Bill Text: IL HB3004 | 2017-2018 | 100th General Assembly | Enrolled


Bill Title: Amends the Regional Transportation Authority Act. Provides that the Authority may issue, sell, and deliver additional Working Cash Notes before July 1, 2020 (now July 1, 2018) that are over and above and in addition to the $100,000,000 authorization. Effective immediately.

Spectrum: Partisan Bill (Democrat 2-0)

Status: (Enrolled) 2017-05-30 - Passed Both Houses [HB3004 Detail]

Download: Illinois-2017-HB3004-Enrolled.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 "An Act to authorize public corporations to
7issue bonds, other evidences of indebtedness and tax
8anticipation warrants subject to interest rate limitations set
9forth therein", approved May 26, 1970, as now or hereafter
10amended. Interest may be payable annually or semi-annually, or
11at such other times as determined by the Board. Notes issued
12under this Section may be issued as serial or term obligations,
13shall be of such denomination or denominations and form,
14including interest coupons to be attached thereto, be executed
15in such manner, shall be payable at such place or places and
16bear such date as the Board shall fix by the ordinance
17authorizing such note and shall mature at such time or times,
18within a period not to exceed 18 months from the date of issue,
19and may be redeemable prior to maturity with or without
20premium, at the option of the Board, upon such terms and
21conditions as the Board shall fix by the ordinance authorizing
22the issuance of such notes. The Board may provide for the
23registration of notes in the name of the owner as to the
24principal alone or as to both principal and interest, upon such
25terms and conditions as the Board may determine. The ordinance
26authorizing notes may provide for the exchange of such notes

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1which are fully registered, as to both principal and interest,
2with notes which are registerable as to principal only. All
3notes issued under this Section by the Board shall be sold at a
4price which may be at a premium or discount but such that the
5interest cost (excluding any redemption premium) to the Board
6of the proceeds of an issue of such notes, computed to stated
7maturity according to standard tables of bond values, shall not
8exceed that permitted in the Bond Authorization Act "An Act to
9authorize public corporations to issue bonds, other evidences
10of indebtedness and tax anticipation warrants subject to
11interest rate limitations set forth therein", approved May 26,
121970, as now or hereafter amended. Such notes shall be sold at
13such time or times as the Board shall determine. The notes may
14be sold either upon competitive bidding or by negotiated sale
15(without any requirement of publication of intention to
16negotiate the sale of such notes), as the Board shall determine
17by ordinance adopted with the affirmative votes of at least 4
18Directors. In case any officer whose signature appears on any
19notes or coupons authorized pursuant to this Section shall
20cease to be such officer before delivery of such notes, such
21signature shall nevertheless be valid and sufficient for all
22purposes, the same as if such officer had remained in office
23until such delivery. Neither the Directors of the Regional
24Transportation Authority, the Directors of the Authority nor
25any person executing any bonds or notes thereof shall be liable
26personally on any such bonds or notes or coupons by reason of

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1the issuance thereof.
2 (c) All notes of the Authority issued pursuant to this
3Section shall be general obligations of the Authority to which
4shall be pledged the full faith and credit of the Authority, as
5provided in this Section. Such notes shall be secured as
6provided in the authorizing ordinance, which may,
7notwithstanding any other provision of this Act, include in
8addition to any other security, a specific pledge or assignment
9of and lien on or security interest in any or all tax receipts
10of the Regional Transportation Authority allocated to the
11Authority and on any or all other revenues or moneys of the
12Authority from whatever source which may by law be utilized for
13debt service purposes and a specific pledge or assignment of
14and lien on or security interest in any funds or accounts
15established or provided for by the ordinance of the Board
16authorizing the issuance of such notes. Any such pledge,
17assignment, lien or security interest for the benefit of
18holders of notes of the Authority shall be valid and binding
19from the time the notes are issued without any physical
20delivery or further act, and shall be valid and binding as
21against and prior to the claims of all other parties having
22claims of any kind against the Authority or any other person
23irrespective of whether such other parties have notice of such
24pledge, assignment, lien or security interest. The obligations
25of the Authority incurred pursuant to this Section shall be
26superior to and have priority over any other obligations of the

