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_002.html

---

Rep. Al Riley

Filed: 3/28/2017

10000HB3004ham002 LRB100 08469 AWJ 24428 a
AMENDMENT TO HOUSE BILL 3004
AMENDMENT NO. ______. Amend House Bill 3004, AS AMENDED, by
replacing everything after the enacting clause with the
following:
"Section 5. The Metropolitan Transit Authority Act is
amended by changing Section 12a as follows:
(70 ILCS 3605/12a) (from Ch. 111 2/3, par. 312a)
Sec. 12a. (a) In addition to other powers provided in
Section 12b, the Authority may issue its notes from time to
time, in anticipation of tax receipts of the Regional
Transportation Authority allocated to the Authority or of other
revenues or receipts of the Authority, in order to provide
money for the Authority to cover any cash flow deficit which
the Authority anticipates incurring. Provided, however, that
no such notes may be issued unless the annual cost thereof is
incorporated in a budget or revised budget of the Authority

10000HB3004ham002 - 2 - LRB100 08469 AWJ 24428 a
which has been approved by the Regional Transportation
Authority. Any such notes are referred to as "Working Cash
Notes". Provided further that, the board shall not issue and
have outstanding or demand and direct that the Board of the
Regional Transportation Authority issue and have outstanding
more than an aggregate of $40,000,000 in Working Cash Notes. No
Working Cash Notes shall be issued for a term of longer than 18
months. Proceeds of Working Cash Notes may be used to pay day
to day operating expenses of the Authority, consisting of
wages, salaries and fringe benefits, professional and
technical services (including legal, audit, engineering and
other consulting services), office rental, furniture, fixtures
and equipment, insurance premiums, claims for self-insured
amounts under insurance policies, public utility obligations
for telephone, light, heat and similar items, travel expenses,
office supplies, postage, dues, subscriptions, public hearings
and information expenses, fuel purchases, and payments of
grants and payments under purchase of service agreements for
operations of transportation agencies, prior to the receipt by
the Authority from time to time of funds for paying such
expenses. Proceeds of the Working Cash Notes shall not be used
(i) to increase or provide a debt service reserve fund for any
bonds or notes other than Working Cash Notes of the same
Series, or (ii) to pay principal of or interest or redemption
premium on any capital bonds or notes, whether as such amounts
become due or by earlier redemption, issued by the Authority or

10000HB3004ham002 - 3 - LRB100 08469 AWJ 24428 a
a transportation agency to construct or acquire public
transportation facilities, or to provide funds to purchase such
capital bonds or notes.
(b) The ordinance providing for the issuance of any such
notes shall fix the date or dates of maturity, the dates on
which interest is payable, any sinking fund account or reserve
fund account provisions and all other details of such notes and
may provide for such covenants or agreements necessary or
desirable with regard to the issue, sale and security of such
notes. The Authority shall determine and fix the rate or rates
of interest of its notes issued under this Act in an ordinance
adopted by the Board prior to the issuance thereof, none of
which rates of interest shall exceed that permitted in the Bond
Authorization Act "An Act to authorize public corporations to
issue bonds, other evidences of indebtedness and tax
anticipation warrants subject to interest rate limitations set
forth therein", approved May 26, 1970, as now or hereafter
amended. Interest may be payable annually or semi-annually, or
at such other times as determined by the Board. Notes issued
under this Section may be issued as serial or term obligations,
shall be of such denomination or denominations and form,
including interest coupons to be attached thereto, be executed
in such manner, shall be payable at such place or places and
bear such date as the Board shall fix by the ordinance
authorizing such note and shall mature at such time or times,
within a period not to exceed 18 months from the date of issue,

10000HB3004ham002 - 4 - LRB100 08469 AWJ 24428 a
and may be redeemable prior to maturity with or without
premium, at the option of the Board, upon such terms and
conditions as the Board shall fix by the ordinance authorizing
the issuance of such notes. The Board may provide for the
registration of notes in the name of the owner as to the
principal alone or as to both principal and interest, upon such
terms and conditions as the Board may determine. The ordinance
authorizing notes may provide for the exchange of such notes
which are fully registered, as to both principal and interest,
with notes which are registerable as to principal only. All
notes issued under this Section by the Board shall be sold at a
price which may be at a premium or discount but such that the
interest cost (excluding any redemption premium) to the Board
of the proceeds of an issue of such notes, computed to stated
maturity according to standard tables of bond values, shall not
exceed that permitted in the Bond Authorization Act "An Act to
authorize public corporations to issue bonds, other evidences
of indebtedness and tax anticipation warrants subject to
interest rate limitations set forth therein", approved May 26,
1970, as now or hereafter amended. Such notes shall be sold at
such time or times as the Board shall determine. The notes may
be sold either upon competitive bidding or by negotiated sale
(without any requirement of publication of intention to
negotiate the sale of such notes), as the Board shall determine
by ordinance adopted with the affirmative votes of at least 4
Directors. In case any officer whose signature appears on any

