Adherence to federal and state laws is a required component of any bond issuance for the borrowing to be binding and legally valid. Below is a sampling of current laws governing the borrowing activities of school districts.
State Blue Sky Laws. The offering, sale and purchase of securities in Illinois are governed by the Illinois Securities Law of 1953, 815 ILCS 5/1 (the “Blue Sky Law”). The Blue Sky Law provides for registration of securities, licensing and regulation of securities broker-dealers, agents, investment advisers, and investment adviser representatives. Subject to statutory exemptions or exceptions, offers and sales of securities in Illinois which are not covered by federal securities law must be registered by coordination or qualification procedures, as applicable. Registration statements for offerings registered by qualification in Illinois must contain full and fair disclosure of all material facts regarding the investment offered and present specific categories of information and financial statements pursuant to the Blue Sky Law.