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Illinois Compiled Statutes
Information maintained by the Legislative Reference Bureau Updating the database of the Illinois Compiled Statutes (ILCS) is an ongoing process. Recent laws may not yet be included in the ILCS database, but they are found on this site as Public Acts soon after they become law. For information concerning the relationship between statutes and Public Acts, refer to the Guide. Because the statute database is maintained primarily for legislative drafting purposes, statutory changes are sometimes included in the statute database before they take effect. If the source note at the end of a Section of the statutes includes a Public Act that has not yet taken effect, the version of the law that is currently in effect may have already been removed from the database and you should refer to that Public Act to see the changes made to the current law.
SCHOOLS (105 ILCS 5/) School Code. 105 ILCS 5/34A-415
(105 ILCS 5/34A-415) (from Ch. 122, par. 34A-415)
Sec. 34A-415.
(Repealed).
(Source: Repealed by P.A. 88-511.)
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105 ILCS 5/34A-501
(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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105 ILCS 5/34A-501.1
(105 ILCS 5/34A-501.1)
Sec. 34A-501.1.
Additional bond authority.
Subject to the limitation
in additional amount authorized by this amendatory Act of 1993 in Section
34A-501, the Authority shall incur indebtedness by the issuance of its Bonds on
or after July 1, 1993 in principal amounts sufficient to provide the Board from
the proceeds of the Bonds the sum of $175,000,000 during the
Fiscal Year
beginning in 1993, and the sum of $203,000,000 during the Fiscal Year
beginning
in 1994, in each year for ordinary and necessary expenditures for educational
purposes, maintenance of school facilities, and other operational needs of the
Board. All sums provided to the Board from proceeds of Bonds issued on or
after July 1, 1993 shall be treated
as revenues of the Board in that fiscal year for all purposes.
(Source: P.A. 88-511.)
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105 ILCS 5/34A-502
(105 ILCS 5/34A-502) (from Ch. 122, par. 34A-502)
Sec. 34A-502.
Terms of Bonds.
(a) Whenever the Authority desires or is required to issue
Bonds as provided in this Article, it shall adopt a
resolution designating the
amount of the Bonds to be issued, the purposes for which the proceeds of
the Bonds are to be used and the manner in which such proceeds shall be
held pending the application thereof. The Bonds shall be issued in the
corporate name of the Authority, shall bear such date or dates, and shall
mature at such time or times not exceeding 30 years from their date as such
resolution may provide; provided, however, that Bonds issued on or after July
1, 1993 shall mature on or before June 1, 2009. The Bonds may be issued as
serial bonds payable
in installments or as term bonds with sinking fund installments or
as a combination thereof as the Authority may determine in such resolution.
The Bonds shall be in such denominations of $1,000 or integral multiples
thereof. The Bonds shall be in such form, either coupon or registered,
carry such registration privileges, be executed in such manner, be payable
at such place or places and be subject to such terms of redemption at such
redemption prices, including premium, as such resolution may provide. The
Bonds shall be sold by the Authority at public sale. The Bonds shall be
sold to the highest and best bidders upon sealed bids. The Authority shall,
from time to time as Bonds are to be sold, advertise in at least 2 daily
newspapers, one of which is published in the City of Springfield and one in
the City of Chicago, for proposals to purchase Bonds. Each of such
advertisements for proposals shall be published at least ten days prior to
the date of the opening of the bids. The Authority may reserve the right
to reject any and all bids.
(b) Bonds issued prior to December 31, 1980 shall bear interest at such
rate or rates and at such price or prices as the Authority may approve in
the resolution authorizing the issuance of Bonds. Bonds issued after December
31, 1980 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 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 Authority on the proceeds of the Bonds shall not exceed
such maximum annual rate computed to stated maturity according to standard
tables of bond values.
