Bill Text: IL SB2005 | 2019-2020 | 101st General Assembly | Introduced
Bill Title: Amends the Metropolitan Transit Authority Act. Makes a technical change in a Section concerning the short title.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Failed) 2021-01-13 - Session Sine Die [SB2005 Detail]
Download: Illinois-2019-SB2005-Introduced.html
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1 | AN ACT concerning local government.
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2 | Be it enacted by the People of the State of Illinois,
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3 | represented in the General Assembly:
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4 | Section 5. The Metropolitan Transit Authority Act is | ||||||||||||||||||||||||||
5 | amended by changing Section 12a as follows:
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6 | (70 ILCS 3605/12a) (from Ch. 111 2/3, par. 312a)
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7 | Sec. 12a.
(a) In addition to other powers provided in | ||||||||||||||||||||||||||
8 | Section 12b,
the Authority may issue its notes from time to | ||||||||||||||||||||||||||
9 | time, in anticipation of
tax receipts of the Regional | ||||||||||||||||||||||||||
10 | Transportation Authority allocated to the Authority
or of other | ||||||||||||||||||||||||||
11 | revenues or receipts of the Authority, in order to provide | ||||||||||||||||||||||||||
12 | money
for the Authority to cover any cash flow deficit which | ||||||||||||||||||||||||||
13 | the Authority anticipates
incurring. Provided, however, that | ||||||||||||||||||||||||||
14 | no such notes may be issued unless the
annual cost thereof is | ||||||||||||||||||||||||||
15 | incorporated in a budget or revised budget of the
Authority | ||||||||||||||||||||||||||
16 | which has been approved by the Regional Transportation | ||||||||||||||||||||||||||
17 | Authority.
Any such notes are referred to as "Working Cash | ||||||||||||||||||||||||||
18 | Notes".
Provided further that, the board shall not issue and | ||||||||||||||||||||||||||
19 | have outstanding or
demand and direct that the Board of the | ||||||||||||||||||||||||||
20 | Regional Transportation Authority
issue and have outstanding | ||||||||||||||||||||||||||
21 | more than an aggregate of $40,000,000 in Working Cash Notes.
No | ||||||||||||||||||||||||||
22 | Working Cash
Notes shall be issued for a term of longer than 18 | ||||||||||||||||||||||||||
23 | months. Proceeds of Working
Cash Notes may be used to pay day |
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1 | to day operating expenses of the Authority,
consisting of | ||||||
2 | wages, salaries and fringe benefits, professional and | ||||||
3 | technical
services (including legal, audit, engineering and | ||||||
4 | other consulting services),
office rental, furniture, fixtures | ||||||
5 | and equipment, insurance premiums, claims
for self-insured | ||||||
6 | amounts under insurance policies, public utility obligations
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7 | for telephone, light, heat and similar items, travel expenses,
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8 | office supplies, postage,
dues, subscriptions, public hearings | ||||||
9 | and information expenses, fuel purchases,
and payments of | ||||||
10 | grants and payments under purchase of service agreements
for | ||||||
11 | operations of transportation agencies, prior to the receipt by | ||||||
12 | the Authority
from time to time of funds for paying such | ||||||
13 | expenses. Proceeds of the Working
Cash Notes shall not be used | ||||||
14 | (i) to increase or provide a debt service
reserve fund for any | ||||||
15 | bonds or notes other than Working Cash Notes of the
same | ||||||
16 | Series, or (ii) to pay principal of or interest or redemption | ||||||
17 | premium
on any capital bonds or notes, whether as such amounts | ||||||
18 | become due or by
earlier redemption, issued by the Authority or | ||||||
19 | a transportation agency to
construct or acquire public | ||||||
20 | transportation facilities, or to provide funds
to purchase such | ||||||
21 | capital bonds or notes.
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22 | (b) The ordinance providing for the issuance of any such | ||||||
23 | notes shall fix
the date or dates of maturity, the dates on | ||||||
24 | which interest is payable, any sinking fund
account or reserve | ||||||
25 | fund account provisions and all other details of such
notes and | ||||||
26 | may provide for such covenants or agreements necessary or |
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1 | desirable
with regard to the issue, sale and security of such | ||||||
2 | notes. The Authority
shall determine and fix the rate or rates | ||||||
3 | of interest of its notes issued
under this Act in an ordinance | ||||||
4 | adopted by the Board prior to the issuance
thereof, none of | ||||||
5 | which rates of interest shall exceed that permitted in the Bond | ||||||
6 | Authorization Act.
Interest may be payable annually or | ||||||
7 | semi-annually, or at such other times
as determined by the | ||||||
8 | Board. Notes issued under this Section may be issued
as serial | ||||||
9 | or term obligations, shall be of such denomination or | ||||||
10 | denominations
and form, including interest coupons to be | ||||||
11 | attached thereto, be executed
in such manner, shall be payable | ||||||
12 | at such place or places and bear such date
as the Board shall | ||||||
13 | fix by the ordinance authorizing such note and shall
mature at | ||||||
14 | such time or times, within a period not to exceed 18 months | ||||||
15 | from
the date of issue, and may be redeemable prior to maturity | ||||||
16 | with or without
premium, at the option of the Board, upon such | ||||||
17 | terms and conditions as the
Board shall fix by the ordinance | ||||||
18 | authorizing the issuance of such notes.
