(105 ILCS 5/1E-85)
(This Section scheduled to be repealed in accordance with 105 ILCS 5/1E-165)
Debt service reserve fund.
(a) The Authority may create and establish a debt service reserve
fund to be maintained by a paying agent, escrow agent, depository, or corporate
trustee, which may be any trust
company or bank having the power of a trust company within the State,
separate and segregated from all other funds and accounts of the
Authority. The Authority may pay the following into the debt service reserve
(1) any proceeds from the sale of Bonds to the extent
(b) The amount to be accumulated in the debt service reserve fund
shall be determined by the Authority but shall not exceed the maximum
amount of interest, principal, and sinking fund installments due in any
succeeding calendar year.
(c) All moneys on deposit in the debt service reserve fund shall
be held in trust for the benefit of the holders of the Bonds, shall be
applied solely for the payment of principal of and sinking fund
installments and interest on the Bonds to the extent not paid from the
debt service fund, and shall not be used for any other purpose.
(d) Any moneys in the debt service reserve fund in excess of the
amount determined by the Authority pursuant to a resolution authorizing
the issuance of Bonds may be withdrawn by the Authority and used for any
of its lawful purposes.
(e) In computing the amount of the debt service reserve fund,
investments shall be valued as the Authority provides in the
resolution authorizing the issuance of the Bonds.
(Source: P.A. 92-547, eff. 6-13-02