Bill Text: IL HB3005 | 2017-2018 | 100th General Assembly | Engrossed


Bill Title: Amends the Deposit of State Moneys Act. Provides that the State Treasurer may, with the approval of the Governor, invest or reinvest (regardless of whether the price exceeds par) any State money in the treasury that is not needed for current expenditures due or about to become due, or any money in the State Treasury that has been set aside and held for the payment of the principal of and interest on any State bonds, in bonds issued by counties or municipal corporations of this State. Effective immediately.

Spectrum: Partisan Bill (Democrat 2-0)

Status: (Engrossed) 2017-04-06 - Referred to Assignments [HB3005 Detail]

Download: Illinois-2017-HB3005-Engrossed.html



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1 AN ACT concerning State government.
2 Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
4 Section 5. The Deposit of State Moneys Act is amended by
5changing Section 22.5 as follows:
6 (15 ILCS 520/22.5) (from Ch. 130, par. 41a)
7 (For force and effect of certain provisions, see Section 90
8of P.A. 94-79)
9 Sec. 22.5. Permitted investments. The State Treasurer may,
10with the approval of the Governor, invest and reinvest any
11State money in the treasury which is not needed for current
12expenditures due or about to become due, in obligations of the
13United States government or its agencies or of National
14Mortgage Associations established by or under the National
15Housing Act, 1201 U.S.C. 1701 et seq., or in mortgage
16participation certificates representing undivided interests in
17specified, first-lien conventional residential Illinois
18mortgages that are underwritten, insured, guaranteed, or
19purchased by the Federal Home Loan Mortgage Corporation or in
20Affordable Housing Program Trust Fund Bonds or Notes as defined
21in and issued pursuant to the Illinois Housing Development Act.
22All such obligations shall be considered as cash and may be
23delivered over as cash by a State Treasurer to his successor.

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1 The State Treasurer may, with the approval of the Governor,
2purchase any state bonds with any money in the State Treasury
3that has been set aside and held for the payment of the
4principal of and interest on the bonds. The bonds shall be
5considered as cash and may be delivered over as cash by the
6State Treasurer to his successor.
7 The State Treasurer may, with the approval of the Governor,
8invest or reinvest any State money in the treasury that is not
9needed for current expenditure due or about to become due, or
10any money in the State Treasury that has been set aside and
11held for the payment of the principal of and the interest on
12any State bonds, in shares, withdrawable accounts, and
13investment certificates of savings and building and loan
14associations, incorporated under the laws of this State or any
15other state or under the laws of the United States; provided,
16however, that investments may be made only in those savings and
17loan or building and loan associations the shares and
18withdrawable accounts or other forms of investment securities
19of which are insured by the Federal Deposit Insurance
20Corporation.
21 The State Treasurer may not invest State money in any
22savings and loan or building and loan association unless a
23commitment by the savings and loan (or building and loan)
24association, executed by the president or chief executive
25officer of that association, is submitted in the following
26form:

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1 The .................. Savings and Loan (or Building
2 and Loan) Association pledges not to reject arbitrarily
3 mortgage loans for residential properties within any
4 specific part of the community served by the savings and
5 loan (or building and loan) association because of the
6 location of the property. The savings and loan (or building
7 and loan) association also pledges to make loans available
8 on low and moderate income residential property throughout
9 the community within the limits of its legal restrictions
10 and prudent financial practices.
11 The State Treasurer may, with the approval of the Governor,
12invest or reinvest, at a price not to exceed par, any State
13money in the treasury that is not needed for current
14expenditures due or about to become due, or any money in the
15State Treasury that has been set aside and held for the payment
16of the principal of and interest on any State bonds, in bonds
17issued by counties or municipal corporations of the State of
18Illinois. In the case of a default on a bond issued by a
19municipal corporation or county of the State of Illinois with
20which State money in the Treasury was invested, the Treasurer
21may, after giving notice to the municipal corporation or
22county, certify to the Comptroller the amounts of the defaulted
23bonds, in accordance with any applicable rules of the
24Comptroller, and the Comptroller must deduct and remit to the
25Treasury the certified amounts or a portion of those amounts
26from the following proportions of payments of State funds to

