Public Act 101-0485
Public Act 0485 101ST GENERAL ASSEMBLY
|
Public Act 101-0485
| | HB2823 Enrolled | LRB101 10036 AWJ 55138 b |
|
| AN ACT concerning local government.
| Be it enacted by the People of the State of Illinois,
| represented in the General Assembly:
| Section 5. The Metropolitan Transit Authority Act is | amended by changing Section 12a as follows:
| (70 ILCS 3605/12a) (from Ch. 111 2/3, par. 312a)
| Sec. 12a.
(a) In addition to other powers provided in | Section 12b,
the Authority may issue its notes from time to | time, in anticipation of
tax receipts of the Regional | Transportation Authority allocated to the Authority
or of other | revenues or receipts of the Authority, in order to provide | money
for the Authority to cover any cash flow deficit which | the Authority anticipates
incurring. Provided, however, that | no such notes may be issued unless the
annual cost thereof is | incorporated in a budget or revised budget of the
Authority | which has been approved by the Regional Transportation | Authority.
Any such notes are referred to as "Working Cash | Notes".
Provided further that, the board shall not issue and | have outstanding or
demand and direct that the Board of the | Regional Transportation Authority
issue and have outstanding | more than an aggregate of $40,000,000 in Working Cash Notes.
No | Working Cash
Notes shall be issued for a term of longer than 18 | months. Proceeds of Working
Cash Notes may be used to pay day |
| to day operating expenses of the Authority,
consisting of | wages, salaries and fringe benefits, professional and | technical
services (including legal, audit, engineering and | other consulting services),
office rental, furniture, fixtures | and equipment, insurance premiums, claims
for self-insured | amounts under insurance policies, public utility obligations
| for telephone, light, heat and similar items, travel expenses,
| office supplies, postage,
dues, subscriptions, public hearings | and information expenses, fuel purchases,
and payments of | grants and payments under purchase of service agreements
for | operations of transportation agencies, prior to the receipt by | the Authority
from time to time of funds for paying such | expenses. Proceeds of the Working
Cash Notes shall not be used | (i) to increase or provide a debt service
reserve fund for any | bonds or notes other than Working Cash Notes of the
same | Series, or (ii) to pay principal of or interest or redemption | premium
on any capital bonds or notes, whether as such amounts | become due or by
earlier redemption, issued by the Authority or | a transportation agency to
construct or acquire public | transportation facilities, or to provide funds
to purchase such | capital bonds or notes.
| (b) The ordinance providing for the issuance of any such | notes shall fix
the date or dates of maturity, the dates on | which interest is payable, any sinking fund
account or reserve | fund account provisions and all other details of such
notes and | may provide for such covenants or agreements necessary or |
| desirable
with regard to the issue, sale and security of such | notes. The Authority
shall determine and fix the rate or rates | of interest of its notes issued
under this Act in an ordinance | adopted by the Board prior to the issuance
thereof, none of | which rates of interest shall exceed that permitted in the Bond | Authorization Act.
Interest may be payable annually or | semi-annually, or at such other times
as determined by the | Board. Notes issued under this Section may be issued
as serial | or term obligations, shall be of such denomination or | denominations
and form, including interest coupons to be | attached thereto, be executed
in such manner, shall be payable | at such place or places and bear such date
as the Board shall | fix by the ordinance authorizing such note and shall
mature at | such time or times, within a period not to exceed 18 months | from
the date of issue, and may be redeemable prior to maturity | with or without
premium, at the option of the Board, upon such | terms and conditions as the
Board shall fix by the ordinance | authorizing the issuance of such notes.
