105 ILCS 5/34A-502
2021 Illinois Compiled Statutes|Chapter 105 - SCHOOLS|105 ILCS 5/ - School Code.|Article 34A - School Finance Authority

 (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.)