Pennsylvania § 17337 - Authority to issue bonds.

§ 17337. Authority to issue bonds.

(a) Bonds generally.--The bonds of an authority created under this subchapter and authorized to be issued:

(1) Shall be authorized by resolution of the board of the authority and shall be of a series, bear a date, mature at a time not exceeding 40 years from the respective date, bear interest at a rate as shall be determined by the board as necessary to issue and sell the authorized bonds, be in denominations, be in a form, either coupon or fully registered without coupons, carry registration, exchangeability and interchangeability privileges, be payable in a medium of payment and at a place, be subject to terms of redemption and be entitled to priorities in the revenues or receipts of the authority as the resolution may provide.

(2) Shall be signed by or shall bear the facsimile signatures of officers as the authority shall determine, and coupon bonds shall have interest coupons bearing the facsimile signature of the treasurer of the authority attached to the bond, and all bonds shall be authenticated by an authenticating agent, fiscal agent or trustee, as may be prescribed in the resolution.

(3) 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 when the bonds are delivered.

(b) Sale.--The bonds may be sold at public sale or private negotiated sale for a price or prices and at a 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 may determine.

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

(d) Proceeds.--The net proceeds of the issuance of bonds or notes may be used to pay the costs of a 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) Refund.--The following apply:

(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" 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.