Rep. Al Riley

Filed: 3/28/2017

 

 


 

 


 
10000HB3005ham002LRB100 09021 RJF 24127 a

1
AMENDMENT TO HOUSE BILL 3005

2    AMENDMENT NO. ______. Amend House Bill 3005 by replacing
3everything after the enacting clause with the following:
 
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

 

 

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1specified, first-lien conventional residential Illinois
2mortgages that are underwritten, insured, guaranteed, or
3purchased by the Federal Home Loan Mortgage Corporation or in
4Affordable Housing Program Trust Fund Bonds or Notes as defined
5in and issued pursuant to the Illinois Housing Development Act.
6All such obligations shall be considered as cash and may be
7delivered over as cash by a State Treasurer to his successor.
8    The State Treasurer may, with the approval of the Governor,
9purchase any state bonds with any money in the State Treasury
10that has been set aside and held for the payment of the
11principal of and interest on the bonds. The bonds shall be
12considered as cash and may be delivered over as cash by the
13State Treasurer to his successor.
14    The State Treasurer may, with the approval of the Governor,
15invest or reinvest any State money in the treasury that is not
16needed for current expenditure due or about to become due, or
17any money in the State Treasury that has been set aside and
18held for the payment of the principal of and the interest on
19any State bonds, in shares, withdrawable accounts, and
20investment certificates of savings and building and loan
21associations, incorporated under the laws of this State or any
22other state or under the laws of the United States; provided,
23however, that investments may be made only in those savings and
24loan or building and loan associations the shares and
25withdrawable accounts or other forms of investment securities
26of which are insured by the Federal Deposit Insurance

 

 

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1Corporation.
2    The State Treasurer may not invest State money in any
3savings and loan or building and loan association unless a
4commitment by the savings and loan (or building and loan)
5association, executed by the president or chief executive
6officer of that association, is submitted in the following
7form:
8        The .................. Savings and Loan (or Building
9    and Loan) Association pledges not to reject arbitrarily
10    mortgage loans for residential properties within any
11    specific part of the community served by the savings and
12    loan (or building and loan) association because of the
13    location of the property. The savings and loan (or building
14    and loan) association also pledges to make loans available
15    on low and moderate income residential property throughout
16    the community within the limits of its legal restrictions
17    and prudent financial practices.
18    The State Treasurer may, with the approval of the Governor,
19invest or reinvest, at a price not to exceed par, any State
20money in the treasury that is not needed for current
21expenditures due or about to become due, or any money in the
22State Treasury that has been set aside and held for the payment
23of the principal of and interest on any State bonds, in bonds
24issued by counties or municipal corporations of the State of
25Illinois. In the case of a default on a bond issued by a
26municipal corporation or county of the State of Illinois with

 

 

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1which State money in the Treasury was invested, the Treasurer
2may, after giving notice to the municipal corporation or
3county, certify to the Comptroller the amounts of the defaulted
4bonds, in accordance with any applicable rules of the
5Comptroller, and the Comptroller must deduct and remit to the
6Treasury the certified amounts or a portion of those amounts
7from the following proportions of payments of State funds to
8the municipality or county:
9        (1) in the first year after default, one-third of the
10    total amount of any payments of State funds to the
11    municipal corporation or county;
12        (2) in the second year after default, two-thirds of the
13    total amount of any payments of State funds to the
14    municipal corporation or county; and
15        (3) in the third year after default and for each year
16    thereafter until the total invested amount is repaid, the
17    total amount of any payments of State funds to the
18    municipal corporation or county.
19    The State Treasurer may, with the approval of the Governor,
20invest or reinvest any State money in the Treasury which is not
21needed for current expenditure, due or about to become due, or
22any money in the State Treasury which has been set aside and
23held for the payment of the principal of and the interest on
24any State bonds, in participations in loans, the principal of
25which participation is fully guaranteed by an agency or
26instrumentality of the United States government; provided,

 

 

