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105 ILCS 5/8-5

(105 ILCS 5/8-5) (from Ch. 122, par. 8-5)

Sec. 8-5.

Books and accounts.

(a) The township treasurer shall be provided by the trustees of schools
with a cash book, a loan book, a district account book, and a journal.
In the cash book he shall enter in separate accounts all moneys received
and paid out, with the amount, date, from whom, to whom and on what
account received or paid out; or, if loaned, the date, to whom, and the
amount. Moneys received shall be charged to debit account, and moneys
paid out shall be credited as follows: First, to the principal of the
township fund; second, to the interest of the township fund; third, to
the common school fund and other funds; fourth, to the taxes received
from the county or town collector, and for what districts received;
fifth, donations; sixth, moneys coming from all other sources; in all
cases entering the date when received, and when paid out.

In the loan book he shall enter a record of all school funds loaned,
with the amount to whom, date, time, when due, and the rate of interest,
the interest paid, and a description of the securities.

In the district account book he shall post from the cash book all
receipts and expenditures on account of any district, with the amount,
date, from or to whom, and from what sources and for what purposes.

In the journal he shall record at length the acts and proceedings of
the trustees of schools, their orders, by-laws and resolutions.

The township treasurer shall keep his accounts in the manner directed
by the State Board of Education, the regional superintendent
of schools or the trustees of schools; and they shall be subject at all
times to the inspection of the trustees, the directors or school board
members or other persons authorized by this Act or of any committee
appointed by the voters of the township at the election of
trustees to examine them.

(b) Concurrently with the abolition of the offices of township
treasurer and trustee of schools of a township as provided in subsection
(c) of Section 5-1, the former township treasurer whose office has been so
abolished shall surrender to the school treasurer of each school district
served by that township treasurer at the time that office is abolished the
district account book theretofore maintained for that school district by
the former township treasurer, and in addition shall surrender to the
regional board of school trustees the cash books, loan books and journals
referred to in subsection (a) of this Section 8-5; provided that the school
board and school treasurer of each such school district, the State Board of
Education, the regional superintendent and such other persons as may be
authorized by law shall have the right, at all reasonable times, to
inspect, and to copy or otherwise reproduce any portions of the cash books,
loan books and journals surrendered by the former township treasurer to the
regional board of school trustees as required by this subsection.

(Source: P.A. 87-473.)

105 ILCS 5/8-6

(105 ILCS 5/8-6) (from Ch. 122, par. 8-6)

Sec. 8-6.

Custody
of school funds.

The school treasurer shall have custody of the school funds and shall
keep in a cash book separate cash balances. In the cash book he shall enter in
separate accounts the balance, total of all moneys received in each fund,
and the total of the orders countersigned or checks signed with respect to each fund and extend the balances and the aggregate cash balance for all funds
balance at least monthly. The treasurer shall reconcile such balances with the
accounting or bookkeeping department of the district in conformity with a template provided by the State Board of Education monthly. School districts on the financial watch or warning list that are required to submit deficit reduction plans in accordance with Section 17-1 of this Code or that are certified in financial difficulty in accordance with Section 1-A8 of this Code must transmit the cash balances as required pursuant to this Section 8-6 of this Code to the State Board of Education quarterly from the treasurer.

(Source: P.A. 97-429, eff. 8-16-11.)

105 ILCS 5/8-7

(105 ILCS 5/8-7) (from Ch. 122, par. 8-7)

Sec. 8-7.

Only lawful custodian of funds - Depositaries.

