Full Text of HB2823 101st General Assembly
HB2823eng 101ST GENERAL ASSEMBLY |
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| 1 | | AN ACT concerning local government.
| 2 | | Be it enacted by the People of the State of Illinois,
| 3 | | represented in the General Assembly:
| 4 | | Section 5. The Metropolitan Transit Authority Act is | 5 | | amended by changing Section 12a as follows:
| 6 | | (70 ILCS 3605/12a) (from Ch. 111 2/3, par. 312a)
| 7 | | Sec. 12a.
(a) In addition to other powers provided in | 8 | | Section 12b,
the Authority may issue its notes from time to | 9 | | time, in anticipation of
tax receipts of the Regional | 10 | | Transportation Authority allocated to the Authority
or of other | 11 | | revenues or receipts of the Authority, in order to provide | 12 | | money
for the Authority to cover any cash flow deficit which | 13 | | the Authority anticipates
incurring. Provided, however, that | 14 | | no such notes may be issued unless the
annual cost thereof is | 15 | | incorporated in a budget or revised budget of the
Authority | 16 | | which has been approved by the Regional Transportation | 17 | | Authority.
Any such notes are referred to as "Working Cash | 18 | | Notes".
Provided further that, the board shall not issue and | 19 | | have outstanding or
demand and direct that the Board of the | 20 | | Regional Transportation Authority
issue and have outstanding | 21 | | more than an aggregate of $40,000,000 in Working Cash Notes.
No | 22 | | Working Cash
Notes shall be issued for a term of longer than 18 | 23 | | months. Proceeds of Working
Cash Notes may be used to pay day |
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| 1 | | to day operating expenses of the Authority,
consisting of | 2 | | wages, salaries and fringe benefits, professional and | 3 | | technical
services (including legal, audit, engineering and | 4 | | other consulting services),
office rental, furniture, fixtures | 5 | | and equipment, insurance premiums, claims
for self-insured | 6 | | amounts under insurance policies, public utility obligations
| 7 | | for telephone, light, heat and similar items, travel expenses,
| 8 | | office supplies, postage,
dues, subscriptions, public hearings | 9 | | and information expenses, fuel purchases,
and payments of | 10 | | grants and payments under purchase of service agreements
for | 11 | | operations of transportation agencies, prior to the receipt by | 12 | | the Authority
from time to time of funds for paying such | 13 | | expenses. Proceeds of the Working
Cash Notes shall not be used | 14 | | (i) to increase or provide a debt service
reserve fund for any | 15 | | bonds or notes other than Working Cash Notes of the
same | 16 | | Series, or (ii) to pay principal of or interest or redemption | 17 | | premium
on any capital bonds or notes, whether as such amounts | 18 | | become due or by
earlier redemption, issued by the Authority or | 19 | | a transportation agency to
construct or acquire public | 20 | | transportation facilities, or to provide funds
to purchase such | 21 | | capital bonds or notes.
| 22 | | (b) The ordinance providing for the issuance of any such | 23 | | notes shall fix
the date or dates of maturity, the dates on | 24 | | which interest is payable, any sinking fund
account or reserve | 25 | | fund account provisions and all other details of such
notes and | 26 | | may provide for such covenants or agreements necessary or |
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| 1 | | desirable
with regard to the issue, sale and security of such | 2 | | notes. The Authority
shall determine and fix the rate or rates | 3 | | of interest of its notes issued
under this Act in an ordinance | 4 | | adopted by the Board prior to the issuance
thereof, none of | 5 | | which rates of interest shall exceed that permitted in the Bond | 6 | | Authorization Act.
Interest may be payable annually or | 7 | | semi-annually, or at such other times
as determined by the | 8 | | Board. Notes issued under this Section may be issued
as serial | 9 | | or term obligations, shall be of such denomination or | 10 | | denominations
and form, including interest coupons to be | 11 | | attached thereto, be executed
in such manner, shall be payable | 12 | | at such place or places and bear such date
as the Board shall | 13 | | fix by the ordinance authorizing such note and shall
mature at | 14 | | such time or times, within a period not to exceed 18 months | 15 | | from
the date of issue, and may be redeemable prior to maturity | 16 | | with or without
premium, at the option of the Board, upon such | 17 | | terms and conditions as the
Board shall fix by the ordinance | 18 | | authorizing the issuance of such notes.
