Bill Text: IL HB2823 | 2019-2020 | 101st General Assembly | Engrossed


Bill Title: Amends the Metropolitan Transit Authority Act and Regional Transportation Authority Act. Establishes procedures for repayment of defaulted interim financing notes issued by the Chicago Transit Authority and defaulted working cash notes issued by the Regional Transportation Authority, in which State money in the State treasury was invested. Provides that the Regional Transportation Authority may issue, sell, and deliver additional working cash notes and establish lines of credit (rather than only working cash notes) before July 1, 2022 (rather than July 1, 2018) that are over and above and in addition to the $100,000,000 bond or note authorization. Establishes procedures for establishment of lines of credit. Requires notice to the Governor's Office of Management and Budget and State Comptroller before establishing a line of credit and provides that money borrowed under a line of credit are general obligations of the Authority that are secured by the full faith and credit of the Authority. Effective immediately.

Spectrum: Slight Partisan Bill (Democrat 2-1)

Status: (Engrossed) 2019-05-24 - Rule 2-10 Third Reading Deadline Established As May 31, 2019 [HB2823 Detail]

Download: Illinois-2019-HB2823-Engrossed.html



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1 AN ACT concerning local government.
2 Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
4 Section 5. The Metropolitan Transit Authority Act is
5amended by changing Section 12a as follows:
6 (70 ILCS 3605/12a) (from Ch. 111 2/3, par. 312a)
7 Sec. 12a. (a) In addition to other powers provided in
8Section 12b, the Authority may issue its notes from time to
9time, in anticipation of tax receipts of the Regional
10Transportation Authority allocated to the Authority or of other
11revenues or receipts of the Authority, in order to provide
12money for the Authority to cover any cash flow deficit which
13the Authority anticipates incurring. Provided, however, that
14no such notes may be issued unless the annual cost thereof is
15incorporated in a budget or revised budget of the Authority
16which has been approved by the Regional Transportation
17Authority. Any such notes are referred to as "Working Cash
18Notes". Provided further that, the board shall not issue and
19have outstanding or demand and direct that the Board of the
20Regional Transportation Authority issue and have outstanding
21more than an aggregate of $40,000,000 in Working Cash Notes. No
22Working Cash Notes shall be issued for a term of longer than 18
23months. Proceeds of Working Cash Notes may be used to pay day

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1to day operating expenses of the Authority, consisting of
2wages, salaries and fringe benefits, professional and
3technical services (including legal, audit, engineering and
4other consulting services), office rental, furniture, fixtures
5and equipment, insurance premiums, claims for self-insured
6amounts under insurance policies, public utility obligations
7for telephone, light, heat and similar items, travel expenses,
8office supplies, postage, dues, subscriptions, public hearings
9and information expenses, fuel purchases, and payments of
10grants and payments under purchase of service agreements for
11operations of transportation agencies, prior to the receipt by
12the Authority from time to time of funds for paying such
13expenses. Proceeds of the Working Cash Notes shall not be used
14(i) to increase or provide a debt service reserve fund for any
15bonds or notes other than Working Cash Notes of the same
16Series, or (ii) to pay principal of or interest or redemption
17premium on any capital bonds or notes, whether as such amounts
18become due or by earlier redemption, issued by the Authority or
19a transportation agency to construct or acquire public
20transportation facilities, or to provide funds to purchase such
21capital bonds or notes.
22 (b) The ordinance providing for the issuance of any such
23notes shall fix the date or dates of maturity, the dates on
24which interest is payable, any sinking fund account or reserve
25fund account provisions and all other details of such notes and
26may provide for such covenants or agreements necessary or