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1Authority except for obligations under Section 12. The Board
2may provide in the ordinance authorizing the issuance of any
3notes issued pursuant to this Section for the creation of,
4deposits in, and regulation and disposition of sinking fund or
5reserve accounts relating to such notes. The ordinance
6authorizing the issuance of any notes pursuant to this Section
7may contain provisions as part of the contract with the holders
8of the notes, for the creation of a separate fund to provide
9for the payment of principal and interest on such notes and for
10the deposit in such fund from any or all the tax receipts of
11the Regional Transportation Authority allocated to the
12Authority and from any or all such other moneys or revenues of
13the Authority from whatever source which may by law be utilized
14for debt service purposes, all as provided in such ordinance,
15of amounts to meet the debt service requirements on such notes,
16including principal and interest, and any sinking fund or
17reserve fund account requirements as may be provided by such
18ordinance, and all expenses incident to or in connection with
19such fund and accounts or the payment of such notes. Such
20ordinance may also provide limitations on the issuance of
21additional notes of the Authority. No such notes of the
22Authority shall constitute a debt of the State of Illinois.
23 (d) The ordinance of the Board authorizing the issuance of
24any notes may provide additional security for such notes by
25providing for appointment of a corporate trustee (which may be
26any trust company or bank having the powers of a trust company

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1within the State) with respect to such notes. The ordinance
2shall prescribe the rights, duties and powers of the trustee to
3be exercised for the benefit of the Authority and the
4protection of the holders of such notes. The ordinance may
5provide for the trustee to hold in trust, invest and use
6amounts in funds and accounts created as provided by the
7ordinance with respect to the notes. The ordinance shall
8provide that amounts so paid to the trustee which are not
9required to be deposited, held or invested in funds and
10accounts created by the ordinance with respect to notes or used
11for paying notes to be paid by the trustee to the Authority.
12 (e) Any notes of the Authority issued pursuant to this
13Section shall constitute a contract between the Authority and
14the holders from time to time of such notes. In issuing any
15note, the Board may include in the ordinance authorizing such
16issue a covenant as part of the contract with the holders of
17the notes, that as long as such obligations are outstanding, it
18shall make such deposits, as provided in paragraph (c) of this
19Section. 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 Regional
22Transportation Authority, Comptroller of the State of Illinois
23and the Illinois Department of Revenue.
24 (f) The State of Illinois pledges to and agrees with the
25holders of the notes of the Authority issued pursuant to this
26Section that the State will not limit or alter the rights and

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1powers vested in the Authority by this Act or in the Regional
2Transportation Authority by the "Regional Transportation
3Authority Act" so as to impair the terms of any contract made
4by the Authority with such holders or in any way impair the
5rights and remedies of such holders until such notes, together
6with interest thereon, with interest on any unpaid installments
7of interest, and all costs and expenses in connection with any
8action or proceedings by or on behalf of such holders, are
9fully met and discharged. In addition, the State pledges to and
10agrees with the holders of the notes of the Authority issued
11pursuant to this Section that the State will not limit or alter
12the basis on which State funds are to be paid to the Authority
13as provided in the Regional Transportation Authority Act, or
14the use of such funds, so as to impair the terms of any such
15contract. The Board is authorized to include these pledges and
16agreements of the State in any contract with the holders of
17bonds or notes issued pursuant to this Section.
18 (g) The Board shall not at any time issue, sell or deliver
19any Interim Financing Notes pursuant to this Section which will
20cause it to have issued and outstanding at any time in excess
21of $40,000,000 of Working Cash Notes. Notes which are being
22paid or retired by such issuance, sale or delivery of notes,
23and notes for which sufficient funds have been deposited with
24the paying agency of such notes to provide for payment of
25principal and interest thereon or to provide for the redemption
26thereof, all pursuant to the ordinance authorizing the issuance