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1the municipality or county:
2 (1) in the first year after default, one-third of the
3 total amount of any payments of State funds to the
4 municipal corporation or county;
5 (2) in the second year after default, two-thirds of the
6 total amount of any payments of State funds to the
7 municipal corporation or county; and
8 (3) in the third year after default and for each year
9 thereafter until the total invested amount is repaid, the
10 total amount of any payments of State funds to the
11 municipal corporation or county.
12 The State Treasurer may, with the approval of the Governor,
13invest or reinvest any State money in the Treasury which is not
14needed for current expenditure, due or about to become due, or
15any money in the State Treasury which has been set aside and
16held for the payment of the principal of and the interest on
17any State bonds, in participations in loans, the principal of
18which participation is fully guaranteed by an agency or
19instrumentality of the United States government; provided,
20however, that such loan participations are represented by
21certificates issued only by banks which are incorporated under
22the laws of this State or any other state or under the laws of
23the United States, and such banks, but not the loan
24participation certificates, are insured by the Federal Deposit
25Insurance Corporation.
26 The State Treasurer may, with the approval of the Governor,

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1invest or reinvest any State money in the Treasury that is not
2needed for current expenditure, due or about to become due, or
3any money in the State Treasury that has been set aside and
4held for the payment of the principal of and the interest on
5any State bonds, in any of the following:
6 (1) Bonds, notes, certificates of indebtedness,
7 Treasury bills, or other securities now or hereafter issued
8 that are guaranteed by the full faith and credit of the
9 United States of America as to principal and interest.
10 (2) Bonds, notes, debentures, or other similar
11 obligations of the United States of America, its agencies,
12 and instrumentalities.
13 (2.5) Bonds, notes, debentures, or other similar
14 obligations of a foreign government, other than the
15 Republic of the Sudan, that are guaranteed by the full
16 faith and credit of that government as to principal and
17 interest, but only if the foreign government has not
18 defaulted and has met its payment obligations in a timely
19 manner on all similar obligations for a period of at least
20 25 years immediately before the time of acquiring those
21 obligations.
22 (3) Interest-bearing savings accounts,
23 interest-bearing certificates of deposit, interest-bearing
24 time deposits, or any other investments constituting
25 direct obligations of any bank as defined by the Illinois
26 Banking Act.

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1 (4) Interest-bearing accounts, certificates of
2 deposit, or any other investments constituting direct
3 obligations of any savings and loan associations
4 incorporated under the laws of this State or any other
5 state or under the laws of the United States.
6 (5) Dividend-bearing share accounts, share certificate
7 accounts, or class of share accounts of a credit union
8 chartered under the laws of this State or the laws of the
9 United States; provided, however, the principal office of
10 the credit union must be located within the State of
11 Illinois.
12 (6) Bankers' acceptances of banks whose senior
13 obligations are rated in the top 2 rating categories by 2
14 national rating agencies and maintain that rating during
15 the term of the investment.
16 (7) Short-term obligations of either corporations or
17 limited liability companies organized in the United States
18 with assets exceeding $500,000,000 if (i) the obligations
19 are rated at the time of purchase at one of the 3 highest
20 classifications established by at least 2 standard rating
21 services and mature not later than 270 days from the date
22 of purchase, (ii) the purchases do not exceed 10% of the
23 corporation's or the limited liability company's
24 outstanding obligations, (iii) no more than one-third of
25 the public agency's funds are invested in short-term
26 obligations of either corporations or limited liability

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1 companies, and (iv) the corporation or the limited
2 liability company has not been placed on the list of
3 restricted companies by the Illinois Investment Policy
4 Board under Section 1-110.16 of the Illinois Pension Code.
5 (7.5) Obligations of either corporations or limited
6 liability companies organized in the United States, that
7 have a significant presence in this State, with assets
8 exceeding $500,000,000 if: (i) the obligations are rated at
9 the time of purchase at one of the 3 highest
10 classifications established by at least 2 standard rating
11 services and mature more than 270 days, but less than 5
12 years, from the date of purchase; (ii) the purchases do not
13 exceed 10% of the corporation's or the limited liability
14 company's outstanding obligations; (iii) no more than 5% of
15 the public agency's funds are invested in such obligations
16 of corporations or limited liability companies; and (iv)
17 the corporation or the limited liability company has not
18 been placed on the list of restricted companies by the
19 Illinois Investment Policy Board under Section 1-110.16 of
20 the Illinois Pension Code. The authorization of the
21 Treasurer to invest in new obligations under this paragraph
22 shall expire on June 30, 2019.
23 (8) Money market mutual funds registered under the
24 Investment Company Act of 1940, provided that the portfolio
25 of the money market mutual fund is limited to obligations
26 described in this Section and to agreements to repurchase