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1desirable with regard to the issue, sale and security of such
2notes. The Authority shall determine and fix the rate or rates
3of interest of its notes issued under this Act in an ordinance
4adopted by the Board prior to the issuance thereof, none of
5which rates of interest shall exceed that permitted in the Bond
6Authorization Act. Interest may be payable annually or
7semi-annually, or at such other times as determined by the
8Board. Notes issued under this Section may be issued as serial
9or term obligations, shall be of such denomination or
10denominations and form, including interest coupons to be
11attached thereto, be executed in such manner, shall be payable
12at such place or places and bear such date as the Board shall
13fix by the ordinance authorizing such note and shall mature at
14such time or times, within a period not to exceed 18 months
15from the date of issue, and may be redeemable prior to maturity
16with or without premium, at the option of the Board, upon such
17terms and conditions as the Board shall fix by the ordinance
18authorizing the issuance of such notes. The Board may provide
19for the registration of notes in the name of the owner as to
20the principal alone or as to both principal and interest, upon
21such terms and conditions as the Board may determine. The
22ordinance authorizing notes may provide for the exchange of
23such notes which are fully registered, as to both principal and
24interest, with notes which are registerable as to principal
25only. All notes issued under this Section by the Board shall be
26sold at a price which may be at a premium or discount but such

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1that the interest cost (excluding any redemption premium) to
2the Board of the proceeds of an issue of such notes, computed
3to stated maturity according to standard tables of bond values,
4shall not exceed that permitted in the Bond Authorization Act.
5Such notes shall be sold at such time or times as the Board
6shall determine. The notes may be sold either upon competitive
7bidding or by negotiated sale (without any requirement of
8publication of intention to negotiate the sale of such notes),
9as the Board shall determine by ordinance adopted with the
10affirmative votes of at least 4 Directors. In case any officer
11whose signature appears on any notes or coupons authorized
12pursuant to this Section shall cease to be such officer before
13delivery of such notes, such signature shall nevertheless be
14valid and sufficient for all purposes, the same as if such
15officer had remained in office until such delivery. Neither the
16Directors of the Regional Transportation Authority, the
17Directors of the Authority nor any person executing any bonds
18or notes thereof shall be liable personally on any such bonds
19or notes or coupons by reason of the issuance thereof.
20 (c) All notes of the Authority issued pursuant to this
21Section shall be general obligations of the Authority to which
22shall be pledged the full faith and credit of the Authority, as
23provided in this Section. Such notes shall be secured as
24provided in the authorizing ordinance, which may,
25notwithstanding any other provision of this Act, include in
26addition to any other security, a specific pledge or assignment

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1of and lien on or security interest in any or all tax receipts
2of the Regional Transportation Authority allocated to the
3Authority and on any or all other revenues or moneys of the
4Authority from whatever source which may by law be utilized for
5debt service purposes and a specific pledge or assignment of
6and lien on or security interest in any funds or accounts
7established or provided for by the ordinance of the Board
8authorizing the issuance of such notes. Any such pledge,
9assignment, lien or security interest for the benefit of
10holders of notes of the Authority shall be valid and binding
11from the time the notes are issued without any physical
12delivery or further act, and shall be valid and binding as
13against and prior to the claims of all other parties having
14claims of any kind against the Authority or any other person
15irrespective of whether such other parties have notice of such
16pledge, assignment, lien or security interest. The obligations
17of the Authority incurred pursuant to this Section shall be
18superior to and have priority over any other obligations of the
19Authority except for obligations under Section 12. The Board
20may provide in the ordinance authorizing the issuance of any
21notes issued pursuant to this Section for the creation of,
22deposits in, and regulation and disposition of sinking fund or
23reserve accounts relating to such notes. The ordinance
24authorizing the issuance of any notes pursuant to this Section
25may contain provisions as part of the contract with the holders
26of the notes, for the creation of a separate fund to provide

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1for the payment of principal and interest on such notes and for
2the deposit in such fund from any or all the tax receipts of
3the Regional Transportation Authority allocated to the
4Authority and from any or all such other moneys or revenues of
5the Authority from whatever source which may by law be utilized
6for debt service purposes, all as provided in such ordinance,
7of amounts to meet the debt service requirements on such notes,
8including principal and interest, and any sinking fund or
9reserve fund account requirements as may be provided by such
10ordinance, and all expenses incident to or in connection with
11such fund and accounts or the payment of such notes. Such
12ordinance may also provide limitations on the issuance of
13additional notes of the Authority. No such notes of the
14Authority shall constitute a debt of the State of Illinois.
15 (d) The ordinance of the Board authorizing the issuance of
16any notes may provide additional security for such notes by
17providing for appointment of a corporate trustee (which may be
18any trust company or bank having the powers of a trust company
19within the State) with respect to such notes. The ordinance
20shall prescribe the rights, duties and powers of the trustee to
21be exercised for the benefit of the Authority and the
22protection of the holders of such notes. The ordinance may
23provide for the trustee to hold in trust, invest and use
24amounts in funds and accounts created as provided by the
25ordinance with respect to the notes. The ordinance shall
26provide that amounts so paid to the trustee which are not

