105 ILCS 5/ School Code.

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105 ILCS 5/prec. Sec. 34-30

(105 ILCS 5/prec. Sec. 34-30 heading)

WORKING CASH FUND

105 ILCS 5/34-30

(105 ILCS 5/34-30) (from Ch. 122, par. 34-30)

Sec. 34-30.

Establishment of fund authorized-Purpose.

The board may, by resolution, establish a fund to be known as a "working
cash fund" which shall be maintained and administered for the purpose of
enabling the board to have in its treasury at all times sufficient money to
meet demands thereon for ordinary and necessary expenditures for
educational purposes.

(Source: Laws 1961, p. 31.)

105 ILCS 5/34-31

(105 ILCS 5/34-31) (from Ch. 122, par. 34-31)

Sec. 34-31.

Bond issue to increase fund.

(a).  Where the board has created and is maintaining such a working
cash fund for the purposes above mentioned, it may, with the consent of
the city council expressed by ordinance, incur an indebtedness for the
purpose of increasing such fund and issue bonds therefor from time to
time, in an amount or amounts not exceeding in the aggregate
$75,000,000, exclusive of all bonded indebtedness authorized for that
purpose prior to May 16, 1967, without the submission thereof to the
electors of the school district or city for approval.

(b).  The board may incur an additional indebtedness for the purpose
of further increasing such fund and issue additional bonds therefor,
from time to time, in an amount or amounts not exceeding in the
aggregate $20,000,000, exclusive of all bonded indebtedness authorized
for that purpose prior to the effective date of this amendatory Act of
1971, without the submission thereof to the electors of the school
district or city for approval.

(c). The board may incur an additional indebtedness for the purpose
of further increasing such fund and issue additional bonds therefor,
from time to time, in an amount or amounts not exceeding in the
aggregate $25,000,000, exclusive of all bonded indebtedness authorized
for that purpose prior to the effective date of this amendatory Act of
1973, without the submission thereof to the electors of the school
district or city for approval.

(d). The board may incur an additional indebtedness for the purpose of
further increasing such fund and issue additional bonds therefor, from time
to time, in an amount or amounts not exceeding in the aggregate $31,000,000,
exclusive of all bonded indebtedness authorized for that purpose prior to
the effective date of this amendatory Act of 1977, without the submission
thereof to the electors of the school district or city for approval.

(e). Any bonds issued under paragraphs (a), (b), (c) or (d) of this
Section shall bear interest at a rate of not more than
the maximum rate authorized by the Bond Authorization Act, as amended at the
time of the making of the contract, and
shall mature within 20 years from date of issue. The authority herein
granted in paragraphs (a), (b), (c) and (d) shall be considered exclusive of
each other and as cumulative authority for the issuance of such bonds.

With respect to instruments for the payment of money issued under this
Section either before, on, or after the effective date of this amendatory
Act of 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. 86-4.)

105 ILCS 5/34-32

(105 ILCS 5/34-32) (from Ch. 122, par. 34-32)

Sec. 34-32.

Resolution for bond issue-Signature-Sale.

Before issuing any bonds under Section 34-31, as amended, the board
shall adopt a resolution designating the purpose and fixing the amount of
the bonds proposed to be issued, the maturity thereof, the rate of interest
thereon and the amount of taxes to be levied annually for the purpose of
paying the principal and interest.

The bonds shall be issued in the corporate name of the school district.
They shall be signed by the president and secretary of the 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) at not less than par 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, for the uses herein
provided.

(Source: Laws 1961, p. 3226.)

105 ILCS 5/34-33

(105 ILCS 5/34-33) (from Ch. 122, par. 34-33)

Sec. 34-33.

Tax
for payment of bonds.

Before or at the time of issuing bonds under Sections 34-31 and 34-32,
as amended, the city council, upon the demand and under the direction of
the board, shall, by ordinance, provide for the collection of a direct
annual tax upon all the taxable property of the school district sufficient
to pay and discharge the principal thereof at maturity and to pay the
interest thereon as it falls due. Upon the filing in the office of the
county clerk of the county wherein the school district is located of a
certified copy of any such ordinance the county clerk shall extend the tax
therein provided for. The ordinance shall be in force upon its passage.

