Public Act 101-0485
 
HB2823 EnrolledLRB101 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.