(605 ILCS 5/6-518) (from Ch. 121, par. 6-518)
Sec. 6-518.
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 highway commissioner and the road district clerk of
the road district in the bond resolution. They shall mature within not to
exceed 20 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 resolution.
If there is no default in payment of the principal of or interest upon
the refunding bonds, and there is sufficient money on hand to set 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 6 months period, the treasurer of
the road 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 road
district may provide in the bond resolution that, whenever the road
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 6
months period, the money available from the proceeds of taxes levied for
the payment of refunding bonds shall be first used 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 1959, p. 196.)
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