105 ILCS 5/34-29.2
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. 34-29.2)Sec. 34-29.2.     Debt service funds for obligations.(a) The board shall establish debt service funds, each to be maintained by a  corporate trustee (which may be any trust company or bank having the power of a  trust  company within the State) separate and segregated from all other funds and  accounts of the board, for those issues of obligations of  the board for the payment of which a separate tax has been or is to be levied,  including, without limitation, a debt service fund for the  general obligation bonds of the board, a debt service fund for the  general obligation notes of the board and a debt service fund for the lease  rentals payable by the board to the Public Building Commission of Chicago.  Such funds shall be established for each such outstanding obligation of  the board and also for each such obligation as shall be issued by the board  after the effective date of this amendatory Act of 1981. The trustee  maintaining  each such debt service fund shall account separately on its books and records  for each such issue of such obligations.(b) The city treasurer, as ex officio treasurer of the board, shall, with  respect to each collection of taxes levied on behalf of the board, allocate  the amounts collected among the issues of such obligations  and deliver a report of such allocation to the county collector of each county  wherein the board is located.  On the basis of such allocation, the county  collector shall pay the proceeds  of each separate tax levied for the payment of any issue of such  obligations upon receipt directly to the corporate trustee maintaining the  debt service fund for   such obligations for deposit in such debt service fund.  In addition, the board shall pay the amount of personal property tax replacement  tax revenues applicable to each issue of such obligations  upon receipt directly to the corporate trustee maintaining the debt service  fund for such obligations for deposit in such debt service  fund.  Each such deposit shall be held in trust for the benefit of the party  or parties to whom payment of such obligations is payable.  All such proceeds of such taxes and revenues shall be applied solely for the  payment of the related obligations and shall not be used for  any other purpose until such obligations are paid in full.  Each levy of such taxes shall  be for the sole benefit of the party or parties to whom payment of such  obligations is payable and such party or parties  shall have a security interest in and lien upon all rights, claims and interest  of the board arising pursuant to any such  levy and all present and future proceeds of such levy until such  obligations are paid in full.  Such party or parties shall further have a security interest in and lien  upon all personal property tax replacement tax revenues upon deposit in  the appropriate debt service fund as above provided.(c) Any lien or security interest for the benefit of the party or parties  to whom any such obligations are payable, made pursuant  to this Act, shall be valid and binding from the effective date of the  amendatory Act of 1980, and with respect to any obligations issued after  the effective date of this amendatory Act of 1981, shall be valid and binding  from the date of issue of such obligations, in each case without any physical  delivery or further act, and shall be valid and binding as against, and  prior to any claims of, all other parties  having claims of any kind in tort, contract or otherwise, against the board,  irrespective of whether such parties have notice thereof.(d) Any monies on deposit in any such debt service fund and not necessary  for immediate use may be invested or reinvested in Investment Obligations,  as defined in Section 34A-103 of this Act.  The board may from time to time withdraw from any such debt service fund,  to the extent not prohibited by the resolution of the board authorizing  issuance of such obligations, the amount of interest or other  investment  earnings in such funds but only to the extent that the total amounts in such  fund  after  such withdrawal shall not be less than the requirements for that fund. Any  amounts deposited in any such debt service fund not required for payment of  principal of or interest on any obligation because that payment has been made  or provided for may be withdrawn by the board from the fund at any time, but  only to the extent that the total amount in the fund after the withdrawal is  not less than the requirements for the fund.  The board is not required to make  any tax abatement with respect to any such amounts withdrawn or on account of  any provision for payment of principal of or interest on obligations.  Any  amounts so withdrawn by the board may be used for any lawful purpose of the  board.    (Source: P.A. 88-511.)