(70 ILCS 3605/12a) (from Ch. 111 2/3, par. 312a)
Sec. 12a.
(a) In addition to other powers provided in Section 12b,
the Authority may issue its notes from time to time, in anticipation of
tax receipts of the Regional Transportation Authority allocated to the Authority
or of other revenues or receipts of the Authority, in order to provide money
for the Authority to cover any cash flow deficit which the Authority anticipates
incurring. Provided, however, that no such notes may be issued unless the
annual cost thereof is incorporated in a budget or revised budget of the
Authority which has been approved by the Regional Transportation Authority.
Any such notes are referred to as "Working Cash Notes".
Provided further that, the board shall not issue and have outstanding or
demand and direct that the Board of the Regional Transportation Authority
issue and have outstanding more than an aggregate of $40,000,000 in Working Cash Notes.
No Working Cash
Notes shall be issued for a term of longer than 18 months. Proceeds of Working
Cash Notes may be used to pay day to day operating expenses of the Authority,
consisting of wages, salaries and fringe benefits, professional and technical
services (including legal, audit, engineering and other consulting services),
office rental, furniture, fixtures and equipment, insurance premiums, claims
for self-insured amounts under insurance policies, public utility obligations
for telephone, light, heat and similar items, travel expenses,
office supplies, postage,
dues, subscriptions, public hearings and information expenses, fuel purchases,
and payments of grants and payments under purchase of service agreements
for operations of transportation agencies, prior to the receipt by the Authority
from time to time of funds for paying such expenses. Proceeds of the Working
Cash Notes shall not be used (i) to increase or provide a debt service
reserve fund for any bonds or notes other than Working Cash Notes of the
same Series, or (ii) to pay principal of or interest or redemption premium
on any capital bonds or notes, whether as such amounts become due or by
earlier redemption, issued by the Authority or a transportation agency to
construct or acquire public transportation facilities, or to provide funds
to purchase such capital bonds or notes.
(b) The ordinance providing for the issuance of any such notes shall fix
the date or dates of maturity, the dates on which interest is payable, any sinking fund
account or reserve fund account provisions and all other details of such
notes and may provide for such covenants or agreements necessary or desirable
with regard to the issue, sale and security of such notes. The Authority
shall determine and fix the rate or rates of interest of its notes issued
under this Act in an ordinance adopted by the Board prior to the issuance
thereof, none of which rates of interest shall exceed that permitted in the Bond Authorization Act.
Interest may be payable annually or semi-annually, or at such other times
as determined by the Board. Notes issued under this Section may be issued
as serial or term obligations, shall be of such denomination or denominations
and form, including interest coupons to be attached thereto, be executed
in such manner, shall be payable at such place or places and bear such date
as the Board shall fix by the ordinance authorizing such note and shall
mature at such time or times, within a period not to exceed 18 months from
the date of issue, and may be redeemable prior to maturity with or without
premium, at the option of the Board, upon such terms and conditions as the
Board shall fix by the ordinance authorizing the issuance of such notes.
The Board may provide for the registration of notes in the name of the owner
as to the principal alone or as to both principal and interest, upon such
terms and conditions as the Board may determine. The ordinance authorizing
notes may provide for the exchange of such notes which are fully registered,
as to both principal and interest, with notes which are registerable as
to principal only. All notes issued under this Section by the Board shall
be sold at a price which may be at a premium or discount but such that the
interest cost (excluding any redemption premium) to the Board of the proceeds
of an issue of such notes, computed to stated maturity according to standard
tables of bond values, shall not exceed that permitted in the Bond Authorization Act. Such notes
shall be sold at such time or times as the Board shall determine. The notes
may be sold either upon competitive bidding or by negotiated sale (without
any requirement of publication of intention to negotiate the sale of such
notes), as the Board shall determine by ordinance adopted with the affirmative
votes of at least 4 Directors. In case any officer whose signature appears
on any notes or coupons authorized pursuant to this Section shall cease
to be such officer before delivery of such notes, such signature shall nevertheless
be valid and sufficient for all purposes, the same as if such officer had remained
in office until such delivery. Neither the Directors of the Regional Transportation
Authority, the Directors of the Authority nor any person executing any bonds
or notes thereof shall be liable personally on any such bonds or notes or
coupons by reason of the issuance thereof.
