Pennsylvania § 17307 - Authorization to issue bonds.

§ 17307. Authorization to issue bonds.

(a) Authorization.--

(1) The authority may authorize the issuance of bonds by resolution of the board. A resolution authorizing the issuance of bonds must specify all of the following:

(i) Series.

(ii) Date of maturity not exceeding 40 years from the date of issue.

(iii) Interest rate, as determined by the board as necessary to issue and sell the authorized bonds.

(iv) Denomination.

(v) Form, either coupon or fully registered without coupons.

(vi) Registration, exchangeability and interchangeability privileges.

(vii) Medium of payment and place of payment.

(viii) Terms of redemption.

(ix) Priorities in the revenue or receipts of the authority.

(2) The bonds shall be signed by or shall bear the facsimile signatures of officers the authority determines, and coupon bonds shall have attached to them interest coupons bearing the facsimile signature of the treasurer of the authority, and all bonds shall be authenticated by an authenticating agent, fiscal agent or trustee, as may be prescribed in a resolution of the board. The bonds may be issued and delivered regardless of whether one or more of the officers who signed the bonds or the treasurer who, by facsimile, signed the coupon are not officers at the time the bonds are delivered.

(b) Sale of bonds.--The bonds may be sold at public sale or private negotiated sale for the price or prices and at the rate of interest as the authority determines. Pending the preparation of the definitive bonds, interim receipts may be issued to the purchaser or purchasers of the bonds and may contain terms and conditions as the authority determines.

(c) Negotiability.--The bonds shall have the qualities of negotiable instruments under 13 Pa.C.S. (relating to commercial code).

(d) Use of net proceeds.--The net proceeds of the issue of bonds or notes may be used to pay the costs of the project or to reimburse costs initially paid by a State public body, the county, another political subdivision, an agency, an organization or an individual.

(e) Refunding authorized.--

(1) Subject to the provisions of the outstanding bonds, notes or other obligations and subject to the provisions of this subchapter, the authority shall have the right and power to refund outstanding debt, in whole or in part, at any time and shall have the right and power to refund outstanding notes with bonds or bonds with notes.

(2) As used in 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.