2023 Illinois Compiled Statutes › Chapter 105 - SCHOOLS › 105 ILCS 5/ - School Code. › Article 1E - Downstate School Finance Authority

(105 ILCS 5/Art. 1E heading)
ARTICLE 1E.  
		DOWNSTATE SCHOOL FINANCE AUTHORITY
(This Article scheduled to be repealed in
accordance with 105 ILCS 5/1E-165)
(105 ILCS 5/1E-1)
(This Section scheduled to be repealed in accordance with 105 ILCS 5/1E-165)
Sec. 1E-1. 
		Short title. 
		This Article may be
cited as the Downstate School Finance Authority Law.
(Source: P.A. 92-547, eff. 6-13-02.)
(105 ILCS 5/1E-5)
(This Section scheduled to be repealed in accordance with 105 ILCS 5/1E-165)
Sec. 1E-5. 
		Findings; purpose; intent.
(a) The General Assembly finds all of the following:
(1) A fundamental goal of the people of this State,     as expressed in Section 1 of Article X of the Illinois Constitution, is the educational development of all persons to the limits of their capacities. When a board of education faces financial difficulties, continued operation of the public school system is threatened.
(2) A sound financial structure is essential to the     continued operation of any school system. It is vital to commercial, educational, and cultural interests that public schools remain in operation. To achieve that goal, public school systems must have effective access to the private market to borrow short and long term funds.
(3) To promote the financial integrity of districts,     as defined in this Article, it is necessary to provide for the creation of school finance authorities with the powers necessary to promote sound financial management and to ensure the continued operation of the public schools.
(b) It is the purpose of this Article to provide a secure financial
basis for the continued operation of public schools. The
intention of the General Assembly, in creating this Article, is to
establish procedures, provide powers, and impose restrictions to ensure
the financial and educational integrity of the public schools, while
leaving principal responsibility for the educational policies of
public schools to the boards of education within the State, consistent
with the requirements for satisfying the public policy and purpose
set forth in this Article.
(Source: P.A. 92-547, eff. 6-13-02.)
(105 ILCS 5/1E-10)
(This Section scheduled to be repealed in accordance with 105 ILCS 5/1E-165)
Sec. 1E-10. 
		Definitions. 
		As used in this Article:
"Authority" means a School Finance Authority created under
this Article.
"Bonds" means bonds authorized to be issued by the Authority under Section
1E-65 of this Code.
"Budget" means the annual budget of the district required under
Section 17-1 of this Code, as in effect from time to time.
"Chairperson" means the Chairperson of the Authority.
"District" means any school district having a population of not more than
500,000 that prior to the effective date of this amendatory Act of the
92nd General Assembly has had a Financial Oversight Panel established
for the district under Section 1B-4 of this Code following the district's
petitioning of the State Board of Education for the creation of the
Financial Oversight Panel and for which the Financial Oversight Panel
has been in existence for at least one year.
"Financial plan" means the financial plan of the district to be
developed pursuant to this Article, as in effect from time to time.
"Fiscal year" means the fiscal year of the district.
"State Board" means the State Board of Education.
"State Superintendent" means the State Superintendent of Education.
"Obligations" means bonds and notes of the Authority.
(Source: P.A. 92-547, eff. 6-13-02.)
(105 ILCS 5/1E-15)
(This Section scheduled to be repealed in accordance with 105 ILCS 5/1E-165)
Sec. 1E-15. 
		Establishment of Authority; duties of district.
(a) A Financial Oversight Panel created under Article 1B of this Code for a
district may
petition
the State Board for the establishment of a School Finance Authority
for the district. The petition shall cite the
reasons why the creation of a School Finance Authority for the
district is necessary. The State Board may grant the petition upon
determining that the approval of the petition is in the best
educational and financial interests of the district.
(b) Upon approval of the petition by the State Board all of the following
shall occur:
(1) There is established a body both corporate and     politic to be known as the "(Name of School District) School Finance Authority", which in this name shall exercise all authority vested in an Authority by this Article.
(2) The Financial Oversight Panel is abolished, and     all of its rights, property, assets, contracts, and liabilities shall pass to and be vested in the Authority.
(3) The duties and obligations of the district under     Article 1B of this Code shall be transferred and become duties and obligations owed by the district to the School Finance Authority.
(c) In the event of a conflict between the provisions of this Article
and the provisions of Article 1B of this Code, the provisions of this Article
control.
(Source: P.A. 92-547, eff. 6-13-02.)
(105 ILCS 5/1E-20)
(This Section scheduled to be repealed in accordance with 105 ILCS 5/1E-165)
Sec. 1E-20. Members of Authority; meetings.
