105 ILCS 5/18-18
2021 Illinois Compiled Statutes|Chapter 105 - SCHOOLS|105 ILCS 5/ - School Code.|Article 18 - Common School Fund

 (from Ch. 122, par. 18-18)Sec. 18-18.         The board of education of any  school district may borrow money by contracting or entering into loan  agreements and may evidence such borrowings by the issuance of State aid  anticipation certificates.  Such certificates may be issued without  submission to the electors of the school district or city for approval  of the question of the issuance of such certificates.  Such certificates  shall bear interest or discount to maturity at a rate not to exceed  the rate permissible for  such board's full faith and credit general obligation notes and shall  mature in such a manner so that no such certificates shall be  outstanding for more than 13 months.  State aid anticipation  certificates shall be payable solely from payments to be made at any time,  whether made before or after August 1, of any year, pursuant  to this Article 18 and may be secured by assignment of such payments with  the assignee receiving such payments directly from the State Superintendent  of Education.  Prior to the issuance of any such certificates the State Superintendent  of Education  shall certify the appropriated amount of State aid to be paid the  district in the current fiscal year.  The amount of certificates to be  issued shall not exceed 75% of the amounts of  State aid certified by the State Superintendent of Education after  subtracting the amount of funds available for transfer from the  district's working cash fund in anticipation of State aid to be paid  such district pursuant to this Article 18.  The amount of State aid  anticipation certificates shall not be counted as indebtedness of the  district for purposes of any  debt limits nor are such certificates full  faith and credit general obligation notes or tax anticipation warrants;  provided, however, that the total amount of State aid anticipation  certificates, general obligation notes and tax anticipation warrants  outstanding for any  fiscal year may not exceed 85% of the taxes levied by the district for that  year.Any school district may borrow up to 100% of the amount of  State aid to be received in July, as certified by the State Superintendent  of Education.  Such anticipation certificates shall be repaid not later  than August 1 from State aid payments received in July.Whenever the board of a district desires to issue such State aid  anticipation certificates as herein authorized, it shall adopt a  resolution designating the purposes for which the proceeds of the  certificates are to be expended and fixing the amount of the  certificates proposed to be issued, the maturity thereof, and optional  provisions, if any, and the rate of interest or discount to maturity  thereon.  Such resolution may provide for the appointment of a trustee,  which may be any trust company or bank having the power of a trust company  within the State, and for the establishment of such funds or accounts to  be maintained by such trustee as the school district shall deem necessary  to provide for the security and payment of the certificates.  If such  resolution provides for the appointment of a trustee, such trustee shall be  considered the assignee of any payments assigned by the school district  pursuant to such resolution and this Section.  Any amounts paid by the State  Superintendent of Education to such trustee as assignee pursuant to Section 18-11 shall  be deposited  in the funds or accounts established pursuant to such resolution, and shall  be held by such trustee in trust for the benefit of the holders of the  certificates, and such holders shall have a lien on and a security interest  in such funds or accounts so long as the certificates remain outstanding  and unpaid.  Except as provided otherwise in this Section, such amounts shall be used  solely for the payment of certificates at maturity and shall not be used  for any other purpose so long as the certificates remain outstanding and  unpaid.   Pending such application such amounts shall be invested by such  trustee in investments of the kind specified in the Public Funds  Investment Act. Upon payment in full of the certificates, any amounts held  by such trustee, including earnings on investments not used for payment  of the certificates, shall be paid to such district.Said certificates 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  treasurer and expended by the board for the purposes provided in the  resolution authorizing any such certificates.Upon the issuance of said certificates, the  board shall give written notification to the appropriate  regional superintendent and the State Superintendent of Education of the  issuance of the certificates and the terms thereof, including, but not limited  to, any assignment of State aid  payments made pursuant to this Section, the name and address of each  assignee, the amounts and dates of the payments to be made by the State  Superintendent of Education directly to each assignee under Section 18-11, the  amount  of the certificates held by each assignee and the maturity date of the  certificates.    (Source: P.A. 87-839; 87-1215; 88-641, eff. 9-9-94.)