Ill. Admin. Code tit. 23 § 575.600

Current through Register Vol. 48, No. 44, November 1, 2024

Section 575.600 - Repayment Procedures

Loans shall be repaid within three years (see Section 2-3.117a of the School Code).

a) The rate of interest shall be stipulated on the loan application and shall not be greater than 50% of the rate for the most recent date shown in the 20 G.O. Bonds Index of average municipal bond yields as published in the most recent edition of The Bond Buyer, published in New York, New York (Section 2-3.117a(a) of the School Code). Interest shall be computed semi-annually.

b) Payments on the loan (principal and interest) shall be made by check twice annually in six equal installments.

1) Due dates for loan payments shall be based on the date on which the recipient's loan determination was made.

A) For recipients with loan determination dates of September 15 or October 15, loan payments shall be due on September 1 and March 1, with the first payment under each loan due on March 1 of the fiscal year in which the loan is made.

B) For recipients with a loan determination date of December 15, loan payments shall be due on December 1 and June 1, with the first payment under each loan due on June 1 of the fiscal year in which the loan is made.

C) For recipients with a loan determination date of March 15, loan payments shall be due on March 1 and September 1, with the first payment under each loan due on September 1 of the fiscal year following the fiscal year in which the loan is made.

D) For recipients with a loan determination date of May 15, loan payments shall be due on December 1 and June 1, with the first payment under each loan due on December 1 of the fiscal year following the fiscal year in which the loan is made.

2) Checks shall be made payable to the "ISBE-School Technology Revolving Loan Fund" and mailed to the Fiscal and Procurement Division, Illinois State Board of Education, 100 North First Street, W-380, Springfield, Illinois 62777-0001.

3) Payments not received within 15 calendar days after the due date shall be assessed a penalty of 5 percent of the payment due; however, the late payment penalty shall be waived when either:

A) the postmark date on the envelope used to submit the payment is dated five days or more before the end of the 15-day grace period; or

B) the payment is not received at the State Board's office within 60 days after the due date, but the participant provides to the State Superintendent of Education no later than 70 days beyond the due date the following:

i) a copy of the original check, dated at least five days before the end of the 15-day grace period;

ii) a copy of the stop payment order placed on the original check; and

iii) a new check issued in the amount due.

c) A participant may prepay the balance due on the loan in its entirety on any scheduled payment date or at the midpoint between any two scheduled payment dates, provided that the participant first contacts the State Superintendent's designee to obtain the total amount of the principal and interest due at that time.

d) A participant may prepay a portion of the balance due on the loan on any scheduled payment date or at the midpoint between any two scheduled payment dates, provided that the participant first contacts the State Superintendent's designee for instructions. The remaining payments shall be recalculated to account for any early repayment, and the participant shall be notified accordingly.

Ill. Admin. Code tit. 23, § 575.600

Amended at 36 Ill. Reg. 8366, effective May 21, 2012