The Board may provide | 19 | | for the registration of notes in the name of the owner
as to | 20 | | the principal alone or as to both principal and interest, upon | 21 | | such
terms and conditions as the Board may determine. The | 22 | | ordinance authorizing
notes may provide for the exchange of | 23 | | such notes which are fully registered,
as to both principal and | 24 | | interest, with notes which are registerable as
to principal | 25 | | only. All notes issued under this Section by the Board shall
be | 26 | | sold at a price which may be at a premium or discount but such |
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| 1 | | that the
interest cost (excluding any redemption premium) to | 2 | | the Board of the proceeds
of an issue of such notes, computed | 3 | | to stated maturity according to standard
tables of bond values, | 4 | | shall not exceed that permitted in the Bond Authorization Act. | 5 | | Such notes
shall be sold at such time or times as the Board | 6 | | shall determine. The notes
may be sold either upon competitive | 7 | | bidding or by negotiated sale (without
any requirement of | 8 | | publication of intention to negotiate the sale of such
notes), | 9 | | as the Board shall determine by ordinance adopted with the | 10 | | affirmative
votes of at least 4 Directors. In case any officer | 11 | | whose signature appears
on any notes or coupons authorized | 12 | | pursuant to this Section shall cease
to be such officer before | 13 | | delivery of such notes, such signature shall nevertheless
be | 14 | | valid and sufficient for all purposes, the same as if such | 15 | | officer had remained
in office until such delivery. Neither the | 16 | | Directors of the Regional Transportation
Authority, the | 17 | | Directors of the Authority nor any person executing any bonds
| 18 | | or notes thereof shall be liable personally on any such bonds | 19 | | or notes or
coupons by reason of the issuance thereof.
| 20 | | (c) All notes of the Authority issued pursuant to this | 21 | | Section shall be
general obligations of the Authority to which | 22 | | shall be pledged the full
faith and credit of the Authority, as | 23 | | provided in this Section. Such notes
shall be secured as | 24 | | provided in the authorizing ordinance, which may, | 25 | | notwithstanding
any other provision of this Act, include in | 26 | | addition to any other security,
a specific pledge or assignment |
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| 1 | | of and lien on or security interest in any
or all tax receipts | 2 | | of the Regional Transportation Authority allocated to
the | 3 | | Authority and on any or all other revenues or moneys of the | 4 | | Authority
from whatever source which may by law
be utilized for | 5 | | debt service purposes and a specific pledge or assignment
of | 6 | | and lien on or security interest in any funds or accounts | 7 | | established
or provided for by the ordinance of the Board | 8 | | authorizing the issuance of
such notes. Any such pledge, | 9 | | assignment, lien or security interest for
the benefit of | 10 | | holders of notes of the Authority shall be valid and binding
| 11 | | from the time the notes are issued without any physical | 12 | | delivery or further
act, and shall be valid and binding as | 13 | | against and prior to the claims of
all other parties having | 14 | | claims of any kind against the
Authority or any other person | 15 | | irrespective of whether such other parties
have notice of such | 16 | | pledge, assignment, lien or security interest. The
obligations | 17 | | of the Authority incurred pursuant to this Section shall be
| 18 | | superior to and have priority over any other obligations of the | 19 | | Authority
except for obligations under Section 12. The Board | 20 | | may provide in the ordinance
authorizing the issuance of any | 21 | | notes issued pursuant to this Section for
the creation of, | 22 | | deposits in, and regulation and disposition of sinking
fund or | 23 | | reserve accounts relating to such notes. The ordinance | 24 | | authorizing
the issuance of any notes pursuant to this Section | 25 | | may contain provisions
as part of the contract with the holders | 26 | | of the notes, for the creation
of a separate fund to provide |
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| 1 | | for the payment of principal and interest
on such notes and for | 2 | | the deposit in such fund from any or all the tax receipts
of | 3 | | the Regional Transportation Authority allocated to the | 4 | | Authority and
from any or all such other moneys or revenues of | 5 | | the Authority from whatever
source which may by law be utilized | 6 | | for debt service purposes, all as provided
in such ordinance, | 7 | | of amounts to meet the debt service requirements on such
notes, | 8 | | including principal and interest, and any sinking fund or | 9 | | reserve
fund account requirements as may be provided by such | 10 | | ordinance, and all
expenses incident to or in connection with | 11 | | such fund and accounts or the
payment of such notes. Such | 12 | | ordinance may also provide limitations on the
issuance of | 13 | | additional notes of the Authority. No such notes of the | 14 | | Authority
shall constitute a debt of the State of Illinois.
| 15 | | (d) The ordinance of the Board authorizing the issuance of | 16 | | any notes may
provide additional security for such notes by | 17 | | providing for appointment
of a corporate trustee (which may be | 18 | | any trust company or bank having the
powers of a trust company | 19 | | within the State) with respect to such notes.
The ordinance | 20 | | shall prescribe the rights, duties and powers of the trustee
to | 21 | | be exercised for the benefit of the Authority and the | 22 | | protection of the
holders of such notes. The ordinance may | 23 | | provide for the trustee to hold
in
trust, invest and use | 24 | | amounts in funds and accounts created as provided
by the | 25 | | ordinance with respect to the notes. The ordinance shall | 26 | | provide
that amounts so paid to the trustee which are not |
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| 1 | | required to be deposited,
held or invested in funds and | 2 | | accounts created by the ordinance with respect
to notes or used | 3 | | for paying notes to be paid by the trustee to the Authority.
