(105 ILCS 5/34A-501) (from Ch. 122, par. 34A-501)
Sec. 34A-501.
Power to issue Bonds.
(a) The Authority may incur
indebtedness by the issuance of its negotiable full faith and credit
general obligation bonds (the "Bonds") in an amount not to exceed at any
time the sum of $695,000,000 (excluding Bonds to be issued to refund
outstanding Bonds) for the purpose of providing the Board with moneys
for ordinary and necessary expenditures for educational purposes,
maintenance of school facilities, and other operational needs of the
Board; payment of outstanding debt obligations of the Board and of the
City, the proceeds of which were used to provide financing for the
Board; providing or increasing a working cash fund as provided by paragraph
(d) of this Section 34A-501; providing the Board with moneys for school
construction and rehabilitation purposes as provided by paragraph (e) of
this Section; payment of fees for arrangements as provided by paragraph (c)
of Section 34A-502; payment of interest on Bonds; establishment of reserves to
secure Bonds; the payment of costs of issuance of Bonds; payment of principal
of or interest or redemption premium on any Bonds or notes of the Authority;
and all other expenditures of the Authority incidental to and necessary or
convenient for carrying out its corporate purposes and powers, and in an
additional amount not to exceed at any time the sum of $427,000,000 (excluding
Bonds to be issued to refund outstanding Bonds) for the purpose of providing
the Board with moneys for ordinary and necessary expenditures for educational
purposes, maintenance of school facilities, and other operational needs of the
Board; payment of fees for arrangements as provided by paragraph (c) of Section
34A-502; payment in connection with agreements or contracts entered into as
provided for in Section 7 of the Bond Authorization Act; payment of interest on
Bonds; establishment of reserves to secure
Bonds; the payment of costs of issuance of Bonds; payment of principal of or
interest or redemption premium on any Bonds or notes of the Authority; and all
other expenditures of the Authority incidental to and necessary or convenient
for carrying out its corporate purposes and powers. No more than $40,000,000
of proceeds of Bonds of the Authority shall be deposited in a working cash fund
as provided by paragraph (d) of this Section 34A-501. No more than $95,000,000
of proceeds of Bonds of the Authority shall be provided to the Board for school
construction and rehabilitation purposes; provided that not less than
$32,000,000 nor more than $37,000,000 of such proceeds shall be used by the
Board for constructing new school buildings or providing additions
to school buildings.
(b) The Authority may from time to time (i) issue Bonds to refund
any outstanding Bonds or notes of the Authority whether the Bonds or
notes to be refunded have or have not matured or become redeemable and (ii)
issue Bonds partly to refund Bonds or notes then outstanding and partly for
any other purpose hereinabove set forth.
(c) Bonds issued in accordance with paragraph (a) of this Section
may be issued in excess of any statutory limitation as
to debt, and may be issued without referendum.
(d) The Authority may create a working cash fund to provide working
cash for the Board. Amounts in the working cash fund shall be used by the
Authority to make loans from time to time to the Board to enable the Board
to cover anticipated cash flow deficiencies which it may experience within
the fiscal year of the Board in which the loan is made, all as and to the
extent determined by the Authority. The loans shall be made in such amounts
and upon such terms as the Board and the Authority shall agree. The Authority
shall not under any circumstance be obligated to make any such loan. No
interest need be charged on any such loan. The Board may pledge and assign
to the repayment of such loans and may apply to that repayment any particular
receipts of the Board which have not been pledged to the payment of any of
the Board's bonds, notes, tax anticipation warrants or state aid anticipation
certificates. Each loan shall be required to be repaid in full by the Board
within the fiscal year of the Board in which the loan was made and, in any
event, within 11 months from the date on which it was made. Interest and
other investment earnings on the working cash fund shall be deposited in
and shall be part of that fund. Whenever the Authority shall determine
that all or part of the working cash fund is no longer needed for making
loans to the Board as provided in this paragraph, the Authority shall reduce
the amount of the fund so that the amount in the fund does not exceed the
amount which the Authority determines is necessary for use for making future
loans to the Board as provided in this paragraph. Upon any such reduction
in the amount of the working cash fund and upon
its abolition, all amounts in excess of the amounts to remain in the fund
shall be deposited in the debt service fund established by the Authority
for the Bonds for use for paying principal of Bonds at their maturity or
on earlier redemption dates, redemption premium and any interest accruing
on those Bonds, all as the Authority shall determine and direct.
(e) For purposes of this Section, "school construction and
rehabilitation purposes" means constructing new school buildings and
rehabilitating and accomplishing the deferred maintenance existing as of
August 31, 1984, of school buildings, including, without limitation,
repairing, modernizing, providing additions to and facilities in, altering
and reconstructing school buildings and equipment.
Any interest or other investment earnings on proceeds of Bonds issued for
the purpose of providing the Board with moneys for school construction and
rehabilitation purposes shall be applied as provided in the resolution
authorizing such Bonds, which resolution shall require those earnings to
be used for the same purpose as the proceeds of those Bonds or for the
payment of principal of or interest or redemption premium on any Bonds,
either at maturity or an earlier redemption date. Application by the
Authority of any proceeds of Bonds issued for the purpose of providing the
Board with moneys for school construction and rehabilitation purposes,
or interest or other investment earnings thereon, shall be in the sole
judgment and discretion of the Authority, but no such moneys shall be so
provided unless the Authority shall have found and determined, in its sole
judgment and discretion, that such moneys are to be used for those purposes
and not for providing the Board with moneys for its ordinary and necessary
expenditures for educational purposes, maintenance of school facilities or
other operational needs. The Authority may, in making its findings and
determinations, rely upon information provided by or on behalf of the Board.
The Authority may from time to time make and amend regulations and issue
directives with respect to the use and application of such moneys.
The Authority may, at any time, in its sole judgment and discretion,
deposit unexpended proceeds of Bonds issued for the purpose of providing
the Board with moneys for school construction and rehabilitation purposes
or interest or other investment earnings thereon solely in a debt service
fund for any Bonds and shall apply such moneys to the payment of principal
of or interest or redemption premium on Bonds, at maturity or an earlier
redemption date. In the resolution authorizing Bonds, the
Authority may make commitments or covenants to holders of Bonds with
respect to such use of such unexpended proceeds and interest or other
investment earnings.
(Source: P.A. 88-511.)
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