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1 such obligations.
2 (9) The Public Treasurers' Investment Pool created
3 under Section 17 of the State Treasurer Act or in a fund
4 managed, operated, and administered by a bank.
5 (10) Repurchase agreements of government securities
6 having the meaning set out in the Government Securities Act
7 of 1986, as now or hereafter amended or succeeded, subject
8 to the provisions of that Act and the regulations issued
9 thereunder.
10 (11) Investments made in accordance with the
11 Technology Development Act.
12 For purposes of this Section, "agencies" of the United
13States Government includes:
14 (i) the federal land banks, federal intermediate
15 credit banks, banks for cooperatives, federal farm credit
16 banks, or any other entity authorized to issue debt
17 obligations under the Farm Credit Act of 1971 (12 U.S.C.
18 2001 et seq.) and Acts amendatory thereto;
19 (ii) the federal home loan banks and the federal home
20 loan mortgage corporation;
21 (iii) the Commodity Credit Corporation; and
22 (iv) any other agency created by Act of Congress.
23 The Treasurer may, with the approval of the Governor, lend
24any securities acquired under this Act. However, securities may
25be lent under this Section only in accordance with Federal
26Financial Institution Examination Council guidelines and only

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1if the securities are collateralized at a level sufficient to
2assure the safety of the securities, taking into account market
3value fluctuation. The securities may be collateralized by cash
4or collateral acceptable under Sections 11 and 11.1.
5(Source: P.A. 99-856, eff. 8-19-16.)
6 Section 10. The Metropolitan Transit Authority Act is
7amended by changing Section 12a as follows:
8 (70 ILCS 3605/12a) (from Ch. 111 2/3, par. 312a)
9 Sec. 12a. (a) In addition to other powers provided in
10Section 12b, the Authority may issue its notes from time to
11time, in anticipation of tax receipts of the Regional
12Transportation Authority allocated to the Authority or of other
13revenues or receipts of the Authority, in order to provide
14money for the Authority to cover any cash flow deficit which
15the Authority anticipates incurring. Provided, however, that
16no such notes may be issued unless the annual cost thereof is
17incorporated in a budget or revised budget of the Authority
18which has been approved by the Regional Transportation
19Authority. Any such notes are referred to as "Working Cash
20Notes". Provided further that, the board shall not issue and
21have outstanding or demand and direct that the Board of the
22Regional Transportation Authority issue and have outstanding
23more than an aggregate of $40,000,000 in Working Cash Notes. No
24Working Cash Notes shall be issued for a term of longer than 18

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

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1may provide for such covenants or agreements necessary or
2desirable with regard to the issue, sale and security of such
3notes. The Authority shall determine and fix the rate or rates
4of interest of its notes issued under this Act in an ordinance
5adopted by the Board prior to the issuance thereof, none of
6which rates of interest shall exceed that permitted in the Bond
7Authorization Act "An Act to authorize public corporations to
8issue bonds, other evidences of indebtedness and tax
9anticipation warrants subject to interest rate limitations set
10forth therein", approved May 26, 1970, as now or hereafter
11amended. Interest may be payable annually or semi-annually, or
12at such other times as determined by the Board. Notes issued
13under this Section may be issued as serial or term obligations,
14shall be of such denomination or denominations and form,
15including interest coupons to be attached thereto, be executed
16in such manner, shall be payable at such place or places and
17bear such date as the Board shall fix by the ordinance
18authorizing such note and shall mature at such time or times,
19within a period not to exceed 18 months from the date of issue,
20and may be redeemable prior to maturity with or without
21premium, at the option of the Board, upon such terms and
22conditions as the Board shall fix by the ordinance authorizing
23the issuance of such notes. The Board may provide for the
24registration of notes in the name of the owner as to the
25principal alone or as to both principal and interest, upon such
26terms and conditions as the Board may determine. The ordinance

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1authorizing notes may provide for the exchange of such notes
2which are fully registered, as to both principal and interest,
3with notes which are registerable as to principal only. All
4notes issued under this Section by the Board shall be sold at a
5price which may be at a premium or discount but such that the
6interest cost (excluding any redemption premium) to the Board
7of the proceeds of an issue of such notes, computed to stated
8maturity according to standard tables of bond values, shall not
9exceed that permitted in the Bond Authorization Act "An Act to
10authorize public corporations to issue bonds, other evidences
11of indebtedness and tax anticipation warrants subject to
12interest rate limitations set forth therein", approved May 26,
131970, as now or hereafter amended. Such notes shall be sold at
14such time or times as the Board shall determine. The notes may
15be sold either upon competitive bidding or by negotiated sale
16(without any requirement of publication of intention to
17negotiate the sale of such notes), as the Board shall determine
18by ordinance adopted with the affirmative votes of at least 4
19Directors. In case any officer whose signature appears on any
20notes or coupons authorized pursuant to this Section shall
21cease to be such officer before delivery of such notes, such
22signature shall nevertheless be valid and sufficient for all
23purposes, the same as if such officer had remained in office
24until such delivery. Neither the Directors of the Regional
25Transportation Authority, the Directors of the Authority nor
26any person executing any bonds or notes thereof shall be liable

