(20 ILCS 3501/825-35)
Sec. 825-35.
Pledge of Funds.
Any financially distressed city which
receives
funds from the Department of Revenue, including without limitation funds
received
pursuant to
Section 8-11-1, 8-11-5 or 8-11-6 of the Illinois Municipal Code or
Section 2 or 12 of the State Revenue Sharing Act, or from the Department of
Transportation pursuant to
Section 8 of the Motor Fuel Tax Law, may, by
appropriate proceedings, pledge to the Authority, or any entity acting on
behalf
of the Authority (including, without limitation, any trustee), any or all of
such receipts to the extent that such receipts are determined by the Authority
to be necessary to provide revenues to pay or secure the payment of the
principal of, premium, if any, and interest on any of the bonds issued on
behalf
of, or loans made to, the financially distressed city by the Authority under
Sections 825-20 through 825-60. The adoption of such proceedings shall
constitute
a directive to the State Comptroller and State Treasurer to pay to, or on
behalf
of, the Authority or such other entity (including, without limitation, any
trustee) such portion of the pledged receipts from the Department of Revenue or
Department of Transportation, as the case may be, and with the State
Comptroller
and the State Treasurer. With respect to any bonds issued on behalf of, or
loans made to, the financially distressed city by the Authority under
Sections
825-20 through 825-60, which are in default in the payment of principal,
premium,
if any, or interest, to the extent that the State Treasurer, the State
Comptroller, the Department of Revenue or the Department of Transportation
shall
be the custodian at any time of any other available funds or
moneys pledged to the
payment of such local government securities or such lease rental payments
securing such local government securities pursuant to this
Section and due or
payable to such a unit of local government at any time subsequent to written
notice
to the State
Comptroller and State Treasurer from the Authority or any entity acting on
behalf of the Authority (including, without limitation, any trustee) to the
effect that such financially distressed city has not paid or is in default as
to
payment of the principal of, premium, if any, or interest on any bonds issued
on
behalf of, or loans made to, the financially distressed city by the Authority
under
Sections 825-20 through 825-60:
(a) The State Comptroller and the State Treasurer shall withhold the payment
of
such funds or moneys from the financially distressed city until the amount of
such principal, premium, if any, and interest then due and unpaid has been paid
to the Authority or such entity acting on behalf of the Authority (including,
without limitation, any trustee), or the State Comptroller or State Treasurer
have been advised that arrangements, satisfactory to the Authority or such
entity, have been made for the payment of such principal, premium, if any, and
interest; and
(b) Within 10 days after a demand for payment by the Authority or such
entity
is given to the State Treasurer and the State Comptroller, the State Treasurer
shall pay such funds or moneys as are legally available therefor to the
Authority or such entity for the payment of principal, premium, if any, and
interest on such bonds or loans. The Authority or such entity may carry out
this
Section and exercise all the rights, remedies and provisions provided or
referred to in this
Section.
(Source: P.A. 93-205, eff. 1-1-04.)
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