Board authorizes $1.394 million loan from Midland States Bank to buy nine buses
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Summary
Effingham Unit 40 authorized borrowing $1,394,109 from Midland States Bank (lease-to-buy) to finance nine buses ordered over two years ago; Andrew D. Johnson authorized to sign loan documents as treasurer.
The Effingham CUSD 40 board authorized a lease‑to‑buy financing agreement with Midland States Bank to purchase nine school buses for a total of $1,394,109.
District staff explained the buses were ordered more than two years earlier and that using the district’s banking relationship yielded a lower interest rate. The district expects the last bus delivery in December. The financing is structured as a lease‑to‑buy, with title passing to the district at the end of the term; staff noted the district closely monitors bus replacement and resale timing because of state reimbursement rules.
The motion to authorize Effingham CUSD 40 to borrow $1,394,109 from Midland States Bank and to authorize Andrew D. Johnson to sign loan documents on behalf of the district as treasurer was made and passed by roll call. Board members thanked staff for securing financing and confirmed delivery and procurement timelines.