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

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

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1any trust company or bank having the powers of a trust company
2within the State) with respect to such notes. The ordinance
3shall prescribe the rights, duties and powers of the trustee to
4be exercised for the benefit of the Authority and the
5protection of the holders of such notes. The ordinance may
6provide for the trustee to hold in trust, invest and use
7amounts in funds and accounts created as provided by the
8ordinance with respect to the notes. The ordinance shall
9provide 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 notes or used
12for paying notes to be paid by the trustee to the Authority.
13 (e) Any notes of the Authority issued pursuant to this
14Section shall constitute a contract between the Authority and
15the holders from time to time of such notes. In issuing any
16note, the Board may include in the ordinance authorizing such
17issue a covenant as part of the contract with the holders of
18the notes, that as long as such obligations are outstanding, it
19shall make such deposits, as provided in paragraph (c) of this
20Section. A certified copy of the ordinance authorizing the
21issuance of any such obligations shall be filed at or prior to
22the issuance of such obligations with the Regional
23Transportation Authority, Comptroller of the State of Illinois
24and the Illinois Department of Revenue.
25 (f) The State of Illinois pledges to and agrees with the
26holders of the notes of the Authority issued pursuant to this

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

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

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

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

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

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

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

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

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

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

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

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

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

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1time issue, sell or deliver any bonds or notes (other than
2Working Cash Notes) pursuant to this Section 4.04 which will
3cause it to have issued and outstanding at any time in excess
4of $800,000,000 of such bonds and notes (other than Working
5Cash Notes). The Authority shall not issue, sell, or deliver
6any Working Cash Notes pursuant to this Section that will cause
7it to have issued and outstanding at any time in excess of
8$100,000,000. However, the Authority may issue, sell, and
9deliver additional Working Cash Notes before July 1, 2018 that
10are over and above and in addition to the $100,000,000
11authorization such that the outstanding amount of these
12additional Working Cash Notes does not exceed at any time
13$300,000,000. Bonds or notes which are being paid or retired by
14such issuance, sale or delivery of bonds or notes, and bonds or
15notes for which sufficient funds have been deposited with the
16paying agency of such bonds or 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 bonds or notes, shall not be considered to be
20outstanding for the purposes of this subsection.
21 (2) In addition to the authority provided by paragraphs (1)
22and (3), the Authority is authorized to issue, sell and deliver
23bonds or notes for Strategic Capital Improvement Projects
24approved pursuant to Section 4.13 as follows:
25 $100,000,000 is authorized to be issued on or after
26 January 1, 1990;

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1 an additional $100,000,000 is authorized to be issued
2 on or after January 1, 1991;
3 an additional $100,000,000 is authorized to be issued
4 on or after January 1, 1992;
5 an additional $100,000,000 is authorized to be issued
6 on or after January 1, 1993;
7 an additional $100,000,000 is authorized to be issued
8 on or after January 1, 1994; and
9 the aggregate total authorization of bonds and notes
10 for Strategic Capital Improvement Projects as of January 1,
11 1994, shall be $500,000,000.
12 The Authority is also authorized to issue, sell, and
13deliver bonds or notes in such amounts as are necessary to
14provide for the refunding or advance refunding of bonds or
15notes issued for Strategic Capital Improvement Projects under
16this subdivision (g)(2), provided that no such refunding bond
17or note shall mature later than the final maturity date of the
18series of bonds or notes being refunded, and provided further
19that the debt service requirements for such refunding bonds or
20notes in the current or any future fiscal year shall not exceed
21the debt service requirements for that year on the refunded
22bonds or notes.
23 (3) In addition to the authority provided by paragraphs (1)
24and (2), the Authority is authorized to issue, sell, and
25deliver bonds or notes for Strategic Capital Improvement
26Projects approved pursuant to Section 4.13 as follows:

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

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

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1 Authority.
2(Source: P.A. 98-392, eff. 8-16-13; 99-238, eff. 8-3-15.)
3 Section 99. Effective date. This Act takes effect upon
4becoming law.
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