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1however, that such loan participations are represented by
2certificates issued only by banks which are incorporated under
3the laws of this State or any other state or under the laws of
4the United States, and such banks, but not the loan
5participation certificates, are insured by the Federal Deposit
6Insurance Corporation.
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 any of the following:
13        (1) Bonds, notes, certificates of indebtedness,
14    Treasury bills, or other securities now or hereafter issued
15    that are guaranteed by the full faith and credit of the
16    United States of America as to principal and interest.
17        (2) Bonds, notes, debentures, or other similar
18    obligations of the United States of America, its agencies,
19    and instrumentalities.
20        (2.5) Bonds, notes, debentures, or other similar
21    obligations of a foreign government, other than the
22    Republic of the Sudan, that are guaranteed by the full
23    faith and credit of that government as to principal and
24    interest, but only if the foreign government has not
25    defaulted and has met its payment obligations in a timely
26    manner on all similar obligations for a period of at least

 

 

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1    25 years immediately before the time of acquiring those
2    obligations.
3        (3) Interest-bearing savings accounts,
4    interest-bearing certificates of deposit, interest-bearing
5    time deposits, or any other investments constituting
6    direct obligations of any bank as defined by the Illinois
7    Banking Act.
8        (4) Interest-bearing accounts, certificates of
9    deposit, or any other investments constituting direct
10    obligations of any savings and loan associations
11    incorporated under the laws of this State or any other
12    state or under the laws of the United States.
13        (5) Dividend-bearing share accounts, share certificate
14    accounts, or class of share accounts of a credit union
15    chartered under the laws of this State or the laws of the
16    United States; provided, however, the principal office of
17    the credit union must be located within the State of
18    Illinois.
19        (6) Bankers' acceptances of banks whose senior
20    obligations are rated in the top 2 rating categories by 2
21    national rating agencies and maintain that rating during
22    the term of the investment.
23        (7) Short-term obligations of either corporations or
24    limited liability companies organized in the United States
25    with assets exceeding $500,000,000 if (i) the obligations
26    are rated at the time of purchase at one of the 3 highest

 

 

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1    classifications established by at least 2 standard rating
2    services and mature not later than 270 days from the date
3    of purchase, (ii) the purchases do not exceed 10% of the
4    corporation's or the limited liability company's
5    outstanding obligations, (iii) no more than one-third of
6    the public agency's funds are invested in short-term
7    obligations of either corporations or limited liability
8    companies, and (iv) the corporation or the limited
9    liability company has not been placed on the list of
10    restricted companies by the Illinois Investment Policy
11    Board under Section 1-110.16 of the Illinois Pension Code.
12        (7.5) Obligations of either corporations or limited
13    liability companies organized in the United States, that
14    have a significant presence in this State, with assets
15    exceeding $500,000,000 if: (i) the obligations are rated at
16    the time of purchase at one of the 3 highest
17    classifications established by at least 2 standard rating
18    services and mature more than 270 days, but less than 5
19    years, from the date of purchase; (ii) the purchases do not
20    exceed 10% of the corporation's or the limited liability
21    company's outstanding obligations; (iii) no more than 5% of
22    the public agency's funds are invested in such obligations
23    of corporations or limited liability companies; and (iv)
24    the corporation or the limited liability company has not
25    been placed on the list of restricted companies by the
26    Illinois Investment Policy Board under Section 1-110.16 of

 

 

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1    the Illinois Pension Code. The authorization of the
2    Treasurer to invest in new obligations under this paragraph
3    shall expire on June 30, 2019.
4        (8) Money market mutual funds registered under the
5    Investment Company Act of 1940, provided that the portfolio
6    of the money market mutual fund is limited to obligations
7    described in this Section and to agreements to repurchase
8    such obligations.
9        (9) The Public Treasurers' Investment Pool created
10    under Section 17 of the State Treasurer Act or in a fund
11    managed, operated, and administered by a bank.
12        (10) Repurchase agreements of government securities
13    having the meaning set out in the Government Securities Act
14    of 1986, as now or hereafter amended or succeeded, subject
15    to the provisions of that Act and the regulations issued
16    thereunder.
17        (11) Investments made in accordance with the
18    Technology Development Act.
19    For purposes of this Section, "agencies" of the United
20States Government includes:
21        (i) the federal land banks, federal intermediate
22    credit banks, banks for cooperatives, federal farm credit
23    banks, or any other entity authorized to issue debt
24    obligations under the Farm Credit Act of 1971 (12 U.S.C.
25    2001 et seq.) and Acts amendatory thereto;
26        (ii) the federal home loan banks and the federal home

