HB 3004 — RTA-ISSUANCE OF BONDS

HB3004 EngrossedEnrolled LRB100 08469 AWJ 18587 b AN ACT concerning local government.

Proceeds of Working Cash Notes may be used to pay day HB3004 EngrossedEnrolled - 2 - LRB100 08469 AWJ 18587 b 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.

(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 HB3004 EngrossedEnrolled - 3 - LRB100 08469 AWJ 18587 b desirable with regard to the issue, sale and security of such notes.

The ordinance authorizing notes may provide for the exchange of such notes HB3004 EngrossedEnrolled - 4 - LRB100 08469 AWJ 18587 b which are fully registered, as to both principal and interest, with notes which are registerable as to principal only.

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 HB3004 EngrossedEnrolled - 5 - LRB100 08469 AWJ 18587 b the issuance thereof.

The obligations of the Authority incurred pursuant to this Section shall be superior to and have priority over any other obligations of the HB3004 EngrossedEnrolled - 6 - LRB100 08469 AWJ 18587 b Authority except for obligations under Section 12.

(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 HB3004 EngrossedEnrolled - 7 - LRB100 08469 AWJ 18587 b within the State) with respect to such notes.

(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 HB3004 EngrossedEnrolled - 8 - LRB100 08469 AWJ 18587 b 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.

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 HB3004 EngrossedEnrolled - 9 - LRB100 08469 AWJ 18587 b of such notes, shall not be considered to be outstanding for the purposes of this paragraph.

and HB3004 EngrossedEnrolled - 10 - LRB100 08469 AWJ 18587 b (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.

to provide funds for any transportation agency to pay principal HB3004 EngrossedEnrolled - 11 - LRB100 08469 AWJ 18587 b 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;

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 HB3004 EngrossedEnrolled - 12 - LRB100 08469 AWJ 18587 b 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.

The Authority shall, after deducting any costs of issuance, tender the net proceeds of any Working Cash Notes issued at the demand and HB3004 EngrossedEnrolled - 13 - LRB100 08469 AWJ 18587 b direction of a Service Board to such Service Board as soon as may be practicable after the proceeds are received.

The rate or rates of interest on its bonds or notes may be fixed or variable and the HB3004 EngrossedEnrolled - 14 - LRB100 08469 AWJ 18587 b 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.

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 HB3004 EngrossedEnrolled - 15 - LRB100 08469 AWJ 18587 b bonds or notes which are registerable as to principal only.

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 HB3004 EngrossedEnrolled - 16 - LRB100 08469 AWJ 18587 b 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.

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 HB3004 EngrossedEnrolled - 17 - LRB100 08469 AWJ 18587 b Authority authorizing the issuance of 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 HB3004 EngrossedEnrolled - 18 - LRB100 08469 AWJ 18587 b 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.

Upon HB3004 EngrossedEnrolled - 19 - LRB100 08469 AWJ 18587 b 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.

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 HB3004 EngrossedEnrolled - 20 - LRB100 08469 AWJ 18587 b become due.

(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 HB3004 EngrossedEnrolled - 21 - LRB100 08469 AWJ 18587 b 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).

$100,000,000 is authorized to be issued on or after HB3004 EngrossedEnrolled - 22 - LRB100 08469 AWJ 18587 b January 1, 1990;

(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 HB3004 EngrossedEnrolled - 23 - LRB100 08469 AWJ 18587 b Projects approved pursuant to Section 4.13 as follows:

HB3004 EngrossedEnrolled - 24 - LRB100 08469 AWJ 18587 b (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.

and (3) in the third year after default and for each year thereafter until the total invested amount is repaid, the HB3004 EngrossedEnrolled - 25 - LRB100 08469 AWJ 18587 b total amount of any payments of State funds to the Authority.

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 HB3004 EngrossedEnrolled - 26 - LRB100 08469 AWJ 18587 b subsection (j).