| 4 | | (e) Any notes of the Authority issued pursuant to this | 5 | | Section shall constitute
a contract between the Authority and | 6 | | the holders from time to time of such
notes. In issuing any | 7 | | note, the Board may include in the ordinance authorizing
such | 8 | | issue a covenant as part of the contract with the holders of | 9 | | the notes,
that as long as such obligations are outstanding, it | 10 | | shall make such deposits,
as provided in paragraph (c) of this | 11 | | Section. A certified copy of the ordinance
authorizing the | 12 | | issuance of any such obligations shall be filed at or prior
to | 13 | | the issuance of such obligations with the Regional | 14 | | Transportation Authority,
Comptroller of the State of Illinois | 15 | | and the Illinois Department of Revenue.
| 16 | | (f) The State of Illinois pledges to and agrees with the | 17 | | holders of the
notes of the Authority issued pursuant to this | 18 | | Section that the State will
not limit or alter the rights and | 19 | | powers vested in the Authority by this
Act or in the Regional | 20 | | Transportation Authority by the Regional Transportation
| 21 | | Authority Act so as to impair the terms of any contract made by | 22 | | the Authority
with such holders or in any way impair the rights | 23 | | and remedies of such holders
until such notes, together with | 24 | | interest thereon, with interest on any unpaid
installments of | 25 | | interest, and all costs and expenses in connection with
any | 26 | | action or proceedings by or on behalf of such holders, are |
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| 1 | | fully met
and discharged. In addition, the State pledges to and | 2 | | agrees with the holders
of the notes of the Authority issued | 3 | | pursuant to this Section that the State
will not limit or alter | 4 | | the basis on which State funds are to be paid to
the Authority | 5 | | as provided in the Regional Transportation Authority Act,
or | 6 | | the use of such funds, so as to impair the terms of any such | 7 | | contract.
The Board is authorized to include these pledges and | 8 | | agreements of the State
in any contract with the holders of | 9 | | bonds or notes issued pursuant to this Section.
| 10 | | (g) The Board shall not at any time issue, sell or deliver | 11 | | any Interim
Financing Notes pursuant to this Section which will | 12 | | cause it to have issued
and outstanding at any time in excess | 13 | | of $40,000,000
of Working Cash Notes. Notes which are being | 14 | | paid or retired by such issuance,
sale or delivery of notes, | 15 | | and notes for which sufficient funds have been
deposited with | 16 | | the paying agency of such notes to provide for payment of
| 17 | | principal and interest thereon or to provide for the redemption | 18 | | thereof,
all pursuant to the ordinance authorizing the issuance | 19 | | of such notes, shall
not be considered to be outstanding for | 20 | | the purposes of this paragraph.
| 21 | | (h) The Board, subject to the terms of any agreements with | 22 | | noteholders
as may then exist, shall have power, out of any | 23 | | funds available therefor,
to purchase notes of the Authority | 24 | | which shall thereupon be cancelled.
| 25 | | (i) In addition to any other authority granted by law, the | 26 | | State Treasurer
may, with the approval of the Governor, invest |
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| 1 | | or reinvest, at a price not
to exceed par, any State money in | 2 | | the State Treasury which is not needed
for current expenditures | 3 | | due or about to become due in Interim Financing Notes. In the | 4 | | event of a default on an interim financing note issued by the | 5 | | Chicago Transit Authority in which State money in the State | 6 | | treasury was invested, the Treasurer may, after giving notice | 7 | | to the Authority, certify to the Comptroller the amounts of the | 8 | | defaulted interim financing note, in accordance with any | 9 | | applicable rules of the Comptroller, and the Comptroller must | 10 | | deduct and remit to the State treasury the certified amounts or | 11 | | a portion of those amounts from the following proportions of | 12 | | payments of State funds to the Authority:
| 13 | | (1) in the first year after default, one-third of the | 14 | | total amount of any payments of State funds to the | 15 | | Authority; | 16 | | (2) in the second year after default, two-thirds of the | 17 | | total amount of any payments of State funds to the | 18 | | Authority; and | 19 | | (3) in the third year after default and for each year | 20 | | thereafter until the total invested amount is repaid, the | 21 | | total amount of any payments of State funds to the | 22 | | Authority. | 23 | | (Source: P.A. 100-201, eff. 8-18-17.)