The Board may provide | for the registration of notes in the name of the owner
as to | the principal alone or as to both principal and interest, upon | such
terms and conditions as the Board may determine. The | ordinance authorizing
notes may provide for the exchange of | such notes which are fully registered,
as to both principal and | interest, with notes which are registerable as
to principal | only. All notes issued under this Section by the Board shall
be | sold at a price which may be at a premium or discount but such |
| that the
interest cost (excluding any redemption premium) to | the Board of the proceeds
of an issue of such notes, computed | to stated maturity according to standard
tables of bond values, | shall not exceed that permitted in the Bond Authorization Act. | Such notes
shall be sold at such time or times as the Board | shall determine. The notes
may be sold either upon competitive | bidding or by negotiated sale (without
any requirement of | publication of intention to negotiate the sale of such
notes), | as the Board shall determine by ordinance adopted with the | affirmative
votes of at least 4 Directors. In case any officer | whose signature appears
on any notes or coupons authorized | pursuant to this Section shall cease
to be such officer before | delivery of such notes, such signature shall nevertheless
be | valid and sufficient for all purposes, the same as if such | officer had remained
in office until such delivery. Neither the | Directors of the Regional Transportation
Authority, the | Directors of the Authority nor any person executing any bonds
| or notes thereof shall be liable personally on any such bonds | or notes or
coupons by reason of the issuance thereof.
| (c) All notes of the Authority issued pursuant to this | Section shall be
general obligations of the Authority to which | shall be pledged the full
faith and credit of the Authority, as | provided in this Section. Such notes
shall be secured as | provided in the authorizing ordinance, which may, | notwithstanding
any other provision of this Act, include in | addition to any other security,
a specific pledge or assignment |
| of and lien on or security interest in any
or all tax receipts | of the Regional Transportation Authority allocated to
the | Authority and on any or all other revenues or moneys of the | Authority
from whatever source which may by law
be utilized for | debt service purposes and a specific pledge or assignment
of | and lien on or security interest in any funds or accounts | established
or provided for by the ordinance of the Board | authorizing the issuance of
such notes. Any such pledge, | assignment, lien or security interest for
the benefit of | holders of notes of the Authority shall be valid and binding
| from the time the notes are issued without any physical | delivery or further
act, and shall be valid and binding as | against and prior to the claims of
all other parties having | claims of any kind against the
Authority or any other person | irrespective of whether such other parties
have notice of such | pledge, assignment, lien or security interest. The
obligations | of the Authority incurred pursuant to this Section shall be
| superior to and have priority over any other obligations of the | Authority
except for obligations under Section 12. The Board | may provide in the ordinance
authorizing the issuance of any | notes issued pursuant to this Section for
the creation of, | deposits in, and regulation and disposition of sinking
fund or | reserve accounts relating to such notes. The ordinance | authorizing
the issuance of any notes pursuant to this Section | may contain provisions
as part of the contract with the holders | of the notes, for the creation
of a separate fund to provide |
| for the payment of principal and interest
on such notes and for | the deposit in such fund from any or all the tax receipts
of | the Regional Transportation Authority allocated to the | Authority and
from any or all such other moneys or revenues of | the Authority from whatever
source which may by law be utilized | for debt service purposes, all as provided
in such ordinance, | of amounts to meet the debt service requirements on such
notes, | including principal and interest, and any sinking fund or | reserve
fund account requirements as may be provided by such | ordinance, and all
expenses incident to or in connection with | such fund and accounts or the
payment of such notes. Such | ordinance may also provide limitations on the
issuance of | additional notes of the Authority. No such notes of the | Authority
shall constitute a debt of the State of Illinois.
| (d) The ordinance of the Board authorizing the issuance of | any notes may
provide additional security for such notes by | providing for appointment
of a corporate trustee (which may be | any trust company or bank having the
powers of a trust company | within the State) with respect to such notes.
The ordinance | shall prescribe the rights, duties and powers of the trustee
to | be exercised for the benefit of the Authority and the | protection of the
holders of such notes. The ordinance may | provide for the trustee to hold
in
trust, invest and use | amounts in funds and accounts created as provided
by the | ordinance with respect to the notes. The ordinance shall | provide
that amounts so paid to the trustee which are not |
| required to be deposited,
held or invested in funds and | accounts created by the ordinance with respect
to notes or used | for paying notes to be paid by the trustee to the Authority.