 

 

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1    loan mortgage corporation;
2        (iii) the Commodity Credit Corporation; and
3        (iv) any other agency created by Act of Congress.
4    The Treasurer may, with the approval of the Governor, lend
5any securities acquired under this Act. However, securities may
6be lent under this Section only in accordance with Federal
7Financial Institution Examination Council guidelines and only
8if the securities are collateralized at a level sufficient to
9assure the safety of the securities, taking into account market
10value fluctuation. The securities may be collateralized by cash
11or collateral acceptable under Sections 11 and 11.1.
12(Source: P.A. 99-856, eff. 8-19-16.)
 
13    Section 10. The Metropolitan Transit Authority Act is
14amended by changing Section 12a as follows:
 
15    (70 ILCS 3605/12a)  (from Ch. 111 2/3, par. 312a)
16    Sec. 12a. (a) In addition to other powers provided in
17Section 12b, the Authority may issue its notes from time to
18time, in anticipation of tax receipts of the Regional
19Transportation Authority allocated to the Authority or of other
20revenues or receipts of the Authority, in order to provide
21money for the Authority to cover any cash flow deficit which
22the Authority anticipates incurring. Provided, however, that
23no such notes may be issued unless the annual cost thereof is
24incorporated in a budget or revised budget of the Authority

 

 

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1which has been approved by the Regional Transportation
2Authority. Any such notes are referred to as "Working Cash
3Notes". Provided further that, the board shall not issue and
4have outstanding or demand and direct that the Board of the
5Regional Transportation Authority issue and have outstanding
6more than an aggregate of $40,000,000 in Working Cash Notes. No
7Working Cash Notes shall be issued for a term of longer than 18
8months. Proceeds of Working Cash Notes may be used to pay day
9to day operating expenses of the Authority, consisting of
10wages, salaries and fringe benefits, professional and
11technical services (including legal, audit, engineering and
12other consulting services), office rental, furniture, fixtures
13and equipment, insurance premiums, claims for self-insured
14amounts under insurance policies, public utility obligations
15for telephone, light, heat and similar items, travel expenses,
16office supplies, postage, dues, subscriptions, public hearings
17and information expenses, fuel purchases, and payments of
18grants and payments under purchase of service agreements for
19operations of transportation agencies, prior to the receipt by
20the Authority from time to time of funds for paying such
21expenses. Proceeds of the Working Cash Notes shall not be used
22(i) to increase or provide a debt service reserve fund for any
23bonds or notes other than Working Cash Notes of the same
24Series, or (ii) to pay principal of or interest or redemption
25premium on any capital bonds or notes, whether as such amounts
26become due or by earlier redemption, issued by the Authority or

 

 

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1a transportation agency to construct or acquire public
2transportation facilities, or to provide funds to purchase such
3capital bonds or notes.
4    (b) The ordinance providing for the issuance of any such
5notes shall fix the date or dates of maturity, the dates on
6which interest is payable, any sinking fund account or reserve
7fund account provisions and all other details of such notes and
8may provide for such covenants or agreements necessary or
9desirable with regard to the issue, sale and security of such
10notes. The Authority shall determine and fix the rate or rates
11of interest of its notes issued under this Act in an ordinance
12adopted by the Board prior to the issuance thereof, none of
13which rates of interest shall exceed that permitted in the Bond
14Authorization Act "An Act to authorize public corporations to
15issue bonds, other evidences of indebtedness and tax
16anticipation warrants subject to interest rate limitations set
17forth therein", approved May 26, 1970, as now or hereafter
18amended. Interest may be payable annually or semi-annually, or
19at such other times as determined by the Board. Notes issued
20under this Section may be issued as serial or term obligations,
21shall be of such denomination or denominations and form,
22including interest coupons to be attached thereto, be executed
23in such manner, shall be payable at such place or places and
24bear such date as the Board shall fix by the ordinance
25authorizing such note and shall mature at such time or times,
26within a period not to exceed 18 months from the date of issue,

 

 

