(65 ILCS 5/8-4-6) (from Ch. 24, par. 8-4-6)
Sec. 8-4-6.
The refunding bonds shall be of such form and denomination,
payable at such place, bear such date, and be executed by such officials as
may be provided by the corporate authorities of the municipality in the
bond ordinance. They shall mature within not to exceed 20 years from their
date, and may be made callable on any interest payment date at par and
accrued interest after notice has been given at the time and in the manner
provided in the bond ordinance.
If there is no default in payment of the principal of or interest upon
the refunding bonds, and if after setting aside a sum of money equal to the
amount of interest that will accrue on the refunding bonds, and a sum of
money equal to the amount of principal that will become due thereon, within
the next 6 months period, the treasurer and comptroller, if there is a
comptroller, of the municipality shall use the money available from the
proceeds of taxes levied for the payment of the refunding bonds in calling
them for payment, if, by their terms, they are subject to redemption.
However, a municipality may provide in the bond ordinance that, whenever
the municipality is not in default in payment of the principal of or
interest upon the refunding bonds and has set aside the sums of money
provided in this paragraph for interest accruing and principal maturing
within the next 6 months period, the money available from the proceeds of
taxes levied for the payment of refunding bonds shall be used, first, in
the purchase of the refunding bonds at the lowest price obtainable, but not
to exceed their par value and accrued interest, after sealed tenders for
their purchase have been advertised for as may be directed by the corporate
authorities thereof.
Refunding bonds called for payment and paid or purchased under this
section shall be marked paid and cancelled.
(Source: Laws 1961, p. 576.)
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