(105 ILCS 5/34-23.5)
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.
(Source: P.A. 92-620, eff. 7-11-02.)