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1required to be deposited, held or invested in funds and
2accounts created by the ordinance with respect to notes or used
3for paying notes to be paid by the trustee to the Authority.
4 (e) Any notes of the Authority issued pursuant to this
5Section shall constitute a contract between the Authority and
6the holders from time to time of such notes. In issuing any
7note, the Board may include in the ordinance authorizing such
8issue a covenant as part of the contract with the holders of
9the notes, that as long as such obligations are outstanding, it
10shall make such deposits, as provided in paragraph (c) of this
11Section. A certified copy of the ordinance authorizing the
12issuance of any such obligations shall be filed at or prior to
13the issuance of such obligations with the Regional
14Transportation Authority, Comptroller of the State of Illinois
15and the Illinois Department of Revenue.
16 (f) The State of Illinois pledges to and agrees with the
17holders of the notes of the Authority issued pursuant to this
18Section that the State will not limit or alter the rights and
19powers vested in the Authority by this Act or in the Regional
20Transportation Authority by the Regional Transportation
21Authority Act so as to impair the terms of any contract made by
22the Authority with such holders or in any way impair the rights
23and remedies of such holders until such notes, together with
24interest thereon, with interest on any unpaid installments of
25interest, and all costs and expenses in connection with any
26action or proceedings by or on behalf of such holders, are

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1fully met and discharged. In addition, the State pledges to and
2agrees with the holders of the notes of the Authority issued
3pursuant to this Section that the State will not limit or alter
4the basis on which State funds are to be paid to the Authority
5as provided in the Regional Transportation Authority Act, or
6the use of such funds, so as to impair the terms of any such
7contract. The Board is authorized to include these pledges and
8agreements of the State in any contract with the holders of
9bonds or notes issued pursuant to this Section.
10 (g) The Board shall not at any time issue, sell or deliver
11any Interim Financing Notes pursuant to this Section which will
12cause it to have issued and outstanding at any time in excess
13of $40,000,000 of Working Cash Notes. Notes which are being
14paid or retired by such issuance, sale or delivery of notes,
15and notes for which sufficient funds have been deposited with
16the paying agency of such notes to provide for payment of
17principal and interest thereon or to provide for the redemption
18thereof, all pursuant to the ordinance authorizing the issuance
19of such notes, shall not be considered to be outstanding for
20the purposes of this paragraph.
21 (h) The Board, subject to the terms of any agreements with
22noteholders as may then exist, shall have power, out of any
23funds available therefor, to purchase notes of the Authority
24which shall thereupon be cancelled.
25 (i) In addition to any other authority granted by law, the
26State Treasurer may, with the approval of the Governor, invest

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1or reinvest, at a price not to exceed par, any State money in
2the State Treasury which is not needed for current expenditures
3due or about to become due in Interim Financing Notes. In the
4event of a default on an interim financing note issued by the
5Chicago Transit Authority in which State money in the State
6treasury was invested, the Treasurer may, after giving notice
7to the Authority, certify to the Comptroller the amounts of the
8defaulted interim financing note, in accordance with any
9applicable rules of the Comptroller, and the Comptroller must
10deduct and remit to the State treasury the certified amounts or
11a portion of those amounts from the following proportions of
12payments of State funds to the Authority:
13 (1) in the first year after default, one-third of the
14 total amount of any payments of State funds to the
15 Authority;
16 (2) in the second year after default, two-thirds of the
17 total amount of any payments of State funds to the
18 Authority; and
19 (3) in the third year after default and for each year
20 thereafter until the total invested amount is repaid, the
21 total amount of any payments of State funds to the
22 Authority.
23(Source: P.A. 100-201, eff. 8-18-17.)
24 Section 10. The Regional Transportation Authority Act is
25amended by changing Section 4.04 as follows:

