2-32-980 Ordinance authorizing bonds – Contents – Bond specifications.

   Any ordinance authorizing the issuance of bonds authorized under this ordinance shall require the submission of a program for residential development. The exercise of any or all powers granted by this ordinance may be authorized and the bonds may be authorized to be issued under this ordinance for the purposes set forth in this ordinance, by ordinance of the governing body of the municipality, and, provided that each such ordinance shall have been considered by the finance committee of the governing body of the municipality prior to its final adoption, shall take effect immediately upon adoption. Any such ordinance shall set forth a legislative finding and declaration (i) of the public purpose therefor and (ii) that such ordinance is being enacted pursuant to the powers granted by this ordinance.

   The bonds shall bear interest as such rate or rates, may be payable at such times, may be in one or more series, may bear such date or dates, may mature at such time or times not exceeding 40 years from their respective dates, may be payable in such medium of payment at such place or places, may carry such registration privileges, may be subject to such terms of redemption at such premiums, may be executed in such manner, may contain such terms, covenants and conditions, and may be in such form, either coupon or registered, as such ordinance may provide. The bonds may be sold at public or private sale in such manner and upon such terms as may be provided in such ordinance. Pending the preparation of definitive bonds, interim receipts or certificates in such form and with such provisions as may be provided in such ordinance, may be issued to the purchaser or purchasers of bonds sold pursuant to this ordinance. The bonds and interim receipts or certificates shall be deemed to be securities and negotiable instruments within the meaning and for all purposes of the Uniform Commercial Code.

(Prior code § 7-88)

2-32-990 Covenants in bonds.

   Any ordinance authorizing the issuance of bonds under this ordinance may contain covenants as to (a) the use and disposition of the revenues and receipts from any residential development or home mortgages for which the bonds are to be issued, including the creation and maintenance of reserves; (b) the issuance of other or additional bonds relating to any residential development or any rehabilitation, improvements, renovations, enlargements or additions thereto; (c) the maintenance and repair of such residential development or any homes; (d) the insurance to be carried on any residential development, home, home mortgage or bonds and the use and disposition of insurance moneys; (e) the appointment of one or more banks or trust companies within or outside the State of Illinois, having the necessary trust powers, as trustee and/or custodian for the benefit of the bondholders, paying agent or bond registrar; (f) the investment of any funds held by such trustee or custodian; (g) the maximum interest rate payable on any home mortgage; and (h) the terms and conditions upon which the holders of the bonds or any portion thereof or any trustees therefor, are entitled to the appointment of a receiver by a court of competent jurisdiction, and said terms and conditions may provide that the receiver may enter and take possession of the residential development or home mortgages, or any part thereto, and maintain, lease, sell or otherwise dispose of such development or mortgages, prescribe rentals or other payments and collect, receive and apply all income and revenues thereafter arising therefrom. Any ordinance authorizing the issuance of bonds under this ordinance may provide that the principal of and interest on any bonds issued under this ordinance shall be secured by a mortgage, pledge, security interest, insurance agreement or indenture of trust covering such residential development or home mortgages for which the bonds are issued and may include any improvements or extensions thereafter made. Such mortgage, pledge, security interest, insurance agreement or indenture of trust may contain such covenants and agreements to properly safeguard the bonds as may be provided for in the ordinance authorizing such bonds and shall be executed in the manner as may be provided for in the ordinance. The provisions of this ordinance and any such ordinance and any such mortgage, pledge, security interest or indenture of test shall constitute a contract with the holder or holders of the bonds and continue in effect until the principal of, the interest on, and the redemption premiums, if any, on the bonds so issued have been fully paid or provision made therefor, and the duties of the municipality and its corporate authorities and officers under this ordinance and any such ordinance and any such mortgage, pledge, security interest or indenture of trust shall be enforceable as provided therein by any bondholder by mandamus, foreclosure of any such mortgage, pledge, security interest or indenture of trust or other appropriate suit, action or proceeding in any court of competent jurisdiction; provided the ordinance or any mortgage, pledge, security interest or indenture of trust under which the bonds are issued may provide that all such remedies and rights to enforcement may be vested in a trustee (with full power of appointment) for the benefit of all the bondholders which trustee shall be subject to the control of such number of holders or owners of any outstanding bonds as provided therein.

(Prior code § 7-89)

2-32-1000 Signature of bonds – Validity of proceedings.

   The bonds shall bear the manual or facsimile signatures of such officers of the municipality as may be designated in the ordinance authorizing such bonds and such signatures shall be the valid and binding signatures of the officer of the municipality, notwithstanding that before the delivery thereof and payment therefor any or all of the persons whose signatures appear thereon have ceased to be officers of the municipality issuing such bonds. The validity of the bonds is not dependent on nor affected by the validity or regularity of any proceedings relating to the residential development or home mortgages for which the bonds are issued. The ordinance authorizing the bonds may provide that the bonds shall contain a recital that they are issued pursuant to this ordinance, which recital shall be conclusive evidence of their validity and of the regularity of their issuance.

(Prior code § 7-90)

2-32-1010 Securing of bonds.

   Bonds issued under this ordinance may be secured by a pledge of or lien upon the revenues and receipts derived from the residential development or home mortgages or from any notes or other obligations of lending institutions with respect to which the bonds have been issued, and the governing body may provide in the ordinance authorizing such bonds for the issuance of additional bonds to be equally and ratably secured by a lien upon such revenues and receipts or may provide that the lien upon such revenues and receipts is subordinate.

(Prior code § 7-91)

2-32-1020 Liability limitations for bonds.

   All bonds issued under and pursuant to this ordinance shall be limited obligations of the municipality payable solely out of the revenues and receipts derived from the residential development or home mortgages or from any notes or other obligations of lending institutions with respect to which such bonds are issued. No holder of any bonds issued under this ordinance has the right to compel any exercise of taxing power of the municipality to pay the bonds, the interest or redemption premium, if any, thereon, and the bonds shall not constitute an indebtedness of the municipality or a loan of credit thereof within the meaning of any constitutional or statutory provision, nor shall the bonds be construed to create any moral obligation on the part of the municipality or any political subdivision thereof with respect to the payment of such bonds. It shall be plainly stated on the face of each bond that it has been issued under the provisions of this ordinance and that it does not constitute an indebtedness of the municipality or a loan of credit thereof within the meaning of any constitutional or statutory provisions.

(Prior code § 7-92)

2-32-1030 Investment of funds.

   The municipality, or any trustee or custodian on behalf of the municipality, may invest any funds held by it as provided in the ordinance authorizing the issuance of the bonds.

(Prior code § 7-93)

2-32-1040 Public building regulations waived.

   The acquisition, construction or rehabilitation of a private residential development or a home shall not be subject to any requirements relating to public buildings, structures, grounds, works or improvements imposed by the Illinois Compiled Statutes or any other similar requirements which may be lawfully waived by this section and any requirement of competitive bidding or restriction imposed on the procedure for award of contracts for such purpose or the lease, sale or other disposition of property of the municipality is not applicable to any action taken under authority of this ordinance.

(Prior code § 7-94; Amend Coun. J. 3-31-04, p. 20916, § 4.4)