Sec. 13b-79r. Grant anticipation revenue vehicle bonds. Grant Anticipation Transportation Fund.
Sec. 13b-79r. Grant anticipation revenue vehicle bonds. Grant Anticipation
Transportation Fund. (a) As used in this section:
(1) "Bonds" means bonds, bond anticipation notes, notes or other evidences of
indebtedness issued pursuant to this section and, unless otherwise indicated, any bonds
issued to refund such bonds pursuant to this section.
(2) "Debt service requirements" means, for any period, the sum of (A) the principal
and interest accruing during such period with respect to bonds and, subject to the provisions of this section and the proceedings authorizing the issuance of such bonds, the
unrefunded principal accruing during such period with respect to bond anticipation
notes, (B) the purchase price of bonds which are subject to purchase or redemption at
the option of the bondowner or noteowner, (C) the amounts, if any, required during such
period to establish or maintain reserves, sinking funds or other funds or accounts at the
respective levels required to be established or maintained therein, in accordance with
the proceedings authorizing the issuance of bonds, (D) expenses of issuance and administration with respect to bonds, as determined by the Treasurer, (E) the amounts, if
any, becoming due and payable under a reimbursement agreement or similar agreement
entered into pursuant to authority granted under the proceedings authorizing the issuance
of bonds, and (F) any other costs or expenses deemed by the Treasurer to be necessary
or proper to be paid in connection with the bonds, including, without limitation, the cost
of any credit facility, including but not limited to, a letter of credit or policy of bond
insurance, issued by a financial institution pursuant to an agreement approved by the
proceedings authorizing the issuance of bonds.
(3) "Department" means the Department of Transportation.
(4) "Federal transportation funds" means funds paid or reimbursed to the department by the United States Department of Transportation including, without limitation,
future obligational authority, reimbursement funds and any other moneys payable under
Title 23 or Title 49 of the United States Code, as amended from time to time.
(5) "Federal share of principal, interest and costs" means the portion of the principal
of and interest on the bonds, and the costs associated with the issuance and administration
of such bonds, that may be paid from federal transportation funds pursuant to federal
law and any agreement between the United States Department of Transportation and
the department.
(6) "Grant Anticipation Transportation Fund" means the fund established pursuant
to subsection (b) of this section.
(7) "Pledged revenues" means, for any year, receipts of the state, including federal
transportation funds, credited to the Grant Anticipation Transportation Fund during such
year pursuant to the provisions of this section.
(8) "Proceedings" means the proceedings of the State Bond Commission authorizing or relating to the issuance of bonds pursuant to subdivision (5) of subsection (d) of
this section, the provisions of any indenture of trust securing bonds, which provisions
are incorporated into such proceedings, the provisions of any other documents or
agreements which are incorporated into such proceedings and, to the extent applicable,
a certificate of determination filed by the Treasurer in accordance with subdivision (3)
of subsection (d) of this section.
(9) "Qualified federal-aid transportation project" means any transportation cost or
transportation project that may be financed, in whole or in part, with federal transportation funds.
(10) "State Bond Commission" means the commission established under section
3-20.
(11) "State transportation costs" means (A) any and all capital costs incurred in
furtherance of the purposes set forth in this section, including any costs, expenses and
other amounts related to qualified federal aid transportation projects and state transportation projects, (B) payment of principal of and interest on bonds, (C) creation and maintenance of reserves for the payment of the principal of and interest on any such bonds,
(D) payment of expenses of administration properly chargeable to the construction or
acquisition of programs or projects included in subparagraph (A) of this subdivision,
including, without limitation, legal, architectural and engineering expenses and fees and
costs of audits, (E) payment of costs, fees and expenses which the Treasurer may deem
necessary or advantageous in connection with the authorization, sale and issuance of
bonds, including, but not limited to, underwriters' discount, and (F) payment of all other
items of expense not elsewhere specified or incurred in connection with a project or
program included in subparagraph (A) of this subdivision.
(12) "State transportation project" means any planning, capital or operating project
with regard to transportation undertaken by the state.