(a) When a petition for a School Finance Authority is allowed by the State
Board under Section 1E-15 of this Code, the State Superintendent shall within
10 days thereafter appoint 5 members to serve on a School Finance Authority for
the district. Of the initial members, 2 shall be appointed to serve a
term of 2 years and 3 shall be appointed to serve a term of 3 years.
Thereafter, each member shall serve for a term of 3 years and until his or her
successor has been appointed. The State Superintendent shall designate one of
the members of the Authority to serve as its Chairperson. In the event
of vacancy or resignation, the State Superintendent shall, within 10
days after receiving notice, appoint a successor to serve out that
member's term. The State Superintendent may remove a member for
incompetence, malfeasance, neglect of duty, or other just cause.
Members of the Authority shall be selected primarily on the basis
of their experience and education in financial management,
with consideration given to persons knowledgeable in education finance.
Two members of the Authority shall be residents of the school district that the
Authority serves. A member of the Authority may not be a member of the
district's school board or an
employee of the district
 nor may
a
member have a direct financial interest in the district.
Authority members shall serve without compensation, but may
be reimbursed by the State Board for travel and other necessary
expenses incurred in the performance of their official duties.
Unless paid from bonds issued under Section 1E-65 of this Code, the amount
reimbursed members for their expenses shall be charged
to the school district as part of any emergency financial
assistance and incorporated as a part of the terms and conditions
for repayment of the assistance or shall be deducted from the
district's general State aid or evidence-based funding as provided in Section 1B-8 of this Code.
The Authority may elect such officers as it deems appropriate.
(b) The first meeting of the Authority shall be held at the call of the
Chairperson.
 The
Authority shall prescribe the times and places for its meetings and the manner
in which regular and special meetings may be called and shall comply with the
Open Meetings Act.
Three members of the Authority shall constitute a quorum.
When a vote is taken upon any measure before the Authority, a quorum
being present, a majority of the votes of the members voting on the
measure shall determine the outcome.
(Source: P.A. 100-465, eff. 8-31-17.)
(105 ILCS 5/1E-25)
(This Section scheduled to be repealed in accordance with 105 ILCS 5/1E-165)
Sec. 1E-25. General powers. The purposes of the Authority shall be
to exercise financial control over the district and to furnish financial
assistance so that the district can provide public education within the
district's jurisdiction while permitting the district to meet its obligations
to its creditors and the holders of its debt. Except as
expressly limited by this Article, the Authority shall have all powers
granted to a voluntary or involuntary Financial Oversight Panel and to
a Financial Administrator under Article 1B of this Code and all other powers
necessary to meet its responsibilities and to carry out its purposes
and the purposes of this Article, including without limitation all of the
following powers,
provided that the Authority shall have no power to violate any statutory
provision, to impair any contract or obligation of the district, or to
terminate any employee without following the statutory procedures for
such terminations set forth in this Code:
(1) To sue and to be sued.
(2) To make and execute contracts, leases, subleases     and all other instruments or agreements necessary or convenient for the exercise of the powers and functions granted by this Article.
(3) To purchase real or personal property necessary     or convenient for its purposes; to execute and deliver deeds for real property held in its own name; and to sell, lease, or otherwise dispose of such of its property as, in the judgment of the Authority, is no longer necessary for its purposes.
(4) To appoint officers, agents, and employees of the     Authority, including a chief executive officer, a chief fiscal officer, and a chief educational officer to administer and manage, under the direction of the Authority, the operations and educational programs of the district, in accordance with this Article and all other provisions of this Code; to define their duties and qualifications; and to fix their compensation and employee benefits.
(5) To transfer to the district such sums of money as     are not required for other purposes.
(6) To borrow money and to issue obligations pursuant     to this Article; to fund, refund, or advance refund the same; to provide for the rights of the holders of its obligations; and to repay any advances.
(7) Subject to the provisions of any contract with or     for the benefit of the holders of its obligations, to purchase or redeem its obligations.
(8) To procure all necessary goods and services for     the Authority in compliance with the purchasing laws and requirements applicable to the district.
(8.5)  To take action on behalf of the district as     the Authority deems necessary and in accordance with this Article and all other provisions of this Code, based on the recommendation of the chief executive officer, chief educational officer, or chief fiscal officer, and the district shall be bound by such action in all respects as if the action had been approved by the district itself.
(9) To do any and all things necessary or convenient     to carry out its purposes and exercise the powers given to it by this Article.
(Source: P.A. 94-234, eff. 7-14-05.)
(105 ILCS 5/1E-30)
(This Section scheduled to be repealed in accordance with 105 ILCS 5/1E-165)
Sec. 1E-30. 
		Chief executive officer. 
		The Authority may appoint a
chief executive officer who, under the direction of the Authority, shall
supervise the Authority's staff, including the chief educational officer and
the chief fiscal officer, and shall have ultimate responsibility for
implementing the policies, procedures, directives, and decisions of the
Authority.