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1 (70 ILCS 3615/4.04) (from Ch. 111 2/3, par. 704.04)
2 Sec. 4.04. Issuance and Pledge of Bonds and Notes.
3 (a) The Authority shall have the continuing power to borrow
4money and to issue its negotiable bonds or notes as provided in
5this Section. Unless otherwise indicated in this Section, the
6term "notes" also includes bond anticipation notes, which are
7notes which by their terms provide for their payment from the
8proceeds of bonds thereafter to be issued. Bonds or notes of
9the Authority may be issued for any or all of the following
10purposes: to pay costs to the Authority or a Service Board of
11constructing or acquiring any public transportation facilities
12(including funds and rights relating thereto, as provided in
13Section 2.05 of this Act); to repay advances to the Authority
14or a Service Board made for such purposes; to pay other
15expenses of the Authority or a Service Board incident to or
16incurred in connection with such construction or acquisition;
17to provide funds for any transportation agency to pay principal
18of or interest or redemption premium on any bonds or notes,
19whether as such amounts become due or by earlier redemption,
20issued prior to the date of this amendatory Act by such
21transportation agency to construct or acquire public
22transportation facilities or to provide funds to purchase such
23bonds or notes; and to provide funds for any transportation
24agency to construct or acquire any public transportation
25facilities, to repay advances made for such purposes, and to

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1pay other expenses incident to or incurred in connection with
2such construction or acquisition; and to provide funds for
3payment of obligations, including the funding of reserves,
4under any self-insurance plan or joint self-insurance pool or
5entity.
6 In addition to any other borrowing as may be authorized by
7this Section, the Authority may issue its notes, from time to
8time, in anticipation of tax receipts of the Authority or of
9other revenues or receipts of the Authority, in order to
10provide money for the Authority or the Service Boards to cover
11any cash flow deficit which the Authority or a Service Board
12anticipates incurring. Any such notes are referred to in this
13Section as "Working Cash Notes". No Working Cash Notes shall be
14issued for a term of longer than 24 months. Proceeds of Working
15Cash Notes may be used to pay day to day operating expenses of
16the Authority or the Service Boards, consisting of wages,
17salaries and fringe benefits, professional and technical
18services (including legal, audit, engineering and other
19consulting services), office rental, furniture, fixtures and
20equipment, insurance premiums, claims for self-insured amounts
21under insurance policies, public utility obligations for
22telephone, light, heat and similar items, travel expenses,
23office supplies, postage, dues, subscriptions, public hearings
24and information expenses, fuel purchases, and payments of
25grants and payments under purchase of service agreements for
26operations of transportation agencies, prior to the receipt by

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1the Authority or a Service Board from time to time of funds for
2paying such expenses. In addition to any Working Cash Notes
3that the Board of the Authority may determine to issue, the
4Suburban Bus Board, the Commuter Rail Board or the Board of the
5Chicago Transit Authority may demand and direct that the
6Authority issue its Working Cash Notes in such amounts and
7having such maturities as the Service Board may determine.
8 Notwithstanding any other provision of this Act, any
9amounts necessary to pay principal of and interest on any
10Working Cash Notes issued at the demand and direction of a
11Service Board or any Working Cash Notes the proceeds of which
12were used for the direct benefit of a Service Board or any
13other Bonds or Notes of the Authority the proceeds of which
14were used for the direct benefit of a Service Board shall
15constitute a reduction of the amount of any other funds
16provided by the Authority to that Service Board. The Authority
17shall, after deducting any costs of issuance, tender the net
18proceeds of any Working Cash Notes issued at the demand and
19direction of a Service Board to such Service Board as soon as
20may be practicable after the proceeds are received. The
21Authority may also issue notes or bonds to pay, refund or
22redeem any of its notes and bonds, including to pay redemption
23premiums or accrued interest on such bonds or notes being
24renewed, paid or refunded, and other costs in connection
25therewith. The Authority may also utilize the proceeds of any
26such bonds or notes to pay the legal, financial, administrative

