70 ILCS 3615/4.04

    (70 ILCS 3615/4.04) (from Ch. 111 2/3, par. 704.04)
    Sec. 4.04. Issuance and Pledge of Bonds and Notes.

(a) The Authority shall have the continuing power to borrow money and to
issue its negotiable bonds or notes as provided in this Section.  Unless
otherwise indicated in this Section, the term "notes" also includes bond
anticipation notes, which are notes which by their terms provide for
their payment from the proceeds of bonds thereafter to be issued.  Bonds
or notes of the Authority may be issued for any or all of the following
purposes: to pay costs to the Authority or a Service Board of constructing
or acquiring any public transportation facilities (including funds and
rights relating thereto, as provided in Section 2.05 of this Act); to repay
advances to the Authority or a Service Board made for such purposes; to pay
other expenses of the Authority or a Service Board incident to or incurred
in connection with such construction or acquisition; to provide funds for
any transportation agency to pay principal
of or interest or redemption premium on any bonds or notes, whether
as such amounts become due or by earlier redemption, issued prior to the
date of this amendatory Act by such transportation agency to construct or
acquire public transportation facilities or to provide funds to purchase
such bonds or notes; and to provide funds for any transportation agency to
construct or acquire any public transportation facilities, to repay
advances made for such purposes, and to pay other expenses incident to
or incurred in connection with such construction or acquisition; and to
provide funds for payment of obligations, including the funding of reserves,
under any self-insurance plan or joint self-insurance pool or entity.

In addition to any other borrowing as may be authorized by this Section,
the Authority may issue its notes, from time to time, in anticipation of
tax receipts of the Authority or of other
revenues or receipts of the Authority, in order to provide money for the
Authority or the Service Boards to cover any cash flow deficit which
the Authority or a Service Board anticipates incurring.  Any such notes
are referred to in this Section as "Working Cash Notes".  No Working
Cash Notes shall be issued for a term of longer than 24
 months.
Proceeds of Working Cash Notes may be used to pay day to day operating
expenses of the Authority or the Service Boards, 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 or a Service Board from time to time of
funds for paying such expenses.  In addition to any Working Cash Notes
that the Board of the Authority may determine to issue, the Suburban Bus
Board, the Commuter Rail Board or the Board of the Chicago Transit Authority
may demand and direct that the Authority issue its Working Cash Notes in
such amounts and having such maturities as the Service Board may determine.

Notwithstanding any other provision of this Act, any amounts necessary to
pay principal of and interest on any
Working Cash Notes issued at the demand
and direction of a Service Board or any Working Cash Notes the proceeds of
which were used for the direct benefit of a Service Board or any other
Bonds or Notes of the Authority the proceeds of which were used for the
direct benefit of a Service Board shall constitute a reduction of the amount
of any other funds provided by the Authority to that Service
Board.  The Authority shall, after deducting any costs of issuance, tender
the net proceeds of any Working Cash Notes issued at the demand and
direction of a Service Board to such Service Board as soon as may be
practicable after the proceeds are received.  The Authority may also issue
notes or bonds to pay, refund or redeem any of its notes and bonds,
including to pay redemption premiums or accrued interest on such bonds or
notes being renewed, paid or refunded, and other costs in connection
therewith.  The Authority may also utilize the proceeds of any such bonds or
notes to pay the legal, financial, administrative and other expenses of
such authorization, issuance, sale or delivery of bonds or notes or to
provide or increase a debt service reserve fund with respect to any or all
of its bonds or notes. The Authority may also issue and deliver
its bonds or notes in exchange for any public transportation facilities,
(including funds and rights relating thereto, as provided in Section
2.05 of this Act) or in exchange for outstanding bonds or notes of the
Authority, including any accrued interest or redemption premium thereon,
without advertising or submitting such notes or bonds for public bidding.