10000HB3004ham002 - 5 - LRB100 08469 AWJ 24428 a
notes or coupons authorized pursuant to this Section shall
cease to be such officer before delivery of such notes, such
signature shall nevertheless be valid and sufficient for all
purposes, the same as if such officer had remained in office
until such delivery. Neither the Directors of the Regional
Transportation Authority, the Directors of the Authority nor
any person executing any bonds or notes thereof shall be liable
personally on any such bonds or notes or coupons by reason of
the issuance thereof.
(c) All notes of the Authority issued pursuant to this
Section shall be general obligations of the Authority to which
shall be pledged the full faith and credit of the Authority, as
provided in this Section. Such notes shall be secured as
provided in the authorizing ordinance, which may,
notwithstanding any other provision of this Act, include in
addition to any other security, a specific pledge or assignment
of and lien on or security interest in any or all tax receipts
of the Regional Transportation Authority allocated to the
Authority and on any or all other revenues or moneys of the
Authority from whatever source which may by law be utilized for
debt service purposes and a specific pledge or assignment of
and lien on or security interest in any funds or accounts
established or provided for by the ordinance of the Board
authorizing the issuance of such notes. Any such pledge,
assignment, lien or security interest for the benefit of
holders of notes of the Authority shall be valid and binding

10000HB3004ham002 - 6 - LRB100 08469 AWJ 24428 a
from the time the notes are issued without any physical
delivery or further act, and shall be valid and binding as
against and prior to the claims of all other parties having
claims of any kind against the Authority or any other person
irrespective of whether such other parties have notice of such
pledge, assignment, lien or security interest. The obligations
of the Authority incurred pursuant to this Section shall be
superior to and have priority over any other obligations of the
Authority except for obligations under Section 12. The Board
may provide in the ordinance authorizing the issuance of any
notes issued pursuant to this Section for the creation of,
deposits in, and regulation and disposition of sinking fund or
reserve accounts relating to such notes. The ordinance
authorizing the issuance of any notes pursuant to this Section
may contain provisions as part of the contract with the holders
of the notes, for the creation of a separate fund to provide
for the payment of principal and interest on such notes and for
the deposit in such fund from any or all the tax receipts of
the Regional Transportation Authority allocated to the
Authority and from any or all such other moneys or revenues of
the Authority from whatever source which may by law be utilized
for debt service purposes, all as provided in such ordinance,
of amounts to meet the debt service requirements on such notes,
including principal and interest, and any sinking fund or
reserve fund account requirements as may be provided by such
ordinance, and all expenses incident to or in connection with

10000HB3004ham002 - 7 - LRB100 08469 AWJ 24428 a
such fund and accounts or the payment of such notes. Such
ordinance may also provide limitations on the issuance of
additional notes of the Authority. No such notes of the
Authority shall constitute a debt of the State of Illinois.
(d) The ordinance of the Board authorizing the issuance of
any notes may provide additional security for such notes by
providing for appointment of a corporate trustee (which may be
any trust company or bank having the powers of a trust company
within the State) with respect to such notes. The ordinance
shall prescribe the rights, duties and powers of the trustee to
be exercised for the benefit of the Authority and the
protection of the holders of such notes. The ordinance may
provide for the trustee to hold in trust, invest and use
amounts in funds and accounts created as provided by the
ordinance with respect to the notes. The ordinance shall
provide that amounts so paid to the trustee which are not
required to be deposited, held or invested in funds and
accounts created by the ordinance with respect to notes or used
for paying notes to be paid by the trustee to the Authority.
(e) Any notes of the Authority issued pursuant to this
Section shall constitute a contract between the Authority and
the holders from time to time of such notes. In issuing any
note, the Board may include in the ordinance authorizing such
issue a covenant as part of the contract with the holders of
the notes, that as long as such obligations are outstanding, it
shall make such deposits, as provided in paragraph (c) of this

