Pennsylvania § 17338 - Provisions of bonds, trusts, indentures and mortgages.

§ 17338. 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 such bonds and obligations, the authority, in addition to other powers, shall have the power to:

(1) Pledge all or part of the gross or net revenues of the authority to which its right exists or may thereafter exist.

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

(3) Do the following:

(i) Covenant against pledging all or part of the authority's revenues or against mortgaging all or part of the authority's real or personal property to which the right or title exists or may thereafter exist or against permitting or suffering a lien on the revenues or property.

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

(iii) Covenant as to what other or additional debts or obligations may be incurred by it.

(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 authority bonds or interest.

(iv) Redeem the bonds and to covenant for and provide the terms and conditions for bond 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 funds under subparagraph (ii).

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

(7) Do the following:

(i) Covenant as to the use of the authority's real or personal property.

(ii) Warrant title of the property.

(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 the authority of any covenant, condition or obligation.

(ii) Covenant and prescribe in the event of default as to terms and conditions upon which the authority's bonds or obligations shall become or may be declared due before maturity and as to the terms and conditions upon which the declaration and the authority's consequences may be waived.

(9) Do the following:

(i) Vest in a trustee or the bondholders the right to enforce the payment of the bonds or any covenants securing or relating to the bonds.

(ii) 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 to collect the rents and revenues arising from the property and to dispose of the money in accordance with the agreement of the authority with the trustee.

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

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

(10) Obtain letters of credit and bond insurance.

(11) Do the following:

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

(ii) Make covenants and perform acts necessary, convenient or desirable to secure bonds or, in the absolute discretion of the authority, to accomplish the purposes of this subchapter by making the bonds more marketable regardless of whether the covenants or acts are specifically enumerated under this section.