105 ILCS 5/34-29.1
2021 Illinois Compiled Statutes|Chapter 105 - SCHOOLS|105 ILCS 5/ - School Code.|Article 34 - Cities Of Over 500,000 Inhabitants - Board Of Education

 (from Ch. 122, par. 34-29.1)Sec. 34-29.1.         General obligation notes - Limitations - Issuance -  Tax levy - Tax rate - Reimbursement   to   working cash fund. The  board may incur an indebtedness by the  issuance  of  full  faith  and  credit  general  obligation notes in an amount not to exceed 85% of the  taxes levied for educational purposes, building purposes and the  purchase of school grounds, free textbook purposes and for school  playground and recreation purposes respectively, in the fiscal year in  which said notes are issued, without the submission to the electors of  the school district or city for approval of the question of the issuance  of such notes, provided, however, no notes shall be issued when there  are outstanding tax anticipation warrants issued or to be issued against  such taxes, nor shall such full faith and credit general obligation  notes, tax anticipation warrants, or amounts transferred from the  working cash fund, in the aggregate, exceed 90% of the taxes  levied for the aforesaid purposes. Such notes shall bear interest at a  rate of not to exceed  the greater of (i) the maximum rate authorized by the Bond Authorization Act,  as amended at the  time of the making of the contract, or (ii)8% per annum, and shall mature  within 2 years from date.Whenever the board desires to issue such notes as herein authorized,  it shall adopt a resolution designating the purposes for which the  proceeds of the notes are to be expended and fixing the amount of the  note proposed to be issued, the maturity 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 of said notes.Said notes shall be issued in the corporate name of the school  district. They shall be signed by the president and secretary of said  board. They shall be sold by the board  upon such terms as may be approved by 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 resolution  authorizing any such notes.Before or at the time of issuing any notes herein authorized,  the board shall, by resolution, 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 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  resolution, 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 resolution shall be in force upon its passage.After any such notes have been issued and while such notes are  outstanding, it shall be the duty of the county clerk wherein such  school district is located in computing the several tax rates for the  several purposes respectively for which the notes have been issued  respectively to reduce said tax rates respectively levied for such  purposes respectively by the amount levied to pay the principal of and  interest on such notes respectively to maturity, provided the tax rate  for educational purposes shall not be reduced beyond the amount  necessary to reimburse any money borrowed from the working cash fund,  and it shall be the duty of the secretary of the board annually, not  less than thirty (30) days prior to the tax extension date, to certify  to the county clerk of the county wherein such school district is  located the amount of money borrowed from the working cash fund to be  reimbursed from the educational purposes tax.No reimbursement shall be made to the working cash fund until there  has been accumulated from the tax levy provided for the notes issued for  educational purposes an amount sufficient to pay the principal of and  interest on such notes as the same become due.With respect to instruments for the payment of money issued under this  Section either before, on, or after the effective date of Public  Act 86-4 (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. 86-4; 86-930; 86-1028.)