(70 ILCS 3005/4) (from Ch. 42, par. 298.4)
Sec. 4.
The refunding bonds shall be of such form and denomination, payable
at such place, bear such date, and be executed by such officials as may be
provided by the corporate authorities of the sanitary district in the bond
ordinance. They shall mature within not to exceed twenty years from their
date, and may be made callable on any interest payment date at par and
accrued interest after notice has been given at the time and in the manner
provided in the bond ordinance.
If there is no default in payment of the principal of or interest upon
the refunding bonds, and if after setting aside a sum of money equal to the
amount of interest that will accrue on the refunding bonds, and a sum of
money equal to the amount of principal that will become due thereon, within
the next six months period, the treasurer of the sanitary district shall
use the money available from the proceeds of taxes levied for the payment
of the refunding bonds in calling them for payment, if, by their terms,
they are subject to redemption. However, a sanitary district may provide in
the bond ordinance that, whenever the sanitary district is not in default
in payment of the principal of or interest upon the refunding bonds and has
set aside the sums of money provided in this paragraph for interest
accruing and principal maturing within the next six months period, the
money available from the proceeds of taxes levied for the payment of
refunding bonds shall be used, first, in the purchase of the refunding
bonds at the lowest price obtainable, but not to exceed their par value and
accrued interest, after sealed tenders for their purchase have been
advertised for as may be directed by the corporate authorities thereof.
Refunding bonds called for payment and paid or purchased under this
section shall be marked paid and cancelled.
(Source: Laws 1941, vol. 2, p. 432.)
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