(c) In connection with the issuance of its Bonds, the Authority 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 Authority may
borrow funds to pay or redeem its Bonds and purchase or remarketing
arrangements for assuring the ability of owners of the Authority's Bonds to
sell or to have redeemed their Bonds. The Authority 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 Authority authorizing the issuance of its Bonds may
provide that interest rates may vary from time to time depending upon
criteria established by the Authority, 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 Authority 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.
(Source: P.A. 88-511.)
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105 ILCS 5/34A-503
(105 ILCS 5/34A-503) (from Ch. 122, par. 34A-503)
Sec. 34A-503.
Tax levy.
(a) Before or at the time of issuing any Bonds, the Authority shall provide by resolution for the levy and collection of a direct annual tax upon all
the taxable property located within the school district without limit as
to rate or amount sufficient to pay
and discharge the principal thereof at maturity or on sinking fund installment
dates and to pay the interest thereon as it falls due. The taxes as levied
shall also include such additional amounts to the extent that the collections
in the prior years were insufficient to pay and discharge such principal
thereof at maturity, such sinking fund installments, if any, and interest
thereon as it fell due and the amount so collected shall be placed in the
debt service reserve fund. Such tax shall be in
addition to and exclusive of the maximum of all taxes
which the Authority, the Board or the City Council of the City is now, or
may hereafter be, authorized by law to levy for any and all school purposes.
Any such resolution shall be in force upon its adoption.
(b) Such levy shall be for the sole benefit of the holders of the Bonds
and the holders of the Bonds shall have a security interest in, and lien
upon, all rights, claims and interests of the Authority arising pursuant
to such levy and all present and future proceeds of such levy until principal
of and sinking fund installments and interest on the Bonds are paid in full.
All proceeds from such levy shall be deposited by each county collector
directly in the debt service funds established pursuant to Section
34A-504 hereof and shall be applied solely for the payment of principal of and
sinking fund installments and interest on the Bonds and shall not be used for
any other purpose.
A levy with respect to Bonds issued prior to July 1, 1993 (or to refund or
continue the refunding of Bonds issued prior to July 1, 1993) shall be for the
sole benefit of holders of Bonds issued prior to July 1, 1993 (or to refund or
continue the refunding of Bonds issued prior to July 1, 1993). A levy with
respect to Bonds issued on or after July 1, 1993 (other than to refund or to
continue the refunding of Bonds issued prior to July 1, 1993) shall be for the
sole benefit of owners of Bonds issued on or after July 1, 1993 (other than to
refund or to continue the refunding of Bonds issued prior to July 1, 1993).
Proceeds of taxes levied under this Section shall be deposited in the debt
service fund relating to the Bonds with respect to which the taxes were
levied.
(c) Upon the filing in the office of the county clerk of each county wherein
the Board is located of a duly certified copy of any such ordinance, it
shall be the duty of each such county clerk to extend the tax therein provided
for, including an amount determined by the Authority to cover loss and cost
of collection and also deferred collections thereof and abatements in the
amount of such taxes as extended on the collectors' books. The tax shall
be separate and apart from all other taxes of the Authority, the Board and
the City and shall be separately identified by the collectors.
(Source: P.A. 88-511.)
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105 ILCS 5/34A-504
(105 ILCS 5/34A-504) (from Ch. 122, par. 34A-504)
Sec. 34A-504.
Debt service fund.
(a) The Authority shall establish a
debt service fund for the Bonds to be maintained by a corporate trustee
(which may be any trust company or bank having the power of a trust
company within the State) separate and segregated from all other funds
and accounts of the Authority and the Board. All moneys on deposit in
the debt service fund shall be held in trust in such debt service fund
for the benefit of holders of the Bonds, shall be applied solely for the
payment of principal of and sinking fund installment, redemption premium,
if any, and interest on the Bonds and shall not be used for any other purpose.
The holders of the Bonds shall have a security interest in and lien upon all
such moneys.
