(70 ILCS 2405/16.3) (from Ch. 42, par. 315.3)

Sec. 16.3.

The trustees of any district, having been authorized by an
election held pursuant to the preceding Section, being desirous of
exercising such authority, shall have an estimate made of the cost of the
acquisition of the contemplated waterworks, and by ordinance shall provide
for the issuance of revenue bonds. The ordinance shall set forth a brief
description of the contemplated waterworks, the estimated cost of
acquisition or construction thereof, the amount, rate of interest, time and
place of payment, and other details in connection with the issuance of the
bonds. The bonds shall bear interest at a rate not exceeding that permitted
by "An Act to authorize public corporations to issue bonds, other evidences
of indebtedness and tax anticipation warrants subject to interest rate limitations
set forth therein", approved May 26, 1970, as amended, payable
semi-annually, and shall be payable at such times and places not exceeding
20 years from their date as shall be prescribed in the ordinance providing
for their issuance.

This ordinance may contain such covenants and restrictions upon the
issuance of additional revenue bonds thereafter as may be deemed necessary
or advisable for the assurance of payment of the bonds thereby authorized
and as may be thereafter issued, and shall pledge the revenues derived from
the operation of the waterworks for the purpose of paying all maintenance
and operation costs, principal and interest on all bonds issued under the
provisions of this Act, and for providing an adequate depreciation fund,
which depreciation fund is hereby defined for the purposes of this Act to
be for such replacements as may be necessary from time to time for the
continued effective and efficient operation of the waterworks properties of
such district, and such fund shall not be allowed to accumulate beyond a
reasonable amount necessary for that purpose, the terms and provisions of
which shall be incorporated in the ordinance authorizing the issuance of
the bonds.

(Source: P.A. 83-591.)