Bill Amendment: IL HB3004 | 2017-2018 | 100th General Assembly
NOTE: For additional amemendments please see the Bill Drafting List
Bill Title: RTA-ISSUANCE OF BONDS
Status: 2017-10-27 - Bill Dead - No Positive Action Taken - Amendatory Veto [HB3004 Detail]
Download: Illinois-2017-HB3004-House_Amendment_001.html
Bill Title: RTA-ISSUANCE OF BONDS
Status: 2017-10-27 - Bill Dead - No Positive Action Taken - Amendatory Veto [HB3004 Detail]
Download: Illinois-2017-HB3004-House_Amendment_001.html
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1 | AMENDMENT TO HOUSE BILL 3004
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2 | AMENDMENT NO. ______. Amend House Bill 3004 by replacing | ||||||
3 | everything after the enacting clause with the following:
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4 | "Section 5. The Regional Transportation Authority Act is | ||||||
5 | amended by changing Section 4.04 as follows:
| ||||||
6 | (70 ILCS 3615/4.04) (from Ch. 111 2/3, par. 704.04) | ||||||
7 | Sec. 4.04. Issuance and Pledge of Bonds and Notes. | ||||||
8 | (a) The Authority shall have the continuing power to borrow | ||||||
9 | money and to
issue its negotiable bonds or notes as provided in | ||||||
10 | this Section. Unless
otherwise indicated in this Section, the | ||||||
11 | term "notes" also includes bond
anticipation notes, which are | ||||||
12 | notes which by their terms provide for
their payment from the | ||||||
13 | proceeds of bonds thereafter to be issued. Bonds
or notes of | ||||||
14 | the Authority may be issued for any or all of the following
| ||||||
15 | purposes: to pay costs to the Authority or a Service Board of | ||||||
16 | constructing
or acquiring any public transportation facilities |
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| |||||||
1 | (including funds and
rights relating thereto, as provided in | ||||||
2 | Section 2.05 of this Act); to repay
advances to the Authority | ||||||
3 | or a Service Board made for such purposes; to pay
other | ||||||
4 | expenses of the Authority or a Service Board incident to or | ||||||
5 | incurred
in connection with such construction or acquisition; | ||||||
6 | to provide funds for
any transportation agency to pay principal
| ||||||
7 | of or interest or redemption premium on any bonds or notes, | ||||||
8 | whether
as such amounts become due or by earlier redemption, | ||||||
9 | issued prior to the
date of this amendatory Act by such | ||||||
10 | transportation agency to construct or
acquire public | ||||||
11 | transportation facilities or to provide funds to purchase
such | ||||||
12 | bonds or notes; and to provide funds for any transportation | ||||||
13 | agency to
construct or acquire any public transportation | ||||||
14 | facilities, to repay
advances made for such purposes, and to | ||||||
15 | pay other expenses incident to
or incurred in connection with | ||||||
16 | such construction or acquisition; and to
provide funds for | ||||||
17 | payment of obligations, including the funding of reserves,
| ||||||
18 | under any self-insurance plan or joint self-insurance pool or | ||||||
19 | entity. | ||||||
20 | In addition to any other borrowing as may be authorized by | ||||||
21 | this Section,
the Authority may issue its notes, from time to | ||||||
22 | time, in anticipation of
tax receipts of the Authority or of | ||||||
23 | other
revenues or receipts of the Authority, in order to | ||||||
24 | provide money for the
Authority or the Service Boards to cover | ||||||
25 | any cash flow deficit which
the Authority or a Service Board | ||||||
26 | anticipates incurring. Any such notes
are referred to in this |
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| |||||||
1 | Section as "Working Cash Notes". No Working
Cash Notes shall be | ||||||
2 | issued for a term of longer than 24
months.