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1and may be redeemable prior to maturity with or without
2premium, at the option of the Board, upon such terms and
3conditions as the Board shall fix by the ordinance authorizing
4the issuance of such notes. The Board may provide for the
5registration of notes in the name of the owner as to the
6principal alone or as to both principal and interest, upon such
7terms and conditions as the Board may determine. The ordinance
8authorizing notes may provide for the exchange of such notes
9which are fully registered, as to both principal and interest,
10with notes which are registerable as to principal only. All
11notes issued under this Section by the Board shall be sold at a
12price which may be at a premium or discount but such that the
13interest cost (excluding any redemption premium) to the Board
14of the proceeds of an issue of such notes, computed to stated
15maturity according to standard tables of bond values, shall not
16exceed that permitted in the Bond Authorization Act "An Act to
17authorize public corporations to issue bonds, other evidences
18of indebtedness and tax anticipation warrants subject to
19interest rate limitations set forth therein", approved May 26,
201970, as now or hereafter amended. Such notes shall be sold at
21such time or times as the Board shall determine. The notes may
22be sold either upon competitive bidding or by negotiated sale
23(without any requirement of publication of intention to
24negotiate the sale of such notes), as the Board shall determine
25by ordinance adopted with the affirmative votes of at least 4
26Directors. In case any officer whose signature appears on any

 

 

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1notes or coupons authorized pursuant to this Section shall
2cease to be such officer before delivery of such notes, such
3signature shall nevertheless be valid and sufficient for all
4purposes, the same as if such officer had remained in office
5until such delivery. Neither the Directors of the Regional
6Transportation Authority, the Directors of the Authority nor
7any person executing any bonds or notes thereof shall be liable
8personally on any such bonds or notes or coupons by reason of
9the issuance thereof.
10    (c) All notes of the Authority issued pursuant to this
11Section shall be general obligations of the Authority to which
12shall be pledged the full faith and credit of the Authority, as
13provided in this Section. Such notes shall be secured as
14provided in the authorizing ordinance, which may,
15notwithstanding any other provision of this Act, include in
16addition to any other security, a specific pledge or assignment
17of and lien on or security interest in any or all tax receipts
18of the Regional Transportation Authority allocated to the
19Authority and on any or all other revenues or moneys of the
20Authority from whatever source which may by law be utilized for
21debt service purposes and a specific pledge or assignment of
22and lien on or security interest in any funds or accounts
23established or provided for by the ordinance of the Board
24authorizing the issuance of such notes. Any such pledge,
25assignment, lien or security interest for the benefit of
26holders of notes of the Authority shall be valid and binding

 

 

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

 

 

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1such fund and accounts or the payment of such notes. Such
2ordinance may also provide limitations on the issuance of
3additional notes of the Authority. No such notes of the
4Authority shall constitute a debt of the State of Illinois.
5    (d) The ordinance of the Board authorizing the issuance of
6any notes may provide additional security for such notes by
7providing for appointment of a corporate trustee (which may be
8any trust company or bank having the powers of a trust company
9within the State) with respect to such notes. The ordinance
10shall prescribe the rights, duties and powers of the trustee to
11be exercised for the benefit of the Authority and the
12protection of the holders of such notes. The ordinance may
13provide for the trustee to hold in trust, invest and use
14amounts in funds and accounts created as provided by the
15ordinance with respect to the notes. The ordinance shall
16provide that amounts so paid to the trustee which are not
17required to be deposited, held or invested in funds and
18accounts created by the ordinance with respect to notes or used
19for paying notes to be paid by the trustee to the Authority.
20    (e) Any notes of the Authority issued pursuant to this
21Section shall constitute a contract between the Authority and
22the holders from time to time of such notes. In issuing any
23note, the Board may include in the ordinance authorizing such
24issue a covenant as part of the contract with the holders of
25the notes, that as long as such obligations are outstanding, it
26shall make such deposits, as provided in paragraph (c) of this

 

 

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

 

 