10000HB3004ham002 - 8 - LRB100 08469 AWJ 24428 a
Section. A certified copy of the ordinance authorizing the
issuance of any such obligations shall be filed at or prior to
the issuance of such obligations with the Regional
Transportation Authority, Comptroller of the State of Illinois
and the Illinois Department of Revenue.
(f) The State of Illinois pledges to and agrees with the
holders of the notes of the Authority issued pursuant to this
Section that the State will not limit or alter the rights and
powers vested in the Authority by this Act or in the Regional
Transportation Authority by the "Regional Transportation
Authority Act" so as to impair the terms of any contract made
by the Authority with such holders or in any way impair the
rights and remedies of such holders until such notes, together
with interest thereon, with interest on any unpaid installments
of interest, and all costs and expenses in connection with any
action or proceedings by or on behalf of such holders, are
fully met and discharged. In addition, the State pledges to and
agrees with the holders of the notes of the Authority issued
pursuant to this Section that the State will not limit or alter
the basis on which State funds are to be paid to the Authority
as provided in the Regional Transportation Authority Act, or
the use of such funds, so as to impair the terms of any such
contract. The Board is authorized to include these pledges and
agreements of the State in any contract with the holders of
bonds or notes issued pursuant to this Section.
(g) The Board shall not at any time issue, sell or deliver

10000HB3004ham002 - 9 - LRB100 08469 AWJ 24428 a
any Interim Financing Notes pursuant to this Section which will
cause it to have issued and outstanding at any time in excess
of $40,000,000 of Working Cash Notes. Notes which are being
paid or retired by such issuance, sale or delivery of notes,
and notes for which sufficient funds have been deposited with
the paying agency of such notes to provide for payment of
principal and interest thereon or to provide for the redemption
thereof, all pursuant to the ordinance authorizing the issuance
of such notes, shall not be considered to be outstanding for
the purposes of this paragraph.
(h) The Board, subject to the terms of any agreements with
noteholders as may then exist, shall have power, out of any
funds available therefor, to purchase notes of the Authority
which shall thereupon be cancelled.
(i) In addition to any other authority granted by law, the
State Treasurer may, with the approval of the Governor, invest
or reinvest, at a price not to exceed par, any State money in
the State Treasury which is not needed for current expenditures
due or about to become due in Interim Financing Notes. In the
case of a default on an Interim Financing Note issued by the
Chicago Transit Authority with which State money in the
Treasury was invested, the Treasurer may, after giving notice
to the Authority, certify to the Comptroller the amounts of the
defaulted Interim Financing Note, in accordance with any
applicable rules of the Comptroller, and the Comptroller must
deduct and remit to the Treasury the certified amounts or a

10000HB3004ham002 - 10 - LRB100 08469 AWJ 24428 a
portion of those amounts from the following proportions of
payments of State funds to the Authority:
(1) in the first year after default, one-third of the
total amount of any payments of State funds to the
Authority;
(2) in the second year after default, two-thirds of the
total amount of any payments of State funds to the
Authority; and
(3) in the third year after default and for each year
thereafter until the total invested amount is repaid, the
total amount of any payments of State funds to the
Authority.
(Source: P.A. 96-328, eff. 8-11-09; revised 9-22-16.)
Section 10. The Regional Transportation Authority Act is
amended by changing Section 4.04 as follows:
(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

10000HB3004ham002 - 11 - LRB100 08469 AWJ 24428 a
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

10000HB3004ham002 - 12 - LRB100 08469 AWJ 24428 a
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

10000HB3004ham002 - 13 - LRB100 08469 AWJ 24428 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.

10000HB3004ham002 - 14 - LRB100 08469 AWJ 24428 a
(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

10000HB3004ham002 - 15 - LRB100 08469 AWJ 24428 a
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

10000HB3004ham002 - 16 - LRB100 08469 AWJ 24428 a
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,

10000HB3004ham002 - 17 - LRB100 08469 AWJ 24428 a
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

10000HB3004ham002 - 18 - LRB100 08469 AWJ 24428 a
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

10000HB3004ham002 - 19 - LRB100 08469 AWJ 24428 a
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 "An Act in relation
to State finance", approved June 10, 1919, as amended. 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 "An Act in
relation to State finance", approved June 10, 1919, as amended,
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

10000HB3004ham002 - 20 - LRB100 08469 AWJ 24428 a
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

10000HB3004ham002 - 21 - LRB100 08469 AWJ 24428 a
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, 2020 2018 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 do 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

10000HB3004ham002 - 22 - LRB100 08469 AWJ 24428 a
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
January 1, 1990;
an additional $100,000,000 is authorized to be issued
on or after January 1, 1991;
an additional $100,000,000 is authorized to be issued
on or after January 1, 1992;
an additional $100,000,000 is authorized to be issued
on or after January 1, 1993;
an additional $100,000,000 is authorized to be issued
on or after January 1, 1994; and
the aggregate total authorization of bonds and notes
for Strategic Capital Improvement Projects as of January 1,
1994, shall be $500,000,000.
The Authority is also authorized to issue, sell, and
deliver bonds or notes in such amounts as are necessary to
provide for the refunding or advance refunding of bonds or
notes issued for Strategic Capital Improvement Projects under
this subdivision (g)(2), provided that no such refunding bond
or note shall mature later than the final maturity date of the

