A fair conversion gives a real estate interest to the buyer of the contract from the conclusion of the contract. “The buyer in a contract to miss real estate is the owner of the property tax.” Farmers State Bank v Neese, 281 Ill App 3d 98, 102, 665 NE2d 534, 536, 216 Iii Dec 474, 476 (4. D 1996). Over the duration of the contract, pawn rights may be attached to the buyer`s fair property and the buyer may transfer his reasonable interest to a lender as collateral for a loan. See First Illinois National Bank v Hans, 143 Ill App 3d 1033, 1037, 493 NE2d 1171,1173, 98 Ill Dec 150, 152 (2. D 1986). Temperate contracts are often used as a means of supporting economic development through the issuance of exempt municipal bonds. The ownership of the project belongs to a public body, usually an industrial development authority, which enters into a tempered contract with the private company which will have all the rights to the economic property of the project. The bonds are issued by the Industrial Development Authority and sold on the public market to raise funds for the acquisition of the project. These bonds are paid at a lower interest rate, with income tax-exempt for the bondholder. The staggered payments made by the private company to the public body as part of the conditional agreement are used by the public authority to pay the principal and interest of the bondholders under the terms of the bonds.
Temperamental sellers may, however, choose to cancel temperamental contracts outside the Illinois Mortgage Foreclosure Law. To declare forfeiture, the following conditions must be met: (1) “a valid contract containing a forfeiture clause” and (2) a buyer who is actually late. Kirkpatrick, 44 Ill 3d at 577, 358 at 680, 3 Ill Dec at 282. To exercise the forfeiture option, the seller must make a clear return of recovery to the buyer. Otherwise, the contractual benefit obligation will not be extinguished. Bocchetta, 115 Ill App 3d at 299, 450 NE2d at 909, 71 Ill Dec at 221. As a general rule, the expiry clause of the contract provides for the procedure that the seller must follow in order for the contract to be effectively cancelled. These procedures must be followed to the letter in order for a court to maintain the forfeiture of the contract. Id. at 300-01, 450 NE2d at 910, 71 Ill Dec around 222. Governments often cut temperate agreements with tax-free municipal loans to finance economic development projects. Less often, governments would link tiered agreements with tax-exempt municipal obligations for land conservation projects.