(105 ILCS 5/34-22.6)
(from Ch. 122, par. 34-22.6)
Issuance of bonds.
For the purpose of erecting,
purchasing, or otherwise acquiring buildings suitable for school houses,
erecting temporary school structures, erecting additions to, repairing,
rehabilitating, modernizing and replacing existing school buildings and
temporary school structures, and furnishing and equipping school buildings
and temporary school structures, and purchasing or otherwise acquiring and
improving sites for such purposes, the board may incur an indebtedness and
issue bonds therefor in an amount or amounts not to exceed in the aggregate
$150,000,000 in addition to the bonds authorized under
Sections 34-22.1, 34-22.2, 34-22.3, 34-22.4, 34-22.5 and 34-22.7.
Bonds authorized under this Section may also be issued for the purposes
of paying interest on such bonds, establishing reserves to secure such
bonds and paying the costs of issuance of such bonds.
In connection with the issuance of its bonds, the board may enter into
arrangements to provide additional security and liquidity for the bonds.
These may include, without limitation, municipal bond insurance, letters of
credit, lines of credit by which the board may borrow funds to pay or
redeem its bonds and purchase or remarketing arrangements for assuring the
ability of owners of the board's bonds to sell or to have redeemed their
bonds. The board may enter into contracts and may agree to pay fees to
persons providing such arrangements, including from bond proceeds but only
under circumstances in which the total interest paid or to be paid on the
bonds, together with the fees for the arrangements (being treated as if
interest), would not, taken together, cause the bonds to bear interest,
calculated to their absolute maturity, at a rate in excess of the maximum
rate allowed by law.
The resolution of the board authorizing the issuance of its bonds may
provide that interest rates may vary from time to time depending upon
criteria established by the board, which may include, without limitation, a
variation in interest rates as may be necessary to cause bonds to be
remarketable from time to time at a price equal to their principal amount,
and may provide for appointment of a national banking
association, bank, trust company, investment banker or other financial
institution to serve as a remarketing agent in that connection. The
resolution of the board authorizing the issuance of its bonds
may provide that alternative interest rates or provisions will apply during
such times as the bonds are held by a person providing a letter of credit
or other credit enhancement arrangement for those bonds.
The Board may use proceeds of the sale of bonds authorized
under this Section to pay the cost of obtaining such municipal bond
insurance, letter of credit or other credit facilities. Bonds may also be
issued under this Section to pay the cost of refunding any bonds issued
under this Section, including prior to their maturity.
The bonds shall bear interest at a rate or rates not to exceed the
maximum annual rate provided for in Section 2 of "An Act to authorize
public corporations to issue bonds, other evidences of indebtedness and tax
anticipation warrants subject to interest rate limitations set forth
therein", approved May 26, 1970, as now or hereafter amended, and if issued
at such maximum annual rate shall be sold for not less than par and accrued
interest. If any of the bonds are issued to bear interest at a rate of
less than such maximum annual rate the minimum price at which they may be
sold shall be such that the interest cost to the board on the proceeds of
the bonds shall not exceed such maximum annual rate computed to stated
maturity according to standard tables of bond values.
Whenever the board desires to issue bonds as authorized in this Section, it
shall adopt a resolution designating the purpose for which the proceeds
of the bonds are to be expended and fixing the amount of the bonds proposed
to be issued, the maturity or maturities thereof, and optional provisions, if
any, the rate of interest thereon, and the amount of taxes to be levied
annually for the purpose of paying the interest upon and the principal,
whether due at maturity or upon sinking fund installment dates, of such bonds.
Said bonds shall be issued in the corporate name of the school
district. They shall be signed by the president and secretary of said
board and countersigned by the mayor and the comptroller (or city clerk
if there be no comptroller) of the city. They shall be sold by the city
comptroller (or city clerk if there be no comptroller) upon such terms
as may be approved by the board after advertisement for bids as ordered
by and under the direction of the board, and the proceeds thereof shall
be received by the city treasurer, as school treasurer, and expended by
the board for the purposes provided in the bond resolution.
Before or at the time of issuing any bonds authorized in this Section,
the board shall provide for the levy and collection of a
direct annual tax upon all the taxable property of such school district
sufficient to pay and discharge the principal thereof at maturity, or
upon sinking fund installment dates, and to
pay the interest thereon as it falls due. Such tax shall be levied and
collected in like manner with the other taxes of such school district
and shall be in addition to and exclusive of the maximum of all other
taxes which such board is now, or may hereafter be,
authorized by law to levy for any and all school purposes. Upon the
filing in the office of the county clerk of the county wherein such
school district is located of a duly certified copy of any such ordinance,
it shall be the duty of such county clerk to extend the tax therein
provided for, including an amount to cover loss and cost of collecting
said taxes and also deferred collections thereof and abatements in the
amounts of such taxes as extended upon the collector's books. The
ordinance shall be in force upon its passage.
(Source: P.A. 85-1418; 86-1477.)