Except as
otherwise provided in subsection (f) of Section 8-1,
subsection (c) of Section 5-1, and subsection (b) of Section 8-5,
the township treasurer in Class II county school units, the school
treasurer in Class I county school units, and the school treasurer in
any school district that forms a part of a Class II county school unit but
which no longer is subject to the jurisdiction and authority of a
township treasurer and trustees of schools of a
township (because the district has withdrawn from the jurisdiction
and authority of the township treasurer and trustees of school of the
township or because those offices have been abolished
as provided in subsection (b) or (c) of Section 5-1) shall be the only
lawful custodian of all school funds and shall demand receipt for and
safely keep, according to law, all bonds, mortgages, notes, moneys,
effects, books and papers belonging to any school district or township, as
the case may be, which he serves as treasurer. Trustees of schools in Class
II county school units, school boards in Class I county school
units, and those school boards in Class II county school units that have
elected or appointed their own school treasurer pursuant to subsection (b) or
(c) of Section 5-1 and subsection (b) or (c) of Section 8-1, shall
designate one or more banks, savings and loan
associations, situated in the State of Illinois, in which school funds and
moneys in the custody of the township treasurer or of the school treasurer
shall be kept. When a bank or savings and loan association has been
designated as a depositary it shall continue as such until 10 days after a
new depositary is designated and has qualified by furnishing statements of
resources and liabilities as is required by this section. When a new
depositary is designated, the trustees of schools in Class II county school
units, school boards in Class I county school units, and those
school boards in Class II county school units that have elected or appointed
their own school treasurer pursuant to subsection (b) or (c) of Section
5-1 and subsection (b) or (c) of Section 8-1, shall notify the sureties
of the township treasurer or of the school treasurer, as the case may be, of
that fact, in writing at least 5 days before the transfer of funds. The
township treasurer or the school treasurer shall be discharged from
responsibility for such funds and moneys which he deposits in a depositary so
designated while such funds and moneys are so deposited.

No bank or savings and loan association shall receive public funds as
permitted by this Section, unless it has complied with the requirements
established pursuant to Section 6 of the Public Funds Investment Act.

Township and school treasurers are authorized to enter into agreements
of any definite or indefinite term regarding the deposit, redeposit,
investment, reinvestment or withdrawal of school funds, including, without
limitation, agreements with other township and school treasurers,
agreements with community college districts authorized by Section 3-47 of
the Public Community College Act and agreements with educational service
regions authorized by Section 3-9.1.

Each township and school treasurer is permitted to (i) combine moneys
from more than one fund of a single school district for the purpose of
investing such funds, and (ii) join with township and school treasurers,
community college districts and educational service regions in investing school
funds, community college funds and educational service region funds. Such joint
investments shall be made only in investments authorized by law for the
investment of school funds or, in the case of investments made jointly with
community college districts and educational service regions, in investments
authorized by law for the investment of school funds, community college funds
and educational service region funds. When moneys of more than one fund of a
single school district are combined for investment purposes or when moneys of a
school district are combined with moneys of other school districts, community
college districts or educational service regions, the moneys combined for such
purposes shall be accounted for separately in all respects, and the earnings
from such investment shall be separately and individually computed and
recorded, and credited to the fund or school district, community college
district or educational service region, as the case may be, for which the
investment was acquired.

(Source: P.A. 86-1051; 86-1441; 87-435; 87-473; 87-968.)

105 ILCS 5/8-8

(105 ILCS 5/8-8) (from Ch. 122, par. 8-8)

Sec. 8-8.

Township
fund - Loans - Investments.

The township treasurer or township land commissioners, as the case may
be, shall keep the principal of the township fund loaned at interest. The
rate of interest, which shall not be less than four per cent per annum,
payable annually, except in the case of investments in war bonds of the
United States government, shall be determined by a majority of the trustees
of schools at any regular or special meeting. No loan shall be made for
less than one year nor more than 5 years but investments secured by
mortgage, notes, or bonds, insured by the Federal Housing Administrator, or
debentures issued by him, or in bonds or other obligations of National
Mortgage Associations, may be for longer than 5 years. All loans shall be
secured by mortgage on unencumbered realty situated in this State, worth at
least 50% more than the amount loaned, with a condition that in case
additional security shall be required at any time it shall be given to the
satisfaction of the trustees of schools. In estimating the value of realty
mortgaged to secure the payment of money loaned, the value of improvements
liable to be destroyed may be included; but in such case the improvements
shall be insured for their insurable value in a responsible insurance
company or companies, and the policy or policies shall be transferred to
the trustees of schools as additional security, and shall be kept so
insured until the loan is paid. The township treasurer or township land
commissioners, as the case may be, also may invest the principal of the
township fund in:

