2-32-860 Interim financing – Approval agreement and procedures.

   The city council shall adopt an ordinance approving an interim note financing agreement (hereafter referred to as the "basic agreement") providing for the temporary borrowing of funds in advance of permanent financing to permit the interim financing of estimated costs and expenses necessary and incident to the making of extensions, improvements or both, to the Chicago Water System, which basic agreement shall be negotiated by the City of Chicago acting by and through its mayor and city comptroller prior to its presentation to the city council. After the form of such basic agreement has been submitted to and approved by the city council, the mayor and the city comptroller shall be authorized to execute and sign such basic agreement on behalf of the city and the same shall be attested by the city clerk.

   Such basic agreement shall provide that no interim note or notes shall be issued thereunder to provide temporary borrowing for extensions, improvements, or both, unless the city council shall have approved the project and the estimated cost thereof for which said note, or notes, are to be issued, by ordinance (the "project ordinance") after a public hearing thereon by the finance committee of the city council and unless there has been a sufficient appropriation of funds by the city to permit the expenditure of the interim note proceeds on the project. Prior to the adoption of any such project ordinance, which ordinance shall contain a description of the project or projects to be temporarily financed and the estimated costs thereof, a public hearing shall be held thereon by the finance committee of the city council, pursuant to a notice given of such public hearing, such notice to refer generally to the project or projects to be temporarily financed by the issuance of interim notes 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. It shall not be necessary that the project ordinance refer to or incorporate therein by reference detailed plans and specifications of such extensions, improvements, or both, or specifically describe the projects to be temporarily financed by the issuance of such interim note, or notes.

   Each such interim note or notes shall be accompanied by a certificate identifying by a general description the approved project, representing that the proceeds of such interim note or notes will be used solely for such project, that such project and the estimated cost thereof have been approved by the city council, by ordinance, after a public hearing held thereon by the finance committee of said city council; and that there has been sufficient appropriation of funds by the city to permit the expenditure of the interim note proceeds on the project. Said project ordinance shall further make a determination on behalf of the city that the construction of such extensions, improvements, or both, serves a public purpose for which the city may subsequently authorize and issue its water revenue bonds, as authorized by the provisions of Sections 2-32-770 through 2-32-840, inclusive, hereof, and for which the city may subsequently authorize the expenditure of moneys legally available for such purpose in the water fund of the city.

   Said basic agreement shall also authorize execution from time to time of the interim note or notes therein authorized on behalf of the city by being signed by the mayor and by the city comptroller and to be attested by the city clerk, and by the respective proxies of said mayor and city comptroller, such interim note to be in such form as may be provided for in the basic agreement.

   The mayor and the city comptroller may each designate another to act as their respective proxies and to affix their respective signatures to any such interim note, and 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 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 underneath, shall be attached to each notice. Each notice, with the signature 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 an interim note at the direction of the mayor in the specified manner, the note, 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 an interim note at the comptroller's direction, the note, in all respects, shall be as binding on the city as if signed by the comptroller in person.

   In case any official whose signature appears on the specified interim note ceases to hold his office before the delivery of the interim note to the purchaser, his signature nevertheless shall be valid and sufficient for all purposes, to the same effect as if he had remained in office until the delivery of the interim note.

   The execution of any such interim notes as herein provided shall not cause any official signing the same on behalf of the city to be personally liable by reason of such signing and issuance thereof.

(Prior code § 7-76)

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.)

2-32-900 Basic agreement – Negotiation.

   That interim note financing agreement (each of which are herein referred to as "basic agreement") providing for the temporary borrowing of funds in advance of permanent financing to permit the interim financing of estimated cost and expenses and incident to the making of public improvements in and for the city be negotiated by the City of Chicago acting by and through its mayor and city comptroller, the form of such basic agreement to be hereafter presented to the city council for its approval and authorization to execute the same on behalf of the city.

(Prior code § 7-80)

2-32-910 Basic agreement – Form.

   That after the form of such basic agreement has been submitted to and approved by the city council, the mayor of the city and the city comptroller be and they are hereby ordered and directed to execute and sign such basic agreement on behalf of the city, the same shall be attested by the city clerk and the corporate seal of the city shall be affixed thereto.

(Prior code § 7-81)