Proceeds of Working | ||||||
3 | Cash Notes may be used to pay day to day operating
expenses of | ||||||
4 | the Authority or the Service Boards, consisting of wages,
| ||||||
5 | salaries and fringe benefits, professional and technical | ||||||
6 | services
(including legal, audit, engineering and other | ||||||
7 | consulting services), office
rental, furniture, fixtures and | ||||||
8 | equipment, insurance premiums, claims for
self-insured amounts | ||||||
9 | under insurance policies, public utility
obligations for | ||||||
10 | telephone, light, heat and similar items, travel expenses,
| ||||||
11 | office supplies, postage, dues, subscriptions, public hearings | ||||||
12 | and information
expenses, fuel purchases, and payments of | ||||||
13 | grants and payments under purchase
of service agreements for | ||||||
14 | operations of transportation agencies, prior to
the receipt by | ||||||
15 | the Authority or a Service Board from time to time of
funds for | ||||||
16 | paying such expenses. In addition to any Working Cash Notes
| ||||||
17 | that the Board of the Authority may determine to issue, the | ||||||
18 | Suburban Bus
Board, the Commuter Rail Board or the Board of the | ||||||
19 | Chicago Transit Authority
may demand and direct that the | ||||||
20 | Authority issue its Working Cash Notes in
such amounts and | ||||||
21 | having such maturities as the Service Board may determine. | ||||||
22 | Notwithstanding any other provision of this Act, any | ||||||
23 | amounts necessary to
pay principal of and interest on any
| ||||||
24 | Working Cash Notes issued at the demand
and direction of a | ||||||
25 | Service Board or any Working Cash Notes the proceeds of
which | ||||||
26 | were used for the direct benefit of a Service Board or any |
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| |||||||
1 | other
Bonds or Notes of the Authority the proceeds of which | ||||||
2 | were used for the
direct benefit of a Service Board shall | ||||||
3 | constitute a reduction of the amount
of any other funds | ||||||
4 | provided by the Authority to that Service
Board. The Authority | ||||||
5 | shall, after deducting any costs of issuance, tender
the net | ||||||
6 | proceeds of any Working Cash Notes issued at the demand and
| ||||||
7 | direction of a Service Board to such Service Board as soon as | ||||||
8 | may be
practicable after the proceeds are received. The | ||||||
9 | Authority may also issue
notes or bonds to pay, refund or | ||||||
10 | redeem any of its notes and bonds,
including to pay redemption | ||||||
11 | premiums or accrued interest on such bonds or
notes being | ||||||
12 | renewed, paid or refunded, and other costs in connection
| ||||||
13 | therewith. The Authority may also utilize the proceeds of any | ||||||
14 | such bonds or
notes to pay the legal, financial, administrative | ||||||
15 | and other expenses of
such authorization, issuance, sale or | ||||||
16 | delivery of bonds or notes or to
provide or increase a debt | ||||||
17 | service reserve fund with respect to any or all
of its bonds or | ||||||
18 | notes. The Authority may also issue and deliver
its bonds or | ||||||
19 | notes in exchange for any public transportation facilities,
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20 | (including funds and rights relating thereto, as provided in | ||||||
21 | Section
2.05 of this Act) or in exchange for outstanding bonds | ||||||
22 | or notes of the
Authority, including any accrued interest or | ||||||
23 | redemption premium thereon,
without advertising or submitting | ||||||
24 | such notes or bonds for public bidding. | ||||||
25 | (b) The ordinance providing for the issuance of any such | ||||||
26 | bonds or
notes shall fix the date or dates of maturity, the |
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1 | dates on which
interest is payable, any sinking fund account or | ||||||
2 | reserve fund account
provisions and all other details of such | ||||||
3 | bonds or notes and may provide
for such covenants or agreements | ||||||
4 | necessary or desirable with regard to
the issue, sale and | ||||||
5 | security of such bonds or notes. The rate or rates of
interest | ||||||
6 | on its bonds or notes may be fixed or variable and the | ||||||
7 | Authority
shall determine or provide for the determination of | ||||||
8 | the rate or
rates of interest of its bonds or notes
issued | ||||||
9 | under this Act in an ordinance adopted by the Authority prior | ||||||
10 | to
the issuance thereof, none of which rates of interest shall | ||||||
11 | exceed
that permitted in the Bond Authorization Act. Interest | ||||||
12 | may be payable at such times as are provided for
by the Board. | ||||||
