Illinois General Assembly - Illinois Compiled Statutes

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55 ILCS 5/5-44035

    (55 ILCS 5/5-44035)
    Sec. 5-44035. Outstanding indebtedness.

(a) In case any unit
dissolved pursuant to this Division has bonds or notes
outstanding that are a lien on funds available in the
treasury at the time of consolidation, such lien shall be
unimpaired by such dissolution and the lien shall continue
in favor of the bond or note holders. The funds available
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 county.

(b) In case any unit dissolved pursuant to this Division
has unsecured debts outstanding at the time of dissolution,
any funds in the treasury of such unit or otherwise
available and not committed shall, to the extent necessary,
be applied to the payment of such debts.

(c) All property in the territory served by the dissolved unit of government shall be subject to taxation to pay the debts, bonds, and obligations of the dissolved district. The county board shall abate this taxation upon the discharge of all outstanding obligations.

(Source: P.A. 98-126, eff. 8-2-13.)