(b) The Authority shall, by its resolution authorizing Bonds to be issued
on or after July 1, 1993 (other than to refund or to continue the refunding of
Bonds issued prior to July 1, 1993), establish a debt service fund which shall
be separate from any such fund for Bonds issued prior to July 1, 1993
(including Bonds
issued to refund or to continue the refunding of those prior Bonds). Such a
separate debt service fund shall secure only Bonds issued on or after July 1,
1993 (other than Bonds to refund or to continue the refunding of Bonds issued
prior to July 1, 1993). The debt service fund established with respect to
Bonds issued prior to July 1, 1993 (or to refund or to continue the refunding
of Bonds issued prior to July 1, 1993) shall not secure Bonds issued on or
after July 1, 1993 (other than Bonds issued to refund or to continue the
refunding of Bonds issued prior to July 1, 1993).
(Source: P.A. 88-511.)
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105 ILCS 5/34A-505
(105 ILCS 5/34A-505) (from Ch. 122, par. 34A-505)
Sec. 34A-505.
Debt service reserve fund.
(a) The Authority may create
and establish a debt service reserve fund to be maintained by a corporate
trustee (which may be any trust company or bank having the power of a trust
company within the State) separate and segregated from all other funds and
accounts of the Authority. The Authority may pay into such debt service
reserve fund:
(i) any proceeds from the sale of Bonds to the extent | | provided in the resolution authorizing the issuance thereof; and
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(ii) any other moneys which may be available to the
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(b) The amount to be accumulated in the debt service reserve fund shall
be determined by the Authority but shall not exceed the maximum amount of
interest, principal and sinking fund installments due in any succeeding
calendar year.
(c) All moneys on deposit in such debt service reserve fund shall be held
in trust for the benefit of holders of the Bonds, shall be applied solely
for the payment of principal of and sinking fund installments and interest
on the Bonds to the extent not paid from the debt service fund and shall
not be used for any other purpose.
(d) Any moneys in the debt service reserve fund in excess of the amount
determined by the Authority pursuant to a resolution authorizing the issuance
of Bonds may be withdrawn by the Authority and used for
any of its lawful purposes.
(e) In computing the amount of the debt service reserve fund, investments
shall be valued as the Authority shall provide in the resolution authorizing
the issuance of the Bonds.
(f) The Authority may by its resolution authorizing Bonds to be issued on
or after July 1, 1993 (other than to refund or to continue the refunding of
Bonds issued prior to July 1, 1993) create and establish such a debt service
reserve fund, which shall be separate
from any such fund for Bonds issued prior to July 1, 1993 (including Bonds
issued to refund or to continue the refunding of those prior Bonds). Such a
separate debt service reserve fund shall secure only Bonds issued on or after
July 1,
1993 (other than to refund or to continue the refunding of Bonds issued
prior to July 1, 1993). The debt service reserve fund established with respect
to
Bonds issued prior to July 1, 1993 (or to refund or to continue the refunding
of Bonds issued prior to July 1, 1993) shall not secure Bonds issued on or
after July 1, 1993 (other than Bonds issued to refund or to continue the
refunding of Bonds issued prior to July 1, 1993).
(Source: P.A. 88-511.)
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105 ILCS 5/34A-506
(105 ILCS 5/34A-506) (from Ch. 122, par. 34A-506)
Sec. 34A-506.
Bond Anticipation Notes.
(a) After the issuance of Bonds
shall have been authorized, the Authority shall have power to issue from
time to time, pursuant to a resolution or resolutions of the Authority,
its negotiable Bond Anticipation Notes in anticipation of the issuance of Bonds.
(b) Bond Anticipation Notes shall mature not later than 2 years after
the date of issuance, may be made redeemable prior to their maturity and
may be sold in such manner, in such denominations, at such price or prices,
and shall bear interest at such rate or rates not to exceed the maximum
annual rate in accordance
with the provisions of paragraph (b)of Section 34A-502 hereof, as a resolution
authorizing the issuance of the Bond Anticipation Notes may provide.