The Board may provide | ||||||
19 | for the registration of notes in the name of the owner
as to | ||||||
20 | the principal alone or as to both principal and interest, upon | ||||||
21 | such
terms and conditions as the Board may determine. The | ||||||
22 | ordinance authorizing
notes may provide for the exchange of | ||||||
23 | such notes which are fully registered,
as to both principal and | ||||||
24 | interest, with notes which are registerable as
to principal | ||||||
25 | only. All notes issued under this Section by the Board shall
be | ||||||
26 | sold at a price which may be at a premium or discount but such |
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1 | that the
interest cost (excluding any redemption premium) to | ||||||
2 | the Board of the proceeds
of an issue of such notes, computed | ||||||
3 | to stated maturity according to standard
tables of bond values, | ||||||
4 | shall not exceed that permitted in the Bond Authorization Act. | ||||||
5 | Such notes
shall be sold at such time or times as the Board | ||||||
6 | shall determine. The notes
may be sold either upon competitive | ||||||
7 | bidding or by negotiated sale (without
any requirement of | ||||||
8 | publication of intention to negotiate the sale of such
notes), | ||||||
9 | as the Board shall determine by ordinance adopted with the | ||||||
10 | affirmative
votes of at least 4 Directors. In case any officer | ||||||
11 | whose signature appears
on any notes or coupons authorized | ||||||
12 | pursuant to this Section shall cease
to be such officer before | ||||||
13 | delivery of such notes, such signature shall nevertheless
be | ||||||
14 | valid and sufficient for all purposes, the same as if such | ||||||
15 | officer had remained
in office until such delivery. Neither the | ||||||
16 | Directors of the Regional Transportation
Authority, the | ||||||
17 | Directors of the Authority nor any person executing any bonds
| ||||||
18 | or notes thereof shall be liable personally on any such bonds | ||||||
19 | or notes or
coupons by reason of the issuance thereof.
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20 | (c) All notes of the Authority issued pursuant to this | ||||||
21 | Section shall be
general obligations of the Authority to which | ||||||
22 | shall be pledged the full
faith and credit of the Authority, as | ||||||
23 | provided in this Section. Such notes
shall be secured as | ||||||
24 | provided in the authorizing ordinance, which may, | ||||||
25 | notwithstanding
any other provision of this Act, include in | ||||||
26 | addition to any other security,
a specific pledge or assignment |
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1 | of and lien on or security interest in any
or all tax receipts | ||||||
2 | of the Regional Transportation Authority allocated to
the | ||||||
3 | Authority and on any or all other revenues or moneys of the | ||||||
4 | Authority
from whatever source which may by law
be utilized for | ||||||
5 | debt service purposes and a specific pledge or assignment
of | ||||||
6 | and lien on or security interest in any funds or accounts | ||||||
7 | established
or provided for by the ordinance of the Board | ||||||
8 | authorizing the issuance of
such notes. Any such pledge, | ||||||
9 | assignment, lien or security interest for
the benefit of | ||||||
10 | holders of notes of the Authority shall be valid and binding
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11 | from the time the notes are issued without any physical | ||||||
12 | delivery or further
act, and shall be valid and binding as | ||||||
13 | against and prior to the claims of
all other parties having | ||||||
14 | claims of any kind against the
Authority or any other person | ||||||
15 | irrespective of whether such other parties
have notice of such | ||||||
16 | pledge, assignment, lien or security interest. The
obligations | ||||||
17 | of the Authority incurred pursuant to this Section shall be
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18 | superior to and have priority over any other obligations of the | ||||||
19 | Authority
except for obligations under Section 12. The Board | ||||||
20 | may provide in the ordinance
authorizing the issuance of any | ||||||
21 | notes issued pursuant to this Section for
the creation of, | ||||||
22 | deposits in, and regulation and disposition of sinking
fund or | ||||||
23 | reserve accounts relating to such notes. The ordinance | ||||||
24 | authorizing
the issuance of any notes pursuant to this Section | ||||||
25 | may contain provisions
as part of the contract with the holders | ||||||
26 | of the notes, for the creation
of a separate fund to provide |
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1 | for the payment of principal and interest
on such notes and for | ||||||
2 | the deposit in such fund from any or all the tax receipts
of | ||||||
3 | the Regional Transportation Authority allocated to the | ||||||
4 | Authority and
from any or all such other moneys or revenues of | ||||||
5 | the Authority from whatever
source which may by law be utilized | ||||||
6 | for debt service purposes, all as provided
in such ordinance, | ||||||
7 | of amounts to meet the debt service requirements on such
notes, | ||||||
8 | including principal and interest, and any sinking fund or | ||||||
9 | reserve
fund account requirements as may be provided by such | ||||||
10 | ordinance, and all
expenses incident to or in connection with | ||||||
11 | such fund and accounts or the
payment of such notes. Such | ||||||
12 | ordinance may also provide limitations on the
issuance of | ||||||
13 | additional notes of the Authority. No such notes of the | ||||||
14 | Authority
shall constitute a debt of the State of Illinois.
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15 | (d) The ordinance of the Board authorizing the issuance of | ||||||
16 | any notes may
provide additional security for such notes by | ||||||
17 | providing for appointment
of a corporate trustee (which may be | ||||||
18 | any trust company or bank having the
powers of a trust company | ||||||
19 | within the State) with respect to such notes.
The ordinance | ||||||
20 | shall prescribe the rights, duties and powers of the trustee
to | ||||||
21 | be exercised for the benefit of the Authority and the | ||||||
22 | protection of the
holders of such notes. The ordinance may | ||||||
23 | provide for the trustee to hold
in
trust, invest and use | ||||||
24 | amounts in funds and accounts created as provided
by the | ||||||
25 | ordinance with respect to the notes. The ordinance shall | ||||||
26 | provide
that amounts so paid to the trustee which are not |
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1 | required to be deposited,
held or invested in funds and | ||||||
2 | accounts created by the ordinance with respect
to notes or used | ||||||
3 | for paying notes to be paid by the trustee to the Authority.