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1of such notes, shall not be considered to be outstanding for
2the purposes of this paragraph.
3 (h) The Board, subject to the terms of any agreements with
4noteholders as may then exist, shall have power, out of any
5funds available therefor, to purchase notes of the Authority
6which shall thereupon be cancelled.
7 (i) In addition to any other authority granted by law, the
8State Treasurer may, with the approval of the Governor, invest
9or reinvest, at a price not to exceed par, any State money in
10the State Treasury which is not needed for current expenditures
11due or about to become due in Interim Financing Notes. In the
12case of a default on an Interim Financing Note issued by the
13Chicago Transit Authority with which State money in the
14Treasury was invested, the Treasurer may, after giving notice
15to the Authority, certify to the Comptroller the amounts of the
16defaulted Interim Financing Note, in accordance with any
17applicable rules of the Comptroller, and the Comptroller must
18deduct and remit to the Treasury the certified amounts or a
19portion of those amounts from the following proportions of
20payments of State funds to the Authority:
21 (1) in the first year after default, one-third of the
22 total amount of any payments of State funds to the
23 Authority;
24 (2) in the second year after default, two-thirds of the
25 total amount of any payments of State funds to the
26 Authority; and

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1 (3) in the third year after default and for each year
2 thereafter until the total invested amount is repaid, the
3 total amount of any payments of State funds to the
4 Authority.
5(Source: P.A. 96-328, eff. 8-11-09; revised 9-22-16.)
6 Section 10. The Regional Transportation Authority Act is
7amended by changing Section 4.04 as follows:
8 (70 ILCS 3615/4.04) (from Ch. 111 2/3, par. 704.04)
9 Sec. 4.04. Issuance and Pledge of Bonds and Notes.
10 (a) The Authority shall have the continuing power to borrow
11money and to issue its negotiable bonds or notes as provided in
12this Section. Unless otherwise indicated in this Section, the
13term "notes" also includes bond anticipation notes, which are
14notes which by their terms provide for their payment from the
15proceeds of bonds thereafter to be issued. Bonds or notes of
16the Authority may be issued for any or all of the following
17purposes: to pay costs to the Authority or a Service Board of
18constructing or acquiring any public transportation facilities
19(including funds and rights relating thereto, as provided in
20Section 2.05 of this Act); to repay advances to the Authority
21or a Service Board made for such purposes; to pay other
22expenses of the Authority or a Service Board incident to or
23incurred in connection with such construction or acquisition;
24to provide funds for any transportation agency to pay principal

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1of or interest or redemption premium on any bonds or notes,
2whether as such amounts become due or by earlier redemption,
3issued prior to the date of this amendatory Act by such
4transportation agency to construct or acquire public
5transportation facilities or to provide funds to purchase such
6bonds or notes; and to provide funds for any transportation
7agency to construct or acquire any public transportation
8facilities, to repay advances made for such purposes, and to
9pay other expenses incident to or incurred in connection with
10such construction or acquisition; and to provide funds for
11payment of obligations, including the funding of reserves,
12under any self-insurance plan or joint self-insurance pool or
13entity.
14 In addition to any other borrowing as may be authorized by
15this Section, the Authority may issue its notes, from time to
16time, in anticipation of tax receipts of the Authority or of
17other revenues or receipts of the Authority, in order to
18provide money for the Authority or the Service Boards to cover
19any cash flow deficit which the Authority or a Service Board
20anticipates incurring. Any such notes are referred to in this
21Section as "Working Cash Notes". No Working Cash Notes shall be
22issued for a term of longer than 24 months. Proceeds of Working
23Cash Notes may be used to pay day to day operating expenses of
24the Authority or the Service Boards, consisting of wages,
25salaries and fringe benefits, professional and technical
26services (including legal, audit, engineering and other

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1consulting services), office rental, furniture, fixtures and
2equipment, insurance premiums, claims for self-insured amounts
3under insurance policies, public utility obligations for
4telephone, light, heat and similar items, travel expenses,
5office supplies, postage, dues, subscriptions, public hearings
6and information expenses, fuel purchases, and payments of
7grants and payments under purchase of service agreements for
8operations of transportation agencies, prior to the receipt by
9the Authority or a Service Board from time to time of funds for
10paying such expenses. In addition to any Working Cash Notes
11that the Board of the Authority may determine to issue, the
12Suburban Bus Board, the Commuter Rail Board or the Board of the
13Chicago Transit Authority may demand and direct that the
14Authority issue its Working Cash Notes in such amounts and
15having such maturities as the Service Board may determine.
16 Notwithstanding any other provision of this Act, any
17amounts necessary to pay principal of and interest on any
18Working Cash Notes issued at the demand and direction of a
19Service Board or any Working Cash Notes the proceeds of which
20were used for the direct benefit of a Service Board or any
21other Bonds or Notes of the Authority the proceeds of which
22were used for the direct benefit of a Service Board shall
23constitute a reduction of the amount of any other funds
24provided by the Authority to that Service Board. The Authority
25shall, after deducting any costs of issuance, tender the net
26proceeds of any Working Cash Notes issued at the demand and