(c) The Bond Anticipation Notes may be made payable as to both principal
and interest from the proceeds of Bonds. The Authority may provide for
payment of interest on the Bond Anticipation Notes from direct annual taxes
upon all the taxable property located within the school district which are
hereby authorized to be levied annually for such purpose without limit as
to rate or amount sufficient to pay such interest as it falls due, in the
manner, subject to the security interest and lien and with the effect provided
in Section 34A-503 hereof.
(d) The Authority is authorized to issue renewal notes in the event it
is unable to issue Bonds to pay outstanding Bond Anticipation Notes on terms
the Authority deems reasonable.
(e) A debt service fund shall be established in the manner provided in
Section 34A-504 by the Authority for such Bond Anticipation Notes and the
proceeds of any tax levy made pursuant to this Section shall be deposited
therein upon receipt.
(Source: P.A. 81-1221.)
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105 ILCS 5/34A-507
(105 ILCS 5/34A-507) (from Ch. 122, par. 34A-507)
Sec. 34A-507.
Resolution vesting powers in trustee.
The resolution
authorizing issuance of the Bonds shall vest in a trustee such rights,
powers and duties in trust as the Authority may determine and may contain
such provisions for protecting and enforcing the rights and remedies of the
holders of the Bonds and limiting such rights and remedies, as may be
reasonable and proper and not in violation of law, including covenants
setting forth the duties of the Authority in relation to the exercise of
its corporate powers and the custody, safeguarding and application of all
moneys. Such resolution shall provide for the manner in which moneys in
the various funds and accounts of the Authority may be invested in
Investment Obligations and the disposition of the earnings on such
investments.
(Source: P.A. 81-1221.)
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105 ILCS 5/34A-508
(105 ILCS 5/34A-508) (from Ch. 122, par. 34A-508)
Sec. 34A-508.
Property of Authority exempt from taxation.
The property
of the Authority shall be exempt from taxation.
(Source: P.A. 81-1221.)
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105 ILCS 5/34A-509
(105 ILCS 5/34A-509) (from Ch. 122, par. 34A-509)
Sec. 34A-509.
Discharge of Bonds.
(a) If the Authority shall pay or cause
to be paid to the holders of all Bonds and coupons, if any, then outstanding,
the principal of, redemption price, if any, and interest to become due thereon,
at the times and in the manner stipulated therein and in the resolution
authorizing the issuance of Bonds, then the covenants, agreements and other
obligations of the Authority to
the Bondholders shall be discharged and satisfied.
(b) Bonds or coupons or interest installments for the payment or redemption
of which moneys shall have been set aside and shall be held in trust by
the trustee provided for in Section 34A-507 hereof or any paying agent for
the Bonds (through deposit by the Authority of funds
for such payment or redemption or otherwise) at the maturity or redemption
date thereof shall be deemed to have been paid within the meaning and, with
the effect expressed in paragraph (a) above. All outstanding Bonds of any
series and all coupons, if any, appertaining to such Bonds shall, prior to the maturity
or redemption date thereof, be deemed to have been paid within the meaning
and with the effect expressed in such paragraph (a) above if (i) there shall
have been deposited with such trustee or paying agent either moneys in an
amount which shall
be sufficient, or direct obligations of the United States of America the
principal of and the interest on which, when due, will provide moneys which,
together with the moneys, if any, deposited with such trustee or paying
agent at the same time, shall be sufficient to pay, when due, the principal
of, sinking fund installment or redemption price, if applicable, and interest
due and to become due on
said Bonds on and prior to the redemption date, sinking fund installment
date, or maturity date thereof, as the case may be, and (ii) the Authority
shall have given such trustee or paying agent in form satisfactory to it
irrevocable instructions to publish a notice to the effect and in accordance
with the procedures provided in the resolution authorizing the issuance
of the Bonds. Neither direct obligations of the United States of America
nor moneys deposited with such trustee or paying agent nor principal or
interest payments on any such securities shall be withdrawn or used for any purpose
other than, and shall be held in trust for, the payment of the principal
or redemption price, if applicable, and interest on said Bonds.
