(60 ILCS 1/280-30)
Sec. 280-30.
Sinking fund.
(a) Money that becomes available from taxes that were levied for prior
years for payment of bonds or interest coupons that were paid or refunded
before those taxes were collected, after payment of all warrants that may
have been issued in anticipation of these taxes, shall be placed in the
sinking fund account provided in this Section. The account shall be used to
purchase, call for payment, or pay at maturity refunding bonds and
interest on those bonds as provided in this Section.
(b) Money received from the proceeds of taxes levied for the payment of the
principal of and interest upon refunding bonds shall be deposited in a
special fund of the township designated as the Refunding Bond and Interest
Sinking Fund Account of (name of township).
This fund shall be faithfully applied to the purchase or payment of refunding
bonds and the interest on those bonds under this Article.
(c) If the money in the sinking fund is not immediately necessary for the
payment of refunding bonds or if refunding bonds cannot be purchased before
maturity, then, under the direction of the corporate authorities of the
township, the money may be invested by the treasurer of the township in
bonds or other interest bearing obligations of the United States or in
bonds of the State of Illinois.
(d) The maturity date of the securities in which the money in the sinking
fund is invested shall be before the due date of any issue of refunding bonds
of the investing township. The corporate authorities may sell these securities
whenever necessary to obtain cash to meet bond and interest payments.
(Source: Laws 1941, vol. 2, p. 489; P.A. 88-62.)
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