| 24 | | Section 10. The Regional Transportation Authority Act is | 25 | | amended by changing Section 4.04 as follows: |
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| 1 | | (70 ILCS 3615/4.04) (from Ch. 111 2/3, par. 704.04) | 2 | | Sec. 4.04. Issuance and Pledge of Bonds and Notes. | 3 | | (a) The Authority shall have the continuing power to borrow | 4 | | money and to
issue its negotiable bonds or notes as provided in | 5 | | this Section. Unless
otherwise indicated in this Section, the | 6 | | term "notes" also includes bond
anticipation notes, which are | 7 | | notes which by their terms provide for
their payment from the | 8 | | proceeds of bonds thereafter to be issued. Bonds
or notes of | 9 | | the Authority may be issued for any or all of the following
| 10 | | purposes: to pay costs to the Authority or a Service Board of | 11 | | constructing
or acquiring any public transportation facilities | 12 | | (including funds and
rights relating thereto, as provided in | 13 | | Section 2.05 of this Act); to repay
advances to the Authority | 14 | | or a Service Board made for such purposes; to pay
other | 15 | | expenses of the Authority or a Service Board incident to or | 16 | | incurred
in connection with such construction or acquisition; | 17 | | to provide funds for
any transportation agency to pay principal
| 18 | | of or interest or redemption premium on any bonds or notes, | 19 | | whether
as such amounts become due or by earlier redemption, | 20 | | issued prior to the
date of this amendatory Act by such | 21 | | transportation agency to construct or
acquire public | 22 | | transportation facilities or to provide funds to purchase
such | 23 | | bonds or notes; and to provide funds for any transportation | 24 | | agency to
construct or acquire any public transportation | 25 | | facilities, to repay
advances made for such purposes, and to |
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| 1 | | pay other expenses incident to
or incurred in connection with | 2 | | such construction or acquisition; and to
provide funds for | 3 | | payment of obligations, including the funding of reserves,
| 4 | | under any self-insurance plan or joint self-insurance pool or | 5 | | entity. | 6 | | In addition to any other borrowing as may be authorized by | 7 | | this Section,
the Authority may issue its notes, from time to | 8 | | time, in anticipation of
tax receipts of the Authority or of | 9 | | other
revenues or receipts of the Authority, in order to | 10 | | provide money for the
Authority or the Service Boards to cover | 11 | | any cash flow deficit which
the Authority or a Service Board | 12 | | anticipates incurring. Any such notes
are referred to in this | 13 | | Section as "Working Cash Notes". No Working
Cash Notes shall be | 14 | | issued for a term of longer than 24
months.
Proceeds of Working | 15 | | Cash Notes may be used to pay day to day operating
expenses of | 16 | | the Authority or the Service Boards, consisting of wages,
| 17 | | salaries and fringe benefits, professional and technical | 18 | | services
(including legal, audit, engineering and other | 19 | | consulting services), office
rental, furniture, fixtures and | 20 | | equipment, insurance premiums, claims for
self-insured amounts | 21 | | under insurance policies, public utility
obligations for | 22 | | telephone, light, heat and similar items, travel expenses,
| 23 | | office supplies, postage, dues, subscriptions, public hearings | 24 | | and information
expenses, fuel purchases, and payments of | 25 | | grants and payments under purchase
of service agreements for | 26 | | operations of transportation agencies, prior to
the receipt by |
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| 1 | | the Authority or a Service Board from time to time of
funds for | 2 | | paying such expenses. In addition to any Working Cash Notes
| 3 | | that the Board of the Authority may determine to issue, the | 4 | | Suburban Bus
Board, the Commuter Rail Board or the Board of the | 5 | | Chicago Transit Authority
may demand and direct that the | 6 | | Authority issue its Working Cash Notes in
such amounts and | 7 | | having such maturities as the Service Board may determine. | 8 | | Notwithstanding any other provision of this Act, any | 9 | | amounts necessary to
pay principal of and interest on any
| 10 | | Working Cash Notes issued at the demand
and direction of a | 11 | | Service Board or any Working Cash Notes the proceeds of
which | 12 | | were used for the direct benefit of a Service Board or any | 13 | | other
Bonds or Notes of the Authority the proceeds of which | 14 | | were used for the
direct benefit of a Service Board shall | 15 | | constitute a reduction of the amount
of any other funds | 16 | | provided by the Authority to that Service
Board. The Authority | 17 | | shall, after deducting any costs of issuance, tender
the net | 18 | | proceeds of any Working Cash Notes issued at the demand and
| 19 | | direction of a Service Board to such Service Board as soon as | 20 | | may be
practicable after the proceeds are received. The | 21 | | Authority may also issue
notes or bonds to pay, refund or | 22 | | redeem any of its notes and bonds,
including to pay redemption | 23 | | premiums or accrued interest on such bonds or
notes being | 24 | | renewed, paid or refunded, and other costs in connection
| 25 | | therewith. The Authority may also utilize the proceeds of any | 26 | | such bonds or
notes to pay the legal, financial, administrative |
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| 1 | | and other expenses of
such authorization, issuance, sale or | 2 | | delivery of bonds or notes or to
provide or increase a debt | 3 | | service reserve fund with respect to any or all
of its bonds or | 4 | | notes. The Authority may also issue and deliver
