2023 Illinois Compiled Statutes › Chapter 70 - SPECIAL DISTRICTS › 70 ILCS 1205/ - Park District Code. › Article 6 - General Indebtedness

(70 ILCS 1205/Art. 6 heading)
ARTICLE SIX.  
		GENERAL INDEBTEDNESS
(70 ILCS 1205/6-1) (from Ch. 105, par. 6-1)
Sec. 6-1. 
		
		Neither this code nor anything contained herein shall be deemed
to preclude any park district from exercising the powers available to park
districts for issuance of refunding bonds as set forth in an act entitled
"An Act authorizing any park district to issue refunding bonds and to
provide for the levy of taxes for the payment thereof", approved August 15,
1941. The power to issue such bonds and the method of procedure therefor
described in said Act is hereby specifically reserved to and granted all
park districts.
(Source: Laws 1951, p. 113.)
(70 ILCS 1205/6-2) (from Ch. 105, par. 6-2)
Sec. 6-2. 
For the payment of land condemned or purchased for parks
or boulevards, for the building, maintaining, improving and protecting
of the same and for the payment of the expenses incident thereto, or for
the acquisition of real estate and lands to be used as a site for an
armory, or for the refunding of its bonds which are payable solely from
the revenues derived from the operation of any of its facilities, any
park district is authorized to issue the bonds or notes of
such park district and pledge its property and credit therefor to an
amount including existing principal indebtedness of such district so that the
aggregate principal indebtedness of such district does not exceed 2.875% of the
value of the taxable property therein, to be ascertained by the last
assessment for state and county taxes previous to the issue from time to
time of such bonds or notes, unless a petition, signed by voters in number
equal to not less than 2% of the voters of the district, who voted at the
last general election in the district, asking that the authorized aggregate
principal indebtedness of the district be increased to not more than 5.75%
of the value of the taxable property therein, is presented to the board and
such increase is approved by the voters of the district at a referendum
held on the question, in which case such aggregate principal indebtedness
may not exceed 5.75% of the value of the taxable property in the district.
Notice of the referendum shall be given and the referendum conducted in the
manner provided by the general election law.  Bonds for airport purposes
issued by a park district under Section 9-2b, up to $15,000,000 in bonds issued by the Carol Stream Park District approved by referendum at the February 2, 2010 general primary election, and up to $13,000,000 in bonds issued by the Midlothian Park District approved by referendum at the March 20, 2018 general primary election are not subject to the
percentage limitations imposed by, and shall not be considered
as part of the existing principal indebtedness of that district for the
purposes of, this Section or any other applicable statutory debt limitation.
(Source: P.A. 100-1125, eff. 11-28-18.)
(70 ILCS 1205/6-3) (from Ch. 105, par. 6-3)
Sec. 6-3. 
		
