(30 ILCS 705/10)
(from Ch. 127, par. 2310)
Interest on Grant Funds.
All interest earned on grant funds
held by a grantee shall become part of the grant principal when earned and be
treated accordingly for all purposes, unless the grant agreement provides otherwise.
The grantor agency may provide in the grant agreement that interest earned
on grant funds may be retained by the grantee when the cost of accounting
for the interest or allocating the interest to principal is significant
in terms of the amount of interest to be received.
When the grantor agency is granting funds made available from the
federal government or other third party sources, and such funds require or
permit different treatment of interest which the grantee may earn on the
grant funds, the grantor agency may provide in the grant agreement that
such earned interest may be treated as required or permitted by the source of the funds.
However, any interest earned on grant funds subject to the grant
agreement held after the expiration of
the period of time specified in Section 4 shall become a part of the grant
principal and shall be so treated for all purposes.
(Source: P.A. 85-1214.)