1. Bonds issued by the State, the Sanitary District of Chicago,
counties, townships and cities in this State, and by school directors
pursuant to Section 19-2;

2. Bonds issued by any district in this State having authority to levy
taxes upon all taxable property within the district;

3. Mortgage notes or bonds issued by the Federal Housing Administrator,
or debentures issued by him;

4. Bonds or other obligations of National Mortgage Associations or the
Home Owners' Loan Corporation;

5. United States Government, State of Illinois and municipal securities
the payment of which is protected by the power to levy taxes (not including
special assessments) therefor.

He or they may exchange mortgages in default for bonds of the Home
Owners' Loan Corporation.

He or they may invest moneys in the operations and maintenance
fund of any school district in war bonds of the United States government
that are redeemable at the owner's option, in cases where building projects
cannot, by reason of material shortages or wartime priority restrictions,
currently be undertaken or completed. School funds held by the treasurer of
a district created by any special act shall be invested according to the
provisions of this Section.

(Source: P.A. 86-970.)

105 ILCS 5/8-9

(105 ILCS 5/8-9) (from Ch. 122, par. 8-9)

Sec. 8-9.

Mortgages - Form.

Mortgages to secure the payment of money
loaned under the provisions of this Act may be in the following form:

I, A B, of the county of ...., State of ...., do hereby grant, convey and
transfer to the trustees of schools of township No. ...., Range No. ....,
in the County of ...., and State of Illinois, for the use of the
inhabitants of the township, the following described real estate:
(here insert premises), which real estate I declare to be in mortgage for
the payment of $...., loaned to me and for the payment of all
interest that may accrue thereon, to be computed at the rate of .... per
cent per year until paid. I agree to pay the above sum of
money in .... years from the date hereof, and to pay the interest on the
same annually, at the rate above stated.  I further covenant that I have
a good and valid title to the estate, and that the same is free from all
incumbrance, and that I will pay all taxes and assessments which may be
levied on the real estate, and that I will give any additional security
that may at any time be required in writing by the board of trustees; and
if the real estate is sold to pay the debt or any part thereof, or for
any failure or refusal to comply with or perform the conditions or covenants
herein contained, I will deliver immediate possession of the premises.
It is further agreed by and between the parties that in the event a
complaint is filed in any court to foreclose this mortgage for non-payment
of either principal or interest, that the mortgagor will pay a reasonable
attorney's fee, and the same shall be included in the judgment and be taxed
as costs; and we, A B, and C, spouse of A B, hereby release all rights to
the premises which we may have by virtue of any homestead laws of this
State.

Dated (insert date).

A .... B ....................

C .... D ....................

The mortgage shall be acknowledged and recorded as is required by law
for other conveyances of real estate, the mortgagor paying the expenses of
acknowledgment and recording.

(Source: P.A. 91-357, eff. 7-29-99.)

105 ILCS 5/8-10

(105 ILCS 5/8-10) (from Ch. 122, par. 8-10)

Sec. 8-10.

Interest in default-Actions.

If default is made in the interest due upon money loaned by any township
treasurer, or in the payment of the principal, interest at the rate of 12
per cent per annum shall be charged upon the principal and interest from
the day of default, which interest shall be included in the assessment of
damages, or in the judgment in the suit or action brought upon the
obligation to enforce payment thereof, and interest at the rate of 12 per
cent per annum may be recovered in an action brought to recover interest
only. The township treasurer may bring appropriate actions in the name of
the trustees for the recovery of the interest when due and unpaid, without
suing for the principal, in whatever form secured.

