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Bonds - 53 Pa. Cons. Stat. § 5608

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     § 5608.  Bonds.
        (a)  Authorization.--
            (1)  A bond must be authorized by resolution of the
        board. The resolution may specify all of the following:
                (i)  Series.
                (ii)  Date of maturity not exceeding 40 years from
            date of issue.
                (iii)  Interest.
                (iv)  Denomination.
                (v)  Form, either coupon or fully registered without
            coupons.
                (vi)  Registration, exchangeability and
            interchangeability privileges.
                (vii)  Medium of payment and place of payment.
                (viii)  Terms of redemption not exceeding 105% of the
            principal amount of the bond.
                (ix)  Priorities in the revenues or receipts of the
            authority.
            (2)  A bond must be signed by or shall bear the facsimile
        signature of such officers as the authority determines.
        Coupon bonds must have attached interest coupons bearing the
        facsimile signature of the treasurer of the authority as
        prescribed in the authorizing resolution. A bond may be
        issued and delivered notwithstanding that one or more of the
        signing officers or the treasurer has ceased to be an officer
        when the bond is actually delivered. A bond must be
        authenticated by an authenticating agent, a fiscal agent or a
        trustee, if required by the authorizing resolution.
            (3)  A bond may be sold at public or private sale for a
        price determined by the authority.
            (4)  Pending the preparation of a definitive bond,
        interim receipts or temporary bonds with or without coupons
        may be issued to the purchaser and may contain terms and
        conditions as the authority determines.
        (b)  Provisions.--A resolution authorizing a bond may contain
     provisions which shall be part of the contract with the
     bondholder as to the following:
            (1)  Pledging the full faith and credit of the authority
        but not of the Commonwealth or any political subdivision for
        the bond or restricting the obligation of the authority on
        the to all or any of the revenue of the authority from all or
        any projects or properties.
            (2)  The construction, financing, improvement, operation,
        extension, enlargement, maintenance and repair of the
        project, the financing for insurance reserves and the duties
        of the authority with reference to these matters.
            (3)  Terms and provisions of the bond.
            (4)  Limitations on the purposes to which the proceeds of
        the bond or of a loan or grant by the United States may be
        applied.
            (5)  Rate of tolls and other charges for use of the
        facilities of or for the services rendered by the authority.
            (6)  The setting aside, regulation and disposition of
        reserves and sinking funds.
            (7)  Limitations on the issuance of additional bonds.
            (8)  Terms and provisions of any deed of trust or
        indenture securing the bond or under which any deed of trust
        or indenture may be issued.
            (9)  Other additional agreements with the holder of the
        bond.
        (c)  Deeds of trust.--An authority may enter into any deed of
     trust, indenture or other agreement with any bank or trust
     company or other person in the United States having power to
     enter into such an arrangement, including any Federal agency, as
     security for a bond and may assign and pledge all or any of the
     revenues or receipts of the authority under such deed, indenture
     or agreement. The deed of trust, indenture or other agreement
     may contain provisions as may be customary in such instruments
     or as the authority may authorize, including provisions as to
     the following:
            (1)  Construction, financing, improvement, operation,
        maintenance and repair of a project; financing for insurance
        reserves; and the duties of the authority with reference to
        these matters.
            (2)  Application of funds and the safeguarding of funds
        on hand or on deposit.
            (3)  Rights and remedies of trustee and bondholder,
        including restrictions upon the individual right of action of
        a bondholder.
            (4)  Terms and provisions of the bond or the resolution
        authorizing the issuance of the bond.
        (d)  Negotiability.--A bond shall have all the qualities of
     negotiable instruments under 13 Pa.C.S. Div. 3 (relating to
     negotiable instruments).
     (Dec. 17, 2001, P.L.926, No.110, eff. imd.)

        2001 Amendment.  Act 110 amended subsecs. (a)(1) intro. par.
     and (iii), (2) and (3), (b)(1) and (2) and (c), retroactive to
     June 19, 2002.
        Cross References.  Section 5608 is referred to in section
     5602 of this title.

Last modified: November 27, 2007