2023 Illinois Compiled Statutes › Chapter 50 - LOCAL GOVERNMENT › 50 ILCS 425/ - Revenue Anticipation Act.

(50 ILCS 425/0.01) (from Ch. 85, par. 831)
Sec. 0.01. 
		Short title. 
		This Act may be cited as the
Revenue Anticipation Act.
(Source: P.A. 86-1324.)
(50 ILCS 425/1) (from Ch. 85, par. 831-1)
Sec. 1. 
		
		This Act shall be construed as cumulative authority and not
as a repeal of any existing statute authorizing the issuance of obligations
to anticipate revenue from any source including, but not limited to, federal
aid, State revenue sharing, local taxes and fees.  This Act shall apply
to all units of local government and school districts.
(Source: P.A. 83-1521.)
(50 ILCS 425/2) (from Ch. 85, par. 831-2)
Sec. 2. 
		
		Whenever there are not sufficient funds on hand to pay obligations
and the governing body of the unit of local government or school district
shall deem it for the best interest of the unit of local government or school
district, as the case may be, to provide funds for the payment of its
obligations which are either general expenses or otherwise, whether due or
to accrue in the then fiscal year, and it shall theretofore have been
assured in writing of receiving revenue from a reliable source such as
federal aid, State revenue sharing or local fees for the payment of such
obligations and shall have filed with the proper county clerk the necessary
evidence of such assurance, such unit of local government or school
district is hereby authorized to provide funds for such purpose and issue
its notes therefor in the manner provided in this Act.
The governing body shall provide for such issue by an appropriate resolution
which shall set forth:
(a) The amount of money to be borrowed and the purpose for which it will
be expended, the estimated revenues and the aggregate appropriations for
such purpose.  The purpose need not be stated in detail, but the statement
thereof shall indicate whether such funds are for the payment of general
expenses or for a particular fund, and if for a particular fund it shall be identified.
(b) The date, rate of interest, place of payment and maturity or
maturities.  Such notes may be payable at a designated bank or at the
office of the treasurer.
(c) The amount of warrants or notes theretofore issued under this or any
other act to anticipate the collection of such revenues.
(d) A pledge of so much of such revenues as may be necessary for the payment
of obligations issued hereunder.
(Source: P.A. 83-1521.)
(50 ILCS 425/3) (from Ch. 85, par. 831-3)
Sec. 3. 
		
		Notes issued under this Act shall be due not more than 12 months
from the date of issue and shall be payable in accordance with the resolution
adopted by the governing body providing for the issuance of the notes or
warrants. Notes issued under this Act shall bear interest at not more than
the maximum interest rate allowed by "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, payable annually or semi-annually
or at the time of payment of principal.  The interest to the due date of
the note may be represented by appropriate coupons and be executed by the
facsimile signature of the appropriate treasurer.  No notes shall be issued
under this Act after the revenue to be anticipated is delinquent.  No notes
shall be issued or sold, unless such issuance and sale is authorized by
a vote of at least 2/3 of the members elected to the governing body.  The notes
shall be sold to the highest responsible bidder after due advertisement
and public opening of bids.  The governing body may authorize notes to be
issued and sold from time to time and in such amounts as the appropriate
treasurer deems necessary to provide funds to pay obligations due or to
accrue within the then fiscal year.
Notes issued under this Act shall be received by any collector of
revenues against which they are issued at par plus accrued interest, and
when so received shall be cancelled with the same effect as though paid
pursuant to this Act.
Such notes shall be signed by the presiding officer of the governing body
and countersigned by the treasurer.  Such
notes shall be payable to bearer provided that the notes may be registered
as to principal in the name of the holder on the books of the treasurer
and evidence of such registration shall be endorsed upon the back of notes
so registered.  After such registration no transfer shall be made except
upon such books and similarly noted on the note unless the last registration
was to bearer.  Such notes may be re-registered from time to time in the
name of the designated holder but such registration shall not affect the
negotiability of the coupons attached.
(Source: P.A. 83-1521.)
(50 ILCS 425/4) (from Ch. 85, par. 831-4)
Sec. 4. 
		
		A certified copy of the resolution adopted pursuant to the
provisions of this Act, together with such other showings as may be deemed
proper in the particular case shall be filed with the treasurer.  There
shall also be presented to the treasurer the printed or lithographed notes
and coupons, duly executed, for authentication.
(Source: P.A. 83-1521.)
(50 ILCS 425/5) (from Ch. 85, par. 831-5)
Sec. 5. 
		