(Source: Laws 1961, p. 31.)

105 ILCS 5/8-11

(105 ILCS 5/8-11) (from Ch. 122, par. 8-11)

Sec. 8-11.

Suit
when additional security not furnished.

If the trustees of schools require additional security for the payment
of money loaned, and such security is not given, the township treasurer
shall cause suit to be instituted for the recovery of the principal and
accrued interest to the date of judgment. Proof shall be made of such
requisitions.

(Source: Laws 1961, p. 31.)

105 ILCS 5/8-12

(105 ILCS 5/8-12) (from Ch. 122, par. 8-12)

Sec. 8-12.

Name
in which securities taken-Actions.

Bonds, mortgages, notes and other securities taken for money or other
property due, or to become due, to the trustees of schools for the
township, shall be made payable to them in their corporate name; and in
such name, suits, actions and complaints, and every description of legal
proceedings may be had for the recovery of money, breach of contracts and
for every legal liability which may at any time arise or exist, or upon
which a right of action shall accrue to the use of such corporation.

(Source: Laws 1961, p. 31.)

105 ILCS 5/8-13

(105 ILCS 5/8-13) (from Ch. 122, par. 8-13)

Sec. 8-13.

Statement of condition of funds.

On or before June 30, annually, the township treasurer shall deliver to
the county superintendent of schools a statement verified by his affidavit,
showing the exact condition of the township funds. Such statement shall
contain a description of all bonds, mortgages, notes and other securities,
held as principal of the township fund, giving names, dates, amounts, rates
of interest, when due, and other data necessary to a full understanding of
the condition of the funds.

(Source: Laws 1961, p. 31.)

105 ILCS 5/8-14

(105 ILCS 5/8-14) (from Ch. 122, par. 8-14)

Sec. 8-14.

Statements to trustees-Books, mortgages, etc., submitted for examination.

On the first Mondays in April and October of each year the township
treasurer shall submit to the trustees of schools a statement showing the
amounts of interest, rents, issues and profits on township lands and funds
that have accrued since their last regular meeting, and also the amount of
distributive funds on hand. He shall submit also to the trustees for their
examination all books, mortgages, bonds, notes and other evidences of
indebtedness held by him as treasurer of the township, and shall make such
other statements as the trustees may require.

(Source: Laws 1961, p. 31.)

105 ILCS 5/8-15

(105 ILCS 5/8-15) (from Ch. 122, par. 8-15)

Sec. 8-15.

Statement of district accounts.

The school treasurer shall furnish to the school board of the district
which he serves as treasurer a monthly reconciliation required by Section
8-6. The treasurer shall comply with any lawful demand the trustees or
school board, as the case may be, may make as to the verification of any
balance reported.

(Source: Laws 1961, p. 31.)

105 ILCS 5/8-16

(105 ILCS 5/8-16) (from Ch. 122, par. 8-16)

Sec. 8-16. School orders; Teacher's wages.

The school treasurer shall pay out funds of the school district only
upon an order of the school board signed by the president and
clerk or secretary or by a majority of the board, except payment of the
obligations for Social Security taxes as required by the Social Security
Enabling Act and payment of recurring bills, such as utility bills, may be made upon a certification by the clerk or secretary
of the board of the amount of the obligation only. When an order issued
for the wages of a teacher is presented to the treasurer and is not paid
for want of funds, the treasurer shall endorse it over his signature,
"not paid for want of funds" with the date of presentation, and shall
make and keep a record of the endorsement. The order shall thereafter
bear interest at the rate, not exceeding the maximum rate authorized by the
Bond Authorization Act, as amended at the time of the making of the
contract, established by the school board of the district, until the
treasurer shall notify the clerk or secretary in writing that
he has funds to pay the order. Whenever the treasurer obtains sufficient
funds to pay any such order he shall set them aside for such purpose and
shall not use them to pay any other order until the order previously
presented and not paid is paid or otherwise discharged. The treasurer shall
make and keep a record of the notices and hold the funds necessary to pay
such order until it is presented. The order shall draw no interest after
notice is given to the clerk or secretary.

