


                               SUBCHAPTER C
                                  BONDS

     Sec.
     1521.  Bonds issuance.
     1522.  Commonwealth taxation.
     1523.  Federal taxation.
     1524.  Validity of bonds; limitation on actions.
     1525.  Provisions of bonds; trust agreements.
     1526.  Validity of pledge.
     1527.  Commonwealth pledges.
     1528.  Bonds to be legal investments.
     1529.  Rights and remedies of obligees.
     § 1521.  Bonds issuance.
        (a)  Authorization.--The authority may issue limited
     obligation revenue bonds and other types of limited obligation
     revenue financing. Bonds issued and financing incurred pursuant
     to this subchapter shall be subject to the limits set forth in
     section 1543 (relating to indebtedness) and shall be in the name
     of the authority.
        (b)  Taxability.--The authority may issue both tax-exempt
     bonds and taxable bonds to fund the programs established in
     Subchapter E (relating to programs).
        (c)  Authorization requirements.--
            (1)  Bonds of the authority shall be authorized by a
        resolution of the board.
            (2)  The resolution of the board authorizing an issuance
        of bonds or the documents approved by the resolution shall
        provide that the bonds:
                (i)  be of a series;
                (ii)  bear a date or dates;
                (iii)  bear or accrue interest at any rate or rates,
            whether fixed or variable;
                (iv)  be in denominations;
                (v)  be in any form, either coupon or fully
            registered without coupons or in certificated or book-
            entry-only form;
                (vi)  carry registration, exchangeability and
            interchangeability privileges;
                (vii)  be payable in any medium of payment and at any
            place or places;
                (viii)  mature on a date or dates not to exceed 30
            years from the bonds' original issue date; and
                (ix)  be subject to terms of redemption, if any.
            (3)  Bonds shall be signed by or shall bear the facsimile
        signature of the officer designated by the board.
            (4)  Interest coupons shall be attached to coupon bonds
        and shall bear the facsimile signature of the officer
        designated by the board.
            (5)  Bonds may be authenticated by an authenticating
        agent, fiscal agent or trustee.
            (6)  Bonds may be issued and delivered notwithstanding
        that the officer signing the bonds or whose facsimile
        signature is on a coupon has ceased to be the officer at the
        time when bonds are actually delivered.
        (d)  No debt or liability of the Commonwealth.--
            (1)  Bonds issued under this chapter shall not be a debt
        or liability of the Commonwealth and shall not create or
        constitute any indebtedness, liability or obligation of the
        Commonwealth.
            (2)  Bonds shall be payable solely from revenues of the
        authority or accounts pledged or available for their
        repayment as authorized in this chapter which may include any
        of the following:
                (i)  The proceeds of bonds.
                (ii)  Funds appropriated to the authority for
            repayment as authorized in this chapter.
            (3)  All bonds shall contain on their faces statements to
        the effect that:
                (i)  the authority is obligated to pay the principal
            of or the interest on the bonds only from its revenues,
            receipts or funds pledged or available for their payment
            as authorized in this chapter;
                (ii)  neither the Commonwealth nor any political
            subdivision is obligated to pay the principal or
            interest; and
                (iii)  neither the faith and credit nor the taxing
            power of the Commonwealth or any political subdivision is
            pledged to the payment of the principal of or the
            interest on the bonds.
        (e)  Sale.--
            (1)  Bonds may be sold at public sale, invited sale or
        private sale for the price or prices the authority
        determines.
            (2)  The authority shall ensure that minority-owned or
        minority-controlled firms have an opportunity to participate
        in a significant way in bonds sale activities.
        (f)  Interim receipts.--Pending the preparation of the
     definitive bonds, interim receipts may be issued to the
     purchaser or purchasers of the bonds and shall contain the terms
     and conditions established by the authority.
        (g)  Negotiable instruments.--Bonds of the authority shall
     have the qualities of negotiable instruments under 13 Pa.C.S.
     (relating to commercial code).
        (h)  Use.--The authority may, as it deems necessary and
     desirable, use the proceeds of bonds for any of the following:
            (1)  Making loans, grants or guarantees.
            (2)  Purchasing loans, mortgages, security interests or
        loan participations.
            (3)  Paying incidental expenses in connection with
        activity under paragraphs (1) and (2), including
        administrative costs of the authority and the department.
            (4)  Paying expenses of authorizing and issuing the
        bonds.
            (5)  Paying principal, redemption or purchase price and
        interest on bonds.
            (6)  Funding reserves.
        (i)  Refunding.--Subject to provisions of this chapter and
     the terms of bonds or other contractual obligations issued in
     accordance with this chapter, the authority may refund any
     outstanding debt of the authority whether the debt represents
     principal or interest, in whole or in part, at any time. For the
     purposes of this subsection, the term "refund" and its
     variations means the issuance and sale of obligations the
     proceeds of which are used or are to be used for the payment or
     redemption of outstanding obligations upon or prior to maturity.

        Cross References.  Section 1521 is referred to in section
     1541 of this title.
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Last modified: November 27, 2007