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Bonds - 74 Pa. Cons. Stat. § 1763

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     § 1763.  Bonds.
        (a)  General rule.--
            (1)  The bonds of the authority shall be authorized by
        resolution of the board thereof and shall be of such series,
        bear such date or dates, bear or accrue interest at such rate
        or rates, fixed or variable, as shall be determined by the
        board as necessary to issue and sell the authorized bonds, be
        in such denominations, be in such form, either coupon or
        fully registered without coupons, be in certificated or book-
        entry-only form, carry such registration and exchangeability
        and interchangeability privileges, be payable in such medium
        of payment and at such place or places, be subject to such
        terms of redemption and be entitled to such priorities of
        payment in the revenues or receipts of the authority as the
        resolution or trust indenture adopted or approved by the
        authority may provide.
            (2)  The bonds shall be signed by or shall bear the
        facsimile signatures of such officers as the board shall
        determine, and coupon bonds shall have attached thereto
        interest coupons bearing the facsimile signature of the
        treasurer of the authority, and all bonds shall be
        authenticated by an authenticating agent, fiscal agent or
        trustee, all as may be prescribed in the resolution or trust
        indenture.
            (3)  Any such bonds may be issued and delivered
        notwithstanding that one or more of the officers signing
        bonds or the treasurer whose facsimile signature shall be
        upon the coupon, or any thereof, shall have ceased to be an
        officer or officers at the time when the bonds shall actually
        be delivered.
            (4)  The proceeds of an issue of bonds may be used to pay
        the costs of a project; subject to the limitations of
        subsection (b), to finance any cash flow deficit of the
        authority; to reimburse any costs of a project initially paid
        by the authority or any person; to fund any required
        reserves; to capitalize interest; or to pay costs of
        issuance, including, but not limited to, costs of obtaining
        credit enhancement for the bonds.
        (b)  Maturity.--Bonds issued to finance the costs of a
     project shall mature at such time or times not exceeding 40
     years from their respective dates of original issue as the
     authority shall by resolution determine. Bonds issued in
     anticipation of income of the authority shall mature within one
     fiscal year after the fiscal year of the date of issuance
     thereof, except for bonds issued in anticipation of grants with
     respect to the cost of a project, which bonds shall mature no
     later than six months beyond the time of anticipated receipt of
     the final payment of the grant.
        (c)  Sale.--Bonds may be sold at public sale or invited sale
     for such price or prices and at such rate or rates of interest
     as the authority shall determine. Bonds may be sold at private
     sale by negotiation at such price or prices and at such rate or
     rates of interest as the authority shall determine, but only if
     the authority makes a written public explanation of the
     circumstances and justification for the private sale by
     negotiation. 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.
        (d)  Negotiable instruments.--Bonds of an authority shall
     have the qualities of negotiable instruments under Title 13
     (relating to commercial code).
        (e)  Refunding.--
            (1)  Subject to the provisions of the outstanding bonds,
        notes or other obligations issued under this chapter or prior
        acts and subject to the provisions of this chapter, the
        authority shall have the right and power to refund any
        outstanding debt, whether the debt represents principal or
        interest, in whole or in part, at any time.
            (2)  As used in this subsection, "refund" and its
        variations shall mean 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. Refunding bonds shall mature at such time
        or times not exceeding 40 years from their dates of original
        issuance as the authority shall determine by resolution.
        (f)  Credit of Commonwealth and political subdivisions not
     pledged.--Under no circumstances shall any bonds issued by the
     authority or any other obligation of the authority be or become
     an indebtedness or liability of the Commonwealth or of any
     government agency, provided that any government agency may
     guarantee bonds of an authority to the extent and for the
     purposes for which the government agency may make loans or
     grants to an authority.
        (g)  Nonliability.--Neither the board members, any employees
     of the authority nor any person executing the bonds shall be
     liable personally on any bonds by reason of the issuance
     thereof. Bonds of an authority shall contain a statement of the
     limitation set forth in this subsection.
        (h)  Bonds deemed valid.--Any bond reciting in substance that
     it has been issued by the authority to accomplish the public
     purposes of this subchapter shall be conclusively deemed in any
     suit, action or proceeding involving the validity or
     enforceability of the bonds or security therefor to have been
     issued for such purpose.
        (i)  Notice and challenges.--
            (1)  The authority may cause a copy of any resolution
        authorizing the issuance of bonds adopted by it to be filed
        for public inspection in its office and in the office of the
        clerk of the governing body of each county and the governing
        body of the city of the first class within its service area
        and may thereupon cause to be published in a newspaper
        published or circulating in its service area a notice stating
        the fact and date of the adoption, the places where the
        resolution has been so filed for public inspection, the date
        of publication of the notice and that any action or
        proceeding of any kind or nature in any court questioning the
        validity or proper authorization of bonds provided for by the
        resolution, or the validity of any covenants, agreements or
        contract provided for by such resolution, shall be commenced
        within 20 days after the publication of the notice.
            (2)  If any notice shall at any time be published and if
        no action or proceeding questioning the validity or proper
        authorization of bonds provided for by the resolution or the
        validity of any covenants, agreements or contract provided
        for by such resolution shall be commenced within 20 days
        after the publication of the notice, then all residents,
        taxpayers and owners of property in the service area and
        users of the transportation system of the authority and all
        other persons whatsoever shall be forever barred and
        foreclosed from instituting or commencing any action or
        proceeding in any court or pleading any defense to any action
        or proceedings questioning the validity or proper
        authorization of such bonds or the validity of any such
        covenants, agreements or contracts, and said bonds,
        covenants, agreements and contracts shall be conclusively
        deemed to be valid and binding obligations in accordance with
        their terms and tenor.
            (3)  After issuance of bonds, all bonds shall be
        conclusively presumed to be fully authorized and issued by
        all the laws of this Commonwealth, and any person shall be
        estopped from questioning their sale, execution or delivery
        by the authority.

Last modified: November 27, 2007