(b) There is established a fund to be known as the "Grant Anticipation Transportation Fund". The fund may contain any moneys required or permitted by the proceedings
to be deposited in the fund, and shall be held by the Treasurer, or the trustee under a
trust indenture or trust agreement, separate and apart from all other moneys, funds and
accounts. If held by the Treasurer, investment earnings credited to the assets of said
fund shall become part of the assets of said fund, and any balance remaining in said
fund at the end of any fiscal year shall be carried forward in said fund for the fiscal year
next succeeding.
(c) (1) (A) Prior to consideration by the State Bond Commission to authorize
bonds pursuant to this section, the Secretary of the Office of Policy and Management
and the Treasurer shall make a written determination that the issuance of bonds pursuant
to this section shall be in the best interests of the state. Once such written determination
has been provided to the State Bond Commission, the State Bond Commission shall be
authorized to issue bonds from time to time in one or more series and in principal amounts
determined by the State Bond Commission, but not to exceed $1,300,000,000 in the
aggregate, for the purpose of financing any qualified federal aid transportation project
or state transportation costs or state transportation projects secured by a pledge of and
payable from any of the following: (i) Federal transportation funds that are appropriated
on an annual basis for such purpose by the state; (ii) any proceeds of such bonds and
any earnings from the investment of such bond proceeds pledged for such purpose; or
(iii) other revenues, funds or other security, if any, pledged or appropriated for such
purpose under state law.
(B) Upon authorization of bonds by the State Bond Commission pursuant to subparagraph (A) of this subdivision, the principal amount of the bonds authorized therein for
transportation costs with respect to such projects and costs shall be deemed to be an
appropriation and allocation of such amount for such projects or costs, respectively,
and, subject to approval by the Governor of allotment thereof and to any authorization
for such projects or costs that may otherwise be required, contracts may be awarded
and obligations incurred with respect to any such projects or costs in amounts not in the
aggregate exceeding the principal amount authorized therefor, notwithstanding that such
contracts and obligations may at a particular time exceed the amount of the proceeds
from the sale of such bonds theretofore received by the state.
(C) The proceeds of bonds, including any premium received on the sale of such
bonds, shall be used to pay costs of any qualified federal aid transportation project or
state transportation cost or project or any other transportation costs, plus an amount
for issuance costs, capitalized interest, reserve funds, and other financing expenses,
including, without limitation, any original issue discount. The proceeds of bonds may
be used together with any federal, local, or private funds which may be made available
for such purpose.
(2) (A) If federal transportation funds are not sufficient to pay the federal share of
principal, interest and costs, as defined in subsection (a) of this section, when due, the
state may temporarily pay the federal share of principal, interest and costs with state
funds that the state has appropriated for this purpose.
(B) Notwithstanding the provisions of subparagraph (A) of this subdivision, any
state funds paid under subparagraph (A) of this subdivision may, if required by the
original state appropriation, be reimbursed from federal transportation funds that the
state determines are not needed in the future to pay the federal share of principal, interest
and costs.
(d) (1) Bonds issued pursuant to this section are determined to be issued for valid
public purposes in exercise of essential governmental functions. Such bonds shall be
special obligations of the state and shall not be payable from or charged upon any funds
other than the pledged revenues or other receipts, funds or moneys pledged therefor as
provided in this section, nor shall the state or any political subdivision thereof be subject
to any liability thereon, except to the extent of such pledged revenues or other receipts,
funds or moneys pledged as provided in this section. As part of the contract of the state
with the owners of said bonds, all amounts necessary for punctual payment of the debt
service requirements with respect to such bonds shall be deemed to be appropriated, but
only from the sources pledged therefor pursuant to this section, upon the authorization of
issuance of such bonds by the State Bond Commission, or the filing of a certificate of
determination by the Treasurer in accordance with the provisions of this section, and
the Treasurer shall pay such principal and interest as the same shall accrue, but only
from such sources. The issuance of bonds issued under this section shall not directly or
indirectly or contingently obligate the state or any political subdivision thereof to levy
or to pledge any form of taxation therefor, or to make any additional appropriation for
their payment. Such bonds shall not constitute a charge, lien or encumbrance, legal or
equitable, upon any property of the state or of any political subdivision thereof other than
the pledged revenues or other receipts, funds or moneys pledged therefor as provided in
this section, and the substance of such limitation shall be plainly stated on the face of
each such bond and bond anticipation note. Bonds issued pursuant to this section shall
not be subject to any statutory limitation on the indebtedness of the state, and, when
issued, shall not be included in computing the aggregate indebtedness of the state in
respect to and to the extent of any such limitation.
