IL HB2584

Amends the Local Government Debt Reform Act to create a statutory lien on all revenues from taxes and user fees that support payment of bonds issued by local public entities.

Statutory liens automatically attach to bond revenues upon bond issuance without further action, authorization, or physical delivery requirements.

Liens are valid, binding, and enforceable against the local public entity, its successors, creditors, and all parties with claims against the entity, regardless of notice.

Liens are first-priority unless bonds specify otherwise, and supporting taxes and user fees cannot be used for other purposes until bonds are paid in full unless bonds specify otherwise.

Applies to all bonds issued under the Local Government Debt Reform Act, home rule powers, or related laws, including general obligation bonds and revenue bonds, with protection afforded to special revenue bonds under the federal Bankruptcy Code.