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1and other expenses of such authorization, issuance, sale or
2delivery of bonds or notes or to provide or increase a debt
3service reserve fund with respect to any or all of its bonds or
4notes. The Authority may also issue and deliver its bonds or
5notes in exchange for any public transportation facilities,
6(including funds and rights relating thereto, as provided in
7Section 2.05 of this Act) or in exchange for outstanding bonds
8or notes of the Authority, including any accrued interest or
9redemption premium thereon, without advertising or submitting
10such notes or bonds for public bidding.
11 (b) The ordinance providing for the issuance of any such
12bonds or notes shall fix the date or dates of maturity, the
13dates on which interest is payable, any sinking fund account or
14reserve fund account provisions and all other details of such
15bonds or notes and may provide for such covenants or agreements
16necessary or desirable with regard to the issue, sale and
17security of such bonds or notes. The rate or rates of interest
18on its bonds or notes may be fixed or variable and the
19Authority shall determine or provide for the determination of
20the rate or rates of interest of its bonds or notes issued
21under this Act in an ordinance adopted by the Authority prior
22to the issuance thereof, none of which rates of interest shall
23exceed that permitted in the Bond Authorization Act. Interest
24may be payable at such times as are provided for by the Board.
25Bonds and notes issued under this Section may be issued as
26serial or term obligations, shall be of such denomination or

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1denominations and form, including interest coupons to be
2attached thereto, be executed in such manner, shall be payable
3at such place or places and bear such date as the Authority
4shall fix by the ordinance authorizing such bond or note and
5shall mature at such time or times, within a period not to
6exceed forty years from the date of issue, and may be
7redeemable prior to maturity with or without premium, at the
8option of the Authority, upon such terms and conditions as the
9Authority shall fix by the ordinance authorizing the issuance
10of such bonds or notes. No bond anticipation note or any
11renewal thereof shall mature at any time or times exceeding 5
12years from the date of the first issuance of such note. The
13Authority may provide for the registration of bonds or notes in
14the name of the owner as to the principal alone or as to both
15principal and interest, upon such terms and conditions as the
16Authority may determine. The ordinance authorizing bonds or
17notes may provide for the exchange of such bonds or notes which
18are fully registered, as to both principal and interest, with
19bonds or notes which are registerable as to principal only. All
20bonds or notes issued under this Section by the Authority other
21than those issued in exchange for property or for bonds or
22notes of the Authority shall be sold at a price which may be at
23a premium or discount but such that the interest cost
24(excluding any redemption premium) to the Authority of the
25proceeds of an issue of such bonds or notes, computed to stated
26maturity according to standard tables of bond values, shall not

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1exceed that permitted in the Bond Authorization Act. The
2Authority shall notify the Governor's Office of Management and
3Budget and the State Comptroller at least 30 days before any
4bond sale and shall file with the Governor's Office of
5Management and Budget and the State Comptroller a certified
6copy of any ordinance authorizing the issuance of bonds at or
7before the issuance of the bonds. After December 31, 1994, any
8such bonds or notes shall be sold to the highest and best
9bidder on sealed bids as the Authority shall deem. As such
10bonds or notes are to be sold the Authority shall advertise for
11proposals to purchase the bonds or notes which advertisement
12shall be published at least once in a daily newspaper of
13general circulation published in the metropolitan region at
14least 10 days before the time set for the submission of bids.
15The Authority shall have the right to reject any or all bids.
16Notwithstanding any other provisions of this Section, Working
17Cash Notes or bonds or notes to provide funds for
18self-insurance or a joint self-insurance pool or entity may be
19sold either upon competitive bidding or by negotiated sale
20(without any requirement of publication of intention to
21negotiate the sale of such Notes), as the Board shall determine
22by ordinance adopted with the affirmative votes of at least 9
23Directors. In case any officer whose signature appears on any
24bonds, notes or coupons authorized pursuant to this Section
25shall cease to be such officer before delivery of such bonds or
26notes, such signature shall nevertheless be valid and

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1sufficient for all purposes, the same as if such officer had
2remained in office until such delivery. Neither the Directors
3of the Authority nor any person executing any bonds or notes
4thereof shall be liable personally on any such bonds or notes
5or coupons by reason of the issuance thereof.
6 (c) All bonds or notes of the Authority issued pursuant to
7this Section shall be general obligations of the Authority to
8which shall be pledged the full faith and credit of the
9Authority, as provided in this Section. Such bonds or notes
10shall be secured as provided in the authorizing ordinance,
11which may, notwithstanding any other provision of this Act,
12include in addition to any other security, a specific pledge or
13assignment of and lien on or security interest in any or all
14tax receipts of the Authority and on any or all other revenues
15or moneys of the Authority from whatever source, which may by
16law be utilized for debt service purposes and a specific pledge
17or assignment of and lien on or security interest in any funds
18or accounts established or provided for by the ordinance of the
19Authority authorizing the issuance of such bonds or notes. Any
20such pledge, assignment, lien or security interest for the
21benefit of holders of bonds or notes of the Authority shall be
22valid and binding from the time the bonds or notes are issued
23without any physical delivery or further act and shall be valid
24and binding as against and prior to the claims of all other
25parties having claims of any kind against the Authority or any
26other person irrespective of whether such other parties have

