(60 ILCS 1/35-50.4)
Sec. 35-50.4.
Security for bonds.
To secure payment of any or all of the
bonds, any additional ordinance supplementing or amending the election
ordinance shall set forth the covenants and undertakings of the township in
connection with (i) the issuance of the bonds and the issuance of
additional bonds payable from the net revenue or income to be derived from
the operation of the senior citizens' housing and (ii) the use and
operation of the senior citizens' housing. The additional ordinance may also
provide that the bonds, or those that are specified, shall, to the extent and
in the manner prescribed, be subordinate and junior with respect to the payment
of principal and interest to other bonds designated in the ordinance. The
additional ordinance may in the discretion of the township board provide that
the bonds be secured by a trust agreement or depositary agreement by and
between the township board and a corporate trustee, which may be a trust
company or a bank having powers of a trust company within this State. The
agreement may contain provisions for directing and enforcing the rights and
remedies of the bondholders deemed reasonable and proper, including the
terms upon which the trustee and the bondholders, or either of them, may
enforce their rights, but no trust agreement, depositary agreement, or other
instrument securing the bonds shall convey, mortgage, or otherwise create
any lien on the properties constituting the senior citizens' housing,
other than the net revenues with respect thereto as described in Sections
35-50.1 through 35-50.6.
(Source: P.A. 87-922; 88-62.)
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