Nothing herein shall be construed to prevent the establishment of a
voucher system of expenditures as provided in Section 10-23.5 of this
Act.

With respect to instruments for the payment of money issued under this
Section either before, on, or after June 6, 1989, it is and always has been
the intention of the General Assembly (i) that the Omnibus Bond Acts are
and always have been supplementary grants of power to issue instruments in
accordance with the Omnibus Bond Acts, regardless of any provision of this
Act that may appear to be or to have been more restrictive than those Acts,
(ii) that the provisions of this Section are not a limitation on the
supplementary authority granted by the Omnibus Bond Acts, and (iii) that
instruments issued under this Section within the supplementary authority
granted by the Omnibus Bond Acts are not invalid because of any provision
of this Act that may appear to be or to have been more restrictive than
those Acts.

(Source: P.A. 96-998, eff. 7-2-10.)

105 ILCS 5/8-17

(105 ILCS 5/8-17) (from Ch. 122, par. 8-17)

Sec. 8-17.

Duties of treasurer.

(a) It is also the duty of the township
treasurer to:

1. Return to the county clerk, on or before the

first Tuesday in October in each year, the certificate of tax levy made by each school board in his township.

2. Pay all lawful orders issued by the school board

of any district in his township.

3. Collect from the township and county collectors

the full amount of taxes levied by the school boards in his township.

4. Examine the official records of each district in

the township on the first Mondays in April and October of each year.

5. Keep a record account between districts when

pupils are transferred from one district to another.

6. Give notice of the election of trustees, and in

case of the formation of a new school district, of the election of school directors or school board members.

7. Give notice of any regular district election when

the directors or school board members fail or refuse to do so.

8. Publish in some English language newspaper of his

county an annual statement of the finances of the township.

9. Be responsible for receipts, disbursements and

investments arising out of the operation of the school district under his supervision.

(b) The duties of the township treasurer set forth in subsection (a)
shall not be deemed or construed to extend or apply with respect to any
school district in his township which has withdrawn from the jurisdiction
and authority of the township trustees and from the jurisdiction and
authority of the township treasurer as provided in subsection (b) of
Section 5-1, nor to the school business, tax levies, tax revenues, payment
orders, records, elections, annual statements, receipts, disbursements,
investments or other financial or business activities or affairs of any
such school district or of the school board of any such district, other
than the duty to account in accordance with law for any balance of the
income from the permanent township fund required to be apportioned and
distributed to any such district pursuant to Section 5-17 after payment of
all valid claims as provided in that Section, and except as otherwise
provided with respect to the distribution and apportionment of funds
pursuant to Sections 15-31 and 19-28.

(Source: P.A. 86-1441.)

105 ILCS 5/8-18

(105 ILCS 5/8-18) (from Ch. 122, par. 8-18)

Sec. 8-18.

District in two or more townships-Taxes-Treasurer.

When a district is composed of parts of two or more townships, any
treasurer not authorized to receive the taxes of the district shall notify
the school board of the amount of funds held by him to the credit of the
district, and the school board shall thereupon give the proper treasurer an
order for the funds.

(Source: Laws 1961, p. 31.)

105 ILCS 5/8-19

(105 ILCS 5/8-19) (from Ch. 122, par. 8-19)

Sec. 8-19.

Delivery of money, books, mortgages, etc.

to successor.

At the expiration of his term of office, or upon his removal or
resignation the school treasurer, or in case of his death, his
representatives shall deliver to his successor, all moneys, books,
mortgages, notes and securities, and all papers and documents in which the
district has any lawful interest.

(Source: Laws 1961, p. 31.)