| (e) Any notes of the Authority issued pursuant to this | Section shall constitute
a contract between the Authority and | the holders from time to time of such
notes. In issuing any | note, the Board may include in the ordinance authorizing
such | issue a covenant as part of the contract with the holders of | the notes,
that as long as such obligations are outstanding, it | shall make such deposits,
as provided in paragraph (c) of this | Section. A certified copy of the ordinance
authorizing the | issuance of any such obligations shall be filed at or prior
to | the issuance of such obligations with the Regional | Transportation Authority,
Comptroller of the State of Illinois | and the Illinois Department of Revenue.
| (f) The State of Illinois pledges to and agrees with the | holders of the
notes of the Authority issued pursuant to this | Section that the State will
not limit or alter the rights and | powers vested in the Authority by this
Act or in the Regional | Transportation Authority by the Regional Transportation
| Authority Act so as to impair the terms of any contract made by | the Authority
with such holders or in any way impair the rights | and remedies of such holders
until such notes, together with | interest thereon, with interest on any unpaid
installments of | interest, and all costs and expenses in connection with
any | action or proceedings by or on behalf of such holders, are |
| fully met
and discharged. In addition, the State pledges to and | agrees with the holders
of the notes of the Authority issued | pursuant to this Section that the State
will not limit or alter | the basis on which State funds are to be paid to
the Authority | as provided in the Regional Transportation Authority Act,
or | the use of such funds, so as to impair the terms of any such | contract.
The Board is authorized to include these pledges and | agreements of the State
in any contract with the holders of | bonds or notes issued pursuant to this Section.
| (g) The Board shall not at any time issue, sell or deliver | any Interim
Financing Notes pursuant to this Section which will | cause it to have issued
and outstanding at any time in excess | of $40,000,000
of Working Cash Notes. Notes which are being | paid or retired by such issuance,
sale or delivery of notes, | and notes for which sufficient funds have been
deposited with | the paying agency of such notes to provide for payment of
| principal and interest thereon or to provide for the redemption | thereof,
all pursuant to the ordinance authorizing the issuance | of such notes, shall
not be considered to be outstanding for | the purposes of this paragraph.
| (h) The Board, subject to the terms of any agreements with | noteholders
as may then exist, shall have power, out of any | funds available therefor,
to purchase notes of the Authority | which shall thereupon be cancelled.
| (i) In addition to any other authority granted by law, the | State Treasurer
may, with the approval of the Governor, invest |
| or reinvest, at a price not
to exceed par, any State money in | the State Treasury which is not needed
for current expenditures | due or about to become due in Interim Financing Notes. In the | event of a default on an interim financing note issued by the | Chicago Transit Authority in which State money in the State | treasury was invested, the Treasurer may, after giving notice | to the Authority, certify to the Comptroller the amounts of the | defaulted interim financing note, in accordance with any | applicable rules of the Comptroller, and the Comptroller must | deduct and remit to the State treasury the certified amounts or | a portion of those amounts from the following proportions of | payments of State funds to the Authority:
| (1) in the first year after default, one-third of the | total amount of any payments of State funds to the | Authority; | (2) in the second year after default, two-thirds of the | total amount of any payments of State funds to the | Authority; and | (3) in the third year after default and for each year | thereafter until the total invested amount is repaid, the | total amount of any payments of State funds to the | Authority. | (Source: P.A. 100-201, eff. 8-18-17.)
