(30 ILCS 440/5)
Sec. 5. Bond Proceeds.
A. The proceeds of any Bonds issued pursuant to this Act, including investment income thereon, shall be held in trust in the Master Bond Fund for the following purpose and in such amounts as determined by the Director:
1. Paying the principal and interest on any
outstanding federal advance received by the Department under Section 1201, et seq., of the Social Security Act (42 U.S.C. Section 1321), as amended, or any similar federal law;
2. Being deposited into the State's account in the
Unemployment Trust Fund of the United States Treasury for the purpose of: (i) avoiding anticipated deficiencies in that account or (ii) funding a surplus in that account, when doing either (i) or (ii) will result in a savings to the State or employers or both;
3. Paying the costs of issuing or refinancing any
such Bonds;
4. Providing an appropriate reserve for any such
Bonds to the extent that the Department determines that an appropriate reserve is warranted; and
5. Paying capitalized interest on the Bonds for the
period determined necessary by the Department, not to exceed 2 years.
B. Excess Bond proceeds remaining available after the payments and deposits required pursuant to Section 5A1 through 5A5 above have been made, may be used in the following manner as determined by the Director:
1. To purchase, redeem or defease outstanding Bonds,
to the extent such action is legally available and does not impair the tax-exempt status of any of the Bonds which are, in fact, tax-exempt; or
2. To pay any scheduled interest payment or payments
due on any outstanding Bonds; or
3. Deposited in the State's account in the
Unemployment Trust Fund of the United States Treasury.
(Source: P.A. 93-634, eff. 1-1-04.)
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Last modified: February 18, 2015