Bill Text: IL HB1237 | 2009-2010 | 96th General Assembly | Introduced

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Bill Title: Amends the Toll Highway Act. Makes a technical change in a Section concerning bonds.

Sponsorship: Partisan Bill (Democrat 1)

Status: (Introduced - Dead) 2009-03-13 - Rule 19(a) / Re-referred to Rules Committee [HB1237 Detail]

Download: Illinois-2009-HB1237-Introduced.html

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96TH GENERAL ASSEMBLY State of Illinois 2009 and 2010 HB1237 Introduced 2/18/2009, by Rep. Jack D. Franks SYNOPSIS AS INTRODUCED:
605 ILCS 10/17 from Ch. 121, par. 100-17
Amends the Toll Highway Act. Makes a technical change in a Section concerning bonds.
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A BILL FOR
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AN ACT concerning transportation.
Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
Section 5. The Toll Highway Act is amended by changing
Section 17 as follows:
(605 ILCS 10/17) (from Ch. 121, par. 100-17)
Sec. 17. (a) The The Authority may from time to time issue
bonds for any lawful purpose including, without limitation, the
costs of issuance thereof and all such bonds or other
obligations of the Authority issued pursuant to this Act shall
be and are hereby declared to be negotiable for all purposes
notwithstanding their payment from a limited source and without
regard to any other law or laws.
(b) The bonds of every issue shall be payable solely out of
revenues of the Authority, accumulated reserves or sinking
funds, bond proceeds, proceeds of refunding bonds, or
investment earnings as the Authority shall specify in a bond
resolution.
(c) The bonds may be issued as serial bonds or as term
bonds, or the Authority, in its discretion, may issue bonds of
both types. The bonds shall be authorized by a bond resolution
of the Authority, may be issued in one or more series and shall
bear such date or dates, mature at such time or times not

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exceeding 25 years from their respective date or dates of
issue, bear interest at such rate or rates, fixed or variable,
without regard to any limit contained in any other statute or
law of the State of Illinois, be payable as to principal and
interest at such time or times, be in such denominations, be in
such form, either coupon or fully registered, carry such
registration and conversion privileges, be payable in lawful
money of the United States of America at such places, be
subject to such terms of redemption and may contain such other
terms and provisions, as such bond resolution or resolutions
may provide. The bonds shall be executed by the manual or
facsimile signatures of the Chairman and the Secretary. In case
any of the officers whose signature appears on the bonds or
coupons, if any, shall cease to be an officer before the
delivery of such bonds, such signature shall nevertheless be
valid and sufficient for all purposes, as if he had remained in
office until such delivery. The bonds shall be sold in such
manner as the Authority shall determine. The proceeds from the
sale of such bonds shall be paid to the Treasurer of the State
of Illinois as ex officio custodian. Pending preparation of the
definitive bonds, the Authority may issue interim receipts or
certificates which shall be exchanged for such definitive
bonds.
(d) Any bond resolution, or trust indenture entered into
pursuant to a bond resolution, may contain provisions, which
shall be a part of the contract with the holders of the bonds

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to be authorized, as to: (i) pledging or creating a lien upon
all or part of the revenues of the Authority or any reserves,
sinking funds, bond proceeds or investment earnings; (ii) the
setting aside of reserves or sinking funds, and the regulation,
investment and disposition thereof; (iii) the use and
maintenance requirements for the toll highways; (iv) the
purposes to which or the investments in which the proceeds of
sale of any series or issue of bonds then or thereafter to be
issued may be applied; (v) the issuance of additional bonds,
the terms upon which additional bonds may be issued and
secured, the purposes for such additional bonds, and the terms
upon which additional bonds may rank on a parity with, or be
subordinate or superior to other bonds; (vi) the refunding of
outstanding bonds; (vii) the procedure, if any, by which the
terms of any contract with bondholders may be amended or
abrogated, the amount of bonds the holders of which must
consent thereto, and the manner in which such consent may be
given; (viii) defining the acts or omissions to act which shall
constitute a default in the duties of the Authority to holders
of its obligations and providing the rights and remedies of
such holders in the event of a default; (ix) any other matters
relating to the bonds which the Authority deems desirable.
(e) Neither the directors of the Authority nor any person
executing the bonds shall be liable personally on the bonds or
be subject to any personal liability or accountability by
reason of the issuance thereof.

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(f) The Authority shall have power out of any funds
available therefor to purchase its bonds. The Authority may
hold, pledge, cancel or resell such bonds subject to and in
accordance with agreements with bondholders.
(g) In the discretion of the Authority any bonds issued
under the provisions of this Act may be secured by a trust
indenture by and between the Authority and a trustee or
trustees, which may be any trust company or bank in the State
of Illinois having the powers of a trust company and possessing
capital and surplus of not less than $50,000,000. The bond
resolution or trust indenture providing for the issuance of
bonds so secured shall pledge such revenues of the Authority,
sinking funds, bond proceeds, or investment earnings as may be
specified therein, may contain such provisions for protecting
and enforcing the rights and remedies of the bondholders as may
be reasonable and proper and not in violation of law, including
particularly such provisions as have hereinabove been
specifically authorized to be included in any bond resolution
or trust indenture of the Authority, and may restrict the
individual right of action by bondholders. In addition to the
foregoing, any bond resolution or trust indenture may contain
such other provisions as the Authority may deem reasonable and
proper for the security of the bondholders, including, but not
limited to, the purchase of bond insurance and the arrangement
of letters of credit, lines of credit or other credit or
liquidity enhancement facilities; provided there shall be no

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pledge of the toll highway or any part thereof. All expenses
incurred in carrying out the provisions of any bond resolution
or trust indenture may be treated as a part of the cost of the
operation of the toll highways.
(h) Bonds issued under the authority of this Act do not,
and shall state upon the face of each bond that they do not,
represent or constitute a debt of the Authority or of the State
of Illinois within the meaning of any constitutional or
statutory limitation or a pledge of the faith and credit of the
Authority or the State of Illinois, or grant to the owners or
holders thereof any right to have the Authority or the General
Assembly levy any taxes or appropriate any funds for the
payment of the principal thereof or interest thereon. Such
bonds shall be payable and shall state that they are payable
solely from the revenues and the sources authorized under this
Act and pledged for their payment in accordance with the bond
resolution or trust indenture.
Nothing in this Act shall be construed to authorize the
Authority or any department, board, commission or other agency
to create an obligation of the State of Illinois within the
meaning of the Constitution or Statutes of Illinois.
(i) Any resolution or trust indenture authorizing the
issuance of the bonds may include provision for the issuance of
additional bonds. All resolutions of the Authority to carry
such adopted bond resolutions into effect, to provide for the
sale and delivery of the bonds, for letting of contracts for

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the construction of toll highways and the acquisition of real
and personal property deemed by the Authority necessary or
convenient for the construction thereof, shall not require the
approval of the Governor or of any other department, division,
commission, bureau, board or other agency of the State.
(Source: P.A. 83-1258.)