65 ILCS 5/ Illinois Municipal Code.

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65 ILCS 5/11-74.5-3

(65 ILCS 5/11-74.5-3) (from Ch. 24, par. 11-74.5-3)

Sec. 11-74.5-3.

In addition to powers which a municipality may now have,
municipalities have the following powers:

(a) To acquire, and to contract and enter into advance commitments to
acquire, directly or indirectly, home mortgages owned or originated by
lending institutions at such
prices and upon such other terms and conditions as shall be determined by
such municipality or trustee as it may designate as its agent;

(b) To make and execute contracts with lending institutions for the
origination
and servicing of home mortgage loans on behalf of a municipality and to
pay the reasonable value of services rendered in accordance with such contracts;

(c) To make loans to lenders to enable such lenders to make home mortgage
loans in accordance with this Division;

(d) To establish, by rules or regulations, by ordinances relating to
any issuance of bonds or in any financing documents relating to such issuance,
such standards and requirements applicable to the purchase of home mortgage
loans or the origination of home mortgage loans or loans to lenders as such
municipality deems necessary or desirable to effectuate the public purposes
of this Act, including but not limited to: (i) the time within which lending
institutions must make participation commitments and make disbursements
for home mortgage loans; (ii) the terms and conditions of home mortgage
loans to be acquired or originated; (iii) the standards and criteria to
be applied by the municipality in defining persons of low or moderate income; (iv)
the amounts and types of insurance coverage required on homes, home mortgage
loans and bonds; (v) the representations and warranties to be required
of persons and lending institutions as evidence of compliance with such
standards and requirements; (vi) restrictions as to interest rate and other
terms of home mortgage loans or the return realized therefrom by lending
institutions; (vii) the type and amount of collateral security to be provided
to assure repayment of any loans to lenders by such municipalities and to
assure repayment of bonds;  and (viii) any other matters related to the
purchase or origination of home mortgage loans or the making of loans
to lenders as shall be deemed relevant or necessary by the corporate authorities
of such municipality.

(e) To require from each lending institution from which home mortgage
loans are to be purchased or which will originate home mortgage loans on
behalf of the municipality or from lenders to which loans are made, the
submission, at the time of making participation commitments, of evidence
satisfactory to such municipality of the ability and intention of such lending
institution to make home mortgage loans, and the submission, within the
time specified by such municipality for making disbursements for home mortgage
loans, of evidence satisfactory to such municipality of the making of home
mortgage loans and of compliance with any standards and requirements established
by such municipality.

(f) To require that a lending institution or lender furnish, prior to
or concurrently with the delivery of any participation commitment by a lending
institution, a commitment fee in the form of a cash deposit, letter of credit,
promissory note, surety bond or other instrument approved by the corporate
authorities executed by or on behalf of such lending institution, in an
amount to be determined by the corporate authorities.

(g) To issue its bonds to defray, in whole or in part  (i) the cost
of acquiring or originating home mortgage loans or making loans to lenders
in order to enable them to make home mortgage loans; (ii) if deemed necessary
or advisable, the costs of paying interest on bonds during a reasonable
period necessary to acquire or originate the home mortgage loans or to make
the loans to lender, (iii) the costs of studies and surveys, insurance
premiums, underwriting fees, legal, accounting and marketing services incurred
in connection with the issuance and sale of such bonds, including amounts
required to establish reasonably necessary bond and interest reserve accounts,
and trustee, custodian and rating agency fees; (iv) the costs of reasonable
reserves; and (v) such other costs
as are reasonably related to the foregoing.

(h) To authorize the sale or other disposition of any home mortgage
loan, in whole or in part, upon such terms, at such prices and times, and
from time to time, as may be necessary to assure that the revenues and receipts
to be derived with respect to the home mortgage loans, together with any
insurance proceeds, funds held in reserve accounts and earnings thereon,
shall produce and provide revenues and receipts at least sufficient to provide
for the prompt payment of the principal of, redemption premiums, if any,
and interest at maturity of all bonds issued pursuant to this Division or to
otherwise authorize the sale or other disposition of any home mortgage loan
after the bonds have been paid or deemed to be paid.

(i) To pledge any revenues and receipts to be received from any home
mortgage loans to the punctual payment of bonds authorized under this Division,
and the interest and redemption premiums, if any, thereon.

(j) To mortgage, pledge or grant security interests in any home mortgage
loans, notes or other property in favor of the holder or holders of bonds
issued therefor.

(k) to issue its bonds in such amount as may be necessary (and not limited
by the amount of bonds refunded) for the purpose of refunding, in whole
or in part at any time, bonds theretofore issued by such municipality under
authority of this Division, the proceeds of which refunding bonds may be
used, at the discretion of the corporate authorities, for paying bonds at
maturity, calling bonds for payment and paying bonds prior to maturity,
or for deposit into an escrow or trust fund in advance of maturity of bonds to
be held
for payment thereof at maturity or earlier.

(l) To appoint or designate a trustee or trustees for the benefit of
the bondholders and to delegate and assign thereto, insofar as it may lawfully
do so, its rights, duties
and responsibilities with respect to carrying out and enforcing the terms
and provisions of its residential housing finance plan.

(m) To provide for and authorize the use and disposition of any funds
remaining in the possession of the municipality (or trustees)
following payment
and retirement of, or following the making of provision for the payment
of, the bonds of a designated series issued pursuant to this Division.

(n) To make and execute contracts and other instruments necessary or
convenient to the exercise of any of the powers granted herein.

(Source: P.A. 90-706, eff. 8-7-98.)

65 ILCS 5/11-74.5-4

(65 ILCS 5/11-74.5-4) (from Ch. 24, par. 11-74.5-4)

Sec. 11-74.5-4.