(2) Bonds issued pursuant to this section may be executed and delivered at such
time or times and shall be dated, bear interest at such rate or rates, including variable
rates to be determined in such manner as set forth in the proceedings authorizing the
issuance of the bonds, provide for payment of interest on such dates, whether before or
at maturity, be issued at, above or below par, mature at such time or times not exceeding
thirty years from their date, have such rank or priority, be payable in such medium of
payment, be issued in such form, including, without limitation, registered or book-entry
form, carry such registration and transfer privileges and be made subject to purchase or
redemption before maturity at such price or prices and under such terms and conditions,
including the condition that such bonds be subject to purchase or redemption on the
demand of the owner thereof, all as may be provided by the State Bond Commission.
The State Bond Commission shall determine the form of the bonds, the manner of
execution of the bonds, the denomination or denominations of the bonds and the manner
of payment of principal and interest. Prior to the preparation of definitive bonds, the
State Bond Commission may, under similar restrictions, authorize the issuance of interim receipts or temporary bonds, exchangeable for definitive bonds when such bonds
have been executed and are available for delivery. If any of the officers whose signatures
appear on the bonds cease to be officers before the delivery of any such bonds, such
signatures shall, nevertheless, be valid and sufficient for all purposes, the same as if
such officers had remained in office until delivery. Nothing in this subdivision shall
prevent any series of bonds issued under the provisions of this section from being issued
in coupon form, in which case references to the bonds in this subdivision also shall refer
to the coupons attached thereto where appropriate, and references to owners of bonds
shall include holders of such bonds where appropriate.
(3) Any bonds issued pursuant to this section may be sold at public sale on sealed
proposals or by negotiation in such manner, at such price or prices, at such time or times
and on such other terms and conditions of such bonds and the issuance and sale thereof
as the State Bond Commission may determine to be in the best interests of the state, or
the State Bond Commission may delegate to the Treasurer all or any part of the foregoing
powers, in which event the Treasurer shall exercise such powers unless the State Bond
Commission, by adoption of a resolution prior to the exercise of such powers by the
Treasurer shall elect to reassume the same. Such powers shall be exercised from time
to time in such manner as the Treasurer shall determine to be in the best interests of the
state and he or she shall file a certificate of determination setting forth the details thereof
with the secretary of the State Bond Commission on or before the date of delivery of
such bonds, the details of which were determined by him or her in accordance with such
delegation.
(4) The debt service requirements with respect to any bonds issued pursuant to this
section shall be secured by (A) a first call upon the pledged revenues as they are received
by the state and credited to the Grant Anticipation Transportation Fund established
pursuant to subsection (b) of this section, and (B) a lien upon any and all amounts held
to the credit of said Grant Anticipation Transportation Fund from time to time. Any
obligation of the state secured by said lien to pay the unrefunded principal of bond
anticipation notes, including for this purpose any obligation of the state under a reimbursement agreement entered into in connection with a credit facility providing for
payment of the unrefunded principal of bond anticipation notes, shall be subordinate to
any obligation of the state secured by said lien to pay (i) the debt service requirements
with respect to bonds, excluding bond anticipation notes, or (ii) any debt service requirements with respect to bond anticipation notes other than debt service requirements relating to unrefunded principal of bond anticipation notes or to obligations under a credit
facility for the payment of such unrefunded principal. The debt service requirements
with respect to bonds also may be secured by a pledge of reserves, sinking funds and any
other funds and accounts, including proceeds from investment of any of the foregoing,
established pursuant to this section or the proceedings authorizing the issuance of such
bonds, and by moneys paid under a credit facility, including, but not limited to, a letter
of credit or policy of bond insurance issued by a financial institution pursuant to an
agreement authorized by such proceedings.