(Source: Laws 1961, p. 3226.)

105 ILCS 5/34-34

(105 ILCS 5/34-34) (from Ch. 122, par. 34-34)

Sec. 34-34.

Bond moneys set apart-Use and reimbursement of fund.

All
moneys derived from the issuance of bonds under Sections 34-31 and
34-32, or from any tax levied pursuant to Section 34-57 when received by
the city treasurer, as school treasurer, shall be set apart in the
working cash fund. The moneys in such fund shall not be regarded as
current assets available for appropriation and shall not be appropriated
by the board in the annual school budget, but in order to provide moneys
with which to meet ordinary and necessary disbursements for salaries and
other educational purposes may be transferred, in whole or in part, to
the educational purposes fund of the board and so disbursed therefrom
(a) in anticipation of the collection of any taxes lawfully levied for
educational purposes, (b) in anticipation of the receipt of moneys to be
derived from the common school fund of the State and from State
appropriations, or (c) in anticipation of such taxes, as by law now or
hereafter enacted or amended, imposed by the General Assembly of the
State of Illinois to replace revenue lost by units of local government
and school districts as a result of the abolition of ad valorem personal
property taxes, pursuant to Article IX, Section 5(c) of the Constitution
of the State of Illinois.  Moneys transferred to the educational
purposes fund in anticipation of the collection of taxes shall be deemed
to have been transferred in anticipation of the collection of that part
of the taxes so levied or to be received which is in excess of the
amount or amounts thereof required to pay any warrants, and the interest
thereon, theretofore or thereafter issued under Sections 34-22 through
34-24, the amount estimated to be required to satisfy debt service and
pension or retirement obligations as set forth in Section 12 of "An Act
in relation to State revenue sharing with local government entities", approved
July 31, 1969, as amended.
 Such taxes levied for educational purposes when collected
shall be applied first to the payment of any such warrants or notes and
the interest thereon and
the amount estimated to be required to satisfy debt service and pension
or retirement obligations, as set forth in Section 12 of "An Act in relation
to State revenue sharing with local government entities", approved July
31, 1969, as amended, and
then to the reimbursement of the working cash
fund as hereinafter provided. Upon the receipt by the city treasurer, as
school treasurer, of any taxes or other moneys, in anticipation of the
collection or receipt whereof moneys of the working cash fund have been
so transferred for disbursement, such fund shall immediately be
reimbursed therefrom until the full amount so transferred has been
re-transferred to said fund. If taxes in anticipation of the collection
of which such transfers are made are not collected in sufficient amounts
to effect a complete reimbursement of the working cash fund of the
amounts transferred from the working cash fund to the educational
purposes fund the deficiencies between the amounts thus transferred and
the amounts repaid from collections shall be general obligations of the
educational purposes fund until repaid either from taxes in anticipation
of which transfers were made or from appropriations which may be made in
annual school budgets of sums of money to apply on such general
obligations or until repaid from both the taxes in anticipation of which
such transfers were made and from appropriations which may be made in
annual school budgets of sums of money to apply on such general
obligations.

(Source: P.A. 81-1506.)

105 ILCS 5/34-35

(105 ILCS 5/34-35) (from Ch. 122, par. 34-35)

Sec. 34-35.

Resolution for transfer from fund-Amount transferred.

