Chapman and Cutler LLP provides bond counsel, underwriter's counsel, disclosure counsel or issuer's counsel representation for special assessment bonds issued by municipalities. A special assessment is a method of financing used when a municipal improvement benefits a particular area to a greater extent than it benefits the municipality.
The firm enjoys over half a century of special assessment bond counsel experience on behalf of our valued clients.
During the process of legal oversight on behalf of our clients, we examine the cost of such improvement when assessed against individual properties in amounts approximately equal to the value of the benefit to the properties assessed. Each assessment is a lien on the property and is payable in annual installments, with interest. With the exception of the public benefit portion of the special assessment, this debt does not count against the statutory municipal debt limit.
In general, municipalities may finance special assessment projects by selling (usually at a discount) vouchers issued for services in lieu of payment or by exchanging all such vouchers for special assessment bonds.
In addition, municipalities may issue, subject to the Bond Issue Notification Act of the State of Illinois, as amended, and the Property Tax Extension Limitation Law of the State of Illinois, as amended, judgment funding bonds to pay their public benefit portion of the assessment.
Finally, the Special Assessment Supplemental Bond and Procedures Act provides supplemental authority regarding the procedures for the making of local improvements and the issuance and sale of obligations payable from special assessments. Our group is particularly knowledgeable about all facets of the process and our clients are comfortable with our ability to handle their most complicated negotiations.