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1any Interim Financing Notes pursuant to this Section which will
2cause it to have issued and outstanding at any time in excess
3of $40,000,000 of Working Cash Notes. Notes which are being
4paid or retired by such issuance, sale or delivery of notes,
5and notes for which sufficient funds have been deposited with
6the paying agency of such notes to provide for payment of
7principal and interest thereon or to provide for the redemption
8thereof, all pursuant to the ordinance authorizing the issuance
9of such notes, shall not be considered to be outstanding for
10the purposes of this paragraph.
11    (h) The Board, subject to the terms of any agreements with
12noteholders as may then exist, shall have power, out of any
13funds available therefor, to purchase notes of the Authority
14which shall thereupon be cancelled.
15    (i) In addition to any other authority granted by law, the
16State Treasurer may, with the approval of the Governor, invest
17or reinvest, at a price not to exceed par, any State money in
18the State Treasury which is not needed for current expenditures
19due or about to become due in Interim Financing Notes. In the
20case of a default on an Interim Financing Note issued by the
21Chicago Transit Authority with which State money in the
22Treasury was invested, the Treasurer may, after giving notice
23to the Authority, certify to the Comptroller the amounts of the
24defaulted Interim Financing Note, in accordance with any
25applicable rules of the Comptroller, and the Comptroller must
26deduct and remit to the Treasury the certified amounts or a

 

 

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1portion of those amounts from the following proportions of
2payments of State funds to the Authority:
3        (1) in the first year after default, one-third of the
4    total amount of any payments of State funds to the
5    Authority;
6        (2) in the second year after default, two-thirds of the
7    total amount of any payments of State funds to the
8    Authority; and
9        (3) in the third year after default and for each year
10    thereafter until the total invested amount is repaid, the
11    total amount of any payments of State funds to the
12    Authority.
13(Source: P.A. 96-328, eff. 8-11-09; revised 9-22-16.)
 
14    Section 15. The Regional Transportation Authority Act is
15amended by changing Section 4.04 as follows:
 
16    (70 ILCS 3615/4.04)  (from Ch. 111 2/3, par. 704.04)
17    Sec. 4.04. Issuance and Pledge of Bonds and Notes.
18    (a) The Authority shall have the continuing power to borrow
19money and to issue its negotiable bonds or notes as provided in
20this Section. Unless otherwise indicated in this Section, the
21term "notes" also includes bond anticipation notes, which are
22notes which by their terms provide for their payment from the
23proceeds of bonds thereafter to be issued. Bonds or notes of
24the Authority may be issued for any or all of the following

 

 

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1purposes: to pay costs to the Authority or a Service Board of
2constructing or acquiring any public transportation facilities
3(including funds and rights relating thereto, as provided in
4Section 2.05 of this Act); to repay advances to the Authority
5or a Service Board made for such purposes; to pay other
6expenses of the Authority or a Service Board incident to or
7incurred in connection with such construction or acquisition;
8to provide funds for any transportation agency to pay principal
9of or interest or redemption premium on any bonds or notes,
10whether as such amounts become due or by earlier redemption,
11issued prior to the date of this amendatory Act by such
12transportation agency to construct or acquire public
13transportation facilities or to provide funds to purchase such
14bonds or notes; and to provide funds for any transportation
15agency to construct or acquire any public transportation
16facilities, to repay advances made for such purposes, and to
17pay other expenses incident to or incurred in connection with
18such construction or acquisition; and to provide funds for
19payment of obligations, including the funding of reserves,
20under any self-insurance plan or joint self-insurance pool or
21entity.
22    In addition to any other borrowing as may be authorized by
23this Section, the Authority may issue its notes, from time to
24time, in anticipation of tax receipts of the Authority or of
25other revenues or receipts of the Authority, in order to
26provide money for the Authority or the Service Boards to cover

 

 

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1any cash flow deficit which the Authority or a Service Board
2anticipates incurring. Any such notes are referred to in this
3Section as "Working Cash Notes". No Working Cash Notes shall be
4issued for a term of longer than 24 months. Proceeds of Working
5Cash Notes may be used to pay day to day operating expenses of
6the Authority or the Service Boards, consisting of wages,
7salaries and fringe benefits, professional and technical
8services (including legal, audit, engineering and other
9consulting services), office rental, furniture, fixtures and
10equipment, insurance premiums, claims for self-insured amounts
11under insurance policies, public utility obligations for
12telephone, light, heat and similar items, travel expenses,
13office supplies, postage, dues, subscriptions, public hearings
14and information expenses, fuel purchases, and payments of
15grants and payments under purchase of service agreements for
16operations of transportation agencies, prior to the receipt by
17the Authority or a Service Board from time to time of funds for
18paying such expenses. In addition to any Working Cash Notes
19that the Board of the Authority may determine to issue, the
20Suburban Bus Board, the Commuter Rail Board or the Board of the
21Chicago Transit Authority may demand and direct that the
22Authority issue its Working Cash Notes in such amounts and
23having such maturities as the Service Board may determine.
24    Notwithstanding any other provision of this Act, any
25amounts necessary to pay principal of and interest on any
26Working Cash Notes issued at the demand and direction of a

