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| Public Act 096-0019 |
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AN ACT concerning education.
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Be it enacted by the People of the State of Illinois,
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represented in the General Assembly:
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Section 5. The School Code is amended by changing Section | ||||
17-17 and by adding Sections 17-18 and 17-19 as follows:
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(105 ILCS 5/17-17)
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Sec. 17-17.
School board establishment of lines of credit | ||||
Issuance of notes, bonds, or other
obligations in lieu of tax | ||||
anticipation warrants.
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(a) In lieu of issuing tax anticipation warrants in
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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 or other financial institution)
in an amount not to | ||||
exceed 85% of the amount of property
taxes most recently levied | ||||
for educational, operations and maintenance, transportation, | ||||
or other tax levy and building
purposes or any combination | ||||
thereof. Moneys thus borrowed shall be applied to the purposes
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for which the tax or any combination of the taxes may be levied | ||||
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.
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(a-5) In lieu of issuing notes or certificates in | ||
accordance with the provisions of the Revenue Anticipation Act | ||
or Section 18-18 of this Code, the school board of a school | ||
district having a population of 500,000 or less inhabitants may | ||
anticipate revenues due in the current fiscal year or expected | ||
to be due in the next subsequent fiscal year and issue notes, | ||
bonds, or other obligations (and in connection with that | ||
issuance, establish a line of credit with a bank or other | ||
financial institution) in an amount not to exceed the | ||
following: | ||
(1) if anticipating revenues due in the current fiscal | ||
year, 85% of the amount or amounts of the revenues due in | ||
the current fiscal year as certified by the State | ||
Superintendent of Education or other official in a position | ||
to provide assurances as to the amounts; and | ||
(2) if anticipating revenues expected to be due in the | ||
next subsequent fiscal year, 50% of the amount or amounts | ||
of the revenues due in the current fiscal year as certified | ||
by the State Superintendent of Education or other official | ||
in a position to provide assurances as to the amounts. | ||
All moneys so borrowed shall be repaid exclusively from the | ||
anticipated revenues within 60 days after the revenues have | ||
been received. | ||
(b) Borrowing authorized under subsections (a) and (a-5) | ||
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.
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(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
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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 or other revenue, 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 or other revenues become
available and | ||
may contain any other terms, restrictions, or
limitations not | ||
inconsistent with the provisions of this
Section.
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(Source: P.A. 92-620, eff. 7-11-02.)
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(105 ILCS 5/17-18 new)
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Sec. 17-18. Establishment of lines of credit by other | ||
educational entities. | ||
(a) In lieu of borrowing in accordance with the provisions | ||
of Section 18-20 of this Code, an entity, such as a special | ||
education cooperative or other such joint agreement or an | ||
intergovernmental agreement, may anticipate revenues due in | ||
the current fiscal year or expected to be due in the next | ||
subsequent fiscal year and issue notes or other obligations | ||
(and in connection with that issuance, establish a line of | ||
credit with a bank or other financial institution) in an amount | ||
not to exceed the following: | ||
(1) if anticipating revenues due in the current fiscal | ||
year, 85% of the amount or amounts of State categorical or | ||
grant payments due in the current fiscal year as certified | ||
by the State Superintendent of Education or other official | ||
in a position to provide assurances as to the amounts; and | ||
(2) if anticipating revenues expected to be due in the | ||
next subsequent fiscal year, 50% of the amount or amounts | ||
of State categorical or grant payments due in the current | ||
fiscal year as certified by the State Superintendent of | ||
Education or other official in a position to provide | ||
assurances as to the amounts. | ||
All moneys so borrowed shall be repaid exclusively from | ||
such anticipated revenues within 60 days after the revenues | ||
have been received. | ||
(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 borrowing or establishing a line of credit | ||
under this Section, the regional superintendent of schools or | ||
governing board, as the case may be, shall authorize, by | ||
executive order or resolution, the borrowing or line of credit. | ||
The executive order or 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 executive order or resolution shall direct | ||
the relevant officials to make arrangements to set apart and | ||
hold the revenue, as received, that will be used to repay the | ||
borrowing. In addition, the executive order or resolution may | ||
authorize the relevant officials to make partial repayments of | ||
the borrowing as the revenues become available and may contain | ||
any other terms, restrictions, or limitations not inconsistent | ||
with the provisions of this Section. | ||
(105 ILCS 5/17-19 new) | ||
Sec. 17-19. Establishment of lines of credit by regional | ||
superintendents. | ||
(a) In lieu of borrowing in accordance with the provisions | ||
of Section 18-20 of this Code, a regional superintendent of | ||
schools, in his or her official capacity as regional | ||
superintendent of schools, may anticipate revenues due in the | ||
current fiscal year or expected to be due in the next | ||
subsequent fiscal year and issue notes or other obligations | ||
(and in connection with that issuance, establish a line of | ||
credit with a bank or other financial institution) in an amount | ||
not to exceed the following: | ||
(1) if anticipating revenues due in the current fiscal | ||
year, 85% of the amount or amounts of State categorical or | ||
grant payments due in the current fiscal year as certified | ||
by the State Superintendent of Education or other official | ||
in a position to provide assurances as to the amounts; and | ||
(2) if anticipating revenues expected to be due in the | ||
next subsequent fiscal year, 50% of the amount or amounts | ||
of State categorical or grant payments due in the current | ||
fiscal year as certified by the State Superintendent of | ||
Education or other official in a position to provide | ||
assurances as to the amounts. | ||
All moneys so borrowed shall be repaid exclusively from | ||
such anticipated revenues within 60 days after the revenues | ||
have been received. | ||
(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 borrowing or establishing a line of credit | ||
under this Section, the regional superintendent of schools, in | ||
his or her official capacity as regional superintendent of | ||
schools, shall authorize, by executive order or resolution, the | ||
borrowing or line of credit. The executive order or 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 executive order or | ||
resolution shall direct the relevant officials to make | ||
arrangements to set apart and hold the revenue, as received, | ||
that will be used to repay the borrowing. In addition, the | ||
executive order or resolution may authorize the relevant | ||
officials to make partial repayments of the borrowing as the | ||
revenues become available and may contain any other terms, | ||
restrictions, or limitations not inconsistent with the | ||
provisions of this Section.
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Section 99. Effective date. This Act takes effect upon | ||
becoming law.
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