Section 305.1 - Powers of the Authority; bonds(a) The Authority shall have the power to issue bonds for any of its corporate purposes: Provided, however, That the principal, interest and other charges thereon are payable solely and exclusively (i) from the income and revenues from mortgages the Authority owns and holds on industrial development projects; or (ii) from its revenues generally.(b) The bonds of the Authority shall be authorized by resolution of the board, shall be of such series, bear such date or dates, mature at such time or times, not exceeding twenty (20) years from their respective date, 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, be payable 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 revenues or receipts of the Authority as such resolution or resolutions may provide. 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 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 one or more of the officers signing such bonds or the treasurer whose facsimile signature shall be upon the coupon, shall have ceased to be such officer or officers at the time when such bonds shall actually be delivered. Said bonds may be sold at public or private sale 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 of such bonds and may contain such terms and conditions as the Authority may determine. Any bond reciting in substance that it has been issued by the Authority to aid in the financing of industrial development 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.(c) Any resolution or resolutions authorizing any bonds may contain provisions which shall be part of the contract with the holders thereof, as to (i) pledging the full faith and credit of the Authority (but not of the Commonwealth or any political subdivision thereof) for such obligations or restricting the same to all or any of the revenues or receipts of the Authority from all or any of the mortgages of the Authority; (ii) the terms and provisions of the bonds; (iii) limitations on the purposes to which the proceeds of the bonds then or thereafter to be issued may be applied; (iv) the setting aside of reserves or sinking funds and the regulation and disposition thereof; (v) limitations on the issuance of additional bonds; (vi) the terms and provisions of any indenture under which the same may be issued; and (vii) any other or additional agreements with the holders of the bonds.(d) The Authority may enter into any indentures or other agreements, with any bank or trust company, 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 (i) the application of funds and the safeguarding of funds on hand or on deposit; and (ii) 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 bondholders); and (iii) the terms and provisions of the bonds or the resolutions authorizing the issuance of the same.(e) Said bonds shall have all the qualities of negotiable instruments under the law merchant and the Uniform Commercial Code of the Commonwealth of Pennsylvania.(f) 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. In the event that the Authority shall default in the payment of principal of or interest on any of the bonds after the said principal or interest shall become due, whether at maturity or upon call for redemption and such default shall continue for a period of thirty (30) 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 (25%) in aggregate principal amount of the bonds then outstanding, by instrument or instruments filed in the office of the Recorder of Deeds of Dauphin County and proved or acknowledged in the same manner as a deed to be recorded, 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 (25%) (or such other percentage as may be specified in any indenture or other agreement aforesaid) in principal amount of the bonds then outstanding, shall be 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 act.(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 of 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 (25%) (or such other percentage as may be specified in any indenture or other agreement aforesaid) of the principal amount of the bonds then outstanding, to annul such declaration and its consequences. The Commonwealth Court shall have jurisdiction of any suit, action or proceedings, by the trustee on behalf of the bondholders. Any trustee appointed by the court or a 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 of 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 or the board might do and shall deposit all such moneys in a separate account and apply the same in such manner as the court shall direct. In any suit, action or proceeding by a trustee, the fees, 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, the revenues or receipts from which are or may be applicable to the payment of the bonds so in default. A trustee shall, in addition to the foregoing, have and possess all of the powers necessary or appropriate for the exercise of any functions 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.
1956, May 17, P.L. (1955) 1609, § 5.1, added 1973, Sept. 27, P.L. 258, No. 73, § 2.