Illinois Compiled Statutes
60 ILCS 1/ - Township Code.
Article 280 - Township Refunding Bonds

(60 ILCS 1/Art. 280 heading)

 
(60 ILCS 1/280-5)
Sec. 280-5.
Refunding bonds.
(a) The corporate authorities of any township, without submitting the
question to the electors of the township for approval, may authorize by
ordinance the issuance of refunding bonds (i) to refund its bonds before their
maturity; (ii) to refund its unpaid matured bonds; (iii) to refund matured
coupons evidencing interest upon its unpaid bonds; (iv) to refund interest at
the coupon rate upon its unpaid matured bonds that has accrued since the
maturity of those bonds; and (v) to refund its bonds that by their terms are
subject to redemption before maturity.
(b) The refunding bonds may be made registerable as to principal and may
bear interest at a rate not to exceed 6% annually, payable at the time and
place provided in the bond ordinance.
(c) The refunding bonds shall remain valid even though one or more of
the officers executing the bonds ceases to hold that office before the
bonds are delivered.
(d) For purposes of this Article, "corporate authorities of a
township" means the board of officers who were authorized to issue the
bonds that are being refunded under this Article.

(Source: Laws 1941, vol. 2, p. 489; P.A. 88-62.)
 
(60 ILCS 1/280-10)
Sec. 280-10.
Refunding bond ordinance; tax rate.
(a) The ordinance authorizing the refunding bonds shall prescribe all
details of the refunding bonds and shall provide for the levy and collection of
a direct annual tax upon all the taxable property within the township
sufficient to pay the principal of and interest on the refunding bonds as it
matures. This tax shall be in addition to and exclusive of the maximum of all
other taxes authorized to be levied by the township. Tax limitations applicable
to the township provided by other statutes of this State shall not apply to
taxes levied for payment of these refunding bonds.
(b) A certified copy of the bond ordinance shall be filed with the county
clerk of the county in which the township or any portion of the township is
situated and shall constitute the authority for the extension and
collection of refunding bond and interest taxes as required by the
Illinois Constitution.

(Source: Laws 1941, vol. 2, p. 489; P.A. 88-62.)
 
(60 ILCS 1/280-15)
Sec. 280-15.
Exchange or sale of refunding bonds.
(a) The refunding bonds may be exchanged for the bonds to be refunded
on the basis of dollar for dollar for the par value of the bonds, interest
coupons, and interest not represented by coupons, if any. Instead of this
exchange, the refunding bonds may be sold at not less than their par value
and accrued interest. The proceeds received from their sale shall be used
to pay the bonds, interest coupons, and interest not represented by
coupons, if any. This payment may be made without any prior appropriation
for the payment under any budget law.
(b) Bonds and interest coupons that have been received in exchange or paid
shall be cancelled, and the obligation for interest, not represented by
coupons, that has been discharged shall be evidenced by a written
acknowledgment of the exchange or payment.

(Source: Laws 1941, vol. 2, p. 489; P.A. 88-62.)
 
(60 ILCS 1/280-20)
Sec. 280-20.
Form of refunding bonds; use of tax proceeds.
(a) The refunding bonds shall be of a form and denomination, payable at a
place, bear a date, and be executed by officials as provided by the corporate
authorities of the township in the bond ordinance. They shall mature within not
more than 20 years from their date and may be made callable on any interest
payment date at par and accrued interest after notice has been given at the
time and in the manner provided in the bond ordinance.
(b) If there is no default in payment of the principal of or interest upon
the refunding bonds and if, after setting aside a sum of money equal to the
amount of interest that will accrue on the refunding bonds and a sum of
money equal to the amount of principal that will become due on the
refunding bonds within the next 6 months period, then the treasurer of the
township shall use the money available from the proceeds of taxes levied for
the payment of the refunding bonds in calling them for payment if, by their
terms, they are subject to redemption. A township may, however, provide in the
bond ordinance that whenever the township is not in default in payment of the
principal of or interest upon the refunding bonds and has set aside the
sums of money provided in this paragraph for interest accruing and
principal maturing within the next 6 months period, the money available
from the proceeds of taxes levied for the payment of refunding bonds shall
be used first in the purchase of the refunding bonds at the lowest price
obtainable (but not to exceed their par value and accrued interest) after
sealed tenders for their purchase have been advertised for as
directed by the corporate authorities of the township.
(c) Refunding bonds called for payment and paid or purchased under this
Section shall be marked paid and cancelled.