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1notice of such pledge, assignment, lien or security interest.
2The obligations of the Authority incurred pursuant to this
3Section shall be superior to and have priority over any other
4obligations of the Authority.
5 The Authority may provide in the ordinance authorizing the
6issuance of any bonds or notes issued pursuant to this Section
7for the creation of, deposits in, and regulation and
8disposition of sinking fund or reserve accounts relating to
9such bonds or notes. The ordinance authorizing the issuance of
10any bonds or notes pursuant to this Section may contain
11provisions as part of the contract with the holders of the
12bonds or notes, for the creation of a separate fund to provide
13for the payment of principal and interest on such bonds or
14notes and for the deposit in such fund from any or all the tax
15receipts of the Authority and from any or all such other moneys
16or revenues of the Authority from whatever source which may by
17law be utilized for debt service purposes, all as provided in
18such ordinance, of amounts to meet the debt service
19requirements on such bonds or notes, including principal and
20interest, and any sinking fund or reserve fund account
21requirements as may be provided by such ordinance, and all
22expenses incident to or in connection with such fund and
23accounts or the payment of such bonds or notes. Such ordinance
24may also provide limitations on the issuance of additional
25bonds or notes of the Authority. No such bonds or notes of the
26Authority shall constitute a debt of the State of Illinois.

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1Nothing in this Act shall be construed to enable the Authority
2to impose any ad valorem tax on property.
3 (d) The ordinance of the Authority authorizing the issuance
4of any bonds or notes may provide additional security for such
5bonds or notes by providing for appointment of a corporate
6trustee (which may be any trust company or bank having the
7powers of a trust company within the state) with respect to
8such bonds or notes. The ordinance shall prescribe the rights,
9duties and powers of the trustee to be exercised for the
10benefit of the Authority and the protection of the holders of
11such bonds or notes. The ordinance may provide for the trustee
12to hold in trust, invest and use amounts in funds and accounts
13created as provided by the ordinance with respect to the bonds
14or notes. The ordinance may provide for the assignment and
15direct payment to the trustee of any or all amounts produced
16from the sources provided in Section 4.03 and Section 4.09 of
17this Act and provided in Section 6z-17 of "An Act in relation
18to State finance", approved June 10, 1919, as amended. Upon
19receipt of notice of any such assignment, the Department of
20Revenue and the Comptroller of the State of Illinois shall
21thereafter, notwithstanding the provisions of Section 4.03 and
22Section 4.09 of this Act and Section 6z-17 of "An Act in
23relation to State finance", approved June 10, 1919, as amended,
24provide for such assigned amounts to be paid directly to the
25trustee instead of the Authority, all in accordance with the
26terms of the ordinance making the assignment. The ordinance

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1shall provide that amounts so paid to the trustee which are not
2required to be deposited, held or invested in funds and
3accounts created by the ordinance with respect to bonds or
4notes or used for paying bonds or notes to be paid by the
5trustee to the Authority.
6 (e) Any bonds or notes of the Authority issued pursuant to
7this Section shall constitute a contract between the Authority
8and the holders from time to time of such bonds or notes. In
9issuing any bond or note, the Authority may include in the
10ordinance authorizing such issue a covenant as part of the
11contract with the holders of the bonds or notes, that as long
12as such obligations are outstanding, it shall make such
13deposits, as provided in paragraph (c) of this Section. It may
14also so covenant that it shall impose and continue to impose
15taxes, as provided in Section 4.03 of this Act and in addition
16thereto as subsequently authorized by law, sufficient to make
17such deposits and pay the principal and interest and to meet
18other debt service requirements of such bonds or notes as they
19become due. A certified copy of the ordinance authorizing the
20issuance of any such obligations shall be filed at or prior to
21the issuance of such obligations with the Comptroller of the
22State of Illinois and the Illinois Department of Revenue.
23 (f) The State of Illinois pledges to and agrees with the
24holders of the bonds and notes of the Authority issued pursuant
25to this Section that the State will not limit or alter the
26rights and powers vested in the Authority by this Act so as to

