(50 ILCS 340/0.01) (from Ch. 146 1/2, par. 3.01)
Sec. 0.01.
Short title.
This Act may be cited as the
Investment of Municipal Funds Act.
(Source: P.A. 86-1324.)
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(50 ILCS 340/1) (from Ch. 146 1/2, par. 3.1)
Sec. 1.
Every county, park district, sanitary district, or other municipal
corporation, holding in its treasury funds which are set aside for use for
particular purposes, including any funds that are disbursed to a county or
municipality as their share of the taxes collected under the "Motor Fuel Tax
Law", but which are not immediately necessary for those purposes, by ordinance,
may use those funds, or any of them, in the purchase of tax anticipation
warrants issued by the county, park district, sanitary district, or other
municipal corporation possessing the funds against taxes levied by that
county, park district, sanitary district, or other municipal corporation.
These warrants shall bear interest not to exceed four percent annually.
All interest upon these warrants, and all money paid in redemption of these
warrants, or received from the resale thereof, shall at once be credited
to and placed in the particular fund used to purchase the specified warrants.
Likewise, every county, park district, sanitary district, or other municipal
corporation, by resolution or ordinance may use the money in the specified
funds in the purchase of municipal bonds issued by the county, park district,
sanitary district, or other municipal corporation, possessing the funds
and representing an obligation and pledging the credit of that county, park
district, sanitary district, or other municipal corporation, or bonds and
other interest bearing obligations of the United States, of the
State
of Illinois, or of any other state or of any political subdivision or agency
of the State of Illinois or of any other state, whether the interest earned
thereon is taxable or tax-exempt under federal law, including savings
accounts and savings certificates of deposit
of any State or National Bank if such accounts and certificates are fully
insured by the Federal Deposit Insurance Corporation, withdrawable capital
accounts or deposits of State or federal chartered savings and loan
associations which are fully insured by the Federal Savings and Loan
Insurance Corporation, or treasury notes and other securities issued by
agencies of the United States. All interest upon these bonds or
obligations and all money paid in redemption of these bonds or obligations
or realized from the sale thereof, if afterwards sold, shall at once be
credited to and placed in the particular fund used to purchase the
specified bonds or obligations.
No bank or savings and loan association shall receive public funds as
permitted by this Section, unless it has complied with the requirements
established pursuant to Section 6 of "An Act relating
to certain investments of public funds by public agencies", approved July
23, 1943, as now or hereafter amended.
This amendatory Act of 1975 is not a limit on any home rule unit.
(Source: P.A. 93-360, eff. 7-24-03.)
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(50 ILCS 340/2) (from Ch. 146 1/2, par. 3.2)
Sec. 2.
If at any time it is deemed expedient to convert into money
any tax anticipation warrants theretofore issued and purchased with
public funds pursuant to the provisions of Section 1 of this Act, before
receipt of the taxes in anticipation of which the warrants were issued,
the governing body of the county, park district, sanitary district, or
other municipal corporation, by ordinance or resolution, may authorize a
resale of such warrants and adjust the interest rate thereon or may
authorize the issuance and sale of a like principal amount of any
warrants for the same purpose and in anticipation of the same taxes as
the original warrants were issued. These new warrants may have any date
subsequent to the date of the original tax anticipation warrants. The
new tax anticipation warrants shall be of the denomination and shall
bear interest at the rate, not to exceed the statutory rate, that is
authorized by the ordinance or resolution specified in this section.
Simultaneously with the delivery of these new tax anticipation
warrants a like principal amount of the original warrants that were
issued against the same tax that is anticipated by the new warrants
shall be paid and cancelled. The proceeds of the sale of these new tax
anticipation warrants shall be used first to restore to the fund or
funds so invested in the original tax anticipation warrants, money
equivalent to the par value and accrued interest of the original tax
anticipation warrants and the balance, if any, shall revert to the fund
for the creation of which the tax so anticipated was levied.
When tax anticipation warrants are reissued they shall bear the index
numerical designation of the original warrants and shall be subnumbered
consecutively in the order of reissuance, and shall be paid in the
direct order of reissuance, beginning with the earliest subnumber.
In determining the priority of payment of more than one series of tax
anticipation warrants against the collection of the same tax the various
series shall be treated as having been issued on the date of the
original issue of each series of warrants. The series prior in point of
time as thus determined shall be paid first.
This Act shall not apply to cities, villages, and incorporated towns.
(Source: Laws 1941, vol. 2, p. 473 .)
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