(50 ILCS 465/20)
Sec. 20.
Covenants.
Any ordinances authorizing the issuance of the bonds
under this Act may contain covenants regarding (i) 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 any reasonable and
adequate reserves that the corporate authorities may determine; (ii) the
insurance to be carried on any home mortgage loan or bonds and the use and
disposition of the proceeds of that insurance; (iii) the appointment of one or
more trustees for the benefit of the bondholders, paying agents, or bond
registrants; (iv) the investment of any funds held by the trustee or lender,
notwithstanding any other law to the contrary; (v) the maximum rate payable on
any home mortgage loan; and (vi) the terms and conditions upon which the
holders of the bonds or any portion of the bonds, or any trustees for the
bonds, are entitled to the appointment of a receiver by a court of competent
jurisdiction, and any 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 the 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
Act may provide that payment of the principal of, redemption premium, if any,
on and interest on any bonds issued under this Act shall be secured by a
mortgage, pledge, security interest, insurance agreement, or indenture of trust
of or with respect to any 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. The mortgage, pledge,
security interest, insurance agreement, or indenture of trust 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
of the bonds, and the duties of the Authority and its corporate authorities and
officers under this Act and any ordinance and any mortgage, pledge, security
interest, insurance agreement, or indenture of trust shall be enforceable as
provided therein by any bondholder by mandamus, foreclosure of any mortgage,
pledge, security interest, insurance agreement, 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 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 any number of holders or owners of
any outstanding bonds as provided therein.
(Source: P.A. 92-142, eff. 7-24-01.)
|