(70 ILCS 3605/12) (from Ch. 111 2/3, par. 312)
Sec. 12.
The Authority shall have the continuing power to borrow
money for the purpose of acquiring any transportation system (including
any cash funds of such system reserved to replace worn out or obsolete
equipment and facilities), and for acquiring necessary cash working
funds, or for acquiring constructing, reconstructing, extending or
improving its transportation system or any part thereof, and for
acquiring any property and equipment useful for the construction,
reconstruction, extension, improvement or operation of its
transportation system or any part thereof. For the purpose of evidencing
the obligation of the Authority to repay any money borrowed as aforesaid
the Authority may pursuant to ordinance adopted by the Board from time
to time issue and dispose of its interest bearing revenue bonds or
certificates and may also from time to time issue and dispose of its
interest bearing revenue bonds or certificates to refund any bonds or
certificates at maturity or pursuant to redemption provisions or at any
time before maturity with the consent of the holders thereof. All such
bonds and certificates shall be payable solely from the revenues or
income or any other funds which the Authority may receive, may bear such date
or dates, may mature at such time or times not exceeding forty years
from their respective dates, may bear interest at such rate or rates,
not exceeding 9 per cent per annum or 70% of the prime commercial
rate in effect at the time the contract is made, whichever is greater,
payable semi-annually, may be in
such form, may carry such registration privileges, may be executed in
such manner, may be payable at such place or places, may be made subject
to redemption in such manner and upon such terms, with or without
premium as is stated on the face thereof, may be authenticated in such
manner and may contain such terms and covenants, all as may be provided
in such ordinance. Notwithstanding the form or tenor thereof and in the
absence of an express recital on the face thereof that it is
non-negotiable all such bonds and certificates shall be negotiable
instruments. Pending the preparation and execution of any such bonds or
certificates temporary bonds or certificates may be issued with or
without interest coupons as may be provided by ordinance. To secure the
payment of any or all of such bonds or certificates and for the purpose
of setting forth the covenants and undertakings of the authority in
connection with the issuance thereof and the issuance of any additional
bonds or certificates payable from such revenue or income as well as the
use and application of the revenue or income to be derived from the
transportation system the Authority may execute and deliver a trust
agreement or agreements; provided that no lien upon any physical
property of the Authority shall be created thereby. A remedy for any
breach or default of the terms of any such trust agreement by the
Authority may be by mandamus proceedings in any court of competent
jurisdiction to compel performance and compliance therewith, but the
trust agreement may prescribe by whom or on whose behalf such action may
be instituted. Under no circumstances shall any bonds or certificates
issued by the Authority or any other obligation of the Authority be or
become an indebtedness or obligation of the State of Illinois or of any
other political subdivision of or municipality within the State, nor
shall any such bond, certificate, or obligation be or become an
indebtedness of the Authority within the purview of any constitutional
limitation or provision, and it shall be plainly stated on the face of
each bond and certificate that it does not constitute such an
indebtedness or obligation but is payable solely from the revenues or
income as aforesaid.
Before any such bonds or certificates (excepting refunding bonds or
certificates) are sold the entire authorized issue, or any part thereof,
shall be offered for sale as a unit after advertising for bids at least
three times in a daily newspaper of general circulation published in the
metropolitan area, the last publication to be at least ten days before
bids are required to be filed. Copies of such advertisement may be
published in any newspaper or financial publication in the United
States. All bids shall be sealed, filed and opened as provided by
ordinance and the bonds or certificates shall be awarded to the highest
and best bidder or bidders therefor. The Authority shall have the right
to reject all bids and readvertise for bids in the manner provided for
the initial advertisement. However, if no bids are received such bonds
or certificates may be sold at not less than par value, without further
advertising, within sixty (60) days after the bids are required to be
filed pursuant to any advertisement.
Prime commercial rate means such prime rate as from time to time is publicly
announced by the largest commercial banking institution located in this State,
measured in terms of total assets.
(Source: P.A. 81-1504.)
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