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| [ Introduced ] | [ Engrossed ] | [ House Amendment 001 ] |
| [ House Amendment 002 ] |
92_HB3729enr HB3729 Enrolled LRB9212200NTpk 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 Sections 5 17-17 and 34-23.5 as follows: 6 (105 ILCS 5/17-17 new) 7 Sec. 17-17. 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 17-16 of this Code, the school board 11 of a school district having a population of 500,000 or less 12 inhabitants may issue notes, bonds, or other obligations (and 13 in connection with that issuance, establish a line of credit 14 with a bank) in an amount not to exceed 85% of the amount of 15 property taxes most recently levied for educational and 16 building purposes. Moneys thus borrowed shall be applied to 17 the purposes for which they were obtained and no other 18 purpose. All moneys so borrowed shall be repaid exclusively 19 from property tax revenues within 60 days after the property 20 tax revenues have been received by the board. 21 (b) Borrowing authorized under subsection (a) of this 22 Section shall bear interest at a rate not to exceed the 23 maximum rate authorized by the Bond Authorization Act, from 24 the date of issuance until paid. 25 (c) Prior to the board borrowing or establishing a line 26 of credit under this Section, the board shall authorize, by 27 resolution, the borrowing or line of credit. The resolution 28 shall set forth facts demonstrating the need for the 29 borrowing or line of credit, state the amount to be borrowed, 30 establish a maximum interest rate limit not to exceed that 31 set forth in subsection (b) of this Section, and provide a HB3729 Enrolled -2- LRB9212200NTpk 1 date by which the borrowed funds shall be repaid. The 2 resolution shall direct the relevant officials to make 3 arrangements to set apart and hold the taxes, as received, 4 that will be used to repay the borrowing. In addition, the 5 resolution may authorize the relevant officials to make 6 partial repayments of the borrowing as the taxes become 7 available and may contain any other terms, restrictions, or 8 limitations not inconsistent with the provisions of this 9 Section. 10 (105 ILCS 5/34-23.5 new) 11 Sec. 34-23.5. Issuance of notes, bonds, or other 12 obligations in lieu of tax anticipation warrants. 13 (a) In lieu of issuing tax anticipation warrants in 14 accordance with Section 34-23 of this Code, the board may 15 issue notes, bonds, or other obligations (and in connection 16 with that issuance, establish a line of credit with a bank) 17 in an amount not to exceed 85% of the amount of property 18 taxes most recently levied for educational and building 19 purposes. Moneys thus borrowed shall be applied to the 20 purposes for which they were obtained and no other purpose. 21 All moneys so borrowed shall be repaid exclusively from 22 property tax revenues within 60 days after the property tax 23 revenues have been received by the board. 24 (b) Borrowing authorized under subsection (a) of this 25 Section shall bear interest at a rate not to exceed the 26 maximum rate authorized by the Bond Authorization Act, from 27 the date of issuance until paid. 28 (c) Prior to the board borrowing or establishing a line 29 of credit under this Section, the board shall authorize, by 30 resolution, the borrowing or line of credit. The resolution 31 shall set forth facts demonstrating the need for the 32 borrowing or line of credit, state the amount to be borrowed, 33 establish a maximum interest rate limit not to exceed that HB3729 Enrolled -3- LRB9212200NTpk 1 set forth in subsection (b) of this Section, and provide a 2 date by which the borrowed funds shall be repaid. The 3 resolution shall direct the relevant officials to make 4 arrangements to set apart and hold the taxes, as received, 5 that will be used to repay the borrowing. In addition, the 6 resolution may authorize the relevant officials to make 7 partial repayments of the borrowing as the taxes become 8 available and may contain any other terms, restrictions, or 9 limitations not inconsistent with the provisions of this 10 Section. 11 Section 99. Effective date. This Act takes effect upon 12 becoming law.