How improvement district money is managed and used

payment of bonds; use of surplus; insufficient funds. (a) All moneys collected on account of assessments and interest for any improvement after the issuance of any bonds shall be kept by the director of finance in a special fund and applied to the payment of interest and principal of bonds and administrative costs issued for the improvement until the bonds have been paid. The director of finance of the County shall pay the principal of the bonds at maturity and the interest thereon as and when the same become due at the place or places and in the manner prescribed for the payment under this chapter and the proceedings authorizing those bonds from such special fund. (b) If any surplus remains in any special fund after the disbursement of funds described in section 12-28.1 of this chapter, such surplus or premium shall be credited to and become a part of a fund to be known as the improvement district revolving fund, the moneys in which shall be available to make up deficiencies in the proceeds of bonds sold below par, to cover deficiencies in interest realized on account of diminishing balances of installments outstanding, and to advance interest due on bonds outstanding prior to collection of annual assessments, and also for the purpose of paying all expenses in connection with the sale of delinquent improvement district assessment units and the prices of the delinquent assessment units as are bid for and purchased by the director of finance. The director of finance may upon such purchase, transfer the proper amounts so bid to the proper special funds for the respective improvement districts concerned. The director of finance may also use the improvement district revolving fund to advance the cost of pre- formation activities pursuant to section 12-7 with the expectation that the improvement district revolving fund will be reimbursed after the improvement district is formed. (c) If moneys in the applicable special fund prove insufficient at any time to pay the principal and interest, or the interest only, as the case may be, on bonds outstanding, moneys shall be transferred from the reserve fund established pursuant to section 12-50, or from the improvement district revolving fund into such special fund in such amounts as will enable the director of finance to make the payments of principal or interest, or interest only, as the same becomes due. IMPROVEMENTS BY ASSESSMENTS § 12-50