20 ILCS 3501/825-35
2021 Illinois Compiled Statutes|Chapter 20 - EXECUTIVE BRANCH|20 ILCS 3501/ - Illinois Finance Authority Act.|Article 825 - Other Powers

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.)