24 Pa. Stat. § 791.6

Current through Pa Acts 2024-53, 2024-56 through 2024-92

Section 791.6 - Purposes and powers; bonds

(a) The bonds of the Authority, hereinabove referred to and authorized to be issued, shall be authorized by resolution of the board, and shall be of such series, bear such date or dates, mature at such time or times, not exceeding forty (40) years from their respective dates, bear interest at such rate or rates payable semi-annually, be in such denominations, be in such form, either coupon or fully registered without coupons, carry such registration, exchangeability and interchangeability privileges, be payable in such medium of payment, and at such place or places, be subject to such terms of redemption, at such prices not exceeding one hundred five per centum of the principal amount thereof, and be entitled to such priorities in the revenues, rentals or receipts of the Authority as such resolution or resolutions may provide. The interest on bonds issued shall be paid during the term for which the bonds were issued. The bonds shall be signed by such officers, either manually or by facsimile as the Authority shall determine, and shall have imprinted thereon a facsimile of the corporate seal, attested by the facsimile signature of the secretary and coupon bonds shall have attached thereto interest coupons bearing the facsimile signature of the treasurer of the Authority, all as may be prescribed in such resolution or resolutions. Any such bonds may be issued and delivered notwithstanding that any of the aforesaid persons signing such bonds or whose facsimile signature shall be upon the bonds or coupons shall have ceased to hold their respective offices at the time when such bonds shall actually be delivered.

Said bonds shall be sold as the Authority shall determine, at private sale or to the highest responsible bidder or bidders after public notice by advertisement; the notice shall contain a general description of the bonds, the manner, place and time of the sale, or the time limit for the receipt of proposals, the name of the officer to whom bids or proposals shall be delivered, and a statement of the terms and conditions of sale, which shall include a statement of the highest net interest cost or highest interest cost computed by the Present Worth Method, whichever is specified, acceptable to the Authority. For the purposes of this section, net interest cost shall be determined by ascertaining the total amount of interest payable with respect to the bonds, computed from the date of the bonds to the stated maturity dates thereof, plus the amount of any discount from the principal amount of the bond or less the amount of any premium in excess of the principal amount of the bonds. Pending the preparation of the definitive bonds, interim receipts may be issued to the purchaser or purchasers of such bonds, and may contain such terms and conditions as the Authority may determine.

Such bonds are hereby made securities in which all officers of the State and its political subdivisions and municipal officers and administrative departments, boards and commissions of the Commonwealth, all banks, bankers, savings banks, trust companies, saving and loan associations, investment companies, and other persons carrying on a banking business, all insurance companies, insurance associations, and other persons carrying on an insurance business, and all administrators, executors, guardians, trustees, and other fiduciaries, and all other persons whatsoever who now or may hereafter be authorized to invest in bonds or other obligations of the Commonwealth, may properly and legally invest any funds, including capital, belonging to them or within their control, and said bonds or other securities or obligations are hereby made securities which may properly and legally be deposited with, and received by, any State or municipal officers or agency of the Commonwealth for any purpose for which the deposit of bonds or other obligations of the Commonwealth is now or may hereafter be authorized by law.

(b) Any resolution or resolutions authorizing any bonds may contain provisions which shall be part of the contract with the holders thereof as to (a) pledging the full faith and credit of the Authority (but not of the Commonwealth or any county or other political subdivision thereof) for such obligations, or restricting the same to all or any of the revenues, rentals or receipts of the Authority from all or any projects or properties, (b) the construction, improvement, financing, operation, extension, enlargement, maintenance and repair, of any project or projects, and the duties of the Authority with reference thereto, (c) the terms and provisions of the bonds, (d) limitations on the purposes to which the proceeds of the bonds, then or thereafter to be issued, or of any loan or grant by the United States may be applied, (e) the rate of rentals and other charges for use of the facilities of, or for the services rendered by, the Authority, including limitations upon the power of the Authority to modify any leases or other agreements pursuant to which any rentals or other charges are payable, (f) the setting aside of reserves or sinking funds and the regulation and disposition thereof, (g) limitations on the issuance of additional bonds, (h) the terms and provisions of any deed or trust or indenture securing the bonds, or under which the same may be issued, and (i) any other or additional agreements with the holders of the bonds;

(c) The Authority may enter into any deeds of trust, indentures or other agreements with any bank or trust company, or other person or persons in the United States having power to enter into the same, including any Federal agency, as security for such bonds, and may assign and pledge all or any of the revenues, rentals or receipts of the Authority thereunder. Such deed of trust, indenture or other agreement may contain such provisions as may be customary in such instruments, or as the Authority may authorize, including (but without limitation) provisions as to (i) the construction, improvement, financing, operation, maintenance and repair of any project or projects, and the duties of the Authority with reference thereto, (ii) the application of funds and the safeguarding of funds on hand or on deposit, (iii) the rights and remedies of said trustee and the holders of the bonds (which may include restrictions upon the individual right of action of such bondholders), and (iv) the terms and provisions of the bonds, or the resolutions authorizing the issuance of the same.

Said bonds shall have all the qualities of negotiable instruments under the law merchant, and the negotiable instruments law of the Commonwealth of Pennsylvania.

24 P.S. § 791.6

1947, July 5, P.L. 1217, § 6. Amended 1949, April 20, P.L. 636, § 2; 1951, Aug. 10, P.L. 1151, § 1; 1959, Oct. 13, P.L. 1313, § 1; 1968, May 17, P.L. 124, No. 65, § 1; 1969, Oct. 22, P.L. 277, § 1; 1982, Dec. 17, P.L. 1372, No. 314, § 4, imd. effective; 1984, March 23, P.L. 138, No. 26, § 5, imd. effective.