State of Illinois
92nd General Assembly

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HB1741 Engrossed                               LRB9204822NTsb

 1        AN ACT concerning schools.

 2        Be  it  enacted  by  the People of the State of Illinois,
 3    represented in the General Assembly:

 4        Section 5.  The School Code is amended by adding  Section
 5    34-23.5 as follows:

 6        (105 ILCS 5/34-23.5 new)
 7        Sec.   34-23.5.  Issuance   of  notes,  bonds,  or  other
 8    obligations in lieu of tax anticipation warrants.
 9        (a)  In lieu of  issuing  tax  anticipation  warrants  in
10    accordance  with  Section  34-23  of this Code, the board may
11    issue notes, bonds, or other obligations (and  in  connection
12    with  that  issuance, establish a line of credit with a bank)
13    in an amount not to exceed 85%  of  the  amount  of  property
14    taxes  most  recently  levied  for  educational  and building
15    purposes.  Moneys thus  borrowed  shall  be  applied  to  the
16    purposes  for  which they were obtained and no other purpose.
17    All moneys so borrowed shall be repaid from  the  taxes  when
18    collected.
19        (b)  Borrowing  authorized  under  subsection (a) of this
20    Section shall bear interest at  a  rate  not  to  exceed  the
21    maximum  rate  authorized by the Bond Authorization Act, from
22    the date of issuance until paid.
23        (c)  Prior to the board borrowing or establishing a  line
24    of  credit  under this Section, the board shall authorize, by
25    resolution, the borrowing or line of credit.  The  resolution
26    shall   set  forth  facts  demonstrating  the  need  for  the
27    borrowing or line of credit, state the amount to be borrowed,
28    establish a maximum interest rate limit not  to  exceed  that
29    set  forth  in  subsection (b) of this Section, and provide a
30    date by which  the  borrowed  funds  shall  be  repaid.   The
31    resolution  shall  direct  the  relevant  officials  to  make
HB1741 Engrossed            -2-                LRB9204822NTsb
 1    arrangements  to  set  apart and hold the taxes, as received,
 2    that will be used to repay the borrowing.  In  addition,  the
 3    resolution  may  authorize  the  relevant  officials  to make
 4    partial repayments of  the  borrowing  as  the  taxes  become
 5    available  and  may contain any other terms, restrictions, or
 6    limitations not inconsistent  with  the  provisions  of  this
 7    Section.

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