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4 | (e) Any notes of the Authority issued pursuant to this | ||||||
5 | Section shall constitute
a contract between the Authority and | ||||||
6 | the holders from time to time of such
notes. In issuing any | ||||||
7 | note, the Board may include in the ordinance authorizing
such | ||||||
8 | issue a covenant as part of the contract with the holders of | ||||||
9 | the notes,
that as long as such obligations are outstanding, it | ||||||
10 | shall make such deposits,
as provided in paragraph (c) of this | ||||||
11 | Section. A certified copy of the ordinance
authorizing the | ||||||
12 | issuance of any such obligations shall be filed at or prior
to | ||||||
13 | the issuance of such obligations with the Regional | ||||||
14 | Transportation Authority,
Comptroller of the State of Illinois | ||||||
15 | and the Illinois Department of Revenue.
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16 | (f) The State of Illinois pledges to and agrees with the | ||||||
17 | holders of the
notes of the Authority issued pursuant to this | ||||||
18 | Section that the State will
not limit or alter the rights and | ||||||
19 | powers vested in the Authority by this
Act or in the Regional | ||||||
20 | Transportation Authority by the Regional Transportation
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21 | Authority Act so as to impair the terms of any contract made by | ||||||
22 | the Authority
with such holders or in any way impair the rights | ||||||
23 | and remedies of such holders
until such notes, together with | ||||||
24 | interest thereon, with interest on any unpaid
installments of | ||||||
25 | interest, and all costs and expenses in connection with
any | ||||||
26 | action or proceedings by or on behalf of such holders, are |
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1 | fully met
and discharged. In addition, the State pledges to and | ||||||
2 | agrees with the holders
of the notes of the Authority issued | ||||||
3 | pursuant to this Section that the State
will not limit or alter | ||||||
4 | the basis on which State funds are to be paid to
the Authority | ||||||
5 | as provided in the Regional Transportation Authority Act,
or | ||||||
6 | the use of such funds, so as to impair the terms of any such | ||||||
7 | contract.
The Board is authorized to include these pledges and | ||||||
8 | agreements of the State
in any contract with the holders of | ||||||
9 | bonds or notes issued pursuant to this Section.
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10 | (g) The Board shall not at any time issue, sell or deliver | ||||||
11 | any Interim
Financing Notes pursuant to this Section which will | ||||||
12 | cause it to have issued
and outstanding at any time in excess | ||||||
13 | of $40,000,000
of Working Cash Notes. Notes which are being | ||||||
14 | paid or retired by such issuance,
sale or delivery of notes, | ||||||
15 | and notes for which sufficient funds have been
deposited with | ||||||
16 | the paying agency of such notes to provide for payment of
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17 | principal and interest thereon or to provide for the redemption | ||||||
18 | thereof,
all pursuant to the ordinance authorizing the issuance | ||||||
19 | of such notes, shall
not be considered to be outstanding for | ||||||
20 | the purposes of this paragraph.
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21 | (h) The Board, subject to the terms of any agreements with | ||||||
22 | noteholders
as may then exist, shall have power, out of any | ||||||
23 | funds available therefor,
to purchase notes of the Authority | ||||||
24 | which shall thereupon be cancelled.
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25 | (i) In addition to any other authority granted by law, the | ||||||
26 | State Treasurer
may, with the approval of the Governor, invest |
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1 | or reinvest, at a price not
to exceed par, any State money in | ||||||
2 | the State Treasury which is not needed
for current expenditures | ||||||
3 | due or about to become due in Interim Financing Notes. In the | ||||||
4 | case of a default on an interim financing note issued by the | ||||||
5 | Chicago Transit Authority with which State money in the State | ||||||
6 | treasury was invested, the Treasurer may, after giving notice | ||||||
7 | to the Authority, certify to the Comptroller the amounts of the | ||||||
8 | defaulted interim financing note, in accordance with any | ||||||
9 | applicable rules of the Comptroller, and the Comptroller must | ||||||
10 | deduct and remit to the State treasury the certified amounts or | ||||||
11 | a portion of those amounts from the following proportions of | ||||||
12 | payments of State funds to the Authority:
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13 | (1) in the first year after default, one-third of the | ||||||
14 | total amount of any payments of State funds to the | ||||||
15 | Authority; | ||||||
16 | (2) in the second year after default, two-thirds of the | ||||||
17 | total amount of any payments of State funds to the | ||||||
18 | Authority; and | ||||||
19 | (3) in the third year after default and for each year | ||||||
20 | thereafter until the total invested amount is repaid, the | ||||||
21 | total amount of any payments of State funds to the | ||||||
22 | Authority. | ||||||
23 | (Source: P.A. 100-201, eff. 8-18-17.)