13 | Bonds and notes issued under this Section may
be issued as | ||||||
14 | serial or term obligations, shall be of such denomination
or | ||||||
15 | denominations and form, including interest coupons to be | ||||||
16 | attached
thereto, be executed in such manner, shall be payable | ||||||
17 | at such place or
places and bear such date as the Authority | ||||||
18 | shall fix by the ordinance
authorizing such bond or note and | ||||||
19 | shall mature at such time or times,
within a period not to | ||||||
20 | exceed forty years from the date of issue, and
may be | ||||||
21 | redeemable prior to maturity with or without premium, at the
| ||||||
22 | option of the Authority, upon such terms and conditions as the | ||||||
23 | Authority
shall fix by the ordinance authorizing the issuance | ||||||
24 | of such bonds or
notes. No bond anticipation note or any | ||||||
25 | renewal thereof shall mature at
any time or times exceeding 5 | ||||||
26 | years from the date of the first issuance
of such note. The |
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1 | Authority may provide for the registration of bonds or
notes in | ||||||
2 | the name of the owner as to the principal alone or as to both
| ||||||
3 | principal and interest, upon such terms and conditions as the | ||||||
4 | Authority
may determine. The ordinance authorizing bonds or | ||||||
5 | notes may provide for
the exchange of such bonds or notes which | ||||||
6 | are fully registered, as to
both principal and interest, with | ||||||
7 | bonds or notes which are registerable
as to principal only. All | ||||||
8 | bonds or notes issued under this Section by
the Authority other | ||||||
9 | than those issued in exchange for property or for
bonds or | ||||||
10 | notes of the Authority shall be sold at a price which may be at
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11 | a premium or discount but such that the interest cost | ||||||
12 | (excluding any
redemption premium) to the Authority of the | ||||||
13 | proceeds of an issue of such
bonds or notes, computed to stated | ||||||
14 | maturity according to standard tables
of bond values, shall not | ||||||
15 | exceed that permitted in the Bond Authorization
Act. The | ||||||
16 | Authority shall notify
the
Governor's Office of Management and | ||||||
17 | Budget and the State Comptroller at least 30 days
before any | ||||||
18 | bond sale and shall file with the
Governor's Office of | ||||||
19 | Management and Budget and the
State Comptroller a certified | ||||||
20 | copy of any ordinance authorizing the issuance
of bonds at or | ||||||
21 | before the issuance of the bonds.
After December 31, 1994, any | ||||||
22 | such bonds or notes shall be sold
to the highest and best | ||||||
23 | bidder on sealed bids as the Authority shall deem.
As such | ||||||
24 | bonds or notes are to be sold the Authority shall advertise for
| ||||||
25 | proposals to purchase the bonds or notes which advertisement | ||||||
26 | shall be published
at least once in a daily newspaper of |
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1 | general circulation published in the
metropolitan region at | ||||||
2 | least 10 days before the time set for the submission
of bids. | ||||||
3 | The Authority shall have the right to reject any or all bids.
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4 | Notwithstanding any other provisions of this Section, Working | ||||||
5 | Cash Notes or
bonds or notes to provide funds for | ||||||
6 | self-insurance or a joint self-insurance
pool or entity may be | ||||||
7 | sold either upon competitive bidding or by negotiated
sale
| ||||||
8 | (without any requirement of publication of intention to | ||||||
9 | negotiate the sale
of such Notes), as the Board shall determine | ||||||
10 | by ordinance adopted with the
affirmative votes of at least 9
| ||||||
11 | Directors. In case any officer whose signature
appears on any | ||||||
12 | bonds, notes or coupons authorized pursuant to this
Section | ||||||
13 | shall cease to be such officer before delivery of such bonds or
| ||||||
14 | notes, such signature shall nevertheless be valid and | ||||||
15 | sufficient for all
purposes, the same as if such officer had | ||||||
16 | remained in office until such
delivery. Neither the Directors | ||||||
17 | of the Authority nor any person
executing any bonds or notes | ||||||
18 | thereof shall be liable personally on any
such bonds or notes | ||||||
19 | or coupons by reason of the issuance thereof. | ||||||
20 | (c) All bonds or notes of the Authority issued pursuant to | ||||||
21 | this Section
shall be general obligations
of the Authority to | ||||||
22 | which shall be pledged the full faith and credit of the
