(30 ILCS 105/6a-2) (from Ch. 127, par. 142a2)
Sec. 6a-2.
Retention of certain funds by universities; use of funds;
audit.
(a) Each University listed in Sections 6a or 6a-1 may retain in its
treasury any funds derived from rentals, service charges and laboratory and
building service charges or other sources, assessed or obtained for or
arising out of the operation of any building or buildings or structure or
structures and pledged to discharge obligations created in order to
complete or operate such building or structure, or for the payment of
revenue bonds issued under "An Act to authorize The Board of Trustees of
Southern Illinois University to acquire, build, purchase, or otherwise
construct, equip, complete, remodel, operate, control, and manage student
residence halls, dormitories, dining halls, student union buildings, field
houses, stadiums and other revenue-producing buildings, including sites
therefor, for the Southern Illinois University, defining the duties of The
Board of Trustees of Southern Illinois University with respect to operation
and maintenance thereof, charging rates or fees for the use thereof, and
providing for and authorizing the issuance of bonds for the purpose of
defraying the cost of construction, acquisition or equipment of any such
building or buildings payable from the revenues derived from the operation
thereof, or, when authorized by The Board of Trustees, payable from such
revenues as supplemented by University income authorized by law to be
retained in the University treasury and applied to such purpose, and for
the refunding of any such bonds, and authorizing investment in such bonds",
approved June 30, 1949, as amended, or issued under the "Board of
Governors of State Colleges and Universities Revenue Bond Act", approved
May 8, 1947, as amended, as the case may be; and, to be disbursed from
time to time pursuant to the order and direction of the Board of Trustees
of Southern Illinois University or the Board of Governors of State Colleges
and Universities, and in accordance with any contracts, pledges, trusts or
agreements heretofore or hereafter made by the Board of Trustees or Board
of Governors of State Colleges and Universities.
(b) The Board of Trustees of Southern Illinois University may also
retain in
its treasury, out of student fees and tuition, such sums annually as the
Board determines are necessary to supplement revenue derived from any
building or buildings constructed or acquired after July 1, 1957, or to
supplement revenues derived from any building or buildings having bonds
outstanding thereon which are refunded under the provisions of "An Act to
authorize The Board of Trustees of Southern Illinois University to acquire,
build, purchase, or otherwise construct, equip, complete, remodel, operate,
control, and manage student residence halls, dormitories, dining halls,
student union buildings, field houses, stadiums, and other
revenue-producing buildings, including sites therefor, for the Southern
Illinois University, defining the duties of The Board of Trustees of
Southern Illinois University with respect to operation and maintenance
thereof, charging rates or fees for the use thereof, and providing for and
authorizing the issuance of bonds for the purpose of defraying the cost of
construction, acquisition or equipment of any such building or buildings
payable from the revenues derived from the operation thereof, or, when
authorized by The Board of Trustees, payable from such revenues as
supplemented by University income authorized by law to be retained in the
University treasury and applied to such purpose, and for the refunding of
any such bonds, and authorizing investment in such bonds", approved June
30, 1949, as amended, and pledge or by resolution make a supplementary
allocation of the funds so retained out of students' fees and tuition for
the retirement of such bonds as may be issued under such Act. Such funds as
are so pledged shall annually be credited to the account to which the
pledge applies. Such funds as are supplementarily allocated by Board
resolution subsequent to the resolution creating the bonds shall be
credited in accordance with the terms of the resolution making such
supplementary allocation to the account to which the allocation applies.
The Board may authorize such supplementation only after a determination by
it that the maximum revenues which may reasonably and economically be
derived from the operation of a building proposed to be constructed or
acquired under the Act herein cited will be insufficient to meet the costs
of operation and maintenance and to pay the principal of and interest on
bonds issued for such building, or after a determination by it that the
maximum revenues which may reasonably and economically be derived from the
operation of a building already constructed or acquired under the Act are
or will be insufficient to meet the costs of operation and maintenance and
to pay the principal of and interest on bonds issued for such building. In
no event shall the supplementation from University income be in excess of
an amount which, when added to the revenues to be derived from the
operation of the building or buildings, will be sufficient to meet the
annual debt service requirements on the bonds issued in respect to such
building or buildings, the annual cost of maintenance or operation of such
building or buildings, and to provide for such reserves, accounts or
covenants which the resolution authorizing the issuing of such bonds may
require.
(c) The Auditor General shall audit or cause to be audited the above
items
of income and all other income and expenditures of such institutions.
(d) Beginning on January 1, 1996, the provisions of subsection (a) of this
Section, insofar as they relate to the retention and use of any funds by or on
behalf of the universities listed in Section 6a, shall be superseded by Section
5-35 of the Chicago State University Law and Section 6a-1c of the State Finance
Act with respect to Chicago State University; by Section 10-35 of the Eastern
Illinois University Law and Section 6a-1d of the State Finance Act with respect
to Eastern Illinois University; by Section 15-35 of the Governors State
University Law and Section 6a-1e of the State Finance Act with respect to
Governors State University; by Section 25-35 of the Northeastern Illinois
University Law and Section 6a-1f of the State Finance Act with respect to
Northeastern Illinois University; and by Section 35-35 of the Western Illinois
University Law and Section 6a-1g of the State Finance Act with respect to
Western Illinois University. On January 1, 1996 all funds deposited, retained,
or
otherwise held under subsection (a) of this Section with respect to the
universities listed in Section 6a shall be transferred, retained and held as
provided by the provisions of law cited in this subsection (d) as superseding
the provisions of subsection (a) of this Section, and in accordance with any
contracts, pledges, trusts, or agreements heretofore made by the Teachers
College Board or the Board of
Governors of State Colleges and Universities, or hereafter made by the
respective Boards of Trustees of the Universities named in this paragraph
(d).
(Source: P.A. 89-4, eff. 1-1-96.)
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