(Source: P.A. 92-547, eff. 6-13-02.)
(105 ILCS 5/1E-35)
(This Section scheduled to be repealed in accordance with 105 ILCS 5/1E-165)
Sec. 1E-35. Chief educational officer. Upon expiration of the
contract of the school district's superintendent who is serving at the time the
Authority is established, the Authority shall, following consultation with the
district, employ a chief educational officer for the district.
 The chief educational officer shall report to the Authority or the chief
executive officer appointed by the Authority.
The chief educational officer shall have authority to determine the agenda and order of business at school board meetings, as needed in order to carry forward and implement the objectives and priorities of the Authority in the administration and management of the district.
The chief educational officer shall have all of the powers and duties of a
school district superintendent under this Code and such other duties
as may be assigned by the Authority, in accordance with this Code. The district
shall not thereafter employ a
superintendent during the period that a chief educational officer is serving in
the district. The chief educational officer shall hold a Professional Educator License with a
superintendent endorsement issued under Article 21B of this Code.
(Source: P.A. 102-894, eff. 5-20-22.)
(105 ILCS 5/1E-40)
(This Section scheduled to be repealed in accordance with 105 ILCS 5/1E-165)
Sec. 1E-40. Chief fiscal officer. The Authority may appoint a chief
fiscal officer who, under the direction of the Authority, shall have all of
the powers and duties of the district's chief school business official and
any other duties regarding budgeting, accounting, and other financial
matters that are assigned by the Authority, in accordance with this Code.
The district may not employ a chief school business official during the
period that the chief fiscal officer is serving in the district. The chief
fiscal officer may but is not required to hold an educator license with a chief
school business official endorsement issued under Article 21B of this
Code.
(Source: P.A. 102-894, eff. 5-20-22.)
(105 ILCS 5/1E-45)
(This Section scheduled to be repealed in accordance with 105 ILCS 5/1E-165)
Sec. 1E-45. 
		Collective bargaining agreements. 
		The Authority shall
have the power to negotiate collective bargaining agreements with the
district's employees in lieu of and on behalf of the district. Upon
concluding bargaining, the district shall execute the agreements
negotiated by the Authority, and the district shall be bound by and shall
administer the agreements in all respects as if the agreements had been
negotiated by the district itself.
(Source: P.A. 92-547, eff. 6-13-02.)
(105 ILCS 5/1E-50)
(This Section scheduled to be repealed in accordance with 105 ILCS 5/1E-165)
Sec. 1E-50. 
		Deposits and investments.
(a) The Authority shall have the power to establish checking and whatever
other banking accounts it may deem appropriate for conducting its affairs.
(b) Subject to the provisions of any contract with or for the
benefit of the holders of its obligations, the Authority may invest any
funds not required for immediate use or disbursement, as provided in
the Public Funds Investment Act.
(Source: P.A. 92-547, eff. 6-13-02.)
(105 ILCS 5/1E-55)
(This Section scheduled to be repealed in accordance with 105 ILCS 5/1E-165)
Sec. 1E-55. 
		Cash accounts and bank accounts.
(a) The Authority shall require the district or any officer of the district,
including the district's treasurer, to establish and maintain separate cash
accounts and separate bank accounts in accordance with such rules, standards,
and procedures as the Authority may prescribe.
(b) The Authority shall have the power to assume exclusive
administration of the cash accounts and bank accounts of the district, to
establish and maintain whatever new cash accounts and bank accounts it
may deem appropriate, and to withdraw funds from these accounts for the
lawful expenditures of the district.
(Source: P.A. 92-547, eff. 6-13-02.)
(105 ILCS 5/1E-60)
(This Section scheduled to be repealed in accordance with 105 ILCS 5/1E-165)
Sec. 1E-60. 
		Financial, management, and budgetary structure. 
		Upon
direction of the Authority, the district shall reorganize the financial
accounts, management, and budgetary systems of the district in whatever
manner the Authority deems appropriate to achieve greater financial
responsibility and to reduce financial inefficiency.
(Source: P.A. 92-547, eff. 6-13-02.)
(105 ILCS 5/1E-65)
(This Section scheduled to be repealed in accordance with 105 ILCS 5/1E-165)
Sec. 1E-65. 
		Power to issue bonds.