| ||||||
23 | Authority, as provided in this Section. Such bonds or notes
| ||||||
24 | shall be secured
as provided in the authorizing ordinance, | ||||||
25 | which may, notwithstanding any other
provision of this Act, | ||||||
26 | include in addition to any other security, a specific
pledge or |
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1 | assignment of and lien on or security interest in any or all | ||||||
2 | tax
receipts of the Authority and on any or all other revenues | ||||||
3 | or moneys of the
Authority from whatever source, which may by | ||||||
4 | law be utilized for debt
service purposes and a specific pledge | ||||||
5 | or assignment of and lien on or security
interest in any funds | ||||||
6 | or accounts established or provided for by the ordinance
of the | ||||||
7 | Authority authorizing the issuance of such bonds or notes. Any | ||||||
8 | such
pledge, assignment, lien or security interest for the | ||||||
9 | benefit of holders of
bonds or notes of the Authority shall be | ||||||
10 | valid and binding from the time the
bonds or notes are issued | ||||||
11 | without any physical delivery or further act
and shall be valid | ||||||
12 | and binding as against and prior to the claims of all
other | ||||||
13 | parties having claims of any kind against the Authority or any | ||||||
14 | other
person irrespective of whether such other parties have | ||||||
15 | notice of such pledge,
assignment, lien or security interest. | ||||||
16 | The obligations of the Authority
incurred pursuant to this | ||||||
17 | Section shall be superior to and have priority over
any other | ||||||
18 | obligations of the Authority. | ||||||
19 | The Authority may provide in the
ordinance authorizing the | ||||||
20 | issuance of any bonds or notes issued pursuant to
this Section | ||||||
21 | for the creation of, deposits in, and regulation and | ||||||
22 | disposition
of sinking fund or reserve accounts relating to | ||||||
23 | such bonds or notes. The
ordinance authorizing the issuance of | ||||||
24 | any bonds or notes pursuant to this
Section may contain | ||||||
25 | provisions as part of the contract with the holders
of the | ||||||
26 | bonds or notes, for the creation of a separate fund to provide
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1 | for the payment of principal and interest on such bonds or | ||||||
2 | notes
and for the deposit in such fund from any or all the tax | ||||||
3 | receipts of the
Authority and from any or all such other moneys | ||||||
4 | or revenues of the
Authority from whatever source which may by | ||||||
5 | law be utilized for debt
service purposes, all as provided in | ||||||
6 | such ordinance, of amounts to meet
the debt service | ||||||
7 | requirements on such bonds or notes, including
principal and | ||||||
8 | interest, and any sinking fund or reserve fund account
| ||||||
9 | requirements as may be provided by such ordinance, and all | ||||||
10 | expenses
incident to or in connection with such fund and | ||||||
11 | accounts or the payment
of such bonds or notes.
Such ordinance | ||||||
12 | may also provide limitations on the issuance of additional
| ||||||
13 | bonds or notes of the Authority. No such bonds or notes of the | ||||||
14 | Authority
shall constitute a debt of the State of Illinois. | ||||||
15 | Nothing in this Act shall
be construed to enable the Authority | ||||||
16 | to impose any ad valorem tax on property. | ||||||
17 | (d) The ordinance of the Authority authorizing the issuance | ||||||
18 | of any bonds
or notes may provide additional security for such | ||||||
19 | bonds or notes by providing
for appointment of a corporate | ||||||
20 | trustee (which may be any trust company or
bank having the | ||||||
21 | powers of a trust company within the state) with respect
to | ||||||
22 | such bonds or notes. The ordinance shall prescribe the rights, | ||||||
23 | duties
and powers of the trustee to be exercised for the | ||||||
24 | benefit of the Authority
and the protection of the holders of | ||||||
25 | such bonds or notes. The ordinance
may provide for the trustee | ||||||
26 | to hold in trust, invest and use amounts in
funds and accounts |
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| |||||||
1 | created as provided by the ordinance with respect to
the bonds | ||||||
2 | or notes. The ordinance may provide for the assignment and | ||||||
3 | direct
payment to the trustee of any or all amounts produced | ||||||
4 | from the sources
provided in Section 4.03 and Section 4.09 of | ||||||
5 | this Act and provided in Section 6z-17 of "An Act
in relation | ||||||
6 | to State finance", approved June 10, 1919, as amended.