		The question as to the increase of the authorized aggregate
principal indebtedness of a park district under Section 6-2 hereof shall be
submitted to the voters of the district at the next regular election in
accordance with the general election law.  The proposition as
to the increase of the authorized aggregate principal indebtedness
shall be in substantially the following form:
--------------------------------------------------------------
Shall the authorized aggregate
principal indebtedness of the....              YES
Park District (naming it) be increased   ---------------------
to not more than.... per centum of the         NO
value of the taxable property therein?
--------------------------------------------------------------
If a majority of the votes cast upon the proposition are in the
affirmative, the increase of the authorized aggregate principal
indebtedness shall be deemed approved.
(Source: P.A. 86-494.)
(70 ILCS 1205/6-4) (from Ch. 105, par. 6-4)
Sec. 6-4. The issue of bonds or notes by any park district shall be
authorized by ordinance, and a copy of that ordinance properly certified
by the secretary shall be filed in the office of the clerk in each of
the counties wherein such district lies.  Except as otherwise provided
in this Section, bonds and notes the aggregate outstanding unpaid
principal balance of which exceeds 0.575% of the total assessed valuation
of all taxable property in the district may not be issued by any park
district, until the proposition to issue the same has been certified by the
secretary to the proper election officials who shall submit the proposition
at an election in accordance with the general election law. Notice of the
referendum shall be given and the referendum shall be conducted in the
manner provided by the general election law.
Submission of any proposition of issuing bonds or notes shall be
authorized by resolution to be adopted by the board which shall designate the
election at which the proposition is to be submitted and designate the amount
of bonds and purpose for which the bonds are to be issued.
Any proposition to issue bonds shall be in substantially the following form:
--------------------------------------------------------------
Shall bonds or notes of the
..... Park District (name it) to     YES
the amount of..... Dollars
($.....) be issued for the        ----------------------------
purpose of.....?  (Here insert
any one or more of the               NO
purposes authorized in
Section 6-2 hereof)
--------------------------------------------------------------
This Section shall not be construed to require a referendum for bonds
issued under Section 9-2b nor for bonds to refund any maturing bond
issues as provided in the Park District Refunding Bond Act, or to refund any judgment indebtedness including
any unpaid public benefits and amounts assessed against any park district,
whether due or not due under Division 2 of Article 9 of the Illinois
Municipal Code, but bonds may be issued for such purposes without referendum.
Bonds heretofore or hereafter issued and outstanding that are approved by
referendum, refunding bonds issued under the Park District Refunding Bond Act (70 ILCS 1270/) that refund or continue to refund bonds approved by referendum, bonds issued under this Section that have been paid in full or for
which
provisions for payment have been made by an irrevocable deposit of funds in an
amount
sufficient to pay the principal and interest on those bonds to their respective
maturity
date, non-referendum bonds  issued under any other provision of this Act, promissory notes or similar debt instruments issued under Section 6-7, and
bonded
indebtedness assumed from another park district do not limit in any way the
right of a
park district to issue non-referendum bonds in accordance with this Section.
This Section shall not be construed to permit issuance of bonds for the
purpose of refunding revenue bonds as provided in Section 6-2 until the
proposition to issue the same has been submitted as herein provided at an
election in accordance with the general election law.
(Source: P.A. 98-906, eff. 8-15-14.)
(70 ILCS 1205/6-5) (from Ch. 105, par. 6-5)
Sec. 6-5. 
Such bonds or notes of a park district shall be issued when
authorized under
Sections 6-2, 6-3 or 6-4, hereof in the name of the district, signed by the
president and secretary, and countersigned by the treasurer, with the seal
of said district affixed.  They shall bear interest at a rate not to exceed
the maximum rate authorized by the Bond Authorization Act, as amended at the
time of the making of the contract,
payable semiannually and the principal shall be
payable at such time and place as may be determined by the board, not
exceeding 25 years from their date.  The board of such district may sell
such bonds in any manner it deems for the best interests of the district,
at not less than par, and the proceeds thereof shall be used exclusively
for the purpose in this code authorized.
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. 96-321, eff. 8-11-09.)
(70 ILCS 1205/6-6) (from Ch. 105, par. 6-6)
Sec. 6-6. 
		
		All park districts, at or before the time of issuance of bonds or
notes,
shall provide for the levy of taxes, in addition to all other taxes,
sufficient to pay the principal of and interest upon said bonds or notes as the
same
becomes due, and shall file a certified copy of the ordinance or ordinances
providing for the levy of said taxes with the county clerk of the county in
which the district is located.  Where said district lies in more than one
county, said tax shall be certified, apportioned and levied as provided in
Section 5-4 hereof.
(Source: P.A. 79-434.)
(70 ILCS 1205/6-7)
Sec. 6-7. Borrowing from financial institutions. The board may borrow money for any corporate purpose from any bank or other financial institution provided such money shall be repaid within 2 years from the time the money is borrowed. The president and secretary shall execute a promissory note or similar debt instrument to evidence the indebtedness incurred by the borrowing. The obligation to make the payments due under the promissory note or other debt instrument shall be a lawful direct general obligation of the park district payable from the general funds of that district and such other sources of payment as are otherwise lawfully available. The promissory note or other debt instrument shall be authorized by an ordinance passed by the board and shall be valid whether or not an appropriation with respect to that ordinance is included in any annual or supplemental appropriation adopted by the board. The indebtedness incurred under this Section, when aggregated with the existing indebtedness of the park district, may not exceed any debt limitation otherwise provided for by law. "Financial institution" means any bank subject to the Illinois Banking Act, any savings and loan association subject to the Illinois Savings and Loan Act of 1985, any savings bank subject to the Savings Bank Act, any credit union subject to the Illinois Credit Union Act, and any federally chartered commercial bank, savings and loan association, savings bank, or credit union organized and operated in this State pursuant to the laws of the United States.
(Source: P.A. 98-906, eff. 8-15-14.)