(Source: P.A. 81-1221.)
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105 ILCS 5/34A-510
(105 ILCS 5/34A-510) (from Ch. 122, par. 34A-510)
Sec. 34A-510.
Pledge of the State.
The State of Illinois pledges to and
agrees with the holders of Bonds that the State will not limit or alter
the rights and powers vested in the Authority by this Act with respect to
Sections 34A-501 through 34A-512 hereof so as to impair the terms of any
contract made by the Authority with such holders or in
any way impair the rights and remedies of such holders until the Bonds,
together with interest thereon, with interest on any
unpaid installments of interest, and all costs and expenses in connection
with any action or proceedings by or on behalf of such holders, are fully
met and discharged
or provisions made for their payment. The Authority is authorized to include
such pledge and agreement of the State in any resolution or contract with
the holders of Bonds.
(Source: P.A. 81-1221.)
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105 ILCS 5/34A-511
(105 ILCS 5/34A-511) (from Ch. 122, par. 34A-511)
Sec. 34A-511.
Statutory lien.
Any pledge, assignment, lien or security
interest for the benefit of the holders of Bonds or Bond Anticipation Notes,
if any, created pursuant to this Act shall be valid and binding from the
time the Bonds are issued, without any physical delivery or further act,
and shall be valid and binding as against, and prior to any claims of, all
other parties having claims of
any kind in tort, contract or otherwise against the State, the Authority,
the Board or the City, or any other person, irrespective of whether such
other parties have notice thereof.
(Source: P.A. 81-1221.)
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105 ILCS 5/34A-512
(105 ILCS 5/34A-512) (from Ch. 122, par. 34A-512)
Sec. 34A-512.
Complete authority.
This Act, without reference to any other
statute, shall be deemed full and complete authority for the issuance
of the Bonds and the Bond Anticipation Notes as hereinabove provided.
(Source: P.A. 81-1221.)
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105 ILCS 5/34A-601
(105 ILCS 5/34A-601) (from Ch. 122, par. 34A-601)
Sec. 34A-601.
Hearings.
To the extent feasible, the Authority shall
provide for and encourage participation by the public in the development
and review of financial and educational policy. The Authority
shall hold public hearings as it may deem appropriate to the performance of
any of its functions. The Authority may designate one or more of its
Directors or may appoint one or more hearing officers to preside over any
hearing. The Authority shall hold public hearings as it may deem
appropriate to the performance of any of its functions. The Authority
shall have the power in connection with any such hearing to issue subpoenas
to require attendance of witnesses and the production of documents, and may
apply to any circuit court in the State to require compliance with such
subpoenas. Upon the request of the Authority, the Board shall provide the
facilities for and pay the expense of any hearing conducted by the Authority.
(Source: P.A. 85-1418; 86-1477.)
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105 ILCS 5/34A-602
(105 ILCS 5/34A-602) (from Ch. 122, par. 34A-602)
Sec. 34A-602.
Limitations of actions after abolition; indemnification.
(a) Abolition of the Authority pursuant to Section 34A-605 shall bar any
remedy available against the Authority, its Directors, employees, or agents,
for any right or claim existing, or any liability incurred, prior to such
abolition unless the action or other proceeding thereon is commenced prior
to the expiration of 2 years after the date of such abolition.
