(20 ILCS 3501/825-30)
Sec. 825-30.
Powers and Duties; Financing.
(a) Upon application of the financial advisory authority established for a
financially distressed city under Division 12 of Article 8 of the Illinois
Municipal Code, the Authority shall have the power to issue its bonds, notes or
other evidences of indebtedness, the proceeds of which are to be used to make
loans to a financially distressed city for purposes of enabling that city to
restructure its current indebtedness and to provide and pay for its essential
municipal services as determined in a manner consistent with Division 12 of
Article 8 of the Illinois Municipal Code by the financial advisory authority
established for that city under that Division 12.
(b) Bonds authorized to be issued by the Authority under
Sections 825-20 through
825-60 shall be payable from such revenues, income, funds and accounts of the
financially distressed city which receives a loan of any proceeds of the bonds
so issued as the Authority shall determine and prescribe in the loan agreement.
(c) The Authority may prescribe the form and contents of any application
submitted under subsection (a) of this
Section and may, at its discretion,
accept or reject such application or require such additional information as it
deems necessary to aid in its review and determination of whether it will issue
its bonds and loan the proceeds thereof as authorized under
Sections 825-20
through 825-60.
(d) The amount of bonds issued or proceeds thereof loaned by the Authority
with
respect to an application which the Authority has approved shall be determined
by the Authority.
(e) The financially distressed city receiving a loan under
Sections 825-20
through 825-60 shall enter into a loan agreement in the form and manner
prescribed by the Authority, and shall pay back to the Authority the principal
amount of the loan, plus annual interest as determined by the Authority. The
Authority shall have the power, subject to appropriations by the General
Assembly, to subsidize or buy down a portion of the interest on such loans, up
to 4% per annum.
(f) The Authority shall create and establish a debt service reserve fund to
be
maintained by a trustee separate and segregated from all other funds and
accounts of the Authority. This reserve fund shall be initially funded by a
contribution of State monies.
(g) The amount to be accumulated in the debt
service reserve fund shall be determined by the Authority but shall not exceed
the maximum amount of interest, principal and sinking fund installments due in
any succeeding calendar year.
(Source: P.A. 93-205, eff. 1-1-04.)
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