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1direction of a Service Board to such Service Board as soon as
2may be practicable after the proceeds are received. The
3Authority may also issue notes or bonds to pay, refund or
4redeem any of its notes and bonds, including to pay redemption
5premiums or accrued interest on such bonds or notes being
6renewed, paid or refunded, and other costs in connection
7therewith. The Authority may also utilize the proceeds of any
8such bonds or notes to pay the legal, financial, administrative
9and other expenses of such authorization, issuance, sale or
10delivery of bonds or notes or to provide or increase a debt
11service reserve fund with respect to any or all of its bonds or
12notes. The Authority may also issue and deliver its bonds or
13notes in exchange for any public transportation facilities,
14(including funds and rights relating thereto, as provided in
15Section 2.05 of this Act) or in exchange for outstanding bonds
16or notes of the Authority, including any accrued interest or
17redemption premium thereon, without advertising or submitting
18such notes or bonds for public bidding.
19 (b) The ordinance providing for the issuance of any such
20bonds or notes shall fix the date or dates of maturity, the
21dates on which interest is payable, any sinking fund account or
22reserve fund account provisions and all other details of such
23bonds or notes and may provide for such covenants or agreements
24necessary or desirable with regard to the issue, sale and
25security of such bonds or notes. The rate or rates of interest
26on its bonds or notes may be fixed or variable and the

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1Authority shall determine or provide for the determination of
2the rate or rates of interest of its bonds or notes issued
3under this Act in an ordinance adopted by the Authority prior
4to the issuance thereof, none of which rates of interest shall
5exceed that permitted in the Bond Authorization Act. Interest
6may be payable at such times as are provided for by the Board.
7Bonds and notes issued under this Section may be issued as
8serial or term obligations, shall be of such denomination or
9denominations and form, including interest coupons to be
10attached thereto, be executed in such manner, shall be payable
11at such place or places and bear such date as the Authority
12shall fix by the ordinance authorizing such bond or note and
13shall mature at such time or times, within a period not to
14exceed forty years from the date of issue, and may be
15redeemable prior to maturity with or without premium, at the
16option of the Authority, upon such terms and conditions as the
17Authority shall fix by the ordinance authorizing the issuance
18of such bonds or notes. No bond anticipation note or any
19renewal thereof shall mature at any time or times exceeding 5
20years from the date of the first issuance of such note. The
21Authority may provide for the registration of bonds or notes in
22the name of the owner as to the principal alone or as to both
23principal and interest, upon such terms and conditions as the
24Authority may determine. The ordinance authorizing bonds or
25notes may provide for the exchange of such bonds or notes which
26are fully registered, as to both principal and interest, with

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1bonds or notes which are registerable as to principal only. All
2bonds or notes issued under this Section by the Authority other
3than those issued in exchange for property or for bonds or
4notes of the Authority shall be sold at a price which may be at
5a premium or discount but such that the interest cost
6(excluding any redemption premium) to the Authority of the
7proceeds of an issue of such bonds or notes, computed to stated
8maturity according to standard tables of bond values, shall not
9exceed that permitted in the Bond Authorization Act. The
10Authority shall notify the Governor's Office of Management and
11Budget and the State Comptroller at least 30 days before any
12bond sale and shall file with the Governor's Office of
13Management and Budget and the State Comptroller a certified
14copy of any ordinance authorizing the issuance of bonds at or
15before the issuance of the bonds. After December 31, 1994, any
16such bonds or notes shall be sold to the highest and best
17bidder on sealed bids as the Authority shall deem. As such
18bonds or notes are to be sold the Authority shall advertise for
19proposals to purchase the bonds or notes which advertisement
20shall be published at least once in a daily newspaper of
21general circulation published in the metropolitan region at
22least 10 days before the time set for the submission of bids.
23The Authority shall have the right to reject any or all bids.
24Notwithstanding any other provisions of this Section, Working
25Cash Notes or bonds or notes to provide funds for
26self-insurance or a joint self-insurance pool or entity may be