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24 | Section 10. The Regional Transportation Authority Act is | ||||||
25 | amended by changing Section 4.04 as follows:
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1 | (70 ILCS 3615/4.04) (from Ch. 111 2/3, par. 704.04) | ||||||
2 | Sec. 4.04. Issuance and Pledge of Bonds and Notes. | ||||||
3 | (a) The Authority shall have the continuing power to borrow | ||||||
4 | money and to
issue its negotiable bonds or notes as provided in | ||||||
5 | this Section. Unless
otherwise indicated in this Section, the | ||||||
6 | term "notes" also includes bond
anticipation notes, which are | ||||||
7 | notes which by their terms provide for
their payment from the | ||||||
8 | proceeds of bonds thereafter to be issued. Bonds
or notes of | ||||||
9 | the Authority may be issued for any or all of the following
| ||||||
10 | purposes: to pay costs to the Authority or a Service Board of | ||||||
11 | constructing
or acquiring any public transportation facilities | ||||||
12 | (including funds and
rights relating thereto, as provided in | ||||||
13 | Section 2.05 of this Act); to repay
advances to the Authority | ||||||
14 | or a Service Board made for such purposes; to pay
other | ||||||
15 | expenses of the Authority or a Service Board incident to or | ||||||
16 | incurred
in connection with such construction or acquisition; | ||||||
17 | to provide funds for
any transportation agency to pay principal
| ||||||
18 | of or interest or redemption premium on any bonds or notes, | ||||||
19 | whether
as such amounts become due or by earlier redemption, | ||||||
20 | issued prior to the
date of this amendatory Act by such | ||||||
21 | transportation agency to construct or
acquire public | ||||||
22 | transportation facilities or to provide funds to purchase
such | ||||||
23 | bonds or notes; and to provide funds for any transportation | ||||||
24 | agency to
construct or acquire any public transportation | ||||||
25 | facilities, to repay
advances made for such purposes, and to |
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1 | pay other expenses incident to
or incurred in connection with | ||||||
2 | such construction or acquisition; and to
provide funds for | ||||||
3 | payment of obligations, including the funding of reserves,
| ||||||
4 | under any self-insurance plan or joint self-insurance pool or | ||||||
5 | entity. | ||||||
6 | In addition to any other borrowing as may be authorized by | ||||||
7 | this Section,
the Authority may issue its notes, from time to | ||||||
8 | time, in anticipation of
tax receipts of the Authority or of | ||||||
9 | other
revenues or receipts of the Authority, in order to | ||||||
10 | provide money for the
Authority or the Service Boards to cover | ||||||
11 | any cash flow deficit which
the Authority or a Service Board | ||||||
12 | anticipates incurring. Any such notes
are referred to in this | ||||||
13 | Section as "Working Cash Notes". No Working
Cash Notes shall be | ||||||
14 | issued for a term of longer than 24
months.
Proceeds of Working | ||||||
15 | Cash Notes may be used to pay day to day operating
expenses of | ||||||
16 | the Authority or the Service Boards, consisting of wages,
| ||||||
17 | salaries and fringe benefits, professional and technical | ||||||
18 | services
(including legal, audit, engineering and other | ||||||
19 | consulting services), office
rental, furniture, fixtures and | ||||||
20 | equipment, insurance premiums, claims for
self-insured amounts | ||||||
21 | under insurance policies, public utility
obligations for | ||||||
22 | telephone, light, heat and similar items, travel expenses,
| ||||||
23 | office supplies, postage, dues, subscriptions, public hearings | ||||||
24 | and information
expenses, fuel purchases, and payments of | ||||||
25 | grants and payments under purchase
of service agreements for | ||||||
26 | operations of transportation agencies, prior to
the receipt by |
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| |||||||
1 | the Authority or a Service Board from time to time of
funds for | ||||||
2 | paying such expenses. In addition to any Working Cash Notes
| ||||||
3 | that the Board of the Authority may determine to issue, the | ||||||
4 | Suburban Bus
Board, the Commuter Rail Board or the Board of the | ||||||
5 | Chicago Transit Authority
may demand and direct that the | ||||||
6 | Authority issue its Working Cash Notes in
such amounts and | ||||||
7 | having such maturities as the Service Board may determine. | ||||||
8 | Notwithstanding any other provision of this Act, any | ||||||
9 | amounts necessary to
pay principal of and interest on any
| ||||||
10 | Working Cash Notes issued at the demand
and direction of a | ||||||
11 | Service Board or any Working Cash Notes the proceeds of
which | ||||||
12 | were used for the direct benefit of a Service Board or any | ||||||
13 | other
Bonds or Notes of the Authority the proceeds of which | ||||||
14 | were used for the
direct benefit of a Service Board shall | ||||||
15 | constitute a reduction of the amount
of any other funds | ||||||
16 | provided by the Authority to that Service
Board. The Authority | ||||||
17 | shall, after deducting any costs of issuance, tender
the net | ||||||
18 | proceeds of any Working Cash Notes issued at the demand and
| ||||||
19 | direction of a Service Board to such Service Board as soon as | ||||||
20 | may be
practicable after the proceeds are received. The | ||||||
21 | Authority may also issue
notes or bonds to pay, refund or | ||||||
22 | redeem any of its notes and bonds,
including to pay redemption | ||||||
23 | premiums or accrued interest on such bonds or
notes being | ||||||
24 | renewed, paid or refunded, and other costs in connection
| ||||||
25 | therewith. The Authority may also utilize the proceeds of any | ||||||
26 | such bonds or
notes to pay the legal, financial, administrative |
| |||||||
| |||||||
1 | and other expenses of
such authorization, issuance, sale or | ||||||
2 | delivery of bonds or notes or to
provide or increase a debt | ||||||
