(20 ILCS 3805/23a) (from Ch. 67 1/2, par. 323a)
Sec. 23a.
The Authority may create and establish one or more special funds
(herein referred to as "debt service reserve funds"), and shall pay into
each such debt service reserve fund (a) any moneys appropriated and made
available by the State for the purpose of such fund (except that no such
State moneys shall be so paid with respect to such fund for notes or bonds a
major portion of the proceeds of which are used to provide housing related
commercial facilities), (b) any proceeds of
sale of notes or bonds to the extent provided in the resolution or
resolutions of the Authority authorizing the issuance thereof, and (c)
any other moneys which may be available to the Authority for the purpose
of such fund from any other source or sources. All moneys held in any
debt service reserve fund, except as hereinafter provided, shall be
used, as required, solely for the payment of the principal of bonds or
notes secured in whole or in part by such fund or of the sinking fund
payments with respect to such bonds or notes, the purchase or redemption of such
bonds or notes, the payment of interest on such bonds or notes or
the payment of any
redemption premium required to be paid when such bonds or notes are redeemed
prior to maturity. Moneys in such fund shall not be withdrawn therefrom
at any time in such amount as would reduce the amount of such fund to
less than the minimum debt service reserve requirement established for
such fund by resolution of the Authority, except for the purpose of
making, with respect to bonds or notes secured in whole or in part by such fund,
payment when due, of principal, interest, redemption premiums and the sinking
fund payments with respect to such bonds or notes for the payment
of which other moneys of the Authority are not available. Any income or
interest earned by, or increment to, any debt service reserve fund due
to the investment thereof may be transferred by the Authority to other
funds or accounts of the Authority to the extent it does not reduce the
amount of the debt service reserve fund below the minimum debt service
reserve fund requirement for such fund, as may be allowed by the
resolution of the Authority authorizing the issuance of its bonds and notes.
The Authority shall not at any time issue bonds or notes, secured in whole or
in part by a debt service reserve fund, if upon the issuance of such
bonds or notes, the amount in such debt service reserve fund will be less than
any minimum debt service reserve fund requirement for such fund, unless
the Authority, at the time of issuance of such bonds or notes shall deposit in
such fund from the proceeds of the bonds or notes to be issued, or from other
sources an amount which together with the amount then in such fund will
not be less than any minimum debt service reserve fund requirement for
such fund.
In computing the amount of any debt service reserve fund for the
purpose of this Section, securities in which all or a portion of such
fund shall be invested shall be valued either (i) at par, or if purchased at less
than par, at their cost to the Authority or (ii) as provided in the
resolution authorizing the issuance of the bonds or notes which are to be
secured by the fund.
(Source: P.A. 83-1251.)
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