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1sold either upon competitive bidding or by negotiated sale
2(without any requirement of publication of intention to
3negotiate the sale of such Notes), as the Board shall determine
4by ordinance adopted with the affirmative votes of at least 9
5Directors. In case any officer whose signature appears on any
6bonds, notes or coupons authorized pursuant to this Section
7shall cease to be such officer before delivery of such bonds or
8notes, such signature shall nevertheless be valid and
9sufficient for all purposes, the same as if such officer had
10remained in office until such delivery. Neither the Directors
11of the Authority nor any person executing any bonds or notes
12thereof shall be liable personally on any such bonds or notes
13or coupons by reason of the issuance thereof.
14 (c) All bonds or notes of the Authority issued pursuant to
15this Section shall be general obligations of the Authority to
16which shall be pledged the full faith and credit of the
17Authority, as provided in this Section. Such bonds or notes
18shall be secured as provided in the authorizing ordinance,
19which may, notwithstanding any other provision of this Act,
20include in addition to any other security, a specific pledge or
21assignment of and lien on or security interest in any or all
22tax receipts of the Authority and on any or all other revenues
23or moneys of the Authority from whatever source, which may by
24law be utilized for debt service purposes and a specific pledge
25or assignment of and lien on or security interest in any funds
26or accounts established or provided for by the ordinance of the

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

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1requirements on such bonds or notes, including principal and
2interest, and any sinking fund or reserve fund account
3requirements as may be provided by such ordinance, and all
4expenses incident to or in connection with such fund and
5accounts or the payment of such bonds or notes. Such ordinance
6may also provide limitations on the issuance of additional
7bonds or notes of the Authority. No such bonds or notes of the
8Authority shall constitute a debt of the State of Illinois.
9Nothing in this Act shall be construed to enable the Authority
10to impose any ad valorem tax on property.
11 (d) The ordinance of the Authority authorizing the issuance
12of any bonds or notes may provide additional security for such
13bonds or notes by providing for appointment of a corporate
14trustee (which may be any trust company or bank having the
15powers of a trust company within the state) with respect to
16such bonds or notes. The ordinance shall prescribe the rights,
17duties and powers of the trustee to be exercised for the
18benefit of the Authority and the protection of the holders of
19such bonds or notes. The ordinance may provide for the trustee
20to hold in trust, invest and use amounts in funds and accounts
21created as provided by the ordinance with respect to the bonds
22or notes. The ordinance may provide for the assignment and
23direct payment to the trustee of any or all amounts produced
24from the sources provided in Section 4.03 and Section 4.09 of
25this Act and provided in Section 6z-17 of "An Act in relation
26to State finance", approved June 10, 1919, as amended. Upon

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1receipt of notice of any such assignment, the Department of
2Revenue and the Comptroller of the State of Illinois shall
3thereafter, notwithstanding the provisions of Section 4.03 and
4Section 4.09 of this Act and Section 6z-17 of "An Act in
5relation to State finance", approved June 10, 1919, as amended,
6provide for such assigned amounts to be paid directly to the
7trustee instead of the Authority, all in accordance with the
8terms of the ordinance making the assignment. The ordinance
9shall provide that amounts so paid to the trustee which are not
10required to be deposited, held or invested in funds and
11accounts created by the ordinance with respect to bonds or
12notes or used for paying bonds or notes to be paid by the
13trustee to the Authority.
14 (e) Any bonds or notes of the Authority issued pursuant to
15this Section shall constitute a contract between the Authority
16and the holders from time to time of such bonds or notes. In
17issuing any bond or note, the Authority may include in the
18ordinance authorizing such issue a covenant as part of the
19contract with the holders of the bonds or notes, that as long
20as such obligations are outstanding, it shall make such
21deposits, as provided in paragraph (c) of this Section. It may
22also so covenant that it shall impose and continue to impose
23taxes, as provided in Section 4.03 of this Act and in addition
24thereto as subsequently authorized by law, sufficient to make
25such deposits and pay the principal and interest and to meet
26other debt service requirements of such bonds or notes as they