(a) The Authority may incur indebtedness by the issuance of
negotiable full faith and credit general obligation bonds of the Authority in
an outstanding amount not to
exceed at any time, including existing indebtedness, 13.8% of the district's
most recent equalized assessed valuation, excluding Bonds
of the Authority that have been refunded, for (i) the purpose of providing the
district with moneys for
ordinary and necessary expenditures
and other operational needs of the district; (ii) payment or refunding of
outstanding debt obligations or tax anticipation warrants of the district, the
proceeds of which
were used to provide financing for the district;
(iii)
payment of fees for arrangements as provided in subsection (b) of Section
1E-70 of this Code; (iv) payment of interest on Bonds; (v) establishment of
reserves
to secure Bonds; (vi) the payment of costs of issuance of Bonds; (vii) payment
of principal of or interest or redemption premium on any Bonds or notes
of the Authority; and (viii) all other expenditures of the Authority incidental
to and necessary or convenient for carrying out its corporate purposes
and powers.
(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 set forth in this Section.
(c) Bonds issued in accordance with subsection (a) of this Section
are not subject to any other statutory limitation as to debt, including without
limitation that established by the Local Government Debt Limitation Act, and
may
be issued without referendum.
(Source: P.A. 92-547, eff. 6-13-02.)
(105 ILCS 5/1E-70)
(This Section scheduled to be repealed in accordance with 105 ILCS 5/1E-165)
Sec. 1E-70. 
		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 the proceeds shall be
held pending the application thereof. The Bonds shall be issued in the
corporate name of the Authority and shall bear such date or dates and
shall mature at such time or times, not exceeding 20 years from their
date, as the resolution may provide. The Bonds may be issued
as serial bonds payable in installments,  as term bonds with sinking
fund installments, or as a combination of these as the Authority may
determine in the resolution. The Bonds shall be in such
denominations as the Authority may determine.
 The Bonds
shall be in such form, 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 the resolution may provide. The Bonds
shall be sold by the Authority at public or private sale, as determined by the
Authority.
(b) 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 ensuring the ability of owners of the Authority's Bonds
to sell their Bonds or to have their Bonds redeemed. The Authority may enter
into
contracts and may agree to pay fees to persons providing the
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 the 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 shall
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. 92-547, eff. 6-13-02.)
(105 ILCS 5/1E-75)
(This Section scheduled to be repealed in accordance with 105 ILCS 5/1E-165)
Sec. 1E-75. 
		Tax levy.
(a) Before or at the time of issuing any Bonds, the Authority shall
provide by resolution for the levy and collection of a direct annual tax
upon all the taxable property located within the district without
limit as to rate or amount sufficient to pay and discharge the principal
thereof at maturity or on sinking fund installment dates and to pay the
interest thereon as it falls due. The taxes as levied shall also
include additional amounts to the extent that the collections in
the prior years were insufficient to pay and discharge the principal
thereof at maturity, sinking fund installments, if any, and
interest thereon as it fell due, and the amount so collected shall be
placed in the debt service reserve fund. The tax shall be in addition
to and exclusive of the maximum of all taxes that the Authority or
the district is authorized by law to levy for
any and all school purposes.  The resolution shall be in force
upon its adoption.
(b) The levy shall be for the sole benefit of the holders of the
Bonds, and the holders of the Bonds shall have a security interest in
and lien upon all rights, claims, and interests of the Authority arising
pursuant to the levy and all present and future proceeds of the levy
until the principal of and sinking fund installments and interest on the
Bonds are paid in full. All proceeds from the levy shall be deposited
by each county collector directly in the debt service fund established
pursuant to Section 1E-80 of this Code, shall be applied solely for the payment
of principal of and sinking fund installments and interest on the Bonds, and
shall not be used for any other purpose.
(c) Upon the filing in the office of the county clerk of each
county where the school district is located of a duly certified copy of the
resolution, it shall be the duty of each county clerk to extend the
tax provided for in the resolution, including an amount determined by the
Authority to cover loss and cost of collection and also deferred
collections and abatements in the amount of the taxes as
extended on the collectors' books. The tax shall be separate and apart
from all other taxes of the Authority or the district and shall be
separately identified by the collectors.
(Source: P.A. 92-547, eff. 6-13-02.)
(105 ILCS 5/1E-80)
(This Section scheduled to be repealed in accordance with 105 ILCS 5/1E-165)
Sec. 1E-80. 
		Debt service fund. 
		The Authority shall establish a debt service
fund for the Bonds to be maintained by a paying agent, escrow agent,
depository, or corporate trustee, which may be any
trust company or bank having the power of a trust company within this State,
separate and segregated from all other funds and accounts of the Authority and
the district. All moneys on deposit in the debt service fund shall be held in
trust in the debt service fund for the benefit of the holders of the Bonds,
shall
be applied solely for the payment of the principal of and sinking fund
installment,
redemption premium, if any, and interest on the Bonds, and shall not be used
for any other purpose. The holders of the Bonds shall have a security interest
in and lien upon all such moneys.
(Source: P.A. 92-547, eff. 6-13-02.)
