Pennsylvania § 6008 - Purposes and powers; bonds.

§ 6008. Purposes and powers; bonds.

(a) Authorization.--

(1) Bonds must be authorized 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 date of issue.

(iii) Interest.

(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) Bonds must be signed by or must bear the facsimile signature of such officers as the authority determines. Coupon bonds must have attached interest coupons bearing the facsimile signature of the treasurer of the authority as prescribed in the authorizing resolution. Bonds may be issued and delivered notwithstanding that one or more of the signing officers or the treasurer has ceased to be an officer when the bonds are actually delivered. Bonds must be authenticated by an authenticating agent, a fiscal agent or a trustee, if required by the authorizing resolution.

(3) Bonds may be sold at public or private sale for a price determined by the authority. Bonds may be sold at private sale only if:

(i) the authority makes a written public explanation of the circumstances and justification for the private sale; and

(ii) the board approves the private sale by a vote of eight members of the board.

(4) Pending the preparation of definitive bonds, interim receipts may be issued to the purchaser and may contain terms and conditions as the authority determines.

(b) Negotiability.--Bonds shall have all the qualities of negotiable instruments under 13 Pa.C.S. Div. 3 (relating to negotiable instruments).

(c) Use of net proceeds.--The net proceeds of the issue of bonds or notes may be used to pay the costs of a project or to reimburse any costs initially paid by any State public body, the city, other political subdivision, agency, organization or person.

(d) Refunding authorized.--

(1) Subject to the provisions of the outstanding bonds, notes or other obligations issued under the former provisions of the act of June 27, 1986 (P.L.267, No.70), known as the Pennsylvania Convention Center Authority Act, formerly codified at 53 Pa.C.S. Ch. 59 (relating to Pennsylvania Convention Center Authority), and if not otherwise inconsistent, subject to the provisions of this chapter, the authority shall have the right and power to refund any outstanding debt, in whole or in part, at any time and shall have the right and power to refund any outstanding notes with bonds or bonds with notes.

(2) As used in this subsection, the term "refund" shall mean 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.