(a) As used in this section, unless the context clearly indicates a different meaning or intent:
(1) “Debt service requirements” has the same meaning as provided in section 13b-75;
(2) “Federal transportation bonds” means one or more special tax obligation bonds authorized to be issued pursuant to subsection (c) of this section;
(3) “Pledged revenues” has the same meaning as provided in section 13b-75;
(4) “RRIF” means the Railroad Rehabilitation and Improvement Financing program established by the Transportation Equity Act for the 21st Century, P.L. 105-178, as amended from time to time;
(5) “RRIF loan agreement” means a loan agreement or other credit agreement by and between the state as the borrower and the United States Department of Transportation as the lender, pursuant to which a loan or other form of financial assistance is made by said department to the state in accordance with RRIF;
(6) “Special Transportation Fund” means the Special Transportation Fund established pursuant to section 13b-68;
(7) “State officials” means the Treasurer, the Commissioner of Transportation and the Secretary of the Office of Policy and Management;
(8) “TIFIA” means the Transportation Infrastructure Finance and Innovation Act, P.L. 105-178, as amended from time to time; and
(9) “TIFIA loan agreement” means a loan agreement or other credit agreement by and between the state as the borrower and the United States Department of Transportation as the lender, pursuant to which a loan or other form of financial assistance is made by said department to the state in accordance with TIFIA.
(b) The state, acting through the state officials, may enter into loan agreements or other credit agreements, including, but not limited to, RRIF loan agreements and TIFIA loan agreements, with the United States Department of Transportation. The state officials (1) may execute and deliver any documents, certificates and instruments related to such agreements and the obligations issued thereunder, (2) shall determine the terms, conditions, covenants and other provisions of such agreements in the best interest of the state, and (3) may take all other actions, including, but not limited to, the preparation, execution and submission of loan applications, necessary to enter into such agreements or receive loans or other financial assistance from said department under any federal program.
(c) Special tax obligation bonds may be issued pursuant to sections 13b-74 to 13b-77, inclusive, to evidence and secure loans or other forms of financial assistance made by the United States Department of Transportation to the state under one or more federal programs, including, but not limited to, RRIF or programs established under TIFIA. Such bonds may be secured by a trust indenture by and between the state and a corporate trustee in accordance with the provisions of subsection (g) of section 13b-76.
(d) The debt service requirements and any other obligations with respect to any federal transportation bonds shall be secured by a lien on the pledged revenues as they are received by the state and credited to the Special Transportation Fund. Such lien shall be subordinate and junior in all respects to every lien on pledged revenues securing any special tax obligation bonds issued pursuant to sections 13b-74 to 13b-77, inclusive, that are not federal transportation bonds.
(e) Whenever the General Assembly authorizes special tax obligation bonds pursuant to any bond act taking effect before, on or after the effective date of this section, such authorization shall be deemed to authorize the issuance of federal transportation bonds. Such federal transportation bonds shall be subject to the requirements, covenants and conditions applicable to special tax obligation bonds as set forth in sections 13b-74 to 13b-77, inclusive, except as otherwise provided in this section.
(f) Notwithstanding the provisions of subsection (o) of section 13b-76, federal transportation bonds may be issued as taxable bonds, whereby the interest on such bonds may be includable in the gross income of the holders or owners of such bonds under the Internal Revenue Code of 1986, or any subsequent corresponding internal revenue code of the United States, as amended from time to time.
(June Sp. Sess. P.A. 17-2, S. 551.)
History: June Sp. Sess. P.A. 17-2 effective October 31, 2017.