		Whenever satisfactory showings as prescribed by this Act shall
have been filed with the treasurer he shall examine the same and if found
to be in compliance with this Act he shall endorse on the back of each note
his certificate of authenticity which certificate shall set forth:
(a) The amount of the revenue from which such note is payable and the
rate limit, if any, on the amount of such revenue.
(b) The amount of anticipatory obligations theretofore issued and payable
out of such revenues and the amount of the issue of which such note is one.
(Source: P.A. 83-1521.)
(50 ILCS 425/6) (from Ch. 85, par. 831-6)
Sec. 6. 
		
		The treasurer shall keep a registry of each series of notes
so issued, together with a copy thereof.
(Source: P.A. 83-1521.)
(50 ILCS 425/7) (from Ch. 85, par. 831-7)
Sec. 7. 
		
		Anticipatory obligations issued against such expected revenues
for any purpose shall not be in excess of 85% of such revenues.
(Source: P.A. 83-1521.)
(50 ILCS 425/8) (from Ch. 85, par. 831-8)
Sec. 8. 
		
		It is hereby made the duty of the treasurer authenticating
any note issued under the provisions of this Act, as and when revenues so
anticipated are received by him, to promptly transmit to the bank designated
in the notes as the place of payment, funds sufficient to pay principal
and interest on notes issued under this Act or if the notes are payable
at his office to pay the same as provided in this Act.
(Source: P.A. 83-1521.)
(50 ILCS 425/9) (from Ch. 85, par. 831-9)
Sec. 9. 
		
		Whenever funds are available for the payment of notes issued
under the provisions of this Act the treasurer shall transmit the same to
the bank designated in the note as the place of payment together with written
advice that funds are available to pay particular notes, designating the
same in numerical order, and that the same will cease to bear interest 15 days
subsequent to the date of such notice, and such bank shall pay accordingly.
The treasurer shall take receipt from the bank for such remittance and
thereafter such treasurer shall be relieved of responsibility in connection
therewith, a copy of which notice shall be published once by the treasurer
in a newspaper published in the county at least 5 days prior to the date
fixed for redemption. A copy of such notice shall be mailed to any holder
or owner of such notes or agent thereof, requesting the same in writing.
Notes may state on their face that they will not be subject to call on or
before a date fixed in the resolution by the governing body but which date
shall be approximately the date on which it is anticipated the first
revenue collections will be received by the treasurer.  When notes are
payable at the office of the treasurer he shall set aside funds for payment
of notes instead of remitting to a bank and give notice of redemption as
above provided, and pay accordingly.
(Source: P.A. 83-1521.)
(50 ILCS 425/10) (from Ch. 85, par. 831-10)
Sec. 10. 
		
		Notes issued under the provisions of this Act shall be incontestable
after authentication by the treasurer and delivery to a purchaser for a
valuable consideration, and in like manner and to like extent as though the
same were negotiable instruments, and shall be payable only out of and from
the proceeds of revenues expected and described in the proceedings authorizing
the issuance of the notes, and shall so state on their face, and shall not
be deemed to be an obligation of the unit of local government or school
district within any constitutional or statutory limitation.
(Source: P.A. 83-1521.)
(50 ILCS 425/11) (from Ch. 85, par. 831-11)
Sec. 11. 
		
		Any official of the unit of local government or school district,
as the case may be, who votes for or otherwise influences the issuance
of notes under this Act in excess of the limitations herein provided shall
be liable for twice the sum of such excessive notes to the unit of local
government or school district, as the case may be, and shall be ineligible
for his office and be subject to removal from office.
(Source: P.A. 83-1521.)
(50 ILCS 425/12)
Sec. 12. 
		Anticipation of certain federal revenues. 
		In the event the
anticipated revenues under this Act are proceeds or receipts of a loan or
grant, or
both, from a federal agency in connection with waterworks or wastewater
facilities,
or both, and related facilities, improvements, and costs, and reasonable
provision
has been made for the payment of interest on the notes when due while the notes
are outstanding; (i) the requirement in Section 2 of this Act for a filing with
the
County Clerk shall not apply, (ii) the 12 month limit on the due date of the
notes in
Section 3 shall be 18 months, and (iii) the 85% limitation on the anticipatory
revenues in Section 7 of this Act shall be 100%.
(Source: P.A. 90-709, eff. 8-7-98.)