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1impair the terms of any contract made by the Authority with
2such holders or in any way impair the rights and remedies of
3such holders until such bonds and notes, together with interest
4thereon, with interest on any unpaid installments of interest,
5and all costs and expenses in connection with any action or
6proceedings by or on behalf of such holders, are fully met and
7discharged. In addition, the State pledges to and agrees with
8the holders of the bonds and notes of the Authority issued
9pursuant to this Section that the State will not limit or alter
10the basis on which State funds are to be paid to the Authority
11as provided in this Act, or the use of such funds, so as to
12impair the terms of any such contract. The Authority is
13authorized to include these pledges and agreements of the State
14in any contract with the holders of bonds or notes issued
15pursuant to this Section.
16 (g)(1) Except as provided in subdivisions (g)(2) and (g)(3)
17of Section 4.04 of this Act, the Authority shall not at any
18time issue, sell or deliver any bonds or notes (other than
19Working Cash Notes and lines of credit) pursuant to this
20Section 4.04 which will cause it to have issued and outstanding
21at any time in excess of $800,000,000 of such bonds and notes
22(other than Working Cash Notes and lines of credit). The
23Authority shall not issue, sell, or deliver any Working Cash
24Notes or establish a line of credit pursuant to this Section
25that will cause it to have issued and outstanding at any time
26in excess of $100,000,000. However, the Authority may issue,

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1sell, and deliver additional Working Cash Notes or establish a
2line of credit before July 1, 2022 2018 that are over and above
3and in addition to the $100,000,000 authorization such that the
4outstanding amount of these additional Working Cash Notes and
5lines of credit do does not exceed at any time $300,000,000.
6Bonds or notes which are being paid or retired by such
7issuance, sale or delivery of bonds or notes, and bonds or
8notes for which sufficient funds have been deposited with the
9paying agency of such bonds or notes to provide for payment of
10principal and interest thereon or to provide for the redemption
11thereof, all pursuant to the ordinance authorizing the issuance
12of such bonds or notes, shall not be considered to be
13outstanding for the purposes of this subsection.
14 (2) In addition to the authority provided by paragraphs (1)
15and (3), the Authority is authorized to issue, sell and deliver
16bonds or notes for Strategic Capital Improvement Projects
17approved pursuant to Section 4.13 as follows:
18 $100,000,000 is authorized to be issued on or after
19 January 1, 1990;
20 an additional $100,000,000 is authorized to be issued
21 on or after January 1, 1991;
22 an additional $100,000,000 is authorized to be issued
23 on or after January 1, 1992;
24 an additional $100,000,000 is authorized to be issued
25 on or after January 1, 1993;
26 an additional $100,000,000 is authorized to be issued

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1 on or after January 1, 1994; and
2 the aggregate total authorization of bonds and notes
3 for Strategic Capital Improvement Projects as of January 1,
4 1994, shall be $500,000,000.
5 The Authority is also authorized to issue, sell, and
6deliver bonds or notes in such amounts as are necessary to
7provide for the refunding or advance refunding of bonds or
8notes issued for Strategic Capital Improvement Projects under
9this subdivision (g)(2), provided that no such refunding bond
10or note shall mature later than the final maturity date of the
11series of bonds or notes being refunded, and provided further
12that the debt service requirements for such refunding bonds or
13notes in the current or any future fiscal year shall not exceed
14the debt service requirements for that year on the refunded
15bonds or notes.
16 (3) In addition to the authority provided by paragraphs (1)
17and (2), the Authority is authorized to issue, sell, and
18deliver bonds or notes for Strategic Capital Improvement
19Projects approved pursuant to Section 4.13 as follows:
20 $260,000,000 is authorized to be issued on or after
21 January 1, 2000;
22 an additional $260,000,000 is authorized to be issued
23 on or after January 1, 2001;
24 an additional $260,000,000 is authorized to be issued
25 on or after January 1, 2002;
26 an additional $260,000,000 is authorized to be issued