(b) The Authority may indemnify any Director, officer, employee, or
agent who was or is a party, or is threatened to be made a party to any
threatened, pending or completed action, suit or proceeding, whether civil,
criminal, administrative or investigative by reason of the fact that he
was a Director, officer, employee or agent of the Authority, against expenses
(including attorneys' fees), judgments, fines and amounts paid in settlement
actually and reasonably incurred by him in connection with such action,
suit or proceeding, if he acted in good faith and in a manner he reasonably
believed to be in, or not opposed to the best interests of the Authority
and, with respect to any criminal action or proceeding, had no reasonable
cause to believe his conduct was unlawful. The termination of any action,
suit or proceeding by judgment, order, settlement, conviction, or upon a
plea of nolo contendere or its equivalent, shall not, of itself, create
a presumption that the person did not act in good faith in a manner which
he reasonably believed to be in or not opposed to the best interest of the
Authority, and, with respect to any criminal action or proceeding, had reasonable
cause to believe that his conduct was unlawful.
To the extent that a Director, officer, employee or agent of the Authority
has been successful, on the merits or otherwise, in the defense of any such
action, suit or proceeding referred to in this subsection or in defense
of any claim, issue or matter therein, he shall be indemnified against expenses
(including attorney's fees) actually and reasonably incurred by him in connection
therewith. Any such indemnification shall be made by the Authority only
as authorized in the specific case, upon a determination that indemnification
of the Director, officer, employee or agent is proper in the circumstances
because he has met the applicable standard of conduct. Such determination
shall be made: (1) by the Board of Directors by a majority vote of a quorum
consisting of Directors who are not parties to such action, suit or proceeding,
or (2) if such a quorum is not obtainable, or, even if obtainable, a quorum
of disinterested Directors so directs, by independent legal counsel in a
written opinion.
Reasonable expenses incurred in defending an action, suit or proceeding
shall be paid by the Authority in advance of the final disposition of such
action, suit or proceeding, as authorized by the Board of Directors in the
specific case, upon
receipt of an undertaking by or on behalf of the Director, officer, employee
or agent to repay such amount, unless it shall ultimately be determined
that he is entitled to be indemnified by the Authority as authorized in this Section.
Any Director, officer, employee or agent against whom any action, suit
or proceeding is brought may employ his or her own attorney to appear on
his or her behalf.
The right to indemnification accorded by this Section shall not limit any
other right to indemnification to which the Director, officer, employee
or agent may be entitled. Any rights hereunder shall inure to the benefit
of the heirs, executors and administrators of any Director, officer, employee
or agent of the Authority.
The Authority may purchase and maintain insurance on behalf of any person
who is or was a Director, officer, employee or agent of the Authority against
any liability asserted against him and incurred by him in any such capacity,
or arising out of his status as such, whether or not the Authority would
have the power to indemnify him against such liability under the provisions
of this Section.
(Source: P.A. 82-97.)
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105 ILCS 5/34A-603
(105 ILCS 5/34A-603) (from Ch. 122, par. 34A-603)
Sec. 34A-603.
State, City or Board not liable on Obligations.
Obligations issued under the provisions of this Article shall not be deemed
to constitute a debt or liability of the State, the City or the Board or
of any political subdivision thereof other than the Authority or a pledge
of the full faith and credit of the State, the City or the Board or of any
such political subdivision other than the Authority, but shall be payable
solely from the funds and revenues herein provided therefor. The issuance
of Obligations under
the provisions of this Article shall not directly or indirectly or contingently
obligate the State, the City or the Board or any political subdivision thereof
other than the Authority
to levy any form of taxation therefor or to make any appropriation for their
payment. Nothing in this Section contained shall prevent or be construed
to prevent the Authority from pledging its full faith and credit to the
payment of obligations authorized pursuant to this Article. Nothing in
this Article shall be construed to authorize the Authority to create a debt
of the State, the City or the Board within the meaning of the Constitution
or Statutes of Illinois and all Obligations issued by the Authority pursuant
to the provisions of this Article are payable and shall state that
they are payable solely from the funds and revenues pledged for their payment
in accordance with the resolution authorizing their issuance or in any trust indenture
or mortgage or deed of trust executed as security therefor. The State,
the City or the Board shall not in any event be liable for the payment of
the principal of or interest on any Obligations of the Authority or for
the performance of any pledge, mortgage, obligation or agreement of any
kind whatsoever which may be undertaken by the Authority. No breach of
any such pledge, mortgage, obligation or agreement may impose any liability
upon the State, the City or the Board or any charge upon their general credit
or against their taxing power.