(b) The ordinance providing for the issuance of any such bonds or
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 bonds or notes and may provide
for such covenants or agreements necessary or desirable with regard to
the issue, sale and security of such bonds or notes.  The rate or rates of
interest on its bonds or notes may be fixed or variable and the Authority
shall determine or provide for the determination of the rate or
rates of interest of its bonds or notes
issued under this Act in an ordinance adopted by the Authority prior to
the issuance thereof, none of which rates of interest shall exceed
that permitted in the Bond Authorization Act.  Interest may be payable at such times as are  provided for
by the Board.  Bonds and 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 Authority shall fix by the ordinance
authorizing such bond or note and shall mature at such time or times,
within a period not to exceed forty years from the date of issue, and
may be redeemable prior to maturity with or without premium, at the
option of the Authority, upon such terms and conditions as the Authority
shall fix by the ordinance authorizing the issuance of such bonds or
notes.  No bond anticipation note or any renewal thereof shall mature at
any time or times exceeding 5 years from the date of the first issuance
of such note.  The Authority may provide for the registration of bonds or
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 Authority
may determine.  The ordinance authorizing bonds or notes may provide for
the exchange of such bonds or notes which are fully registered, as to
both principal and interest, with bonds or notes which are registerable
as to principal only.  All bonds or notes issued under this Section by
the Authority other than those issued in exchange for property or for
bonds or notes of the Authority 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 Authority of the proceeds of an issue of such
bonds or notes, computed to stated maturity according to standard tables
of bond values, shall not exceed that permitted in the Bond Authorization
Act.  The Authority shall notify
the
Governor's Office of Management and Budget and the State Comptroller at least 30 days
before any bond sale and shall file with the
Governor's Office of Management and Budget and the
State Comptroller a certified copy of any ordinance authorizing the issuance
of bonds at or before the issuance of the bonds.
After December 31, 1994, any such bonds or notes shall be sold
to the highest and best bidder on sealed bids as the Authority shall deem.
As such bonds or notes are to be sold the Authority shall advertise for
proposals to purchase the bonds or notes which advertisement shall be published
at least once in a daily newspaper of general circulation published in the
metropolitan region at least 10 days before the time set for the submission
of bids.  The Authority shall have the right to reject any or all bids.
Notwithstanding any other provisions of this Section, Working Cash Notes or
bonds or notes to provide funds for self-insurance or a joint self-insurance
pool or entity 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 9
 Directors.  In case any officer whose signature
appears on any bonds, notes or coupons authorized pursuant to this
Section shall cease to be such officer before delivery of such bonds or
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 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 bonds or 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 bonds or 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 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 Authority authorizing the issuance of such bonds or notes.  Any such
pledge, assignment, lien, or security interest for the benefit of holders of
bonds or notes of the Authority shall be valid and binding from the time the
bonds or 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.

The Authority may provide in the
ordinance authorizing the issuance of any bonds or 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 bonds or notes.  The
ordinance authorizing the issuance of any bonds or notes pursuant to this
Section may contain provisions as part of the contract with the holders
of the bonds or notes, for the creation of a separate fund to provide
for the payment of principal and interest on such bonds or notes
and for the deposit in such fund from any or all the tax receipts of 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 bonds or 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 bonds or notes.
Such ordinance may also provide limitations on the issuance of additional
bonds or notes of the Authority.  No such bonds or notes of the Authority
shall constitute a debt of the State of Illinois.  Nothing in this Act shall
be construed to enable the Authority to impose any ad valorem tax on property.

(d) The ordinance of the Authority authorizing the issuance of any bonds
or notes may provide additional security for such bonds or 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 bonds or 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 bonds or 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 bonds or notes.  The ordinance may provide for the assignment and direct
payment to the trustee of any or all amounts produced from the sources
provided in Section 4.03 and Section 4.09 of this Act and provided in Section 6z-17 of the State Finance Act.
Upon receipt of notice of any such assignment, the Department of Revenue and
the Comptroller of the State of Illinois shall thereafter, notwithstanding the
provisions of Section 4.03 and Section 4.09 of this Act and Section 6z-17 of the State Finance Act, provide for such
assigned amounts to be paid directly to the trustee instead of the Authority,
all in accordance with the terms of the ordinance making the assignment.  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 bonds or notes or used for paying bonds or notes to be paid by the trustee
to the Authority.

(e) Any bonds or 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 bonds or notes. In issuing any bond or
note, the Authority may include in the ordinance authorizing such issue
a covenant as part of the contract with the holders of the bonds or
notes, that as long as such obligations are outstanding, it shall make
such deposits, as provided in paragraph (c) of this Section. It may also
so covenant that it shall impose and continue to impose taxes, as
provided in Section 4.03 of this Act and in addition thereto as
subsequently authorized by law, sufficient to make such deposits and pay
the principal and interest and to meet other debt service requirements
of such bonds or notes as they become due. 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 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 bonds and 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 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 bonds and 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 bonds
and 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 this Act, or the use of such funds,
so as to impair the terms of any such contract. The Authority 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)(1) Except as provided in subdivisions (g)(2) and (g)(3) of Section
4.04 of this Act, the Authority shall not at any time issue, sell or deliver
any bonds or notes (other than Working Cash Notes and lines of credit) pursuant to this Section
4.04 which will cause
it to have issued and outstanding at any time in excess of $800,000,000 of such
bonds and notes (other than Working Cash Notes and lines of credit).
The Authority shall not issue, sell, or deliver any Working Cash Notes or establish a line of credit pursuant to this Section that will cause it to have issued and outstanding at any time in excess of  $100,000,000.  However, the Authority may issue, sell, and deliver additional Working Cash Notes or establish a line of credit before July 1, 2022 that are over and above and in addition to the $100,000,000 authorization such that the outstanding amount of these additional Working Cash Notes and lines of credit does not exceed at any time $300,000,000.

Bonds or notes which are being paid or retired by
such issuance, sale or delivery of bonds or notes, and bonds or notes for
which sufficient funds have been deposited with the paying agency of
such bonds or 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 bonds or notes, shall not be
considered to be outstanding for the purposes of this subsection.

(2) In addition to the authority provided by paragraphs
(1) and (3), the Authority is authorized to issue, sell, and deliver bonds
or notes for Strategic Capital Improvement Projects approved pursuant to
Section 4.13 as follows:

$100,000,000 is authorized to be issued on or after