 

 

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1Service Board or any Working Cash Notes the proceeds of which
2were used for the direct benefit of a Service Board or any
3other Bonds or Notes of the Authority the proceeds of which
4were used for the direct benefit of a Service Board shall
5constitute a reduction of the amount of any other funds
6provided by the Authority to that Service Board. The Authority
7shall, after deducting any costs of issuance, tender the net
8proceeds of any Working Cash Notes issued at the demand and
9direction of a Service Board to such Service Board as soon as
10may be practicable after the proceeds are received. The
11Authority may also issue notes or bonds to pay, refund or
12redeem any of its notes and bonds, including to pay redemption
13premiums or accrued interest on such bonds or notes being
14renewed, paid or refunded, and other costs in connection
15therewith. The Authority may also utilize the proceeds of any
16such bonds or notes to pay the legal, financial, administrative
17and other expenses of such authorization, issuance, sale or
18delivery of bonds or notes or to provide or increase a debt
19service reserve fund with respect to any or all of its bonds or
20notes. The Authority may also issue and deliver its bonds or
21notes in exchange for any public transportation facilities,
22(including funds and rights relating thereto, as provided in
23Section 2.05 of this Act) or in exchange for outstanding bonds
24or notes of the Authority, including any accrued interest or
25redemption premium thereon, without advertising or submitting
26such notes or bonds for public bidding.

 

 

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1    (b) The ordinance providing for the issuance of any such
2bonds or notes shall fix the date or dates of maturity, the
3dates on which interest is payable, any sinking fund account or
4reserve fund account provisions and all other details of such
5bonds or notes and may provide for such covenants or agreements
6necessary or desirable with regard to the issue, sale and
7security of such bonds or notes. The rate or rates of interest
8on its bonds or notes may be fixed or variable and the
9Authority shall determine or provide for the determination of
10the rate or rates of interest of its bonds or notes issued
11under this Act in an ordinance adopted by the Authority prior
12to the issuance thereof, none of which rates of interest shall
13exceed that permitted in the Bond Authorization Act. Interest
14may be payable at such times as are provided for by the Board.
15Bonds and notes issued under this Section may be issued as
16serial or term obligations, shall be of such denomination or
17denominations and form, including interest coupons to be
18attached thereto, be executed in such manner, shall be payable
19at such place or places and bear such date as the Authority
20shall fix by the ordinance authorizing such bond or note and
21shall mature at such time or times, within a period not to
22exceed forty years from the date of issue, and may be
23redeemable prior to maturity with or without premium, at the
24option of the Authority, upon such terms and conditions as the
25Authority shall fix by the ordinance authorizing the issuance
26of such bonds or notes. No bond anticipation note or any

 

 

10000HB3005ham002- 23 -LRB100 09021 RJF 24127 a

1renewal thereof shall mature at any time or times exceeding 5
2years from the date of the first issuance of such note. The
3Authority may provide for the registration of bonds or notes in
4the name of the owner as to the principal alone or as to both
5principal and interest, upon such terms and conditions as the
6Authority may determine. The ordinance authorizing bonds or
7notes may provide for the exchange of such bonds or notes which
8are fully registered, as to both principal and interest, with
9bonds or notes which are registerable as to principal only. All
10bonds or notes issued under this Section by the Authority other
11than those issued in exchange for property or for bonds or
12notes of the Authority shall be sold at a price which may be at
13a premium or discount but such that the interest cost
14(excluding any redemption premium) to the Authority of the
15proceeds of an issue of such bonds or notes, computed to stated
16maturity according to standard tables of bond values, shall not
17exceed that permitted in the Bond Authorization Act. The
18Authority shall notify the Governor's Office of Management and
19Budget and the State Comptroller at least 30 days before any
20bond sale and shall file with the Governor's Office of
21Management and Budget and the State Comptroller a certified
22copy of any ordinance authorizing the issuance of bonds at or
23before the issuance of the bonds. After December 31, 1994, any
24such bonds or notes shall be sold to the highest and best
25bidder on sealed bids as the Authority shall deem. As such
26bonds or notes are to be sold the Authority shall advertise for