Upon | ||||||
7 | receipt of notice of any such assignment, the Department of | ||||||
8 | Revenue and
the Comptroller of the State of Illinois shall | ||||||
9 | thereafter, notwithstanding the
provisions of Section 4.03 and | ||||||
10 | Section 4.09 of this Act and Section 6z-17 of "An Act in | ||||||
11 | relation
to State finance", approved June 10, 1919, as amended, | ||||||
12 | provide for such
assigned amounts to be paid directly to the | ||||||
13 | trustee instead of the Authority,
all in accordance with the | ||||||
14 | terms of the ordinance making the assignment. The
ordinance | ||||||
15 | shall provide that
amounts so paid to the trustee which are not | ||||||
16 | required to be deposited, held
or invested in funds and | ||||||
17 | accounts created by the ordinance with respect
to bonds or | ||||||
18 | notes or used for paying bonds or notes to be paid by the | ||||||
19 | trustee
to the Authority. | ||||||
20 | (e) Any bonds or notes of the Authority issued pursuant to | ||||||
21 | this
Section shall constitute a contract between the Authority | ||||||
22 | and the
holders from time to time of such bonds or notes. In | ||||||
23 | issuing any bond or
note, the Authority may include in the | ||||||
24 | ordinance authorizing such issue
a covenant as part of the | ||||||
25 | contract with the holders of the bonds or
notes, that as long | ||||||
26 | as such obligations are outstanding, it shall make
such |
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1 | deposits, as provided in paragraph (c) of this Section. It may | ||||||
2 | also
so covenant that it shall impose and continue to impose | ||||||
3 | taxes, as
provided in Section 4.03 of this Act and in addition | ||||||
4 | thereto as
subsequently authorized by law, sufficient to make | ||||||
5 | such deposits and pay
the principal and interest and to meet | ||||||
6 | other debt service requirements
of such bonds or notes as they | ||||||
7 | become due. A certified copy of the
ordinance authorizing the | ||||||
8 | issuance of any such obligations shall be
filed at or prior to | ||||||
9 | the issuance of such obligations with the Comptroller
of the | ||||||
10 | State of Illinois and the Illinois Department of Revenue. | ||||||
11 | (f) The State of Illinois pledges to and agrees with the | ||||||
12 | holders of
the bonds and notes of the Authority issued pursuant | ||||||
13 | to this Section
that the State will not limit or alter the | ||||||
14 | rights and powers vested in
the Authority by this Act so as to | ||||||
15 | impair the terms of any contract made
by the Authority with | ||||||
16 | such holders or in any way impair the rights and
remedies of | ||||||
17 | such holders until such bonds and notes, together with
interest | ||||||
18 | thereon, with interest on any unpaid installments of interest,
| ||||||
19 | and all costs and expenses in connection with any action or | ||||||
20 | proceedings
by or on behalf of such holders, are fully met and | ||||||
21 | discharged. In
addition, the State pledges to and agrees with | ||||||
22 | the holders of the bonds
and notes of the Authority issued | ||||||
23 | pursuant to this Section that the
State will not limit or alter | ||||||
24 | the basis on which State funds are to be
paid to the Authority | ||||||
25 | as provided in this Act, or the use of such funds,
so as to | ||||||
26 | impair the terms of any such contract. The Authority is
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1 | authorized to include these pledges and agreements of the State | ||||||
2 | in any
contract with the holders of bonds or notes issued | ||||||
3 | pursuant to this
Section. | ||||||
4 | (g)(1) Except as provided in subdivisions (g)(2) and (g)(3) | ||||||
5 | of Section
4.04 of this Act, the Authority shall not at any | ||||||
6 | time issue, sell or deliver
any bonds or notes (other than | ||||||
7 | Working Cash Notes and lines of credit ) pursuant to this | ||||||
8 | Section
4.04 which will cause
it to have issued and outstanding | ||||||
9 | at any time in excess of $800,000,000 of such
bonds and notes | ||||||
10 | (other than Working Cash Notes and lines of credit ).
