Illinois Code § 745 ILCS 10/7-101

When permitted by law to transfer any of its functions or
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services to, to lease its property to or to perform any function,
service or act with or for any other local public entity or employee
thereof by agreement with such other local public entity, a local public
entity may agree with the other entity as to the manner in which
liability for an injury resulting from such function, service or act is
to be allocated or shared. Such agreement may be expressed by
resolution, contract, lease, ordinance or in any other manner provided
by law.

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