(105 ILCS 5/1E-85)
(This Section scheduled to be repealed in accordance with 105 ILCS 5/1E-165)
Sec. 1E-85. 
		Debt service reserve fund.
(a) The Authority may create and establish a debt service reserve
fund to be maintained by a paying agent, escrow agent, depository, or 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
Authority. The Authority may pay the following into the debt service reserve
fund:
(1) any proceeds from the sale of Bonds to the extent     provided in the resolution authorizing the issuance of the Bonds; and
(2) any other moneys that may be available to the     Authority for the purpose of the fund.
(b) The amount to be accumulated in the debt service reserve fund
shall be determined by the Authority but shall not exceed the maximum
amount of interest, principal, and sinking fund installments due in any
succeeding calendar year.
(c) All moneys on deposit in the debt service reserve fund shall
be held in trust for the benefit of the holders of the Bonds, shall be
applied solely for the payment of principal of and sinking fund
installments and interest on the Bonds to the extent not paid from the
debt service fund, and shall not be used for any other purpose.
(d) Any moneys in the debt service reserve fund in excess of the
amount determined by the Authority pursuant to a resolution authorizing
the issuance of Bonds may be withdrawn by the Authority and used for any
of its lawful purposes.
(e) In computing the amount of the debt service reserve fund,
investments shall be valued as the Authority provides in the
resolution authorizing the issuance of the Bonds.
(Source: P.A. 92-547, eff. 6-13-02.)
(105 ILCS 5/1E-90)
(This Section scheduled to be repealed in accordance with 105 ILCS 5/1E-165)
Sec. 1E-90. 
		Bond anticipation notes.
(a) After the issuance of
Bonds has been authorized, the Authority shall have power to
issue from time to time, pursuant to a resolution or resolutions of the
Authority, negotiable bond anticipation notes of the Authority in anticipation
of the
issuance of Bonds.
(b) Bond anticipation notes shall mature not later than 2 years
after the date of issuance, may be made redeemable prior to their
maturity, and may be sold in such manner, in such denominations, and at such
price or prices and shall bear interest at such rate or rates not to
exceed the maximum annual rate authorized by law,
as a resolution authorizing the
issuance of the bond anticipation notes may provide.
(c) The bond anticipation notes may be made payable as to both
principal and interest from the proceeds of the Bonds. The Authority may
provide for payment of interest on the bond anticipation notes from
direct annual taxes upon all the taxable property located within the
district that are authorized to be levied annually for
that purpose without limit as to rate or amount sufficient to pay the
interest as it falls due, in the manner, subject to the security
interest and lien, and with the effect provided in Section 1E-75 of this Code.
(d) The Authority is authorized to issue renewal notes in the event
it is unable to issue Bonds to pay outstanding bond anticipation notes,
on terms the Authority deems reasonable.
(e) A debt service fund shall be established in the manner provided
in Section 1E-80 of this Code by the Authority for the bond anticipation notes,
and the proceeds of any tax levy made pursuant to this Section shall be
deposited in the fund upon receipt.
(Source: P.A. 92-547, eff. 6-13-02.)
(105 ILCS 5/1E-95)
(This Section scheduled to be repealed in accordance with 105 ILCS 5/1E-165)
Sec. 1E-95. 
		Vesting powers in trustee or other authorized agent. 
		The
resolution
authorizing issuance of the Bonds shall vest in a trustee, paying agent, escrow
agent, or depository such rights,
powers, and duties in trust as the Authority may determine and may
contain such provisions for protecting and enforcing the rights and
remedies of the holders of the Bonds and limiting such rights and
remedies as may be reasonable and proper and not in violation of law,
including covenants setting forth the duties of the Authority in
relation to the exercise of its corporate powers and the custody,
safeguarding, and application of all moneys. The resolution shall
provide for the manner in which moneys in the various funds and accounts
of the Authority may be invested and the disposition of the
earnings on the investments.
(Source: P.A. 92-547, eff. 6-13-02.)
(105 ILCS 5/1E-100)
(This Section scheduled to be repealed in accordance with 105 ILCS 5/1E-165)
Sec. 1E-100. 
		Discharge of bonds.
(a) If the Authority pays or
causes to be paid to the holders of all Bonds then outstanding the
principal, redemption price, if any, and interest to become due on the Bonds,
at the times and
in the manner stipulated therein and in
the resolution authorizing the issuance of the Bonds, then the
covenants, agreements, and other obligations of the Authority to the
Bondholders shall be discharged and satisfied.
