(105 ILCS 5/18-18) (from Ch. 122, par. 18-18)
Sec. 18-18.
The board of education of any
school district may borrow money by contracting or entering into loan
agreements and may evidence such borrowings by the issuance of State aid
anticipation certificates. Such certificates may be issued without
submission to the electors of the school district or city for approval
of the question of the issuance of such certificates. Such certificates
shall bear interest or discount to maturity at a rate not to exceed
the rate permissible for
such board's full faith and credit general obligation notes and shall
mature in such a manner so that no such certificates shall be
outstanding for more than 13 months.
State aid anticipation
certificates shall be payable solely from payments to be made at any time,
whether made before or after August 1, of any year, pursuant
to this Article 18 and may be secured by assignment of such payments with
the assignee receiving such payments directly from the State Superintendent
of Education.
Prior to the issuance of any such certificates the State Superintendent
of Education
shall certify the appropriated amount of State aid to be paid the
district in the current fiscal year. The amount of certificates to be
issued shall not exceed 75% of the amounts of
State aid certified by the State Superintendent of Education after
subtracting the amount of funds available for transfer from the
district's working cash fund in anticipation of State aid to be paid
such district pursuant to this Article 18. The amount of State aid
anticipation certificates shall not be counted as indebtedness of the
district for purposes of any debt limits nor are such certificates full
faith and credit general obligation notes or tax anticipation warrants;
provided, however, that the total amount of State aid anticipation
certificates, general obligation notes and tax anticipation warrants
outstanding for any
fiscal year may not exceed 85% of the taxes levied by the district for that
year.
Any school district may borrow up to 100% of the amount of
State aid to be received in July, as certified by the State Superintendent
of Education. Such anticipation certificates shall be repaid not later
than August 1 from State aid payments received in July.
Whenever the board of a district desires to issue such State aid
anticipation certificates as herein authorized, it shall adopt a
resolution designating the purposes for which the proceeds of the
certificates are to be expended and fixing the amount of the
certificates proposed to be issued, the maturity thereof, and optional
provisions, if any, and the rate of interest or discount to maturity
thereon. Such resolution may provide for the appointment of a trustee,
which may be any trust company or bank having the power of a trust company
within the State, and for the establishment of such funds or accounts to
be maintained by such trustee as the school district shall deem necessary
to provide for the security and payment of the certificates. If such
resolution provides for the appointment of a trustee, such trustee shall be
considered the assignee of any payments assigned by the school district
pursuant to such resolution and this Section. Any amounts paid by the State
Superintendent of Education to such trustee as assignee pursuant to Section 18-11 shall
be deposited
in the funds or accounts established pursuant to such resolution, and shall
be held by such trustee in trust for the benefit of the holders of the
certificates, and such holders shall have a lien on and a security interest
in such funds or accounts so long as the certificates remain outstanding
and unpaid.
Except as provided otherwise in this Section, such amounts shall be used
solely for the payment of certificates at maturity and shall not be used
for any other purpose so long as the certificates remain outstanding and
unpaid. Pending such application such amounts shall be invested by such
trustee in investments of the kind specified in the Public Funds
Investment Act. Upon payment in full of the certificates, any amounts held
by such trustee, including earnings on investments not used for payment
of the certificates, shall be paid to such district.
Said certificates shall be issued in the corporate name of the school
district. They shall be signed by the president and secretary of said
board. They shall be sold by the board upon such terms as may be
approved by the board, and the proceeds thereof shall be received by the
treasurer and expended by the board for the purposes provided in the
resolution authorizing any such certificates.
Upon the issuance of said certificates, the
board shall give written notification to the appropriate
regional superintendent and the State Superintendent of Education of the
issuance of the certificates and the terms thereof, including, but not limited
to, any assignment of State aid
payments made pursuant to this Section, the name and address of each
assignee, the amounts and dates of the payments to be made by the State
Superintendent of Education directly to each assignee under Section 18-11, the
amount
of the certificates held by each assignee and the maturity date of the
certificates.
(Source: P.A. 87-839; 87-1215; 88-641, eff. 9-9-94.)
|