(70 ILCS 15/16)
(from Ch. 15 1/2, par. 716)
Use of income and revenues received.
(a) Whenever revenue bonds are issued and outstanding under Sections 14
and 15, all of the income and revenues received from the
operation of the airport or airports, related facility or facilities,
perimeter area or areas and perimeter area facility or facilities pledged
to secure the payment of the interest and principal of such bonds shall be
paid to the State Treasurer and deposited in a separate fund, to be
designated the Kankakee River Valley Area Airport Authority Bond Retirement
and Interest Fund, of which the State Treasurer shall be ex officio
custodian and which shall be used only in paying the principal and interest
of these revenue bonds and reserves therefor and the cost of rental,
maintenance, operation and depreciation of such airport or airports,
related facility or facilities, perimeter area or areas and perimeter area
facility or facilities to such extent and in such order of priority as
shall be provided by the respective resolutions authorizing revenue bonds.
No priority accorded by such a resolution may be impaired by a subsequent
resolution authorizing revenue bonds unless specifically so permitted by a
covenant of the kind authorized to be included in a resolution by Section 15.
(b) The Fund shall be held, invested and disbursed for the purposes provided
in this Section, upon the order of the Authority and in accordance with
provisions and covenants of any bond resolution authorizing the issuance of
bonds. The interest accruing on the Fund shall be computed and added to
the principal thereof every 6 months.
(c) In addition to the special audits prescribed by this Act, the Fund shall
also be subject to audit in the same manner as
provided for the audit of State funds and accounts.
(d) The Fund shall be protected by a corporate surety bond, executed by the
Treasurer, with a surety authorized to do business under the laws of the
State of Illinois, in an amount to be fixed by resolution of the Authority
and approved by the Governor, which amount may be increased or diminished
at any time. The premiums on that bond are payable from the funds of the
Authority. The bond shall be subject to the approval of the Governor and
Attorney General of the State of Illinois, and, when so approved, shall be
filed in the office of the Secretary of State.
(e) The Fund shall be considered always appropriated for the purposes of
disbursements as provided in this Act, and shall be paid out and disbursed
only as provided in this Act and may not, at any time, be appropriated or
diverted to any other use or purpose.
(f) Such income and revenues in excess of requirements for payment of
principal of and interest upon these bonds and reserves therefor and for
payment of cost of maintenance, operation and depreciation of the airport
or airports, related facility or facilities, perimeter area or areas and
perimeter area facility or facilities may be used for rehabilitation,
reconstruction and expansion of existing airports, related facilities,
perimeter areas and perimeter area facilities, or for retirement of any
outstanding bonds issued for airport purposes. After all such bonds have
been paid, such income and revenues may be transferred to the general
corporate fund of the Authority and be used for the maintenance, operation,
repair and development of such airport or airports, related facility or
facilities, perimeter area or areas, and perimeter area facility or
facilities, or for any corporate purpose.
(Source: P.A. 86-1400.)