Tax Increment Financing Guarantee Program - 64 Pa. Cons. Stat. § 1556

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     § 1556.  Tax Increment Financing Guarantee Program.
        (a)  Establishment.--There is established a program to be
     known as the Tax Increment Financing Guarantee Program. The
     program shall provide guarantees for tax increment financing
     bonds or other indebtedness issued in accordance with the act of
     July 11, 1990 (P.L.465, No.113), known as the Tax Increment
     Financing Act.
        (b)  Applications for guarantees.--An issuing authority may
     submit an application to the authority requesting a guarantee of
     bonds or other indebtedness to be issued pursuant to the Tax
     Increment Financing Act. The application must be on the form
     required by the board and must include or demonstrate all of the
     following:
            (1)  The issuing authority's name and address.
            (2)  The location of the project.
            (3)  A description of the project which includes a
        statement that the project is for the:
                (i)  redevelopment, reuse or revitalization of
            previously developed land, including previously mined
            areas; or
                (ii)  development of undeveloped land which may be
            the subject of future development pursuant to any
            existing comprehensive municipal plan and is zoned for
            that development at the time of application.
            (4)  That the requirements of the Tax Increment Financing
        Act will be complied with prior to the issuance of bonds or
        other indebtedness by the issuing authority.
            (5)  That the incremental tax revenues to be realized
        from the project will be sufficient to offset the amount of
        debt service to be paid on the bonds or other indebtedness to
        be issued by the issuing authority.
            (6)  The amount of the guarantee sought.
            (7)  Any other information required by the board.
        (c)  Review of guarantee applications.--The board shall
     review the application to determine all of the following:
            (1)  That the project is consistent with any existing
        comprehensive county plan where the project is located.
            (2)  That the project is for the:
                (i)  redevelopment, reuse or revitalization of
            previously developed land, including previously mined
            areas; or
                (ii)  development of undeveloped land which may be
            the subject of future development pursuant to any
            existing comprehensive municipal plan and is zoned for
            that development at the time of application.
            (3)  That the incremental tax revenues to be realized as
        a result of the project are sufficient to repay the bonds or
        other indebtedness issued.
            (4)  That the project and the proposed bond issue or
        issuance of debt complies with the requirements of the Tax
        Increment Financing Act.
            (5)  That the issuing authority complied with all other
        criteria established by the board.
        (d)  Approval of guarantee applications.--Upon being
     satisfied that all requirements have been met, the board may
     approve the application, and, if approved, the authority shall
     execute a guarantee agreement in favor of the issuing authority.
     In addition to any other terms and conditions required by the
     board, the guarantee agreement shall provide for the following:
            (1)  The procedure for the submission of a claim for
        payment under the guarantee agreement. If the authority makes
        payment on a claim for payment submitted under the guarantee
        agreement, the authority may assume all rights and privileges
        previously belonging to the bondholders or the holders of the
        debt and may renegotiate the terms of repayment of the debt
        assumed by the authority under terms as the authority deems
        appropriate.
            (2)  Annual reporting by the issuing authority on the
        status of the project, including the amount of the annual
        debt service and the annual value of the incremental tax
        revenues.
        (e)  Limitations.--No guarantee approved by the board may
     exceed $5,000,000.

        Cross References.  Section 1556 is referred to in section
     1543 of this title.

Last modified: November 27, 2007