(a) Issuance of bonds.--Notwithstanding any other provision of law, any transit entity may issue bonds to refund obligations issued prior to June 30, 2007, and may pay and secure such refunding bonds with all or part of the sources of payment and security for the obligations that are being refunded, including, but not limited to, money from the fund. Refunding bonds issued pursuant to this section may include bonds issued to fund costs of the refunding, including, but not limited to, costs of issuance, funding one or more debt service reserve or similar funds and making termination payments on interest rate exchange agreements related to the obligations being refunded. The term of any refunding bonds issued under this section may not exceed the term of the obligations being refunded and the total debt service payable on refunding bonds issued under this section may not exceed the total debt service payable on the obligations being refunded by the refunding.

(b) Commonwealth pledge.--The Commonwealth does hereby pledge to and agree with any person, firm or corporation, government agency, whether in this Commonwealth or elsewhere, or Federal agency subscribing to or acquiring bonds issued under this section, that the Commonwealth will not limit or alter the rights hereby vested in the transit entity in any manner inconsistent with the obligations of the transit entity to the obligees of the transit entity until all the refunding bonds issued by the transit entity under this section, together with the interest thereon, are fully paid or provided for.

(c) Definitions.--As used in this section, the following words and phrases shall have the meanings given to them in this subsection unless the context clearly indicates otherwise:

“Bonds.” Notes, bonds, refunding notes and refunding bonds, interim certificates, debentures and other evidences of indebtedness or obligations which a transit entity is authorized to issue.

“Fund.” The Public Transportation Assistance Fund established under Article XXIII of the act of March 4, 1971 (P.L. 6, No. 2),¹ known as the Tax Reform Code of 1971.

“Obligations.” Any bonds, notes, bond anticipation notes, refunding notes and refunding bonds, interim certificates, debentures and other evidences of indebtedness or obligations of a transit entity for which revenues from the fund were pledged prior to June 30, 2007.

“Obligees of the transit entity.” Any holder or owner of any refunding bond of a transit entity issued under this section or any trustee or other fiduciary for any such holder or any provider of a letter of credit, policy of municipal bond insurance or other credit enhancement or liquidity facility for refunding bonds issued under this section.

“Transit entity.” Any class of transit entity as defined in former 74 Pa.C.S. § 1301 (relating to definitions).