Pennsylvania § 17308 - Provisions of bonds, trusts, indentures and mortgages.

§ 17308. Provisions of bonds, trusts, indentures and mortgages.

In connection with the issuance of bonds or the incurring of obligations under leases and in order to secure the payment of the bonds and obligations, the authority, in addition to its other powers, shall have the power to:

(1) Pledge all or part of the gross or net revenues to which the authority's right then exists or may come into existence.

(2) Mortgage all or part of the authority's real or personal property.

(3) Covenant the following:

(i) Against pledging all or part of the authority's revenues or against mortgaging all or part of the authority's real or personal property or permitting or suffering a lien on the revenues or property.

(ii) With respect to limitations on the authority's right to sell, lease or otherwise dispose of real property.

(iii) Other or additional debts or obligations incurred by the authority.

(4) Do the following:

(i) Covenant as to the bonds to be issued and as to the issuance of the bonds, in escrow or otherwise, and as to the use and disposition of the proceeds.

(ii) Provide for the replacement of lost, destroyed or mutilated bonds.

(iii) Covenant against extending the time for the payment of its bonds or interest.

(iv) Redeem the bonds and to covenant for and provide the terms and conditions for redemption.

(5) Do the following:

(i) Covenant as to the amount and the use and disposition of revenues to be raised each year or other period of time by the authority.

(ii) Create or authorize the creation of special funds for debt service or other purposes.

(iii) Covenant as to the use and disposition of the money held in the funds for debt service or other purposes.

(6) Prescribe the procedure, if any, by which the terms of a contract with bondholders may be amended or abrogated, the amount of bonds, to which bondholders must consent, and the manner in which consent may be given.

(7) Do the following:

(i) Covenant as to the use of its real or personal property.

(ii) Warrant its title.

(iii) Covenant as to the maintenance and replacement of its real and personal property, the insurance to be carried on the property and the use and disposition of insurance money.

(8) Do the following:

(i) Covenant as to the rights, liabilities, powers and duties arising upon the breach by it of any covenant, condition or obligation.

(ii) Covenant and prescribe in the event of default as to terms and conditions upon which authority bonds or obligations are due before maturity and as to the terms and conditions upon which a declaration and its consequences may be waived.

(9) Do the following:

(i) Vest in a trustee or bondholders or any proportion of the bondholders the right to enforce the payment of the bonds or any covenants securing or relating to the bonds and vest in a trustee the right in the event of a default by the authority to take possession and use, operate and manage any real property and collect the rents and revenues that arise from the real property and to dispose of the money collected in accordance with the agreement of the authority with the trustee.

(ii) Provide for the powers and duties of a trustee and limit the trustee's liabilities.

(iii) Provide the terms and conditions upon which the trustee or bondholders or any proportion of bondholders may enforce covenants or rights securing or relating to the bonds.

(10) Obtain letters of credit and bond insurance.

(11) Exercise all, any part or combination of the powers granted in this section.

(12) Make covenants other than and in addition to the covenants expressly authorized in this section.

(13) Make covenants and perform acts necessary, convenient or desirable in order to secure the authority's bonds or, in the absolute discretion of the authority, that will accomplish the purpose of this subchapter by making the bonds more marketable even if the covenants or acts may not be specifically enumerated in this section.