65 ILCS 5/ Illinois Municipal Code.

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65 ILCS 5/11-130-7

(65 ILCS 5/11-130-7) (from Ch. 24, par. 11-130-7)

Sec. 11-130-7.

There is hereby created a statutory mortgage lien upon the
waterworks so purchased or constructed from the proceeds of the bonds
authorized to be issued under this Division 130.  This lien exists in favor
of the holder of each of the bonds, and in favor of the holder of each of
the coupons attached to the bonds.  The waterworks shall remain subject to
this statutory mortgage lien until the principal and interest of the bonds
are paid in full.  Any holder of bonds issued under this Division 130, or of
any coupons representing interest accrued thereon, may, in a civil action,
enforce the statutory mortgage lien hereby created, and may compel the performance
of the duties of the officials of
the issuing municipality set forth in this Division 130.

If there is a default in the payment of the principal of and/or interest
upon any of these bonds, the circuit court
in any proper action
may appoint a receiver to administer the waterworks on behalf of the
municipality with power to charge and collect rates sufficient to provide
for the payment of the bonds and interest thereon, and for the payment of
the operating expenses and with power to apply the revenue in conformity
with this Division 130 and the ordinance providing for the issuance of the
bonds.

(Source: P.A. 79-1361.)

65 ILCS 5/11-130-8

(65 ILCS 5/11-130-8) (from Ch. 24, par. 11-130-8)

Sec. 11-130-8.

Rates for water fixed precedent to the issuance of bonds
shall not be reduced until all of the bonds have been fully paid, and,
whenever necessary, may be increased in amounts sufficient to provide for
the payment of the bonds, both principal and interest, and to provide
proper funds for the depreciation account and operation and maintenance
charges.

If any surplus accumulates in the operating and maintenance fund in
excess of the cost of maintaining and operating the waterworks during the
remainder of the then current fiscal year, and during the next ensuing
fiscal year, that excess may be transferred by the corporate authorities
either to the depreciation account or to the bond and interest redemption
account as the corporate authorities may designate. If any surplus
accumulates in the depreciation account over and above that which the
corporate authorities find may be necessary for the probable replacements
which may be needed during the remainder of the then present fiscal year
and the next ensuing fiscal year, that excess may be transferred to the
bond and interest redemption account. If any surplus exists in the bond and
interest redemption account that surplus shall be applied insofar as
possible in the purchase or retirement of outstanding revenue bonds payable
from that account, and for that purpose the corporate authorities are
hereby authorized to purchase bonds not due in the open market at not more
than the fair market value thereof.

(Source: Laws 1961, p. 576.)

65 ILCS 5/11-130-9

(65 ILCS 5/11-130-9) (from Ch. 24, par. 11-130-9)

Sec. 11-130-9.

For the purpose of purchasing any waterworks under this
Division 130, or for the purpose of purchasing any property necessary
therefor, the municipality has the right of eminent domain as provided by
the Eminent Domain Act.

(Source: P.A. 94-1055, eff. 1-1-07.)

65 ILCS 5/11-130-10

(65 ILCS 5/11-130-10) (from Ch. 24, par. 11-130-10)

Sec. 11-130-10.

Whenever a municipality owns and operates a waterworks
system, whether purchased or constructed under this Division 130 or not,
and desires to construct improvements thereto, it may issue revenue bonds
under this Division 130 to pay for that construction. The procedure for
that issuance, including the fixing of rates and the computation of the
amount thereof, shall be the same as is provided in this Division 130 for
the issuance of bonds for the purchase or construction of waterworks by a
municipality, except that in the ordinance declaring the intention to issue
the bonds and providing details in connection therewith, the corporate
authorities shall find and declare, in addition to the other requirements
set out in this Division 130, the value of the then existing waterworks and
the value of the property proposed to be constructed. The revenue derived
from the waterworks when the contemplated improvements are completed shall
be divided according to those 2 values. So much of the revenue as is in
proportion to the value of the improvements as distinguished from the value
of the previously existing waterworks, as so determined, shall be set aside
and used solely for the purpose of paying the revenue bonds issued for the
improvements, together with the cost of the operation and the depreciation
thereof, and that revenue shall be deemed to be income derived exclusively
from the improvements.

(Source: Laws 1961, p. 576.)

65 ILCS 5/11-130-11

(65 ILCS 5/11-130-11) (from Ch. 24, par. 11-130-11)

Sec. 11-130-11.

Any municipality issuing revenue bonds under this Division
130 shall install and maintain a proper system of accounts, showing the
amount of revenue received and its application. At least once a year the
municipality shall have the accounts properly audited by a competent
auditor. The report of that audit shall be open for inspection at all
proper times to any taxpayer, water-user, or any holder of bonds issued
under this Division 130, or to anyone acting for and on behalf of the
taxpayer, water-user, or bondholder.

The treasurer of the municipality shall be custodian of the funds
derived from income received from waterworks purchased or constructed
either in whole or in part under the provisions of this Division 130. He
shall give proper bond for the faithful discharge of his duties as such
custodian, and this bond shall be fixed and approved by the corporate
authorities of the municipality.

All of the funds received as income from waterworks purchased or
constructed in whole or in part under the provisions of this Division 130,
and all of the funds received from the sale of revenue bonds issued to
construct such a waterworks system, shall be kept separate and apart from
the other funds of the municipality. The treasurer shall maintain separate
accounts in which shall be placed (1) the interest and sinking fund, (2)
the depreciation fund and (3) the operating and maintenance fund. He shall
also provide for refunding outstanding certificates payable out of water
revenue.

(Source: Laws 1961, p. 576.)