65 ILCS 5/8-12-21
2021 Illinois Compiled Statutes|Chapter 65 - MUNICIPALITIES|65 ILCS 5/ - Illinois Municipal Code.|Article 8 - Finance

 (from Ch. 24, par. 8-12-21)Sec. 8-12-21.         The Authority in its sole discretion may intercept any  payments that the city from time to time is entitled to receive from any  funds then or thereafter held by the State Treasurer to the credit of the  city or otherwise in the custody of the State Treasurer to the credit of  the city, whether in or outside of the State Treasury, upon the occurrence  of any of the following:(1) The financially distressed city's initial     Financial Plan and revised Budget required to be submitted to the Authority with respect to the remaining portion of what is the city's current fiscal year at the time this Division first becomes applicable to the city as provided in Section 8-12-4 are not approved by the Authority within 60 days of their submission, and the Authority has theretofore given written warning notice to the corporate authorities of the city, on the 45th day after such initial Financial Plan and revised Budget were submitted, that the same have not yet been approved by the Authority; or(2) Any Financial Plan or Budget for any subsequent     fiscal year is not approved by the Authority by the commencement of the fiscal year to which such Financial Plan or Budget relates, and the Authority has theretofore given written warning notice to the corporate authorities of the city, on the 15th day prior to the commencement of that fiscal year, that the Financial Plan or Budget for such fiscal year has not yet been approved by the Authority; or(3) The financially distressed city materially     violates the provisions of this Division, and the Authority -- at least 15 days prior to initiating any action to intercept any payments pursuant to this Section -- has given the corporate authorities of the city written notice of the material violation and of the Authority's intention to intercept payments pursuant to this Section upon the expiration of that 15 day notice period unless the city satisfies the Authority within that 15 day period that the material violation cited by the Authority has been corrected; provided that the Authority shall not be required to give any notice to the city or its corporate authorities prior to initiating action to intercept payments pursuant to this Section if such payments are to be intercepted because of the city's failure to pay when due all amounts then due and owing and required to be paid by the city on Obligations issued by the Illinois Finance Authority in connection with the provision of financial aid to the city pursuant to this Division and applicable provisions of the Illinois Finance Authority Act.The intercept shall be made pursuant to written notice given by the  Authority to the State Comptroller and State Treasurer, setting forth the  amount of the intercept, which may be an aggregate amount not exceeding the  sum of the full amount of any outstanding State loans provided for the  benefit of the city pursuant to this Division or any other law of this  State, plus the full amount of all outstanding Obligations issued by the  Illinois Finance Authority on the financially  distressed city's  behalf in accordance with applicable provisions of the Illinois  Finance Authority Act.  The State Comptroller and State Treasurer shall pay  to the Authority, from such funds as from time to time are legally  available therefor, the aggregate amount of the intercept, unless the  Authority sooner notifies the State Comptroller and State Treasurer in  writing that no further payments that the city is entitled to receive shall  be intercepted under the provisions of this Section.    (Source: P.A. 93-205, eff. 1-1-04.)