its bonds or | 5 | | notes in exchange for any public transportation facilities,
| 6 | | (including funds and rights relating thereto, as provided in | 7 | | Section
2.05 of this Act) or in exchange for outstanding bonds | 8 | | or notes of the
Authority, including any accrued interest or | 9 | | redemption premium thereon,
without advertising or submitting | 10 | | such notes or bonds for public bidding. | 11 | | (b) The ordinance providing for the issuance of any such | 12 | | bonds or
notes shall fix the date or dates of maturity, the | 13 | | dates on which
interest is payable, any sinking fund account or | 14 | | reserve fund account
provisions and all other details of such | 15 | | bonds or notes and may provide
for such covenants or agreements | 16 | | necessary or desirable with regard to
the issue, sale and | 17 | | security of such bonds or notes. The rate or rates of
interest | 18 | | on its bonds or notes may be fixed or variable and the | 19 | | Authority
shall determine or provide for the determination of | 20 | | the rate or
rates of interest of its bonds or notes
issued | 21 | | under this Act in an ordinance adopted by the Authority prior | 22 | | to
the issuance thereof, none of which rates of interest shall | 23 | | exceed
that permitted in the Bond Authorization Act. Interest | 24 | | may be payable at such times as are provided for
by the Board. | 25 | | Bonds and notes issued under this Section may
be issued as | 26 | | serial or term obligations, shall be of such denomination
or |
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| 1 | | denominations and form, including interest coupons to be | 2 | | attached
thereto, be executed in such manner, shall be payable | 3 | | at such place or
places and bear such date as the Authority | 4 | | shall fix by the ordinance
authorizing such bond or note and | 5 | | shall mature at such time or times,
within a period not to | 6 | | exceed forty years from the date of issue, and
may be | 7 | | redeemable prior to maturity with or without premium, at the
| 8 | | option of the Authority, upon such terms and conditions as the | 9 | | Authority
shall fix by the ordinance authorizing the issuance | 10 | | of such bonds or
notes. No bond anticipation note or any | 11 | | renewal thereof shall mature at
any time or times exceeding 5 | 12 | | years from the date of the first issuance
of such note. The | 13 | | Authority may provide for the registration of bonds or
notes in | 14 | | the name of the owner as to the principal alone or as to both
| 15 | | principal and interest, upon such terms and conditions as the | 16 | | Authority
may determine. The ordinance authorizing bonds or | 17 | | notes may provide for
the exchange of such bonds or notes which | 18 | | are fully registered, as to
both principal and interest, with | 19 | | bonds or notes which are registerable
as to principal only. All | 20 | | bonds or notes issued under this Section by
the Authority other | 21 | | than those issued in exchange for property or for
bonds or | 22 | | notes of the Authority shall be sold at a price which may be at
| 23 | | a premium or discount but such that the interest cost | 24 | | (excluding any
redemption premium) to the Authority of the | 25 | | proceeds of an issue of such
bonds or notes, computed to stated | 26 | | maturity according to standard tables
of bond values, shall not |
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| 1 | | exceed that permitted in the Bond Authorization
Act. The | 2 | | Authority shall notify
the
Governor's Office of Management and | 3 | | Budget and the State Comptroller at least 30 days
before any | 4 | | bond sale and shall file with the
Governor's Office of | 5 | | Management and Budget and the
State Comptroller a certified | 6 | | copy of any ordinance authorizing the issuance
of bonds at or | 7 | | before the issuance of the bonds.
After December 31, 1994, any | 8 | | such bonds or notes shall be sold
to the highest and best | 9 | | bidder on sealed bids as the Authority shall deem.
As such | 10 | | bonds or notes are to be sold the Authority shall advertise for
| 11 | | proposals to purchase the bonds or notes which advertisement | 12 | | shall be published
at least once in a daily newspaper of | 13 | | general circulation published in the
metropolitan region at | 14 | | least 10 days before the time set for the submission
of bids. | 15 | | The Authority shall have the right to reject any or all bids.
| 16 | | Notwithstanding any other provisions of this Section, Working | 17 | | Cash Notes or
bonds or notes to provide funds for | 18 | | self-insurance or a joint self-insurance
pool or entity may be | 19 | | sold either upon competitive bidding or by negotiated
sale
| 20 | | (without any requirement of publication of intention to | 21 | | negotiate the sale
of such Notes), as the Board shall determine | 22 | | by ordinance adopted with the
affirmative votes of at least 9
| 23 | | Directors. In case any officer whose signature
appears on any | 24 | | bonds, notes or coupons authorized pursuant to this
Section | 25 | | shall cease to be such officer before delivery of such bonds or
| 26 | | notes, such signature shall nevertheless be valid and |
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| 1 | | sufficient for all
purposes, the same as if such officer had | 2 | | remained in office until such
delivery. Neither the Directors | 3 | | of the Authority nor any person
executing any bonds or notes | 4 | | thereof shall be liable personally on any
such bonds or notes | 5 | | or coupons by reason of the issuance thereof. | 6 | | (c) All bonds or notes of the Authority issued pursuant to | 7 | | this Section
shall be general obligations
of the Authority to | 8 | | which shall be pledged the full faith and credit of the