Moneys shall be transferred from the working cash fund to the
educational purposes fund only upon the authority of the board, which
shall by resolution direct the school treasurer to make such transfers.
The resolution shall set forth (a) the taxes or other funds in
anticipation of the collection or receipt of which the working cash fund
is to be reimbursed, (b) the entire amount of taxes extended, or which
the board shall estimate will be extended or received, for any year in
anticipation of the collection of all or part of which such transfer is
to be made, (c) the aggregate amount of warrants or notes theretofore
issued in anticipation of the collection of such taxes under the
provisions of Sections 34-22 through 34-24 together with the amount of
interest accrued and which the board of education estimates will accrue
thereon, (d) the amount of moneys which the board of education estimates
will be derived for any year from the common school fund of the State
and from State appropriations in anticipation of the receipt of all or
part of which such transfer is to be made, (e)
the aggregate amount of receipts from taxes imposed to replace revenue
lost by units of local government and school districts as a result of the
abolition of ad valorem personal property taxes, pursuant to Article IX,
Section 5(c) of the Constitution of the State of Illinois, which the corporate
authorities estimate will be set aside for the payment of the proportionate
amount of debt service and pension or retirement obligations, as required by
Section 12 of "An Act in relation to State Revenue Sharing with local
government
entities", approved July 31, 1969, as amended, and (f)
the aggregate amount
of moneys theretofore transferred from the working cash fund to the
educational purposes fund in anticipation of the collection of such
taxes or of the receipt of such other moneys from the State. The amount
which the resolution shall direct the school treasurer so to transfer in
anticipation of the collection of taxes levied or to be received for any
year, together with the aggregate amount of such anticipation tax
warrants or notes theretofore drawn against such taxes
and the amount of
the interest accrued and estimated to accrue thereon, the amount estimated
to be required to satisfy debt service and pension or
retirement obligations, as set forth in Section 12 of "An Act in relation
to State revenue sharing with local government entities", approved July
31, 1969, as amended,
and the aggregate
amount of such transfers theretofore made in anticipation of the
collection of such taxes shall not exceed 90% of the actual or estimated
amount of such taxes extended or to be extended or to be received as set
forth in the resolution. The amount which the resolution shall direct
the school treasurer so to transfer in anticipation of the receipt of
moneys to be derived for any year from the common school fund of the
State or from any State appropriation, together with the aggregate
amount theretofore transferred in anticipation of the receipt of any
such moneys, shall not exceed the total amount which it is so estimated
will be received from such source. When moneys are available in the
working cash fund they shall be transferred to the educational purposes
fund and disbursed for the payment of salaries and other educational
expenses so as to avoid, whenever possible, the issuance of tax
anticipation warrants or notes.

(Source: P.A. 81-1506.)

105 ILCS 5/34-36

(105 ILCS 5/34-36) (from Ch. 122, par. 34-36)

Sec. 34-36.

Violations of provisions-Liability.

Any member of the board or any officer thereof or of the city, or any
other person holding any other trust or employment under the board or
city, who is guilty of the wilful violation of any of the provisions of
Sections 34-30 through 34-35, shall be guilty of a business offense
and may be fined not exceeding $10,000 and shall forfeit his right to
his office, trust or employment and shall be removed therefrom. Any such
member, officer or person shall be liable for any sum that may be
unlawfully diverted from the working cash fund or otherwise used, to be
recovered by the board or by any taxpayer in the name and for the
benefit of the board in an appropriate civil action. A taxpayer so
suing shall file a bond for and shall be liable for all costs taxed
against the board in such suit. Nothing herein shall bar any other
remedies.

(Source: P.A. 79-1366.)

105 ILCS 5/34-37

(105 ILCS 5/34-37) (from Ch. 122, par. 34-37)

Sec. 34-37.

Abolishment of working cash funds.

The board may abolish
its working cash fund, upon the adoption of a resolution so providing, and
directing the transfer of any balance in such fund to the educational purposes
fund, effective upon the adoption of such resolution.  Thereafter, all outstanding
taxes of such board levied pursuant to Section 34-57 of this Article shall
be collected and paid into the educational fund.  Any obligation incurred
by such board pursuant to Section 34-31 of this Article shall be discharged
as therein provided.  Nothing contained herein shall affect the validity
of any existing obligations of the board.

(Source: P.A. 81-1221.)

105 ILCS 5/34-38

(105 ILCS 5/34-38) (from Ch. 122, par. 34-38)

Sec. 34-38.

Re-creation of working cash fund.

Nothing in this Article prevents
a board which has abolished its working cash fund from again creating a
working cash fund in the manner provided in Section 34-30 of this Article;
provided, however that should the working cash fund be so recreated, the
board shall not thereby be authorized to issue working cash fund bonds in
an amount greater than the amount authorized at the time of abolition of
such fund, and no tax shall be levied for the recreated working cash fund
pursuant to Section 34-57 of this Article.

(Source: P.A. 81-1221.)