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Provisions of bonds; trust agreements - 64 Pa. Cons. Stat. § 1525

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     § 1525.  Provisions of bonds; trust agreements.
        A resolution authorizing the issuance of bonds or any trust
     agreement approved in or by a resolution authorizing the
     issuance of bonds may contain provisions which do any of the
     following:
            (1)  Secure the bonds.
            (2)  Covenant against any of the following:
                (i)  Pledging or granting a security interest in all
            or any part of the authority's revenues or all or any
            part of its property to which its right or title exists
            or which may later come into existence.
                (ii)  Permitting or suffering any lien on all or any
            part of its revenues or property.
                (iii)  Extending the time for the payment of bonds or
            interest.
            (3)  Covenant with respect to limiting the authority's
        right to sell, pledge or otherwise dispose of bonds or notes
        of governmental units, loan agreements or other property.
            (4)  Covenant as to any of the following:
                (i)  Additional bonds to be issued.
                (ii)  Limitations on additional bonds.
                (iii)  Terms and conditions of additional bonds.
                (iv)  Custody, application, investment and
            disposition of proceeds of bonds.
                (v)  Incurring of other debts or obligations by the
            authority.
                (vi)  Payment of principal of or interest on bonds.
                (vii)  Sources and methods of payment.
                (viii)  Rank or priority of bonds with respect to
            liens or security interests.
                (ix)  Redemption, purchase and tender of bonds by the
            authority or the bondholders and the privilege of
            exchange of the bonds for other bonds.
                (x)  Use, investment and disposition of the money
            held in special funds, accounts or reserves.
                (xi)  Use of any or all of the authority's real or
            personal property.
                (xii)  Warrant of title to the authority's real or
            personal property.
            (5)  Provide for any of the following:
                (i)  Replacement of lost, stolen, destroyed or
            mutilated bonds.
                (ii)  Maintenance of the authority's real and
            personal property.
                (iii)  Replacement of the authority's real and
            personal property.
                (iv)  Insurance to be carried on the authority's real
            and personal property and the use and disposition of the
            insurance proceeds.
                (v)  Rights, liabilities, powers and duties arising
            upon the breach of any covenant, condition or obligation.
            (6)  Create or authorize the creation of special funds or
        accounts to be held in trust or otherwise for the benefit of
        bondholders or of reserves for debt service or other
        purposes.
            (7)  Provide for obtaining letters of credit, bond
        insurance and other facilities for credit enhancement and
        liquidity.
            (8)  Prescribe any of the following:
                (i)  Procedure, if any, by which the terms of any
            contract with bondholders may be amended or abrogated.
                (ii)  Percentage of the principal amount of bonds the
            holders of which must consent to the amendment or
            abrogation of any contract.
                (iii)  Manner in which the consent under subparagraph
            (ii) may be given.
            (9)  Prescribe any of the following:
                (i)  Events of default.
                (ii)  Terms and conditions upon which any or all of
            the bonds become or may be declared due and payable
            before stated maturity following an event of default.
                (iii)  Terms and conditions upon which the
            declaration of default and its consequence may be waived.
            (10)  Pay the costs or expenses incident to any of the
        following:
                (i)  The enforcement of the bonds.
                (ii)  The provisions of the resolution authorizing
            the issuance of the bonds.
                (iii)  The trust agreement securing the bonds.
                (iv)  Any covenant or agreement of the authority with
            the holders of the bonds or other obligees of the
            authority.
            (11)  Vest in a trustee, within or without this
        Commonwealth, any property, rights, powers and duties in
        trust, including rights with respect to the sale or other
        disposition of notes and bonds of governmental units and
        other instruments and security pledged under a resolution or
        trust agreement for the benefit of bondholders and rights, by
        suit or action, to foreclose a mortgage pledged under a
        resolution or trust indenture for the benefit of bondholders.
            (12)  Limit the rights, powers and duties of a trustee
        and the right of bondholders to appoint a trustee.
            (13)  Establish the terms and conditions upon which a
        trustee or the bondholders may enforce a covenant or rights
        securing or relating to the bonds.
            (14)  Exercise all or any part or combination of the
        powers granted in this chapter.
            (15)  Make covenants other than and in addition to the
        covenants expressly authorized by this chapter.
            (16)  Do or refrain from doing any other act and thing
        necessary, convenient or desirable in order to better secure
        the bonds of the authority or, in the absolute discretion of
        the authority, as will tend to make bonds of the authority
        more marketable. This paragraph applies notwithstanding that
        the covenant, act or thing may not be specifically enumerated
        in this chapter as long as the covenant, act or thing is in
        accordance with the intent of this chapter.

Last modified: November 27, 2007