 

 

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1proposals to purchase the bonds or notes which advertisement
2shall be published at least once in a daily newspaper of
3general circulation published in the metropolitan region at
4least 10 days before the time set for the submission of bids.
5The Authority shall have the right to reject any or all bids.
6Notwithstanding any other provisions of this Section, Working
7Cash Notes or bonds or notes to provide funds for
8self-insurance or a joint self-insurance pool or entity may be
9sold either upon competitive bidding or by negotiated sale
10(without any requirement of publication of intention to
11negotiate the sale of such Notes), as the Board shall determine
12by ordinance adopted with the affirmative votes of at least 9
13Directors. In case any officer whose signature appears on any
14bonds, notes or coupons authorized pursuant to this Section
15shall cease to be such officer before delivery of such bonds or
16notes, such signature shall nevertheless be valid and
17sufficient for all purposes, the same as if such officer had
18remained in office until such delivery. Neither the Directors
19of the Authority nor any person executing any bonds or notes
20thereof shall be liable personally on any such bonds or notes
21or coupons by reason of the issuance thereof.
22    (c) All bonds or notes of the Authority issued pursuant to
23this Section shall be general obligations of the Authority to
24which shall be pledged the full faith and credit of the
25Authority, as provided in this Section. Such bonds or notes
26shall be secured as provided in the authorizing ordinance,

 

 

10000HB3005ham002- 25 -LRB100 09021 RJF 24127 a

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

 

 

10000HB3005ham002- 26 -LRB100 09021 RJF 24127 a

1provisions as part of the contract with the holders of the
2bonds or notes, for the creation of a separate fund to provide
3for the payment of principal and interest on such bonds or
4notes and for the deposit in such fund from any or all the tax
5receipts of the Authority and from any or all such other moneys
6or revenues of the Authority from whatever source which may by
7law be utilized for debt service purposes, all as provided in
8such ordinance, of amounts to meet the debt service
9requirements on such bonds or notes, including principal and
10interest, and any sinking fund or reserve fund account
11requirements as may be provided by such ordinance, and all
12expenses incident to or in connection with such fund and
13accounts or the payment of such bonds or notes. Such ordinance
14may also provide limitations on the issuance of additional
15bonds or notes of the Authority. No such bonds or notes of the
16Authority shall constitute a debt of the State of Illinois.
17Nothing in this Act shall be construed to enable the Authority
18to impose any ad valorem tax on property.
19    (d) The ordinance of the Authority authorizing the issuance
20of any bonds or notes may provide additional security for such
21bonds or notes by providing for appointment of a corporate
22trustee (which may be any trust company or bank having the
23powers of a trust company within the state) with respect to
24such bonds or notes. The ordinance shall prescribe the rights,
25duties and powers of the trustee to be exercised for the
26benefit of the Authority and the protection of the holders of

 

 

10000HB3005ham002- 27 -LRB100 09021 RJF 24127 a

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

 

 

10000HB3005ham002- 28 -LRB100 09021 RJF 24127 a

1contract with the holders of the bonds or notes, that as long
2as such obligations are outstanding, it shall make such
3deposits, as provided in paragraph (c) of this Section. It may
4also so covenant that it shall impose and continue to impose
5taxes, as provided in Section 4.03 of this Act and in addition
6thereto as subsequently authorized by law, sufficient to make
7such deposits and pay the principal and interest and to meet
8other debt service requirements of such bonds or notes as they
9become due. A certified copy of the ordinance authorizing the
10issuance of any such obligations shall be filed at or prior to
11the issuance of such obligations with the Comptroller of the
12State of Illinois and the Illinois Department of Revenue.
13    (f) The State of Illinois pledges to and agrees with the
14holders of the bonds and notes of the Authority issued pursuant
15to this Section that the State will not limit or alter the
16rights and powers vested in the Authority by this Act so as to
17impair the terms of any contract made by the Authority with
18such holders or in any way impair the rights and remedies of
19such holders until such bonds and notes, together with interest
20thereon, with interest on any unpaid installments of interest,
21and all costs and expenses in connection with any action or
22proceedings by or on behalf of such holders, are fully met and
23discharged. In addition, the State pledges to and agrees with
24the holders of the bonds and notes of the Authority issued
25pursuant to this Section that the State will not limit or alter
26the basis on which State funds are to be paid to the Authority

