(40 ILCS 5/15-167.2)
(from Ch. 108 1/2, par. 15-167.2)
To issue bonds.
To borrow money and, in evidence of
its obligation to repay the borrowing, to issue bonds for the purpose of
financing the cost of any project. The bonds shall be authorized pursuant
to a resolution to be adopted by the board setting forth all details in
connection with the bonds.
The principal amount of the outstanding bonds of the board shall not at
any time exceed $20,000,000.
The bonds may be issued in one or more series, bear such date or dates,
become due at such time or times within 40 years, bear interest payable at
such intervals and at such rate or rates, which rates may be fixed or
variable, be in such denominations, be in such form, either coupon,
registered or book-entry, carry such conversion, registration and exchange
privileges, be subject to defeasance upon such terms, have such rank or
priority, be executed in such manner, be payable in such medium of payment
at such place or places within or without the State of Illinois, make
provision for a corporate trustee within or without the State of
Illinois with respect to such bonds, prescribe the rights, powers and
duties thereof to be exercised for the benefit of the board, the system and
the protection of the bondholders, provide for the holding in trust,
investment and use of moneys, funds and accounts held in connection
therewith, be subject to such terms of redemption with or without premium,
and be sold in such manner at private or public sale and at such price, all
as the board shall determine. Whenever bonds are sold at a price less than
par, they shall be sold at such price and bear interest at such rate or
rates that either the true interest cost (yield) or the net interest rate,
as may be selected by the board, received upon the sale of such bonds does
not exceed the maximum interest rate permitted by the Bond Authorization Act,
as amended at the time of the making of the contract.
Any bonds may be refunded or advance refunded upon such terms as the
board may determine for such term of years, not exceeding 40 years, and in
such principal amount, as may be deemed necessary by the board. Any
redemption premium payable upon the redemption of bonds may be payable from
the proceeds of refunding bonds issued for the purpose of refunding such
bonds, from any lawfully available source or from both refunding bond
proceeds and such other sources.
The bonds or refunding bonds shall be obligations of the board payable
from the income, interest and dividends derived from investments of
the board, all as may be designated in the resolution of the board
authorizing the issuance of the bonds. The bonds shall be secured as
provided in the authorizing resolution, which may, notwithstanding any
other provision of this Code, include a specific pledge or assignment of
and lien on or security interest in the income, interest and dividends
derived from investments of the board and a specific pledge or assignment
of and lien on or security interest in any funds, reserves or accounts
established or provided for by the resolution of the board authorizing the
issuance of the bonds.
The bonds or refunding bonds shall not be payable from any
employer or employee contributions derived from State appropriations nor
constitute obligations or indebtedness of the State of Illinois or of any
municipal corporation or other body politic and corporate in the State.
The holder or holders of any bonds issued by the board may bring suits at
law or proceedings in equity to compel the performance and observance by
the board or any of its agents or employees of any contract or covenant
made with the holders of the bonds, to compel the board or any of its
agents or employees to perform any duties required to be performed for the
benefit of the holders of the bonds by the provisions of the resolution
authorizing their issuance, and to enjoin the board or any of its agents or
employees from taking any action in conflict with any such contract or covenant.
Notwithstanding the provisions of Section 15-188 of this Code, if the
board fails to pay the principal of, premium, if any, or interest on any of
the bonds as they become due, a civil action to compel payment may be
instituted in the appropriate circuit court by the holder or holders of the
bonds upon which such default exists or by a trustee acting on behalf of the holders.
No bonds may be issued under this Section until a copy of the resolution
of the board authorizing such bonds, certified by the secretary of the
board, has been filed with the Governor of the State of Illinois.
"Bonds" means any instrument evidencing the obligation to pay money,
including without limitation bonds, notes, installment or financing
contracts, leases, certificates, warrants, and any other evidences of indebtedness.
"Project" means the acquisition, construction, equipping, improving,
expanding and furnishing of any office building for the use of the system,
including any real estate or interest in real estate necessary or useful in
"Cost of any project" includes all capital costs of the project, an
amount for expenses of issuing any bonds to finance such project, including
underwriter's discount and costs of bond insurance or other credit
enhancement, an amount necessary to provide for a reserve fund for the
payment of the principal of and interest on such bonds and an amount to pay
interest on such bonds for a period not to exceed the greater of 2 years or
a period ending 6 months after the estimated date of completion of the project.
(Source: P.A. 90-65, eff. 7-7-97; 90-511, eff. 8-22-97.)