3 | service reserve fund with respect to any or all
of its bonds or | ||||||
4 | notes. The Authority may also issue and deliver
its bonds or | ||||||
5 | notes in exchange for any public transportation facilities,
| ||||||
6 | (including funds and rights relating thereto, as provided in | ||||||
7 | Section
2.05 of this Act) or in exchange for outstanding bonds | ||||||
8 | or notes of the
Authority, including any accrued interest or | ||||||
9 | redemption premium thereon,
without advertising or submitting | ||||||
10 | such notes or bonds for public bidding. | ||||||
11 | (b) The ordinance providing for the issuance of any such | ||||||
12 | bonds or
notes shall fix the date or dates of maturity, the | ||||||
13 | dates on which
interest is payable, any sinking fund account or | ||||||
14 | reserve fund account
provisions and all other details of such | ||||||
15 | bonds or notes and may provide
for such covenants or agreements | ||||||
16 | necessary or desirable with regard to
the issue, sale and | ||||||
17 | security of such bonds or notes. The rate or rates of
interest | ||||||
18 | on its bonds or notes may be fixed or variable and the | ||||||
19 | Authority
shall determine or provide for the determination of | ||||||
20 | the rate or
rates of interest of its bonds or notes
issued | ||||||
21 | under this Act in an ordinance adopted by the Authority prior | ||||||
22 | to
the issuance thereof, none of which rates of interest shall | ||||||
23 | exceed
that permitted in the Bond Authorization Act. Interest | ||||||
24 | may be payable at such times as are provided for
by the Board. | ||||||
25 | Bonds and notes issued under this Section may
be issued as | ||||||
26 | serial or term obligations, shall be of such denomination
or |
| |||||||
| |||||||
1 | denominations and form, including interest coupons to be | ||||||
2 | attached
thereto, be executed in such manner, shall be payable | ||||||
3 | at such place or
places and bear such date as the Authority | ||||||
4 | shall fix by the ordinance
authorizing such bond or note and | ||||||
5 | shall mature at such time or times,
within a period not to | ||||||
6 | exceed forty years from the date of issue, and
may be | ||||||
7 | redeemable prior to maturity with or without premium, at the
| ||||||
8 | option of the Authority, upon such terms and conditions as the | ||||||
9 | Authority
shall fix by the ordinance authorizing the issuance | ||||||
10 | of such bonds or
notes. No bond anticipation note or any | ||||||
11 | renewal thereof shall mature at
any time or times exceeding 5 | ||||||
12 | years from the date of the first issuance
of such note. The | ||||||
13 | Authority may provide for the registration of bonds or
notes in | ||||||
14 | the name of the owner as to the principal alone or as to both
| ||||||
15 | principal and interest, upon such terms and conditions as the | ||||||
16 | Authority
may determine. The ordinance authorizing bonds or | ||||||
17 | notes may provide for
the exchange of such bonds or notes which | ||||||
18 | are fully registered, as to
both principal and interest, with | ||||||
19 | bonds or notes which are registerable
as to principal only. All | ||||||
20 | bonds or notes issued under this Section by
the Authority other | ||||||
21 | than those issued in exchange for property or for
bonds or | ||||||
22 | notes of the Authority shall be sold at a price which may be at
| ||||||
23 | a premium or discount but such that the interest cost | ||||||
24 | (excluding any
redemption premium) to the Authority of the | ||||||
25 | proceeds of an issue of such
bonds or notes, computed to stated | ||||||
26 | maturity according to standard tables
of bond values, shall not |
| |||||||
| |||||||
1 | exceed that permitted in the Bond Authorization
Act. The | ||||||
2 | Authority shall notify
the
Governor's Office of Management and | ||||||
3 | Budget and the State Comptroller at least 30 days
before any | ||||||
4 | bond sale and shall file with the
Governor's Office of | ||||||
5 | Management and Budget and the
State Comptroller a certified | ||||||
6 | copy of any ordinance authorizing the issuance
of bonds at or | ||||||
7 | before the issuance of the bonds.
After December 31, 1994, any | ||||||
8 | such bonds or notes shall be sold
to the highest and best | ||||||
9 | bidder on sealed bids as the Authority shall deem.
As such | ||||||
10 | bonds or notes are to be sold the Authority shall advertise for
| ||||||
11 | proposals to purchase the bonds or notes which advertisement | ||||||
12 | shall be published
at least once in a daily newspaper of | ||||||
13 | general circulation published in the
metropolitan region at | ||||||
14 | least 10 days before the time set for the submission
of bids. | ||||||
15 | The Authority shall have the right to reject any or all bids.
| ||||||
16 | Notwithstanding any other provisions of this Section, Working | ||||||
17 | Cash Notes or
bonds or notes to provide funds for | ||||||
18 | self-insurance or a joint self-insurance
pool or entity may be | ||||||
19 | sold either upon competitive bidding or by negotiated
sale
| ||||||
20 | (without any requirement of publication of intention to | ||||||
21 | negotiate the sale
of such Notes), as the Board shall determine | ||||||
22 | by ordinance adopted with the
affirmative votes of at least 9
| ||||||
23 | Directors. In case any officer whose signature
appears on any | ||||||
24 | bonds, notes or coupons authorized pursuant to this
Section | ||||||
25 | shall cease to be such officer before delivery of such bonds or
| ||||||
26 | notes, such signature shall nevertheless be valid and |
| |||||||
| |||||||
1 | sufficient for all
purposes, the same as if such officer had | ||||||
2 | remained in office until such
delivery. Neither the Directors | ||||||
3 | of the Authority nor any person
executing any bonds or notes | ||||||
4 | thereof shall be liable personally on any
such bonds or notes | ||||||
5 | or coupons by reason of the issuance thereof. | ||||||
6 | (c) All bonds or notes of the Authority issued pursuant to | ||||||
7 | this Section