(b) Bonds or interest installments for the payment or
redemption of which moneys have been set aside and held
in trust by the trustee or other authorized agent provided for in Section 1E-95
of this Code, through deposit by the Authority of funds for the
payment, redemption, or otherwise, at the maturity or redemption date, are
deemed to have been paid within the meaning and with the effect expressed in
subsection (a) of this Section. All outstanding Bonds of any series, prior to
the maturity or redemption date, are deemed to have been paid within the
meaning and with the effect expressed in subsection (a) of this Section if
(1) there has been deposited with the trustee or other authorized
agent either (A) moneys in an amount that is sufficient or
(B) direct obligations of the United States of America the principal of
and the interest on which, when due, will provide moneys that,
together with the moneys, if any, deposited with the trustee or other
authorized
agent at the same time, are sufficient to pay, when due,
the principal, sinking fund installment, or redemption price,
if applicable, of and interest due and to become due on the Bonds
on and prior to the redemption date, sinking fund installment date, or
maturity date, as the case may be, and (2) the Authority has given the trustee
or other authorized agent, in form satisfactory to it,
irrevocable instructions to give notice to the effect and in
accordance with the procedures provided in the resolution authorizing
the issuance of the Bonds. Neither direct obligations of the United
States of America, moneys deposited with the trustee or other authorized agent,
or
principal or interest payments on the securities shall be
withdrawn or used for any purpose other than, and shall be held in trust
for, the payment of the principal or redemption price, if applicable,
and interest on the Bonds.
(Source: P.A. 92-547, eff. 6-13-02.)
(105 ILCS 5/1E-105)
(This Section scheduled to be repealed in accordance with 105 ILCS 5/1E-165)
Sec. 1E-105. 
		Pledge of the State. 
		The State of Illinois pledges to
and agrees with the holders of Bonds that the State will not limit or
alter the rights and powers vested in the Authority by this Article with
respect to the issuance of obligations so as to impair the terms of any
contract made by the Authority with these holders or in any way impair the
rights and remedies of these holders until the Bonds, together with interest on
the Bonds, interest on any unpaid installments of interest, and all costs and
expenses in connection with any action or
proceedings by or on behalf of these holders, are fully met and
discharged or provisions made for their payment. The Authority is
authorized to include this pledge and agreement of the State in any
resolution or contract with the holders of Bonds.
(Source: P.A. 92-547, eff. 6-13-02.)
(105 ILCS 5/1E-110)
(This Section scheduled to be repealed in accordance with 105 ILCS 5/1E-165)
Sec. 1E-110. 
		Statutory lien. 
		Any pledge, assignment, lien, or
security interest for the benefit of the holders of Bonds or bond
anticipation notes, if any, created pursuant to this Article are valid and
binding from the time the Bonds are issued, without any physical delivery or
further act, and are 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 State, the Authority, the district, or any other person, irrespective of
whether the other parties have notice.
(Source: P.A. 92-547, eff. 6-13-02.)
(105 ILCS 5/1E-115)
(This Section scheduled to be repealed in accordance with 105 ILCS 5/1E-165)
Sec. 1E-115. 
		State or district not liable on obligations. 
		Obligations shall not be
deemed to constitute (i) a debt or liability of the State, the
district, or any political subdivision of the State or district other than the
Authority or (ii) a pledge of the full faith and credit of the State, the
district, or any political
subdivision of the State or district other than the Authority but shall be
payable
solely from the funds and revenues provided for in this Article. The issuance
of obligations shall not directly,
indirectly, or contingently obligate the State, the district, or any political
subdivision of the State or district other than the Authority to levy any form
of
taxation therefor or to make any appropriation for their payment. Nothing in
this Section shall prevent or be construed to prevent the Authority from
pledging its full faith and credit to the payment of obligations.
Nothing in this Article shall be construed to
authorize the Authority to create a debt of the State or the district within
the
meaning of the Constitution or laws of Illinois, and
all obligations issued by the Authority pursuant to the provisions of
this Article are payable and shall state that they are payable solely
from the funds and revenues pledged for their payment in accordance with
the resolution authorizing their issuance or any trust indenture
executed as security therefor. The State or
the district shall not in any event be liable for the payment of
the principal of or interest on any obligations of the Authority or for
the performance of any pledge, obligation, or agreement of any
kind whatsoever that may be undertaken by the Authority. No breach of
any such pledge, obligation, or agreement may impose any
liability upon the State or the district or any charge upon their
general credit or against their taxing power.
(Source: P.A. 92-547, eff. 6-13-02.)
(105 ILCS 5/1E-120)
(This Section scheduled to be repealed in accordance with 105 ILCS 5/1E-165)
Sec. 1E-120. 
		Obligations as legal investments. 
