(65 ILCS 5/8-1-13) (from Ch. 24, par. 8-1-13)
Sec. 8-1-13.
Every municipality holding in its treasury funds which are set
aside for use for particular purposes, 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
municipality possessing the funds against taxes levied by that
municipality. These warrants shall bear interest not to exceed
the maximum rate authorized by the Bond Authorization Act, as amended at
the time of the making of the contract. 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.
However, a municipality so using any of its funds for the purchase of
such tax anticipation warrants shall not apply to the payment thereof while
so held by it any taxes against and in anticipation of which the warrants
were issued, unless and until all warrants and the interest thereon, issued
by that municipality against and in anticipation of the same taxes and sold
to other purchasers have been first paid or money sufficient for the
payment thereof has been deposited in the municipal treasury as a special
fund to be used solely for the purpose of paying to the other purchasers
the warrants and the interest thereon when presented. Nothing contained in
this section shall prevent the resale or reissue of any warrants as
provided in Section 8-1-14.
Likewise, every municipality by ordinance may use the money in those
funds in the purchase of bonds issued by the municipality, possessing the
funds and representing the obligation and pledging the credit of that
municipality, or bonds and other interest bearing obligations of the United
States or of the State of Illinois. 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 specified
bonds or obligations.
With respect to instruments for the payment of money issued under this
Section either before, on, or after the effective date of this amendatory
Act of 1989, it is and always has been the intention of the General
Assembly (i) that the Omnibus Bond Acts are and always have been supplementary
grants of power to issue instruments in accordance with the Omnibus Bond
Acts, regardless of any provision of this Act that may appear to be or to
have been more restrictive than those Acts, (ii) that the provisions of
this Section are not a limitation on the supplementary authority granted by
the Omnibus Bond Acts, and (iii) that instruments issued under this Section
within the supplementary authority granted by the Omnibus Bond Acts are not
invalid because of any provision of this Act that may appear to be or to
have been more restrictive than those Acts.
(Source: P.A. 86-4.)
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