shall be general obligations
of the Authority to | ||||||
8 | which shall be pledged the full faith and credit of the
| ||||||
9 | Authority, as provided in this Section. Such bonds or notes
| ||||||
10 | shall be secured
as provided in the authorizing ordinance, | ||||||
11 | which may, notwithstanding any other
provision of this Act, | ||||||
12 | include in addition to any other security, a specific
pledge or | ||||||
13 | assignment of and lien on or security interest in any or all | ||||||
14 | tax
receipts of the Authority and on any or all other revenues | ||||||
15 | or moneys of the
Authority from whatever source, which may by | ||||||
16 | law be utilized for debt
service purposes and a specific pledge | ||||||
17 | or assignment of and lien on or security
interest in any funds | ||||||
18 | or accounts established or provided for by the ordinance
of the | ||||||
19 | Authority authorizing the issuance of such bonds or notes. Any | ||||||
20 | such
pledge, assignment, lien or security interest for the | ||||||
21 | benefit of holders of
bonds or notes of the Authority shall be | ||||||
22 | valid and binding from the time the
bonds or notes are issued | ||||||
23 | without any physical delivery or further act
and shall be valid | ||||||
24 | and binding as against and prior to the claims of all
other | ||||||
25 | parties having claims of any kind against the Authority or any | ||||||
26 | other
person irrespective of whether such other parties have |
| |||||||
| |||||||
1 | notice of such pledge,
assignment, lien or security interest. | ||||||
2 | The obligations of the Authority
incurred pursuant to this | ||||||
3 | Section shall be superior to and have priority over
any other | ||||||
4 | obligations of the Authority. | ||||||
5 | The Authority may provide in the
ordinance authorizing the | ||||||
6 | issuance of any bonds or notes issued pursuant to
this Section | ||||||
7 | for the creation of, deposits in, and regulation and | ||||||
8 | disposition
of sinking fund or reserve accounts relating to | ||||||
9 | such bonds or notes. The
ordinance authorizing the issuance of | ||||||
10 | any bonds or notes pursuant to this
Section may contain | ||||||
11 | provisions as part of the contract with the holders
of the | ||||||
12 | bonds or notes, for the creation of a separate fund to provide
| ||||||
13 | for the payment of principal and interest on such bonds or | ||||||
14 | notes
and for the deposit in such fund from any or all the tax | ||||||
15 | receipts of the
Authority and from any or all such other moneys | ||||||
16 | or revenues of the
Authority from whatever source which may by | ||||||
17 | law be utilized for debt
service purposes, all as provided in | ||||||
18 | such ordinance, of amounts to meet
the debt service | ||||||
19 | requirements on such bonds or notes, including
principal and | ||||||
20 | interest, and any sinking fund or reserve fund account
| ||||||
21 | requirements as may be provided by such ordinance, and all | ||||||
22 | expenses
incident to or in connection with such fund and | ||||||
23 | accounts or the payment
of such bonds or notes.
Such ordinance | ||||||
24 | may also provide limitations on the issuance of additional
| ||||||
25 | bonds or notes of the Authority. No such bonds or notes of the | ||||||
26 | Authority
shall constitute a debt of the State of Illinois. |
| |||||||
| |||||||
1 | Nothing in this Act shall
be construed to enable the Authority | ||||||
2 | to impose any ad valorem tax on property. | ||||||
3 | (d) The ordinance of the Authority authorizing the issuance | ||||||
4 | of any bonds
or notes may provide additional security for such | ||||||
5 | bonds or notes by providing
for appointment of a corporate | ||||||
6 | trustee (which may be any trust company or
bank having the | ||||||
7 | powers of a trust company within the state) with respect
to | ||||||
8 | such bonds or notes. The ordinance shall prescribe the rights, | ||||||
9 | duties
and powers of the trustee to be exercised for the | ||||||
10 | benefit of the Authority
and the protection of the holders of | ||||||
11 | such bonds or notes. The ordinance
may provide for the trustee | ||||||
12 | to hold in trust, invest and use amounts in
funds and accounts | ||||||
13 | created as provided by the ordinance with respect to
the bonds | ||||||
14 | or notes. The ordinance may provide for the assignment and | ||||||
15 | direct
payment to the trustee of any or all amounts produced | ||||||
16 | from the sources
provided in Section 4.03 and Section 4.09 of | ||||||
17 | this Act and provided in Section 6z-17 of "An Act
in relation | ||||||
18 | to State finance", approved June 10, 1919, as amended.
Upon | ||||||
19 | receipt of notice of any such assignment, the Department of | ||||||
20 | Revenue and
the Comptroller of the State of Illinois shall | ||||||
21 | thereafter, notwithstanding the
provisions of Section 4.03 and | ||||||
22 | Section 4.09 of this Act and Section 6z-17 of "An Act in | ||||||
23 | relation
to State finance", approved June 10, 1919, as amended, | ||||||
24 | provide for such
assigned amounts to be paid directly to the | ||||||
25 | trustee instead of the Authority,
all in accordance with the | ||||||
26 | terms of the ordinance making the assignment. The
ordinance |
| |||||||
| |||||||
1 | shall provide that
amounts so paid to the trustee which are not | ||||||
2 | required to be deposited, held
or invested in funds and | ||||||
3 | accounts created by the ordinance with respect
to bonds or | ||||||
4 | notes or used for paying bonds or notes to be paid by the | ||||||
5 | trustee
to the Authority. | ||||||
6 | (e) Any bonds or notes of the Authority issued pursuant to | ||||||
7 | this
Section shall constitute a contract between the Authority | ||||||
8 | and the
holders from time to time of such bonds or notes. In | ||||||
9 | issuing any bond or
note, the Authority may include in the | ||||||
10 | ordinance authorizing such issue
a covenant as part of the | ||||||
11 | contract with the holders of the bonds or
notes, that as long | ||||||