The | ||||||
11 | Authority shall not issue, sell, or deliver any Working Cash | ||||||
12 | Notes or establish a line of credit pursuant to this Section | ||||||
13 | that will cause it to have issued and outstanding at any time | ||||||
14 | in excess of $100,000,000. However, the Authority may issue, | ||||||
15 | sell, and deliver additional Working Cash Notes or establish a | ||||||
16 | line of credit before July 1, 2020 2018 that are over and above | ||||||
17 | and in addition to the $100,000,000 authorization such that the | ||||||
18 | outstanding amount of these additional Working Cash Notes and | ||||||
19 | lines of credit do does not exceed at any time $300,000,000.
| ||||||
20 | Bonds or notes which are being paid or retired by
such | ||||||
21 | issuance, sale or delivery of bonds or notes, and bonds or | ||||||
22 | notes for
which sufficient funds have been deposited with the | ||||||
23 | paying agency of
such bonds or notes to provide for payment of | ||||||
24 | principal and interest
thereon or to provide for the redemption | ||||||
25 | thereof, all pursuant to the
ordinance authorizing the issuance | ||||||
26 | of such bonds or notes, shall not be
considered to be |
| |||||||
| |||||||
1 | outstanding for the purposes of this subsection. | ||||||
2 | (2) In addition to the authority provided by paragraphs
(1) | ||||||
3 | and (3), the Authority is authorized to issue, sell and deliver | ||||||
4 | bonds
or notes for Strategic Capital Improvement Projects | ||||||
5 | approved pursuant to
Section 4.13 as follows: | ||||||
6 | $100,000,000 is authorized to be issued on or after | ||||||
7 | January 1, 1990; | ||||||
8 | an additional $100,000,000 is authorized to be issued | ||||||
9 | on or after
January 1, 1991; | ||||||
10 | an additional $100,000,000 is authorized to be issued | ||||||
11 | on or after
January 1, 1992; | ||||||
12 | an additional $100,000,000 is authorized to be issued | ||||||
13 | on or after
January 1, 1993; | ||||||
14 | an additional $100,000,000 is authorized to be issued | ||||||
15 | on or after
January 1, 1994; and | ||||||
16 | the aggregate total authorization of bonds and notes | ||||||
17 | for Strategic
Capital Improvement Projects as of January 1, | ||||||
18 | 1994, shall be $500,000,000. | ||||||
19 | The Authority is also authorized to issue, sell, and | ||||||
20 | deliver bonds or
notes in such amounts as are necessary to | ||||||
21 | provide for the refunding or advance
refunding of bonds or | ||||||
22 | notes issued for Strategic Capital Improvement Projects
under | ||||||
23 | this subdivision (g)(2), provided that no such refunding bond | ||||||
24 | or note
shall mature later than the final maturity date of the | ||||||
25 | series of bonds or notes
being refunded, and provided further | ||||||
26 | that the debt service requirements for
such refunding bonds or |
| |||||||
| |||||||
1 | notes in the current or any future fiscal year shall
not exceed | ||||||
2 | the debt service requirements for that year on the refunded | ||||||
3 | bonds
or notes. | ||||||
4 | (3) In addition to the authority provided by paragraphs (1) | ||||||
5 | and (2),
the Authority is authorized to issue, sell, and | ||||||
6 | deliver bonds or notes for
Strategic Capital Improvement | ||||||
7 | Projects approved pursuant to Section 4.13 as
follows: | ||||||
8 | $260,000,000 is authorized to be issued on or after | ||||||
9 | January 1, 2000; | ||||||
10 | an additional $260,000,000 is authorized to be issued | ||||||
11 | on or after
January 1, 2001; | ||||||
12 | an additional $260,000,000 is authorized to be issued | ||||||
13 | on or after
January 1, 2002; | ||||||
14 | an additional $260,000,000 is authorized to be issued | ||||||
15 | on or after
January 1, 2003; | ||||||
16 | an additional $260,000,000 is authorized to be issued | ||||||
17 | on or after
January 1, 2004; and | ||||||
18 | the aggregate total authorization of bonds and notes | ||||||
19 | for Strategic
Capital Improvement Projects pursuant to | ||||||
20 | this paragraph (3) as of
January 1, 2004 shall be | ||||||
21 | $1,300,000,000. | ||||||
22 | The Authority is also authorized to issue, sell, and | ||||||
