Under a new law (P.A. 098-0906), Illinois park districts may now accept short term loans directly from banks, savings and loan associations and credit unions. The Act grants authority for park districts to borrow money from those financial institutions for any corporate purpose through the issuance of a promissory note or similar debt instrument. The loan must be repaid within two (2) years from the time the money is borrowed. The loan must be authorized by an ordinance adopted by the board and signed by the president and secretary. Repayment of the loan is valid whether or not the loan payments were included in the Park district’s appropriation ordinance. Park district debt that does not meet the criteria established in this Act must still be issued through one of the other debt instruments authorized by the Park District Code such as a bond, debt certificate, or installment contract.
Post Authored by Jim Rock, Ancel Glink