Section 720.7 - Authority indebtedness (Adm. Code Section 2807-C)(a) The authority shall have the power and hereby is authorized from time to time, by resolution of the authority and subject to the written approval of the Governor, to issue its negotiable bonds in such principal amount as, in the opinion of the authority, shall be necessary to provide sufficient funds for any of its corporate purposes, the establishment of reserves to secure such bonds and all other expenditures of the authority incident to and necessary or convenient to carry out its corporate purposes and powers. The authority may issue its bonds to provide financial assistance for projects only after the authority has first identified and approved such projects. The aggregate principal amount of bonds and notes of the authority shall not exceed $300,000,000 outstanding at any one time.(b) The authority, whenever it deems it expedient, shall have the power to refund or renew any bonds by the issuance of new bonds whether the bonds to be refunded or renewed have or have not matured. Refunding bonds shall be sold and the proceeds applied to the purchase, redemption or payment of the bonds to be refunded.(c) Neither the members of the board of the authority nor any person executing the notes shall be liable personally on the notes or be subject to any personal liability or accountability by reason of the issuance thereof.(d) Bonds issued under the provisions of this act shall not be deemed to constitute a debt of the Commonwealth or any political subdivision thereof or a pledge of the faith and credit of the Commonwealth or of any such political subdivision.(e)(1) The bonds of the authority shall be of such series, bear date or dates, mature at such time or times, not exceeding forty years from their respective dates, bear interest at such rate or rates, payable at least semiannually, be in such denominations, be in such form, either coupon or fully registered without coupons, carry such registration, exchangeability and interchangeability privileges, by payment in medium of payment and at such place or places, be subject to such terms of redemption, with or without premium, and be entitled to such priorities in the revenue or receipts of the authority as such resolution or resolutions may provide.(2) The bonds shall be signed by or shall bear the facsimile signature of such officers as the authority shall determine and coupon bonds shall have attached thereto in interest coupons bearing the facsimile signature of the chairman of the authority, all as may be prescribed in such resolution or resolutions.(3) Bonds may be issued and delivered, notwithstanding that one or more of the officers signing such bonds shall have ceased to be such officer or officers at the time when such bonds shall actually be delivered.(4) Bonds may be sold at public or private sales for such price or prices as the authority shall determine. Pending the preparation of the definitive bonds, interim receipts may be issued to the purchaser or purchasers thereof and may contain such terms and conditions as the authority may determine.(5) Any bond reciting in substance that it has been issued by the authority to aid in the financing of one or more projects to accomplish the public purposes of this act shall be conclusively deemed in proceedings involving the validity or enforceability of such bond or security therefor to have been issued for such purpose.(f) Any resolution or resolutions authorizing any bonds may contain provisions which shall be part of the contract with holders thereof, as to: (1) pledging the full faith and credit of the authority;(2) the terms and provisions of the bonds;(3) limitations on the purposes to which the proceeds of the bonds then or thereafter to be issued may be applied;(4) the setting aside of reserves or sinking funds and the regulation and disposition thereof;(5) limitations on the issuance of additional bonds;(6) the terms and provisions of any indenture under which the same may be issued; and(7) any other or additional agreements with the holders of the bonds.(g) The authority may enter into any indentures or other agreements, with any bank or trust company within or without the Commonwealth of Pennsylvania including any Federal agency, and may assign and pledge all or any of the revenues or receipts of the authority. Such 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:(1) the application of funds and the safeguarding of funds on hand or on deposit;(2) the rights and remedies of the trustee and the holders of the bonds which may include restrictions upon the individual right of action of such holders; and(3) the terms and provisions of the bonds or any additional bonds or the resolutions authorizing the issuance of the same.(h) Said bonds shall have all the qualities of negotiable instruments under the law merchant and Title 13 of the Pennsylvania Consolidated Statutes (relating to Commercial Code).(i) The rights and remedies herein conferred upon or granted to the bondholders shall be in addition to and not in limitation of any rights and remedies lawfully granted to such bondholders by the resolution or resolutions providing for the issuance of bonds or by any indenture or other agreement under which the same may be issued.(j) In the event that the authority shall default in the payment of principal of premium, if any, or interest on any issue of bonds after the principal premium or interest shall become due, whether at maturity, upon call for redemption or otherwise and such default shall continue for a period of thirty days or in the event that the authority shall fail or refuse to comply with the provisions of this act or shall default in any agreement made with the holders of the bonds, the holders of twenty-five percent (25%) in aggregate principal amount of the bonds then outstanding of such issues, by instrument or instruments filed in the Office of the Prothonotary of the Commonwealth Court, may appoint a trustee to represent the bondholders for the purpose herein provided. Such trustee and any trustee under any indenture or other agreement, may, and upon written request of the holders of twenty-five percent (25%), or such other percentage as may be specified in any indenture or other agreement aforesaid, in principal amount of the particular issues of bonds then outstanding, shall, in his or its own name: (1) By mandamus or other suit, action or proceeding at law, or in equity, enforce all rights of the bondholders, including the right to require the authority to carry out any agreement as to or pledge of the revenues or receipts of the authority and to require the authority to carry out any other agreements with or for the benefit of the bondholders and to perform its and their duties under this article.(2) Bring suit upon the bonds.(3) By action or suit in equity require the authority to account as if it were the trustee of an express trust for the bondholders.(4) By action or suit in equity enjoin any acts or things which may be unlawful or in violation of the rights of the bondholders.(5) By notice in writing to the authority, declare all bonds due and payable and if all defaults shall be made good, then with the consent of the holders of twenty-five per cent or such other percentage as may be specified in any indenture or other agreement aforesaid of the principal amount of bonds then outstanding, to announce such declaration and its consequences.(k) The Commonwealth Court shall have jurisdiction of any suit, action or proceedings, by the trustee on behalf of the bondholders.(l)(1) Any trustee appointed by the court or trustee acting under an indenture or other agreement, and whether or not all bonds have been declared due and payable, shall be entitled as of right to the appointment of a receiver, who may exercise dominion over the mortgages or other security held by or available to the authority or any part thereof, the revenues or receipts from which are or may be applicable to the payment of the bonds so in default, and collect and receive all revenues thereafter arising therefrom in the same manner as the authority might do and shall deposit all such moneys in a separate account and apply the same in such manner as the court shall direct.(2) If any suit, action or proceeding by a trustee, the fees, the counsel fees and expenses of such trustee and of the receiver, if any, and all costs and disbursements allowed by the court shall be a first charge on any revenues and receipts derived from the mortgages of the authority or other security held by or available to the authority, the revenues or receipts from which are or may be applicable to the payment of the bonds so in default.(3) A trustee shall also have and possess all of the power necessary or appropriate for the exercise of any function specifically set forth herein or in any indenture or other agreement or incident to the general representation of the bondholders in the enforcement and protection of their rights.1929, April 9, P.L. 177, art. XXVIII-C, § 2807-C, added 1982, Dec. 14, P.L. 1213, No. 280, § 2, effective in 60 days. Amended 1983, July 20, P.L. 52, No. 26, § 1, imd. effective; 1988, Dec. 15, P.L. 1239, No. 152, § 4, effective 1/1/1989.