		The obligations issued under
the provisions of this Article are hereby made securities in which all public
officers and bodies of this State, all political subdivisions of this State,
all persons carrying on an insurance business, all banks, bankers, trust
companies, saving banks, and savings associations (including savings and loan
associations, building and loan associations, investment companies, and
other persons carrying on a banking business), and all credit unions, pension
funds, administrators, and guardians who are or may be authorized to invest in
bonds or in other obligations of the State may properly and legally invest
funds, including capital, in their control or belonging to them. The
obligations are also hereby made securities that may be deposited with and may
be received by all public officers
and bodies of the State, all political subdivisions of the State, and
public corporations for any purpose for which the deposit of bonds or
other obligations of the State is authorized.
(Source: P.A. 92-547, eff. 6-13-02.)
(105 ILCS 5/1E-125)
(This Section scheduled to be repealed in accordance with 105 ILCS 5/1E-165)
Sec. 1E-125. 
		Complete authority. 
		This Article, without reference to any
other law, shall be deemed full and complete authority for the issuance of
Bonds and bond anticipation notes as provided in this Article.
(Source: P.A. 92-547, eff. 6-13-02.)
(105 ILCS 5/1E-130)
(This Section scheduled to be repealed in accordance with 105 ILCS 5/1E-165)
Sec. 1E-130. 
		Reports.
(a) The Authority, upon taking office and annually thereafter,
shall prepare and submit to the Governor, General Assembly, and State
Superintendent a report that includes the audited financial
statement for the preceding fiscal year, an approved
financial plan, and a statement of the major steps necessary to accomplish
the objectives of the financial plan.
(b) Annual reports shall be submitted on or before March 1 of
each year.
(c) The requirement for reporting to the General Assembly shall be
satisfied by filing copies of the report as provided in Section 3.1 of the
General Assembly Organization Act and by filing additional copies with the
State Government Report Distribution Center for the General Assembly as
required under subdivision (t) of Section 7 of the State Library Act.
(Source: P.A. 92-547, eff. 6-13-02.)
(105 ILCS 5/1E-135)
(This Section scheduled to be repealed in accordance with 105 ILCS 5/1E-165)
Sec. 1E-135. 
		Audit of Authority. 
		The Authority shall be subject to
audit in the manner provided for the audit of State funds and accounts.
A copy of the audit report shall be submitted to the State
Superintendent, the Governor, the Speaker and Minority Leader of the
House of Representatives, and the President and Minority Leader of the
Senate.
(Source: P.A. 92-547, eff. 6-13-02.)
(105 ILCS 5/1E-140)
(This Section scheduled to be repealed in accordance with 105 ILCS 5/1E-165)
Sec. 1E-140. 
		
		Assistance by State agencies, units of local
government, and school districts. The district shall render such services to
and permit the use of its facilities and resources by the Authority at
no charge as may be requested by the Authority. Any State agency, unit
of local government, or school district may, within its lawful
powers and duties, render such services to the Authority as may be
requested by the Authority. Upon request of the Authority, any State agency,
unit of local government, or school district is authorized
and empowered to loan to the Authority such officers and
employees as the Authority may deem necessary in carrying out its
functions and duties. Officers and employees so transferred
shall not lose or forfeit their employment status or rights.
(Source: P.A. 92-547, eff. 6-13-02.)
(105 ILCS 5/1E-145)
(This Section scheduled to be repealed in accordance with 105 ILCS 5/1E-165)
Sec. 1E-145. 
		Property of Authority exempt from taxation. 
		The
property of the Authority is exempt from taxation.
(Source: P.A. 92-547, eff. 6-13-02.)
(105 ILCS 5/1E-150)
(This Section scheduled to be repealed in accordance with 105 ILCS 5/1E-165)
Sec. 1E-150. 
		Sanctions.
(a) No member, officer, employee, or agent of the district may
commit the district to any contract or other obligation or incur any
liability on behalf of the district for any purpose if the amount of the
contract, obligation, or liability is in excess of the amount authorized
for that purpose then available under the financial plan and budget then
in effect.
(b) No member, officer, employee, or agent of the district may
commit the district to any contract or other obligation on behalf of the
district for the payment of money for any purpose required to be approved
by the Authority unless the contract or other obligation has been
approved by the Authority.
(c) No member, officer, employee, or agent of the district may take
any action in violation of any valid order of the Authority, may
fail or refuse to take any action required by any such order, may
prepare, present, certify, or report any information, including any projections
or estimates, for the Authority or any of its agents that is
false or misleading, or, upon learning that any such information is
false or misleading, may fail promptly to advise the Authority or its
agents.
(d) In addition to any penalty or liability under any other law,
any member, officer, employee, or agent of the district who violates
subsection (a), (b), or (c) of this Section is subject to
appropriate administrative discipline as may be imposed by the Authority,
including, if warranted, suspension from duty without pay, removal from
office, or termination of employment.
(Source: P.A. 92-547, eff. 6-13-02.)