(5) The proceedings under which bonds are authorized to be issued may, subject to
the provisions of the general statutes, contain any or all of the following: (A) Provisions
respecting custody of the proceeds from the sale of the bonds, including any requirements that such proceeds be held separate from or not be commingled with other funds
of the state; (B) provisions for the investment and reinvestment of bond proceeds until
used to pay transportation costs and for the disposition of any excess bond proceeds or
investment earnings thereon; (C) provisions for the execution of reimbursement
agreements or similar agreements in connection with credit facilities, including, but not
limited to, letters of credit or policies of bond insurance, remarketing agreements and
agreements for the purpose of moderating interest rate fluctuations, and of such other
agreements entered into pursuant to section 3-20a; (D) provisions for the collection,
custody, investment, reinvestment and use of the pledged revenues or other receipts,
funds or moneys pledged therefor, as provided in this section; (E) provisions regarding
the establishment and maintenance of reserves, sinking funds and any other funds and
accounts as shall be approved by the State Bond Commission, in such amounts as may
be established by the State Bond Commission, and the regulation and disposition thereof,
including requirements that any such funds and accounts be held separate from or not
be commingled with other funds of the state; (F) covenants for the issuance of additional
bonds or the establishment of pledged revenue coverage requirements for the bonds;
(G) covenants for the establishment of maintenance requirements with respect to state
transportation facilities and properties; (H) provisions for the issuance of additional
bonds on a parity with bonds theretofore issued, including establishment of additional
bonds and coverage requirements with respect thereto as provided in this subdivision;
(I) provisions regarding the rights and remedies available in case of a default to the
bondowners, noteowners or any trustee under any contract, loan agreement, document,
instrument or trust indenture, including the right to appoint a trustee to represent their
interests upon occurrence of an event of default, as defined in said proceedings, provided
if any bonds shall be secured by a trust indenture, the respective owners of such bonds
shall have no authority except as set forth in such trust indenture to appoint a separate
trustee to represent them; and (J) provisions or covenants of like or different character
from the foregoing which are consistent with this section, and which the State Bond
Commission determines in such proceedings are necessary, convenient or desirable in
order to better secure the bonds, or will tend to make the bonds more marketable, and
which are in the best interests of the state. Any provision which may be included in
proceedings authorizing the issuance of bonds hereunder may be included in an indenture of trust duly approved in accordance with subdivision (7) of this subsection which
secures the bonds and any notes issued in anticipation thereof, and in such case the
provisions of such indenture shall be deemed to be a part of such proceedings as though
they were expressly included therein.
(6) Any pledge made by the state shall be valid and binding from the time when
the pledge is made, and any revenues or other receipts, funds or moneys so pledged and
thereafter received by the state shall be subject immediately to the lien of such pledge
without any physical delivery thereof or further act. The lien of any such pledge shall
be valid and binding as against all parties having claims of any kind in tort, contract or
otherwise against the state, irrespective of whether such parties have notice thereof.
Neither the resolution nor any other instrument by which a pledge is created need be
recorded.
(7) In the discretion of the State Bond Commission, bonds issued pursuant to this
section may be secured by a trust indenture by and between the state and a corporate
trustee, which may be any trust company or bank having the powers of a trust company
within or without the state. Such trust indenture may contain such provisions for protecting and enforcing the rights and remedies of the bondowners and noteowners as may
be reasonable and proper and not in violation of law, including covenants setting forth
the duties of the state in relation to the exercise of its powers pursuant to the provisions
of this section and the custody, safeguarding and application of all moneys. The state
may provide by such trust indenture for the payment of the pledged revenues or other
receipts, funds or moneys to the trustee under such trust indenture or to any other depository, and for the method of disbursement thereof, with such safeguards and restrictions
as it may determine. All expenses incurred in carrying out such trust indenture may be
treated as state transportation costs, as defined in subsection (a) of this section.
(8) The Treasurer shall have power to purchase bonds of the state issued pursuant
to this section out of any funds available therefor. The Treasurer may hold, pledge, cancel
or resell such bonds subject to and in accordance with agreements with bondowners or
noteowners.
(9) Whether or not the bonds issued pursuant to this section are of such form and
character as to be negotiable instruments under the terms of the Uniform Commercial
Code, such bonds are hereby made negotiable instruments within the meaning of and
for all purposes of the Uniform Commercial Code, subject only to the provisions of
such bonds for registration.
