(65 ILCS 5/11-12.1-4)
(from Ch. 24, par. 11-12.1-4)
The corporate authorities of any such municipality availing
themselves of the provisions of this Division 12.1 shall adopt an ordinance
describing a Conservation Area or Areas, as that term is defined in the
above named Acts, within which the proceeds of the sale of such bonds shall
be made available for purchase of loans, which shall be placed on file in
the office of the clerk of such municipality and which shall be open for
the inspection of the public. Such ordinance shall fix the amount of the
revenue bonds proposed to be issued, the maturity or maturities, the
interest rate, and all details in respect thereof. Such ordinance shall
contain such covenants or restrictions as may be deemed necessary or
advisable by the corporate authorities and without limiting the generality
of the foregoing, such ordinance shall contain such covenants as may be
determined by the corporate authorities as to:
a. The issuance of additional series of bonds that may thereafter be
issued, payable from the revenues derived from purchased loans of such
proceeds to the owners of real property within Conservation Areas affected
by an approved Conservation Plan as hereinbefore provided.
b. The pledge by the municipality of all investments and loans made from
the sale of such revenue bonds as security for the payment of such revenue
bonds and authorization of the execution of such agreements or collateral
trust indentures necessary to accomplish such pledge.
c. Operation, maintenance, management, accounting and auditing and the
keeping of records, reports and audits of the operation of such mortgage
d. Limiting the right of the municipality to invest the funds derived
from the sale of such revenue bonds in first mortgages on real property
within Conservation Areas affected by approved Conservation Plans and which
mortgages shall be insured against loss by the Federal Housing Commissioner
pursuant to the provisions of the Federal Housing Act as hereinbefore
provided. Pending the investment of such fund, the municipality may invest
such fund in good interest paying securities such as are authorized by law
for the investment of public funds, there to remain until the same is
needed for proceeding hereunder.
e. The obligation of the municipality to properly administer the
mortgage loan fund, to collect the principal and interest payable upon
loans as herein provided, to enforce its rights with respect to such
mortgage notes and security, in the event of default therein to take proper
action to enforce its rights in the collection of such mortgage notes and
foreclosure of the security therein pledged, and to secure the benefit of
the insurance against loss of such mortgage by the Federal Housing
Commissioner of the United States of America in accordance with the
provisions of the National Housing Act of the United States and to apply
the proceeds of such mortgage loan fund to the payments of interest and
principal on account of the revenue bonds issued and sold thereunder.
f. The designation of a committee of bondholders to consult with and
advise the municipality in the administration of the mortgage loan fund.
g. Fixing procedure by which the terms of any contract with the holders
of the bonds may be amended, the amount of bonds the holders of which must
consent thereto, and the manner in which such consent may be given.
h. Providing for the establishment of suitable reserves and regulating
the cost of administration in the operation, management and supervision of
such mortgage fund.
i. Such covenants as may be deemed necessary or desirable to assure
successful operation of such mortgage loan fund and prompt payment of the
principal of and interest upon bonds so authorized.
After such ordinance has been adopted and approved, it shall be
published once in a newspaper published and having a general circulation in
such municipality or, if there be no such newspaper published in such
municipality, then the ordinance should be posted in at least 5 of the most
public places in such municipality and shall become effective 10 days after
publication or posting thereof.
(Source: Laws 1961, p. 3702.)