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1become due. A certified copy of the ordinance authorizing the
2issuance of any such obligations shall be filed at or prior to
3the issuance of such obligations with the Comptroller of the
4State of Illinois and the Illinois Department of Revenue.
5 (f) The State of Illinois pledges to and agrees with the
6holders of the bonds and notes of the Authority issued pursuant
7to this Section that the State will not limit or alter the
8rights and powers vested in the Authority by this Act so as to
9impair the terms of any contract made by the Authority with
10such holders or in any way impair the rights and remedies of
11such holders until such bonds and notes, together with interest
12thereon, with interest on any unpaid installments of interest,
13and all costs and expenses in connection with any action or
14proceedings by or on behalf of such holders, are fully met and
15discharged. In addition, the State pledges to and agrees with
16the holders of the bonds and notes of the Authority issued
17pursuant to this Section that the State will not limit or alter
18the basis on which State funds are to be paid to the Authority
19as provided in this Act, or the use of such funds, so as to
20impair the terms of any such contract. The Authority is
21authorized to include these pledges and agreements of the State
22in any contract with the holders of bonds or notes issued
23pursuant to this Section.
24 (g)(1) Except as provided in subdivisions (g)(2) and (g)(3)
25of Section 4.04 of this Act, the Authority shall not at any
26time issue, sell or deliver any bonds or notes (other than

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1Working Cash Notes and lines of credit) pursuant to this
2Section 4.04 which will cause it to have issued and outstanding
3at any time in excess of $800,000,000 of such bonds and notes
4(other than Working Cash Notes and lines of credit). The
5Authority shall not issue, sell, or deliver any Working Cash
6Notes or establish a line of credit pursuant to this Section
7that will cause it to have issued and outstanding at any time
8in excess of $100,000,000. However, the Authority may issue,
9sell, and deliver additional Working Cash Notes or establish a
10line of credit before July 1, 2020 2018 that are over and above
11and in addition to the $100,000,000 authorization such that the
12outstanding amount of these additional Working Cash Notes and
13lines of credit do does not exceed at any time $300,000,000.
14Bonds or notes which are being paid or retired by such
15issuance, sale or delivery of bonds or notes, and bonds or
16notes for which sufficient funds have been deposited with the
17paying agency of such bonds or notes to provide for payment of
18principal and interest thereon or to provide for the redemption
19thereof, all pursuant to the ordinance authorizing the issuance
20of such bonds or notes, shall not be considered to be
21outstanding for the purposes of this subsection.
22 (2) In addition to the authority provided by paragraphs (1)
23and (3), the Authority is authorized to issue, sell and deliver
24bonds or notes for Strategic Capital Improvement Projects
25approved pursuant to Section 4.13 as follows:
26 $100,000,000 is authorized to be issued on or after

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1 January 1, 1990;
2 an additional $100,000,000 is authorized to be issued
3 on or after January 1, 1991;
4 an additional $100,000,000 is authorized to be issued
5 on or after January 1, 1992;
6 an additional $100,000,000 is authorized to be issued
7 on or after January 1, 1993;
8 an additional $100,000,000 is authorized to be issued
9 on or after January 1, 1994; and
10 the aggregate total authorization of bonds and notes
11 for Strategic Capital Improvement Projects as of January 1,
12 1994, shall be $500,000,000.
13 The Authority is also authorized to issue, sell, and
14deliver bonds or notes in such amounts as are necessary to
15provide for the refunding or advance refunding of bonds or
16notes issued for Strategic Capital Improvement Projects under
17this subdivision (g)(2), provided that no such refunding bond
18or note shall mature later than the final maturity date of the
19series of bonds or notes being refunded, and provided further
20that the debt service requirements for such refunding bonds or
21notes in the current or any future fiscal year shall not exceed
22the debt service requirements for that year on the refunded
23bonds or notes.
24 (3) In addition to the authority provided by paragraphs (1)
25and (2), the Authority is authorized to issue, sell, and
26deliver bonds or notes for Strategic Capital Improvement