(10) The proceeds of bonds issued pursuant to this section may be used to pay only
state transportation costs. Costs incurred relating to any of the purposes for which bonds
may be issued pursuant to the provisions of this section shall be deemed state transportation costs. Nothing in this subsection shall limit the issuance of refunding bonds pursuant
to this section.
(11) Any moneys held by the Treasurer or by a trustee pursuant to a trust indenture
with respect to bonds issued pursuant to this section, including pledged revenues, other
pledged receipts, funds or moneys and proceeds from the sale of such bonds, may,
pending the use or application of the proceeds thereof for an authorized purpose, be (A)
invested and reinvested in such obligations, securities and investments as are set forth
in subsection (f) of section 3-20, and in participation certificates in the Short Term
Investment Fund created under section 3-27a, or (B) deposited or redeposited in such
bank or banks as shall be provided in the resolution authorizing the issuance of such
bonds, the certificate of determination authorizing issuance of bond anticipation notes,
or in the indenture securing such bonds. Proceeds from investments authorized by this
subparagraph, less amounts required under the proceedings authorizing the issuance of
bonds for the payment of transportation costs relating to such bonds, shall be credited to
the Grant Anticipation Transportation Fund created under subsection (b) of this section.
(12) Any bonds issued under the provisions of this section, and at any time outstanding may, at any time and from time to time, be refunded by the state by the issuance of
its refunding bonds in such amounts as the State Bond Commission may deem necessary,
but not to exceed an amount sufficient to (A) refund the principal of the bonds to be so
refunded, (B) pay any unpaid interest on such bonds and any premiums and commissions
necessary to be paid in connection with such bonds, and (C) pay costs and expenses
which the Treasurer may deem necessary or advantageous in connection with the authorization, sale and issuance of refunding bonds. Any such refunding may be effected
whether the bonds to be refunded shall have matured or shall thereafter mature. All
refunding bonds issued under this subdivision shall be payable solely from the revenues
or other receipts, funds or moneys out of which the bonds to be refunded thereby are
payable, and shall be subject to and may be secured in accordance with the provisions
of this section.
(13) Whenever the issuance of bonds has been authorized pursuant to this section,
the Treasurer may, pending the issuance thereof, and, subject to any applicable terms
or provisions of the proceedings authorizing such issuances, issue, in the name of the
state, bond anticipation notes and any renewals thereof. Notes evidencing such borrowings shall be designated "bond anticipation notes" and shall be signed by the Treasurer or his or her deputy. The principal of and interest on any bond anticipation notes
issued pursuant to this subdivision may be repaid from pledged revenues or other pledged
receipts, funds or moneys, to the extent not paid from the proceeds of renewals thereof
or of the bonds. Upon the sale of the bonds, the proceeds thereof, to the extent required,
shall be applied forthwith to the payment of the principal of and interest on any bond
anticipation notes or shall be deposited in trust for such purpose. The date or dates of
such bond anticipation notes, the maturities, denominations, form, details and other
particulars of such bond anticipation notes, including the method, terms and conditions
for the issue and sale thereof, shall be determined by the Treasurer in the best interest
of the state. The Treasurer shall file with the secretary of the State Bond Commission
on or before the date of delivery of such bond anticipation notes a certificate of determination setting forth the specific details and particulars of each issue of bond anticipation
notes, including renewals thereof.
(14) The State Bond Commission may make representations and agreements for
the benefit of the holders of bonds issued pursuant to this section which are necessary
or appropriate to ensure the exemption of interest on such bonds from taxation under
the Internal Revenue Code of 1986, or any subsequent corresponding internal revenue
code of the United States, as from time to time amended including agreements to pay
rebates to the federal government of investment earnings derived from the investment
of the proceeds of bonds, or may delegate to the Treasurer the authority to make such
representations and agreements on behalf of the state. Any such agreement may include
(A) a covenant to pay rebates to the federal government of investment earnings derived
from the investment of the proceeds of bonds, (B) a covenant that the state will not limit
or alter its rebate obligations until its obligations to the holders or owners of such bonds
are finally met and discharged, and (C) provisions to (i) establish trust and other accounts
which may be appropriate to carry out such representations and agreements, (ii) retain
fiscal agents as depositories for such funds and accounts, and (iii) provide that such
fiscal agents may act as trustee of such funds and accounts. The State Bond Commission
may also authorize, by a vote of a majority of the members of said commission, bonds
issued pursuant to the provisions of this section in such form and manner that the interest
on such bonds may be includable under the Internal Revenue Code of 1986, or any
subsequent corresponding internal revenue code of the United States, as from time to
time amended, in the gross income of the holders or owners of such bonds upon the
finding by said commission that the issuance of such taxable bonds is in the public
interest.
