(70 ILCS 705/14.08)
(from Ch. 127 1/2, par. 34.08)
In case any district consolidated into a consolidated district
has bonds or notes outstanding which are a lien on funds on hand in the
treasury at the time of consolidation, such lien shall be unimpaired by
such consolidation and the lien shall continue in favor of the bond or note
holders. The funds on hand subject to such a lien shall be set apart and
held for the purpose of retiring such secured debt and no such funds shall
be transferred into the general funds of the consolidated district until
all indebtedness of the district consolidated into the consolidated
district has been discharged.
In case any district consolidated into a consolidated district has
unsecured debts outstanding at the time of consolidation, any funds in the
treasury of such district or otherwise available and not committed shall,
to the extent necessary, be applied to the payment of such debts.
All property in the consolidated district, without discrimination
between the territory in the several districts consolidated into the
consolidated district, shall be subject to taxation to pay the debts,
bonds, and obligations of the consolidated district.
(Source: Laws 1957, p. 626.)