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1 on or after January 1, 2003;
2 an additional $260,000,000 is authorized to be issued
3 on or after January 1, 2004; and
4 the aggregate total authorization of bonds and notes
5 for Strategic Capital Improvement Projects pursuant to
6 this paragraph (3) as of January 1, 2004 shall be
7 $1,300,000,000.
8 The Authority is also authorized to issue, sell, and
9deliver bonds or notes in such amounts as are necessary to
10provide for the refunding or advance refunding of bonds or
11notes issued for Strategic Capital Improvement projects under
12this subdivision (g)(3), provided that no such refunding bond
13or note shall mature later than the final maturity date of the
14series of bonds or notes being refunded, and provided further
15that the debt service requirements for such refunding bonds or
16notes in the current or any future fiscal year shall not exceed
17the debt service requirements for that year on the refunded
18bonds or notes.
19 (h) The Authority, subject to the terms of any agreements
20with noteholders or bond holders as may then exist, shall have
21power, out of any funds available therefor, to purchase notes
22or bonds of the Authority, which shall thereupon be cancelled.
23 (i) In addition to any other authority granted by law, the
24State Treasurer may, with the approval of the Governor, invest
25or reinvest, at a price not to exceed par, any State money in
26the State Treasury which is not needed for current expenditures

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1due or about to become due in Working Cash Notes. In the event
2of a default on a Working Cash Note issued by the Regional
3Transportation Authority in which State money in the State
4treasury was invested, the Treasurer may, after giving notice
5to the Authority, certify to the Comptroller the amounts of the
6defaulted Working Cash Note, in accordance with any applicable
7rules of the Comptroller, and the Comptroller must deduct and
8remit to the State treasury the certified amounts or a portion
9of those amounts from the following proportions of payments of
10State funds to the Authority:
11 (1) in the first year after default, one-third of the
12 total amount of any payments of State funds to the
13 Authority;
14 (2) in the second year after default, two-thirds of the
15 total amount of any payments of State funds to the
16 Authority; and
17 (3) in the third year after default and for each year
18 thereafter until the total invested amount is repaid, the
19 total amount of any payments of State funds to the
20 Authority.
21 (j) The Authority may establish a line of credit with a
22bank or other financial institution as may be evidenced by the
23issuance of notes or other obligations, secured by and payable
24from all tax receipts of the Authority and any or all other
25revenues or moneys of the Authority, in an amount not to exceed
26the limitations set forth in paragraph (1) of subsection (g).

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1Money borrowed under this subsection (j) shall be used to
2provide money for the Authority or the Service Boards to cover
3any cash flow deficit that the Authority or a Service Board
4anticipates incurring and shall be repaid within 24 months.
5 Before establishing a line of credit under this subsection
6(j), the Authority shall authorize the line of credit by
7ordinance. The ordinance shall set forth facts demonstrating
8the need for the line of credit, state the amount to be
9borrowed, establish a maximum interest rate limit not to exceed
10the maximum rate authorized by the Bond Authorization Act, and
11provide a date by which the borrowed funds shall be repaid. The
12ordinance shall authorize and direct the relevant officials to
13make arrangements to set apart and hold, as applicable, the
14moneys that will be used to repay the borrowing. In addition,
15the ordinance may authorize the relevant officials to make
16partial repayments on the line of credit as the moneys become
17available and may contain any other terms, restrictions, or
18limitations desirable or necessary to give effect to this
19subsection (j).
20 The Authority shall notify the Governor's Office of
21Management and Budget and the State Comptroller at least 30
22days before establishing a line of credit and shall file with
23the Governor's Office of Management and Budget and the State
24Comptroller a certified copy of any ordinance authorizing the
25establishment of a line of credit upon or before establishing
26the line of credit.

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1 Moneys borrowed under a line of credit pursuant to this
2subsection (j) are general obligations of the Authority that
3are secured by the full faith and credit of the Authority.
4(Source: P.A. 98-392, eff. 8-16-13; 99-238, eff. 8-3-15.)
5 Section 99. Effective date. This Act takes effect upon
6becoming law.
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