(Repealed).

(Source: P.A. 82-783. Repealed by P.A. 90-706, eff. 8-7-98.)

65 ILCS 5/11-74.5-5

(65 ILCS 5/11-74.5-5) (from Ch. 24, par. 11-74.5-5)

Sec. 11-74.5-5.

The exercise of any or all powers granted by this Division
shall be authorized and the bonds shall be authorized to be issued under
this Division for the purposes set forth in this Act, by an ordinance adopted
by the corporate authorities of a municipality which shall take effect
immediately
upon adoption.
Any such ordinance shall set forth a finding and declaration (i) of the
public purpose therefor and (ii) that such ordinance is adopted pursuant
to this Division, which finding and declaration shall be conclusive evidence
of the existence and sufficiency of the public purpose and of the
power to carry out and give effect to such public purposes.

The bonds shall bear interest at such  rate or rates (subject only to the
limitations set forth in paragraph (a) of Section 11-74.5-4 and without
regard to any other law pertaining to interest rate limitations),
may be payable at such time or times, may be in one or more series, may
bear such
date or dates, may mature at such time or times not exceeding 40 years from
their respective dates, may be payable in such medium of payment at such
place or places, may carry such registration privileges, may be subject
to such terms of redemption at such premiums, may be executed in such manner,
may contain such terms, covenants and conditions and may be in such form,
either coupon or registered, as the corporate authorities shall provide.
The bonds may be sold at public or private sale at such price, in such manner
and upon such terms as the corporate authorities may determine.  Pending
the preparation of definitive bonds and in anticipation thereof, interim
notes, in such form and with such provisions as may be authorized by the
corporate authorities, may be issued to the purchaser or purchasers of bonds
sold pursuant to this Division.  The bonds and interim notes shall be deemed
to be securities and negotiable instruments within the meaning and for all
purposes of the Uniform Commercial Code.

(Source: P.A. 90-706, eff. 8-7-98.)

65 ILCS 5/11-74.5-6

(65 ILCS 5/11-74.5-6) (from Ch. 24, par. 11-74.5-6)

Sec. 11-74.5-6.

Any ordinance authorizing the issuance of the bonds under
this Division may contain covenants regarding (a) the use and disposition
of the revenues and receipts from any home mortgage loans for which the
bonds are to be issued, including the creation and maintenance of such reasonable
and adequate
reserves as the corporate authorities may determine; (b) the insurance to
be carried on any home mortgage loan or bonds and the use and disposition
of the proceeds of such insurance; (c) the appointment of one or more trustees
for the benefit of the bondholders, paying agents or bond registrars; (d)
the investment of any funds held by such trustees or lender; (e) the maximum
interest rate payable on any home mortgage loan (subject to the provisions
of paragraph (a) of Section 11-74.5-4); and (f) the terms and conditions
upon which the holders of the bonds or any portion thereof, or any trustees
therefor, are entitled to the appointment of a receiver by a court of competent
jurisdiction, and such terms and conditions may provide that the receiver
may take possession of the home mortgage loans or any part thereof and maintain,
sell or otherwise dispose of such home mortgage loans, prescribe other payments
and collect, receive and apply all income and revenues thereafter derived
therefrom.  An ordinance authorizing the issuance of bonds under this Division
may provide that payment of the principal of, redemption premium, if any,
and interest on any bonds issued under this Division shall be secured by
a mortgage, pledge, security interest, insurance agreement or indenture
of trust of or with respect to such home mortgage loans and a lien upon
the revenues and receipts derived therefrom or from any notes or other obligations of
lending institutions, with respect to which the bonds are issued.  Such
mortgage, pledge, security interest, insurance agreement or indenture of
trust may contain such covenants and agreements as may be necessary or
appropriate to safeguard the interests of the holders of the bonds and shall
be executed in the manner authorized by the ordinance authorizing the bonds.
The provisions of this Division and any such ordinance and any such mortgage,
pledge, security interest, insurance agreement or indenture of trust shall
constitute a contract with the holder or holders of the bonds and continue
in effect until the principal of, the interest on, and the redemption premiums,
if any, on the bonds have been fully paid or provision made for the payment
thereof, and the duties of the municipality and its corporate authorities
and officers under this Division and any such ordinance and any such mortgage,
pledge, security interest,  insurance agreement or indenture of trust shall
be enforceable as provided therein by any bondholder by mandamus, foreclosure
of any such mortgage, pledge, security interest or indenture of trust or
other appropriate suit, action or proceeding in any court of competent jurisdiction;
provided the ordinance or any mortgage, pledge, security interest, insurance
agreement or indenture of trust under which the bonds are issued may provide
that all such remedies and rights to enforcement may be vested in a trustee
(with full power of appointment) for the benefit of all the bondholders,
which trustee shall be subject to the control of such number of holders
or owners of any outstanding bonds as provided therein.

(Source: P.A. 81-580.)

65 ILCS 5/11-74.5-7

(65 ILCS 5/11-74.5-7) (from Ch. 24, par. 11-74.5-7)

Sec. 11-74.5-7.

The bonds shall bear the manual or facsimile signatures
of such officers of a municipality as may be designated in the ordinance
authorizing such bonds and such signatures shall constitute the valid and
binding signatures of such officers, notwithstanding that before the delivery
thereof and payment therefor any or all of the persons whose signatures
appear thereon have ceased to be officers of such municipality.  The validity
of the bonds shall not be dependent on nor affected by the validity or regularity
of any proceedings relating to the home mortgage loans acquired or made
from proceeds of the bonds.  A recital in the bonds that they are issued
pursuant to this Division shall be conclusive evidence of their validity
and of the regularity of their issuance.

(Source: P.A. 81-580.)