 

 

10000HB3005ham002- 29 -LRB100 09021 RJF 24127 a

1as provided in this Act, or the use of such funds, so as to
2impair the terms of any such contract. The Authority is
3authorized to include these pledges and agreements of the State
4in any contract with the holders of bonds or notes issued
5pursuant to this Section.
6    (g)(1) Except as provided in subdivisions (g)(2) and (g)(3)
7of Section 4.04 of this Act, the Authority shall not at any
8time issue, sell or deliver any bonds or notes (other than
9Working Cash Notes) pursuant to this Section 4.04 which will
10cause it to have issued and outstanding at any time in excess
11of $800,000,000 of such bonds and notes (other than Working
12Cash Notes). The Authority shall not issue, sell, or deliver
13any Working Cash Notes pursuant to this Section that will cause
14it to have issued and outstanding at any time in excess of
15$100,000,000. However, the Authority may issue, sell, and
16deliver additional Working Cash Notes before July 1, 2018 that
17are over and above and in addition to the $100,000,000
18authorization such that the outstanding amount of these
19additional Working Cash Notes does not exceed at any time
20$300,000,000. Bonds or notes which are being paid or retired by
21such issuance, sale or delivery of bonds or notes, and bonds or
22notes for which sufficient funds have been deposited with the
23paying agency of such bonds or notes to provide for payment of
24principal and interest thereon or to provide for the redemption
25thereof, all pursuant to the ordinance authorizing the issuance
26of such bonds or notes, shall not be considered to be

 

 

10000HB3005ham002- 30 -LRB100 09021 RJF 24127 a

1outstanding for the purposes of this subsection.
2    (2) In addition to the authority provided by paragraphs (1)
3and (3), the Authority is authorized to issue, sell and deliver
4bonds or notes for Strategic Capital Improvement Projects
5approved pursuant to Section 4.13 as follows:
6        $100,000,000 is authorized to be issued on or after
7    January 1, 1990;
8        an additional $100,000,000 is authorized to be issued
9    on or after January 1, 1991;
10        an additional $100,000,000 is authorized to be issued
11    on or after January 1, 1992;
12        an additional $100,000,000 is authorized to be issued
13    on or after January 1, 1993;
14        an additional $100,000,000 is authorized to be issued
15    on or after January 1, 1994; and
16        the aggregate total authorization of bonds and notes
17    for Strategic Capital Improvement Projects as of January 1,
18    1994, shall be $500,000,000.
19    The Authority is also authorized to issue, sell, and
20deliver bonds or notes in such amounts as are necessary to
21provide for the refunding or advance refunding of bonds or
22notes issued for Strategic Capital Improvement Projects under
23this subdivision (g)(2), provided that no such refunding bond
24or note shall mature later than the final maturity date of the
25series of bonds or notes being refunded, and provided further
26that the debt service requirements for such refunding bonds or

 

 

10000HB3005ham002- 31 -LRB100 09021 RJF 24127 a

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

 

 

10000HB3005ham002- 32 -LRB100 09021 RJF 24127 a

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

 

 

10000HB3005ham002- 33 -LRB100 09021 RJF 24127 a

1    Authority;
2        (2) in the second year after default, two-thirds of the
3    total amount of any payments of State funds to the
4    Authority; and
5        (3) in the third year after default and for each year
6    thereafter until the total invested amount is repaid, the
7    total amount of any payments of State funds to the
8    Authority.
9(Source: P.A. 98-392, eff. 8-16-13; 99-238, eff. 8-3-15.)
 
10    Section 99. Effective date. This Act takes effect upon
11becoming law.".