(50 ILCS 415/2) (from Ch. 85, par. 4402)
Sec. 2.
Whenever it is advantageous and in the public interest to do
so, a unit of local government is empowered to effect the net defeasance
or the gross defeasance of any outstanding debt lawfully incurred by such
unit of local government. When an escrow has been established to effect
such net defeasance or gross defeasance of an outstanding debt, the moneys
or cash equivalents deposited in such escrow shall be invested and reinvested,
pursuant to the direction of the governing authority of such unit of local
government, in bonds and other interest bearing obligations of the State
of Illinois, or in such accounts, certificates, bills, obligations, shares,
pools or other securities as are authorized for the investment of public
funds under "An Act relating to certain investments of public funds by public
agencies", approved July 23, 1943, as amended; and all interest income or
profit derived therefrom in excess of the amounts needed for expenses of
administration of the escrow and for payment of all remaining principal
and interest until maturity of the debt which is the subject of that escrow
shall be transmitted when earned to such unit of local government, pursuant
to directions from its governing authority, to be credited to such funds as
the governing authority of such unit of local government shall by ordinance
or resolution direct.
(Source: P.A. 83-1536.)
|