23 | deliver bonds or notes
in such amounts as are necessary to | ||||||
24 | provide for the refunding or advance
refunding of bonds or | ||||||
25 | notes issued for Strategic Capital Improvement projects
under | ||||||
26 | this subdivision (g)(3), provided that no such refunding bond |
| |||||||
| |||||||
1 | or note
shall mature later than the final maturity date of the | ||||||
2 | series of bonds or notes
being refunded, and provided further | ||||||
3 | that the debt service requirements for
such refunding bonds or | ||||||
4 | notes in the current or any future fiscal year shall
not exceed | ||||||
5 | the debt service requirements for that year on the refunded | ||||||
6 | bonds or
notes. | ||||||
7 | (h) The Authority, subject to the terms of any agreements | ||||||
8 | with noteholders
or bond holders as may then exist, shall have | ||||||
9 | power, out of any funds
available therefor, to purchase notes | ||||||
10 | or bonds of the Authority, which
shall thereupon be cancelled. | ||||||
11 | (i) In addition to any other authority granted by law, the | ||||||
12 | State Treasurer
may, with the approval of the Governor, invest | ||||||
13 | or reinvest, at a price not
to exceed par, any State money in | ||||||
14 | the State Treasury which is not needed
for current expenditures | ||||||
15 | due or about to become due in Working Cash Notes. | ||||||
16 | (j) The Authority may establish a line of credit with a | ||||||
17 | bank or other financial institution as may be evidenced by the | ||||||
18 | issuance of notes or other obligations, secured by and payable | ||||||
19 | from all tax receipts of the Authority and any or all other | ||||||
20 | revenues or moneys of the Authority, in an amount not to exceed | ||||||
21 | the limitations set forth in paragraph (1) of subsection (g). | ||||||
22 | Money borrowed under this subsection (j) shall be used to | ||||||
23 | provide money for the Authority or the Service Boards to cover | ||||||
24 | any cash flow deficit that the Authority or a Service Board | ||||||
25 | anticipates incurring and shall be repaid within 24 months. | ||||||
26 | Before establishing a line of credit under this subsection |
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1 | (j), the Authority shall authorize the line of credit by | ||||||
2 | ordinance. The ordinance shall set forth facts demonstrating | ||||||
3 | the need for the line of credit, state the amount to be | ||||||
4 | borrowed, establish a maximum interest rate limit not to exceed | ||||||
5 | the maximum rate authorized by the Bond Authorization Act, and | ||||||
6 | provide a date by which the borrowed funds shall be repaid. The | ||||||
7 | ordinance shall authorize and direct the relevant officials to | ||||||
8 | make arrangements to set apart and hold, as applicable, the | ||||||
9 | moneys that will be used to repay the borrowing. In addition, | ||||||
10 | the ordinance may authorize the relevant officials to make | ||||||
11 | partial repayments on the line of credit as the moneys become | ||||||
12 | available and may contain any other terms, restrictions, or | ||||||
13 | limitations desirable or necessary to give effect to this | ||||||
14 | subsection (j). | ||||||
15 | The Authority shall notify the Governor's Office of | ||||||
16 | Management and Budget and the State Comptroller at least 30 | ||||||
17 | days before establishing a line of credit and shall file with | ||||||
18 | the Governor's Office of Management and Budget and the State | ||||||
19 | Comptroller a certified copy of any ordinance authorizing the | ||||||
20 | establishment of a line of credit upon or before establishing | ||||||
21 | the line of credit. | ||||||
22 | Moneys borrowed under a line of credit pursuant to this | ||||||
23 | subsection (j) are general obligations of the Authority that | ||||||
24 | are secured by the full faith and credit of the Authority. | ||||||
25 | (Source: P.A. 98-392, eff. 8-16-13; 99-238, eff. 8-3-15.)
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1 | Section 99. Effective date. This Act takes effect upon | ||||||
2 | becoming law.".
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