| Section 10. The Regional Transportation Authority Act is | amended by changing Section 4.04 as follows:
|
| (70 ILCS 3615/4.04) (from Ch. 111 2/3, par. 704.04) | Sec. 4.04. Issuance and Pledge of Bonds and Notes. | (a) The Authority shall have the continuing power to borrow | money and to
issue its negotiable bonds or notes as provided in | this Section. Unless
otherwise indicated in this Section, the | term "notes" also includes bond
anticipation notes, which are | notes which by their terms provide for
their payment from the | proceeds of bonds thereafter to be issued. Bonds
or notes of | the Authority may be issued for any or all of the following
| purposes: to pay costs to the Authority or a Service Board of | constructing
or acquiring any public transportation facilities | (including funds and
rights relating thereto, as provided in | Section 2.05 of this Act); to repay
advances to the Authority | or a Service Board made for such purposes; to pay
other | expenses of the Authority or a Service Board incident to or | incurred
in connection with such construction or acquisition; | to provide funds for
any transportation agency to pay principal
| of or interest or redemption premium on any bonds or notes, | whether
as such amounts become due or by earlier redemption, | issued prior to the
date of this amendatory Act by such | transportation agency to construct or
acquire public | transportation facilities or to provide funds to purchase
such | bonds or notes; and to provide funds for any transportation | agency to
construct or acquire any public transportation | facilities, to repay
advances made for such purposes, and to |
| pay other expenses incident to
or incurred in connection with | such construction or acquisition; and to
provide funds for | payment of obligations, including the funding of reserves,
| under any self-insurance plan or joint self-insurance pool or | entity. | In addition to any other borrowing as may be authorized by | this Section,
the Authority may issue its notes, from time to | time, in anticipation of
tax receipts of the Authority or of | other
revenues or receipts of the Authority, in order to | provide money for the
Authority or the Service Boards to cover | any cash flow deficit which
the Authority or a Service Board | anticipates incurring. Any such notes
are referred to in this | Section as "Working Cash Notes". No Working
Cash Notes shall be | issued for a term of longer than 24
months.
Proceeds of Working | Cash Notes may be used to pay day to day operating
expenses of | the Authority or the Service Boards, consisting of wages,
| salaries and fringe benefits, professional and technical | services
(including legal, audit, engineering and other | consulting services), office
rental, furniture, fixtures and | equipment, insurance premiums, claims for
self-insured amounts | under insurance policies, public utility
obligations for | telephone, light, heat and similar items, travel expenses,
| office supplies, postage, dues, subscriptions, public hearings | and information
expenses, fuel purchases, and payments of | grants and payments under purchase
of service agreements for | operations of transportation agencies, prior to
the receipt by |
| the Authority or a Service Board from time to time of
funds for | paying such expenses. In addition to any Working Cash Notes
| that the Board of the Authority may determine to issue, the | Suburban Bus
Board, the Commuter Rail Board or the Board of the | Chicago Transit Authority
may demand and direct that the | Authority issue its Working Cash Notes in
such amounts and | having such maturities as the Service Board may determine. | Notwithstanding any other provision of this Act, any | amounts necessary to
pay principal of and interest on any
| Working Cash Notes issued at the demand
and direction of a | Service Board or any Working Cash Notes the proceeds of
which | were used for the direct benefit of a Service Board or any | other
Bonds or Notes of the Authority the proceeds of which | were used for the
direct benefit of a Service Board shall | constitute a reduction of the amount
of any other funds | provided by the Authority to that Service
Board. The Authority | shall, after deducting any costs of issuance, tender
the net | proceeds of any Working Cash Notes issued at the demand and
| direction of a Service Board to such Service Board as soon as | may be
practicable after the proceeds are received. The | Authority may also issue
notes or bonds to pay, refund or | redeem any of its notes and bonds,
including to pay redemption | premiums or accrued interest on such bonds or
notes being | renewed, paid or refunded, and other costs in connection
| therewith. The Authority may also utilize the proceeds of any | such bonds or
notes to pay the legal, financial, administrative |
| and other expenses of
such authorization, issuance, sale or | delivery of bonds or notes or to
provide or increase a debt | service reserve fund with respect to any or all
of its bonds or | notes. The Authority may also issue and deliver