10000HB3004ham002 - 23 - LRB100 08469 AWJ 24428 a
series of bonds or notes being refunded, and provided further
that the debt service requirements for such refunding bonds or
notes in the current or any future fiscal year shall not exceed
the debt service requirements for that year on the refunded
bonds or notes.
(3) In addition to the authority provided by paragraphs (1)
and (2), 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:
$260,000,000 is authorized to be issued on or after
January 1, 2000;
an additional $260,000,000 is authorized to be issued
on or after January 1, 2001;
an additional $260,000,000 is authorized to be issued
on or after January 1, 2002;
an additional $260,000,000 is authorized to be issued
on or after January 1, 2003;
an additional $260,000,000 is authorized to be issued
on or after January 1, 2004; and
the aggregate total authorization of bonds and notes
for Strategic Capital Improvement Projects pursuant to
this paragraph (3) as of January 1, 2004 shall be
$1,300,000,000.
The Authority is also authorized to issue, sell, and
deliver bonds or notes in such amounts as are necessary to
provide for the refunding or advance refunding of bonds or

10000HB3004ham002 - 24 - LRB100 08469 AWJ 24428 a
notes issued for Strategic Capital Improvement projects under
this subdivision (g)(3), provided that no such refunding bond
or note shall mature later than the final maturity date of the
series of bonds or notes being refunded, and provided further
that the debt service requirements for such refunding bonds or
notes in the current or any future fiscal year shall not exceed
the debt service requirements for that year on the refunded
bonds or notes.
(h) The Authority, subject to the terms of any agreements
with noteholders or bond holders as may then exist, shall have
power, out of any funds available therefor, to purchase notes
or bonds of the Authority, which shall thereupon be cancelled.
(i) In addition to any other authority granted by law, the
State Treasurer may, with the approval of the Governor, invest
or reinvest, at a price not to exceed par, any State money in
the State Treasury which is not needed for current expenditures
due or about to become due in Working Cash Notes. In the case
of a default on a Working Cash Note issued by the Regional
Transportation Authority with which State money in the Treasury
was invested, the Treasurer may, after giving notice to the
Authority, certify to the Comptroller the amounts of the
defaulted Working Cash Note, in accordance with any applicable
rules of the Comptroller, and the Comptroller must deduct and
remit to the Treasury the certified amounts or a portion of
those amounts from the following proportions of payments of
State funds to the Authority:

10000HB3004ham002 - 25 - LRB100 08469 AWJ 24428 a
(1) in the first year after default, one-third of the
total amount of any payments of State funds to the
Authority;
(2) in the second year after default, two-thirds of the
total amount of any payments of State funds to the
Authority; and
(3) in the third year after default and for each year
thereafter until the total invested amount is repaid, the
total amount of any payments of State funds to the
Authority.
(j) The Authority may establish a line of credit with a
bank or other financial institution as may be evidenced by the
issuance of notes or other obligations, secured by and payable
from all tax receipts of the Authority and any or all other
revenues or moneys of the Authority, in an amount not to exceed
the limitations set forth in paragraph (1) of subsection (g).
Money borrowed under this subsection (j) shall be used to
provide money for the Authority or the Service Boards to cover
any cash flow deficit that the Authority or a Service Board
anticipates incurring and shall be repaid within 24 months.
Before establishing a line of credit under this subsection
(j), the Authority shall authorize the line of credit by
ordinance. The ordinance shall set forth facts demonstrating
the need for the line of credit, state the amount to be
borrowed, establish a maximum interest rate limit not to exceed
the maximum rate authorized by the Bond Authorization Act, and

10000HB3004ham002 - 26 - LRB100 08469 AWJ 24428 a
provide a date by which the borrowed funds shall be repaid. The
ordinance shall authorize and direct the relevant officials to
make arrangements to set apart and hold, as applicable, the
moneys that will be used to repay the borrowing. In addition,
the ordinance may authorize the relevant officials to make
partial repayments on the line of credit as the moneys become
available and may contain any other terms, restrictions, or
limitations desirable or necessary to give effect to this
subsection (j).
The Authority shall notify the Governor's Office of
Management and Budget and the State Comptroller at least 30
days before establishing a line of credit and shall file with
the Governor's Office of Management and Budget and the State
Comptroller a certified copy of any ordinance authorizing the
establishment of a line of credit upon or before establishing
the line of credit.
Moneys borrowed under a line of credit pursuant to this
subsection (j) are general obligations of the Authority that
are secured by the full faith and credit of the Authority.
(Source: P.A. 98-392, eff. 8-16-13; 99-238, eff. 8-3-15.)
Section 99. Effective date. This Act takes effect upon
becoming law.".