| 9 | | Authority, as provided in this Section. Such bonds or notes
| 10 | | shall be secured
as provided in the authorizing ordinance, | 11 | | which may, notwithstanding any other
provision of this Act, | 12 | | include in addition to any other security, a specific
pledge or | 13 | | assignment of and lien on or security interest in any or all | 14 | | tax
receipts of the Authority and on any or all other revenues | 15 | | or moneys of the
Authority from whatever source, which may by | 16 | | law be utilized for debt
service purposes and a specific pledge | 17 | | or assignment of and lien on or security
interest in any funds | 18 | | or accounts established or provided for by the ordinance
of the | 19 | | Authority authorizing the issuance of such bonds or notes. Any | 20 | | such
pledge, assignment, lien or security interest for the | 21 | | benefit of holders of
bonds or notes of the Authority shall be | 22 | | valid and binding from the time the
bonds or notes are issued | 23 | | without any physical delivery or further act
and shall be valid | 24 | | and binding as against and prior to the claims of all
other | 25 | | parties having claims of any kind against the Authority or any | 26 | | other
person irrespective of whether such other parties have |
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| 1 | | notice of such pledge,
assignment, lien or security interest. | 2 | | The obligations of the Authority
incurred pursuant to this | 3 | | Section shall be superior to and have priority over
any other | 4 | | obligations of the Authority. | 5 | | The Authority may provide in the
ordinance authorizing the | 6 | | issuance of any bonds or notes issued pursuant to
this Section | 7 | | for the creation of, deposits in, and regulation and | 8 | | disposition
of sinking fund or reserve accounts relating to | 9 | | such bonds or notes. The
ordinance authorizing the issuance of | 10 | | any bonds or notes pursuant to this
Section may contain | 11 | | provisions as part of the contract with the holders
of the | 12 | | bonds or notes, for the creation of a separate fund to provide
| 13 | | for the payment of principal and interest on such bonds or | 14 | | notes
and for the deposit in such fund from any or all the tax | 15 | | receipts of the
Authority and from any or all such other moneys | 16 | | or revenues of the
Authority from whatever source which may by | 17 | | law be utilized for debt
service purposes, all as provided in | 18 | | such ordinance, of amounts to meet
the debt service | 19 | | requirements on such bonds or notes, including
principal and | 20 | | interest, and any sinking fund or reserve fund account
| 21 | | requirements as may be provided by such ordinance, and all | 22 | | expenses
incident to or in connection with such fund and | 23 | | accounts or the payment
of such bonds or notes.
Such ordinance | 24 | | may also provide limitations on the issuance of additional
| 25 | | bonds or notes of the Authority. No such bonds or notes of the | 26 | | Authority
shall constitute a debt of the State of Illinois. |
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| 1 | | Nothing in this Act shall
be construed to enable the Authority | 2 | | to impose any ad valorem tax on property. | 3 | | (d) The ordinance of the Authority authorizing the issuance | 4 | | of any bonds
or notes may provide additional security for such | 5 | | bonds or notes by providing
for appointment of a corporate | 6 | | trustee (which may be any trust company or
bank having the | 7 | | powers of a trust company within the state) with respect
to | 8 | | such bonds or notes. The ordinance shall prescribe the rights, | 9 | | duties
and powers of the trustee to be exercised for the | 10 | | benefit of the Authority
and the protection of the holders of | 11 | | such bonds or notes. The ordinance
may provide for the trustee | 12 | | to hold in trust, invest and use amounts in
funds and accounts | 13 | | created as provided by the ordinance with respect to
the bonds | 14 | | or notes. The ordinance may provide for the assignment and | 15 | | direct
payment to the trustee of any or all amounts produced | 16 | | from the sources
provided in Section 4.03 and Section 4.09 of | 17 | | this Act and provided in Section 6z-17 of "An Act
in relation | 18 | | to State finance", approved June 10, 1919, as amended.
Upon | 19 | | receipt of notice of any such assignment, the Department of | 20 | | Revenue and
the Comptroller of the State of Illinois shall | 21 | | thereafter, notwithstanding the
provisions of Section 4.03 and | 22 | | Section 4.09 of this Act and Section 6z-17 of "An Act in | 23 | | relation
to State finance", approved June 10, 1919, as amended, | 24 | | provide for such
assigned amounts to be paid directly to the | 25 | | trustee instead of the Authority,
all in accordance with the | 26 | | terms of the ordinance making the assignment. The
ordinance |
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| 1 | | shall provide that
amounts so paid to the trustee which are not | 2 | | required to be deposited, held
or invested in funds and | 3 | | accounts created by the ordinance with respect
to bonds or | 4 | | notes or used for paying bonds or notes to be paid by the | 5 | | trustee
to the Authority. | 6 | | (e) Any bonds or notes of the Authority issued pursuant to | 7 | | this
Section shall constitute a contract between the Authority | 8 | | and the
holders from time to time of such bonds or notes. In | 9 | | issuing any bond or
note, the Authority may include in the | 10 | | ordinance authorizing such issue
a covenant as part of the | 11 | | contract with the holders of the bonds or
notes, that as long | 12 | | as such obligations are outstanding, it shall make