its bonds or | notes in exchange for any public transportation facilities,
| (including funds and rights relating thereto, as provided in | Section
2.05 of this Act) or in exchange for outstanding bonds | or notes of the
Authority, including any accrued interest or | redemption premium thereon,
without advertising or submitting | such notes or bonds for public bidding. | (b) The ordinance providing for the issuance of any such | bonds or
notes shall fix the date or dates of maturity, the | dates on which
interest is payable, any sinking fund account or | reserve fund account
provisions and all other details of such | bonds or notes and may provide
for such covenants or agreements | necessary or desirable with regard to
the issue, sale and | security of such bonds or notes. The rate or rates of
interest | on its bonds or notes may be fixed or variable and the | Authority
shall determine or provide for the determination of | the rate or
rates of interest of its bonds or notes
issued | under this Act in an ordinance adopted by the Authority prior | to
the issuance thereof, none of which rates of interest shall | exceed
that permitted in the Bond Authorization Act. Interest | may be payable at such times as are provided for
by the Board. | Bonds and notes issued under this Section may
be issued as | serial or term obligations, shall be of such denomination
or |
| denominations and form, including interest coupons to be | attached
thereto, be executed in such manner, shall be payable | at such place or
places and bear such date as the Authority | shall fix by the ordinance
authorizing such bond or note and | shall mature at such time or times,
within a period not to | exceed forty years from the date of issue, and
may be | redeemable prior to maturity with or without premium, at the
| option of the Authority, upon such terms and conditions as the | Authority
shall fix by the ordinance authorizing the issuance | of such bonds or
notes. No bond anticipation note or any | renewal thereof shall mature at
any time or times exceeding 5 | years from the date of the first issuance
of such note. The | Authority may provide for the registration of bonds or
notes in | the name of the owner as to the principal alone or as to both
| principal and interest, upon such terms and conditions as the | Authority
may determine. The ordinance authorizing bonds or | notes may provide for
the exchange of such bonds or notes which | are fully registered, as to
both principal and interest, with | bonds or notes which are registerable
as to principal only. All | bonds or notes issued under this Section by
the Authority other | than those issued in exchange for property or for
bonds or | notes of the Authority shall be sold at a price which may be at
| a premium or discount but such that the interest cost | (excluding any
redemption premium) to the Authority of the | proceeds of an issue of such
bonds or notes, computed to stated | maturity according to standard tables
of bond values, shall not |
| exceed that permitted in the Bond Authorization
Act. The | Authority shall notify
the
Governor's Office of Management and | Budget and the State Comptroller at least 30 days
before any | bond sale and shall file with the
Governor's Office of | Management and Budget and the
State Comptroller a certified | copy of any ordinance authorizing the issuance
of bonds at or | before the issuance of the bonds.
After December 31, 1994, any | such bonds or notes shall be sold
to the highest and best | bidder on sealed bids as the Authority shall deem.
As such | bonds or notes are to be sold the Authority shall advertise for
| proposals to purchase the bonds or notes which advertisement | shall be published
at least once in a daily newspaper of | general circulation published in the
metropolitan region at | least 10 days before the time set for the submission
of bids. | The Authority shall have the right to reject any or all bids.
| Notwithstanding any other provisions of this Section, Working | Cash Notes or
bonds or notes to provide funds for | self-insurance or a joint self-insurance
pool or entity may be | sold either upon competitive bidding or by negotiated
sale
| (without any requirement of publication of intention to | negotiate the sale
of such Notes), as the Board shall determine | by ordinance adopted with the
affirmative votes of at least 9
| Directors. In case any officer whose signature
appears on any | bonds, notes or coupons authorized pursuant to this
Section | shall cease to be such officer before delivery of such bonds or
| notes, such signature shall nevertheless be valid and |
| sufficient for all
purposes, the same as if such officer had | remained in office until such
delivery. Neither the Directors | of the Authority nor any person
executing any bonds or notes | thereof shall be liable personally on any
such bonds or notes | or coupons by reason of the issuance thereof. | (c) All bonds or notes of the Authority issued pursuant to | this Section
shall be general obligations