HB3004 Enrolled- 23 -LRB100 08469 AWJ 18587 b
1Projects approved pursuant to Section 4.13 as follows:
2 $260,000,000 is authorized to be issued on or after
3 January 1, 2000;
4 an additional $260,000,000 is authorized to be issued
5 on or after January 1, 2001;
6 an additional $260,000,000 is authorized to be issued
7 on or after January 1, 2002;
8 an additional $260,000,000 is authorized to be issued
9 on or after January 1, 2003;
10 an additional $260,000,000 is authorized to be issued
11 on or after January 1, 2004; and
12 the aggregate total authorization of bonds and notes
13 for Strategic Capital Improvement Projects pursuant to
14 this paragraph (3) as of January 1, 2004 shall be
15 $1,300,000,000.
16 The Authority is also authorized to issue, sell, and
17deliver bonds or notes in such amounts as are necessary to
18provide for the refunding or advance refunding of bonds or
19notes issued for Strategic Capital Improvement projects under
20this subdivision (g)(3), provided that no such refunding bond
21or note shall mature later than the final maturity date of the
22series of bonds or notes being refunded, and provided further
23that the debt service requirements for such refunding bonds or
24notes in the current or any future fiscal year shall not exceed
25the debt service requirements for that year on the refunded
26bonds or notes.

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1 (h) The Authority, subject to the terms of any agreements
2with noteholders or bond holders as may then exist, shall have
3power, out of any funds available therefor, to purchase notes
4or bonds of the Authority, which shall thereupon be cancelled.
5 (i) In addition to any other authority granted by law, the
6State Treasurer may, with the approval of the Governor, invest
7or reinvest, at a price not to exceed par, any State money in
8the State Treasury which is not needed for current expenditures
9due or about to become due in Working Cash Notes. In the case
10of a default on a Working Cash Note issued by the Regional
11Transportation Authority with which State money in the Treasury
12was invested, the Treasurer may, after giving notice to the
13Authority, certify to the Comptroller the amounts of the
14defaulted Working Cash Note, in accordance with any applicable
15rules of the Comptroller, and the Comptroller must deduct and
16remit to the Treasury the certified amounts or a portion of
17those amounts from the following proportions of payments of
18State funds to the Authority:
19 (1) in the first year after default, one-third of the
20 total amount of any payments of State funds to the
21 Authority;
22 (2) in the second year after default, two-thirds of the
23 total amount of any payments of State funds to the
24 Authority; and
25 (3) in the third year after default and for each year
26 thereafter until the total invested amount is repaid, the

HB3004 Enrolled- 25 -LRB100 08469 AWJ 18587 b
1 total amount of any payments of State funds to the
2 Authority.
3 (j) The Authority may establish a line of credit with a
4bank or other financial institution as may be evidenced by the
5issuance of notes or other obligations, secured by and payable
6from all tax receipts of the Authority and any or all other
7revenues or moneys of the Authority, in an amount not to exceed
8the limitations set forth in paragraph (1) of subsection (g).
9Money borrowed under this subsection (j) shall be used to
10provide money for the Authority or the Service Boards to cover
11any cash flow deficit that the Authority or a Service Board
12anticipates incurring and shall be repaid within 24 months.
13 Before establishing a line of credit under this subsection
14(j), the Authority shall authorize the line of credit by
15ordinance. The ordinance shall set forth facts demonstrating
16the need for the line of credit, state the amount to be
17borrowed, establish a maximum interest rate limit not to exceed
18the maximum rate authorized by the Bond Authorization Act, and
19provide a date by which the borrowed funds shall be repaid. The
20ordinance shall authorize and direct the relevant officials to
21make arrangements to set apart and hold, as applicable, the
22moneys that will be used to repay the borrowing. In addition,
23the ordinance may authorize the relevant officials to make
24partial repayments on the line of credit as the moneys become
25available and may contain any other terms, restrictions, or
26limitations desirable or necessary to give effect to this

HB3004 Enrolled- 26 -LRB100 08469 AWJ 18587 b
1subsection (j).
2 The Authority shall notify the Governor's Office of
3Management and Budget and the State Comptroller at least 30
4days before establishing a line of credit and shall file with
5the Governor's Office of Management and Budget and the State
6Comptroller a certified copy of any ordinance authorizing the
7establishment of a line of credit upon or before establishing
8the line of credit.
9 Moneys borrowed under a line of credit pursuant to this
10subsection (j) are general obligations of the Authority that
11are secured by the full faith and credit of the Authority.
12(Source: P.A. 98-392, eff. 8-16-13; 99-238, eff. 8-3-15.)
13 Section 99. Effective date. This Act takes effect upon
14becoming law.
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