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Public Act 92-0620
HB3729 Enrolled LRB9212200NTpk
AN ACT concerning schools.
Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
Section 5. The School Code is amended by adding Sections
17-17 and 34-23.5 as follows:
(105 ILCS 5/17-17 new)
Sec. 17-17. Issuance of notes, bonds, or other
obligations in lieu of tax anticipation warrants.
(a) In lieu of issuing tax anticipation warrants in
accordance with Section 17-16 of this Code, the school board
of a school district having a population of 500,000 or less
inhabitants may issue notes, bonds, or other obligations (and
in connection with that issuance, establish a line of credit
with a bank) in an amount not to exceed 85% of the amount of
property taxes most recently levied for educational and
building purposes. Moneys thus borrowed shall be applied to
the purposes for which they were obtained and no other
purpose. All moneys so borrowed shall be repaid exclusively
from property tax revenues within 60 days after the property
tax revenues have been received by the board.
(b) Borrowing authorized under subsection (a) of this
Section shall bear interest at a rate not to exceed the
maximum rate authorized by the Bond Authorization Act, from
the date of issuance until paid.
(c) Prior to the board borrowing or establishing a line
of credit under this Section, the board shall authorize, by
resolution, the borrowing or line of credit. The resolution
shall set forth facts demonstrating the need for the
borrowing or line of credit, state the amount to be borrowed,
establish a maximum interest rate limit not to exceed that
set forth in subsection (b) of this Section, and provide a
date by which the borrowed funds shall be repaid. The
resolution shall direct the relevant officials to make
arrangements to set apart and hold the taxes, as received,
that will be used to repay the borrowing. In addition, the
resolution may authorize the relevant officials to make
partial repayments of the borrowing as the taxes become
available and may contain any other terms, restrictions, or
limitations not inconsistent with the provisions of this
Section.
(105 ILCS 5/34-23.5 new)
Sec. 34-23.5. Issuance of notes, bonds, or other
obligations in lieu of tax anticipation warrants.
(a) In lieu of issuing tax anticipation warrants in
accordance with Section 34-23 of this Code, the board may
issue notes, bonds, or other obligations (and in connection
with that issuance, establish a line of credit with a bank)
in an amount not to exceed 85% of the amount of property
taxes most recently levied for educational and building
purposes. Moneys thus borrowed shall be applied to the
purposes for which they were obtained and no other purpose.
All moneys so borrowed shall be repaid exclusively from
property tax revenues within 60 days after the property tax
revenues have been received by the board.
(b) Borrowing authorized under subsection (a) of this
Section shall bear interest at a rate not to exceed the
maximum rate authorized by the Bond Authorization Act, from
the date of issuance until paid.
(c) Prior to the board borrowing or establishing a line
of credit under this Section, the board shall authorize, by
resolution, the borrowing or line of credit. The resolution
shall set forth facts demonstrating the need for the
borrowing or line of credit, state the amount to be borrowed,
establish a maximum interest rate limit not to exceed that
set forth in subsection (b) of this Section, and provide a
date by which the borrowed funds shall be repaid. The
resolution shall direct the relevant officials to make
arrangements to set apart and hold the taxes, as received,
that will be used to repay the borrowing. In addition, the
resolution may authorize the relevant officials to make
partial repayments of the borrowing as the taxes become
available and may contain any other terms, restrictions, or
limitations not inconsistent with the provisions of this
Section.
Section 99. Effective date. This Act takes effect upon
becoming law.
Passed in the General Assembly April 25, 2002.
Approved July 11, 2002.
Effective July 11, 2002.
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