105 ILCS 5/34A-501
2021 Illinois Compiled Statutes|Chapter 105 - SCHOOLS|105 ILCS 5/ - School Code.|Article 34A - School Finance Authority

 (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.)