Tax Anticipation Note Act

Illinois · Local Government · §§ 50-420-0-01 to 50-420-9 · 11 sections

Overview

The Tax Anticipation Note Act authorizes public bodies to borrow against taxes and other revenues they expect to receive, issuing short-term notes that are repaid out of those anticipated collections. It sets out who may issue the notes and the terms they carry, caps the amount that may be issued relative to expected revenue, and directs how and from what sources the notes must be paid. The act also protects noteholders by barring impairment of the resulting contract and limiting legal challenges to an issuance, and it operates as independent authority — including a mechanism for the state treasurer to issue tax and revenue anticipation notes on behalf of school districts.

Editorial summary generated from the text of this act. It is not part of the statute — read the sections below for the operative language.

Sections covered

50 ILCS 420/0.01Short title
50 ILCS 420/1As used in this Act "Unit of Government" means any county, municipality, township, special district or unit of local government designated as a unit of local government by law authorized to levy ad valorem taxes, or any school district or public community college district
50 ILCS 420/2Any Unit of Government may issue from time to time general obligation notes (hereinafter called the "Notes") in an amount including principal, interest thereon and costs of issuance thereof not to exceed 85% of the taxes levied, for a specific fund, for the year during which the Notes are issued
50 ILCS 420/3Local Government › 50 ILCS 420 — Tax Anticipation Note Act
50 ILCS 420/4Adoption of ordinance or resolution
50 ILCS 420/4.1(a) The purpose of this Section is to provide a means for units of local government and school districts to finance anticipated cash flow deficits by issuing notes to anticipate the personal property tax replacement taxes
50 ILCS 420/5Local Government › 50 ILCS 420 — Tax Anticipation Note Act
50 ILCS 420/6The Notes shall be executed in the name of the Unit of Government by manual or facsimile signatures of such officials of the Unit of Government as may be designated by the ordinance (or resolution where appropriate)
50 ILCS 420/7The Notes may be issued in excess of any statutory limitation as to debt and shall not operate to reduce the debt incurring power otherwise authorized for any such unit of government
50 ILCS 420/8This Act without reference to any other statute, shall be deemed full and complete authority for the issuance of the Notes as hereinabove provided and shall be construed as an additional or alternate method thereof
50 ILCS 420/9If any Section, sentence, or clause of this Act is for any reason held invalid or to be unconstitutional, such decision shall not affect the validity of the remaining portions of this Act

Enacted in other states

Colorado

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