65 ILCS 5/11-74.5-6
2021 Illinois Compiled Statutes|Chapter 65 - MUNICIPALITIES|65 ILCS 5/ - Illinois Municipal Code.|Article 11 - Corporate Powers and Functions

 (from Ch. 24, par. 11-74.5-6)Sec. 11-74.5-6.         Any ordinance authorizing the issuance of the bonds under  this Division may contain covenants regarding (a) the use and disposition  of the revenues and receipts from any home mortgage loans for which the  bonds are to be issued, including the creation and maintenance of such reasonable  and adequate  reserves as the corporate authorities may determine; (b) the insurance to  be carried on any home mortgage loan or bonds and the use and disposition  of the proceeds of such insurance; (c) the appointment of one or more trustees  for the benefit of the bondholders, paying agents or bond registrars; (d)  the investment of any funds held by such trustees or lender; (e) the maximum  interest rate payable on any home mortgage loan (subject to the provisions  of paragraph (a) of Section 11-74.5-4); and (f) the terms and conditions  upon which the holders of the bonds or any portion thereof, or any trustees  therefor, are entitled to the appointment of a receiver by a court of competent  jurisdiction, and such terms and conditions may provide that the receiver  may take possession of the home mortgage loans or any part thereof and maintain,  sell or otherwise dispose of such home mortgage loans, prescribe other payments  and collect, receive and apply all income and revenues thereafter derived  therefrom.  An ordinance authorizing the issuance of bonds under this Division  may provide that payment of the principal of, redemption premium, if any,  and interest on any bonds issued under this Division shall be secured by  a mortgage, pledge, security interest, insurance agreement or indenture  of trust of or with respect to such home mortgage loans and a lien upon  the revenues and receipts derived therefrom or from any notes or other obligations of  lending institutions, with respect to which the bonds are issued.  Such  mortgage, pledge, security interest, insurance agreement or indenture of  trust may contain such covenants and agreements as may be necessary or  appropriate to safeguard the interests of the holders of the bonds and shall  be executed in the manner authorized by the ordinance authorizing the bonds.  The provisions of this Division and any such ordinance and any such mortgage,  pledge, security interest, insurance agreement or indenture of trust shall  constitute a contract with the holder or holders of the bonds and continue  in effect until the principal of, the interest on, and the redemption premiums,  if any, on the bonds have been fully paid or provision made for the payment  thereof, and the duties of the municipality and its corporate authorities  and officers under this Division and any such ordinance and any such mortgage,  pledge, security interest,  insurance agreement or indenture of trust shall  be enforceable as provided therein by any bondholder by mandamus, foreclosure  of any such mortgage, pledge, security interest or indenture of trust or  other appropriate suit, action or proceeding in any court of competent jurisdiction;  provided the ordinance or any mortgage, pledge, security interest, insurance  agreement or indenture of trust under which the bonds are issued may provide  that all such remedies and rights to enforcement may be vested in a trustee  (with full power of appointment) for the benefit of all the bondholders,  which trustee shall be subject to the control of such number of holders  or owners of any outstanding bonds as provided therein.    (Source: P.A. 81-580.)