12 | as such obligations are outstanding, it shall make
such | ||||||
13 | deposits, as provided in paragraph (c) of this Section. It may | ||||||
14 | also
so covenant that it shall impose and continue to impose | ||||||
15 | taxes, as
provided in Section 4.03 of this Act and in addition | ||||||
16 | thereto as
subsequently authorized by law, sufficient to make | ||||||
17 | such deposits and pay
the principal and interest and to meet | ||||||
18 | other debt service requirements
of such bonds or notes as they | ||||||
19 | become due. A certified copy of the
ordinance authorizing the | ||||||
20 | issuance of any such obligations shall be
filed at or prior to | ||||||
21 | the issuance of such obligations with the Comptroller
of the | ||||||
22 | State of Illinois and the Illinois Department of Revenue. | ||||||
23 | (f) The State of Illinois pledges to and agrees with the | ||||||
24 | holders of
the bonds and notes of the Authority issued pursuant | ||||||
25 | to this Section
that the State will not limit or alter the | ||||||
26 | rights and powers vested in
the Authority by this Act so as to |
| |||||||
| |||||||
1 | impair the terms of any contract made
by the Authority with | ||||||
2 | such holders or in any way impair the rights and
remedies of | ||||||
3 | such holders until such bonds and notes, together with
interest | ||||||
4 | thereon, with interest on any unpaid installments of interest,
| ||||||
5 | and all costs and expenses in connection with any action or | ||||||
6 | proceedings
by or on behalf of such holders, are fully met and | ||||||
7 | discharged. In
addition, the State pledges to and agrees with | ||||||
8 | the holders of the bonds
and notes of the Authority issued | ||||||
9 | pursuant to this Section that the
State will not limit or alter | ||||||
10 | the basis on which State funds are to be
paid to the Authority | ||||||
11 | as provided in this Act, or the use of such funds,
so as to | ||||||
12 | impair the terms of any such contract. The Authority is
| ||||||
13 | authorized to include these pledges and agreements of the State | ||||||
14 | in any
contract with the holders of bonds or notes issued | ||||||
15 | pursuant to this
Section. | ||||||
16 | (g)(1) Except as provided in subdivisions (g)(2) and (g)(3) | ||||||
17 | of Section
4.04 of this Act, the Authority shall not at any | ||||||
18 | time issue, sell or deliver
any bonds or notes (other than | ||||||
19 | Working Cash Notes and lines of credit ) pursuant to this | ||||||
20 | Section
4.04 which will cause
it to have issued and outstanding | ||||||
21 | at any time in excess of $800,000,000 of such
bonds and notes | ||||||
22 | (other than Working Cash Notes and lines of credit ).
The | ||||||
23 | Authority shall not issue, sell, or deliver any Working Cash | ||||||
24 | Notes or establish a line of credit pursuant to this Section | ||||||
25 | that will cause it to have issued and outstanding at any time | ||||||
26 | in excess of $100,000,000. However, the Authority may issue, |
| |||||||
| |||||||
1 | sell, and deliver additional Working Cash Notes or establish a | ||||||
2 | line of credit before July 1, 2022 2018 that are over and above | ||||||
3 | and in addition to the $100,000,000 authorization such that the | ||||||
4 | outstanding amount of these additional Working Cash Notes and | ||||||
5 | lines of credit do does not exceed at any time $300,000,000.
| ||||||
6 | Bonds or notes which are being paid or retired by
such | ||||||
7 | issuance, sale or delivery of bonds or notes, and bonds or | ||||||
8 | notes for
which sufficient funds have been deposited with the | ||||||
9 | paying agency of
such bonds or notes to provide for payment of | ||||||
10 | principal and interest
thereon or to provide for the redemption | ||||||
11 | thereof, all pursuant to the
ordinance authorizing the issuance | ||||||
12 | of such bonds or notes, shall not be
considered to be | ||||||
13 | outstanding for the purposes of this subsection. | ||||||
14 | (2) In addition to the authority provided by paragraphs
(1) | ||||||
15 | and (3), the Authority is authorized to issue, sell and deliver | ||||||
16 | bonds
or notes for Strategic Capital Improvement Projects | ||||||
17 | approved pursuant to
Section 4.13 as follows: | ||||||
18 | $100,000,000 is authorized to be issued on or after | ||||||
19 | January 1, 1990; | ||||||
20 | an additional $100,000,000 is authorized to be issued | ||||||
21 | on or after
January 1, 1991; | ||||||
22 | an additional $100,000,000 is authorized to be issued | ||||||
23 | on or after
January 1, 1992; | ||||||
24 | an additional $100,000,000 is authorized to be issued | ||||||
25 | on or after
January 1, 1993; | ||||||
26 | an additional $100,000,000 is authorized to be issued |
| |||||||
| |||||||
1 | on or after
January 1, 1994; and | ||||||
2 | the aggregate total authorization of bonds and notes | ||||||
3 | for Strategic
Capital Improvement Projects as of January 1, | ||||||
4 | 1994, shall be $500,000,000. | ||||||
5 | The Authority is also authorized to issue, sell, and | ||||||
6 | deliver bonds or
notes in such amounts as are necessary to | ||||||
7 | provide for the refunding or advance
refunding of bonds or | ||||||
8 | notes issued for Strategic Capital Improvement Projects
under | ||||||
9 | this subdivision (g)(2), provided that no such refunding bond | ||||||
10 | or note
shall mature later than the final maturity date of the | ||||||
11 | series of bonds or notes
being refunded, and provided further | ||||||
12 | that the debt service requirements for
such refunding bonds or | ||||||
13 | notes in the current or any future fiscal year shall
not exceed | ||||||
14 | the debt service requirements for that year on the refunded | ||||||
15 | bonds
or notes. | ||||||
16 | (3) In addition to the authority provided by paragraphs (1) | ||||||
17 | and (2),
the Authority is authorized to issue, sell, and | ||||||
18 | deliver bonds or notes for
Strategic Capital Improvement | ||||||
19 | Projects approved pursuant to Section 4.13 as
follows: | ||||||
