Pennsylvania § 1521 - Bonds issuance.

§ 1521. Bonds issuance.

(a) Authorization.--The authority may issue limited obligation revenue bonds and other types of limited obligation revenue financing. Bonds issued and financing incurred pursuant to this subchapter shall be subject to the limits set forth in section 1543 (relating to indebtedness) and shall be in the name of the authority.

(b) Taxability.--The authority may issue both tax-exempt bonds and taxable bonds to fund the programs established in Subchapter E (relating to programs).

(c) Authorization requirements.--

(1) Bonds of the authority shall be authorized by a resolution of the board.

(2) The resolution of the board authorizing an issuance of bonds or the documents approved by the resolution shall provide that the bonds:

(i) be of a series;

(ii) bear a date or dates;

(iii) bear or accrue interest at any rate or rates, whether fixed or variable;

(iv) be in denominations;

(v) be in any form, either coupon or fully registered without coupons or in certificated or book-entry-only form;

(vi) carry registration, exchangeability and interchangeability privileges;

(vii) be payable in any medium of payment and at any place or places;

(viii) mature on a date or dates not to exceed 30 years from the bonds' original issue date; and

(ix) be subject to terms of redemption, if any.

(3) Bonds shall be signed by or shall bear the facsimile signature of the officer designated by the board.

(4) Interest coupons shall be attached to coupon bonds and shall bear the facsimile signature of the officer designated by the board.

(5) Bonds may be authenticated by an authenticating agent, fiscal agent or trustee.

(6) Bonds may be issued and delivered notwithstanding that the officer signing the bonds or whose facsimile signature is on a coupon has ceased to be the officer at the time when bonds are actually delivered.

(d) No debt or liability of the Commonwealth.--

(1) Bonds issued under this chapter shall not be a debt or liability of the Commonwealth and shall not create or constitute any indebtedness, liability or obligation of the Commonwealth.

(2) Bonds shall be payable solely from revenues of the authority or accounts pledged or available for their repayment as authorized in this chapter which may include any of the following:

(i) The proceeds of bonds.

(ii) Funds appropriated to the authority for repayment as authorized in this chapter.

(3) All bonds shall contain on their faces statements to the effect that:

(i) the authority is obligated to pay the principal of or the interest on the bonds only from its revenues, receipts or funds pledged or available for their payment as authorized in this chapter;

(ii) neither the Commonwealth nor any political subdivision is obligated to pay the principal or interest; and

(iii) neither the faith and credit nor the taxing power of the Commonwealth or any political subdivision is pledged to the payment of the principal of or the interest on the bonds.

(e) Sale.--

(1) Bonds may be sold at public sale, invited sale or private sale for the price or prices the authority determines.

(2) The authority shall ensure that minority-owned or minority-controlled firms have an opportunity to participate in a significant way in bonds sale activities.

(f) Interim receipts.--Pending the preparation of the definitive bonds, interim receipts may be issued to the purchaser or purchasers of the bonds and shall contain the terms and conditions established by the authority.

(g) Negotiable instruments.--Bonds of the authority shall have the qualities of negotiable instruments under 13 Pa.C.S. (relating to commercial code).

(h) Use.--The authority may, as it deems necessary and desirable, use the proceeds of bonds for any of the following:

(1) Making loans, grants or guarantees.

(2) Purchasing loans, mortgages, security interests or loan participations.

(3) Paying incidental expenses in connection with activity under paragraphs (1) and (2), including administrative costs of the authority and the department.

(4) Paying expenses of authorizing and issuing the bonds.

(5) Paying principal, redemption or purchase price and interest on bonds.

(6) Funding reserves.

(i) Refunding.--Subject to provisions of this chapter and the terms of bonds or other contractual obligations issued in accordance with this chapter, the authority may refund any outstanding debt of the authority whether the debt represents principal or interest, in whole or in part, at any time. For the purposes of this subsection, the term "refund" and its variations means the issuance and sale of obligations the proceeds of which are used or are to be used for the payment or redemption of outstanding obligations upon or prior to maturity.

Cross References. Section 1521 is referred to in section 1541 of this title.