Pennsylvania § 7368 - Bonds, issue, maturity and interest.

§ 7368. Bonds, issue, maturity and interest.

(a) General rule.--As evidence of the indebtedness authorized by this subchapter, general obligation bonds of the Commonwealth shall be issued from time to time for such total amounts, in such form, in such denominations and subject to such terms and conditions of issue, redemption and maturity, rate or rates of interest and time of payment of interest, as the Governor, Auditor General and State Treasurer shall direct, except that the latest stated maturity date shall not exceed 30 years from the date of the bond first issued for each series.

(b) Facsimile signatures.--All bonds issued under the authority of this subchapter shall bear facsimile signatures of the Governor, Auditor General and State Treasurer and a facsimile of the Great Seal of the Commonwealth and shall be countersigned by two duly authorized officers of the duly authorized loan and transfer agents of the Commonwealth.

(c) Direct obligations.--All bonds issued in accordance with this subchapter shall be direct obligations of the Commonwealth, and the full faith and credit of the Commonwealth are hereby pledged for the payment of the interest thereon as the same shall become due and the payment of the principal thereof at maturity. All bonds issued under this subchapter shall be exempt from taxation for State and local purposes. The principal of and interest on such bonds shall be payable in lawful money of the United States.

(d) Types of bonds.--Bonds may be issued as coupon bonds or registered as to both principal and interest as the issuing officials may determine. If interest coupons are attached, they shall contain the facsimile signature of the State Treasurer.

(e) Authorization.--The issuing officials shall provide for the amortization of the bonds in substantial and regular amounts over the term of the debt, except that the first retirement of principal shall be stated to mature prior to the expiration of a period of time equal to one-tenth of the time from the date of the first obligation issue to evidence such debt to the date of the expiration of the term of the debt. Retirements of principal shall be regular and substantial if made in annual or semiannual amounts whether by stated serial maturities or by mandatory sinking fund retirements computed in accordance with either a level annual debt service plan, as nearly as may be, or upon the equal annual maturities plan.

(f) Preparation and printing.--The Governor, the Auditor General and the State Treasurer shall have the necessary bonds prepared and printed. Upon preparation and printing, the bonds immediately shall be deposited with the duly authorized loan and transfer agent of the Commonwealth and shall remain in the agent's possession until sold in accordance with this subchapter.