(Source: P.A. 81-1221.)
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105 ILCS 5/34A-604
(105 ILCS 5/34A-604) (from Ch. 122, par. 34A-604)
Sec. 34A-604. Abolition of Authority. The Authority shall be abolished one year after all its Obligations have
been fully paid and discharged or otherwise provided for. Upon the abolition
of the Authority, all of its rights and property shall pass to and be vested
in the Board.
(Source: P.A. 96-705, eff. 1-1-10.)
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105 ILCS 5/34A-605
(105 ILCS 5/34A-605) (from Ch. 122, par. 34A-605)
Sec. 34A-605.
Obligations as legal investments.
The Obligations are hereby made securities in which all public officers
and bodies of this State and all political subdivisions of the State and
other persons carrying on an insurance business, all banks, bankers, trust
companies, saving banks and savings associations, including savings and
loan associations, building and loan associations, investment companies
and other persons carrying on a banking business, all credit unions, pension
funds, administrators, and guardians who are now or may hereafter be authorized
to invest in bonds or in other obligations of the State, may properly and
legally invest funds, including capital, in their control or belonging to
them. The Obligations are also
hereby made securities which may be deposited with and may be received by
all public officers and bodies of the State and all political subdivisions
of the State and public corporations for any purpose for which the deposit
of bonds or other obligations of the State is now or may hereafter be authorized.
(Source: P.A. 81-1221.)
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105 ILCS 5/34A-606
(105 ILCS 5/34A-606) (from Ch. 122, par. 34A-606)
Sec. 34A-606. Reports.
(a) The Directors, upon taking office and annually thereafter, shall
prepare and submit to the Governor, Mayor, General Assembly, and City Council
a report which shall include the audited financial statement for the preceding
Fiscal Year of the Board, an approved Financial Plan or a statement of reasons
for the failure to adopt such a Financial Plan, a statement of the major
steps necessary to accomplish the objectives of the Financial Plan, and
a request for any legislation necessary to achieve the objectives of the
Financial Plan.
(b) Annual reports shall be submitted on or before May 1 of each year.
(c) The requirement for reporting to the General Assembly shall be
satisfied by filing copies of the report with the Board, the Governor,
the Mayor and as required
by Section 3.1 of the General Assembly Organization Act, and filing such
additional copies with the State Government Report Distribution Center for
the General Assembly as is required under paragraph (t) of Section 7 of the
State Library Act.
(d) Each annual report required to be submitted through May 1, 1995,
shall also include: (i) a description of the activities of the Authority;
(ii) an analysis of the educational performance of the Board for
the preceding school year; (iii) an Approved System-Wide Educational Reform
Goals and Objectives Plan or a statement of reasons for the failure to
adopt such an Approved System-Wide Educational Reform Goals and Objectives
Plan; (iv) a statement of the major steps necessary to accomplish the goals
of the Approved System-Wide Educational Reform Goals and Objectives Plan;
(v) a commentary with respect to those Board policies and rules and those
provisions of The School Code and collective bargaining agreements between
the Board and its employees which, in the opinion of the Authority, are
obstacles and a hindrance to fulfillment of any Approved System-Wide
Educational Reform Goals and Objectives Plan; and (vi) a request for any
legislative action necessary to achieve the goals of the Approved
System-Wide Educational Reform Goals and Objectives Plan.
(Source: P.A. 100-1148, eff. 12-10-18.)
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105 ILCS 5/34A-607
(105 ILCS 5/34A-607) (from Ch. 122, par. 34A-607)
Sec. 34A-607.
Audit of Authority.