of the Authority to | which shall be pledged the full faith and credit of the
| Authority, as provided in this Section. Such bonds or notes
| shall be secured
as provided in the authorizing ordinance, | which may, notwithstanding any other
provision of this Act, | include in addition to any other security, a specific
pledge or | assignment of and lien on or security interest in any or all | tax
receipts of the Authority and on any or all other revenues | or moneys of the
Authority from whatever source, which may by | law be utilized for debt
service purposes and a specific pledge | or assignment of and lien on or security
interest in any funds | or accounts established or provided for by the ordinance
of the | Authority authorizing the issuance of such bonds or notes. Any | such
pledge, assignment, lien or security interest for the | benefit of holders of
bonds or notes of the Authority shall be | valid and binding from the time the
bonds or notes are issued | without any physical delivery or further act
and shall be valid | and binding as against and prior to the claims of all
other | parties having claims of any kind against the Authority or any | other
person irrespective of whether such other parties have |
| notice of such pledge,
assignment, lien or security interest. | The obligations of the Authority
incurred pursuant to this | Section shall be superior to and have priority over
any other | obligations of the Authority. | The Authority may provide in the
ordinance authorizing the | issuance of any bonds or notes issued pursuant to
this Section | for the creation of, deposits in, and regulation and | disposition
of sinking fund or reserve accounts relating to | such bonds or notes. The
ordinance authorizing the issuance of | any bonds or notes pursuant to this
Section may contain | provisions as part of the contract with the holders
of the | bonds or notes, for the creation of a separate fund to provide
| for the payment of principal and interest on such bonds or | notes
and for the deposit in such fund from any or all the tax | receipts of the
Authority and from any or all such other moneys | or revenues of the
Authority from whatever source which may by | law be utilized for debt
service purposes, all as provided in | such ordinance, of amounts to meet
the debt service | requirements on such bonds or notes, including
principal and | interest, and any sinking fund or reserve fund account
| requirements as may be provided by such ordinance, and all | expenses
incident to or in connection with such fund and | accounts or the payment
of such bonds or notes.
Such ordinance | may also provide limitations on the issuance of additional
| bonds or notes of the Authority. No such bonds or notes of the | Authority
shall constitute a debt of the State of Illinois. |
| Nothing in this Act shall
be construed to enable the Authority | to impose any ad valorem tax on property. | (d) The ordinance of the Authority authorizing the issuance | of any bonds
or notes may provide additional security for such | bonds or notes by providing
for appointment of a corporate | trustee (which may be any trust company or
bank having the | powers of a trust company within the state) with respect
to | such bonds or notes. The ordinance shall prescribe the rights, | duties
and powers of the trustee to be exercised for the | benefit of the Authority
and the protection of the holders of | such bonds or notes. The ordinance
may provide for the trustee | to hold in trust, invest and use amounts in
funds and accounts | created as provided by the ordinance with respect to
the bonds | or notes. The ordinance may provide for the assignment and | direct
payment to the trustee of any or all amounts produced | from the sources
provided in Section 4.03 and Section 4.09 of | this Act and provided in Section 6z-17 of "An Act
in relation | to State finance", approved June 10, 1919, as amended.
Upon | receipt of notice of any such assignment, the Department of | Revenue and
the Comptroller of the State of Illinois shall | thereafter, notwithstanding the
provisions of Section 4.03 and | Section 4.09 of this Act and Section 6z-17 of "An Act in | relation
to State finance", approved June 10, 1919, as amended, | provide for such
assigned amounts to be paid directly to the | trustee instead of the Authority,
all in accordance with the | terms of the ordinance making the assignment. The
ordinance |
| shall provide that
amounts so paid to the trustee which are not | required to be deposited, held
or invested in funds and | accounts created by the ordinance with respect
to bonds or | notes or used for paying bonds or notes to be paid by the | trustee
to the Authority. | (e) Any bonds or notes of the Authority issued pursuant to | this
Section shall constitute a contract between the Authority | and the
holders from time to time of such bonds or notes. In | issuing any bond or
note, the Authority may include in the | ordinance authorizing such issue
a covenant as part of the | contract with the holders of the bonds or
notes, that as long | as such obligations are outstanding, it shall make