(Source: Laws 1941, vol. 2, p. 489; P.A. 88-62.)
 
(60 ILCS 1/280-25)
Sec. 280-25.
Abatement of taxes.
(a) Whenever any refunding bonds are purchased and cancelled under Section
280-20, the taxes thereafter to be extended for payment of the principal of and
interest on the remainder of the issue shall be reduced in an amount equal to
the principal of and the interest that would have thereafter accrued upon the
refunding bonds cancelled. A resolution shall be adopted by the corporate
authorities of the township finding these facts. A certified copy of this
resolution shall be filed with the county clerk specified in Section 280-10,
whereupon the county clerk shall reduce and extend the tax levies in
accordance with the resolution.
(b) Whenever refunding bonds are issued, proper reduction of taxes
previously levied for the payment of the bonds refunded and next to be
extended for collection shall be made by the county clerk upon receipt of
a certificate signed by the supervisor or other corresponding officer of
the township showing the bonds refunded and the tax to be abated.

(Source: Laws 1941, vol. 2, p. 489; P.A. 88-62.)
 
(60 ILCS 1/280-30)
Sec. 280-30.
Sinking fund.
(a) Money that becomes available from taxes that were levied for prior
years for payment of bonds or interest coupons that were paid or refunded
before those taxes were collected, after payment of all warrants that may
have been issued in anticipation of these taxes, shall be placed in the
sinking fund account provided in this Section. The account shall be used to
purchase, call for payment, or pay at maturity refunding bonds and
interest on those bonds as provided in this Section.
(b) Money received from the proceeds of taxes levied for the payment of the
principal of and interest upon refunding bonds shall be deposited in a
special fund of the township designated as the Refunding Bond and Interest
Sinking Fund Account of (name of township).
This fund shall be faithfully applied to the purchase or payment of refunding
bonds and the interest on those bonds under this Article.
(c) If the money in the sinking fund is not immediately necessary for the
payment of refunding bonds or if refunding bonds cannot be purchased before
maturity, then, under the direction of the corporate authorities of the
township, the money may be invested by the treasurer of the township in
bonds or other interest bearing obligations of the United States or in
bonds of the State of Illinois.
(d) The maturity date of the securities in which the money in the sinking
fund is invested shall be before the due date of any issue of refunding bonds
of the investing township. The corporate authorities may sell these securities
whenever necessary to obtain cash to meet bond and interest payments.

(Source: Laws 1941, vol. 2, p. 489; P.A. 88-62.)
 
(60 ILCS 1/280-35)
Sec. 280-35.
Notice to owners of unpaid bonds; refunding plan.
(a) The corporate authorities of a township may take any action that
may be necessary to inform the owners of unpaid bonds regarding the
financial condition of the township and the necessity of refunding its
unpaid bonds and readjusting the maturities of those bonds in order that
sufficient taxes may be collected to take care of these bonds and thus
re-establish the credit of the township.
(b) The corporate authorities may enter into any agreement required to
prepare and carry out any refunding plan and, without any previous
appropriation under any budget law, may incur and pay expenditures that may be
necessary in order to accomplish the refunding of the bonds of the township.

(Source: Laws 1941, vol. 2, p. 489; P.A. 88-62.)
 
(60 ILCS 1/280-40)
Sec. 280-40.
Application and construction.
This Article applies to any
township, regardless of the law under which it is organized and operating, and
constitutes complete authority for issuing refunding bonds under this Article
without reference to other laws. This Article shall be construed as conferring
powers in addition to, but not as limiting, powers granted under other laws.

(Source: Laws 1941, vol. 2, p. 489; P.A. 88-62.)

Structure Illinois Compiled Statutes