The Authority shall be subject to audit
in the manner now or hereafter provided for the audit of State funds and
accounts. A copy of the audit report shall be submitted to the Auditor
General, the Governor, the Speaker and Minority Leader of the House of Representatives
and the President and Minority Leader of the Senate.
(Source: P.A. 81-1221.)
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105 ILCS 5/34A-608
(105 ILCS 5/34A-608) (from Ch. 122, par. 34A-608)
Sec. 34A-608.
Sanctions.
(a) No member, officer, employee, or agent of the Board shall commit the
Board to any contract or other obligation or incur any liability on behalf
of the Board for any purpose if the amount of such contract, obligation
or liability is in excess of the amount authorized for that purpose then
available under the Financial Plan and Budget then in effect.
(b) No member, officer, employee, or agent of the Board shall commit the
Board to any contract or other obligation on behalf of the Board for the
payment of money for any purpose required to be approved by the Authority
unless such contract or other obligation has been approved by the Authority.
(c) No member, officer, employee, or agent of the Board shall take any
action in violation of any valid order of the Authority or shall fail or
refuse to take any action required by any such order or shall prepare, present,
or certify any information (including any projections or estimates) or report
for the Authority or any of its agents that is false or misleading, or,
upon learning that any such information is false or misleading, shall fail
promptly to advise the Authority or its agents.
(d) In addition to any penalty or liability under any other law, any member,
officer, employee, or agent of the Board who shall violate subsections (a),
(b), or (c) of this Section shall be subject to appropriate administrative
discipline, including, if warranted, suspension from duty without pay,
removal from office, or termination of employment.
(Source: P.A. 85-1418; 86-1477.)
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105 ILCS 5/Art. 34B
(105 ILCS 5/Art. 34B heading)
ARTICLE 34B
BRIDGE NOTE STATUTE
(Repealed) (Source: Repealed by P.A. 94-1105, eff. 6-1-07.)
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105 ILCS 5/Art. 35
(105 ILCS 5/Art. 35 heading)
ARTICLE 35.
BUILDINGS--SCHOOL BUILDING COMMISSION
(Repealed) (Source: Repealed by P.A. 94-1105, eff. 6-1-07.)
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105 ILCS 5/Art. 36
(105 ILCS 5/Art. 36 heading)
ARTICLE 36.
REPEAL - SAVING
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105 ILCS 5/36-1
(105 ILCS 5/36-1) (from Ch. 122, par. 36-1)
Sec. 36-1.
Repeal - Saving Clause.
The following acts are repealed:
"An Act providing for a system of free schools and for transportation
of all school children, and further providing for the establishment of
junior colleges with or without tuition charges," approved May 1, 1945,
as amended;
"An Act authorizing school districts to levy a tax to pay rental for
use and occupancy of school buildings owned by the State of Illinois,"
approved July 6, 1957;
"An Act to provide for the acquisition, construction, rental and
disposition of buildings used for school purposes," approved June 21,
1957;
"An Act to provide scholarships in institutions of higher learning
for qualified residents of the State, to create the State Scholarship
Commission and define its powers and duties, to provide for the
administration of a State scholarship program, and to make
appropriations for such purposes," approved June 21, 1957;
"An Act in relation to driver education courses in the public schools
and to make appropriations in connection therewith," approved July 9,
1957.
Such repeal shall not affect or impair any of the following: suits
pending or rights existing at the time this act takes effect; any grant
or conveyance made or right acquired or cause of action now existing
under any such act; the validity of any bonds or other obligations
issued or sold and constituting valid obligations of the issuing
authority at the time this act takes effect; the validity of any
contract; the validity of any tax levied under any law in effect prior
to the effective date of this Act; any offense committed, act done,
penalty, punishment or forfeiture incurred, or any claim, right, power
or remedy accrued under any law in effect prior to the effective date of
this Act; nor shall the repeal herein of any curative or validating act
affect the corporate existence or powers of any school district lawfully
validated thereby.
(Source: Laws 1961, p. 31 .)
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