such | 13 | | deposits, as provided in paragraph (c) of this Section. It may | 14 | | also
so covenant that it shall impose and continue to impose | 15 | | taxes, as
provided in Section 4.03 of this Act and in addition | 16 | | thereto as
subsequently authorized by law, sufficient to make | 17 | | such deposits and pay
the principal and interest and to meet | 18 | | other debt service requirements
of such bonds or notes as they | 19 | | become due. A certified copy of the
ordinance authorizing the | 20 | | issuance of any such obligations shall be
filed at or prior to | 21 | | the issuance of such obligations with the Comptroller
of the | 22 | | State of Illinois and the Illinois Department of Revenue. | 23 | | (f) The State of Illinois pledges to and agrees with the | 24 | | holders of
the bonds and notes of the Authority issued pursuant | 25 | | to this Section
that the State will not limit or alter the | 26 | | rights and powers vested in
the Authority by this Act so as to |
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| 1 | | impair the terms of any contract made
by the Authority with | 2 | | such holders or in any way impair the rights and
remedies of | 3 | | such holders until such bonds and notes, together with
interest | 4 | | thereon, with interest on any unpaid installments of interest,
| 5 | | and all costs and expenses in connection with any action or | 6 | | proceedings
by or on behalf of such holders, are fully met and | 7 | | discharged. In
addition, the State pledges to and agrees with | 8 | | the holders of the bonds
and notes of the Authority issued | 9 | | pursuant to this Section that the
State will not limit or alter | 10 | | the basis on which State funds are to be
paid to the Authority | 11 | | as provided in this Act, or the use of such funds,
so as to | 12 | | impair the terms of any such contract. The Authority is
| 13 | | authorized to include these pledges and agreements of the State | 14 | | in any
contract with the holders of bonds or notes issued | 15 | | pursuant to this
Section. | 16 | | (g)(1) Except as provided in subdivisions (g)(2) and (g)(3) | 17 | | of Section
4.04 of this Act, the Authority shall not at any | 18 | | time issue, sell or deliver
any bonds or notes (other than | 19 | | Working Cash Notes and lines of credit ) pursuant to this | 20 | | Section
4.04 which will cause
it to have issued and outstanding | 21 | | at any time in excess of $800,000,000 of such
bonds and notes | 22 | | (other than Working Cash Notes and lines of credit ).
The | 23 | | Authority shall not issue, sell, or deliver any Working Cash | 24 | | Notes or establish a line of credit pursuant to this Section | 25 | | that will cause it to have issued and outstanding at any time | 26 | | in excess of $100,000,000. However, the Authority may issue, |
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| 1 | | sell, and deliver additional Working Cash Notes or establish a | 2 | | line of credit before July 1, 2022 2018 that are over and above | 3 | | and in addition to the $100,000,000 authorization such that the | 4 | | outstanding amount of these additional Working Cash Notes and | 5 | | lines of credit do does not exceed at any time $300,000,000.
| 6 | | Bonds or notes which are being paid or retired by
such | 7 | | issuance, sale or delivery of bonds or notes, and bonds or | 8 | | notes for
which sufficient funds have been deposited with the | 9 | | paying agency of
such bonds or notes to provide for payment of | 10 | | principal and interest
thereon or to provide for the redemption | 11 | | thereof, all pursuant to the
ordinance authorizing the issuance | 12 | | of such bonds or notes, shall not be
considered to be | 13 | | outstanding for the purposes of this subsection. | 14 | | (2) In addition to the authority provided by paragraphs
(1) | 15 | | and (3), the Authority is authorized to issue, sell and deliver | 16 | | bonds
or notes for Strategic Capital Improvement Projects | 17 | | approved pursuant to
Section 4.13 as follows: | 18 | | $100,000,000 is authorized to be issued on or after | 19 | | January 1, 1990; | 20 | | an additional $100,000,000 is authorized to be issued | 21 | | on or after
January 1, 1991; | 22 | | an additional $100,000,000 is authorized to be issued | 23 | | on or after
January 1, 1992; | 24 | | an additional $100,000,000 is authorized to be issued | 25 | | on or after
January 1, 1993; | 26 | | an additional $100,000,000 is authorized to be issued |
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| 1 | | on or after
January 1, 1994; and | 2 | | the aggregate total authorization of bonds and notes | 3 | | for Strategic
Capital Improvement Projects as of January 1, | 4 | | 1994, shall be $500,000,000. | 5 | | The Authority is also authorized to issue, sell, and | 6 | | deliver bonds or
notes in such amounts as are necessary to | 7 | | provide for the refunding or advance
refunding of bonds or | 8 | | notes issued for Strategic Capital Improvement Projects
under | 9 | | this subdivision (g)(2), provided that no such refunding bond | 10 | | or note
shall mature later than the final maturity date of the | 11 | | series of bonds or notes
being refunded, and provided further | 12 | | that the debt service requirements for
such refunding bonds or | 13 | | notes in the current or any future fiscal year shall
not exceed | 14 | | the debt service requirements for that year on the refunded | 15 | | bonds
or notes. | 16 | | (3) In addition to the authority provided by paragraphs (1) | 17 | | and (2),
the Authority is authorized to issue, sell, and | 18 | | deliver bonds or notes for
Strategic Capital Improvement | 19 | | Projects approved pursuant to Section 4.13 as
follows: | 20 | | $260,000,000 is authorized to be issued on or after | 21 | | January 1, 2000; | 22 | | an additional $260,000,000 is authorized to be issued | 23 | | on or after