such | deposits, as provided in paragraph (c) of this Section. It may | also
so covenant that it shall impose and continue to impose | taxes, as
provided in Section 4.03 of this Act and in addition | thereto as
subsequently authorized by law, sufficient to make | such deposits and pay
the principal and interest and to meet | other debt service requirements
of such bonds or notes as they | become due. A certified copy of the
ordinance authorizing the | issuance of any such obligations shall be
filed at or prior to | the issuance of such obligations with the Comptroller
of the | State of Illinois and the Illinois Department of Revenue. | (f) The State of Illinois pledges to and agrees with the | holders of
the bonds and notes of the Authority issued pursuant | to this Section
that the State will not limit or alter the | rights and powers vested in
the Authority by this Act so as to |
| impair the terms of any contract made
by the Authority with | such holders or in any way impair the rights and
remedies of | such holders until such bonds and notes, together with
interest | thereon, with interest on any unpaid installments of interest,
| and all costs and expenses in connection with any action or | proceedings
by or on behalf of such holders, are fully met and | discharged. In
addition, the State pledges to and agrees with | the holders of the bonds
and notes of the Authority issued | pursuant to this Section that the
State will not limit or alter | the basis on which State funds are to be
paid to the Authority | as provided in this Act, or the use of such funds,
so as to | impair the terms of any such contract. The Authority is
| authorized to include these pledges and agreements of the State | in any
contract with the holders of bonds or notes issued | pursuant to this
Section. | (g)(1) Except as provided in subdivisions (g)(2) and (g)(3) | of Section
4.04 of this Act, the Authority shall not at any | time issue, sell or deliver
any bonds or notes (other than | Working Cash Notes and lines of credit) pursuant to this | Section
4.04 which will cause
it to have issued and outstanding | at any time in excess of $800,000,000 of such
bonds and notes | (other than Working Cash Notes and lines of credit).
The | Authority shall not issue, sell, or deliver any Working Cash | Notes or establish a line of credit pursuant to this Section | that will cause it to have issued and outstanding at any time | in excess of $100,000,000. However, the Authority may issue, |
| sell, and deliver additional Working Cash Notes or establish a | line of credit before July 1, 2022 2018 that are over and above | and in addition to the $100,000,000 authorization such that the | outstanding amount of these additional Working Cash Notes and | lines of credit do does not exceed at any time $300,000,000.
| Bonds or notes which are being paid or retired by
such | issuance, sale or delivery of bonds or notes, and bonds or | notes for
which sufficient funds have been deposited with the | paying agency of
such bonds or notes to provide for payment of | principal and interest
thereon or to provide for the redemption | thereof, all pursuant to the
ordinance authorizing the issuance | of such bonds or notes, shall not be
considered to be | outstanding for the purposes of this subsection. | (2) In addition to the authority provided by paragraphs
(1) | and (3), the Authority is authorized to issue, sell and deliver | bonds
or notes for Strategic Capital Improvement Projects | approved pursuant to
Section 4.13 as follows: | $100,000,000 is authorized to be issued on or after | January 1, 1990; | an additional $100,000,000 is authorized to be issued | on or after
January 1, 1991; | an additional $100,000,000 is authorized to be issued | on or after
January 1, 1992; | an additional $100,000,000 is authorized to be issued | on or after
January 1, 1993; | an additional $100,000,000 is authorized to be issued |
| on or after
January 1, 1994; and | the aggregate total authorization of bonds and notes | for Strategic
Capital Improvement Projects as of January 1, | 1994, shall be $500,000,000. | The Authority is also authorized to issue, sell, and | deliver bonds or
notes in such amounts as are necessary to | provide for the refunding or advance
refunding of bonds or | notes issued for Strategic Capital Improvement Projects
under | this subdivision (g)(2), provided that no such refunding bond | or note
shall mature later than the final maturity date of the | series of bonds or notes
being refunded, and provided further | that the debt service requirements for
such refunding bonds or | notes in the current or any future fiscal year shall
not exceed | the debt service requirements for that year on the refunded | bonds
or notes. | (3) In addition to the authority provided by paragraphs (1) | and (2),
the Authority is authorized to issue, sell, and | deliver bonds or notes for
Strategic Capital Improvement | Projects approved pursuant to Section 4.13 as