20 | $260,000,000 is authorized to be issued on or after | ||||||
21 | January 1, 2000; | ||||||
22 | an additional $260,000,000 is authorized to be issued | ||||||
23 | on or after
January 1, 2001; | ||||||
24 | an additional $260,000,000 is authorized to be issued | ||||||
25 | on or after
January 1, 2002; | ||||||
26 | an additional $260,000,000 is authorized to be issued |
| |||||||
| |||||||
1 | on or after
January 1, 2003; | ||||||
2 | an additional $260,000,000 is authorized to be issued | ||||||
3 | on or after
January 1, 2004; and | ||||||
4 | the aggregate total authorization of bonds and notes | ||||||
5 | for Strategic
Capital Improvement Projects pursuant to | ||||||
6 | this paragraph (3) as of
January 1, 2004 shall be | ||||||
7 | $1,300,000,000. | ||||||
8 | The Authority is also authorized to issue, sell, and | ||||||
9 | deliver bonds or notes
in such amounts as are necessary to | ||||||
10 | provide for the refunding or advance
refunding of bonds or | ||||||
11 | notes issued for Strategic Capital Improvement projects
under | ||||||
12 | this subdivision (g)(3), provided that no such refunding bond | ||||||
13 | or note
shall mature later than the final maturity date of the | ||||||
14 | series of bonds or notes
being refunded, and provided further | ||||||
15 | that the debt service requirements for
such refunding bonds or | ||||||
16 | notes in the current or any future fiscal year shall
not exceed | ||||||
17 | the debt service requirements for that year on the refunded | ||||||
18 | bonds or
notes. | ||||||
19 | (h) The Authority, subject to the terms of any agreements | ||||||
20 | with noteholders
or bond holders as may then exist, shall have | ||||||
21 | power, out of any funds
available therefor, to purchase notes | ||||||
22 | or bonds of the Authority, which
shall thereupon be cancelled. | ||||||
23 | (i) In addition to any other authority granted by law, the | ||||||
24 | State Treasurer
may, with the approval of the Governor, invest | ||||||
25 | or reinvest, at a price not
to exceed par, any State money in | ||||||
26 | the State Treasury which is not needed
for current expenditures |
| |||||||
| |||||||
1 | due or about to become due in Working Cash Notes. In the case | ||||||
2 | of a default on a Working Cash Note issued by the Regional | ||||||
3 | Transportation Authority with which State money in the Treasury | ||||||
4 | was invested, the Treasurer may, after giving notice to the | ||||||
5 | Authority, certify to the Comptroller the amounts of the | ||||||
6 | defaulted Working Cash Note, in accordance with any applicable | ||||||
7 | rules of the Comptroller, and the Comptroller must deduct and | ||||||
8 | remit to the Treasury the certified amounts or a portion of | ||||||
9 | those amounts from the following proportions of payments of | ||||||
10 | State funds to the Authority: | ||||||
11 | (1) in the first year after default, one-third of the | ||||||
12 | total amount of any payments of State funds to the | ||||||
13 | Authority; | ||||||
14 | (2) in the second year after default, two-thirds of the | ||||||
15 | total amount of any payments of State funds to the | ||||||
16 | Authority; and | ||||||
17 | (3) in the third year after default and for each year | ||||||
18 | thereafter until the total invested amount is repaid, the | ||||||
19 | total amount of any payments of State funds to the | ||||||
20 | Authority. | ||||||
21 | (j) The Authority may establish a line of credit with a | ||||||
22 | bank or other financial institution as may be evidenced by the | ||||||
23 | issuance of notes or other obligations, secured by and payable | ||||||
24 | from all tax receipts of the Authority and any or all other | ||||||
25 | revenues or moneys of the Authority, in an amount not to exceed | ||||||
26 | the limitations set forth in paragraph (1) of subsection (g). |
| |||||||
| |||||||
1 | Money borrowed under this subsection (j) shall be used to | ||||||
2 | provide money for the Authority or the Service Boards to cover | ||||||
3 | any cash flow deficit that the Authority or a Service Board | ||||||
4 | anticipates incurring and shall be repaid within 24 months. | ||||||
5 | Before establishing a line of credit under this subsection | ||||||
6 | (j), the Authority shall authorize the line of credit by | ||||||
7 | ordinance. The ordinance shall set forth facts demonstrating | ||||||
8 | the need for the line of credit, state the amount to be | ||||||
9 | borrowed, establish a maximum interest rate limit not to exceed | ||||||
10 | the maximum rate authorized by the Bond Authorization Act, and | ||||||
11 | provide a date by which the borrowed funds shall be repaid. The | ||||||
12 | ordinance shall authorize and direct the relevant officials to | ||||||
13 | make arrangements to set apart and hold, as applicable, the | ||||||
14 | moneys that will be used to repay the borrowing. In addition, | ||||||
15 | the ordinance may authorize the relevant officials to make | ||||||
16 | partial repayments on the line of credit as the moneys become | ||||||
17 | available and may contain any other terms, restrictions, or | ||||||
18 | limitations desirable or necessary to give effect to this | ||||||
19 | subsection (j). | ||||||
20 | The Authority shall notify the Governor's Office of | ||||||
21 | Management and Budget and the State Comptroller at least 30 | ||||||
22 | days before establishing a line of credit and shall file with | ||||||
23 | the Governor's Office of Management and Budget and the State | ||||||
24 | Comptroller a certified copy of any ordinance authorizing the | ||||||
25 | establishment of a line of credit upon or before establishing | ||||||
26 | the line of credit. |
| |||||||
| |||||||
1 | Moneys borrowed under a line of credit pursuant to this | ||||||
2 | subsection (j) are general obligations of the Authority that | ||||||
3 | are secured by the full faith and credit of the Authority. | ||||||
4 | (Source: P.A. 98-392, eff. 8-16-13; 99-238, eff. 8-3-15.)
| ||||||
5 | Section 99. Effective date. This Act takes effect upon | ||||||
6 | becoming law.
|