24 Pa. Stat. § 791.5a
Any school district or districts, or any board of trustees of a community college within the Commonwealth, shall have power and authority, with the approval of the department, when necessary, to enter into loan agreements, mortgages, security agreements or any other loan contracts with the Authority for a term not exceeding forty (40) years in the case of a school district and thirty (30) years in the case of a community college and providing for the repayment of any such loans at such times and in such amounts as may be determined by the Authority. There shall be included in the annual budget of each school district or community college board of trustees which has entered into a loan contract with the Authority an amount equal to the amount due annually to the Authority under such loan contract and such amounts shall be payable out of current revenues of the school district or board of trustees of a community college. Amounts payable under such loan contracts shall be considered capital expenses for the purpose of reimbursement or payment by the Commonwealth to school districts or boards of trustees of community colleges. In all cases where a school district or the board of trustees of a community college fails to pay or provide for payment of any amount due the Authority or its assigns for any period in accordance with the terms of any loan contract entered into between the Authority and a school district or board of trustees of a community college, the Secretary of Education shall notify such school district or board of trustees of a community college of its obligation and shall withhold out of any State appropriation that may be due such school district or board of trustees of a community college an amount equal to the amount of any such payment due and owing and shall apply such amount to the payment or payments due to the Authority or its assigns.
24 P.S. § 791.5a