follows: | $260,000,000 is authorized to be issued on or after | January 1, 2000; | an additional $260,000,000 is authorized to be issued | on or after
January 1, 2001; | an additional $260,000,000 is authorized to be issued | on or after
January 1, 2002; | an additional $260,000,000 is authorized to be issued |
| on or after
January 1, 2003; | an additional $260,000,000 is authorized to be issued | on or after
January 1, 2004; and | the aggregate total authorization of bonds and notes | for Strategic
Capital Improvement Projects pursuant to | this paragraph (3) as of
January 1, 2004 shall be | $1,300,000,000. | The Authority is also authorized to issue, sell, and | deliver bonds or notes
in such amounts as are necessary to | provide for the refunding or advance
refunding of bonds or | notes issued for Strategic Capital Improvement projects
under | this subdivision (g)(3), provided that no such refunding bond | or note
shall mature later than the final maturity date of the | series of bonds or notes
being refunded, and provided further | that the debt service requirements for
such refunding bonds or | notes in the current or any future fiscal year shall
not exceed | the debt service requirements for that year on the refunded | bonds or
notes. | (h) The Authority, subject to the terms of any agreements | with noteholders
or bond holders as may then exist, shall have | power, out of any funds
available therefor, to purchase notes | or bonds of the Authority, which
shall thereupon be cancelled. | (i) In addition to any other authority granted by law, the | State Treasurer
may, with the approval of the Governor, invest | or reinvest, at a price not
to exceed par, any State money in | the State Treasury which is not needed
for current expenditures |
| due or about to become due in Working Cash Notes. In the event | of a default on a Working Cash Note issued by the Regional | Transportation Authority in which State money in the State | treasury was invested, the Treasurer may, after giving notice | to the Authority, certify to the Comptroller the amounts of the | defaulted Working Cash Note, in accordance with any applicable | rules of the Comptroller, and the Comptroller must deduct and | remit to the State treasury the certified amounts or a portion | of those amounts from the following proportions of payments of | State funds to the Authority: | (1) in the first year after default, one-third of the | total amount of any payments of State funds to the | Authority; | (2) in the second year after default, two-thirds of the | total amount of any payments of State funds to the | Authority; and | (3) in the third year after default and for each year | thereafter until the total invested amount is repaid, the | total amount of any payments of State funds to the | Authority. | (j) The Authority may establish a line of credit with a | bank or other financial institution as may be evidenced by the | issuance of notes or other obligations, secured by and payable | from all tax receipts of the Authority and any or all other | revenues or moneys of the Authority, in an amount not to exceed | the limitations set forth in paragraph (1) of subsection (g). |
| Money borrowed under this subsection (j) shall be used to | provide money for the Authority or the Service Boards to cover | any cash flow deficit that the Authority or a Service Board | anticipates incurring and shall be repaid within 24 months. | Before establishing a line of credit under this subsection | (j), the Authority shall authorize the line of credit by | ordinance. The ordinance shall set forth facts demonstrating | the need for the line of credit, state the amount to be | borrowed, establish a maximum interest rate limit not to exceed | the maximum rate authorized by the Bond Authorization Act, and | provide a date by which the borrowed funds shall be repaid. The | ordinance shall authorize and direct the relevant officials to | make arrangements to set apart and hold, as applicable, the | moneys that will be used to repay the borrowing. In addition, | the ordinance may authorize the relevant officials to make | partial repayments on the line of credit as the moneys become | available and may contain any other terms, restrictions, or | limitations desirable or necessary to give effect to this | subsection (j). | The Authority shall notify the Governor's Office of | Management and Budget and the State Comptroller at least 30 | days before establishing a line of credit and shall file with | the Governor's Office of Management and Budget and the State | Comptroller a certified copy of any ordinance authorizing the | establishment of a line of credit upon or before establishing | the line of credit. |
| Moneys borrowed under a line of credit pursuant to this | subsection (j) are general obligations of the Authority that | are secured by the full faith and credit of the Authority. | (Source: P.A. 98-392, eff. 8-16-13; 99-238, eff. 8-3-15.)
| Section 99. Effective date. This Act takes effect upon | becoming law.
|
Effective Date: 8/23/2019
|
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