January 1, 2001; | 24 | | an additional $260,000,000 is authorized to be issued | 25 | | on or after
January 1, 2002; | 26 | | an additional $260,000,000 is authorized to be issued |
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| 1 | | on or after
January 1, 2003; | 2 | | an additional $260,000,000 is authorized to be issued | 3 | | on or after
January 1, 2004; and | 4 | | the aggregate total authorization of bonds and notes | 5 | | for Strategic
Capital Improvement Projects pursuant to | 6 | | this paragraph (3) as of
January 1, 2004 shall be | 7 | | $1,300,000,000. | 8 | | The Authority is also authorized to issue, sell, and | 9 | | deliver bonds or notes
in such amounts as are necessary to | 10 | | provide for the refunding or advance
refunding of bonds or | 11 | | notes issued for Strategic Capital Improvement projects
under | 12 | | this subdivision (g)(3), provided that no such refunding bond | 13 | | or note
shall mature later than the final maturity date of the | 14 | | series of bonds or notes
being refunded, and provided further | 15 | | that the debt service requirements for
such refunding bonds or | 16 | | notes in the current or any future fiscal year shall
not exceed | 17 | | the debt service requirements for that year on the refunded | 18 | | bonds or
notes. | 19 | | (h) The Authority, subject to the terms of any agreements | 20 | | with noteholders
or bond holders as may then exist, shall have | 21 | | power, out of any funds
available therefor, to purchase notes | 22 | | or bonds of the Authority, which
shall thereupon be cancelled. | 23 | | (i) In addition to any other authority granted by law, the | 24 | | State Treasurer
may, with the approval of the Governor, invest | 25 | | or reinvest, at a price not
to exceed par, any State money in | 26 | | the State Treasury which is not needed
for current expenditures |
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| 1 | | due or about to become due in Working Cash Notes. In the event | 2 | | of a default on a Working Cash Note issued by the Regional | 3 | | Transportation Authority in which State money in the State | 4 | | treasury was invested, the Treasurer may, after giving notice | 5 | | to the Authority, certify to the Comptroller the amounts of the | 6 | | defaulted Working Cash Note, in accordance with any applicable | 7 | | rules of the Comptroller, and the Comptroller must deduct and | 8 | | remit to the State treasury the certified amounts or a portion | 9 | | of those amounts from the following proportions of payments of | 10 | | State funds to the Authority: | 11 | | (1) in the first year after default, one-third of the | 12 | | total amount of any payments of State funds to the | 13 | | Authority; | 14 | | (2) in the second year after default, two-thirds of the | 15 | | total amount of any payments of State funds to the | 16 | | Authority; and | 17 | | (3) in the third year after default and for each year | 18 | | thereafter until the total invested amount is repaid, the | 19 | | total amount of any payments of State funds to the | 20 | | Authority. | 21 | | (j) The Authority may establish a line of credit with a | 22 | | bank or other financial institution as may be evidenced by the | 23 | | issuance of notes or other obligations, secured by and payable | 24 | | from all tax receipts of the Authority and any or all other | 25 | | revenues or moneys of the Authority, in an amount not to exceed | 26 | | the limitations set forth in paragraph (1) of subsection (g). |
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| 1 | | Money borrowed under this subsection (j) shall be used to | 2 | | provide money for the Authority or the Service Boards to cover | 3 | | any cash flow deficit that the Authority or a Service Board | 4 | | anticipates incurring and shall be repaid within 24 months. | 5 | | Before establishing a line of credit under this subsection | 6 | | (j), the Authority shall authorize the line of credit by | 7 | | ordinance. The ordinance shall set forth facts demonstrating | 8 | | the need for the line of credit, state the amount to be | 9 | | borrowed, establish a maximum interest rate limit not to exceed | 10 | | the maximum rate authorized by the Bond Authorization Act, and | 11 | | provide a date by which the borrowed funds shall be repaid. The | 12 | | ordinance shall authorize and direct the relevant officials to | 13 | | make arrangements to set apart and hold, as applicable, the | 14 | | moneys that will be used to repay the borrowing. In addition, | 15 | | the ordinance may authorize the relevant officials to make | 16 | | partial repayments on the line of credit as the moneys become | 17 | | available and may contain any other terms, restrictions, or | 18 | | limitations desirable or necessary to give effect to this | 19 | | subsection (j). | 20 | | The Authority shall notify the Governor's Office of | 21 | | Management and Budget and the State Comptroller at least 30 | 22 | | days before establishing a line of credit and shall file with | 23 | | the Governor's Office of Management and Budget and the State | 24 | | Comptroller a certified copy of any ordinance authorizing the | 25 | | establishment of a line of credit upon or before establishing | 26 | | the line of credit. |
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| 1 | | Moneys borrowed under a line of credit pursuant to this | 2 | | subsection (j) are general obligations of the Authority that | 3 | | are secured by the full faith and credit of the Authority. | 4 | | (Source: P.A. 98-392, eff. 8-16-13; 99-238, eff. 8-3-15.)
| 5 | | Section 99. Effective date. This Act takes effect upon | 6 | | becoming law.
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