ARTICLE VIII. GENERAL OBLIGATION BONDS (2-32-680 et seq.)

2-32-680 Issuance conditions.

   The City of Chicago, acting by its city council, may, from time to time, borrow money for proper public purposes and in evidence of such borrowing, issue its general obligation bonds payable from ad valorem taxes to be levied without limitation as to rate or amount, against all taxable property situated within the city. Such bonds may be issued without the submission of the question to their issuance to the electors of the city for their approval and the procedures for the issuance of such bonds shall be substantially as herein provided in Sections 2-32-680 through 2-32-750 of this chapter.

(Prior code § 7-58)

2-32-690 Bond ordinance – Adoption required – Public hearing.

   The city council shall adopt an ordinance (hereinafter designated the "bond ordinance") describing the public purpose or purposes to be served by such borrowing and in such bond ordinance shall make a finding and determination that such borrowing of money is necessary for the welfare of the government and affairs of the city, is for a proper public purpose or purposes and is in the public interest, which finding and determination shall be deemed conclusive.

   Prior to the adoption of any such bond ordinance, a public hearing shall be held thereon by the finance committee of the city council, provided that no approval of projects to be permanently financed thereby shall be necessary if such projects have been theretofore approved by the finance committee and the city council, and finance wholly or in part through the issuance of interim notes pursuant to Sections 2-32-900 through 2-32-940 of this chapter, pursuant to a notice given of such public hearing, such notice to refer generally to the subject matter of the ordinance and to be published at least once in a newspaper published in and having a general circulation within the City of Chicago, the date of such publication to be not less than ten days prior to the date of the public hearing.

(Prior code § 7-59)

2-32-700 Bond ordinance – Form and contents.

   The bond ordinance shall indicate the amount of money necessary to be borrowed, the amount of bonds to be issued in evidence thereof, shall fix the details of such bonds, including their date, number, denomination and maturity, which cannot exceed 40 years from the date of said bonds, and their maximum rate of interest, which shall not exceed seven percent per annum. The bonds shall be sold in such manner as may be determined in the bond ordinance. If the bonds are authorized to bear interest at the maximum rate, they shall be sold at a price of not less than par. If the bonds are authorized to bear interest at a rate less than the maximum interest rate, they may be sold at a price of less than par, but in any event at such a price that the interest cost to the city of the money received by it from the proceeds of the sale of said bonds shall not exceed the maximum interest rate per annum, computed to maturity according to standard tables of bond values.

(Prior code § 7-60)

2-32-710 Bond ordinance – Effect – Signatures.

   The bond ordinance shall authorize the execution of the bonds therein authorized on behalf of the city by signatures of the mayor and the city comptroller or by their respective proxies; shall determine whether such bonds to be issued shall be registered in the name of the owner as to principal only or whether the same shall be fully registered as to both principal and interest; shall indicate the place or places of payment of the principal and interest maturing on said bonds and shall set forth the form of bond.

   The mayor and the city comptroller may each designate another to affix their respective signatures to any written instrument which is required to be signed by the mayor or the city comptroller. In such case, each shall send to the city council written notice of the person so designated by each, such notice stating the name of the person so selected and the particular instrument which such person shall have authority to sign as proxy for the mayor and the city comptroller, respectively. A written signature of the mayor or of the city comptroller, respectively, executed by the person so designated by each, with the signature of the person so designated underneath, shall be attached to each notice. Each notice, with the signatures attached, shall be recorded in the journal of the proceedings of the city council and then filed with the city clerk. When the signature of the mayor is placed on a written instrument at the direction of the mayor in the specified manner, the instrument, in all respects, shall be as binding on the city as if signed by the mayor in person. When the comptroller's signature is so affixed to a written instrument at the comptroller's direction, the instrument, in all respects, shall be as binding on the city as if signed by the comptroller in person.

(Prior code § 7-61)

2-32-720 Bond ordinance – Provisions for payment.

   The bond ordinance shall make provision for the payment of such bonds, both principal thereof and interest thereon until maturity, by the levy of a direct annual tax upon all the taxable property within said city sufficient for such purpose. A copy of such bond ordinance, as adopted, certified to by the city clerk, shall be filed in the offices of the county clerks of all those counties within which a part of the City of Chicago may be situated. Such bond ordinance, as so filed, shall constitute the authority for the several county clerks within which a part of the City of Chicago may be situated, in and for each of the years for which taxes are levied in said bond ordinance, to extend such taxes for collection against all the taxable property situated within the City of Chicago and situated within such several counties. The taxes so levied in and by such bond ordinance shall be extended annually by the several county clerks without limitation as to rate or amount and such taxes shall be in addition to and in excess of any and all other taxes levied or authorized to be levied by the city council. Such taxes so levied shall not be subject to repeal or abatement in any manner whatsoever until such time as all the bonds authorized under the terms of said bond ordinance and issued shall have been paid in full, both principal thereof and interest thereon up to and including the date of maturity.

(Prior code § 7-62)

2-32-730 Bond ordinance – Use of proceeds.

   The provisions of any bond ordinance shall constitute an appropriation of the amounts required as therein referred to and described and upon the delivery of the bonds therein authorized, the proceeds thereof shall be used solely and only for the purpose or purposes for which the bonds were authorized. Upon the adoption of any bond ordinance by the city council and its approval by the mayor, the same shall be published by the city clerk, in pamphlet form, and shall be in full force and effect upon its publication.

(Prior code § 7-63)

2-32-740 Refund bond ordinances.

   Any bonds authorized and issued pursuant to the provisions of any bond ordinance adopted pursuant to the provisions hereof and also any bonds issued and outstanding as of July 1, 1971, which by their terms are payable from taxes unlimited as to rate or amount and levied against all the taxable property within the City of Chicago, may be refunded prior to their maturity or at their maturity and including the refunding of matured coupons evidencing interest upon such unpaid bonds. Such refunding shall be by the issuance of refunding bond to be authorized by a refunding bond ordinance which shall be adopted in the manner and subject to the terms, conditions and provisions as herein required for the issuance of bonds for public purposes. Any such refunding shall be on the basis of an exchange of par for par for bonds and matured interest coupons to be refunded, or such refunding bonds may be sold at not less than par and the proceeds thereof be used for the purpose of paying maturing principal and matured interest coupons on such outstanding bonds as they become due.

   Refunding bonds which may be issued for the purpose of refunding outstanding bonds issued prior to July 1, 1971 and including past due coupons pertaining to bonds issued prior to July 1, 1971 shall not be deemed an indebtedness incurred by the City of Chicago without a referendum in accordance with the provisions of Section 6(k) of Article VII of the Constitution of Illinois generally effective July 1, 1971.

(Prior code § 7-64)

2-32-750 Bond issuance procedures – Statutory authority.

   Pursuant to the authority granted by Section 6 of Article VII of the Constitution of Illinois 1970, the procedures hereby established for the issuance of general obligation bonds, as herein provided for, shall be controlling and shall be complied with by the city council in the borrowing of money through the issuance of general obligation bonds of the city, notwithstanding anything to the contrary contained in the provisions of the Illinois Municipal Code of 1961, and all acts amendatory thereof and supplementary thereto and any other law or laws of the State of Illinois.

(Prior code § 7-65)