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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.)
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)
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)
From time to time and as funds may temporarily be needed by the city for the payment of all or a part of the estimated cost and expenses incident to the public improvement, the city council shall adopt an ordinance to be designated "Interim Note Ordinance, ________ Project" which ordinance shall authorize the temporary borrowing of funds under such conditions, as may be provided for in the basic agreement above referred to in Section 2-32-900 hereof and which said interim note ordinance shall describe the particular public improvement for which funds are temporarily needed, shall designate the name by which such project shall be identified, its location and a general description of the public improvement, shall indicate the total estimated cost of such project, which estimated cost may include the amount of the estimated interest which will accrue on the amount to be borrowed during the estimated period of time to complete the project, shall make an appropriation of sufficient funds of the city to pay such estimated costs, shall indicate the maximum amount of such temporary borrowing for such designated project, and shall indicate the maximum rate of interest to be paid for such temporary borrowing, such interest to be payable at the time and the manner as may be provided in the basic agreement. Provision may be made for an adjustable rate of interest but such rate or rates shall not exceed the rate of ten percent per annum. Said interim note ordinance shall further state and describe the use or uses to be made of such public improvement and shall make a determination on behalf of the city that the making of such public improvement serves a public purpose or purposes for which the city may subsequently issue or authorize and issue its general obligation full faith and credit bonds, as authorized by the provisions of Sections 2-32-680 through 2-32-750 of the Municipal Code hereinabove referred to. Said interim note ordinance shall also authorize and direct the mayor of the city and the city comptroller to execute on behalf of the city such interim note as may be provided for in the basic agreement, such interim note to be in substantially the following form:
(Form of Interim Note)
State of Illinois
County of Cook
City of Chicago
General Obligation Interim Note
Project
Number________ $________
The City of Chicago, Illinois (herein called "City"), a home rule unit and a body politic and corporate of the State of Illinois, for value received hereby promises to pay to the order of ________, as Agent under an Interim Note Financing Agreement dated ________ (which as the same may from time to time be amended is herein called the "Interim Note Financing Agreement"), on the maturity date of this Interim Note, the principal sum hereof together with interest hereon at the rate or rates to be computed as hereinafter provided for, which interest shall be payable on the first day of ________ following the date of this Note and semi-annually thereafter on each ________ 1 and ________ 1 until this Note is paid. Payment of such interest shall be evidenced by notation on the back hereof to indicate the date and the amount of interest so paid and signed by an authorized representative of the bank acting as agent for the bank or banks who are parties to the Interim Note Financing Agreement hereinabove referred to.
This Interim Note shall bear interest from the date of issue until paid at the rate of ________ percent per annum and which interest rate shall be adjusted from time to time and which rate shall be the lesser of ten percent per annum or a rate of interest equal to 60 percent of the rate announced from time to time by the Agent for 90-day unsecured loans made at its banking house in Chicago, Illinois, to commercial customers of the highest credit rating, such rate being known as the "Agent's Prime Rate". Within 3 business days after any change in its Prime Rate the Agent shall notify the City of such change.
This Interim Note shall be in the principal amount and shall be dated and become due on the dates as follows:
Principal Sum | Date of Issue | Date of Maturity |
Both principal of and interest on this Interim Note will be paid in lawful money of the United States of America at, or at such other financial institution as may be designated by the City Comptroller.
This Interim Note evidences indebtedness incurred under the terms of the Interim Note Financing Agreement, hereinabove referred to, to which reference is made for a statement of the terms and conditions under which this Interim Note may be paid in whole or in part at any time and without premium or penalty and without notice prior to its maturity date.
This Interim Note shall constitute a direct and general obligation of the City and a debt of the City, and the full faith and credit of the City are hereby irrevocably pledged for the punctual payment of the principal of and interest on this Interim Note according to its terms.
No official, officer, agent or employee of the City shall be liable personally on this Interim Note by reason of the issuance hereof.
It is hereby certified, recited and declared that all conditions, acts and things required by the Constitution and statutes of the State of Illinois, and including the duly enacted Ordinances of the City Council of the City of Chicago, including particularly the provisions of Sections 2-32-900 through 2-32-940 of the Municipal Code of the City of Chicago, as amended, to exist, to have happened and to have been performed precedent to and in the issuance of this Interim Note, do exist, have happened and have been performed in due time, form and manner as required by law, and that the issuance of this Interim Note does not violate any constitutional or statutory limitation or any limitation imposed by any existing Ordinance heretofore adopted by the said City Council of the City of Chicago, Illinois.
In Witness Whereof, the City of Chicago, Illinois, by its City Council, has caused this Interim Note to be signed by its mayor and by the Comptroller of said City, to be attested by the City Clerk of said City and the corporate seal of said City to be affixed hereto, all as of the date above specified.
City of Chicago, Illinois
By ________________
Mayor
Comptroller,
City of Chicago
Attest:
________________
City Clerk
(City Seal)
(Back of Interim Note)
Record of Payments Made of Principal or
Interest Accruing on this Interim Note
Date of Payment | Amount of Principal Paid | Amount of Interest Paid | Signature of Representative of Agent Bank |
____ | ____ | ____ | ____ |
____ | ____ | ____ | ____ |
____ | ____ | ____ | ____ |
and which said interim note shall be attested by the city clerk and the seal of the city shall be affixed thereto.
Prior to the adoption of any such interim note ordinance, a public hearing shall be held thereon by the finance committee of the city council pursuant to a notice given to 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.
Upon the adoption of any interim note 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 § 7-82)
That the interim note, or notes, 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 agreed rate of interest shall be payable at the time or times as may be provided for in the basic agreement. 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, including the place where delivery will be made to a purchaser of the general obligation full faith and credit bonds to be issued pursuant to the provisions of Sections 2-32-680 through 2-32-750 of the Municipal Code, above referred to, or as such bonds may be issued in such manner as may then be provided by law.
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 interim note ordinance authorizing the temporary borrowing, and such interim note, or notes, shall be an obligation of the city for which the full faith and credit of the city shall be pledged for the payment thereof. The city and the holder, or holders, of its 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 be noted on the face of such interim note, or notes, so extended by the signatures of the mayor, of the 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 ordinance shall further provide that the payment of principal and interest on such interim note, or notes, shall be made simultaneously with the delivery to the purchaser of the general obligation full faith and credit bonds previously authorized or to be authorized and issued by the city. If, for any reason, sufficient funds are not available from the proceeds of bonds to be issued, the city will take such action as may be necessary, including the levy of taxes for such purpose, to provide sufficient funds to pay in full such interim note, or notes, and interest thereon to the date of its payment; that the execution of any such interim notes as herein provided shall not cause any officer signing the same on behalf of the city to be personally liable by reason of such signing and the issuance thereof.
(Prior code § 7-83)
(Prior code § 7-84)
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