70 ILCS 3615/4.04
2021 Illinois Compiled Statutes|Chapter 70 - SPECIAL DISTRICTS|70 ILCS 3615/ - Regional Transportation Authority Act.|Article IV - Finances

 (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 the State Finance Act.  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 the State Finance Act, 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 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 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; andthe 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; andthe 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. 101-485, eff. 8-23-19; 102-558, eff. 8-20-21.)