(105 ILCS 5/1E-155)
(This Section scheduled to be repealed in accordance with 105 ILCS 5/1E-165)
Sec. 1E-155. 
		Abolition of Authority. 
		The Authority shall be
abolished 10 years after its creation or one year after all its
obligations issued under the provisions of this Article have been fully paid
and discharged, whichever comes later. However, the State Board, upon
recommendation of the Authority
and if no obligations are outstanding, may abolish the Authority at any time
after the Authority has been in existence for 3 years. Upon the
abolition of the Authority, all of its
records shall be transferred to the State Board and any property of the
Authority
shall pass to and be vested in the State Board.
(Source: P.A. 92-547, eff. 6-13-02.)
(105 ILCS 5/1E-160)
(This Section scheduled to be repealed in accordance with 105 ILCS 5/1E-165)
Sec. 1E-160. 
		
		Limitations of actions after abolition;
indemnification; legal representation.
(a) Abolition of the Authority pursuant to Section 1E-155 of this Code shall
bar any remedy available against the Authority, its members, employees, or
agents for any right or claim existing or any liability incurred prior to the
abolition unless the action or other proceeding is commenced prior to the
expiration of 2 years after the date of the abolition.
(b) The Authority may indemnify any member, officer, employee, or
agent who was or is a party or is threatened to be made a party to any
threatened, pending, or completed action, suit, or proceeding, whether
civil, criminal, administrative, or investigative, by reason of the fact
that he or she was a member, officer, employee, or agent of the Authority,
against expenses (including attorney's fees, judgments, fines, and
amounts paid in settlement actually and reasonably incurred by him or her in
connection with the action, suit, or proceeding) if he or she acted in good
faith and in a manner that he or she reasonably believed to be in or not
opposed to the best interests of the Authority and, with respect to any
criminal action or proceeding, had no reasonable cause to believe his or her
conduct was unlawful. The termination of any action, suit, or proceeding by
judgment, order, settlement, or conviction or upon a plea of nolo
contendere or its equivalent, shall not, of itself, create a presumption
that the person did not act in good faith in a manner that he or she reasonably
believed to be in or not opposed to the best interest of the Authority and,
with respect to any criminal
action or proceeding, had reasonable cause to believe that his or her conduct
was unlawful.
To the extent that a member, officer, employee, or agent of the
Authority has been successful, on the merits or otherwise, in the
defense of any such action, suit, or proceeding referred to in this
subsection (b) or in defense of any claim, issue, or matter therein, he or she
shall be indemnified against expenses, including attorney's fees, actually and
reasonably incurred by him or her in connection therewith. Any such
indemnification shall be made by the Authority only as authorized in the
specific case, upon a
determination that indemnification of the member, officer, employee, or agent
is proper in the circumstances because he or she has met the applicable
standard of conduct. The determination shall be made (i) by the Authority by a
majority vote of a quorum consisting of members who are not parties to the
action, suit, or proceeding or (ii) if such a quorum is not obtainable
or, even if obtainable, a quorum of disinterested members so directs,
by independent legal counsel in a written opinion.
Reasonable expenses incurred in defending an action, suit, or
proceeding shall be paid by the Authority in advance of the final
disposition of the action, suit, or proceeding, as authorized by the
Authority in the specific case, upon receipt of an undertaking
by or on behalf of the member, officer, employee, or agent to repay
the amount, unless it is ultimately determined that he or she is
entitled to be indemnified by the Authority as authorized in this
Section.
Any member, officer, employee, or agent against whom any action,
suit, or proceeding is brought may employ his or her own attorney to
appear on his or her behalf.
The right to indemnification accorded by this Section shall not
limit any other right to indemnification to which the member, officer,
employee, or agent may be entitled. Any rights under this Section shall inure
to the benefit of the heirs, executors, and administrators of any member,
officer, employee, or agent of the Authority.
The Authority may purchase and maintain insurance on behalf of any
person who is or was a member, officer, employee, or agent of the
Authority against any liability asserted against him or her and incurred by him
or her in any such capacity or arising out of his or her status as such,
whether or not the Authority would have the power to indemnify him or her
against the liability under the provisions of this Section.
The Authority shall be considered a State agency for purposes of
receiving representation by the Attorney General. Members, officers,
employees, and agents of the Authority shall be entitled to representation
and indemnification under the State Employee Indemnification Act.
(Source: P.A. 92-547, eff. 6-13-02.)
(105 ILCS 5/1E-165)
(This Section scheduled to be repealed in accordance with this Section)
Sec. 1E-165. Repeal. When the Authority established pursuant to this Article is abolished pursuant to Section 1E-155, this Article shall be repealed.
(Source: P.A. 97-429, eff. 8-16-11.)