(c) All notes of the Authority issued pursuant to this Section shall be
general obligations of the Authority to which shall be pledged the full
faith and credit of the Authority, as provided in this Section. Such notes
shall be secured as provided in the authorizing ordinance, which may, notwithstanding
any other provision of this Act, include in addition to any other security,
a specific pledge or assignment of and lien on or security interest in any
or all tax receipts of the Regional Transportation Authority allocated to
the Authority and on any or all other revenues or moneys of the Authority
from whatever source which may by law
be utilized for debt service purposes and a specific pledge or assignment
of and lien on or security interest in any funds or accounts established
or provided for by the ordinance of the Board authorizing the issuance of
such notes. Any such pledge, assignment, lien or security interest for
the benefit of holders of notes of the Authority shall be valid and binding
from the time the notes are issued without any physical delivery or further
act, and shall be valid and binding as against and prior to the claims of
all other parties having claims of any kind against the
Authority or any other person irrespective of whether such other parties
have notice of such pledge, assignment, lien or security interest. The
obligations of the Authority incurred pursuant to this Section shall be
superior to and have priority over any other obligations of the Authority
except for obligations under Section 12. The Board may provide in the ordinance
authorizing the issuance of any notes issued pursuant to this Section for
the creation of, deposits in, and regulation and disposition of sinking
fund or reserve accounts relating to such notes. The ordinance authorizing
the issuance of any notes pursuant to this Section may contain provisions
as part of the contract with the holders of the notes, for the creation
of a separate fund to provide for the payment of principal and interest
on such notes and for the deposit in such fund from any or all the tax receipts
of the Regional Transportation Authority allocated to the Authority and
from any or all such other moneys or revenues of the Authority from whatever
source which may by law be utilized for debt service purposes, all as provided
in such ordinance, of amounts to meet the debt service requirements on such
notes, including principal and interest, and any sinking fund or reserve
fund account requirements as may be provided by such ordinance, and all
expenses incident to or in connection with such fund and accounts or the
payment of such notes. Such ordinance may also provide limitations on the
issuance of additional notes of the Authority. No such notes of the Authority
shall constitute a debt of the State of Illinois.
(d) The ordinance of the Board authorizing the issuance of any notes may
provide additional security for such notes by providing for appointment
of a corporate trustee (which may be any trust company or bank having the
powers of a trust company within the State) with respect to such notes.
The ordinance shall prescribe the rights, duties and powers of the trustee
to be exercised for the benefit of the Authority and the protection of the
holders of such notes. The ordinance may provide for the trustee to hold
in
trust, invest and use amounts in funds and accounts created as provided
by the ordinance with respect to the notes. The ordinance shall provide
that amounts so paid to the trustee which are not required to be deposited,
held or invested in funds and accounts created by the ordinance with respect
to notes or used for paying notes to be paid by the trustee to the Authority.
(e) Any notes of the Authority issued pursuant to this Section shall constitute
a contract between the Authority and the holders from time to time of such
notes. In issuing any note, the Board may include in the ordinance authorizing
such issue a covenant as part of the contract with the holders of the notes,
that as long as such obligations are outstanding, it shall make such deposits,
as provided in paragraph (c) of this Section. A certified copy of the ordinance
authorizing the issuance of any such obligations shall be filed at or prior
to the issuance of such obligations with the Regional Transportation Authority,
Comptroller of the State of Illinois and the Illinois Department of Revenue.
(f) The State of Illinois pledges to and agrees with the holders of the
notes of the Authority issued pursuant to this Section that the State will
not limit or alter the rights and powers vested in the Authority by this
Act or in the Regional Transportation Authority by the Regional Transportation
Authority Act so as to impair the terms of any contract made by the Authority
with such holders or in any way impair the rights and remedies of such holders
until such notes, together with interest thereon, with interest on any unpaid
installments of interest, and all costs and expenses in connection with
any action or proceedings by or on behalf of such holders, are fully met
and discharged. In addition, the State pledges to and agrees with the holders
of the notes of the Authority issued pursuant to this Section that the State
will not limit or alter the basis on which State funds are to be paid to
the Authority as provided in the Regional Transportation Authority Act,
or the use of such funds, so as to impair the terms of any such contract.
The Board is authorized to include these pledges and agreements of the State
in any contract with the holders of bonds or notes issued pursuant to this Section.
(g) The Board shall not at any time issue, sell or deliver any Interim
Financing Notes pursuant to this Section which will cause it to have issued
and outstanding at any time in excess of $40,000,000
of Working Cash Notes. Notes which are being paid or retired by such issuance,
sale or delivery of notes, and notes for which sufficient funds have been
deposited with the paying agency of such notes to provide for payment of
principal and interest thereon or to provide for the redemption thereof,
all pursuant to the ordinance authorizing the issuance of such notes, shall
not be considered to be outstanding for the purposes of this paragraph.
(h) The Board, subject to the terms of any agreements with noteholders
as may then exist, shall have power, out of any funds available therefor,
to purchase notes of the Authority which shall thereupon be cancelled.
(i) In addition to any other authority granted by law, the State Treasurer
may, with the approval of the Governor, invest or reinvest, at a price not
to exceed par, any State money in the State Treasury which is not needed
for current expenditures due or about to become due in Interim Financing Notes. In the event of a default on an interim financing note issued by the Chicago Transit Authority in which State money in the State treasury was invested, the Treasurer may, after giving notice to the Authority, certify to the Comptroller the amounts of the defaulted interim financing note, in accordance with any applicable rules of the Comptroller, and the Comptroller must deduct and remit to the State treasury the certified amounts or a portion of those amounts from the following proportions of payments of State funds to the Authority:
(1) in the first year after default, one-third of the total amount of any payments of |