2-32-870 Interim notes – Terms and conditions.

   The interim note, or notes, shall be of the form and content as provided in the basic agreement, be dated as of the date of their execution and delivery, shall be expressed to mature on a definite payment date, which date shall be the same for all interim notes issued for a particular project and not to exceed five years from the date that the first interim note with respect to a project has been issued, and interest thereon at the rates of interest therein agreed upon shall be payable at such time or times as therein agreed upon. The interim notes shall be payable by the city and without notice to the holder at any time before maturity and at any financial institution which shall be designated by the city comptroller.

   The interim note, or notes, to be issued shall be made payable in the manner as provided in the basic agreement and shall contain such terms and conditions as shall be provided in such basic agreement, and such interim note, or notes, shall be limited obligations of the city, payable as to both principal thereof and interest thereon, only from the proceeds to be received from the sale of water revenue bonds of the city to be issued pursuant to the procedures provided for in Sections 2-32-770 through 2-32-840, inclusive, hereof, when and as such bonds are authorized and issued for the permanent financing of such extensions, improvements, or both or from other moneys legally available for such purpose in the water fund of the city.

   The city and the holder, or holders, of the interim note, or notes, may mutually agree that the time of payment of any interim note, or notes, may be extended for a period of not to exceed two years beyond its stated maturity date, and evidence of such extension shall be noted on the face of such interim note so extended, together with the signatures of the mayor and city comptroller, and to be attested by the city clerk, and also to be signed by an authorized representative of the other parties to the basic agreement. Such basic agreement shall further indicate that the payment of principal of and interest on such interim note, or notes, for which permanent financing is being provided at that time, which must include all interim notes issued for a particular project if any are to be paid, but need not include all interim notes issued to provide temporary borrowing for other projects, shall be made simultaneously with the delivery to the purchaser of the water revenue bonds to be authorized and issued by the city.

(Prior code § 7-77)

2-32-880 Interim notes – Revenue for repayment.

   Whenever interim notes are issued pursuant to the provisions of the basic water agreement, the rates charged by the city for water used shall be sufficient to provide, at the maturity date of such notes, revenues from the operation of the water system in an amount and at the times which will permit the authorization and issuance of water revenue bonds on a parity with the water revenue bonds then outstanding under this chapter in order to provide permanent financing for the projects authorized in and identified by the interim note or notes or will provide revenues sufficient to produce moneys legally available in the water fund of the city to pay the principal of and interest on such interim notes as the principal and interest become due.

(Prior code § 7-78)

2-32-890 Interim note issuance – 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 interim notes payable from the proceeds of the sale of water revenue bonds to be subsequently authorized and issued to pay the cost of making such extensions, improvements, or both, for which said interim notes were furnished or from other moneys legally available in the water fund of the city, as herein provided for, shall be controlling and shall be complied with by the city council in borrowing of money through the issuance of such interim notes 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 laws of the State of Illinois.

(Prior code § 7-79)

ARTICLE X. INTERIM NOTES (2-32-900 et seq.)