CHICAGO — Illinois has agreed to the Illinois Medical District Commission’s request that a $4.5 million capital grant be diverted to cure a debt-service coverage default and ensure bondholders receive full payment later this year on $40 million of state moral obligation-backed bonds.

The Illinois Finance Authority issued the bonds in 2006 on the 70-year-old commission’s behalf as it sought to undertake a massive city-, county-, and state-supported expansion of its campus on the near-west side of Chicago.

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