  any source or a pledge of any income or revenues, funds, or moneys of the  municipal natural gas agency from any source whatsoever.C. All bonds of a municipal natural gas agency shall have all the qualities  of negotiable instruments under the laws of this State.D. Bonds of a municipal natural gas agency shall be authorized by ordinance  of its Board of Directors and may be issued under such ordinance or under  a trust indenture or other security agreement, in one or more series, and  shall bear such date or dates, mature at such time or times within the estimated  period of usefulness of the project involved and in any event not more than  40 years from the date thereof, bear interest at such rate or rates without  regard to any limitation in any other law, be in such denominations, be  in such form, either coupon or registered, carry such conversion, registration,  and exchange privileges, have such rank or priority, be executed in such  manner, be payable in such medium of payment at such place or places within  or without the State of Illinois, be subject to such terms of redemption  with or without premium, and contain or be subject to such other terms as  the ordinance, trust indenture, or other security agreement may provide,  and shall not be restricted by the provisions of any other law limiting  the amounts, maturities, interest rates, or other terms of obligations of  public agencies or private parties.  The bonds shall be sold in such manner  and at such price as the Board of Directors shall determine, at private or public sale.E. Bonds of a municipal natural gas agency may be issued and delivered notwithstanding  that one or more of the officers executing them shall have ceased to hold  office at the time the bonds are actually delivered.F. Pending preparation of definitive bonds a municipal natural gas agency may  issue temporary bonds which shall be exchanged for the definitive bonds.G. Bonds of a municipal natural gas agency may be issued under the provisions  of this Division without obtaining the consent of any department, division,  commission, board, bureau, or agency of the State of Illinois and without  any other proceeding or the happening of any other condition or occurrence  except as specifically required by this Division.H. The ordinance, trust indenture, or other security agreement under which  any bonds are issued shall constitute a contract with the holders of the  bonds and may contain provisions, among others, prescribing:(1) the terms and provisions of the bonds;(2) the mortgage or pledge of and the grant of a security interest in  any real or personal property and all or any part of the revenue from any  project or any revenue producing contract made by the municipal natural gas agency  to secure the payment of bonds, subject to any agreements with the holders  of bonds which might then exist;(3) the custody, collection, securing, investments, and payment of any  revenues, assets, money, funds, or property with respect to which the municipal  natural gas agency may have any rights or interest;(4) the rates or charges for natural gas or other services rendered  by the municipal natural gas agency, the amount to be raised by the rates or charges,  and the use and disposition of any or all revenue;(5) the creation of reserves or sinking funds and the regulation and disposition  thereof;(6) the purposes to which the proceeds from the sale of any bonds then  or thereafter to be issued may be applied, and the pledge of revenues to  secure the payment of the bonds;(7) the limitations on the issuance of any additional bonds, the terms  upon which additional bonds may be issued and secured, and the refunding  of outstanding bonds;(8) the rank or priority of any bonds with respect to any lien or security;(9) the creation of special funds or moneys to be held in trust or otherwise  for operational expenses, payment, or redemption of bonds, reserves or other  purposes, and the use and disposition of moneys held in such funds;(10) the procedure by which the terms of any contract with or for the  benefit of the holders of bonds may be amended or revised, the amount of  bonds the holders of which must consent thereto, and the manner in which  consent may be given;(11) the definition of the acts or omissions to act which shall constitute  a default in the duties of the municipal natural gas agency to holders of its  bonds, and the rights and remedies of the holders in the event of default,  including, if the municipal natural gas agency so determines, the right to accelerate  the due date of the bonds or the right to appoint a receiver or receivers  of the property or revenues subject to the lien of the ordinance, trust  indenture, or other security agreement;(12) any other or additional agreements with or for the benefit of the  holders of bonds or any covenants or restrictions necessary or desirable  to safeguard the interests of the holders;(13) the custody of its properties or investments, the safekeeping thereof,  the insurance to be carried thereon, and the use and disposition of insurance proceeds;(14) the vesting in a trustee or trustees, within or without the State  of Illinois, of such properties, rights, powers and duties in trust as the  municipal natural gas agency may determine; or the limiting or abrogating of the  rights of the holders of any bonds to appoint a trustee, or the limiting  of the rights, powers and duties of such trustee; or(15) the appointment of and the establishment of the duties and obligations  of any paying agent or other fiduciary within or without the State of Illinois.I. For the security of bonds issued or to be issued by a municipal natural gas  agency, the municipal natural gas agency may mortgage or execute deeds of trust  of the whole or any part of its property and franchises.  Any pledge of  revenues, securities, contract rights or other personal property made by  a municipal natural gas agency pursuant to this Division shall be valid and binding  from the date the pledge is made.  The revenues, securities, contract rights  or other personal property so pledged and then held or thereafter received  by the municipal natural gas agency or any fiduciary shall immediately be subject  to the lien of the pledge without any physical delivery thereof or further  act, and the lien of the pledge shall be valid and binding as against all  parties having claims of any kind in tort, contract, or otherwise against  the municipal natural gas agency without regard to whether such parties have notice  thereto.  The ordinance, trust indenture, security agreement or other instrument  by which a pledge is created shall be recorded in the county in which the  principal office is located in the manner provided by law.J. Neither the officials, the directors, nor the members of a municipal  natural gas agency nor any person executing bonds shall be liable personally on  the bonds or be subject to any personal liability or accountability by reason  of the issuance thereof.  A municipal natural gas agency shall have power to indemnify  and to purchase and maintain insurance on behalf of any director, officer,  employee, or agent of the municipal natural gas agency, in connection with any  threatened, pending, or completed action, suit, or proceeding.K. A municipal natural gas agency shall have power to purchase out of any funds  available therefor, bonds, and to hold, pledge, cancel, or retire the bonds  and coupons prior to maturity, subject to and in accordance with any agreements  with the holders.L. The principal of and interest upon any bonds issued by a municipal  natural gas agency shall be payable solely from the revenues or funds pledged or  available for their payment as authorized in this Division.  Each bond shall  contain a statement that it constitutes an obligation of the municipal natural gas  agency issuing the bond, that the principal thereof and interest thereon  are payable solely from revenues or funds of such municipal natural gas agency  and that neither the State of Illinois nor any political subdivision thereof,  except the issuer, nor any municipality which is a member of the municipal  power agency, is obligated to pay the principal or interest on the bonds  and that neither the faith and credit nor the taxing power of the State  of Illinois or any such political subdivision thereof or of any such municipality  is pledged to the payment of the principal of or the interest on the bonds.    (Source: P.A. 84-1221.)