(e) (1) The state covenants with the purchasers and all subsequent owners and transferees of bonds issued by the state pursuant to this section in consideration of the acceptance of and payment for the bonds, that the principal and interest of such bonds shall
be free at all times from taxation, except for estate and gift taxes, imposed by the state
or by any political subdivision thereof. The Treasurer is authorized to include this covenant of the state in any agreement with the owner of any such bonds.
(2) Bonds issued pursuant to this section are hereby made securities in which all
public officers and public bodies of the state and its political subdivisions, all insurance
companies, credit unions, building and loan associations, investment companies, banking associations, trust companies, executors, administrators, trustees and other fiduciaries and pension, profit-sharing and retirement funds may properly and legally invest
funds, including capital in their control or belonging to them. Such bonds are hereby
made securities which may properly and legally be deposited with and received by any
state or municipal officer or any agency or political subdivision of the state for any
purpose for which the deposit of bonds or obligations of the state is now or may hereafter
be authorized by law.
(3) The state covenants with the purchasers and all subsequent owners and transferees of bonds issued by the state pursuant to this section, in consideration of the acceptance
of the payment for the bonds, until such bonds, together with the interest thereon, with
interest on any unpaid installment of interest and all costs and expenses in connection
with any action or proceeding on behalf of such owners, are fully met and discharged,
or unless expressly permitted or otherwise authorized by the terms of each contract and
agreement made or entered into by or on behalf of the state with or for the benefit of
such owners, that the state will collect and apply the pledged revenues and other receipts,
funds or moneys pledged for the payment of debt service requirements as provided in
this section, in such amounts as may be necessary to pay such debt service requirements
in each year in which bonds are outstanding and further, that the state: (A) Will not
limit or alter the duties imposed on the Treasurer and other officers of the state by the
provisions of this section and by the proceedings authorizing the issuance of bonds with
respect to application of pledged revenues or other receipts, funds or moneys pledged
for the payment of debt service requirements as provided by the provisions of this section; (B) will not issue any bonds, notes or other evidences of indebtedness, other than
the bonds, having any rights arising out of this section or secured by any pledge of or
other lien or charge on the pledged revenues or other receipts, funds or moneys pledged
for the payment of debt service requirements as provided in this section; (C) will not
create or cause to be created any lien or charge on such pledged amounts, other than a
lien or pledge created thereon pursuant to this section, provided nothing in this section
shall prevent the state from issuing evidences of indebtedness (i) which are secured by
a pledge or lien which is and shall on the face thereof be expressly subordinate and
junior in all respects to every lien and pledge created by or pursuant to this section; (ii)
for which the full faith and credit of the state is pledged and which are not expressly
secured by any specific lien or charge on such pledged amounts; or (iii) which are secured
by a pledge of or lien on moneys or funds derived on or after such date as every pledge
or lien thereon created by or pursuant to this section shall be discharged and satisfied;
(D) will carry out and perform, or cause to be carried out and performed, each and every
promise, covenant, agreement or contract made or entered into by the state or on its
behalf with the owners of any bonds; (E) will not in any way impair the rights, exemptions
or remedies of such owners; and (F) will not limit, modify, rescind, repeal or otherwise
alter the rights or obligations of the appropriate officers of the state to collect the receipts
constituting the pledged revenues as may be necessary to produce sufficient revenues
to fulfill the terms of the proceedings authorizing the issuance of the bonds. The State
Bond Commission is authorized to include this covenant of the state in any agreement
with the owner of any such bonds.
(P.A. 06-136, S. 10; 06-187, S. 20; 06-196, S. 288.)
History: P.A. 06-136 effective July 1, 2006; P.A. 06-187 and P.A. 06-196 both made identical technical changes in
Subsec. (a)(8), effective July 1, 2006.