(20 ILCS 3805/7.26) (from Ch. 67 1/2, par. 307.26)
Sec. 7.26.
In connection with the acquisition or carrying of the
Authority's investments, in connection with issuances by the Authority of
its bonds and notes for purposes of the Authority's programs or in support
of its bonds and notes outstanding, or in connection with any other of its
corporate purposes, the Authority, for its own benefit or for the benefit
of the holders of notes or bonds of the Authority or their trustee, may
enter into rate protection contracts and related credit enhancement or
liquidity agreements. The Authority shall enter into a rate protection
contract only pursuant to a determination that the terms of the rate
protection contracts and any related agreements reduce the risk of loss to
the Authority or protect, preserve or enhance the value of its assets.
The determination may be made, and the terms and conditions of any
rate protection contract may be approved, by the members or may be
delegated by the members, in particular cases or generally, to any 2 of
the chairman, the vice chairman, the director, the deputy director, the
treasurer or the assistant treasurer of the Authority. The Authority's
obligations under any rate protection contract shall not be considered
bonds or notes for purposes of this Act.
(Source: P.A. 87-250.)
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